Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 01, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Union Bankshares Corp | |
Entity Central Index Key | 883,948 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 43,533,044 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 128,896 | $ 111,323 |
Interest-bearing deposits in other banks | 87,887 | 29,670 |
Federal funds sold | 251 | 1,667 |
Total cash and cash equivalents | 217,034 | 142,660 |
Securities available for sale, at fair value | 949,663 | 903,292 |
Securities held to maturity, at carrying value | 202,917 | 205,374 |
Restricted stock, at cost | 62,206 | 51,828 |
Loans held for sale | 38,114 | 36,030 |
Loans held for investment, net of deferred fees and costs | 5,941,098 | 5,671,462 |
Less allowance for loan losses | 35,074 | 34,047 |
Net loans held for investment | 5,906,024 | 5,637,415 |
Premises and equipment, net | 124,032 | 126,028 |
Other real estate owned, net of valuation allowance | 13,381 | 15,299 |
Core deposit intangibles, net | 19,685 | 23,310 |
Goodwill | 297,659 | 293,522 |
Bank owned life insurance | 176,413 | 173,687 |
Other assets | 93,433 | 84,846 |
Total assets | 8,100,561 | 7,693,291 |
LIABILITIES | ||
Noninterest-bearing demand deposits | 1,392,734 | 1,372,937 |
Interest-bearing deposits | 4,703,092 | 4,590,999 |
Total deposits | 6,095,826 | 5,963,936 |
Securities sold under agreements to repurchase | 121,262 | 84,977 |
Other short-term borrowings | 557,000 | 304,000 |
Long-term borrowings | 274,547 | 291,198 |
Other liabilities | 62,725 | 53,813 |
Total liabilities | 7,111,360 | 6,697,924 |
Commitments and contingencies (Note 6) | ||
STOCKHOLDERS' EQUITY | ||
Common stock, $1.33 par value, shares authorized 100,000,000; issued and outstanding, 43,619,867 shares and 44,785,674 shares, respectively. | 57,537 | 59,159 |
Additional paid-in capital | 605,018 | 631,822 |
Retained earnings | 317,747 | 298,134 |
Accumulated other comprehensive income | 8,899 | 6,252 |
Total stockholders' equity | 989,201 | 995,367 |
Total liabilities and stockholders' equity | $ 8,100,561 | $ 7,693,291 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 1.33 | $ 1.33 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 43,619,867 | 44,785,674 |
Common stock, shares outstanding | 43,619,867 | 44,785,674 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 64,747 | $ 62,604 | $ 127,694 | $ 123,057 |
Interest on deposits in other banks | 65 | 24 | 112 | 41 |
Interest and dividends on securities: | ||||
Taxable | 4,510 | 3,860 | 8,826 | 7,667 |
Nontaxable | 3,459 | 3,366 | 6,898 | 6,690 |
Total interest and dividend income | 72,781 | 69,854 | 143,530 | 137,455 |
Interest expense: | ||||
Interest on deposits | 4,197 | 3,680 | 8,393 | 7,000 |
Interest on federal funds purchased | 2 | 4 | 3 | 5 |
Interest on short-term borrowings | 708 | 255 | 1,329 | 505 |
Interest on long-term borrowings | 2,098 | 2,099 | 4,298 | 4,160 |
Total interest expense | 7,005 | 6,038 | 14,023 | 11,670 |
Net interest income | 65,776 | 63,816 | 129,507 | 125,785 |
Provision for credit losses | 2,300 | 3,749 | 4,904 | 5,499 |
Net interest income after provision for credit losses | 63,476 | 60,067 | 124,603 | 120,286 |
Noninterest income: | ||||
Service charges on deposit accounts | 4,754 | 4,622 | 9,488 | 8,835 |
Other service charges and fees | 4,418 | 4,051 | 8,574 | 7,634 |
Fiduciary and asset management fees | 2,333 | 2,312 | 4,471 | 4,531 |
Mortgage banking income, net | 2,972 | 2,574 | 5,117 | 4,952 |
Gains on securities transactions, net | 3 | 404 | 146 | 597 |
Bank owned life insurance income | 1,361 | 1,134 | 2,734 | 2,269 |
Other operating income | 2,152 | 1,115 | 3,377 | 2,448 |
Total noninterest income | 17,993 | 16,212 | 33,907 | 31,266 |
Noninterest expenses: | ||||
Salaries and benefits | 28,519 | 25,561 | 56,567 | 53,052 |
Occupancy expenses | 4,809 | 5,173 | 9,785 | 10,305 |
Furniture and equipment expenses | 2,595 | 2,989 | 5,232 | 5,803 |
Printing, postage, and supplies | 1,280 | 1,408 | 2,419 | 2,779 |
Communications expense | 927 | 1,143 | 2,016 | 2,322 |
Technology and data processing | 3,608 | 3,216 | 7,422 | 6,471 |
Professional services | 2,548 | 1,669 | 4,537 | 3,017 |
Marketing and advertising expense | 1,924 | 2,372 | 3,863 | 4,060 |
FDIC assessment premiums and other insurance | 1,379 | 1,280 | 2,741 | 2,679 |
Other taxes | 1,607 | 1,554 | 3,225 | 3,105 |
Loan-related expenses | 855 | 687 | 1,454 | 1,371 |
OREO and credit-related expenses | 894 | 1,965 | 1,463 | 3,152 |
Amortization of intangible assets | 1,745 | 2,138 | 3,625 | 4,361 |
Training and other personnel costs | 905 | 912 | 1,649 | 1,633 |
Other expenses | 1,656 | 3,174 | 3,525 | 4,971 |
Total noninterest expenses | 55,251 | 55,241 | 109,523 | 109,081 |
Income (loss) before income taxes | 26,218 | 21,038 | 48,987 | 42,471 |
Income tax expense | 6,881 | 5,690 | 12,689 | 11,422 |
Net income (loss) | $ 19,337 | $ 15,348 | $ 36,298 | $ 31,049 |
Basic earnings per common share (in usd per share) | $ 0.44 | $ 0.34 | $ 0.82 | $ 0.69 |
Diluted earnings per common share (in usd per share) | 0.44 | 0.34 | 0.82 | 0.69 |
Dividends declared per common share (in usd per share) | $ 0.19 | $ 0.17 | $ 0.38 | $ 0.32 |
Basic weighted average number of common shares outstanding | 43,746,583 | 45,128,698 | 43,998,929 | 45,117,396 |
Diluted weighted average number of common shares outstanding | 43,824,183 | 45,209,814 | 44,075,706 | 45,198,727 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 19,337 | $ 15,348 | $ 36,298 | $ 31,049 |
Cash flow hedges: | ||||
Change in fair value of cash flow hedges | (1,007) | 1,809 | (3,688) | 319 |
Reclassification adjustment for losses (gains) included in net income (net of tax, $74 and $22 for the three months and $150 and $169 for the six months ended June 30, 2016 and 2015, respectively) | 138 | 41 | 279 | 313 |
AFS securities: | ||||
Unrealized holding gains (losses) arising during period (net of tax, $1,991 and $3,686 for the three months and $3,624 and $1,649 for the six months ended June 30, 2016 and 2015, respectively) | 3,698 | (6,845) | 6,730 | (3,062) |
Reclassification adjustment for losses (gains) included in net income (net of tax, $1 and $142 for the three months and $51 and $209 for the six months ended June 30, 2016 and 2015, respectively) | (2) | (263) | (95) | (388) |
HTM securities: | ||||
Accretion of unrealized gain for AFS securities transferred to HTM (net of tax, $155 and $112 for the three months and $312 and $112 for the six months ended June 30, 2016 and 2015, respectively) | (287) | (208) | (579) | (208) |
Net current period other comprehensive income (loss) | 2,540 | (5,466) | 2,647 | (3,026) |
Comprehensive income | $ 21,877 | $ 9,882 | $ 38,945 | $ 28,023 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax expense (benefit) related to reclassification adjustment for losses included in net income | $ (74) | $ (22) | $ (150) | $ (169) |
Tax expense (benefit) related to unrealized holding (losses) gains arising during period | 1,991 | (3,686) | 3,624 | (1,649) |
Tax expense (benefit) related to (gains) losses on the sale of securities | 1 | 142 | 51 | 209 |
Tax expense (benefit) related to (gains) losses for AFS securities transferred to HTM | $ (155) | $ (112) | $ (312) | $ (112) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Dec. 31, 2014 | $ 977,169 | $ 59,795 | $ 643,443 | $ 261,676 | $ 12,255 |
Net income | 31,049 | 31,049 | |||
Other comprehensive income, (net of taxes) | (3,026) | (3,026) | |||
Issuance of common stock in regard to acquisition | 0 | ||||
Dividends on common stock | (13,727) | (13,727) | |||
Stock purchased under stock repurchase program | (4,130) | (240) | (3,890) | ||
Issuance of common stock under Dividend Reinvestment Plan | 0 | 45 | 656 | (701) | |
Issuance of common stock under Equity Compensation Plans | 420 | 34 | 386 | ||
Issuance of common stock for services rendered | 200 | 12 | 188 | ||
Vesting of restricted stock, including tax effects, under Equity Compensation Plans | (224) | 26 | (250) | ||
Stock-based compensation expense | 403 | 403 | |||
Ending balance at Jun. 30, 2015 | 988,134 | 59,672 | 640,936 | 278,297 | 9,229 |
Beginning balance at Mar. 31, 2015 | 14,695 | ||||
Net income | 15,348 | ||||
Other comprehensive income, (net of taxes) | (5,466) | ||||
Ending balance at Jun. 30, 2015 | 988,134 | 59,672 | 640,936 | 278,297 | 9,229 |
Beginning balance at Dec. 31, 2015 | 995,367 | 59,159 | 631,822 | 298,134 | 6,252 |
Net income | 36,298 | 36,298 | |||
Other comprehensive income, (net of taxes) | 2,647 | 2,647 | |||
Issuance of common stock in regard to acquisition | 453 | 23 | 430 | ||
Dividends on common stock | (16,685) | (16,685) | |||
Stock purchased under stock repurchase program | (30,690) | (1,747) | (28,943) | ||
Issuance of common stock under Equity Compensation Plans | 482 | 46 | 436 | ||
Issuance of common stock for services rendered | 240 | 13 | 227 | ||
Vesting of restricted stock, including tax effects, under Equity Compensation Plans | (398) | 43 | (441) | ||
Stock-based compensation expense | 1,487 | 1,487 | |||
Ending balance at Jun. 30, 2016 | 989,201 | 57,537 | 605,018 | 317,747 | 8,899 |
Beginning balance at Mar. 31, 2016 | 6,359 | ||||
Net income | 19,337 | ||||
Other comprehensive income, (net of taxes) | 2,540 | ||||
Ending balance at Jun. 30, 2016 | $ 989,201 | $ 57,537 | $ 605,018 | $ 317,747 | $ 8,899 |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Other comprehensive income (loss), tax | $ 3,411 | $ 1,801 |
Issuance of common stock, acquisition, shares | 17,232 | |
Dividends on common stock, per share (in usd per share) | $ 0.38 | $ 0.32 |
Stock purchased under stock repurchase plan, shares | 1,312,556 | 181,356 |
Issuance of common stock under Dividend Reinvestment Plans, shares | 33,710 | |
Issuance of common stock under Equity Compensation Plan , shares | 34,227 | 25,873 |
Issuance of common stock for services rendered, shares | 9,552 | 9,200 |
Vesting of restricted stock under Equity Compensation Plans, shares | 31,993 | 20,049 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities: | ||
Net income | $ 36,298 | $ 31,049 |
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities: | ||
Depreciation of premises and equipment | 4,983 | 5,374 |
Writedown of OREO | 400 | 1,300 |
Amortization, net | 5,915 | 6,946 |
Amortization (accretion) related to acquisition, net | 1,077 | 705 |
Provision for credit losses | 4,904 | 5,499 |
Losses (gains) on securities transactions, net | (146) | (597) |
Bank owned life insurance income | (2,734) | (2,269) |
Decrease (increase) in loans held for sale, net | (2,084) | 3,069 |
Losses (gains) on sales of other real estate owned, net | (1) | 100 |
Losses (gains) on sales of premises, net | 72 | 74 |
Stock-based compensation expenses | 1,487 | 403 |
Issuance of common stock for services | 240 | 200 |
Net decrease (increase) in other assets | (8,549) | (530) |
Net increase (decrease) in other liabilities | 1,796 | (11,213) |
Net cash and cash equivalents provided by (used in) operating activities | 43,658 | 40,110 |
Investing activities: | ||
Purchases of securities available for sale | (122,690) | (122,049) |
Proceeds from sales of securities available for sale | 15,424 | 58,157 |
Proceeds from maturities, calls and paydowns of securities available for sale | 56,414 | 70,086 |
Proceeds from maturities, calls and paydowns of securities held to maturity | 610 | 0 |
Net decrease (increase) in loans held for investment | (271,689) | (168,449) |
Net decrease (increase) in premises and equipment | (3,059) | (3,284) |
Proceeds from sales of other real estate owned | 2,138 | 5,609 |
Improvements to other real estate owned | 0 | (299) |
Cash paid for equity-method investments | 0 | (355) |
Cash paid in acquisition | (4,077) | 0 |
Cash acquired in acquisitions | 207 | 0 |
Net cash and cash equivalents provided by (used in) investing activities | (326,722) | (160,584) |
Financing activities: | ||
Net increase (decrease) in noninterest-bearing deposits | 19,797 | 90,298 |
Net increase (decrease) in interest-bearing deposits | 112,093 | 57,096 |
Net increase (decrease) in short-term borrowings | 289,285 | (6,713) |
Net increase (decrease) in long-term borrowings | (16,446) | 1,027 |
Cash dividends paid - common stock | (16,685) | (13,727) |
Repurchase of common stock | (30,690) | (4,130) |
Issuance of common stock | 482 | 420 |
Vesting of restricted stock, including tax effects | (398) | (224) |
Net cash and cash equivalents provided by (used in) financing activities | 357,438 | 124,047 |
Increase (decrease) in cash and cash equivalents | 74,374 | 3,573 |
Cash and cash equivalents at beginning of the period | 142,660 | 133,260 |
Cash and cash equivalents at end of the period | 217,034 | 136,833 |
Cash payments for: | ||
Interest | 14,212 | 13,784 |
Income taxes | 15,800 | 12,400 |
Supplemental schedule of noncash investing and financing activities | ||
Unrealized (losses) gains on securities available for sale | 10,208 | (5,308) |
Transfer from securities available for sale to securities held to maturity | 0 | 201,822 |
Changes in fair value of interest rate swap loss | (3,409) | 632 |
Transfers between loans and other real estate owned | 619 | 412 |
Transfers from bank premises to other real estate owned | 0 | 402 |
Issuance of common stock in exchange for net assets in acquisition | $ 453 | $ 0 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | ACCOUNTING POLICIES The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Significant inter-company accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and follow general practice within the banking industry. Accordingly, the unaudited consolidated financial statements do not include all the information and footnotes required by U.S. GAAP for complete financial statements. However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of the interim periods presented have been made. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2015 Annual Report on Form 10-K. Certain prior period amounts have been reclassified to conform to current period presentation. Business Combinations On May 31, 2016, the Bank completed its acquisition of ODCM, a Charlottesville, Virginia based registered investment advisor with nearly $300.0 million in assets under management. The acquisition date fair value of consideration transferred totaled $9.1 million , which consisted of $4.1 million cash, $0.5 million stock, and the remainder being contingent on achieving certain performance metrics. The contingent consideration is carried at fair value and is reported as a component of “Other Liabilities” in the Consolidated Balance Sheet. The fair value of this liability will be assessed at each reporting period. In connection with the transaction, the Company recorded $4.1 million in goodwill and $3.8 million of amortizable assets which primarily relate to the value of customer relationships. The Company currently estimates that these other intangibles assets will be amortized over 10 years using a straight-line method. The transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the acquisition date. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition. Loans The Company originates commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by commercial and residential real estate loans (including acquisition and development loans and residential construction loans) throughout its market area. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in those markets, as well as other factors. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for any charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. As of January 1, 2016, the Company enhanced the loan portfolio segmentation to better align with how the Company manages credit risk and to better align with industry practice. Below is a summary of the new loan segmentation. Construction and Land Development – construction loans generally made to commercial and residential builders for specific construction projects. The successful repayment of these types of loans is generally dependent upon (a) a commitment for permanent financing from the Company, or (b) from the sale of the constructed property. These loans carry more risk than both types of commercial real estate term loans due to the dynamics of construction projects, changes in interest rates, the long-term financing market, and state and local government regulations. As in commercial real estate term lending, the Company manages risk by using specific underwriting policies and procedures for these types of loans and by avoiding excessive concentrations to any one business or industry. Also, included in this category are loans generally made to residential home builders to support their lot and home inventory needs. Repayment relies upon the successful performance of the underlying residential real estate project. This type of lending carries a higher level of risk as compared to other commercial lending. This class of lending manages risks related to residential real estate market conditions, a functioning first and secondary market in which to sell residential properties, and the borrower’s ability to manage inventory and run projects. The Company manages this risk by lending to experienced builders and developers, by using specific underwriting policies and procedures for these types of loans, and by avoiding excessive concentrations with any particular customer or geographic region. Commercial Real Estate – Owner Occupied - term loans made to support owner occupied real estate properties that rely upon the successful operation of the business occupying the property for repayment. General market conditions and economic activity may affect these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by avoiding concentrations to any one business or industry. Commercial Real Estate – Non-Owner Occupied - term loans typically made to borrowers to support income producing properties that rely upon the successful operation of the property for repayment. General market conditions and economic activity may impact the performance of these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by diversifying the lending to various lines of businesses, such as retail, office, office warehouse, and hotel as well as avoiding concentrations to any one business or industry. Residential 1-4 Family – loans generally made to both commercial and residential borrowers. Mortgage loan portfolios carry risks associated with the creditworthiness of the borrower or the tenant and changes in loan-to-value ratios. The Company manages these risks through policies and procedures such as limiting loan-to-value ratios at origination, experienced underwriting, requiring standards for appraisers, and not making subprime loans. Multifamily Real Estate – loans made to real estate investors to support permanent financing for multifamily residential income producing properties that rely on the successful operation of the property for repayment. This management mainly involves property maintenance and collection of rents due from tenants. This type of lending carries a lower level of risk as compared to other commercial lending. In addition, underwriting requirements for multifamily properties are stricter than for other non-owner-occupied property types. The Company manages this risk by avoiding concentrations with any particular customer. Commercial and Industrial – loans generally made to support the Company’s borrowers’ need for equipment/vehicle purchases and other short-term or seasonal cash flow needs. Repayment relies upon the successful operation of the business. This type of lending carries a lower level of commercial credit risk as compared to other commercial lending. The Company manages this risk by using general underwriting policies and procedures for these types of loans and by avoiding concentrations to any one business or industry. HELOC – the consumer HELOC portfolio carries risks associated with the creditworthiness of the borrower and changes in loan-to-value ratios. The Company manages these risks through policies and procedures such as limiting loan-to-value ratios at origination, experienced underwriting, requiring standards for appraisers, and not making subprime loans. Auto – the consumer indirect auto lending portfolio generally carries certain risks associated with the values of the collateral that management must mitigate. The Company focuses its indirect auto lending on one to two year old used vehicles where substantial depreciation has already occurred thereby minimizing the risk of significant loss of collateral values in the future. This type of lending places reliance on computer-based loan approval systems to supplement other underwriting standards. Consumer and all other - portfolios carry risks associated with the creditworthiness of the borrower and changes in the economic environment. The Company manages these risks through policies and procedures such as experienced underwriting, maximum debt to income ratios, and minimum borrower credit scores. Also included in this category are loans that generally support small business lines of credit and agricultural lending neither of which are a material source of business for the Company. Affordable Housing Entities The Company invests in private investment funds that make equity investments in multifamily affordable housing properties that provide affordable housing tax credits for these investments. The activities of these entities are financed with a combination of invested equity capital and debt. For the three and six months ended June 30, 2016 , the Company recognized amortization of $130,000 and $260,000 , respectively, and tax credits of $ 210,000 and $420,000 , respectively, associated with these investments within “Income tax expense” on the Company’s Consolidated Statements of Income. For the three and six months ended June 30, 2015 , the Company recognized amortization of $104,000 and $279,000 , respectively, and tax credits of $ 170,000 and $427,000 , respectively. The carrying value of the Company’s investments in these qualified affordable housing projects was $8.1 million and $8.5 million as of June 30, 2016 and December 31, 2015 , respectively. The Company recorded a liability of $5.3 million for the related unfunded commitments as of June 30, 2016 , which are expected to be paid from 2016 to 2019. Adoption of New Accounting Standards In February 2015, the FASB issued revised guidance to simplify the consolidation assessment required to evaluate whether organizations should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures. The guidance also removed the indefinite deferral of specialized guidance for certain investment funds. The Company adopted ASU No. 2015-02, “ Amendments to the Consolidation Analysis ” during the first quarter of 2016. The adoption of ASU 2015-02 did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities .” This ASU requires an entity to: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in OCI the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. The ASU provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes. The ASU also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is only permitted for the provision related to instrument-specific credit risk. The Company is currently assessing the impact ASU 2016-01 will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842). ” This ASU requires lessees to put most leases on their balance sheets but recognize expenses in the income statement in a manner similar to today’s accounting. The guidance also eliminates the real estate-specific provisions and changes the guidance on sale-leaseback transactions, initial direct costs and lease executory costs for all entities. For lessors, the standard modifies the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently assessing the impact ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-05, “ Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships .” This ASU clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument in an existing hedging relationship would not, in and of itself, be considered a termination of the derivative instrument or a change in a critical term of the hedging relationship. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-05 to have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-06, “ Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments .” This ASU clarifies that in assessing whether an embedded contingent put or call option is clearly and closely related to the debt host, an entity is required to perform only the four-step decision sequence in ASC 815-15-25-42 (as amended by the ASU). The entity does not have to separately assess whether the event that triggers its ability to exercise the contingent option is itself indexed only to interest rates or credit risk. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-06 to have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, “ Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting .” This ASU simplifies the equity method of accounting by eliminating the requirement to retrospectively apply the equity method to an investment that subsequently qualifies for such accounting as a result of an increase in the level of ownership interest or degree of influence. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively and early adoption is permitted. The Company does not expect the adoption of ASU 2016-07 to have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, “ Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) .” This ASU amends the principal-versus-agent implementation guidance and illustrations in the FASB’s new revenue standard (ASU 2014-09) and clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. The ASU has the same effective date as the new revenue standard (as amended by the one-year deferral and the early adoption provisions in ASU 2015-14 delaying the effective date to fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017). In addition, entities are required to adopt the ASU by using the same transition method they used to adopt the new revenue standard. The Company is currently assessing the impact ASU 2016-08 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “ Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting .” This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted; however, if the Company elects to early adopt, then all amendments must be adopted in the same period. The Company is currently assessing the impact ASU 2016-09 will have on its consolidated financial statements. In April 2016, the FASB issued ASU No. 2016-10, “ Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing .” This ASU amends certain aspects of the FASB’s new revenue standard, specifically the standard’s guidance on identifying performance obligations and the implementation guidance on licensing. The amendments in this update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers , which is not yet effective. The ASU has the same effective date as the new revenue standard (as amended by the one-year deferral and the early adoption provisions in ASU 2015-14). The Company is currently assessing the impact ASU 2016-10 will have on its consolidated financial statements. In May 2016, the FASB issued ASU No. 2016-12, “ Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. ” This ASU amends certain aspects of the FASB's new revenue standard to reduce the potential for diversity in practice at the initial application of Topic 606 by entities with transactions that fall into the scope of this guidance, as well as reducing the cost and complexity of applying Topic 606 at the transition date and on a continual basis. These amendments affect ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , that is not yet effective. The Company is currently assessing the impact ASU 2016-12 will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ” This ASU updates the existing guidance to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and required consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This amendment is effective for fiscal years beginning after December 15, 2019. The Company is currently assessing the impact ASU 2016-13 will have on its consolidated financial statements. |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES Available for Sale The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of June 30, 2016 and December 31, 2015 are summarized as follows (dollars in thousands): Amortized Gross Unrealized Estimated Cost Gains (Losses) Fair Value June 30, 2016 Obligations of states and political subdivisions $ 258,968 $ 13,848 $ (30 ) $ 272,786 Corporate bonds 109,757 506 (1,684 ) 108,579 Mortgage-backed securities 545,428 10,165 (629 ) 554,964 Other securities 13,285 49 — 13,334 Total available for sale securities $ 927,438 $ 24,568 $ (2,343 ) $ 949,663 December 31, 2015 Obligations of states and political subdivisions $ 257,740 $ 10,479 $ (140 ) $ 268,079 Corporate bonds 77,628 55 (1,704 ) 75,979 Mortgage-backed securities 544,823 6,127 (2,779 ) 548,171 Other securities 11,085 — (22 ) 11,063 Total available for sale securities $ 891,276 $ 16,661 $ (4,645 ) $ 903,292 The following table shows the gross unrealized losses and fair value (in thousands) of the Company’s available for sale investments with unrealized losses that are not deemed to be other-than-temporarily impaired as of June 30, 2016 and December 31, 2015 . These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. Less than 12 months More than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2016 Obligations of states and political subdivisions $ — $ — $ 631 $ (30 ) $ 631 $ (30 ) Mortgage-backed securities 67,843 (266 ) 42,840 (363 ) 110,683 (629 ) Corporate bonds and other securities 11,242 (331 ) 36,250 (1,353 ) 47,492 (1,684 ) Total available for sale $ 79,085 $ (597 ) $ 79,721 $ (1,746 ) $ 158,806 $ (2,343 ) December 31, 2015 Obligations of states and political subdivisions $ 8,114 $ (70 ) $ 4,950 $ (70 ) $ 13,064 $ (140 ) Mortgage-backed securities 287,113 (2,442 ) 21,660 (337 ) 308,773 (2,779 ) Corporate bonds and other securities 36,157 (751 ) 19,558 (975 ) 55,715 (1,726 ) Total available for sale $ 331,384 $ (3,263 ) $ 46,168 $ (1,382 ) $ 377,552 $ (4,645 ) As of June 30, 2016 , there were $79.7 million , or 21 issues, of individual available for sale securities that had been in a continuous loss position for more than 12 months. These securities had an unrealized loss of $1.7 million and consisted of municipal obligations, mortgage-backed securities, and corporate bonds. As of December 31, 2015 , there were $46.2 million , or 20 issues, of individual securities that had been in a continuous loss position for more than 12 months. These securities had an unrealized loss of $1.4 million and consisted of municipal obligations, mortgage-backed securities, corporate bonds, and other securities. The Company has determined that these securities are temporarily impaired as of June 30, 2016 and December 31, 2015 for the reasons set out below: Mortgage-backed securities. This category’s unrealized losses are primarily the result of interest rate fluctuations. Because the decline in market value is attributable to changes in interest rates and not credit quality, the Company does not intend to sell the investments, and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired. Also, the majority of the Company’s mortgage-backed securities are agency-backed securities, which have a government guarantee. Obligations of state and political subdivisions. This category’s unrealized losses are primarily the result of interest rate fluctuations and also a certain few ratings downgrades brought about by the impact of the economic downturn on states and political subdivisions. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment. Because the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired. Corporate bonds. The Company’s unrealized losses in corporate debt securities are related to both interest rate fluctuations and ratings downgrades for a limited number of securities. The majority of the securities remain investment grade and the Company’s analysis did not indicate the existence of a credit loss. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment. Because the Company does not intend to sell any of the investments before recovery of its amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired. The following table presents the amortized cost and estimated fair value of available for sale securities as of June 30, 2016 and December 31, 2015 , by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2016 December 31, 2015 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 11,376 $ 11,512 $ 8,380 $ 8,370 Due after one year through five years 101,658 104,839 65,326 66,996 Due after five years through ten years 318,124 326,477 296,864 301,920 Due after ten years 496,280 506,835 520,706 526,006 Total securities available for sale $ 927,438 $ 949,663 $ 891,276 $ 903,292 The following table presents the estimated fair value of available for sale securities which were pledged to secure public deposits, repurchase agreements, and for other purposes as permitted or required by law as of June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, 2016 December 31, 2015 Public deposits $ 183,813 $ 184,635 Repurchase agreements 122,562 126,120 Other purposes (1) 23,540 26,546 Total pledged securities $ 329,915 $ 337,301 (1) The "Other purposes" category consists of borrowings, derivatives, and accounts held at the Bank. Held to Maturity During the second quarter of 2015, the Company transferred securities, which it intends and has the ability to hold until maturity, with a fair value of $201.8 million on the date of transfer, from securities available for sale to securities held to maturity. The Company transferred these securities to held to maturity to reduce the impact of price volatility on capital and in consideration of changes to the regulatory environment. The securities included net pre-tax unrealized gains of $8.1 million at the date of transfer with a remaining balance of $5.9 million as of June 30, 2016 . The Company reports securities held to maturity on the Consolidated Balance Sheets at carrying value. Carrying value is amortized cost which includes any unamortized unrealized gains and losses recognized in accumulated other comprehensive income prior to reclassifying the securities from securities available for sale to securities held to maturity. Investment securities transferred into the held to maturity category from the available for sale category are recorded at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in accumulated other comprehensive income and in the carrying value of the securities held to maturity. Such unrealized gains/(losses) are accreted over the remaining life of the security with no impact on future net income. The carrying value, gross unrealized gains and losses, and estimated fair values of securities held to maturity as of June 30, 2016 and December 31, 2015 are summarized as follows (dollars in thousands): Carrying Gross Unrealized Estimated Value Gains (Losses) Fair Value June 30, 2016 Obligations of states and political subdivisions (1) $ 202,917 $ 9,153 $ (121 ) $ 211,949 December 31, 2015 Obligations of states and political subdivisions $ 205,374 $ 5,748 $ (1,685 ) $ 209,437 (1) The carrying value includes $5.9 million of net unrealized gains present at the time of transfer from available for sale securities, net of any accretion. The following table shows the gross unrealized losses and fair value (in thousands) of the Company’s held to maturity securities with unrealized losses that are not deemed to be other-than-temporarily impaired as of June 30, 2016 and December 31, 2015 . These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. Less than 12 months More than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2016 Obligations of states and political subdivisions $ — $ — $ 1,148 $ (121 ) $ 1,148 $ (121 ) December 31, 2015 Obligations of states and political subdivisions $ 7,056 $ (1,685 ) $ — $ — $ 7,056 $ (1,685 ) As of June 30, 2016 , there were $1.1 million , or 2 issues, of individual held to maturity securities that had been in a continuous loss position for more than 12 months. These securities had an unrealized loss of $121,000 and consisted of municipal obligations. The Company has determined that these securities are temporarily impaired as of June 30, 2016 and December 31, 2015 for the reasons set out below: Obligations of state and political subdivisions. This category’s unrealized losses are primarily the result of interest rate fluctuations and also a certain few ratings downgrades brought about by the impact of the economic downturn on states and political subdivisions. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment. Because the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired. The following table presents the amortized cost and estimated fair value of held to maturity securities as of June 30, 2016 and December 31, 2015 , by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2016 December 31, 2015 Carrying Value (1) Estimated Fair Value Carrying Value Estimated Fair Value Due in one year or less $ 857 $ 857 $ 1,488 $ 1,491 Due after one year through five years 18,122 18,564 4,294 4,348 Due after five years through ten years 45,802 47,469 44,736 45,501 Due after ten years 138,136 145,059 154,856 158,097 Total securities held to maturity $ 202,917 $ 211,949 $ 205,374 $ 209,437 (1) The carrying value includes $5.9 million of net unrealized gains present at the time of transfer from available for sale securities, net of any accretion. The following table presents the estimated fair value of held to maturity securities which were pledged to secure public deposits as permitted or required by law as of June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, 2016 December 31, 2015 Public deposits $ 211,949 $ 207,140 Total pledged securities $ 211,949 $ 207,140 Restricted Stock, at cost Due to restrictions placed upon the Bank’s common stock investment in the Federal Reserve Bank and FHLB, these securities have been classified as restricted equity securities and carried at cost. These restricted securities are not subject to the investment security classifications and are included as a separate line item on the Company’s Consolidated Balance Sheets. At June 30, 2016 and December 31, 2015 , the FHLB required the Bank to maintain stock in an amount equal to 4.25% of outstanding borrowings and a specific percentage of the Bank’s total assets. The Federal Reserve Bank required the Bank to maintain stock with a par value equal to 6% of its outstanding capital at both June 30, 2016 and December 31, 2015 . Restricted equity securities consist of Federal Reserve Bank stock in the amount of $23.8 million for both June 30, 2016 and December 31, 2015 and FHLB stock in the amount of $38.4 million and $28.0 million as of June 30, 2016 and December 31, 2015 , respectively. Other-Than-Temporary-Impairment During each quarter, the Company conducts an assessment of the securities portfolio for OTTI consideration. The assessment considers factors such as external credit ratings, delinquency coverage ratios, market price, management’s judgment, expectations of future performance, and relevant industry research and analysis. An impairment is other-than-temporary if any of the following conditions exist: the entity intends to sell the security; it is more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis; or the entity does not expect to recover the security’s entire amortized cost basis (even if the entity does not intend to sell). If a credit loss exists, but an entity does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, the impairment is other-than-temporary and should be separated into a credit portion to be recognized in earnings and the remaining amount relating to all other factors recognized as other comprehensive loss. Based on the assessment for the quarter ended June 30, 2016 , and in accordance with the guidance, no OTTI was recognized. For the year ended December 31, 2015 , the Company determined that a municipal security in the available for sale portfolio incurred credit-related OTTI of $300,000 . During the quarter ended March 31, 2016, the municipal security was sold. As a result, the Company recognized an additional loss on sale of the previously written down security. Realized Gains and Losses The following table presents the gross realized gains and losses on the sale of securities available for sale and the proceeds from the sale of securities during the three and six months ended June 30, 2016 and 2015 (dollars in thousands). The Company did not sell any investment securities that are held to maturity. Three Months Ended Six Months Ended Realized gains (losses): Gross realized gains $ 3 $ 242 Gross realized losses — (96 ) Net realized gains $ 3 $ 146 Proceeds from sales of securities $ 892 $ 15,424 Three Months Ended Six Months Ended Realized gains (losses): Gross realized gains $ 491 $ 684 Gross realized losses (87 ) (87 ) Net realized gains $ 404 $ 597 Proceeds from sales of securities $ 45,658 $ 58,157 |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 6 Months Ended |
Jun. 30, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES Loans are stated at their face amount, net of deferred fees and costs, and consist of the following at June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, 2016 December 31, 2015 Construction and Land Development $ 765,997 $ 749,720 Commercial Real Estate - Owner Occupied 831,880 860,086 Commercial Real Estate - Non-Owner Occupied 1,370,745 1,270,480 Multifamily Real Estate 337,723 322,528 Commercial & Industrial 469,054 435,365 Residential 1-4 Family 992,457 978,469 Auto 244,575 234,061 HELOC 519,196 516,726 Consumer and all other 409,471 304,027 Total loans held for investment, net (1) $ 5,941,098 $ 5,671,462 (1) Loans, as presented, are net of deferred fees and costs totaling $1.9 million and $3.0 million as of June 30, 2016 and December 31, 2015 , respectively. The following table shows the aging of the Company’s loan portfolio, by segment, at June 30, 2016 (dollars in thousands): 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days and still Accruing PCI Nonaccrual Current Total Loans Construction and Land Development $ 402 $ 1,177 $ 116 $ 5,013 $ 1,604 $ 757,685 $ 765,997 Commercial Real Estate - Owner Occupied 912 — 439 20,692 1,661 808,176 831,880 Commercial Real Estate - Non-Owner Occupied 267 — 723 18,297 — 1,351,458 1,370,745 Multifamily Real Estate — — — 2,092 — 335,631 337,723 Commercial & Industrial 2,464 62 117 1,354 263 464,794 469,054 Residential 1-4 Family 5,476 5,033 1,302 17,805 5,448 957,393 992,457 Auto 1,282 377 144 — 140 242,632 244,575 HELOC 1,347 1,228 642 1,517 1,495 512,967 519,196 Consumer and all other 1,364 412 50 400 250 406,995 409,471 Total Loans Held For Investment $ 13,514 $ 8,289 $ 3,533 $ 67,170 $ 10,861 $ 5,837,731 $ 5,941,098 The following table shows the aging of the Company’s loan portfolio, by segment, at December 31, 2015 (dollars in thousands): 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days and still Accruing PCI Nonaccrual Current Total Loans Construction and Land Development $ 3,155 $ 380 $ 128 $ 5,986 $ 2,113 $ 737,958 $ 749,720 Commercial Real Estate - Owner Occupied 1,714 118 103 27,388 3,904 826,859 860,086 Commercial Real Estate - Non-Owner Occupied 771 — 723 13,519 100 1,255,367 1,270,480 Multifamily Real Estate — — 272 1,555 — 320,701 322,528 Commercial & Industrial 1,056 27 124 1,813 429 431,916 435,365 Residential 1-4 Family 15,023 6,774 3,638 21,159 3,563 928,312 978,469 Auto 2,312 233 60 — 192 231,264 234,061 HELOC 2,589 1,112 762 1,791 1,348 509,124 516,726 Consumer and all other 1,167 689 19 526 287 301,339 304,027 Total Loans Held For Investment $ 27,787 $ 9,333 $ 5,829 $ 73,737 $ 11,936 $ 5,542,840 $ 5,671,462 The following table shows the PCI loan portfolios, by segment and their delinquency status, at June 30, 2016 (dollars in thousands): 30-89 Days Past Due Greater than 90 Days Current Total Construction and Land Development $ 3 $ 361 $ 4,649 $ 5,013 Commercial Real Estate - Owner Occupied 1,098 1,495 18,099 20,692 Commercial Real Estate - Non-Owner Occupied 795 171 17,331 18,297 Multifamily Real Estate — — 2,092 2,092 Commercial & Industrial 149 — 1,205 1,354 Residential 1-4 Family 1,014 1,213 15,578 17,805 HELOC 137 510 870 1,517 Consumer and all other — — 400 400 Total $ 3,196 $ 3,750 $ 60,224 $ 67,170 The following table shows the PCI loan portfolios, by segment and their delinquency status, at December 31, 2015 (dollars in thousands): 30-89 Days Past Due Greater than 90 Days Current Total Construction and Land Development $ 369 $ 241 $ 5,376 $ 5,986 Commercial Real Estate - Owner Occupied 1,139 1,412 24,837 27,388 Commercial Real Estate - Non-Owner Occupied 755 202 12,562 13,519 Multifamily Real Estate — — 1,555 1,555 Commercial & Industrial 209 21 1,583 1,813 Residential 1-4 Family 2,143 1,923 17,093 21,159 HELOC 410 458 923 1,791 Consumer and all other — — 526 526 Total $ 5,025 $ 4,257 $ 64,455 $ 73,737 The Company measures the amount of impairment by evaluating loans either in their collective homogeneous pools or individually. The following table shows the Company’s impaired loans, excluding PCI loans related to the StellarOne acquisition, by segment at June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, 2016 December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Loans without a specific allowance Construction and Land Development $ 29,877 $ 30,354 $ — $ 33,250 $ 33,731 $ — Commercial Real Estate - Owner Occupied 11,201 11,317 — 7,781 8,983 — Commercial Real Estate - Non-Owner Occupied 3,993 3,993 — 5,328 5,325 — Multifamily Real Estate 3,777 3,777 — 3,828 3,828 — Commercial & Industrial 1,154 1,572 — 711 951 — Residential 1-4 Family 10,065 11,024 — 7,564 8,829 — Auto — — — 7 7 — HELOC 1,900 2,046 — 1,786 2,028 — Consumer and all other 247 297 — 211 211 — Total impaired loans without a specific allowance $ 62,214 $ 64,380 $ — $ 60,466 $ 63,893 $ — Loans with a specific allowance Construction and Land Development $ 1,833 $ 2,234 $ 64 $ 3,167 $ 3,218 $ 538 Commercial Real Estate - Owner Occupied 2,291 2,320 49 3,237 3,239 358 Commercial Real Estate - Non-Owner Occupied 267 267 1 907 907 75 Commercial & Industrial 1,334 1,456 47 1,952 1,949 441 Residential 1-4 Family 3,880 3,978 345 6,065 6,153 418 Auto 140 188 1 192 199 1 HELOC 437 491 81 769 925 76 Consumer and all other 79 446 1 363 512 95 Total impaired loans with a specific allowance $ 10,261 $ 11,380 $ 589 $ 16,652 $ 17,102 $ 2,002 Total impaired loans $ 72,475 $ 75,760 $ 589 $ 77,118 $ 80,995 $ 2,002 The following tables show the average recorded investment and interest income recognized for the Company’s impaired loans, excluding PCI loans related to the StellarOne acquisition, by segment for the three and six months ended June 30, 2016 and 2015 (dollars in thousands): Three Months Ended Six Months Ended Average Investment Interest Income Recognized Average Investment Interest Income Recognized Construction and Land Development $ 30,524 $ 495 $ 30,174 $ 962 Commercial Real Estate - Owner Occupied 13,567 148 13,719 292 Commercial Real Estate - Non-Owner Occupied 4,215 43 4,216 79 Multifamily Real Estate 3,791 60 3,804 120 Commercial & Industrial 2,622 31 2,861 61 Residential 1-4 Family 14,189 90 14,365 183 Auto 162 — 183 — HELOC 2,492 11 2,519 29 Consumer and all other 374 1 572 4 Total impaired loans without a specific allowance $ 71,936 $ 879 $ 72,413 $ 1,730 Three Months Ended Six Months Ended Average Investment Interest Income Recognized Average Investment Interest Income Recognized Construction and Land Development $ 40,026 $ 838 $ 48,772 $ 1,366 Commercial Real Estate - Owner Occupied 17,871 169 18,007 341 Commercial Real Estate - Non-Owner Occupied 8,736 125 8,750 181 Multifamily Real Estate 4,597 85 4,600 147 Commercial & Industrial 4,525 60 4,659 102 Residential 1-4 Family 10,924 105 10,989 202 Auto 1 — 1 — HELOC 1,240 6 1,244 11 Consumer and all other 460 4 518 9 Total impaired loans without a specific allowance $ 88,380 $ 1,392 $ 97,540 $ 2,359 The Company considers TDRs to be impaired loans. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession that it would not otherwise consider to the borrower for economic or legal reasons related to the borrower’s financial difficulties. All loans that are considered to be TDRs are evaluated for impairment in accordance with the Company’s allowance for loan loss methodology and are included in the preceding impaired loan tables. For the quarter ended June 30, 2016 , the recorded investment in restructured loans prior to modifications was not materially impacted by the modification. The following table provides a summary, by segment, of modified loans that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and modified loans that have been placed on nonaccrual status, which are considered to be nonperforming, as of June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, 2016 December 31, 2015 No. of Loans Recorded Investment Outstanding Commitment No. of Loans Recorded Investment Outstanding Commitment Performing Construction and Land Development 5 $ 3,788 $ — 6 $ 3,349 $ — Commercial Real Estate - Owner Occupied 5 2,091 — 5 1,530 — Commercial Real Estate - Non-Owner Occupied 2 2,390 — 2 2,390 — Commercial & Industrial 4 218 — 5 261 — Residential 1-4 Family 27 3,323 — 27 3,173 — Consumer and all other 1 75 — 1 77 — Total performing 44 $ 11,885 $ — 46 $ 10,780 $ — Nonperforming Construction and Land Development 2 $ 215 $ — 2 $ 321 $ — Commercial Real Estate - Owner Occupied 2 167 — 1 137 — Commercial & Industrial 1 135 — 1 2 — Residential 1-4 Family 7 1,141 — 6 1,142 — HELOC — — — 1 319 — Total nonperforming 12 $ 1,658 $ — 11 $ 1,921 $ — Total performing and nonperforming 56 $ 13,543 $ — 57 $ 12,701 $ — The Company considers a default of a restructured loan to occur when the borrower is 90 days past due following the restructure or a foreclosure and repossession of the applicable collateral occurs. During the three and six months ended June 30, 2016 and 2015 , the Company did not identify any restructured loans that went into default that had been restructured in the twelve-month period prior to default. The following table shows, by segment and modification type, TDRs that occurred during the three and six months ended June 30, 2016 (dollars in thousands): Three Months Ended Six Months Ended No. of Loans Recorded Investment at Period End No. of Loans Recorded Investment at Period End Term modification, at a market rate Construction and Land Development 1 $ 1,193 1 $ 1,193 Commercial Real Estate - Owner Occupied 1 38 2 743 Residential 1-4 Family 1 100 2 476 Total loan term extended at a market rate 3 $ 1,331 5 $ 2,412 Term modification, below market rate Residential 1-4 Family 1 $ 37 1 $ 37 Total loan term extended at a below market rate 1 $ 37 1 $ 37 Interest rate modification, below market rate Commercial & Industrial 1 $ 135 1 $ 135 Total interest only at below market rate of interest 1 $ 135 1 $ 135 Total 5 $ 1,503 7 $ 2,584 The following table shows, by segment and modification type, TDRs that occurred during the three and six months ended June 30, 2015 (dollars in thousands): Three Months Ended Six Months Ended No. of Recorded No. of Recorded Term modification, at a market rate Commercial Real Estate - Owner Occupied 1 $ 120 1 $ 120 Commercial & Industrial — — 1 18 Total loan term extended at a market rate 1 120 2 138 Term modification, below market rate Commercial Real Estate - Owner Occupied 1 $ 873 1 $ 873 Total loan term extended at a below market rate 1 $ 873 1 $ 873 Total 2 $ 993 3 $ 1,011 The following table shows the allowance for loan loss activity, balances for allowance for loan losses, and loan balances based on impairment methodology by segment for the six months ended and as of June 30, 2016 . The table below includes the provision for loan losses. As discussed in Note 1 “Accounting Policies,” the Company enhanced its loan segmentation for purposes of the allowance calculation as well as its disclosures. The impact of this enhancement is reflected in the provision amounts in the table below. In addition, a $100,000 provision was recognized during the six months ended June 30, 2016 for unfunded loan commitments for which the reserves are recorded as a component of “Other Liabilities” on the Company’s Consolidated Balance Sheets. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands): Allowance for loan losses Balance, beginning of the year Recoveries credited to allowance Loans charged off Provision charged to operations Balance, end of period Construction and Land Development $ 6,040 $ 97 $ (859 ) $ 5,030 $ 10,308 Commercial Real Estate - Owner Occupied 4,614 62 (772 ) 129 4,033 Commercial Real Estate - Non-Owner Occupied 6,929 — — (1,536 ) 5,393 Multifamily Real Estate 1,606 — — (697 ) 909 Commercial & Industrial 3,163 355 (1,285 ) 1,793 4,026 Residential 1-4 Family 5,414 381 (295 ) 600 6,100 Auto 1,703 131 (525 ) (470 ) 839 HELOC 2,934 132 (800 ) (948 ) 1,318 Consumer and all other 1,644 330 (729 ) 903 2,148 Total $ 34,047 $ 1,488 $ (5,265 ) $ 4,804 $ 35,074 Loans individually evaluated for impairment Loans collectively evaluated for impairment Loans acquired with deteriorated credit quality Total Loans ALL Loans ALL Loans ALL Loans ALL Construction and Land Development $ 31,710 $ 64 $ 729,274 $ 10,244 $ 5,013 $ — $ 765,997 $ 10,308 Commercial Real Estate - Owner Occupied 13,492 49 797,696 3,984 20,692 — 831,880 4,033 Commercial Real Estate - Non-Owner Occupied 4,260 1 1,348,188 5,392 18,297 — 1,370,745 5,393 Multifamily Real Estate 3,777 — 331,854 909 2,092 — 337,723 909 Commercial & Industrial 2,488 47 465,212 3,979 1,354 — 469,054 4,026 Residential 1-4 Family 13,945 345 960,707 5,755 17,805 — 992,457 6,100 Auto 140 1 244,435 838 — — 244,575 839 HELOC 2,337 81 515,342 1,237 1,517 — 519,196 1,318 Consumer and all other 326 1 408,745 2,147 400 — 409,471 2,148 Total loans held for investment, net $ 72,475 $ 589 $ 5,801,453 $ 34,485 $ 67,170 $ — $ 5,941,098 $ 35,074 The following table shows the allowance for loan loss activity, balances for allowance for loan losses, and loan balances based on impairment methodology by segment for the six months ended and as of June 30, 2015 . In addition, a $ 200,000 provision was recognized during the six months ended June 30, 2015 for unfunded loan commitments. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands): Allowance for loan losses Balance, beginning of the year Recoveries credited to allowance Loans charged off Provision charged to operations Balance, end of period Construction and Land Development $ 4,856 $ 345 $ (68 ) $ (205 ) $ 4,928 Commercial Real Estate - Owner Occupied 4,640 8 (481 ) 697 4,864 Commercial Real Estate - Non-Owner Occupied 7,256 55 (2,765 ) 1,760 6,306 Multifamily Real Estate 1,374 — — 261 1,635 Commercial & Industrial 2,610 217 (1,693 ) 1,958 3,092 Residential 1-4 Family 5,607 469 (715 ) (75 ) 5,286 Auto 1,297 162 (382 ) 318 1,395 HELOC 2,675 146 (288 ) 179 2,712 Consumer and all other 2,069 294 (643 ) 406 2,126 Total $ 32,384 $ 1,696 $ (7,035 ) $ 5,299 $ 32,344 Loans individually evaluated for impairment Loans collectively evaluated for impairment Loans acquired with deteriorated credit quality Total Loans ALL Loans ALL Loans ALL Loans ALL Construction and Land Development $ 48,184 $ 145 $ 614,653 $ 4,783 $ 8,397 $ — $ 671,234 $ 4,928 Commercial Real Estate - Owner Occupied 18,079 657 826,665 4,207 29,838 — 874,582 4,864 Commercial Real Estate - Non-Owner Occupied 8,438 81 1,192,226 6,225 16,982 — 1,217,646 6,306 Multifamily Real Estate 4,621 — 308,849 1,635 3,004 — 316,474 1,635 Commercial & Industrial 4,427 460 418,826 2,632 2,940 — 426,193 3,092 Residential 1-4 Family 10,024 256 957,411 5,030 24,157 — 991,592 5,286 Auto — — 216,420 1,395 — — 216,420 1,395 HELOC 1,058 4 509,225 2,708 1,840 — 512,123 2,712 Consumer and all other 384 7 283,054 2,119 683 — 284,121 2,126 Total loans held for investment, net $ 95,215 $ 1,610 $ 5,327,329 $ 30,734 $ 87,841 $ — $ 5,510,385 $ 32,344 The Company uses a risk rating system and past due status as the primary credit quality indicators for the loan categories. The risk rating system on a scale of 0 through 9 is used to determine risk level as used in the calculation of the allowance for loan losses; on those loans without a risk rating, the Company uses past due status to determine risk level. The risk levels, as described below, do not necessarily follow the regulatory definitions of risk levels with the same name. A general description of the characteristics of the risk levels follows: Pass is determined by the following criteria: • Risk rated 0 loans have little or no risk and are generally secured by General Obligation Municipal Credits; • Risk rated 1 loans have little or no risk and are generally secured by cash or cash equivalents; • Risk rated 2 loans have minimal risk to well qualified borrowers and no significant questions as to safety; • Risk rated 3 loans are satisfactory loans with strong borrowers and secondary sources of repayment; • Risk rated 4 loans are satisfactory loans with borrowers not as strong as risk rated 3 loans and may exhibit a greater degree of financial risk based on the type of business supporting the loan; or • Loans that are not risk rated but that are 0 to 29 days past due. Special Mention is determined by the following criteria: • Risk rated 5 loans are watch loans that warrant more than the normal level of supervision and have the possibility of an event occurring that may weaken the borrower’s ability to repay; • Risk rated 6 loans have increasing potential weaknesses beyond those at which the loan originally was granted and if not addressed could lead to inadequately protecting the Company’s credit position; or • Loans that are not risk rated but that are 30 to 89 days past due. Substandard is determined by the following criteria: • Risk rated 7 loans are substandard loans and are inadequately protected by the current sound worth or paying capacity of the obligor or the collateral pledged; these have well defined weaknesses that jeopardize the liquidation of the debt with the distinct possibility the Company will sustain some loss if the deficiencies are not corrected; or • Loans that are not risk rated but that are 90 to 149 days past due. Doubtful is determined by the following criteria: • Risk rated 8 loans are doubtful of collection and the possibility of loss is high but pending specific borrower plans for recovery, its classification as a loss is deferred until its more exact status is determined; • Risk rated 9 loans are loss loans which are considered uncollectable and of such little value that their continuance as bankable assets is not warranted; or • Loans that are not risk rated but that are over 149 days past due. The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of June 30, 2016 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 684,002 $ 47,592 $ 29,274 $ 116 $ 760,984 Commercial Real Estate - Owner Occupied 779,574 25,352 6,262 — 811,188 Commercial Real Estate - Non-Owner Occupied 1,317,192 30,997 4,259 — 1,352,448 Multifamily Real Estate 324,718 7,136 3,777 — 335,631 Commercial & Industrial 449,708 15,953 2,039 — 467,700 Residential 1-4 Family 943,154 22,467 6,876 2,155 974,652 Auto 242,596 1,698 103 178 244,575 HELOC 511,936 3,718 1,438 587 517,679 Consumer and all other 405,742 3,083 37 209 409,071 Total $ 5,658,622 $ 157,996 $ 54,065 $ 3,245 $ 5,873,928 The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of December 31, 2015 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 663,067 $ 52,650 $ 27,980 $ 37 $ 743,734 Commercial Real Estate - Owner Occupied 800,979 20,856 8,931 1,932 832,698 Commercial Real Estate - Non-Owner Occupied 1,228,956 22,341 5,664 — 1,256,961 Multifamily Real Estate 315,128 2,017 3,828 — 320,973 Commercial & Industrial 414,333 16,724 2,396 99 433,552 Residential 1-4 Family 912,839 34,728 8,037 1,706 957,310 Auto 230,670 3,109 194 88 234,061 HELOC 507,514 4,801 1,611 1,009 514,935 Consumer and all other 299,014 3,996 231 260 303,501 Total $ 5,372,500 $ 161,222 $ 58,872 $ 5,131 $ 5,597,725 The following table shows the recorded investment in only PCI loans by segment with their related risk level as of June 30, 2016 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 1,071 $ 2,432 $ 1,269 $ 241 $ 5,013 Commercial Real Estate - Owner Occupied 5,407 9,813 5,472 — 20,692 Commercial Real Estate - Non-Owner Occupied 5,335 12,400 562 — 18,297 Multifamily Real Estate 350 1,742 — — 2,092 Commercial & Industrial 104 434 816 — 1,354 Residential 1-4 Family 8,677 5,224 3,285 619 17,805 HELOC 861 146 79 431 1,517 Consumer and all other 181 195 24 — 400 Total $ 21,986 $ 32,386 $ 11,507 $ 1,291 $ 67,170 The following table shows the recorded investment in only PCI loans by segment with their related risk level as of December 31, 2015 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 2,059 $ 1,778 $ 1,908 $ 241 $ 5,986 Commercial Real Estate - Owner Occupied 5,260 15,530 6,598 — 27,388 Commercial Real Estate - Non-Owner Occupied 4,442 7,827 1,250 — 13,519 Multifamily Real Estate 356 1,199 — — 1,555 Commercial & Industrial 144 359 1,289 21 1,813 Residential 1-4 Family 9,098 6,380 4,605 1,076 21,159 HELOC 923 410 20 438 1,791 Consumer and all other 57 379 90 — 526 Total $ 22,339 $ 33,862 $ 15,760 $ 1,776 $ 73,737 Loans acquired are originally recorded at fair value, with certain loans being identified as impaired at the date of purchase. The fair values were determined based on the credit quality of the portfolio, expected future cash flows, and timing of those expected future cash flows. The following shows changes in the accretable yield for loans accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality, for the periods presented (dollars in thousands): For the Six Months Ended 2016 2015 Balance at beginning of period $ 22,139 $ 28,956 Additions — — Accretion (2,792 ) (3,106 ) Reclass of nonaccretable difference due to improvement in expected cash flows 3,450 2,976 Other, net (1) (2,139 ) (4,784 ) Balance at end of period $ 20,658 $ 24,042 (1) This line item represents changes in the cash flows expected to be collected due to the impact of non-credit changes such as prepayment assumptions, changes in interest rates on variable rate PCI loans, and discounted payoffs that occurred in the quarter. The carrying value of the Company’s PCI loan portfolio, accounted for under ASC 310-30, totaled $67.2 million at June 30, 2016 and $73.7 million at December 31, 2015 . The outstanding balance of the Company’s PCI loan portfolio totaled $83.1 million at June 30, 2016 and $90.3 million at December 31, 2015 . The carrying value of the Company’s acquired performing loan portfolio, accounted for under ASC 310-20, Receivables – Nonrefundable Fees and Other Costs , totaled $1.2 billion at June 30, 2016 and $1.4 billion at December 31, 2015 ; the remaining discount on these loans totaled $19.1 million at June 30, 2016 and $20.8 million at December 31, 2015 . |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The Company’s intangible assets consist of core deposits, goodwill, and other intangibles arising from previous and current acquisitions. The Company has determined that core deposit intangibles have finite lives and amortizes them over their estimated useful lives. Core deposit intangible assets are being amortized over the period of expected benefit, which ranges from 4 to 14 years , using an accelerated method. On January 1, 2014, the Company completed the acquisition of StellarOne and acquired intangible assets of $29.6 million and recorded $234.1 million of goodwill. On May 31, 2016, the Company completed the acquisition of ODCM and recorded goodwill of $4.1 million and other amortizable intangible assets of $3.8 million . The Company currently estimates that these other intangibles assets will be amortized over 10 years using a straight-line method. The intangible values and amortization method are preliminary and subject to refinement for up to one year after the closing date of the acquisition. In accordance with ASC 350, Intangibles-Goodwill and Other, the Company reviews the carrying value of indefinite lived intangible assets at least annually or more frequently if certain impairment indicators exist. The Company performed its annual impairment testing in the second quarter of 2016 and determined that there was no impairment to its goodwill or intangible assets. Amortization expense of core deposit intangibles for the three and six months ended June 30, 2016 totaled $1.7 million and $3.6 million , respectively; and the three and six months ended June 30, 2015 totaled $2.1 million and $4.4 million , respectively. As of June 30, 2016 , the estimated remaining amortization expense of core deposit intangibles and other amortizable intangible assets is as follows (dollars in thousands): For the remaining six months of 2016 $ 3,495 For the year ending December 31, 2017 5,966 For the year ending December 31, 2018 4,520 For the year ending December 31, 2019 3,469 For the year ending December 31, 2020 2,404 For the year ending December 31, 2021 1,411 Thereafter 2,184 Total estimated amortization expense $ 23,449 |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS Short-term Borrowings The Company classifies all borrowings that will mature within a year from the date on which the Company enters into them as short-term borrowings. Total short-term borrowings consist primarily of advances from the FHLB, federal funds purchased (which are secured overnight borrowings from other financial institutions), and other lines of credit. Also included in total short-term borrowings are securities sold under agreements to repurchase, which are secured transactions with customers and generally mature the day following the date sold. Total short-term borrowings consist of the following as of June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, December 31, Securities sold under agreements to repurchase $ 121,262 $ 84,977 Other short-term borrowings 557,000 304,000 Total short-term borrowings $ 678,262 $ 388,977 Maximum month-end outstanding balance $ 678,262 $ 445,761 Average outstanding balance during the period 564,443 379,783 Average interest rate during the period 0.47 % 0.25 % Average interest rate at end of period 0.48 % 0.27 % Other short-term borrowings: Federal funds purchased $ — $ — FHLB $ 541,000 $ 304,000 Other lines of credit 16,000 — The Bank maintains federal funds lines with several correspondent banks; the remaining available balance was $175.0 million at June 30, 2016 and December 31, 2015 , respectively. The Company has certain restrictive covenants related to certain asset quality, capital, and profitability metrics associated with these lines and is considered to be in compliance with these covenants. Additionally, the Company had a collateral dependent line of credit with the FHLB of up to $2.3 billion and $1.5 billion at June 30, 2016 and December 31, 2015 , respectively. Long-term Borrowings In connection with two bank acquisitions prior to 2006, the Company issued trust preferred capital notes to fund the cash portion of those acquisitions, collectively totaling $58.5 million . In connection with the acquisition of StellarOne, the Company acquired trust preferred capital notes totaling $32.0 million with a remaining fair value discount of $6.9 million at June 30, 2016 . The trust preferred capital notes currently qualify for Tier 1 capital of the Company for regulatory purposes. Trust Preferred Capital Securities (1) Investment (1) Spread to 3-Month LIBOR Rate Maturity Trust Preferred Capital Note - Statutory Trust I $ 22,500,000 $ 696,000 2.75 % 3.40 % 6/17/2034 Trust Preferred Capital Note - Statutory Trust II 36,000,000 1,114,000 1.40 % 2.05 % 6/15/2036 VFG Limited Liability Trust I Indenture 20,000,000 619,000 2.73 % 3.38 % 3/18/2034 FNB Statutory Trust II Indenture 12,000,000 372,000 3.10 % 3.75 % 6/26/2033 Total $ 90,500,000 $ 2,801,000 (1)The total of the trust preferred capital securities and investments in the respective trusts represents the principal asset of the Company's junior subordinated debt securities with like maturities and like interest rates to the capital securities. The Company's investment in the trusts is reported in "Other Assets" within the Consolidated Balance Sheets. On August 23, 2012, the Company modified its fixed rate FHLB advances to floating rate advances, which resulted in reducing the Company’s FHLB borrowing costs. In connection with this modification, the Company incurred a prepayment penalty of $19.6 million on the original advances, which is included as a component of long-term borrowings in the Company’s Consolidated Balance Sheets. In accordance with ASC 470-50, Modifications and Extinguishments , the Company will amortize this prepayment penalty over the term of the modified advances using the effective rate method. The amortization expense is included as a component of interest expense on long-term borrowings in the Company’s Consolidated Statements of Income. Amortization expense for the three and six months ended June 30, 2016 and 2015 was $466,000 and $930,000 and $455,000 and $902,000 , respectively. In connection with the StellarOne acquisition, the Company assumed $70.0 million in long-term borrowings with the FHLB of which there is $60.0 million remaining at June 30, 2016 that had a remaining fair value premium of $875,000 . As of June 30, 2016 , the Company had long-term advances from the FHLB consisting of the following (dollars in thousands): Long-term Type Spread to 3-Month LIBOR Interest Rate Maturity Date Advance Amount Adjustable Rate Credit 0.44 % 1.09 % 8/23/2022 $ 55,000 Adjustable Rate Credit 0.45 % 1.11 % 11/23/2022 65,000 Adjustable Rate Credit 0.45 % 1.11 % 11/23/2022 10,000 Adjustable Rate Credit 0.45 % 1.11 % 11/23/2022 10,000 Fixed Rate — 3.62 % 11/28/2017 10,000 Fixed Rate — 3.75 % 7/30/2018 5,000 Fixed Rate — 3.97 % 7/30/2018 5,000 Fixed Rate Hybrid — 2.11 % 10/5/2016 25,000 Fixed Rate Hybrid — 0.91 % 7/25/2016 15,000 $ 200,000 As of December 31, 2015 , the Company had long-term advances from the FHLB consisting of the following (dollars in thousands): Long-term Type Spread to 3-Month LIBOR Interest Rate Maturity Date Advance Amount Adjustable Rate Credit 0.44 % 1.05 % 8/23/2022 $ 55,000 Adjustable Rate Credit 0.45 % 1.07 % 11/23/2022 65,000 Adjustable Rate Credit 0.45 % 1.07 % 11/23/2022 10,000 Adjustable Rate Credit 0.45 % 1.07 % 11/23/2022 10,000 Fixed Rate — 3.62 % 11/28/2017 10,000 Fixed Rate — 3.75 % 7/30/2018 5,000 Fixed Rate — 3.97 % 7/30/2018 5,000 Fixed Rate Hybrid — 2.11 % 10/5/2016 25,000 Fixed Rate Hybrid — 0.91 % 7/25/2016 15,000 $ 200,000 The carrying value of the loans and securities pledged as collateral for FHLB advances totaled $1.9 billion as of June 30, 2016 and December 31, 2015 , respectively. As of June 30, 2016 , the contractual maturities of long-term debt are as follows for the years ending (dollars in thousands): Trust Preferred Capital Notes FHLB Advances Fair Value Premium (Discount) Prepayment Penalty Total Long-term Borrowings For the remaining six months of 2016 $ — $ 40,000 $ 190 $ (952 ) $ 39,238 2017 — 10,000 170 (1,922 ) 8,248 2018 — 10,000 (143 ) (1,970 ) 7,887 2019 — — (286 ) (2,018 ) (2,304 ) 2020 — — (301 ) (2,074 ) (2,375 ) 2021 — — (316 ) (2,119 ) (2,435 ) Thereafter 93,301 140,000 (5,306 ) (1,707 ) 226,288 Total Long-term borrowings $ 93,301 $ 200,000 $ (5,992 ) $ (12,762 ) $ 274,547 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation Matters In the ordinary course of its operations, the Company and its subsidiaries are parties to various legal proceedings. Based on the information presently available, and after consultation with legal counsel, management believes that the ultimate outcome in such proceedings, in the aggregate, will not have a material adverse effect on the business, financial condition, or results of operations of the Company. Financial Instruments with Off-Balance Sheet Risk 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 and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve elements of credit and interest rate risk in excess of the amount recognized in the Company’s Consolidated Balance Sheets. The contractual amounts of these instruments reflect the extent of the Company’s involvement in particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and letters of credit written is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Unless noted otherwise, the Company does not require collateral or other security to support off-balance sheet financial instruments with credit risk. The Company considers credit losses related to off-balance sheet commitments by undergoing a similar process in evaluating losses for loans that are carried on balance sheet. The Company considers historical loss rates, current economic conditions, risk ratings, and past due status among other factors in the consideration of whether credit losses are inherent in the Company’s off-balance sheet commitments to extend credit. The Company does not expect credit losses arising from off-balance sheet commitments to have a material adverse impact on the Company’s consolidated financial statements. Commitments to extend credit are agreements to lend to customers as long as there are no violations of any conditions established in the contracts. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Letters of credit are conditional commitments issued by the Company to guarantee the performance of customers to third parties. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. UMG, a wholly owned subsidiary of the Bank, uses rate lock commitments and best efforts contracts during the origination process and for loans held for sale. These best efforts contracts are designed to mitigate UMG’s exposure to fluctuations in interest rates in connection with rate lock commitments and loans held for sale. The following table presents the balances of commitments and contingencies (dollars in thousands): June 30, 2016 December 31, 2015 Commitments with off-balance sheet risk: Commitments to extend credit (1) $ 1,606,131 $ 1,557,350 Standby letters of credit 80,593 139,371 Mortgage loan rate lock commitments 71,861 50,369 Total commitments with off-balance sheet risk $ 1,758,585 $ 1,747,090 Commitments with balance sheet risk: Loans held for sale $ 38,114 $ 36,030 Total other commitments $ 1,796,699 $ 1,783,120 (1) Includes unfunded overdraft protection. The Company must maintain a reserve against its deposits in accordance with Regulation D of the Federal Reserve Act. For the final weekly reporting period in the periods ended June 30, 2016 and December 31, 2015 , the aggregate amount of daily average required reserves was approximately $50.4 million and $48.7 million , respectively. As of June 30, 2016 , the Company had approximately $50.2 million in deposits in other financial institutions, of which $18.4 million and $14.4 million serve as collateral for the cash flow hedges and loan swaps, respectively, as discussed in Note 7 “Derivatives”. The Company had approximately $15.8 million in deposits in other financial institutions that were uninsured at June 30, 2016 . On an annual basis, the Company’s management evaluates the loss risk of its uninsured deposits in financial counterparties. For asset/liability management purposes, the Company uses interest rate swap agreements to hedge various exposures or to modify the interest rate characteristics of various balance sheet accounts. See Note 7 “Derivatives” for additional information. In the ordinary course of business, the Company records an indemnification reserve relating to mortgage loans previously sold based on historical statistics and loss rates; as of June 30, 2016 and December 31, 2015 , the Company’s indemnification reserve for such mortgage loans was approximately $366,000 and $450,000 , respectively. |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES The Company is exposed to economic risks arising from its business operations and uses derivatives primarily to manage risk associated with changing interest rates, and to assist customers with their risk management objectives. The Company designates certain derivatives as hedging instruments in a qualifying hedge accounting relationship (cash flow or fair value hedge). The remaining are classified as free standing derivatives consisting of customer accommodation loan swaps and interest rate lock commitments that do not qualify for hedge accounting. Cash Flow Hedges The Company designates derivatives as cash flow hedges when they are used to manage exposure to variability in cash flows related to forecasted transactions on variable rate borrowings such as trust preferred capital notes, FHLB borrowings, and prime commercial loans. The Company uses interest rate swap agreements as part of its hedging strategy by exchanging a notional amount, equal to the principal amount of the borrowings, for fixed-rate interest based on benchmarked interest rates. All swaps were entered into with counterparties that met the Company’s credit standards and the agreements contain collateral provisions protecting the at-risk party. The Company believes that the credit risk inherent in the contract is not significant. The terms and conditions of the interest rate swaps vary and amounts receivable or payable are recognized as accrued under the terms of the agreements. The Company assesses the effectiveness of each hedging relationship on a periodic basis using statistical regression analysis. The Company also measures the ineffectiveness of each hedging relationship using the change in variable cash flows method which compares the cumulative changes in cash flows of the hedging instrument relative to cumulative changes in the hedged item’s cash flows. In accordance with ASC 815, Derivatives and Hedging , the effective portions of the derivatives’ unrealized gains or losses are recorded as a component of other comprehensive income. Based on the Company’s assessment its cash flow hedges are highly effective, but to the extent that any ineffectiveness exists in the hedge relationships, the amounts would be recorded in interest income and interest expense in the Company’s Consolidated Statements of Income. On June 13, 2016, the Company terminated three interest rate swaps designated as cash flow hedges prior to their maturity. The unrealized gain of $1.3 million within accumulated Other Comprehensive Income will be re-classified into earnings over a three year period using the effective interest method. The estimated net amount of gains expected to be reclassified into earnings within the next twelve months is $373,000 . Fair Value Hedge Derivatives are designated as fair value hedges when they are used to manage exposure to changes in the fair value of certain financial assets and liabilities, referred to as the hedged items, which fluctuate in value as a result of movements in interest rates. During the normal course of business, the Company enters into interest rate swaps to convert certain long-term fixed-rate loans to floating rates to hedge the Company’s exposure to interest rate risk. The Company pays a fixed interest rate to the counterparty and receives a floating rate from the same counterparty calculated on the aggregate notional amount. At June 30, 2016 and December 31, 2015 , the aggregate notional amount of the related hedged items was $43.8 million and $61.2 million , respectively, with fair value amounts of $3.6 million and $689,000 , respectively. The Company applies hedge accounting in accordance with ASC 815 and the fair value hedge and the underlying hedged item, attributable to the risk being hedged, are recorded at fair value with unrealized gains and losses being recorded in the Company’s Consolidated Statements of Income. Statistical regression analysis is used to assess hedge effectiveness, both at inception of the hedging relationship and on an ongoing basis. The regression analysis involves regressing the periodic change in fair value of the hedging instrument against the periodic changes in fair value of the asset being hedged due to changes in the hedged risk. The Company’s fair value hedges continue to be highly effective and had no material impact on the Consolidated Statements of Income, but if any ineffectiveness exists, portions of the unrealized gains or losses would be recorded in interest income and interest expense in the Company’s Consolidated Statements of Income. Loan Swaps During the normal course of business, the Company enters into interest rate swap loan relationships (“loan swaps”) with borrowers to meet their financing needs. Upon entering into the loan swaps, the Company enters into offsetting positions with a third party in order to minimize interest rate risk. These back-to-back loan swaps qualify as financial derivatives with fair values as reported in “Other Assets” and “Other Liabilities” in the Company’s Consolidated Balance Sheets. Interest Rate Lock Commitments During the normal course of business, the Company enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (“rate lock commitments”). Rate lock commitments on mortgage loans that are intended to be sold in the secondary market are considered to be derivatives. The period of time between issuance of a loan commitment, closing, and sale of the loan generally ranges from 30 to 120 days . The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. The correlation between the rate lock commitments and the best efforts contracts is high due to their similarity. The market values of rate lock commitments and best efforts forward delivery commitments is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Company determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the value of the underlying asset while taking into consideration the probability that the rate lock commitments will close. The fair value of the rate lock commitments is reported as a component of “Other Assets” in the Company’s Consolidated Balance Sheets; the fair value of the Company’s best efforts forward delivery commitments is recorded as a component of “Other Liabilities” in the Company’s Consolidated Balance Sheets. Any impact to income is recorded in current period earnings as a component of “Mortgage banking income, net” in the Company’s Consolidated Statements of Income. The following table summarizes key elements of the Company’s derivative instruments as of June 30, 2016 and December 31, 2015 , segregated by derivatives that are considered accounting hedges and those that are not (dollars in thousands): June 30, 2016 December 31, 2015 Derivative (2) Derivative (2) Notional or Contractual Amount (1) Assets Liabilities Collateral Pledged (3) Notional or Contractual Amount (1) Assets Liabilities Collateral Pledged (3) Derivatives designated as accounting hedges: Interest rate contracts: Cash flow hedges $ 220,500 $ 382 $ 17,263 $ 21,774 $ 263,000 $ 946 $ 10,352 $ 14,449 Fair value hedges 43,845 — 3,816 — 61,150 — 888 — Derivatives not designated as accounting hedges: Loan Swaps (4) Pay fixed - receive floating interest rate swaps 218,614 11,948 — — 138,969 3,758 — — Pay floating - receive fixed interest rate swaps 218,614 — 11,948 15,885 138,969 — 3,758 5,983 Other contracts: Interest rate lock commitments 71,861 1,712 — — 50,369 701 — — (1) Notional amounts are not recorded on the balance sheet and are generally used only as a basis on which interest and other payments are determined. (2) Balances represent fair value of derivative financial instruments. (3) Collateral pledged is comprised of both cash and securities. (4) Prior period reflects reclassifications to conform to the current presentation. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The change in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2016 is summarized as follows, net of tax (dollars in thousands): Unrealized Gains (Losses) on AFS Securities Unrealized Gain for AFS Securities Transferred to HTM Change in Fair Value of Cash Flow Hedge Total Balance - March 31, 2016 $ 10,716 $ 4,140 $ (8,497 ) $ 6,359 Other comprehensive income (loss) 3,698 (287 ) (1,007 ) 2,404 Amounts reclassified from accumulated other comprehensive income (2 ) — 138 136 Net current period other comprehensive income (loss) 3,696 (287 ) (869 ) 2,540 Balance - June 30, 2016 $ 14,412 $ 3,853 $ (9,366 ) $ 8,899 Unrealized Gains (Losses) on AFS Securities Unrealized Gain for AFS Securities Transferred to HTM Change in Fair Value of Cash Flow Hedge Total Balance - December 31, 2015 $ 7,777 $ 4,432 $ (5,957 ) $ 6,252 Other comprehensive income (loss) 6,730 (579 ) (3,688 ) 2,463 Amounts reclassified from accumulated other comprehensive income (95 ) — 279 184 Net current period other comprehensive income (loss) 6,635 (579 ) (3,409 ) 2,647 Balance - June 30, 2016 $ 14,412 $ 3,853 $ (9,366 ) $ 8,899 The change in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2015 is summarized as follows, net of tax (dollars in thousands): Unrealized Gains (Losses) on AFS Securities Unrealized Gain for AFS Securities Transferred to HTM Change in Fair Value of Cash Flow Hedge Total Balance - March 31, 2015 $ 21,097 $ — $ (6,402 ) $ 14,695 Unrealized gain transferred from AFS to HTM (5,251 ) 5,251 — — Other comprehensive income (loss) (6,845 ) (208 ) 1,809 (5,244 ) Amounts reclassified from accumulated other comprehensive income (263 ) — 41 (222 ) Net current period other comprehensive income (loss) (7,108 ) (208 ) 1,850 (5,466 ) Balance - June 30, 2015 $ 8,738 $ 5,043 $ (4,552 ) $ 9,229 Unrealized Gains (Losses) on AFS Securities Unrealized Gain for AFS Securities Transferred to HTM Change in Fair Value of Cash Flow Hedge Total Balance - December 31, 2014 $ 17,439 $ — $ (5,184 ) $ 12,255 Unrealized gain transferred from AFS to HTM (5,251 ) 5,251 — — Other comprehensive income (loss) (3,062 ) (208 ) 319 (2,951 ) Amounts reclassified from accumulated other comprehensive income (388 ) — 313 (75 ) Net current period other comprehensive income (loss) (3,450 ) (208 ) 632 (3,026 ) Balance - June 30, 2015 $ 8,738 $ 5,043 $ (4,552 ) $ 9,229 Reclassifications of unrealized gains (losses) on available for sale securities are reported in the Company’s Consolidated Statements of Income as “Gains on securities transactions, net” with the corresponding income tax effect being reflected as a component of income tax expense. The Company reported gains of $3,000 and $404,000 for the three months and $146,000 and $597,000 for the six months ended June 30, 2016 and 2015 , respectively, related to the sale of securities. The tax effect of these transactions during the three and six months ended June 30, 2016 and 2015 were $1,000 and $51,000 and $142,000 and $209,000 , respectively, which amounts were included as a component of income tax expense. Reclassifications of the change in fair value of cash flow hedges are reported in interest income and interest expense in the Company’s Consolidated Statements of Income with the corresponding income tax effect being reflected as a component of income tax expense. The Company reported net interest expense of $212,000 and $429,000 and $63,000 and $482,000 for the three and six months ended June 30, 2016 and 2015 , respectively. The tax effect of these transactions during the three and six months ended June 30, 2016 and 2015 were $74,000 and $150,000 and $22,000 and $169,000 , respectively, which were included as a component of income tax expense. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company follows ASC 820, Fair Value Measurements and Disclosures , to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. This codification clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants. ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy under ASC 820 based on these two types of inputs are as follows: Level 1 Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the markets. Level 3 Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. These unobservable inputs reflect the Company’s assumptions about what market participants would use and information that is reasonably available under the circumstances without undue cost and effort. The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements. Derivative instruments As discussed in Note 7 “Derivatives”, the Company records derivative instruments at fair value on a recurring basis. The Company utilizes derivative instruments as part of the management of interest rate risk to modify the re-pricing characteristics of certain portions of the Company’s interest-bearing assets and liabilities. The Company has contracted with a third party vendor to provide valuations for derivatives using standard valuation techniques and therefore classifies such valuations as Level 2. Third party valuations are validated by the Company using Bloomberg Valuation Service’s derivative pricing functions. The Company has considered counterparty credit risk in the valuation of its derivative assets and has considered its own credit risk in the valuation of its derivative liabilities. During the ordinary course of business, the Company enters into interest rate lock commitments related to the origination of mortgage loans held for sale as well as best effort forward delivery commitments to mitigate interest rate risk; these instruments are recorded at estimated fair value based on the value of the underlying loan, which in turn is based on quoted prices for similar loans in the secondary market. However, this value is adjusted by a pull-through rate which considers the likelihood that the loan in a lock position will ultimately close. The pull-through rate is derived from the Company’s internal data and is adjusted using significant management judgment. The pull-through rate is largely dependent on the loan processing stage that a loan is currently in and the change in prevailing interest rates from the time of the rate lock. As such, interest rate lock commitments are classified as Level 3. An increase in the pull-through rate utilized in the fair value measurement of the interest rate lock commitment derivative will result in positive fair value adjustments while a decrease in the pull-through rate will result in a negative fair value adjustment. The Company’s weighted average pull-through rate was approximately 80% as of June 30, 2016 and December 31, 2015 . As of June 30, 2016 , the interest rate lock commitments are recorded as a component of “Other Assets” on the Company’s Consolidated Balance Sheets. Securities available for sale Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data (Level 2). If the inputs used to provide the evaluation for certain securities are unobservable and/or there is little, if any, market activity, then the security would fall to the lowest level of the hierarchy (Level 3). The Company’s investment portfolio is primarily valued using fair value measurements that are considered to be Level 2. The Company has contracted with a third party portfolio accounting service vendor for valuation of its securities portfolio. The vendor’s primary source for security valuation is Interactive Data Corporation (“IDC”), which evaluates securities based on market data. IDC utilizes evaluated pricing models that vary by asset class and include available trade, bid, and other market information. Generally, the methodology includes broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. The vendor utilizes proprietary valuation matrices for valuing all municipals securities. The initial curves for determining the price, movement, and yield relationships within the municipal matrices are derived from industry benchmark curves or sourced from a municipal trading desk. The securities are further broken down according to issuer, credit support, state of issuance, and rating to incorporate additional spreads to the industry benchmark curves. The Company primarily uses Bloomberg Valuation Service, an independent information source that draws on quantitative models and market data contributed from over 4,000 market participants, to validate third party valuations. Any material differences between valuation sources are researched by further analyzing the various inputs that are utilized by each pricing source. No material differences were identified during the validation as of June 30, 2016 and December 31, 2015 . The carrying value of restricted Federal Reserve Bank and FHLB stock approximates fair value based on the redemption provisions of each entity and is therefore excluded from the following table. Loans held for sale Loans held for sale are carried at fair value. These loans currently consist of residential loans originated for sale in the secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale (Level 2). Gains and losses on the sale of loans are recorded within the mortgage segment and are reported on a separate line item in the Company’s Consolidated Statements of Income. The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis at June 30, 2016 and December 31, 2015 (dollars in thousands): Fair Value Measurements at June 30, 2016 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Balance ASSETS Securities available for sale: Obligations of states and political subdivisions $ — $ 272,786 $ — $ 272,786 Corporate and other bonds — 108,579 — 108,579 Mortgage-backed securities — 554,964 — 554,964 Other securities — 13,334 — 13,334 Loans held for sale — 38,114 — 38,114 Derivatives: Interest rate swap — 11,948 — 11,948 Cash flow hedges — 382 — 382 Interest rate lock commitments — — 1,712 1,712 LIABILITIES Derivatives: Interest rate swap $ — $ 11,948 $ — $ 11,948 Cash flow hedges — 17,263 — 17,263 Fair value hedges — 3,816 — 3,816 Fair Value Measurements at December 31, 2015 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Balance ASSETS Securities available for sale: Obligations of states and political subdivisions $ — $ 268,079 $ — $ 268,079 Corporate and other bonds — 75,979 — 75,979 Mortgage-backed securities — 548,171 — 548,171 Other securities — 11,063 — 11,063 Loans held for sale — 36,030 — 36,030 Derivatives: Interest rate swap — 3,758 — 3,758 Cash flow hedges — 946 — 946 Interest rate lock commitments — — 701 701 LIABILITIES Derivatives: Interest rate swap $ — $ 3,758 $ — $ 3,758 Cash flow hedges — 10,352 — 10,352 Fair value hedges — 888 — 888 Certain assets are measured at fair value on a nonrecurring basis in accordance with U.S. GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements. Impaired loans Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreements will not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Collateral dependent loans are reported at the fair value of the underlying collateral if repayment is solely from the underlying value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Company’s collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser using observable market data. When evaluating the fair value, management may discount the appraisal further if, based on their understanding of the market conditions, it is determined the collateral is further impaired below the appraised value (Level 3). For the periods ending June 30, 2016 and December 31, 2015 , the Level 3 weighted averages related to impaired loans were 3.0% and 7.0% , respectively. The value of business equipment is based upon an outside appraisal, of one year or less, if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Collateral dependent impaired loans allocated to the allowance for loan losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Company’s Consolidated Statements of Income. Other real estate owned OREO is evaluated for impairment at least quarterly by the Bank’s Special Asset Loan Committee and any necessary write downs to fair values are recorded as impairment and included as a component of noninterest expense. Fair values of OREO are carried at fair value less selling costs. Fair value is based upon independent market prices, appraised values of the collateral, or management’s estimation of the value of the collateral. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the foreclosed asset as Level 3 valuation. For the periods ending June 30, 2016 and December 31, 2015 , the Level 3 weighted averages related to OREO were approximately 31.0% and 32.0% , respectively. Total valuation expenses related to OREO properties for the three and six months ended June 30, 2016 and 2015 totaled $274,000 and $400,000 and $710,000 and $1.3 million , respectively. The following tables summarize the Company’s financial assets that were measured at fair value on a nonrecurring basis at June 30, 2016 and December 31, 2015 (dollars in thousands): Fair Value Measurements at June 30, 2016 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Balance ASSETS Impaired loans $ — $ — $ 3,585 $ 3,585 Other real estate owned — — 13,381 13,381 Fair Value Measurements at December 31, 2015 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Balance ASSETS Impaired loans $ — $ — $ 2,214 $ 2,214 Other real estate owned — — 15,299 15,299 ASC 825, Financial Instruments, requires disclosure about fair value of financial instruments for interim periods and excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Cash and cash equivalents For those short-term instruments, the carrying amount is a reasonable estimate of fair value. Held to Maturity Securities The Company’s investment portfolio is primarily valued using fair value measurements that are considered to be Level 2. The Company has contracted with a third party portfolio accounting service vendor for valuation of its securities portfolio. The vendor’s primary source for security valuation is IDC, which evaluates securities based on market data. IDC utilizes evaluated pricing models that vary by asset class and include available trade, bid, and other market information. Generally, the methodology includes broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. The vendor utilizes proprietary valuation matrices for valuing all municipals securities. The initial curves for determining the price, movement, and yield relationships within the municipal matrices are derived from industry benchmark curves or sourced from a municipal trading desk. The securities are further broken down according to issuer, credit support, state of issuance, and rating to incorporate additional spreads to the industry benchmark curves. The Company primarily uses Bloomberg Valuation Service, an independent information source that draws on quantitative models and market data contributed from over 4,000 market participants, to validate third party valuations. Any material differences between valuation sources are researched by further analyzing the various inputs that are utilized by each pricing source. No material differences were identified during the validation as of June 30, 2016 and December 31, 2015 . Loans The fair value of performing loans is estimated by discounting expected future cash flows using a yield curve that is constructed by adding a loan spread to a market yield curve. Loan spreads are based on spreads currently observed in the market for loans of similar type and structure. Fair value for impaired loans and their respective level within the fair value hierarchy, are described in the previous disclosure related to fair value measurements of assets that are measured on a nonrecurring basis. Bank owned life insurance The carrying value of bank owned life insurance approximates fair value. The Company records these policies at their cash surrender value, which is estimated using information provided by insurance carriers. Deposits The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. Borrowings The carrying value of the Company’s repurchase agreements is a reasonable estimate of fair value. Other borrowings are discounted using the current yield curve for the same type of borrowing. For borrowings with embedded optionality, a third party source is used to value the instrument. The Company validates all third party valuations for borrowings with optionality using Bloomberg’s derivative pricing functions. Accrued interest The carrying amounts of accrued interest approximate fair value. The carrying values and estimated fair values of the Company’s financial instruments at June 30, 2016 and December 31, 2015 are as follows (dollars in thousands): Fair Value Measurements at June 30, 2016 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Carrying Value Level 1 Level 2 Level 3 Balance ASSETS Cash and cash equivalents $ 217,034 $ 217,034 $ — $ — $ 217,034 Securities available for sale 949,663 — 949,663 — 949,663 Held to maturity securities 202,917 — 211,949 — 211,949 Restricted stock 62,206 — 62,206 — 62,206 Loans held for sale 38,114 — 38,114 — 38,114 Net loans 5,906,024 — — 5,938,305 5,938,305 Derivatives: Interest rate lock commitments 1,712 — — 1,712 1,712 Interest rate swap 11,948 — 11,948 — 11,948 Cash flow hedges 382 — 382 — 382 Accrued interest receivable 21,664 — 21,664 — 21,664 Bank owned life insurance 176,413 — 176,413 — 176,413 LIABILITIES Deposits $ 6,095,826 $ — $ 6,098,700 $ — $ 6,098,700 Borrowings 952,809 — 932,278 — 932,278 Accrued interest payable 1,595 — 1,595 — 1,595 Derivatives: Interest rate swap 11,948 — 11,948 — 11,948 Cash flow hedges 17,263 — 17,263 — 17,263 Fair value hedges 3,816 — 3,816 — 3,816 Fair Value Measurements at December 31, 2015 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Carrying Value Level 1 Level 2 Level 3 Balance ASSETS Cash and cash equivalents $ 142,660 $ 142,660 $ — $ — $ 142,660 Securities available for sale 903,292 — 903,292 — 903,292 Held to maturity securities 205,374 — 209,437 — 209,437 Restricted stock 51,828 — 51,828 — 51,828 Loans held for sale 36,030 — 36,030 — 36,030 Net loans 5,637,415 — — 5,671,155 5,671,155 Derivatives: Interest rate lock commitments 701 — — 701 701 Interest rate swap 3,758 — 3,758 — 3,758 Cash flow hedges 946 — 946 — 946 Accrued interest receivable 20,760 — 20,760 — 20,760 Bank owned life insurance 173,687 — 173,687 — 173,687 LIABILITIES Deposits $ 5,963,936 $ — $ 5,957,484 $ — $ 5,957,484 Borrowings 680,175 — 659,364 — 659,364 Accrued interest payable 1,578 — 1,578 — 1,578 Derivatives: Interest rate swap 3,758 — 3,758 — 3,758 Cash flow hedges 10,352 — 10,352 — 10,352 Fair value hedges 888 — 888 — 888 The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed using the weighted average number of common shares outstanding during the period, including the effect of dilutive potential common shares outstanding attributable to stock awards. There were approximately 407 and 53,625 shares underlying anti-dilutive awards for the three months ended June 30, 2016 and 2015 , respectively, and there were approximately 1,116 and 56,151 shares underlying anti-dilutive awards for the six months ended June 30, 2016 and 2015 , respectively. Anti-dilutive awards were excluded from the calculation of diluted EPS. The following is a reconciliation of the denominators of the basic and diluted EPS computations for the three and six months ended June 30, 2016 and 2015 (in thousands except per share data): Net Income Available to Common Shareholders (Numerator) Weighted Average Common Shares (Denominator) Per Share Amount Three months ended June 30, 2016 Net income, basic $ 19,337 43,747 $ 0.44 Add: potentially dilutive common shares - stock awards — 77 — Diluted $ 19,337 43,824 $ 0.44 Three months ended June 30, 2015 Net income, basic $ 15,348 45,129 $ 0.34 Add: potentially dilutive common shares - stock awards — 81 — Diluted $ 15,348 45,210 $ 0.34 Six months ended June 30, 2016 Net income, basic $ 36,298 43,999 $ 0.82 Add: potentially dilutive common shares - stock awards — 77 — Diluted $ 36,298 44,076 $ 0.82 Six months ended June 30, 2015 Net income, basic $ 31,049 45,117 $ 0.69 Add: potentially dilutive common shares - stock awards — 82 — Diluted $ 31,049 45,199 $ 0.69 |
SEGMENT REPORTING DISCLOSURES
SEGMENT REPORTING DISCLOSURES | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING DISCLOSURES | SEGMENT REPORTING DISCLOSURES The Company has two reportable segments: a traditional full service community bank segment and a mortgage loan origination business segment. The community bank segment includes one subsidiary bank, the Bank, which provides loan, deposit, investment, and trust services to retail and commercial customers throughout its 120 retail locations in Virginia as of June 30, 2016. The mortgage segment includes UMG, which provides a variety of mortgage loan products principally in Virginia, North Carolina, Maryland, and the Washington D.C. metro area. These loans are originated and sold primarily in the secondary market through purchase commitments from investors, which serves to mitigate the Company’s exposure to interest rate risk. Profit and loss is measured by net income after taxes including realized gains and losses on the Company’s investment portfolio. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Inter-segment transactions are recorded at cost and eliminated as part of the consolidation process. Both of the Company’s reportable segments are service-based. The mortgage business is a primarily fee-based business while the bank is driven principally by net interest income. The bank segment provides a distribution and referral network through its customers for the mortgage loan origination business. The mortgage segment offers a more limited referral network for the bank segment. The community bank segment provides the mortgage segment with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest. The interest rate on the warehouse line of credit for each of the three and six months ended June 30, 2016 and 2015 was the three month LIBOR rate plus 0.15% with no floor. These transactions are eliminated in the consolidation process. During 2015, the mortgage segment began originating loans with the intent that they be held for investment purposes. The community bank segment provides the mortgage segment with the long-term funds needed to originate these loans through a long-term funding facility and charges the mortgage segment interest. The interest charged is determined by the community bank segment based on the cost of funds available to the community bank segment for similar durations of the loans being funded by the mortgage segment. A management fee for operations and administrative support services is charged to all subsidiaries and eliminated in the consolidated totals. Information about reportable segments and reconciliation of such information to the consolidated financial statements for each of the three and six months ended June 30, 2016 and 2015 is as follows (dollars in thousands): UNION BANKSHARES CORPORATION AND SUBSIDIARIES SEGMENT FINANCIAL INFORMATION Community Bank Mortgage Eliminations Consolidated Three Months Ended June 30, 2016 Net interest income $ 65,478 $ 298 $ — $ 65,776 Provision for credit losses 2,260 40 — 2,300 Net interest income after provision for credit losses 63,218 258 — 63,476 Noninterest income 14,940 3,207 (154 ) 17,993 Noninterest expenses 52,766 2,639 (154 ) 55,251 Income before income taxes 25,392 826 — 26,218 Income tax expense 6,594 287 — 6,881 Net income $ 18,798 $ 539 $ — $ 19,337 Total assets $ 8,094,176 $ 75,802 $ (69,417 ) $ 8,100,561 Three Months Ended June 30, 2015 Net interest income $ 63,441 $ 375 $ — $ 63,816 Provision for credit losses 3,700 49 — 3,749 Net interest income after provision for credit losses 59,741 326 — 60,067 Noninterest income 13,523 2,860 (171 ) 16,212 Noninterest expenses 52,365 3,047 (171 ) 55,241 Income before income taxes 20,899 139 — 21,038 Income tax expense 5,646 44 — 5,690 Net income $ 15,253 $ 95 $ — $ 15,348 Total assets $ 7,495,564 $ 55,563 $ (53,421 ) $ 7,497,706 Six Months Ended June 30, 2016 Net interest income $ 128,903 $ 604 $ — $ 129,507 Provision for credit losses 4,760 144 — 4,904 Net interest income after provision for credit losses 124,143 460 — 124,603 Noninterest income 28,548 5,684 (325 ) 33,907 Noninterest expenses 104,610 5,238 (325 ) 109,523 Income before income taxes 48,081 906 — 48,987 Income tax expense 12,376 313 — 12,689 Net income $ 35,705 $ 593 $ — $ 36,298 Total assets $ 8,094,176 $ 75,802 $ (69,417 ) $ 8,100,561 Six Months Ended June 30, 2015 Net interest income $ 125,164 $ 621 $ — $ 125,785 Provision for credit losses 5,450 49 — 5,499 Net interest income after provision for credit losses 119,714 572 — 120,286 Noninterest income 26,371 5,236 (341 ) 31,266 Noninterest expenses 103,337 6,085 (341 ) 109,081 Income (loss) before income taxes 42,748 (277 ) — 42,471 Income tax expense (benefit) 11,527 (105 ) — 11,422 Net income (loss) $ 31,221 $ (172 ) $ — $ 31,049 Total assets $ 7,495,564 $ 55,563 $ (53,421 ) $ 7,497,706 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Business Combinations | Business Combinations On May 31, 2016, the Bank completed its acquisition of ODCM, a Charlottesville, Virginia based registered investment advisor with nearly $300.0 million in assets under management. The acquisition date fair value of consideration transferred totaled $9.1 million , which consisted of $4.1 million cash, $0.5 million stock, and the remainder being contingent on achieving certain performance metrics. The contingent consideration is carried at fair value and is reported as a component of “Other Liabilities” in the Consolidated Balance Sheet. The fair value of this liability will be assessed at each reporting period. In connection with the transaction, the Company recorded $4.1 million in goodwill and $3.8 million of amortizable assets which primarily relate to the value of customer relationships. The Company currently estimates that these other intangibles assets will be amortized over 10 years using a straight-line method. The transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the acquisition date. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition. |
Loans | Loans The Company originates commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by commercial and residential real estate loans (including acquisition and development loans and residential construction loans) throughout its market area. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in those markets, as well as other factors. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for any charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. As of January 1, 2016, the Company enhanced the loan portfolio segmentation to better align with how the Company manages credit risk and to better align with industry practice. Below is a summary of the new loan segmentation. Construction and Land Development – construction loans generally made to commercial and residential builders for specific construction projects. The successful repayment of these types of loans is generally dependent upon (a) a commitment for permanent financing from the Company, or (b) from the sale of the constructed property. These loans carry more risk than both types of commercial real estate term loans due to the dynamics of construction projects, changes in interest rates, the long-term financing market, and state and local government regulations. As in commercial real estate term lending, the Company manages risk by using specific underwriting policies and procedures for these types of loans and by avoiding excessive concentrations to any one business or industry. Also, included in this category are loans generally made to residential home builders to support their lot and home inventory needs. Repayment relies upon the successful performance of the underlying residential real estate project. This type of lending carries a higher level of risk as compared to other commercial lending. This class of lending manages risks related to residential real estate market conditions, a functioning first and secondary market in which to sell residential properties, and the borrower’s ability to manage inventory and run projects. The Company manages this risk by lending to experienced builders and developers, by using specific underwriting policies and procedures for these types of loans, and by avoiding excessive concentrations with any particular customer or geographic region. Commercial Real Estate – Owner Occupied - term loans made to support owner occupied real estate properties that rely upon the successful operation of the business occupying the property for repayment. General market conditions and economic activity may affect these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by avoiding concentrations to any one business or industry. Commercial Real Estate – Non-Owner Occupied - term loans typically made to borrowers to support income producing properties that rely upon the successful operation of the property for repayment. General market conditions and economic activity may impact the performance of these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by diversifying the lending to various lines of businesses, such as retail, office, office warehouse, and hotel as well as avoiding concentrations to any one business or industry. Residential 1-4 Family – loans generally made to both commercial and residential borrowers. Mortgage loan portfolios carry risks associated with the creditworthiness of the borrower or the tenant and changes in loan-to-value ratios. The Company manages these risks through policies and procedures such as limiting loan-to-value ratios at origination, experienced underwriting, requiring standards for appraisers, and not making subprime loans. Multifamily Real Estate – loans made to real estate investors to support permanent financing for multifamily residential income producing properties that rely on the successful operation of the property for repayment. This management mainly involves property maintenance and collection of rents due from tenants. This type of lending carries a lower level of risk as compared to other commercial lending. In addition, underwriting requirements for multifamily properties are stricter than for other non-owner-occupied property types. The Company manages this risk by avoiding concentrations with any particular customer. Commercial and Industrial – loans generally made to support the Company’s borrowers’ need for equipment/vehicle purchases and other short-term or seasonal cash flow needs. Repayment relies upon the successful operation of the business. This type of lending carries a lower level of commercial credit risk as compared to other commercial lending. The Company manages this risk by using general underwriting policies and procedures for these types of loans and by avoiding concentrations to any one business or industry. HELOC – the consumer HELOC portfolio carries risks associated with the creditworthiness of the borrower and changes in loan-to-value ratios. The Company manages these risks through policies and procedures such as limiting loan-to-value ratios at origination, experienced underwriting, requiring standards for appraisers, and not making subprime loans. Auto – the consumer indirect auto lending portfolio generally carries certain risks associated with the values of the collateral that management must mitigate. The Company focuses its indirect auto lending on one to two year old used vehicles where substantial depreciation has already occurred thereby minimizing the risk of significant loss of collateral values in the future. This type of lending places reliance on computer-based loan approval systems to supplement other underwriting standards. Consumer and all other - portfolios carry risks associated with the creditworthiness of the borrower and changes in the economic environment. The Company manages these risks through policies and procedures such as experienced underwriting, maximum debt to income ratios, and minimum borrower credit scores. Also included in this category are loans that generally support small business lines of credit and agricultural lending neither of which are a material source of business for the Company. |
Affordable Housing Entities | Affordable Housing Entities The Company invests in private investment funds that make equity investments in multifamily affordable housing properties that provide affordable housing tax credits for these investments. The activities of these entities are financed with a combination of invested equity capital and debt. |
Adoption of New Accounting Standards and Recent Accounting Pronouncements | Adoption of New Accounting Standards In February 2015, the FASB issued revised guidance to simplify the consolidation assessment required to evaluate whether organizations should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures. The guidance also removed the indefinite deferral of specialized guidance for certain investment funds. The Company adopted ASU No. 2015-02, “ Amendments to the Consolidation Analysis ” during the first quarter of 2016. The adoption of ASU 2015-02 did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements In January 2016, the FASB issued ASU No. 2016-01, “ Recognition and Measurement of Financial Assets and Financial Liabilities .” This ASU requires an entity to: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in OCI the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. The ASU provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes. The ASU also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is only permitted for the provision related to instrument-specific credit risk. The Company is currently assessing the impact ASU 2016-01 will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842). ” This ASU requires lessees to put most leases on their balance sheets but recognize expenses in the income statement in a manner similar to today’s accounting. The guidance also eliminates the real estate-specific provisions and changes the guidance on sale-leaseback transactions, initial direct costs and lease executory costs for all entities. For lessors, the standard modifies the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company is currently assessing the impact ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-05, “ Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships .” This ASU clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument in an existing hedging relationship would not, in and of itself, be considered a termination of the derivative instrument or a change in a critical term of the hedging relationship. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-05 to have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-06, “ Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments .” This ASU clarifies that in assessing whether an embedded contingent put or call option is clearly and closely related to the debt host, an entity is required to perform only the four-step decision sequence in ASC 815-15-25-42 (as amended by the ASU). The entity does not have to separately assess whether the event that triggers its ability to exercise the contingent option is itself indexed only to interest rates or credit risk. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-06 to have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, “ Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting .” This ASU simplifies the equity method of accounting by eliminating the requirement to retrospectively apply the equity method to an investment that subsequently qualifies for such accounting as a result of an increase in the level of ownership interest or degree of influence. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively and early adoption is permitted. The Company does not expect the adoption of ASU 2016-07 to have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, “ Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) .” This ASU amends the principal-versus-agent implementation guidance and illustrations in the FASB’s new revenue standard (ASU 2014-09) and clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. The ASU has the same effective date as the new revenue standard (as amended by the one-year deferral and the early adoption provisions in ASU 2015-14 delaying the effective date to fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017). In addition, entities are required to adopt the ASU by using the same transition method they used to adopt the new revenue standard. The Company is currently assessing the impact ASU 2016-08 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “ Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting .” This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted; however, if the Company elects to early adopt, then all amendments must be adopted in the same period. The Company is currently assessing the impact ASU 2016-09 will have on its consolidated financial statements. In April 2016, the FASB issued ASU No. 2016-10, “ Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing .” This ASU amends certain aspects of the FASB’s new revenue standard, specifically the standard’s guidance on identifying performance obligations and the implementation guidance on licensing. The amendments in this update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers , which is not yet effective. The ASU has the same effective date as the new revenue standard (as amended by the one-year deferral and the early adoption provisions in ASU 2015-14). The Company is currently assessing the impact ASU 2016-10 will have on its consolidated financial statements. In May 2016, the FASB issued ASU No. 2016-12, “ Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. ” This ASU amends certain aspects of the FASB's new revenue standard to reduce the potential for diversity in practice at the initial application of Topic 606 by entities with transactions that fall into the scope of this guidance, as well as reducing the cost and complexity of applying Topic 606 at the transition date and on a continual basis. These amendments affect ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , that is not yet effective. The Company is currently assessing the impact ASU 2016-12 will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ” This ASU updates the existing guidance to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and required consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This amendment is effective for fiscal years beginning after December 15, 2019. The Company is currently assessing the impact ASU 2016-13 will have on its consolidated financial statements. |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Gross Realized Gain and Losses on the Sale of Securities | The following table presents the gross realized gains and losses on the sale of securities available for sale and the proceeds from the sale of securities during the three and six months ended June 30, 2016 and 2015 (dollars in thousands). The Company did not sell any investment securities that are held to maturity. Three Months Ended Six Months Ended Realized gains (losses): Gross realized gains $ 3 $ 242 Gross realized losses — (96 ) Net realized gains $ 3 $ 146 Proceeds from sales of securities $ 892 $ 15,424 Three Months Ended Six Months Ended Realized gains (losses): Gross realized gains $ 491 $ 684 Gross realized losses (87 ) (87 ) Net realized gains $ 404 $ 597 Proceeds from sales of securities $ 45,658 $ 58,157 |
Available-for-sale Securities [Member] | |
Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Investment Securities | Available for Sale The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of June 30, 2016 and December 31, 2015 are summarized as follows (dollars in thousands): Amortized Gross Unrealized Estimated Cost Gains (Losses) Fair Value June 30, 2016 Obligations of states and political subdivisions $ 258,968 $ 13,848 $ (30 ) $ 272,786 Corporate bonds 109,757 506 (1,684 ) 108,579 Mortgage-backed securities 545,428 10,165 (629 ) 554,964 Other securities 13,285 49 — 13,334 Total available for sale securities $ 927,438 $ 24,568 $ (2,343 ) $ 949,663 December 31, 2015 Obligations of states and political subdivisions $ 257,740 $ 10,479 $ (140 ) $ 268,079 Corporate bonds 77,628 55 (1,704 ) 75,979 Mortgage-backed securities 544,823 6,127 (2,779 ) 548,171 Other securities 11,085 — (22 ) 11,063 Total available for sale securities $ 891,276 $ 16,661 $ (4,645 ) $ 903,292 |
Schedule of Gross Unrealized Losses and Fair Value of Investments | The following table shows the gross unrealized losses and fair value (in thousands) of the Company’s available for sale investments with unrealized losses that are not deemed to be other-than-temporarily impaired as of June 30, 2016 and December 31, 2015 . These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. Less than 12 months More than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2016 Obligations of states and political subdivisions $ — $ — $ 631 $ (30 ) $ 631 $ (30 ) Mortgage-backed securities 67,843 (266 ) 42,840 (363 ) 110,683 (629 ) Corporate bonds and other securities 11,242 (331 ) 36,250 (1,353 ) 47,492 (1,684 ) Total available for sale $ 79,085 $ (597 ) $ 79,721 $ (1,746 ) $ 158,806 $ (2,343 ) December 31, 2015 Obligations of states and political subdivisions $ 8,114 $ (70 ) $ 4,950 $ (70 ) $ 13,064 $ (140 ) Mortgage-backed securities 287,113 (2,442 ) 21,660 (337 ) 308,773 (2,779 ) Corporate bonds and other securities 36,157 (751 ) 19,558 (975 ) 55,715 (1,726 ) Total available for sale $ 331,384 $ (3,263 ) $ 46,168 $ (1,382 ) $ 377,552 $ (4,645 ) |
Schedule of Amortized Cost and Estimated Fair Value of Securities | The following table presents the amortized cost and estimated fair value of available for sale securities as of June 30, 2016 and December 31, 2015 , by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2016 December 31, 2015 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 11,376 $ 11,512 $ 8,380 $ 8,370 Due after one year through five years 101,658 104,839 65,326 66,996 Due after five years through ten years 318,124 326,477 296,864 301,920 Due after ten years 496,280 506,835 520,706 526,006 Total securities available for sale $ 927,438 $ 949,663 $ 891,276 $ 903,292 |
Schedule of Securities Pledged to Secure Public Deposits, Repurchase Agreements, and for Other Purposes | The following table presents the estimated fair value of available for sale securities which were pledged to secure public deposits, repurchase agreements, and for other purposes as permitted or required by law as of June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, 2016 December 31, 2015 Public deposits $ 183,813 $ 184,635 Repurchase agreements 122,562 126,120 Other purposes (1) 23,540 26,546 Total pledged securities $ 329,915 $ 337,301 (1) The "Other purposes" category consists of borrowings, derivatives, and accounts held at the Bank. |
Held-to-maturity Securities [Member] | |
Schedule of Amortized Cost and Estimated Fair Value of Securities | The following table presents the amortized cost and estimated fair value of held to maturity securities as of June 30, 2016 and December 31, 2015 , by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2016 December 31, 2015 Carrying Value (1) Estimated Fair Value Carrying Value Estimated Fair Value Due in one year or less $ 857 $ 857 $ 1,488 $ 1,491 Due after one year through five years 18,122 18,564 4,294 4,348 Due after five years through ten years 45,802 47,469 44,736 45,501 Due after ten years 138,136 145,059 154,856 158,097 Total securities held to maturity $ 202,917 $ 211,949 $ 205,374 $ 209,437 (1) The carrying value includes $5.9 million of net unrealized gains present at the time of transfer from available for sale securities, net of any accretion. |
Schedule of Securities Pledged to Secure Public Deposits, Repurchase Agreements, and for Other Purposes | The following table presents the estimated fair value of held to maturity securities which were pledged to secure public deposits as permitted or required by law as of June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, 2016 December 31, 2015 Public deposits $ 211,949 $ 207,140 Total pledged securities $ 211,949 $ 207,140 |
Schedule of Carrying Values, Gross Unrealized Gains and Losses and Estimated Fair Value of Securities | The carrying value, gross unrealized gains and losses, and estimated fair values of securities held to maturity as of June 30, 2016 and December 31, 2015 are summarized as follows (dollars in thousands): Carrying Gross Unrealized Estimated Value Gains (Losses) Fair Value June 30, 2016 Obligations of states and political subdivisions (1) $ 202,917 $ 9,153 $ (121 ) $ 211,949 December 31, 2015 Obligations of states and political subdivisions $ 205,374 $ 5,748 $ (1,685 ) $ 209,437 (1) The carrying value includes $5.9 million of net unrealized gains present at the time of transfer from available for sale securities, net of any accretion. |
Gross Unrealized Losses and Fair Value of Securities | The following table shows the gross unrealized losses and fair value (in thousands) of the Company’s held to maturity securities with unrealized losses that are not deemed to be other-than-temporarily impaired as of June 30, 2016 and December 31, 2015 . These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. Less than 12 months More than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2016 Obligations of states and political subdivisions $ — $ — $ 1,148 $ (121 ) $ 1,148 $ (121 ) December 31, 2015 Obligations of states and political subdivisions $ 7,056 $ (1,685 ) $ — $ — $ 7,056 $ (1,685 ) |
LOANS AND ALLOWANCE FOR LOAN 23
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans Stated at Face Amount, Net of Unearned Income | Loans are stated at their face amount, net of deferred fees and costs, and consist of the following at June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, 2016 December 31, 2015 Construction and Land Development $ 765,997 $ 749,720 Commercial Real Estate - Owner Occupied 831,880 860,086 Commercial Real Estate - Non-Owner Occupied 1,370,745 1,270,480 Multifamily Real Estate 337,723 322,528 Commercial & Industrial 469,054 435,365 Residential 1-4 Family 992,457 978,469 Auto 244,575 234,061 HELOC 519,196 516,726 Consumer and all other 409,471 304,027 Total loans held for investment, net (1) $ 5,941,098 $ 5,671,462 (1) Loans, as presented, are net of deferred fees and costs totaling $1.9 million and $3.0 million as of June 30, 2016 and December 31, 2015 , respectively. |
Summary of Aging of the Loan Portfolio by Class | The following table shows the aging of the Company’s loan portfolio, by segment, at June 30, 2016 (dollars in thousands): 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days and still Accruing PCI Nonaccrual Current Total Loans Construction and Land Development $ 402 $ 1,177 $ 116 $ 5,013 $ 1,604 $ 757,685 $ 765,997 Commercial Real Estate - Owner Occupied 912 — 439 20,692 1,661 808,176 831,880 Commercial Real Estate - Non-Owner Occupied 267 — 723 18,297 — 1,351,458 1,370,745 Multifamily Real Estate — — — 2,092 — 335,631 337,723 Commercial & Industrial 2,464 62 117 1,354 263 464,794 469,054 Residential 1-4 Family 5,476 5,033 1,302 17,805 5,448 957,393 992,457 Auto 1,282 377 144 — 140 242,632 244,575 HELOC 1,347 1,228 642 1,517 1,495 512,967 519,196 Consumer and all other 1,364 412 50 400 250 406,995 409,471 Total Loans Held For Investment $ 13,514 $ 8,289 $ 3,533 $ 67,170 $ 10,861 $ 5,837,731 $ 5,941,098 The following table shows the aging of the Company’s loan portfolio, by segment, at December 31, 2015 (dollars in thousands): 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days and still Accruing PCI Nonaccrual Current Total Loans Construction and Land Development $ 3,155 $ 380 $ 128 $ 5,986 $ 2,113 $ 737,958 $ 749,720 Commercial Real Estate - Owner Occupied 1,714 118 103 27,388 3,904 826,859 860,086 Commercial Real Estate - Non-Owner Occupied 771 — 723 13,519 100 1,255,367 1,270,480 Multifamily Real Estate — — 272 1,555 — 320,701 322,528 Commercial & Industrial 1,056 27 124 1,813 429 431,916 435,365 Residential 1-4 Family 15,023 6,774 3,638 21,159 3,563 928,312 978,469 Auto 2,312 233 60 — 192 231,264 234,061 HELOC 2,589 1,112 762 1,791 1,348 509,124 516,726 Consumer and all other 1,167 689 19 526 287 301,339 304,027 Total Loans Held For Investment $ 27,787 $ 9,333 $ 5,829 $ 73,737 $ 11,936 $ 5,542,840 $ 5,671,462 |
Impaired Loans by Class | The Company measures the amount of impairment by evaluating loans either in their collective homogeneous pools or individually. The following table shows the Company’s impaired loans, excluding PCI loans related to the StellarOne acquisition, by segment at June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, 2016 December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Loans without a specific allowance Construction and Land Development $ 29,877 $ 30,354 $ — $ 33,250 $ 33,731 $ — Commercial Real Estate - Owner Occupied 11,201 11,317 — 7,781 8,983 — Commercial Real Estate - Non-Owner Occupied 3,993 3,993 — 5,328 5,325 — Multifamily Real Estate 3,777 3,777 — 3,828 3,828 — Commercial & Industrial 1,154 1,572 — 711 951 — Residential 1-4 Family 10,065 11,024 — 7,564 8,829 — Auto — — — 7 7 — HELOC 1,900 2,046 — 1,786 2,028 — Consumer and all other 247 297 — 211 211 — Total impaired loans without a specific allowance $ 62,214 $ 64,380 $ — $ 60,466 $ 63,893 $ — Loans with a specific allowance Construction and Land Development $ 1,833 $ 2,234 $ 64 $ 3,167 $ 3,218 $ 538 Commercial Real Estate - Owner Occupied 2,291 2,320 49 3,237 3,239 358 Commercial Real Estate - Non-Owner Occupied 267 267 1 907 907 75 Commercial & Industrial 1,334 1,456 47 1,952 1,949 441 Residential 1-4 Family 3,880 3,978 345 6,065 6,153 418 Auto 140 188 1 192 199 1 HELOC 437 491 81 769 925 76 Consumer and all other 79 446 1 363 512 95 Total impaired loans with a specific allowance $ 10,261 $ 11,380 $ 589 $ 16,652 $ 17,102 $ 2,002 Total impaired loans $ 72,475 $ 75,760 $ 589 $ 77,118 $ 80,995 $ 2,002 The following tables show the average recorded investment and interest income recognized for the Company’s impaired loans, excluding PCI loans related to the StellarOne acquisition, by segment for the three and six months ended June 30, 2016 and 2015 (dollars in thousands): Three Months Ended Six Months Ended Average Investment Interest Income Recognized Average Investment Interest Income Recognized Construction and Land Development $ 30,524 $ 495 $ 30,174 $ 962 Commercial Real Estate - Owner Occupied 13,567 148 13,719 292 Commercial Real Estate - Non-Owner Occupied 4,215 43 4,216 79 Multifamily Real Estate 3,791 60 3,804 120 Commercial & Industrial 2,622 31 2,861 61 Residential 1-4 Family 14,189 90 14,365 183 Auto 162 — 183 — HELOC 2,492 11 2,519 29 Consumer and all other 374 1 572 4 Total impaired loans without a specific allowance $ 71,936 $ 879 $ 72,413 $ 1,730 Three Months Ended Six Months Ended Average Investment Interest Income Recognized Average Investment Interest Income Recognized Construction and Land Development $ 40,026 $ 838 $ 48,772 $ 1,366 Commercial Real Estate - Owner Occupied 17,871 169 18,007 341 Commercial Real Estate - Non-Owner Occupied 8,736 125 8,750 181 Multifamily Real Estate 4,597 85 4,600 147 Commercial & Industrial 4,525 60 4,659 102 Residential 1-4 Family 10,924 105 10,989 202 Auto 1 — 1 — HELOC 1,240 6 1,244 11 Consumer and all other 460 4 518 9 Total impaired loans without a specific allowance $ 88,380 $ 1,392 $ 97,540 $ 2,359 |
Summary of Modified Loans that Continue to Accrue Interest Under the Terms of Restructuring Agreement | The following table provides a summary, by segment, of modified loans that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and modified loans that have been placed on nonaccrual status, which are considered to be nonperforming, as of June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, 2016 December 31, 2015 No. of Loans Recorded Investment Outstanding Commitment No. of Loans Recorded Investment Outstanding Commitment Performing Construction and Land Development 5 $ 3,788 $ — 6 $ 3,349 $ — Commercial Real Estate - Owner Occupied 5 2,091 — 5 1,530 — Commercial Real Estate - Non-Owner Occupied 2 2,390 — 2 2,390 — Commercial & Industrial 4 218 — 5 261 — Residential 1-4 Family 27 3,323 — 27 3,173 — Consumer and all other 1 75 — 1 77 — Total performing 44 $ 11,885 $ — 46 $ 10,780 $ — Nonperforming Construction and Land Development 2 $ 215 $ — 2 $ 321 $ — Commercial Real Estate - Owner Occupied 2 167 — 1 137 — Commercial & Industrial 1 135 — 1 2 — Residential 1-4 Family 7 1,141 — 6 1,142 — HELOC — — — 1 319 — Total nonperforming 12 $ 1,658 $ — 11 $ 1,921 $ — Total performing and nonperforming 56 $ 13,543 $ — 57 $ 12,701 $ — |
Schedule of TDR by Class and Modification Type | The following table shows, by segment and modification type, TDRs that occurred during the three and six months ended June 30, 2016 (dollars in thousands): Three Months Ended Six Months Ended No. of Loans Recorded Investment at Period End No. of Loans Recorded Investment at Period End Term modification, at a market rate Construction and Land Development 1 $ 1,193 1 $ 1,193 Commercial Real Estate - Owner Occupied 1 38 2 743 Residential 1-4 Family 1 100 2 476 Total loan term extended at a market rate 3 $ 1,331 5 $ 2,412 Term modification, below market rate Residential 1-4 Family 1 $ 37 1 $ 37 Total loan term extended at a below market rate 1 $ 37 1 $ 37 Interest rate modification, below market rate Commercial & Industrial 1 $ 135 1 $ 135 Total interest only at below market rate of interest 1 $ 135 1 $ 135 Total 5 $ 1,503 7 $ 2,584 The following table shows, by segment and modification type, TDRs that occurred during the three and six months ended June 30, 2015 (dollars in thousands): Three Months Ended Six Months Ended No. of Recorded No. of Recorded Term modification, at a market rate Commercial Real Estate - Owner Occupied 1 $ 120 1 $ 120 Commercial & Industrial — — 1 18 Total loan term extended at a market rate 1 120 2 138 Term modification, below market rate Commercial Real Estate - Owner Occupied 1 $ 873 1 $ 873 Total loan term extended at a below market rate 1 $ 873 1 $ 873 Total 2 $ 993 3 $ 1,011 |
Allowance for Loan Loss Activity, by Portfolio Segment, Balances for Allowance for Credit Losses, and Loans Based on Impairment Methodology | The following table shows the allowance for loan loss activity, balances for allowance for loan losses, and loan balances based on impairment methodology by segment for the six months ended and as of June 30, 2016 . The table below includes the provision for loan losses. As discussed in Note 1 “Accounting Policies,” the Company enhanced its loan segmentation for purposes of the allowance calculation as well as its disclosures. The impact of this enhancement is reflected in the provision amounts in the table below. In addition, a $100,000 provision was recognized during the six months ended June 30, 2016 for unfunded loan commitments for which the reserves are recorded as a component of “Other Liabilities” on the Company’s Consolidated Balance Sheets. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands): Allowance for loan losses Balance, beginning of the year Recoveries credited to allowance Loans charged off Provision charged to operations Balance, end of period Construction and Land Development $ 6,040 $ 97 $ (859 ) $ 5,030 $ 10,308 Commercial Real Estate - Owner Occupied 4,614 62 (772 ) 129 4,033 Commercial Real Estate - Non-Owner Occupied 6,929 — — (1,536 ) 5,393 Multifamily Real Estate 1,606 — — (697 ) 909 Commercial & Industrial 3,163 355 (1,285 ) 1,793 4,026 Residential 1-4 Family 5,414 381 (295 ) 600 6,100 Auto 1,703 131 (525 ) (470 ) 839 HELOC 2,934 132 (800 ) (948 ) 1,318 Consumer and all other 1,644 330 (729 ) 903 2,148 Total $ 34,047 $ 1,488 $ (5,265 ) $ 4,804 $ 35,074 Loans individually evaluated for impairment Loans collectively evaluated for impairment Loans acquired with deteriorated credit quality Total Loans ALL Loans ALL Loans ALL Loans ALL Construction and Land Development $ 31,710 $ 64 $ 729,274 $ 10,244 $ 5,013 $ — $ 765,997 $ 10,308 Commercial Real Estate - Owner Occupied 13,492 49 797,696 3,984 20,692 — 831,880 4,033 Commercial Real Estate - Non-Owner Occupied 4,260 1 1,348,188 5,392 18,297 — 1,370,745 5,393 Multifamily Real Estate 3,777 — 331,854 909 2,092 — 337,723 909 Commercial & Industrial 2,488 47 465,212 3,979 1,354 — 469,054 4,026 Residential 1-4 Family 13,945 345 960,707 5,755 17,805 — 992,457 6,100 Auto 140 1 244,435 838 — — 244,575 839 HELOC 2,337 81 515,342 1,237 1,517 — 519,196 1,318 Consumer and all other 326 1 408,745 2,147 400 — 409,471 2,148 Total loans held for investment, net $ 72,475 $ 589 $ 5,801,453 $ 34,485 $ 67,170 $ — $ 5,941,098 $ 35,074 The following table shows the allowance for loan loss activity, balances for allowance for loan losses, and loan balances based on impairment methodology by segment for the six months ended and as of June 30, 2015 . In addition, a $ 200,000 provision was recognized during the six months ended June 30, 2015 for unfunded loan commitments. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands): Allowance for loan losses Balance, beginning of the year Recoveries credited to allowance Loans charged off Provision charged to operations Balance, end of period Construction and Land Development $ 4,856 $ 345 $ (68 ) $ (205 ) $ 4,928 Commercial Real Estate - Owner Occupied 4,640 8 (481 ) 697 4,864 Commercial Real Estate - Non-Owner Occupied 7,256 55 (2,765 ) 1,760 6,306 Multifamily Real Estate 1,374 — — 261 1,635 Commercial & Industrial 2,610 217 (1,693 ) 1,958 3,092 Residential 1-4 Family 5,607 469 (715 ) (75 ) 5,286 Auto 1,297 162 (382 ) 318 1,395 HELOC 2,675 146 (288 ) 179 2,712 Consumer and all other 2,069 294 (643 ) 406 2,126 Total $ 32,384 $ 1,696 $ (7,035 ) $ 5,299 $ 32,344 Loans individually evaluated for impairment Loans collectively evaluated for impairment Loans acquired with deteriorated credit quality Total Loans ALL Loans ALL Loans ALL Loans ALL Construction and Land Development $ 48,184 $ 145 $ 614,653 $ 4,783 $ 8,397 $ — $ 671,234 $ 4,928 Commercial Real Estate - Owner Occupied 18,079 657 826,665 4,207 29,838 — 874,582 4,864 Commercial Real Estate - Non-Owner Occupied 8,438 81 1,192,226 6,225 16,982 — 1,217,646 6,306 Multifamily Real Estate 4,621 — 308,849 1,635 3,004 — 316,474 1,635 Commercial & Industrial 4,427 460 418,826 2,632 2,940 — 426,193 3,092 Residential 1-4 Family 10,024 256 957,411 5,030 24,157 — 991,592 5,286 Auto — — 216,420 1,395 — — 216,420 1,395 HELOC 1,058 4 509,225 2,708 1,840 — 512,123 2,712 Consumer and all other 384 7 283,054 2,119 683 — 284,121 2,126 Total loans held for investment, net $ 95,215 $ 1,610 $ 5,327,329 $ 30,734 $ 87,841 $ — $ 5,510,385 $ 32,344 |
Loans Receivables Related Risk Rating | The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of June 30, 2016 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 684,002 $ 47,592 $ 29,274 $ 116 $ 760,984 Commercial Real Estate - Owner Occupied 779,574 25,352 6,262 — 811,188 Commercial Real Estate - Non-Owner Occupied 1,317,192 30,997 4,259 — 1,352,448 Multifamily Real Estate 324,718 7,136 3,777 — 335,631 Commercial & Industrial 449,708 15,953 2,039 — 467,700 Residential 1-4 Family 943,154 22,467 6,876 2,155 974,652 Auto 242,596 1,698 103 178 244,575 HELOC 511,936 3,718 1,438 587 517,679 Consumer and all other 405,742 3,083 37 209 409,071 Total $ 5,658,622 $ 157,996 $ 54,065 $ 3,245 $ 5,873,928 The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of December 31, 2015 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 663,067 $ 52,650 $ 27,980 $ 37 $ 743,734 Commercial Real Estate - Owner Occupied 800,979 20,856 8,931 1,932 832,698 Commercial Real Estate - Non-Owner Occupied 1,228,956 22,341 5,664 — 1,256,961 Multifamily Real Estate 315,128 2,017 3,828 — 320,973 Commercial & Industrial 414,333 16,724 2,396 99 433,552 Residential 1-4 Family 912,839 34,728 8,037 1,706 957,310 Auto 230,670 3,109 194 88 234,061 HELOC 507,514 4,801 1,611 1,009 514,935 Consumer and all other 299,014 3,996 231 260 303,501 Total $ 5,372,500 $ 161,222 $ 58,872 $ 5,131 $ 5,597,725 |
Schedule of Acquired Loan Portfolio and Accretable Yield | The following shows changes in the accretable yield for loans accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality, for the periods presented (dollars in thousands): For the Six Months Ended 2016 2015 Balance at beginning of period $ 22,139 $ 28,956 Additions — — Accretion (2,792 ) (3,106 ) Reclass of nonaccretable difference due to improvement in expected cash flows 3,450 2,976 Other, net (1) (2,139 ) (4,784 ) Balance at end of period $ 20,658 $ 24,042 (1) This line item represents changes in the cash flows expected to be collected due to the impact of non-credit changes such as prepayment assumptions, changes in interest rates on variable rate PCI loans, and discounted payoffs that occurred in the quarter. |
Purchased Impaired [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Summary of Aging of the Loan Portfolio by Class | The following table shows the PCI loan portfolios, by segment and their delinquency status, at June 30, 2016 (dollars in thousands): 30-89 Days Past Due Greater than 90 Days Current Total Construction and Land Development $ 3 $ 361 $ 4,649 $ 5,013 Commercial Real Estate - Owner Occupied 1,098 1,495 18,099 20,692 Commercial Real Estate - Non-Owner Occupied 795 171 17,331 18,297 Multifamily Real Estate — — 2,092 2,092 Commercial & Industrial 149 — 1,205 1,354 Residential 1-4 Family 1,014 1,213 15,578 17,805 HELOC 137 510 870 1,517 Consumer and all other — — 400 400 Total $ 3,196 $ 3,750 $ 60,224 $ 67,170 The following table shows the PCI loan portfolios, by segment and their delinquency status, at December 31, 2015 (dollars in thousands): 30-89 Days Past Due Greater than 90 Days Current Total Construction and Land Development $ 369 $ 241 $ 5,376 $ 5,986 Commercial Real Estate - Owner Occupied 1,139 1,412 24,837 27,388 Commercial Real Estate - Non-Owner Occupied 755 202 12,562 13,519 Multifamily Real Estate — — 1,555 1,555 Commercial & Industrial 209 21 1,583 1,813 Residential 1-4 Family 2,143 1,923 17,093 21,159 HELOC 410 458 923 1,791 Consumer and all other — — 526 526 Total $ 5,025 $ 4,257 $ 64,455 $ 73,737 |
Loans Receivables Related Risk Rating | The following table shows the recorded investment in only PCI loans by segment with their related risk level as of June 30, 2016 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 1,071 $ 2,432 $ 1,269 $ 241 $ 5,013 Commercial Real Estate - Owner Occupied 5,407 9,813 5,472 — 20,692 Commercial Real Estate - Non-Owner Occupied 5,335 12,400 562 — 18,297 Multifamily Real Estate 350 1,742 — — 2,092 Commercial & Industrial 104 434 816 — 1,354 Residential 1-4 Family 8,677 5,224 3,285 619 17,805 HELOC 861 146 79 431 1,517 Consumer and all other 181 195 24 — 400 Total $ 21,986 $ 32,386 $ 11,507 $ 1,291 $ 67,170 The following table shows the recorded investment in only PCI loans by segment with their related risk level as of December 31, 2015 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 2,059 $ 1,778 $ 1,908 $ 241 $ 5,986 Commercial Real Estate - Owner Occupied 5,260 15,530 6,598 — 27,388 Commercial Real Estate - Non-Owner Occupied 4,442 7,827 1,250 — 13,519 Multifamily Real Estate 356 1,199 — — 1,555 Commercial & Industrial 144 359 1,289 21 1,813 Residential 1-4 Family 9,098 6,380 4,605 1,076 21,159 HELOC 923 410 20 438 1,791 Consumer and all other 57 379 90 — 526 Total $ 22,339 $ 33,862 $ 15,760 $ 1,776 $ 73,737 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Estimated Remaining Amortization Expense of Core Deposit Intangibles | As of June 30, 2016 , the estimated remaining amortization expense of core deposit intangibles and other amortizable intangible assets is as follows (dollars in thousands): For the remaining six months of 2016 $ 3,495 For the year ending December 31, 2017 5,966 For the year ending December 31, 2018 4,520 For the year ending December 31, 2019 3,469 For the year ending December 31, 2020 2,404 For the year ending December 31, 2021 1,411 Thereafter 2,184 Total estimated amortization expense $ 23,449 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Total short-term borrowings consist of the following as of June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, December 31, Securities sold under agreements to repurchase $ 121,262 $ 84,977 Other short-term borrowings 557,000 304,000 Total short-term borrowings $ 678,262 $ 388,977 Maximum month-end outstanding balance $ 678,262 $ 445,761 Average outstanding balance during the period 564,443 379,783 Average interest rate during the period 0.47 % 0.25 % Average interest rate at end of period 0.48 % 0.27 % Other short-term borrowings: Federal funds purchased $ — $ — FHLB $ 541,000 $ 304,000 Other lines of credit 16,000 — |
Trust Preferred Capital Notes Qualify for Tier 1 Capital | The trust preferred capital notes currently qualify for Tier 1 capital of the Company for regulatory purposes. Trust Preferred Capital Securities (1) Investment (1) Spread to 3-Month LIBOR Rate Maturity Trust Preferred Capital Note - Statutory Trust I $ 22,500,000 $ 696,000 2.75 % 3.40 % 6/17/2034 Trust Preferred Capital Note - Statutory Trust II 36,000,000 1,114,000 1.40 % 2.05 % 6/15/2036 VFG Limited Liability Trust I Indenture 20,000,000 619,000 2.73 % 3.38 % 3/18/2034 FNB Statutory Trust II Indenture 12,000,000 372,000 3.10 % 3.75 % 6/26/2033 Total $ 90,500,000 $ 2,801,000 (1)The total of the trust preferred capital securities and investments in the respective trusts represents the principal asset of the Company's junior subordinated debt securities with like maturities and like interest rates to the capital securities. The Company's investment in the trusts is reported in "Other Assets" within the Consolidated Balance Sheets. |
Advances from the FHLB | As of June 30, 2016 , the Company had long-term advances from the FHLB consisting of the following (dollars in thousands): Long-term Type Spread to 3-Month LIBOR Interest Rate Maturity Date Advance Amount Adjustable Rate Credit 0.44 % 1.09 % 8/23/2022 $ 55,000 Adjustable Rate Credit 0.45 % 1.11 % 11/23/2022 65,000 Adjustable Rate Credit 0.45 % 1.11 % 11/23/2022 10,000 Adjustable Rate Credit 0.45 % 1.11 % 11/23/2022 10,000 Fixed Rate — 3.62 % 11/28/2017 10,000 Fixed Rate — 3.75 % 7/30/2018 5,000 Fixed Rate — 3.97 % 7/30/2018 5,000 Fixed Rate Hybrid — 2.11 % 10/5/2016 25,000 Fixed Rate Hybrid — 0.91 % 7/25/2016 15,000 $ 200,000 As of December 31, 2015 , the Company had long-term advances from the FHLB consisting of the following (dollars in thousands): Long-term Type Spread to 3-Month LIBOR Interest Rate Maturity Date Advance Amount Adjustable Rate Credit 0.44 % 1.05 % 8/23/2022 $ 55,000 Adjustable Rate Credit 0.45 % 1.07 % 11/23/2022 65,000 Adjustable Rate Credit 0.45 % 1.07 % 11/23/2022 10,000 Adjustable Rate Credit 0.45 % 1.07 % 11/23/2022 10,000 Fixed Rate — 3.62 % 11/28/2017 10,000 Fixed Rate — 3.75 % 7/30/2018 5,000 Fixed Rate — 3.97 % 7/30/2018 5,000 Fixed Rate Hybrid — 2.11 % 10/5/2016 25,000 Fixed Rate Hybrid — 0.91 % 7/25/2016 15,000 $ 200,000 |
Contractual Maturities of Long-Term Debt | As of June 30, 2016 , the contractual maturities of long-term debt are as follows for the years ending (dollars in thousands): Trust Preferred Capital Notes FHLB Advances Fair Value Premium (Discount) Prepayment Penalty Total Long-term Borrowings For the remaining six months of 2016 $ — $ 40,000 $ 190 $ (952 ) $ 39,238 2017 — 10,000 170 (1,922 ) 8,248 2018 — 10,000 (143 ) (1,970 ) 7,887 2019 — — (286 ) (2,018 ) (2,304 ) 2020 — — (301 ) (2,074 ) (2,375 ) 2021 — — (316 ) (2,119 ) (2,435 ) Thereafter 93,301 140,000 (5,306 ) (1,707 ) 226,288 Total Long-term borrowings $ 93,301 $ 200,000 $ (5,992 ) $ (12,762 ) $ 274,547 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Balances of Commitments and Contingencies | The following table presents the balances of commitments and contingencies (dollars in thousands): June 30, 2016 December 31, 2015 Commitments with off-balance sheet risk: Commitments to extend credit (1) $ 1,606,131 $ 1,557,350 Standby letters of credit 80,593 139,371 Mortgage loan rate lock commitments 71,861 50,369 Total commitments with off-balance sheet risk $ 1,758,585 $ 1,747,090 Commitments with balance sheet risk: Loans held for sale $ 38,114 $ 36,030 Total other commitments $ 1,796,699 $ 1,783,120 (1) Includes unfunded overdraft protection. |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of the Derivatives | The following table summarizes key elements of the Company’s derivative instruments as of June 30, 2016 and December 31, 2015 , segregated by derivatives that are considered accounting hedges and those that are not (dollars in thousands): June 30, 2016 December 31, 2015 Derivative (2) Derivative (2) Notional or Contractual Amount (1) Assets Liabilities Collateral Pledged (3) Notional or Contractual Amount (1) Assets Liabilities Collateral Pledged (3) Derivatives designated as accounting hedges: Interest rate contracts: Cash flow hedges $ 220,500 $ 382 $ 17,263 $ 21,774 $ 263,000 $ 946 $ 10,352 $ 14,449 Fair value hedges 43,845 — 3,816 — 61,150 — 888 — Derivatives not designated as accounting hedges: Loan Swaps (4) Pay fixed - receive floating interest rate swaps 218,614 11,948 — — 138,969 3,758 — — Pay floating - receive fixed interest rate swaps 218,614 — 11,948 15,885 138,969 — 3,758 5,983 Other contracts: Interest rate lock commitments 71,861 1,712 — — 50,369 701 — — (1) Notional amounts are not recorded on the balance sheet and are generally used only as a basis on which interest and other payments are determined. (2) Balances represent fair value of derivative financial instruments. (3) Collateral pledged is comprised of both cash and securities. (4) Prior period reflects reclassifications to conform to the current presentation. |
ACCUMULATED OTHER COMPREHENSI28
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Change in Accumulated Other Comprehensive Income | The change in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2016 is summarized as follows, net of tax (dollars in thousands): Unrealized Gains (Losses) on AFS Securities Unrealized Gain for AFS Securities Transferred to HTM Change in Fair Value of Cash Flow Hedge Total Balance - March 31, 2016 $ 10,716 $ 4,140 $ (8,497 ) $ 6,359 Other comprehensive income (loss) 3,698 (287 ) (1,007 ) 2,404 Amounts reclassified from accumulated other comprehensive income (2 ) — 138 136 Net current period other comprehensive income (loss) 3,696 (287 ) (869 ) 2,540 Balance - June 30, 2016 $ 14,412 $ 3,853 $ (9,366 ) $ 8,899 Unrealized Gains (Losses) on AFS Securities Unrealized Gain for AFS Securities Transferred to HTM Change in Fair Value of Cash Flow Hedge Total Balance - December 31, 2015 $ 7,777 $ 4,432 $ (5,957 ) $ 6,252 Other comprehensive income (loss) 6,730 (579 ) (3,688 ) 2,463 Amounts reclassified from accumulated other comprehensive income (95 ) — 279 184 Net current period other comprehensive income (loss) 6,635 (579 ) (3,409 ) 2,647 Balance - June 30, 2016 $ 14,412 $ 3,853 $ (9,366 ) $ 8,899 The change in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2015 is summarized as follows, net of tax (dollars in thousands): Unrealized Gains (Losses) on AFS Securities Unrealized Gain for AFS Securities Transferred to HTM Change in Fair Value of Cash Flow Hedge Total Balance - March 31, 2015 $ 21,097 $ — $ (6,402 ) $ 14,695 Unrealized gain transferred from AFS to HTM (5,251 ) 5,251 — — Other comprehensive income (loss) (6,845 ) (208 ) 1,809 (5,244 ) Amounts reclassified from accumulated other comprehensive income (263 ) — 41 (222 ) Net current period other comprehensive income (loss) (7,108 ) (208 ) 1,850 (5,466 ) Balance - June 30, 2015 $ 8,738 $ 5,043 $ (4,552 ) $ 9,229 Unrealized Gains (Losses) on AFS Securities Unrealized Gain for AFS Securities Transferred to HTM Change in Fair Value of Cash Flow Hedge Total Balance - December 31, 2014 $ 17,439 $ — $ (5,184 ) $ 12,255 Unrealized gain transferred from AFS to HTM (5,251 ) 5,251 — — Other comprehensive income (loss) (3,062 ) (208 ) 319 (2,951 ) Amounts reclassified from accumulated other comprehensive income (388 ) — 313 (75 ) Net current period other comprehensive income (loss) (3,450 ) (208 ) 632 (3,026 ) Balance - June 30, 2015 $ 8,738 $ 5,043 $ (4,552 ) $ 9,229 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis at June 30, 2016 and December 31, 2015 (dollars in thousands): Fair Value Measurements at June 30, 2016 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Balance ASSETS Securities available for sale: Obligations of states and political subdivisions $ — $ 272,786 $ — $ 272,786 Corporate and other bonds — 108,579 — 108,579 Mortgage-backed securities — 554,964 — 554,964 Other securities — 13,334 — 13,334 Loans held for sale — 38,114 — 38,114 Derivatives: Interest rate swap — 11,948 — 11,948 Cash flow hedges — 382 — 382 Interest rate lock commitments — — 1,712 1,712 LIABILITIES Derivatives: Interest rate swap $ — $ 11,948 $ — $ 11,948 Cash flow hedges — 17,263 — 17,263 Fair value hedges — 3,816 — 3,816 Fair Value Measurements at December 31, 2015 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Balance ASSETS Securities available for sale: Obligations of states and political subdivisions $ — $ 268,079 $ — $ 268,079 Corporate and other bonds — 75,979 — 75,979 Mortgage-backed securities — 548,171 — 548,171 Other securities — 11,063 — 11,063 Loans held for sale — 36,030 — 36,030 Derivatives: Interest rate swap — 3,758 — 3,758 Cash flow hedges — 946 — 946 Interest rate lock commitments — — 701 701 LIABILITIES Derivatives: Interest rate swap $ — $ 3,758 $ — $ 3,758 Cash flow hedges — 10,352 — 10,352 Fair value hedges — 888 — 888 |
Schedule of Financial Assets Measured at Fair Value on Nonrecurring Basis | The following tables summarize the Company’s financial assets that were measured at fair value on a nonrecurring basis at June 30, 2016 and December 31, 2015 (dollars in thousands): Fair Value Measurements at June 30, 2016 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Balance ASSETS Impaired loans $ — $ — $ 3,585 $ 3,585 Other real estate owned — — 13,381 13,381 Fair Value Measurements at December 31, 2015 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Balance ASSETS Impaired loans $ — $ — $ 2,214 $ 2,214 Other real estate owned — — 15,299 15,299 |
Carrying Values and Estimated Fair Values of the Company's Financial Instruments | The carrying values and estimated fair values of the Company’s financial instruments at June 30, 2016 and December 31, 2015 are as follows (dollars in thousands): Fair Value Measurements at June 30, 2016 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Carrying Value Level 1 Level 2 Level 3 Balance ASSETS Cash and cash equivalents $ 217,034 $ 217,034 $ — $ — $ 217,034 Securities available for sale 949,663 — 949,663 — 949,663 Held to maturity securities 202,917 — 211,949 — 211,949 Restricted stock 62,206 — 62,206 — 62,206 Loans held for sale 38,114 — 38,114 — 38,114 Net loans 5,906,024 — — 5,938,305 5,938,305 Derivatives: Interest rate lock commitments 1,712 — — 1,712 1,712 Interest rate swap 11,948 — 11,948 — 11,948 Cash flow hedges 382 — 382 — 382 Accrued interest receivable 21,664 — 21,664 — 21,664 Bank owned life insurance 176,413 — 176,413 — 176,413 LIABILITIES Deposits $ 6,095,826 $ — $ 6,098,700 $ — $ 6,098,700 Borrowings 952,809 — 932,278 — 932,278 Accrued interest payable 1,595 — 1,595 — 1,595 Derivatives: Interest rate swap 11,948 — 11,948 — 11,948 Cash flow hedges 17,263 — 17,263 — 17,263 Fair value hedges 3,816 — 3,816 — 3,816 Fair Value Measurements at December 31, 2015 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Carrying Value Level 1 Level 2 Level 3 Balance ASSETS Cash and cash equivalents $ 142,660 $ 142,660 $ — $ — $ 142,660 Securities available for sale 903,292 — 903,292 — 903,292 Held to maturity securities 205,374 — 209,437 — 209,437 Restricted stock 51,828 — 51,828 — 51,828 Loans held for sale 36,030 — 36,030 — 36,030 Net loans 5,637,415 — — 5,671,155 5,671,155 Derivatives: Interest rate lock commitments 701 — — 701 701 Interest rate swap 3,758 — 3,758 — 3,758 Cash flow hedges 946 — 946 — 946 Accrued interest receivable 20,760 — 20,760 — 20,760 Bank owned life insurance 173,687 — 173,687 — 173,687 LIABILITIES Deposits $ 5,963,936 $ — $ 5,957,484 $ — $ 5,957,484 Borrowings 680,175 — 659,364 — 659,364 Accrued interest payable 1,578 — 1,578 — 1,578 Derivatives: Interest rate swap 3,758 — 3,758 — 3,758 Cash flow hedges 10,352 — 10,352 — 10,352 Fair value hedges 888 — 888 — 888 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Denominators of the Basic and Diluted EPS Computations | The following is a reconciliation of the denominators of the basic and diluted EPS computations for the three and six months ended June 30, 2016 and 2015 (in thousands except per share data): Net Income Available to Common Shareholders (Numerator) Weighted Average Common Shares (Denominator) Per Share Amount Three months ended June 30, 2016 Net income, basic $ 19,337 43,747 $ 0.44 Add: potentially dilutive common shares - stock awards — 77 — Diluted $ 19,337 43,824 $ 0.44 Three months ended June 30, 2015 Net income, basic $ 15,348 45,129 $ 0.34 Add: potentially dilutive common shares - stock awards — 81 — Diluted $ 15,348 45,210 $ 0.34 Six months ended June 30, 2016 Net income, basic $ 36,298 43,999 $ 0.82 Add: potentially dilutive common shares - stock awards — 77 — Diluted $ 36,298 44,076 $ 0.82 Six months ended June 30, 2015 Net income, basic $ 31,049 45,117 $ 0.69 Add: potentially dilutive common shares - stock awards — 82 — Diluted $ 31,049 45,199 $ 0.69 |
SEGMENT REPORTING DISCLOSURES (
SEGMENT REPORTING DISCLOSURES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Information About Reportable Segments and Reconciliation | Information about reportable segments and reconciliation of such information to the consolidated financial statements for each of the three and six months ended June 30, 2016 and 2015 is as follows (dollars in thousands): UNION BANKSHARES CORPORATION AND SUBSIDIARIES SEGMENT FINANCIAL INFORMATION Community Bank Mortgage Eliminations Consolidated Three Months Ended June 30, 2016 Net interest income $ 65,478 $ 298 $ — $ 65,776 Provision for credit losses 2,260 40 — 2,300 Net interest income after provision for credit losses 63,218 258 — 63,476 Noninterest income 14,940 3,207 (154 ) 17,993 Noninterest expenses 52,766 2,639 (154 ) 55,251 Income before income taxes 25,392 826 — 26,218 Income tax expense 6,594 287 — 6,881 Net income $ 18,798 $ 539 $ — $ 19,337 Total assets $ 8,094,176 $ 75,802 $ (69,417 ) $ 8,100,561 Three Months Ended June 30, 2015 Net interest income $ 63,441 $ 375 $ — $ 63,816 Provision for credit losses 3,700 49 — 3,749 Net interest income after provision for credit losses 59,741 326 — 60,067 Noninterest income 13,523 2,860 (171 ) 16,212 Noninterest expenses 52,365 3,047 (171 ) 55,241 Income before income taxes 20,899 139 — 21,038 Income tax expense 5,646 44 — 5,690 Net income $ 15,253 $ 95 $ — $ 15,348 Total assets $ 7,495,564 $ 55,563 $ (53,421 ) $ 7,497,706 Six Months Ended June 30, 2016 Net interest income $ 128,903 $ 604 $ — $ 129,507 Provision for credit losses 4,760 144 — 4,904 Net interest income after provision for credit losses 124,143 460 — 124,603 Noninterest income 28,548 5,684 (325 ) 33,907 Noninterest expenses 104,610 5,238 (325 ) 109,523 Income before income taxes 48,081 906 — 48,987 Income tax expense 12,376 313 — 12,689 Net income $ 35,705 $ 593 $ — $ 36,298 Total assets $ 8,094,176 $ 75,802 $ (69,417 ) $ 8,100,561 Six Months Ended June 30, 2015 Net interest income $ 125,164 $ 621 $ — $ 125,785 Provision for credit losses 5,450 49 — 5,499 Net interest income after provision for credit losses 119,714 572 — 120,286 Noninterest income 26,371 5,236 (341 ) 31,266 Noninterest expenses 103,337 6,085 (341 ) 109,081 Income (loss) before income taxes 42,748 (277 ) — 42,471 Income tax expense (benefit) 11,527 (105 ) — 11,422 Net income (loss) $ 31,221 $ (172 ) $ — $ 31,049 Total assets $ 7,495,564 $ 55,563 $ (53,421 ) $ 7,497,706 |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | May 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||
Cash paid in acquisition | $ 4,077 | $ 0 | ||||
Goodwill | $ 297,659 | 297,659 | $ 293,522 | |||
Affordable housing projects, recognized amortization | 130 | $ 104 | 260 | 279 | ||
Affordable housing projects, tax credits | 210 | $ 170 | 420 | $ 427 | ||
Affordable housing projects, investment amount | 8,100 | 8,100 | $ 8,500 | |||
Affordable housing projects, liability | $ 5,300 | $ 5,300 | ||||
ODCM [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Assets under management | $ 300,000 | |||||
Acquisition date fair value of consideration transferred | 9,100 | |||||
Cash paid in acquisition | 4,100 | |||||
Stock issued | 500 | |||||
Goodwill | 4,100 | |||||
Acquired amortizable intangible assets | $ 3,800 | |||||
Acquired amortizable assets, useful life | 10 years |
SECURITIES (Amortized Cost, Gro
SECURITIES (Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Investment Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 927,438 | $ 891,276 |
Gross Unrealized Gains | 24,568 | 16,661 |
Gross Unrealized (Losses) | (2,343) | (4,645) |
Estimated Fair Value | 949,663 | 903,292 |
Obligations of States and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 258,968 | 257,740 |
Gross Unrealized Gains | 13,848 | 10,479 |
Gross Unrealized (Losses) | (30) | (140) |
Estimated Fair Value | 272,786 | 268,079 |
Corporate and Other Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 109,757 | 77,628 |
Gross Unrealized Gains | 506 | 55 |
Gross Unrealized (Losses) | (1,684) | (1,704) |
Estimated Fair Value | 108,579 | 75,979 |
Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 545,428 | 544,823 |
Gross Unrealized Gains | 10,165 | 6,127 |
Gross Unrealized (Losses) | (629) | (2,779) |
Estimated Fair Value | 554,964 | 548,171 |
Other Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 13,285 | 11,085 |
Gross Unrealized Gains | 49 | 0 |
Gross Unrealized (Losses) | 0 | (22) |
Estimated Fair Value | $ 13,334 | $ 11,063 |
SECURITIES (Schedule of Gross U
SECURITIES (Schedule of Gross Unrealized Losses and Fair Value of Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Less than 12 months, Fair Value | $ 79,085 | $ 331,384 |
Less than 12 months, Unrealized Losses | (597) | (3,263) |
More than 12 Months, Fair Value | 79,721 | 46,168 |
Less than 12 months, Unrealized Losses | (1,746) | (1,382) |
Total, Fair Value | 158,806 | 377,552 |
Total, Unrealized Losses | (2,343) | (4,645) |
Obligations of States and Political Subdivisions [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Less than 12 months, Fair Value | 0 | 8,114 |
Less than 12 months, Unrealized Losses | 0 | (70) |
More than 12 Months, Fair Value | 631 | 4,950 |
Less than 12 months, Unrealized Losses | (30) | (70) |
Total, Fair Value | 631 | 13,064 |
Total, Unrealized Losses | (30) | (140) |
Mortgage-Backed Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Less than 12 months, Fair Value | 67,843 | 287,113 |
Less than 12 months, Unrealized Losses | (266) | (2,442) |
More than 12 Months, Fair Value | 42,840 | 21,660 |
Less than 12 months, Unrealized Losses | (363) | (337) |
Total, Fair Value | 110,683 | 308,773 |
Total, Unrealized Losses | (629) | (2,779) |
Corporate Bonds and Other Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Less than 12 months, Fair Value | 11,242 | 36,157 |
Less than 12 months, Unrealized Losses | (331) | (751) |
More than 12 Months, Fair Value | 36,250 | 19,558 |
Less than 12 months, Unrealized Losses | (1,353) | (975) |
Total, Fair Value | 47,492 | 55,715 |
Total, Unrealized Losses | $ (1,684) | $ (1,726) |
SECURITIES (Narrative) (Details
SECURITIES (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($)security | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)security | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)security | |
Schedule of Investments [Line Items] | |||||
Individual securities that had been in a continuous loss position for more than 12 months, amount | $ 79,721,000 | $ 79,721,000 | $ 46,168,000 | ||
Securities that had been in a continuous loss position for more than 12 months, unrealized loss | 1,746,000 | 1,746,000 | $ 1,382,000 | ||
Transfer from securities available for sale to securities held to maturity | $ 201,800,000 | 0 | $ 201,822,000 | ||
Held to maturity securities unrealized gains before tax | $ 8,100,000 | 5,900,000 | |||
Held-to-maturity securities in continuous loss position for more than 12 months | $ 1,100,000 | $ 1,100,000 | |||
Number of held-to-maturity securities in unrealized loss positions | security | 2 | 2 | |||
Held-to-maturity securities, continuous unrealized loss position, more than 12 months | $ 121,000 | $ 121,000 | |||
Federal Home Loan Bank requires Bank to maintain percentage of stock equal to outstanding borrowings | 4.25% | 4.25% | |||
Percentage of Federal Reserve Bank of Richmond reserve | 6.00% | 6.00% | |||
Restricted equity securities consist of Federal Reserve Bank stock | 23,800,000 | $ 23,800,000 | $ 23,800,000 | ||
Federal Home Loan Bank Stock | 38,400,000 | $ 38,400,000 | 28,000,000 | ||
Credit-related OTTI | $ 0 | $ 300,000 | |||
Available-for-sale Securities [Member] | |||||
Schedule of Investments [Line Items] | |||||
Individual securities that had been in a continuous loss position | security | 21 | 21 | 20 |
SECURITIES (Schedule of Amortiz
SECURITIES (Schedule of Amortized Cost and Estimated Fair Value of Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | |
Amortized Cost | |||
Due in one year or less | $ 11,376 | $ 8,380 | |
Due after one year through five years | 101,658 | 65,326 | |
Due after five years through ten years | 318,124 | 296,864 | |
Due after ten years | 496,280 | 520,706 | |
Total securities available for sale | 927,438 | 891,276 | |
Estimated Fair Value | |||
Due in one year or less | 11,512 | 8,370 | |
Due after one year through five years | 104,839 | 66,996 | |
Due after five years through ten years | 326,477 | 301,920 | |
Due after ten years | 506,835 | 526,006 | |
Total securities available for sale | 949,663 | 903,292 | |
Carrying Value | |||
Due in one year or less | 857 | 1,488 | |
Due after one year through five years | 18,122 | 4,294 | |
Due after five years through ten years | 45,802 | 44,736 | |
Due after ten years | 138,136 | 154,856 | |
Total securities held to maturity | 202,917 | 205,374 | |
Estimated Fair Value | |||
Due in one year or less | 857 | 1,491 | |
Due after one year through five years | 18,564 | 4,348 | |
Due after five years through ten years | 47,469 | 45,501 | |
Due after ten years | 145,059 | 158,097 | |
Total securities held to maturity | 211,949 | $ 209,437 | |
Held to maturity securities unrealized gains before tax | $ 8,100 | $ 5,900 |
SECURITIES (Schedule of Securit
SECURITIES (Schedule of Securities Pledged to Secure Public Deposits, Repurchase Agreements, and for Other Purposes) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Total pledged AFS securities, fair value | $ 329,915 | $ 337,301 |
Available-for-sale Securities [Member] | Public Deposits [Member] | ||
Schedule of Investments [Line Items] | ||
Total pledged AFS securities, fair value | 183,813 | 184,635 |
Available-for-sale Securities [Member] | Repurchase Agreements [Member] | ||
Schedule of Investments [Line Items] | ||
Total pledged AFS securities, fair value | 122,562 | 126,120 |
Available-for-sale Securities [Member] | Other Purposes [Member] | ||
Schedule of Investments [Line Items] | ||
Total pledged AFS securities, fair value | 23,540 | 26,546 |
Held-to-maturity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Total pledged HTM securities, fair value | 211,949 | 207,140 |
Held-to-maturity Securities [Member] | Public Deposits [Member] | ||
Schedule of Investments [Line Items] | ||
Total pledged HTM securities, fair value | $ 211,949 | $ 207,140 |
SECURITIES (Schedule of Carryin
SECURITIES (Schedule of Carrying Value, Gross Unrealized Gains and Losses and Estimated Fair Value of Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Total securities held to maturity | $ 202,917 | $ 205,374 | |
Estimated Fair Value | 211,949 | 209,437 | |
Held to maturity securities unrealized gains before tax | $ 8,100 | 5,900 | |
Obligations of States and Political Subdivisions [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Total securities held to maturity | 202,917 | 205,374 | |
Gross Unrealized Gains | 9,153 | 5,748 | |
Gross Unrealized (Losses) | (121) | (1,685) | |
Estimated Fair Value | $ 211,949 | $ 209,437 |
SECURITIES (Gross Unrealized Lo
SECURITIES (Gross Unrealized Losses and Fair Value of Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
More than 12 months, Fair Value | $ 1,100 | |
More than 12 months, Unrealized Losses | (121) | |
Obligations of States and Political Subdivisions [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, Fair Value | 0 | $ 7,056 |
Less than 12 months, Unrealized Losses | 0 | (1,685) |
More than 12 months, Fair Value | 1,148 | 0 |
More than 12 months, Unrealized Losses | (121) | 0 |
Total, Fair Value | 1,148 | 7,056 |
Total, Unrealized Losses | $ (121) | $ (1,685) |
SECURITIES (Gross Realized Gain
SECURITIES (Gross Realized Gains and Losses on the Sale of Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Realized gains (losses): | ||||
Gross realized gains | $ 3 | $ 491 | $ 242 | $ 684 |
Gross realized losses | 0 | (87) | (96) | (87) |
Net realized gains | 3 | 404 | 146 | 597 |
Proceeds from sales of securities | $ 892 | $ 45,658 | $ 15,424 | $ 58,157 |
LOANS AND ALLOWANCE FOR LOAN 41
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Stated at Face Amount, Net of Deferred Fees and Costs) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans held for investment, net | $ 5,941,098 | $ 5,671,462 | $ 5,510,385 |
Loans receivable, deferred fees and costs | 1,900 | 3,000 | |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans held for investment, net | 765,997 | 749,720 | 671,234 |
Commercial Real Estate - Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans held for investment, net | 831,880 | 860,086 | 874,582 |
Commercial Real Estate - Non-Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans held for investment, net | 1,370,745 | 1,270,480 | 1,217,646 |
Multifamily Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans held for investment, net | 337,723 | 322,528 | 316,474 |
Commercial & Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans held for investment, net | 469,054 | 435,365 | 426,193 |
Residential 1-4 Family [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans held for investment, net | 992,457 | 978,469 | 991,592 |
Auto [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans held for investment, net | 244,575 | 234,061 | 216,420 |
HELOC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans held for investment, net | 519,196 | 516,726 | 512,123 |
Consumer and all other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans held for investment, net | $ 409,471 | $ 304,027 | $ 284,121 |
LOANS AND ALLOWANCE FOR LOAN 42
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Aging of the Loan Portfolio by Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater than 90 Days and still Accruing | $ 3,533 | $ 5,829 | |
Total Loans | 5,941,098 | 5,671,462 | $ 5,510,385 |
Nonaccrual | 10,861 | 11,936 | |
Current | 5,837,731 | 5,542,840 | |
Purchased Impaired [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 67,170 | 73,737 | 87,841 |
Current | 60,224 | 64,455 | |
30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 13,514 | 27,787 | |
60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 8,289 | 9,333 | |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater than 90 Days and still Accruing | 116 | 128 | |
Total Loans | 765,997 | 749,720 | 671,234 |
Nonaccrual | 1,604 | 2,113 | |
Current | 757,685 | 737,958 | |
Construction and Land Development [Member] | Purchased Impaired [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 5,013 | 5,986 | 8,397 |
Current | 4,649 | 5,376 | |
Construction and Land Development [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 402 | 3,155 | |
Construction and Land Development [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,177 | 380 | |
Commercial Real Estate - Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater than 90 Days and still Accruing | 439 | 103 | |
Total Loans | 831,880 | 860,086 | 874,582 |
Nonaccrual | 1,661 | 3,904 | |
Current | 808,176 | 826,859 | |
Commercial Real Estate - Owner Occupied [Member] | Purchased Impaired [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 20,692 | 27,388 | 29,838 |
Current | 18,099 | 24,837 | |
Commercial Real Estate - Owner Occupied [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 912 | 1,714 | |
Commercial Real Estate - Owner Occupied [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 118 | |
Commercial Real Estate - Non-Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater than 90 Days and still Accruing | 723 | 723 | |
Total Loans | 1,370,745 | 1,270,480 | 1,217,646 |
Nonaccrual | 0 | 100 | |
Current | 1,351,458 | 1,255,367 | |
Commercial Real Estate - Non-Owner Occupied [Member] | Purchased Impaired [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 18,297 | 13,519 | 16,982 |
Current | 17,331 | 12,562 | |
Commercial Real Estate - Non-Owner Occupied [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 267 | 771 | |
Commercial Real Estate - Non-Owner Occupied [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Multifamily Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater than 90 Days and still Accruing | 0 | 272 | |
Total Loans | 337,723 | 322,528 | 316,474 |
Nonaccrual | 0 | 0 | |
Current | 335,631 | 320,701 | |
Multifamily Real Estate [Member] | Purchased Impaired [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 2,092 | 1,555 | 3,004 |
Current | 2,092 | 1,555 | |
Multifamily Real Estate [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Multifamily Real Estate [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Commercial & Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater than 90 Days and still Accruing | 117 | 124 | |
Total Loans | 469,054 | 435,365 | 426,193 |
Nonaccrual | 263 | 429 | |
Current | 464,794 | 431,916 | |
Commercial & Industrial [Member] | Purchased Impaired [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 1,354 | 1,813 | 2,940 |
Current | 1,205 | 1,583 | |
Commercial & Industrial [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,464 | 1,056 | |
Commercial & Industrial [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 62 | 27 | |
Residential 1-4 Family [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater than 90 Days and still Accruing | 1,302 | 3,638 | |
Total Loans | 992,457 | 978,469 | 991,592 |
Nonaccrual | 5,448 | 3,563 | |
Current | 957,393 | 928,312 | |
Residential 1-4 Family [Member] | Purchased Impaired [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 17,805 | 21,159 | 24,157 |
Current | 15,578 | 17,093 | |
Residential 1-4 Family [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 5,476 | 15,023 | |
Residential 1-4 Family [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 5,033 | 6,774 | |
Auto [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater than 90 Days and still Accruing | 144 | 60 | |
Total Loans | 244,575 | 234,061 | 216,420 |
Nonaccrual | 140 | 192 | |
Current | 242,632 | 231,264 | |
Auto [Member] | Purchased Impaired [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 0 | 0 | 0 |
Auto [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,282 | 2,312 | |
Auto [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 377 | 233 | |
HELOC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater than 90 Days and still Accruing | 642 | 762 | |
Total Loans | 519,196 | 516,726 | 512,123 |
Nonaccrual | 1,495 | 1,348 | |
Current | 512,967 | 509,124 | |
HELOC [Member] | Purchased Impaired [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 1,517 | 1,791 | 1,840 |
Current | 870 | 923 | |
HELOC [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,347 | 2,589 | |
HELOC [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,228 | 1,112 | |
Consumer and all other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater than 90 Days and still Accruing | 50 | 19 | |
Total Loans | 409,471 | 304,027 | 284,121 |
Nonaccrual | 250 | 287 | |
Current | 406,995 | 301,339 | |
Consumer and all other [Member] | Purchased Impaired [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 400 | 526 | $ 683 |
Current | 400 | 526 | |
Consumer and all other [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,364 | 1,167 | |
Consumer and all other [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 412 | $ 689 |
LOANS AND ALLOWANCE FOR LOAN 43
LOANS AND ALLOWANCE FOR LOAN LOSSES (PCI Loan Portfolios by Segment and Delinquency Status) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | $ 5,837,731 | $ 5,542,840 | |
Total Loans | 5,941,098 | 5,671,462 | $ 5,510,385 |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 757,685 | 737,958 | |
Total Loans | 765,997 | 749,720 | 671,234 |
Commercial Real Estate - Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 808,176 | 826,859 | |
Total Loans | 831,880 | 860,086 | 874,582 |
Commercial Real Estate - Non-Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 1,351,458 | 1,255,367 | |
Total Loans | 1,370,745 | 1,270,480 | 1,217,646 |
Multifamily Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 335,631 | 320,701 | |
Total Loans | 337,723 | 322,528 | 316,474 |
Commercial & Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 464,794 | 431,916 | |
Total Loans | 469,054 | 435,365 | 426,193 |
Residential 1-4 Family [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 957,393 | 928,312 | |
Total Loans | 992,457 | 978,469 | 991,592 |
HELOC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 512,967 | 509,124 | |
Total Loans | 519,196 | 516,726 | 512,123 |
Consumer and all other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 406,995 | 301,339 | |
Total Loans | 409,471 | 304,027 | 284,121 |
Purchased Impaired [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 60,224 | 64,455 | |
Total Loans | 67,170 | 73,737 | 87,841 |
Purchased Impaired [Member] | 30 To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,196 | 5,025 | |
Purchased Impaired [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,750 | 4,257 | |
Purchased Impaired [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 4,649 | 5,376 | |
Total Loans | 5,013 | 5,986 | 8,397 |
Purchased Impaired [Member] | Construction and Land Development [Member] | 30 To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3 | 369 | |
Purchased Impaired [Member] | Construction and Land Development [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 361 | 241 | |
Purchased Impaired [Member] | Commercial Real Estate - Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 18,099 | 24,837 | |
Total Loans | 20,692 | 27,388 | 29,838 |
Purchased Impaired [Member] | Commercial Real Estate - Owner Occupied [Member] | 30 To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,098 | 1,139 | |
Purchased Impaired [Member] | Commercial Real Estate - Owner Occupied [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,495 | 1,412 | |
Purchased Impaired [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 17,331 | 12,562 | |
Total Loans | 18,297 | 13,519 | 16,982 |
Purchased Impaired [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | 30 To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 795 | 755 | |
Purchased Impaired [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 171 | 202 | |
Purchased Impaired [Member] | Multifamily Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 2,092 | 1,555 | |
Total Loans | 2,092 | 1,555 | 3,004 |
Purchased Impaired [Member] | Multifamily Real Estate [Member] | 30 To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Purchased Impaired [Member] | Multifamily Real Estate [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Purchased Impaired [Member] | Commercial & Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 1,205 | 1,583 | |
Total Loans | 1,354 | 1,813 | 2,940 |
Purchased Impaired [Member] | Commercial & Industrial [Member] | 30 To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 149 | 209 | |
Purchased Impaired [Member] | Commercial & Industrial [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 21 | |
Purchased Impaired [Member] | Residential 1-4 Family [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 15,578 | 17,093 | |
Total Loans | 17,805 | 21,159 | 24,157 |
Purchased Impaired [Member] | Residential 1-4 Family [Member] | 30 To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,014 | 2,143 | |
Purchased Impaired [Member] | Residential 1-4 Family [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,213 | 1,923 | |
Purchased Impaired [Member] | HELOC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 870 | 923 | |
Total Loans | 1,517 | 1,791 | 1,840 |
Purchased Impaired [Member] | HELOC [Member] | 30 To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 137 | 410 | |
Purchased Impaired [Member] | HELOC [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 510 | 458 | |
Purchased Impaired [Member] | Consumer and all other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 400 | 526 | |
Total Loans | 400 | 526 | $ 683 |
Purchased Impaired [Member] | Consumer and all other [Member] | 30 To 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Purchased Impaired [Member] | Consumer and all other [Member] | Greater than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 44
LOANS AND ALLOWANCE FOR LOAN LOSSES (Impaired Loans Individually Evaluated for Impairment by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Recorded Investment | |||||
Loans without a specific allowance | $ 62,214 | $ 62,214 | $ 60,466 | ||
Loans with a specific allowance | 10,261 | 10,261 | 16,652 | ||
Total impaired loans | 72,475 | 72,475 | 77,118 | ||
Unpaid Principal Balance | |||||
Loans without a specific allowance | 64,380 | 64,380 | 63,893 | ||
Loans with a specific allowance | 11,380 | 11,380 | 17,102 | ||
Total impaired loans | 75,760 | 75,760 | 80,995 | ||
Related Allowance | 589 | 589 | 2,002 | ||
Average Investment | 71,936 | $ 88,380 | 72,413 | $ 97,540 | |
Interest Income Recognized | 879 | 1,392 | 1,730 | 2,359 | |
Construction and Land Development [Member] | |||||
Recorded Investment | |||||
Loans without a specific allowance | 29,877 | 29,877 | 33,250 | ||
Loans with a specific allowance | 1,833 | 1,833 | 3,167 | ||
Unpaid Principal Balance | |||||
Loans without a specific allowance | 30,354 | 30,354 | 33,731 | ||
Loans with a specific allowance | 2,234 | 2,234 | 3,218 | ||
Related Allowance | 64 | 64 | 538 | ||
Average Investment | 30,524 | 40,026 | 30,174 | 48,772 | |
Interest Income Recognized | 495 | 838 | 962 | 1,366 | |
Commercial Real Estate - Owner Occupied [Member] | |||||
Recorded Investment | |||||
Loans without a specific allowance | 11,201 | 11,201 | 7,781 | ||
Loans with a specific allowance | 2,291 | 2,291 | 3,237 | ||
Unpaid Principal Balance | |||||
Loans without a specific allowance | 11,317 | 11,317 | 8,983 | ||
Loans with a specific allowance | 2,320 | 2,320 | 3,239 | ||
Related Allowance | 49 | 49 | 358 | ||
Average Investment | 13,567 | 17,871 | 13,719 | 18,007 | |
Interest Income Recognized | 148 | 169 | 292 | 341 | |
Commercial Real Estate - Non-Owner Occupied [Member] | |||||
Recorded Investment | |||||
Loans without a specific allowance | 3,993 | 3,993 | 5,328 | ||
Loans with a specific allowance | 267 | 267 | 907 | ||
Unpaid Principal Balance | |||||
Loans without a specific allowance | 3,993 | 3,993 | 5,325 | ||
Loans with a specific allowance | 267 | 267 | 907 | ||
Related Allowance | 1 | 1 | 75 | ||
Average Investment | 4,215 | 8,736 | 4,216 | 8,750 | |
Interest Income Recognized | 43 | 125 | 79 | 181 | |
Multifamily Real Estate [Member] | |||||
Recorded Investment | |||||
Loans without a specific allowance | 3,777 | 3,777 | 3,828 | ||
Unpaid Principal Balance | |||||
Loans without a specific allowance | 3,777 | 3,777 | 3,828 | ||
Average Investment | 3,791 | 4,597 | 3,804 | 4,600 | |
Interest Income Recognized | 60 | 85 | 120 | 147 | |
Commercial & Industrial [Member] | |||||
Recorded Investment | |||||
Loans without a specific allowance | 1,154 | 1,154 | 711 | ||
Loans with a specific allowance | 1,334 | 1,334 | 1,952 | ||
Unpaid Principal Balance | |||||
Loans without a specific allowance | 1,572 | 1,572 | 951 | ||
Loans with a specific allowance | 1,456 | 1,456 | 1,949 | ||
Related Allowance | 47 | 47 | 441 | ||
Average Investment | 2,622 | 4,525 | 2,861 | 4,659 | |
Interest Income Recognized | 31 | 60 | 61 | 102 | |
Residential 1-4 Family [Member] | |||||
Recorded Investment | |||||
Loans without a specific allowance | 10,065 | 10,065 | 7,564 | ||
Loans with a specific allowance | 3,880 | 3,880 | 6,065 | ||
Unpaid Principal Balance | |||||
Loans without a specific allowance | 11,024 | 11,024 | 8,829 | ||
Loans with a specific allowance | 3,978 | 3,978 | 6,153 | ||
Related Allowance | 345 | 345 | 418 | ||
Average Investment | 14,189 | 10,924 | 14,365 | 10,989 | |
Interest Income Recognized | 90 | 105 | 183 | 202 | |
Auto [Member] | |||||
Recorded Investment | |||||
Loans without a specific allowance | 0 | 0 | 7 | ||
Loans with a specific allowance | 140 | 140 | 192 | ||
Unpaid Principal Balance | |||||
Loans without a specific allowance | 0 | 0 | 7 | ||
Loans with a specific allowance | 188 | 188 | 199 | ||
Related Allowance | 1 | 1 | 1 | ||
Average Investment | 162 | 1 | 183 | 1 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
HELOC [Member] | |||||
Recorded Investment | |||||
Loans without a specific allowance | 1,900 | 1,900 | 1,786 | ||
Loans with a specific allowance | 437 | 437 | 769 | ||
Unpaid Principal Balance | |||||
Loans without a specific allowance | 2,046 | 2,046 | 2,028 | ||
Loans with a specific allowance | 491 | 491 | 925 | ||
Related Allowance | 81 | 81 | 76 | ||
Average Investment | 2,492 | 1,240 | 2,519 | 1,244 | |
Interest Income Recognized | 11 | 6 | 29 | 11 | |
Consumer and all other [Member] | |||||
Recorded Investment | |||||
Loans without a specific allowance | 247 | 247 | 211 | ||
Loans with a specific allowance | 79 | 79 | 363 | ||
Unpaid Principal Balance | |||||
Loans without a specific allowance | 297 | 297 | 211 | ||
Loans with a specific allowance | 446 | 446 | 512 | ||
Related Allowance | 1 | 1 | $ 95 | ||
Average Investment | 374 | 460 | 572 | 518 | |
Interest Income Recognized | $ 1 | $ 4 | $ 4 | $ 9 |
LOANS AND ALLOWANCE FOR LOAN 45
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Modified Loans that Continue to Accrue Interest Under the Terms of Restructuring Agreement) (Details) $ in Thousands | Jun. 30, 2016USD ($)loan | Dec. 31, 2015USD ($)loan |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
No. of Loans | loan | 56 | 57 |
Recorded Investment | $ 13,543 | $ 12,701 |
Outstanding Commitment | $ 0 | $ 0 |
Performing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
No. of Loans | loan | 44 | 46 |
Recorded Investment | $ 11,885 | $ 10,780 |
Outstanding Commitment | $ 0 | $ 0 |
Performing [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
No. of Loans | loan | 5 | 6 |
Recorded Investment | $ 3,788 | $ 3,349 |
Outstanding Commitment | $ 0 | $ 0 |
Performing [Member] | Commercial Real Estate - Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
No. of Loans | loan | 5 | 5 |
Recorded Investment | $ 2,091 | $ 1,530 |
Outstanding Commitment | $ 0 | $ 0 |
Performing [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
No. of Loans | loan | 2 | 2 |
Recorded Investment | $ 2,390 | $ 2,390 |
Outstanding Commitment | $ 0 | $ 0 |
Performing [Member] | Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
No. of Loans | loan | 4 | 5 |
Recorded Investment | $ 218 | $ 261 |
Outstanding Commitment | $ 0 | $ 0 |
Performing [Member] | Residential 1-4 Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
No. of Loans | loan | 27 | 27 |
Recorded Investment | $ 3,323 | $ 3,173 |
Outstanding Commitment | $ 0 | $ 0 |
Performing [Member] | Consumer and all other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
No. of Loans | loan | 1 | 1 |
Recorded Investment | $ 75 | $ 77 |
Outstanding Commitment | $ 0 | $ 0 |
Nonperforming [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
No. of Loans | loan | 12 | 11 |
Recorded Investment | $ 1,658 | $ 1,921 |
Outstanding Commitment | $ 0 | $ 0 |
Nonperforming [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
No. of Loans | loan | 2 | 2 |
Recorded Investment | $ 215 | $ 321 |
Outstanding Commitment | $ 0 | $ 0 |
Nonperforming [Member] | Commercial Real Estate - Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
No. of Loans | loan | 2 | 1 |
Recorded Investment | $ 167 | $ 137 |
Outstanding Commitment | $ 0 | $ 0 |
Nonperforming [Member] | Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
No. of Loans | loan | 1 | 1 |
Recorded Investment | $ 135 | $ 2 |
Outstanding Commitment | $ 0 | $ 0 |
Nonperforming [Member] | Residential 1-4 Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
No. of Loans | loan | 7 | 6 |
Recorded Investment | $ 1,141 | $ 1,142 |
Outstanding Commitment | $ 0 | $ 0 |
Nonperforming [Member] | HELOC [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
No. of Loans | loan | 0 | 1 |
Recorded Investment | $ 0 | $ 319 |
Outstanding Commitment | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 46
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period for restructured loan to be considered default | 90 days | ||
Provision for unfunded commitments | $ 100 | $ 200 | |
Total loans held for investment, net | 5,941,098 | 5,510,385 | $ 5,671,462 |
Acquired Performing Loan Portfolio [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, net | 1,200,000 | 1,400,000 | |
Remaining discount on acquired loans | 19,100 | 20,800 | |
Purchased Impaired [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, net | 67,170 | $ 87,841 | 73,737 |
Purchased impaired loans (gross) | $ 83,100 | $ 90,300 |
LOANS AND ALLOWANCE FOR LOAN 47
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of TDR by Class and Modification Type) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($)loan | Jun. 30, 2015USD ($)loan | Jun. 30, 2016USD ($)loan | Jun. 30, 2015USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||||
No. of Loans | loan | 5 | 2 | 7 | 3 |
Recorded Investment at Period End | $ | $ 1,503 | $ 993 | $ 2,584 | $ 1,011 |
Term modification, at a market rate | ||||
Financing Receivable, Modifications [Line Items] | ||||
No. of Loans | loan | 3 | 1 | 5 | 2 |
Recorded Investment at Period End | $ | $ 1,331 | $ 120 | $ 2,412 | $ 138 |
Term modification, at a market rate | Construction and Land Development [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
No. of Loans | loan | 1 | 1 | ||
Recorded Investment at Period End | $ | $ 1,193 | $ 1,193 | ||
Term modification, at a market rate | Commercial Real Estate - Owner Occupied [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
No. of Loans | loan | 1 | 1 | 2 | 1 |
Recorded Investment at Period End | $ | $ 38 | $ 120 | $ 743 | $ 120 |
Term modification, at a market rate | Residential 1-4 Family [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
No. of Loans | loan | 1 | 2 | ||
Recorded Investment at Period End | $ | $ 100 | $ 476 | ||
Term modification, at a market rate | Commercial & Industrial [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
No. of Loans | loan | 0 | 1 | ||
Recorded Investment at Period End | $ | $ 0 | $ 18 | ||
Term modification, below market rate | ||||
Financing Receivable, Modifications [Line Items] | ||||
No. of Loans | loan | 1 | 1 | 1 | 1 |
Recorded Investment at Period End | $ | $ 37 | $ 873 | $ 37 | $ 873 |
Term modification, below market rate | Commercial Real Estate - Owner Occupied [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
No. of Loans | loan | 1 | 1 | ||
Recorded Investment at Period End | $ | $ 873 | $ 873 | ||
Term modification, below market rate | Residential 1-4 Family [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
No. of Loans | loan | 1 | 1 | ||
Recorded Investment at Period End | $ | $ 37 | $ 37 | ||
Interest rate modification, below market rate | ||||
Financing Receivable, Modifications [Line Items] | ||||
No. of Loans | loan | 1 | 1 | ||
Recorded Investment at Period End | $ | $ 135 | $ 135 | ||
Interest rate modification, below market rate | Commercial & Industrial [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
No. of Loans | loan | 1 | 1 | ||
Recorded Investment at Period End | $ | $ 135 | $ 135 |
LOANS AND ALLOWANCE FOR LOAN 48
LOANS AND ALLOWANCE FOR LOAN LOSSES (Allowance for Loan Loss Activity, by Portfolio Segment, Balances for Allowance for Credit Losses, and Loans Based on Impairment Methodology) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | |
Allowance for loan losses | |||||
Balance, beginning of the year | $ 34,047 | $ 32,384 | |||
Recoveries credited to allowance | 1,488 | 1,696 | |||
Loans charged off | (5,265) | (7,035) | |||
Provision charged to operations | 4,804 | 5,299 | |||
Balance, end of period | 35,074 | 32,344 | |||
Total Loans | |||||
Loans individually evaluated for impairment | $ 72,475 | $ 95,215 | |||
ALL individually evaluated for impairment | 589 | 1,610 | |||
Loans collectively evaluated for impairment | 5,801,453 | 5,327,329 | |||
ALL collectively evaluated for impairment | 34,485 | 30,734 | |||
Total Loans | 5,941,098 | $ 5,671,462 | 5,510,385 | ||
Total ALL | 34,047 | 32,384 | 35,074 | 34,047 | 32,344 |
Purchased Impaired [Member] | |||||
Allowance for loan losses | |||||
Balance, end of period | 0 | 0 | |||
Total Loans | |||||
Total Loans | 67,170 | 73,737 | 87,841 | ||
Total ALL | 0 | 0 | 0 | 0 | |
Construction and Land Development [Member] | |||||
Allowance for loan losses | |||||
Balance, beginning of the year | 6,040 | 4,856 | |||
Recoveries credited to allowance | 97 | 345 | |||
Loans charged off | (859) | (68) | |||
Provision charged to operations | 5,030 | (205) | |||
Balance, end of period | 10,308 | 4,928 | |||
Total Loans | |||||
Loans individually evaluated for impairment | 31,710 | 48,184 | |||
ALL individually evaluated for impairment | 64 | 145 | |||
Loans collectively evaluated for impairment | 729,274 | 614,653 | |||
ALL collectively evaluated for impairment | 10,244 | 4,783 | |||
Total Loans | 765,997 | 749,720 | 671,234 | ||
Total ALL | 6,040 | 4,856 | 10,308 | 6,040 | 4,928 |
Construction and Land Development [Member] | Purchased Impaired [Member] | |||||
Allowance for loan losses | |||||
Balance, end of period | 0 | 0 | |||
Total Loans | |||||
Total Loans | 5,013 | 5,986 | 8,397 | ||
Total ALL | 0 | 0 | 0 | 0 | |
Commercial Real Estate - Owner Occupied [Member] | |||||
Allowance for loan losses | |||||
Balance, beginning of the year | 4,614 | 4,640 | |||
Recoveries credited to allowance | 62 | 8 | |||
Loans charged off | (772) | (481) | |||
Provision charged to operations | 129 | 697 | |||
Balance, end of period | 4,033 | 4,864 | |||
Total Loans | |||||
Loans individually evaluated for impairment | 13,492 | 18,079 | |||
ALL individually evaluated for impairment | 49 | 657 | |||
Loans collectively evaluated for impairment | 797,696 | 826,665 | |||
ALL collectively evaluated for impairment | 3,984 | 4,207 | |||
Total Loans | 831,880 | 860,086 | 874,582 | ||
Total ALL | 4,614 | 4,640 | 4,033 | 4,614 | 4,864 |
Commercial Real Estate - Owner Occupied [Member] | Purchased Impaired [Member] | |||||
Allowance for loan losses | |||||
Balance, end of period | 0 | 0 | |||
Total Loans | |||||
Total Loans | 20,692 | 27,388 | 29,838 | ||
Total ALL | 0 | 0 | 0 | 0 | |
Commercial Real Estate - Non-Owner Occupied [Member] | |||||
Allowance for loan losses | |||||
Balance, beginning of the year | 6,929 | 7,256 | |||
Recoveries credited to allowance | 0 | 55 | |||
Loans charged off | 0 | (2,765) | |||
Provision charged to operations | (1,536) | 1,760 | |||
Balance, end of period | 5,393 | 6,306 | |||
Total Loans | |||||
Loans individually evaluated for impairment | 4,260 | 8,438 | |||
ALL individually evaluated for impairment | 1 | 81 | |||
Loans collectively evaluated for impairment | 1,348,188 | 1,192,226 | |||
ALL collectively evaluated for impairment | 5,392 | 6,225 | |||
Total Loans | 1,370,745 | 1,270,480 | 1,217,646 | ||
Total ALL | 6,929 | 7,256 | 5,393 | 6,929 | 6,306 |
Commercial Real Estate - Non-Owner Occupied [Member] | Purchased Impaired [Member] | |||||
Allowance for loan losses | |||||
Balance, end of period | 0 | 0 | |||
Total Loans | |||||
Total Loans | 18,297 | 13,519 | 16,982 | ||
Total ALL | 0 | 0 | 0 | 0 | |
Multifamily Real Estate [Member] | |||||
Allowance for loan losses | |||||
Balance, beginning of the year | 1,606 | 1,374 | |||
Recoveries credited to allowance | 0 | 0 | |||
Loans charged off | 0 | 0 | |||
Provision charged to operations | (697) | 261 | |||
Balance, end of period | 909 | 1,635 | |||
Total Loans | |||||
Loans individually evaluated for impairment | 3,777 | 4,621 | |||
ALL individually evaluated for impairment | 0 | 0 | |||
Loans collectively evaluated for impairment | 331,854 | 308,849 | |||
ALL collectively evaluated for impairment | 909 | 1,635 | |||
Total Loans | 337,723 | 322,528 | 316,474 | ||
Total ALL | 1,606 | 1,374 | 909 | 1,606 | 1,635 |
Multifamily Real Estate [Member] | Purchased Impaired [Member] | |||||
Allowance for loan losses | |||||
Balance, end of period | 0 | 0 | |||
Total Loans | |||||
Total Loans | 2,092 | 1,555 | 3,004 | ||
Total ALL | 0 | 0 | 0 | 0 | |
Commercial & Industrial [Member] | |||||
Allowance for loan losses | |||||
Balance, beginning of the year | 3,163 | 2,610 | |||
Recoveries credited to allowance | 355 | 217 | |||
Loans charged off | (1,285) | (1,693) | |||
Provision charged to operations | 1,793 | 1,958 | |||
Balance, end of period | 4,026 | 3,092 | |||
Total Loans | |||||
Loans individually evaluated for impairment | 2,488 | 4,427 | |||
ALL individually evaluated for impairment | 47 | 460 | |||
Loans collectively evaluated for impairment | 465,212 | 418,826 | |||
ALL collectively evaluated for impairment | 3,979 | 2,632 | |||
Total Loans | 469,054 | 435,365 | 426,193 | ||
Total ALL | 3,163 | 2,610 | 4,026 | 3,163 | 3,092 |
Commercial & Industrial [Member] | Purchased Impaired [Member] | |||||
Allowance for loan losses | |||||
Balance, end of period | 0 | 0 | |||
Total Loans | |||||
Total Loans | 1,354 | 1,813 | 2,940 | ||
Total ALL | 0 | 0 | 0 | 0 | |
Residential 1-4 Family [Member] | |||||
Allowance for loan losses | |||||
Balance, beginning of the year | 5,414 | 5,607 | |||
Recoveries credited to allowance | 381 | 469 | |||
Loans charged off | (295) | (715) | |||
Provision charged to operations | 600 | (75) | |||
Balance, end of period | 6,100 | 5,286 | |||
Total Loans | |||||
Loans individually evaluated for impairment | 13,945 | 10,024 | |||
ALL individually evaluated for impairment | 345 | 256 | |||
Loans collectively evaluated for impairment | 960,707 | 957,411 | |||
ALL collectively evaluated for impairment | 5,755 | 5,030 | |||
Total Loans | 992,457 | 978,469 | 991,592 | ||
Total ALL | 5,414 | 5,607 | 6,100 | 5,414 | 5,286 |
Residential 1-4 Family [Member] | Purchased Impaired [Member] | |||||
Allowance for loan losses | |||||
Balance, end of period | 0 | 0 | |||
Total Loans | |||||
Total Loans | 17,805 | 21,159 | 24,157 | ||
Total ALL | 0 | 0 | 0 | 0 | |
Auto [Member] | |||||
Allowance for loan losses | |||||
Balance, beginning of the year | 1,703 | 1,297 | |||
Recoveries credited to allowance | 131 | 162 | |||
Loans charged off | (525) | (382) | |||
Provision charged to operations | (470) | 318 | |||
Balance, end of period | 839 | 1,395 | |||
Total Loans | |||||
Loans individually evaluated for impairment | 140 | 0 | |||
ALL individually evaluated for impairment | 1 | 0 | |||
Loans collectively evaluated for impairment | 244,435 | 216,420 | |||
ALL collectively evaluated for impairment | 838 | 1,395 | |||
Total Loans | 244,575 | 234,061 | 216,420 | ||
Total ALL | 1,703 | 1,297 | 839 | 1,703 | 1,395 |
Auto [Member] | Purchased Impaired [Member] | |||||
Allowance for loan losses | |||||
Balance, end of period | 0 | 0 | |||
Total Loans | |||||
Total Loans | 0 | 0 | 0 | ||
Total ALL | 0 | 0 | 0 | 0 | |
HELOC [Member] | |||||
Allowance for loan losses | |||||
Balance, beginning of the year | 2,934 | 2,675 | |||
Recoveries credited to allowance | 132 | 146 | |||
Loans charged off | (800) | (288) | |||
Provision charged to operations | (948) | 179 | |||
Balance, end of period | 1,318 | 2,712 | |||
Total Loans | |||||
Loans individually evaluated for impairment | 2,337 | 1,058 | |||
ALL individually evaluated for impairment | 81 | 4 | |||
Loans collectively evaluated for impairment | 515,342 | 509,225 | |||
ALL collectively evaluated for impairment | 1,237 | 2,708 | |||
Total Loans | 519,196 | 516,726 | 512,123 | ||
Total ALL | 2,934 | 2,675 | 1,318 | 2,934 | 2,712 |
HELOC [Member] | Purchased Impaired [Member] | |||||
Allowance for loan losses | |||||
Balance, end of period | 0 | 0 | |||
Total Loans | |||||
Total Loans | 1,517 | 1,791 | 1,840 | ||
Total ALL | 0 | 0 | 0 | 0 | |
Consumer and all other [Member] | |||||
Allowance for loan losses | |||||
Balance, beginning of the year | 1,644 | 2,069 | |||
Recoveries credited to allowance | 330 | 294 | |||
Loans charged off | (729) | (643) | |||
Provision charged to operations | 903 | 406 | |||
Balance, end of period | 2,148 | 2,126 | |||
Total Loans | |||||
Loans individually evaluated for impairment | 326 | 384 | |||
ALL individually evaluated for impairment | 1 | 7 | |||
Loans collectively evaluated for impairment | 408,745 | 283,054 | |||
ALL collectively evaluated for impairment | 2,147 | 2,119 | |||
Total Loans | 409,471 | 304,027 | 284,121 | ||
Total ALL | 1,644 | 2,069 | 2,148 | 1,644 | 2,126 |
Consumer and all other [Member] | Purchased Impaired [Member] | |||||
Allowance for loan losses | |||||
Balance, end of period | 0 | 0 | |||
Total Loans | |||||
Total Loans | 400 | $ 526 | 683 | ||
Total ALL | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 49
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Receivables Related Risk Rating Excluding Purchased Impaired Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | $ 5,941,098 | $ 5,671,462 | $ 5,510,385 |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 765,997 | 749,720 | 671,234 |
Commercial Real Estate - Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 831,880 | 860,086 | 874,582 |
Commercial Real Estate - Non-Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,370,745 | 1,270,480 | 1,217,646 |
Multifamily Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 337,723 | 322,528 | 316,474 |
Commercial & Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 469,054 | 435,365 | 426,193 |
Residential 1-4 Family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 992,457 | 978,469 | 991,592 |
Auto [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 244,575 | 234,061 | 216,420 |
HELOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 519,196 | 516,726 | 512,123 |
Consumer and all other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 409,471 | 304,027 | $ 284,121 |
Excluding Purchased Impaired [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 5,873,928 | 5,597,725 | |
Excluding Purchased Impaired [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 5,658,622 | 5,372,500 | |
Excluding Purchased Impaired [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 157,996 | 161,222 | |
Excluding Purchased Impaired [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 54,065 | 58,872 | |
Excluding Purchased Impaired [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 3,245 | 5,131 | |
Excluding Purchased Impaired [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 760,984 | 743,734 | |
Excluding Purchased Impaired [Member] | Construction and Land Development [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 684,002 | 663,067 | |
Excluding Purchased Impaired [Member] | Construction and Land Development [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 47,592 | 52,650 | |
Excluding Purchased Impaired [Member] | Construction and Land Development [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 29,274 | 27,980 | |
Excluding Purchased Impaired [Member] | Construction and Land Development [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 116 | 37 | |
Excluding Purchased Impaired [Member] | Commercial Real Estate - Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 811,188 | 832,698 | |
Excluding Purchased Impaired [Member] | Commercial Real Estate - Owner Occupied [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 779,574 | 800,979 | |
Excluding Purchased Impaired [Member] | Commercial Real Estate - Owner Occupied [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 25,352 | 20,856 | |
Excluding Purchased Impaired [Member] | Commercial Real Estate - Owner Occupied [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 6,262 | 8,931 | |
Excluding Purchased Impaired [Member] | Commercial Real Estate - Owner Occupied [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 1,932 | |
Excluding Purchased Impaired [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,352,448 | 1,256,961 | |
Excluding Purchased Impaired [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,317,192 | 1,228,956 | |
Excluding Purchased Impaired [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 30,997 | 22,341 | |
Excluding Purchased Impaired [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 4,259 | 5,664 | |
Excluding Purchased Impaired [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Excluding Purchased Impaired [Member] | Multifamily Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 335,631 | 320,973 | |
Excluding Purchased Impaired [Member] | Multifamily Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 324,718 | 315,128 | |
Excluding Purchased Impaired [Member] | Multifamily Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 7,136 | 2,017 | |
Excluding Purchased Impaired [Member] | Multifamily Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 3,777 | 3,828 | |
Excluding Purchased Impaired [Member] | Multifamily Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Excluding Purchased Impaired [Member] | Commercial & Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 467,700 | 433,552 | |
Excluding Purchased Impaired [Member] | Commercial & Industrial [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 449,708 | 414,333 | |
Excluding Purchased Impaired [Member] | Commercial & Industrial [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 15,953 | 16,724 | |
Excluding Purchased Impaired [Member] | Commercial & Industrial [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 2,039 | 2,396 | |
Excluding Purchased Impaired [Member] | Commercial & Industrial [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 99 | |
Excluding Purchased Impaired [Member] | Residential 1-4 Family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 974,652 | 957,310 | |
Excluding Purchased Impaired [Member] | Residential 1-4 Family [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 943,154 | 912,839 | |
Excluding Purchased Impaired [Member] | Residential 1-4 Family [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 22,467 | 34,728 | |
Excluding Purchased Impaired [Member] | Residential 1-4 Family [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 6,876 | 8,037 | |
Excluding Purchased Impaired [Member] | Residential 1-4 Family [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 2,155 | 1,706 | |
Excluding Purchased Impaired [Member] | Auto [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 244,575 | 234,061 | |
Excluding Purchased Impaired [Member] | Auto [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 242,596 | 230,670 | |
Excluding Purchased Impaired [Member] | Auto [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,698 | 3,109 | |
Excluding Purchased Impaired [Member] | Auto [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 103 | 194 | |
Excluding Purchased Impaired [Member] | Auto [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 178 | 88 | |
Excluding Purchased Impaired [Member] | HELOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 517,679 | 514,935 | |
Excluding Purchased Impaired [Member] | HELOC [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 511,936 | 507,514 | |
Excluding Purchased Impaired [Member] | HELOC [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 3,718 | 4,801 | |
Excluding Purchased Impaired [Member] | HELOC [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,438 | 1,611 | |
Excluding Purchased Impaired [Member] | HELOC [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 587 | 1,009 | |
Excluding Purchased Impaired [Member] | Consumer and all other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 409,071 | 303,501 | |
Excluding Purchased Impaired [Member] | Consumer and all other [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 405,742 | 299,014 | |
Excluding Purchased Impaired [Member] | Consumer and all other [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 3,083 | 3,996 | |
Excluding Purchased Impaired [Member] | Consumer and all other [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 37 | 231 | |
Excluding Purchased Impaired [Member] | Consumer and all other [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | $ 209 | $ 260 |
LOANS AND ALLOWANCE FOR LOAN 50
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Receivables Related Risk Rating Including Purchased Impaired Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | $ 5,941,098 | $ 5,671,462 | $ 5,510,385 |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 765,997 | 749,720 | 671,234 |
Commercial Real Estate - Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 831,880 | 860,086 | 874,582 |
Commercial Real Estate - Non-Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 1,370,745 | 1,270,480 | 1,217,646 |
Multifamily Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 337,723 | 322,528 | 316,474 |
Commercial & Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 469,054 | 435,365 | 426,193 |
Residential 1-4 Family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 992,457 | 978,469 | 991,592 |
HELOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 519,196 | 516,726 | 512,123 |
Consumer and all other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 409,471 | 304,027 | 284,121 |
Purchased Impaired [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 67,170 | 73,737 | 87,841 |
Purchased Impaired [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 21,986 | 22,339 | |
Purchased Impaired [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 32,386 | 33,862 | |
Purchased Impaired [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 11,507 | 15,760 | |
Purchased Impaired [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 1,291 | 1,776 | |
Purchased Impaired [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 5,013 | 5,986 | 8,397 |
Purchased Impaired [Member] | Construction and Land Development [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 1,071 | 2,059 | |
Purchased Impaired [Member] | Construction and Land Development [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 2,432 | 1,778 | |
Purchased Impaired [Member] | Construction and Land Development [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 1,269 | 1,908 | |
Purchased Impaired [Member] | Construction and Land Development [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 241 | 241 | |
Purchased Impaired [Member] | Commercial Real Estate - Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 20,692 | 27,388 | 29,838 |
Purchased Impaired [Member] | Commercial Real Estate - Owner Occupied [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 5,407 | 5,260 | |
Purchased Impaired [Member] | Commercial Real Estate - Owner Occupied [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 9,813 | 15,530 | |
Purchased Impaired [Member] | Commercial Real Estate - Owner Occupied [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 5,472 | 6,598 | |
Purchased Impaired [Member] | Commercial Real Estate - Owner Occupied [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 0 | 0 | |
Purchased Impaired [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 18,297 | 13,519 | 16,982 |
Purchased Impaired [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 5,335 | 4,442 | |
Purchased Impaired [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 12,400 | 7,827 | |
Purchased Impaired [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 562 | 1,250 | |
Purchased Impaired [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 0 | 0 | |
Purchased Impaired [Member] | Multifamily Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 2,092 | 1,555 | 3,004 |
Purchased Impaired [Member] | Multifamily Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 350 | 356 | |
Purchased Impaired [Member] | Multifamily Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 1,742 | 1,199 | |
Purchased Impaired [Member] | Multifamily Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 0 | 0 | |
Purchased Impaired [Member] | Multifamily Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 0 | 0 | |
Purchased Impaired [Member] | Commercial & Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 1,354 | 1,813 | 2,940 |
Purchased Impaired [Member] | Commercial & Industrial [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 104 | 144 | |
Purchased Impaired [Member] | Commercial & Industrial [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 434 | 359 | |
Purchased Impaired [Member] | Commercial & Industrial [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 816 | 1,289 | |
Purchased Impaired [Member] | Commercial & Industrial [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 0 | 21 | |
Purchased Impaired [Member] | Residential 1-4 Family [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 17,805 | 21,159 | 24,157 |
Purchased Impaired [Member] | Residential 1-4 Family [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 8,677 | 9,098 | |
Purchased Impaired [Member] | Residential 1-4 Family [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 5,224 | 6,380 | |
Purchased Impaired [Member] | Residential 1-4 Family [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 3,285 | 4,605 | |
Purchased Impaired [Member] | Residential 1-4 Family [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 619 | 1,076 | |
Purchased Impaired [Member] | HELOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 1,517 | 1,791 | 1,840 |
Purchased Impaired [Member] | HELOC [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 861 | 923 | |
Purchased Impaired [Member] | HELOC [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 146 | 410 | |
Purchased Impaired [Member] | HELOC [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 79 | 20 | |
Purchased Impaired [Member] | HELOC [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 431 | 438 | |
Purchased Impaired [Member] | Consumer and all other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 400 | 526 | $ 683 |
Purchased Impaired [Member] | Consumer and all other [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 181 | 57 | |
Purchased Impaired [Member] | Consumer and all other [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 195 | 379 | |
Purchased Impaired [Member] | Consumer and all other [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 24 | 90 | |
Purchased Impaired [Member] | Consumer and all other [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment, net of deferred fees and costs | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 51
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Acquired Loan Portfolio and Accretable Yield) (Details) - Purchased Impaired [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Accretable Yield | ||
Balance at beginning of period | $ 22,139 | $ 28,956 |
Additions | 0 | 0 |
Accretion | (2,792) | (3,106) |
Reclass of nonaccretable difference due to improvement in expected cash flows | 3,450 | 2,976 |
Other, net | (2,139) | (4,784) |
Balance at end of period | $ 20,658 | $ 24,042 |
INTANGIBLE ASSETS (Narrative) (
INTANGIBLE ASSETS (Narrative) (Details) - USD ($) | May 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Jan. 01, 2014 |
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 297,659,000 | $ 297,659,000 | $ 293,522,000 | ||||
Impairment charges | 0 | ||||||
Intangible assets, amortization expense | $ 1,745,000 | $ 2,138,000 | $ 3,625,000 | $ 4,361,000 | |||
StellarOne [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Acquired intangible assets | $ 29,600,000 | ||||||
Goodwill | $ 234,100,000 | ||||||
ODCM [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 4,100,000 | ||||||
Amortizable intangible assets | $ 3,800,000 | ||||||
Acquired amortizable assets, useful life | 10 years | ||||||
Core Deposits [Member] | Minimum [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Intangible assets, amortization period | 4 years | ||||||
Core Deposits [Member] | Maximum [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Intangible assets, amortization period | 14 years |
INTANGIBLE ASSETS (Estimated Re
INTANGIBLE ASSETS (Estimated Remaining Amortization Expense of Core Deposit Intangibles) (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
For the remaining six months of 2016 | $ 3,495 |
For the year ending December 31, 2017 | 5,966 |
For the year ending December 31, 2018 | 4,520 |
For the year ending December 31, 2019 | 3,469 |
For the year ending December 31, 2020 | 2,404 |
For the year ending December 31, 2021 | 1,411 |
Thereafter | 2,184 |
Total estimated amortization expense | $ 23,449 |
BORROWINGS (Short-Term Borrowin
BORROWINGS (Short-Term Borrowings) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | ||
Securities sold under agreements to repurchase | $ 121,262 | $ 84,977 |
Other short-term borrowings | 557,000 | 304,000 |
Total short-term borrowings | 678,262 | 388,977 |
Maximum month-end outstanding balance | 678,262 | 445,761 |
Average outstanding balance during the period | $ 564,443 | $ 379,783 |
Average interest rate during the period | 0.47% | 0.25% |
Average interest rate at end of period | 0.48% | 0.27% |
Other short-term borrowings: | ||
Federal funds purchased | $ 0 | $ 0 |
FHLB | 541,000 | 304,000 |
Other lines of credit | $ 16,000 | $ 0 |
BORROWINGS (Narrative) (Details
BORROWINGS (Narrative) (Details) $ in Thousands | Jan. 01, 2014USD ($) | Aug. 23, 2012USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)acquisition | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) |
Subordinated Borrowing [Line Items] | |||||||
Remaining available balance for the federal funds lines | $ 175,000 | $ 175,000 | $ 175,000 | ||||
Maximum collateral dependent line of credit with the FHLB | 2,300,000 | 2,300,000 | 1,500,000 | ||||
Prepayment penalty | $ 19,600 | ||||||
Prepayment penalty amortization expense | 466 | $ 455 | 930 | $ 902 | |||
Carrying value of the loans and securities pledged as collateral for FHLB | 1,900,000 | 1,900,000 | $ 1,900,000 | ||||
Trust Preferred Capital Notes [Member] | |||||||
Subordinated Borrowing [Line Items] | |||||||
Trust preferred capital notes principal balance | $ 90,500 | ||||||
Acquisitions, Prior To 2006 [Member] | |||||||
Subordinated Borrowing [Line Items] | |||||||
Number of bank acquisitions | acquisition | 2 | ||||||
Trust preferred capital notes principal balance | $ 58,500 | ||||||
StellarOne [Member] | |||||||
Subordinated Borrowing [Line Items] | |||||||
Long-term FHLB borrowings | $ 70,000 | 60,000 | 60,000 | ||||
Remaining fair value premium on acquired FHLB advances | 875 | 875 | |||||
StellarOne [Member] | Trust Preferred Capital Notes [Member] | |||||||
Subordinated Borrowing [Line Items] | |||||||
Trust preferred capital notes principal balance | $ 32,000 | ||||||
Remaining fair value discount on acquired notes | $ 6,900 | $ 6,900 |
BORROWINGS (Trust Preferred Cap
BORROWINGS (Trust Preferred Capital Notes Qualify for Tier 1 Capital) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Investment | $ 93,433 | $ 84,846 |
Trust Preferred Capital Notes [Member] | ||
Debt Instrument [Line Items] | ||
Trust preferred capital notes principal balance | 90,500 | |
Investment | 2,801 | |
Statutory Trust I [Member] | ||
Debt Instrument [Line Items] | ||
Trust preferred capital notes principal balance | 22,500 | |
Investment | $ 696 | |
Rate | 3.40% | |
Maturity | Jun. 17, 2034 | |
Statutory Trust I [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Spread to 3-Month LIBOR | 2.75% | |
Statutory Trust II [Member] | ||
Debt Instrument [Line Items] | ||
Trust preferred capital notes principal balance | $ 36,000 | |
Investment | $ 1,114 | |
Rate | 2.05% | |
Maturity | Jun. 15, 2036 | |
Statutory Trust II [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Spread to 3-Month LIBOR | 1.40% | |
VFG Limited Liability Trust I Indenture [Member] | ||
Debt Instrument [Line Items] | ||
Trust preferred capital notes principal balance | $ 20,000 | |
Investment | $ 619 | |
Rate | 3.38% | |
Maturity | Mar. 18, 2034 | |
VFG Limited Liability Trust I Indenture [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Spread to 3-Month LIBOR | 2.73% | |
FNB Statutory Trust II Indenture [Member] | ||
Debt Instrument [Line Items] | ||
Trust preferred capital notes principal balance | $ 12,000 | |
Investment | $ 372 | |
Rate | 3.75% | |
Maturity | Jun. 26, 2033 | |
FNB Statutory Trust II Indenture [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Spread to 3-Month LIBOR | 3.10% |
BORROWINGS (Advances from the F
BORROWINGS (Advances from the FHLB) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Federal Home Loan Bank, Advances [Line Items] | ||
Advance Amount | $ 200,000 | $ 200,000 |
Adjustable Rate Credit One [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest Rate | 1.09% | 1.05% |
Maturity Date | Aug. 23, 2022 | Aug. 23, 2022 |
Advance Amount | $ 55,000 | $ 55,000 |
Adjustable Rate Credit One [Member] | LIBOR [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Spread to 3-Month LIBOR | 0.44% | 0.44% |
Adjustable Rate Credit Two [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest Rate | 1.11% | 1.07% |
Maturity Date | Nov. 23, 2022 | Nov. 23, 2022 |
Advance Amount | $ 65,000 | $ 65,000 |
Adjustable Rate Credit Two [Member] | LIBOR [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Spread to 3-Month LIBOR | 0.45% | 0.45% |
Adjustable Rate Credit Three [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest Rate | 1.11% | 1.07% |
Maturity Date | Nov. 23, 2022 | Nov. 23, 2022 |
Advance Amount | $ 10,000 | $ 10,000 |
Adjustable Rate Credit Three [Member] | LIBOR [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Spread to 3-Month LIBOR | 0.45% | 0.45% |
Adjustable Rate Credit Four [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest Rate | 1.11% | 1.07% |
Maturity Date | Nov. 23, 2022 | Nov. 23, 2022 |
Advance Amount | $ 10,000 | $ 10,000 |
Adjustable Rate Credit Four [Member] | LIBOR [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Spread to 3-Month LIBOR | 0.45% | 0.45% |
Fixed Rate One [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest Rate | 3.62% | 3.62% |
Maturity Date | Nov. 28, 2017 | Nov. 28, 2017 |
Advance Amount | $ 10,000 | $ 10,000 |
Fixed Rate Two [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest Rate | 3.75% | 3.75% |
Maturity Date | Jul. 30, 2018 | Jul. 30, 2018 |
Advance Amount | $ 5,000 | $ 5,000 |
Fixed Rate Three [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest Rate | 3.97% | 3.97% |
Maturity Date | Jul. 30, 2018 | Jul. 30, 2018 |
Advance Amount | $ 5,000 | $ 5,000 |
Fixed Rate Hybrid One [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest Rate | 2.11% | 2.11% |
Maturity Date | Oct. 5, 2016 | Oct. 5, 2016 |
Advance Amount | $ 25,000 | $ 25,000 |
Fixed Rate Hybrid Two [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Interest Rate | 0.91% | 0.91% |
Maturity Date | Jul. 25, 2016 | Jul. 25, 2016 |
Advance Amount | $ 15,000 | $ 15,000 |
BORROWINGS (Contractual Maturit
BORROWINGS (Contractual Maturities of Long-Term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Premium (Discount) | ||
For the remaining six months of 2016 | $ 190 | |
2,017 | 170 | |
2,018 | (143) | |
2,019 | (286) | |
2,020 | (301) | |
2,021 | (316) | |
Thereafter | (5,306) | |
Total Long-term borrowings | (5,992) | |
Prepayment Penalty | ||
For the remaining six months of 2016 | (952) | |
2,017 | (1,922) | |
2,018 | (1,970) | |
2,019 | (2,018) | |
2,020 | (2,074) | |
2,021 | (2,119) | |
Thereafter | (1,707) | |
Total Long-term borrowings | (12,762) | |
Total Long-term Borrowings | ||
For the remaining six months of 2016 | 39,238 | |
2,017 | 8,248 | |
2,018 | 7,887 | |
2,019 | (2,304) | |
2,020 | (2,375) | |
2,021 | (2,435) | |
Thereafter | 226,288 | |
Total Long-term borrowings | 274,547 | $ 291,198 |
Trust Preferred Capital Notes [Member] | ||
Total Long-term Borrowings, Gross | ||
Thereafter | 93,301 | |
Total Long-term borrowings | 93,301 | |
FHLB Advances [Member] | ||
Total Long-term Borrowings, Gross | ||
For the remaining six months of 2016 | 40,000 | |
2,017 | 10,000 | |
2,018 | 10,000 | |
Thereafter | 140,000 | |
Total Long-term borrowings | $ 200,000 |
COMMITMENTS AND CONTINGENCIES59
COMMITMENTS AND CONTINGENCIES (Balances of Commitments and Contingencies) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Commitments with off-balance sheet risk: | ||
Total commitments with off-balance sheet risk | $ 1,758,585 | $ 1,747,090 |
Commitments with balance sheet risk: | ||
Loans held for sale | 38,114 | 36,030 |
Total other commitments | 1,796,699 | 1,783,120 |
Commitments to Extend Credit [Member] | ||
Commitments with off-balance sheet risk: | ||
Total commitments with off-balance sheet risk | 1,606,131 | 1,557,350 |
Standby Letters of Credit [Member] | ||
Commitments with off-balance sheet risk: | ||
Total commitments with off-balance sheet risk | 80,593 | 139,371 |
Interest Rate Lock Commitments [Member] | ||
Commitments with off-balance sheet risk: | ||
Total commitments with off-balance sheet risk | $ 71,861 | $ 50,369 |
COMMITMENTS AND CONTINGENCIES60
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Other Commitments [Line Items] | ||
Daily average required reserves | $ 50,400 | $ 48,700 |
Deposits with other financial institutions | 50,200 | |
Uninsured deposits with other financial institutions | 15,800 | |
Indemnification reserves | 366 | $ 450 |
Loan Swaps [Member] | ||
Other Commitments [Line Items] | ||
Deposits with other financial institutions serves as collateral | 14,400 | |
Cash Flow Hedges [Member] | ||
Other Commitments [Line Items] | ||
Deposits with other financial institutions serves as collateral | $ 18,400 |
DERIVATIVES (Narrative) (Detail
DERIVATIVES (Narrative) (Details) $ in Thousands | Jun. 13, 2016USD ($)derivative_instrument | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
Minimum [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate lock commitments period | 30 days | ||
Maximum [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate lock commitments period | 120 days | ||
Cash Flow Hedges [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Number of interest rate swaps terminated | derivative_instrument | 3 | ||
Unrealized gain within accumulated other comprehensive income, to be reclassified into earnings | $ 1,300 | ||
Reclassification of gain (loss) from accumulated other comprehensive income to earnings, estimate of time to transfer | 3 years | ||
Estimated net amount of gains expected to be reclassified into earnings within the next twelve months | $ 373 | ||
Fair Value Hedges [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Aggregate notional amount of the hedged items | 43,800 | $ 61,200 | |
Fair value of aggregate notional amount of the hedged items | $ 3,600 | $ 689 |
DERIVATIVES (Summary of the Der
DERIVATIVES (Summary of the Derivatives) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Interest Rate Lock Commitments [Member] | ||
Summary of the derivative designated as a cash flow hedge | ||
Derivative Assets | $ 1,712 | $ 701 |
Designated as Accounting Hedges [Member] | Cash Flow Hedges [Member] | ||
Summary of the derivative designated as a cash flow hedge | ||
Notional or Contractual Amount | 220,500 | 263,000 |
Derivative Assets | 382 | 946 |
Derivative Liabilities | 17,263 | 10,352 |
Collateral Pledged | 21,774 | 14,449 |
Designated as Accounting Hedges [Member] | Fair Value Hedges [Member] | ||
Summary of the derivative designated as a cash flow hedge | ||
Notional or Contractual Amount | 43,845 | 61,150 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 3,816 | 888 |
Collateral Pledged | 0 | 0 |
Not Designated as Accounting Hedges [Member] | Interest Rate Lock Commitments [Member] | ||
Summary of the derivative designated as a cash flow hedge | ||
Notional or Contractual Amount | 71,861 | 50,369 |
Derivative Assets | 1,712 | 701 |
Derivative Liabilities | 0 | 0 |
Collateral Pledged | 0 | 0 |
Not Designated as Accounting Hedges [Member] | Pay Fixed - Receive Floating Interest Rate Swaps [Member] | ||
Summary of the derivative designated as a cash flow hedge | ||
Notional or Contractual Amount | 218,614 | 138,969 |
Derivative Assets | 11,948 | 3,758 |
Derivative Liabilities | 0 | 0 |
Collateral Pledged | 0 | 0 |
Not Designated as Accounting Hedges [Member] | Pay Floating - Receive Fixed Interest Rate Swaps [Member] | ||
Summary of the derivative designated as a cash flow hedge | ||
Notional or Contractual Amount | 218,614 | 138,969 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 11,948 | 3,758 |
Collateral Pledged | $ 15,885 | $ 5,983 |
ACCUMULATED OTHER COMPREHENSI63
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Change in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
AOCI Attributable to Parent, Net of Tax | ||||
Beginning balance | $ 995,367 | $ 977,169 | ||
Unrealized gain transferred from AFS to HTM | $ 0 | 0 | ||
Other comprehensive income (loss) | $ 2,404 | (5,244) | 2,463 | (2,951) |
Amounts reclassified from accumulated other comprehensive income | 136 | (222) | 184 | (75) |
Net current period other comprehensive income (loss) | 2,540 | (5,466) | 2,647 | (3,026) |
Ending balance | 989,201 | 988,134 | 989,201 | 988,134 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Beginning balance | 6,359 | 14,695 | 6,252 | 12,255 |
Net current period other comprehensive income (loss) | 2,647 | (3,026) | ||
Ending balance | 8,899 | 9,229 | 8,899 | 9,229 |
Unrealized Gains (Losses) on AFS Securities [Member] | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Beginning balance | 10,716 | 21,097 | 7,777 | 17,439 |
Unrealized gain transferred from AFS to HTM | (5,251) | (5,251) | ||
Other comprehensive income (loss) | 3,698 | (6,845) | 6,730 | (3,062) |
Amounts reclassified from accumulated other comprehensive income | (2) | (263) | (95) | (388) |
Net current period other comprehensive income (loss) | 3,696 | (7,108) | 6,635 | (3,450) |
Ending balance | 14,412 | 8,738 | 14,412 | 8,738 |
Unrealized Gain for AFS Securities Transferred to HTM [Member] | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Beginning balance | 4,140 | 0 | 4,432 | 0 |
Unrealized gain transferred from AFS to HTM | 5,251 | 5,251 | ||
Other comprehensive income (loss) | (287) | (208) | (579) | (208) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Net current period other comprehensive income (loss) | (287) | (208) | (579) | (208) |
Ending balance | 3,853 | 5,043 | 3,853 | 5,043 |
Change in Fair Value of Cash Flow Hedge [Member] | ||||
AOCI Attributable to Parent, Net of Tax | ||||
Beginning balance | (8,497) | (6,402) | (5,957) | (5,184) |
Unrealized gain transferred from AFS to HTM | 0 | 0 | ||
Other comprehensive income (loss) | (1,007) | 1,809 | (3,688) | 319 |
Amounts reclassified from accumulated other comprehensive income | 138 | 41 | 279 | 313 |
Net current period other comprehensive income (loss) | (869) | 1,850 | (3,409) | 632 |
Ending balance | $ (9,366) | $ (4,552) | $ (9,366) | $ (4,552) |
ACCUMULATED OTHER COMPREHENSI64
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Equity [Abstract] | ||||
Gains on securities transactions, net | $ 3 | $ 404 | $ 146 | $ 597 |
Tax expense (benefit) related to (gains) losses on the sale of securities | 1 | 142 | 51 | 209 |
Reclassification of unrealized gains (losses) on cash flow hedges | 212 | 63 | 429 | 482 |
Tax expense (benefit) related to (gains) losses on the cash flow hedges | $ 74 | $ 22 | $ 150 | $ 169 |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)participant | Jun. 30, 2015USD ($) | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |||||
Weighted average pull through rate | 80.00% | 80.00% | |||
Minimum number of market participants (more than) | participant | 4,000 | ||||
Level 3 Fair value measurements weighted average related to impaired loans | 3.00% | 7.00% | |||
Level 3 fair value measurements weighted average related to other real estate owned | 31.00% | 32.00% | |||
Total valuation expenses related to OREO properties | $ | $ 274 | $ 710 | $ 400 | $ 1,300 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Securities available for sale | $ 949,663 | $ 903,292 |
Loans held for sale | 38,114 | 36,030 |
Interest rate swap | 11,948 | 3,758 |
Cash flow hedges | 382 | 946 |
LIABILITIES | ||
Interest rate swap | 11,948 | 3,758 |
Cash flow hedges | 17,263 | 10,352 |
Fair value hedges | 3,816 | 888 |
Interest Rate Lock Commitments [Member] | ||
ASSETS | ||
Interest rate lock commitments | 1,712 | 701 |
Obligations of States and Political Subdivisions [Member] | ||
ASSETS | ||
Securities available for sale | 272,786 | 268,079 |
Corporate and Other Bonds [Member] | ||
ASSETS | ||
Securities available for sale | 108,579 | 75,979 |
Mortgage-Backed Securities [Member] | ||
ASSETS | ||
Securities available for sale | 554,964 | 548,171 |
Other Securities [Member] | ||
ASSETS | ||
Securities available for sale | 13,334 | 11,063 |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ||
ASSETS | ||
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
LIABILITIES | ||
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Interest Rate Lock Commitments [Member] | ||
ASSETS | ||
Interest rate lock commitments | 0 | 0 |
Significant Other Observable Inputs Level 2 [Member] | ||
ASSETS | ||
Securities available for sale | 949,663 | 903,292 |
Loans held for sale | 38,114 | 36,030 |
Interest rate swap | 11,948 | 3,758 |
Cash flow hedges | 382 | 946 |
LIABILITIES | ||
Interest rate swap | 11,948 | 3,758 |
Cash flow hedges | 17,263 | 10,352 |
Fair value hedges | 3,816 | 888 |
Significant Other Observable Inputs Level 2 [Member] | Interest Rate Lock Commitments [Member] | ||
ASSETS | ||
Interest rate lock commitments | 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | ||
ASSETS | ||
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
LIABILITIES | ||
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | Interest Rate Lock Commitments [Member] | ||
ASSETS | ||
Interest rate lock commitments | 1,712 | 701 |
Recurring [Member] | ||
ASSETS | ||
Loans held for sale | 38,114 | 36,030 |
Interest rate swap | 11,948 | 3,758 |
Cash flow hedges | 382 | 946 |
LIABILITIES | ||
Interest rate swap | 11,948 | 3,758 |
Cash flow hedges | 17,263 | 10,352 |
Fair value hedges | 3,816 | 888 |
Recurring [Member] | Interest Rate Lock Commitments [Member] | ||
ASSETS | ||
Interest rate lock commitments | 1,712 | 701 |
Recurring [Member] | Obligations of States and Political Subdivisions [Member] | ||
ASSETS | ||
Securities available for sale | 272,786 | 268,079 |
Recurring [Member] | Corporate and Other Bonds [Member] | ||
ASSETS | ||
Securities available for sale | 108,579 | 75,979 |
Recurring [Member] | Mortgage-Backed Securities [Member] | ||
ASSETS | ||
Securities available for sale | 554,964 | 548,171 |
Recurring [Member] | Other Securities [Member] | ||
ASSETS | ||
Securities available for sale | 13,334 | 11,063 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ||
ASSETS | ||
Loans held for sale | 0 | 0 |
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
LIABILITIES | ||
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Interest Rate Lock Commitments [Member] | ||
ASSETS | ||
Interest rate lock commitments | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Obligations of States and Political Subdivisions [Member] | ||
ASSETS | ||
Securities available for sale | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Corporate and Other Bonds [Member] | ||
ASSETS | ||
Securities available for sale | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Mortgage-Backed Securities [Member] | ||
ASSETS | ||
Securities available for sale | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Other Securities [Member] | ||
ASSETS | ||
Securities available for sale | 0 | 0 |
Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ||
ASSETS | ||
Loans held for sale | 38,114 | 36,030 |
Interest rate swap | 11,948 | 3,758 |
Cash flow hedges | 382 | 946 |
LIABILITIES | ||
Interest rate swap | 11,948 | 3,758 |
Cash flow hedges | 17,263 | 10,352 |
Fair value hedges | 3,816 | 888 |
Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | Interest Rate Lock Commitments [Member] | ||
ASSETS | ||
Interest rate lock commitments | 0 | 0 |
Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | Obligations of States and Political Subdivisions [Member] | ||
ASSETS | ||
Securities available for sale | 272,786 | 268,079 |
Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | Corporate and Other Bonds [Member] | ||
ASSETS | ||
Securities available for sale | 108,579 | 75,979 |
Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | Mortgage-Backed Securities [Member] | ||
ASSETS | ||
Securities available for sale | 554,964 | 548,171 |
Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | Other Securities [Member] | ||
ASSETS | ||
Securities available for sale | 13,334 | 11,063 |
Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
ASSETS | ||
Loans held for sale | 0 | 0 |
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
LIABILITIES | ||
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | Interest Rate Lock Commitments [Member] | ||
ASSETS | ||
Interest rate lock commitments | 1,712 | 701 |
Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | Obligations of States and Political Subdivisions [Member] | ||
ASSETS | ||
Securities available for sale | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | Corporate and Other Bonds [Member] | ||
ASSETS | ||
Securities available for sale | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | Mortgage-Backed Securities [Member] | ||
ASSETS | ||
Securities available for sale | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | Other Securities [Member] | ||
ASSETS | ||
Securities available for sale | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Sche67
FAIR VALUE MEASUREMENTS (Schedule of Financial Assets Measured at Fair Value on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Other real estate owned | $ 13,381 | $ 15,299 |
Nonrecurring [Member] | ||
ASSETS | ||
Impaired loans | 3,585 | 2,214 |
Other real estate owned | 13,381 | 15,299 |
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ||
ASSETS | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ||
ASSETS | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ||
ASSETS | ||
Impaired loans | 3,585 | 2,214 |
Other real estate owned | $ 13,381 | $ 15,299 |
FAIR VALUE MEASUREMENTS (Carryi
FAIR VALUE MEASUREMENTS (Carrying Values and Estimated Fair Values of the Company's Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 217,034 | $ 142,660 |
Securities available for sale, at fair value | 949,663 | 903,292 |
Held to maturity securities | 211,949 | 209,437 |
Restricted stock | 62,206 | 51,828 |
Loans held for sale | 38,114 | 36,030 |
Net loans | 5,938,305 | 5,671,155 |
Derivatives: | ||
Interest rate swap | 11,948 | 3,758 |
Cash flow hedges | 382 | 946 |
Accrued interest receivable | 21,664 | 20,760 |
Bank owned life insurance | 176,413 | 173,687 |
LIABILITIES | ||
Deposits | 6,098,700 | 5,957,484 |
Borrowings | 932,278 | 659,364 |
Accrued interest payable | 1,595 | 1,578 |
Derivatives: | ||
Interest rate swap | 11,948 | 3,758 |
Cash flow hedges | 17,263 | 10,352 |
Fair value hedges | 3,816 | 888 |
Interest Rate Lock Commitments [Member] | ||
Derivatives: | ||
Interest rate lock commitments | 1,712 | 701 |
Carrying Value [Member] | ||
ASSETS | ||
Cash and cash equivalents | 217,034 | 142,660 |
Securities available for sale, at fair value | 949,663 | 903,292 |
Held to maturity securities | 202,917 | 205,374 |
Restricted stock | 62,206 | 51,828 |
Loans held for sale | 38,114 | 36,030 |
Net loans | 5,906,024 | 5,637,415 |
Derivatives: | ||
Interest rate swap | 11,948 | 3,758 |
Cash flow hedges | 382 | 946 |
Accrued interest receivable | 21,664 | 20,760 |
Bank owned life insurance | 176,413 | 173,687 |
LIABILITIES | ||
Deposits | 6,095,826 | 5,963,936 |
Borrowings | 952,809 | 680,175 |
Accrued interest payable | 1,595 | 1,578 |
Derivatives: | ||
Interest rate swap | 11,948 | 3,758 |
Cash flow hedges | 17,263 | 10,352 |
Fair value hedges | 3,816 | 888 |
Carrying Value [Member] | Interest Rate Lock Commitments [Member] | ||
Derivatives: | ||
Interest rate lock commitments | 1,712 | 701 |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ||
ASSETS | ||
Cash and cash equivalents | 217,034 | 142,660 |
Securities available for sale, at fair value | 0 | 0 |
Held to maturity securities | 0 | 0 |
Restricted stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Net loans | 0 | 0 |
Derivatives: | ||
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Bank owned life insurance | 0 | 0 |
LIABILITIES | ||
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
Derivatives: | ||
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Interest Rate Lock Commitments [Member] | ||
Derivatives: | ||
Interest rate lock commitments | 0 | 0 |
Significant Other Observable Inputs Level 2 [Member] | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale, at fair value | 949,663 | 903,292 |
Held to maturity securities | 211,949 | 209,437 |
Restricted stock | 62,206 | 51,828 |
Loans held for sale | 38,114 | 36,030 |
Net loans | 0 | 0 |
Derivatives: | ||
Interest rate swap | 11,948 | 3,758 |
Cash flow hedges | 382 | 946 |
Accrued interest receivable | 21,664 | 20,760 |
Bank owned life insurance | 176,413 | 173,687 |
LIABILITIES | ||
Deposits | 6,098,700 | 5,957,484 |
Borrowings | 932,278 | 659,364 |
Accrued interest payable | 1,595 | 1,578 |
Derivatives: | ||
Interest rate swap | 11,948 | 3,758 |
Cash flow hedges | 17,263 | 10,352 |
Fair value hedges | 3,816 | 888 |
Significant Other Observable Inputs Level 2 [Member] | Interest Rate Lock Commitments [Member] | ||
Derivatives: | ||
Interest rate lock commitments | 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale, at fair value | 0 | 0 |
Held to maturity securities | 0 | 0 |
Restricted stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Net loans | 5,938,305 | 5,671,155 |
Derivatives: | ||
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Bank owned life insurance | 0 | 0 |
LIABILITIES | ||
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
Derivatives: | ||
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Significant Unobservable Inputs Level 3 [Member] | Interest Rate Lock Commitments [Member] | ||
Derivatives: | ||
Interest rate lock commitments | $ 1,712 | $ 701 |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive stock awards, shares | 407 | 53,625 | 1,116 | 56,151 |
EARNINGS PER SHARE (Reconciliat
EARNINGS PER SHARE (Reconciliation of the Denominators of the Basic and Diluted EPS Computations) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Basic EPS, Net Income Available to Common Stockholders (Numerator) | $ 19,337 | $ 15,348 | $ 36,298 | $ 31,049 |
Basic EPS, Weighted Average Shares (Denominator) | 43,746,583 | 45,128,698 | 43,998,929 | 45,117,396 |
Basic EPS, Per Share Amount (in usd per share) | $ 0.44 | $ 0.34 | $ 0.82 | $ 0.69 |
Effect of dilutive stock awards, Weighted Average Shares (Denominator) | 77,000 | 81,000 | 77,000 | 82,000 |
Diluted EPS, Net Income Available to Common Stockholders (Numerator) | $ 19,337 | $ 15,348 | $ 36,298 | $ 31,049 |
Diluted EPS, Weighted Average Common Shares | 43,824,183 | 45,209,814 | 44,075,706 | 45,198,727 |
Diluted EPS, Per Share Amount (in usd per share) | $ 0.44 | $ 0.34 | $ 0.82 | $ 0.69 |
SEGMENT REPORTING DISCLOSURES71
SEGMENT REPORTING DISCLOSURES (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016store | Jun. 30, 2015 | Jun. 30, 2016segmentstoreentity | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 2 | |||
Number of subsidiary bank | entity | 1 | |||
Number of retail locations | store | 120 | 120 | ||
Warehouse Line of Credit [Member] | LIBOR [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Spread on LIBOR | 0.15% | 0.15% | 0.15% | 0.15% |
Mortgage banking segment interest - floor | 0.00% | 0.00% | 0.00% | 0.00% |
SEGMENT REPORTING DISCLOSURES72
SEGMENT REPORTING DISCLOSURES (Information About Reportable Segments and Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Net interest income | $ 65,776 | $ 63,816 | $ 129,507 | $ 125,785 | |
Provision for credit losses | 2,300 | 3,749 | 4,904 | 5,499 | |
Net interest income after provision for credit losses | 63,476 | 60,067 | 124,603 | 120,286 | |
Noninterest income | 17,993 | 16,212 | 33,907 | 31,266 | |
Noninterest expenses | 55,251 | 55,241 | 109,523 | 109,081 | |
Income (loss) before income taxes | 26,218 | 21,038 | 48,987 | 42,471 | |
Income tax expense | 6,881 | 5,690 | 12,689 | 11,422 | |
Net income (loss) | 19,337 | 15,348 | 36,298 | 31,049 | |
Total assets | 8,100,561 | 7,497,706 | 8,100,561 | 7,497,706 | $ 7,693,291 |
Operating Segments [Member] | Community Bank [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 65,478 | 63,441 | 128,903 | 125,164 | |
Provision for credit losses | 2,260 | 3,700 | 4,760 | 5,450 | |
Net interest income after provision for credit losses | 63,218 | 59,741 | 124,143 | 119,714 | |
Noninterest income | 14,940 | 13,523 | 28,548 | 26,371 | |
Noninterest expenses | 52,766 | 52,365 | 104,610 | 103,337 | |
Income (loss) before income taxes | 25,392 | 20,899 | 48,081 | 42,748 | |
Income tax expense | 6,594 | 5,646 | 12,376 | 11,527 | |
Net income (loss) | 18,798 | 15,253 | 35,705 | 31,221 | |
Total assets | 8,094,176 | 7,495,564 | 8,094,176 | 7,495,564 | |
Operating Segments [Member] | Mortgage [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 298 | 375 | 604 | 621 | |
Provision for credit losses | 40 | 49 | 144 | 49 | |
Net interest income after provision for credit losses | 258 | 326 | 460 | 572 | |
Noninterest income | 3,207 | 2,860 | 5,684 | 5,236 | |
Noninterest expenses | 2,639 | 3,047 | 5,238 | 6,085 | |
Income (loss) before income taxes | 826 | 139 | 906 | (277) | |
Income tax expense | 287 | 44 | 313 | (105) | |
Net income (loss) | 539 | 95 | 593 | (172) | |
Total assets | 75,802 | 55,563 | 75,802 | 55,563 | |
Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 0 | 0 | 0 | 0 | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for credit losses | 0 | 0 | 0 | 0 | |
Noninterest income | (154) | (171) | (325) | (341) | |
Noninterest expenses | (154) | (171) | (325) | (341) | |
Income (loss) before income taxes | 0 | 0 | 0 | 0 | |
Income tax expense | 0 | 0 | 0 | 0 | |
Net income (loss) | 0 | 0 | 0 | 0 | |
Total assets | $ (69,417) | $ (53,421) | $ (69,417) | $ (53,421) |