Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 29, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'HERITAGE OAKS BANCORP | ' |
Entity Central Index Key | '0000921547 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 33,003,414 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Financial Condition (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $11,000 | $11,336 |
Interest bearing deposits in other banks | 54,857 | 14,902 |
Total cash and cash equivalents | 65,857 | 26,238 |
Investment securities available for sale, at fair value | 347,977 | 276,795 |
Loans held for sale, at lower of cost or fair value | 6,345 | 2,386 |
Gross loans | 1,114,070 | 827,484 |
Net deferred loan fees | -1,426 | -1,281 |
Allowance for loan and lease losses | -17,968 | -17,859 |
Net loans held for investment | 1,094,676 | 808,344 |
Premises and equipment, net | 33,819 | 24,220 |
Premises and equipment held for sale | 5,042 | ' |
Deferred tax assets, net | 32,398 | 21,624 |
Bank-owned life insurance | 24,220 | 15,826 |
Federal Home Loan Bank stock | 6,912 | 4,739 |
Goodwill | 24,608 | 11,237 |
Other intangible assets | 6,238 | 1,344 |
Other real estate owned | 313 | ' |
Other assets | 13,795 | 10,898 |
Total assets | 1,662,200 | 1,203,651 |
Liabilities | ' | ' |
Non-interest bearing deposits | 443,922 | 291,856 |
Interest bearing deposits | 921,907 | 682,039 |
Total deposits | 1,365,829 | 973,895 |
Short term FHLB borrowing | 20,000 | 29,000 |
Long term FHLB borrowing | 65,571 | 59,500 |
Junior subordinated debentures | 13,071 | 8,248 |
Other liabilities | 11,089 | 6,581 |
Total liabilities | 1,475,560 | 1,077,224 |
Shareholders' equity | ' | ' |
Common stock, no par value; authorized: 100,000,000 shares; issued and outstanding: 33,003,414 shares and 25,397,780 shares as of March 31, 2014 and December 31, 2013, respectively | 161,881 | 101,511 |
Additional paid in capital | 5,977 | 6,020 |
Retained earnings | 16,954 | 18,717 |
Accumulated other comprehensive loss, net of tax benefit of ($1,241) and ($2,395) as of March 31, 2014 and December 31, 2013, respectively | -1,776 | -3,425 |
Total shareholders' equity | 186,640 | 126,427 |
Total liabilities and shareholders' equity | 1,662,200 | 1,203,651 |
Series C preferred stock | ' | ' |
Shareholders' equity | ' | ' |
Preferred stock, 5,000,000 shares authorized: Series C preferred stock, $3.25 per share stated value; issued and outstanding: 1,189,538 shares as of March 31, 2014 and December 31, 2013 | $3,604 | $3,604 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Financial Condition (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Preferred stock | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, no par value (in dollars per share) | ' | ' |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 33,003,414 | 25,397,780 |
Common stock, shares outstanding | 33,003,414 | 25,397,780 |
Accumulated other comprehensive loss, tax benefit (in dollars) | ($1,241) | ($2,395) |
Series C preferred stock | ' | ' |
Preferred stock | ' | ' |
Preferred stock, per share stated value (in dollars per share) | $3.25 | $3.25 |
Preferred stock, shares issued | 1,189,538 | 1,189,538 |
Preferred stock, shares outstanding | 1,189,538 | 1,189,538 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest Income | ' | ' |
Loans, including fees | $11,856 | $9,597 |
Investment securities | 1,590 | 1,433 |
Other interest-earning assets | 156 | 43 |
Total interest income | 13,602 | 11,073 |
Interest Expense | ' | ' |
Deposits | 815 | 660 |
Other borrowings | 336 | 205 |
Total interest expense | 1,151 | 865 |
Net interest income before provision for loan losses | 12,451 | 10,208 |
Net interest income after provision for loan and lease losses | 12,451 | 10,208 |
Non-Interest Income | ' | ' |
Fees and service charges | 1,145 | 1,015 |
Net gain on sale of mortgage loans | 188 | 520 |
Other mortgage fee income | 54 | 254 |
(Loss) gain on sale of investment securities | -2 | 3,586 |
Other income | 365 | 286 |
Total non-interest income | 1,750 | 5,661 |
Non-Interest Expense | ' | ' |
Salaries and employee benefits | 5,617 | 5,192 |
Occupancy and equipment | 1,465 | 1,197 |
Information technology | 695 | 627 |
Professional services | 733 | 662 |
Regulatory assessments | 204 | 369 |
Sales and marketing | 173 | 121 |
Foreclosed asset costs and write-downs | 72 | 55 |
Provision for mortgage loan repurchases | ' | 570 |
Amortization of intangible assets | 166 | 100 |
Merger, restructure, and integration | 7,115 | ' |
Other expense | 798 | 855 |
Total non-interest expense | 17,038 | 9,748 |
(Loss) income before income taxes | -2,837 | 6,121 |
Income tax (benefit) expense | -1,074 | 2,391 |
Net (loss) income | -1,763 | 3,730 |
Dividends and accretion on preferred stock | ' | 358 |
Net (loss) income available to common shareholders | ($1,763) | $3,372 |
(Loss) Earnings Per Common Share | ' | ' |
Basic (in dollars per share) | ($0.06) | $0.13 |
Diluted (in dollars per share) | ($0.06) | $0.13 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Comprehensive (Loss) Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Consolidated Statements of Comprehensive (Loss) Income | ' | ' |
Net (loss) income | ($1,763) | $3,730 |
Other comprehensive (loss) income, net of tax: | ' | ' |
Unrealized holding gains (losses) on securities arising during the period | 2,797 | -485 |
Reclassification for net losses (gains) on investments included in net income | 2 | -3,586 |
Other comprehensive income (loss), before income tax (benefit) expense | 2,799 | -4,071 |
Income tax expense (benefit) related to items of other comprehensive income | 1,150 | -1,675 |
Other comprehensive income (loss) | 1,649 | -2,396 |
Comprehensive (loss) income | ($114) | $1,334 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Shareholders' Equity (USD $) | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income/(loss) | Series A senior preferred stock | Series A senior preferred stock |
In Thousands, except Share data, unless otherwise specified | Preferred Stock | Retained Earnings | ||||||
Balance at Dec. 31, 2012 | $145,529 | $24,140 | $101,354 | $7,337 | $8,773 | $3,925 | ' | ' |
Balance (in shares) at Dec. 31, 2012 | ' | ' | 25,307,110 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion on Series A preferred stock discount | ' | ' | ' | ' | ' | ' | 94 | -94 |
Dividends paid on preferred stock | -263 | ' | ' | ' | -263 | ' | ' | ' |
Exercise of stock options | 5 | ' | 5 | ' | ' | ' | ' | ' |
Exercise of stock options (in shares) | ' | ' | 1,180 | ' | ' | ' | ' | ' |
Share-based compensation expense | 134 | ' | ' | 134 | ' | ' | ' | ' |
Issuance of restricted share awards (in shares) | ' | ' | 25,862 | ' | ' | ' | ' | ' |
Forfeiture of restricted share awards (in shares) | ' | ' | -2,611 | ' | ' | ' | ' | ' |
Net Income | 3,730 | ' | ' | ' | 3,730 | ' | ' | ' |
Other comprehensive Income (loss) | -2,396 | ' | ' | ' | ' | -2,396 | ' | ' |
Balance at Mar. 31, 2013 | 146,739 | 24,234 | 101,359 | 7,471 | 12,146 | 1,529 | ' | ' |
Balance (in shares) at Mar. 31, 2013 | ' | ' | 25,331,541 | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | 126,427 | 3,604 | 101,511 | 6,020 | 18,717 | -3,425 | ' | ' |
Balance (in shares) at Dec. 31, 2013 | ' | ' | 25,397,780 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock in merger | 60,255 | ' | 60,255 | ' | ' | ' | ' | ' |
Issuance of common stock in merger (in shares) | ' | ' | 7,541,326 | ' | ' | ' | ' | ' |
Stock issuance costs | -290 | ' | ' | -290 | ' | ' | ' | ' |
Exercise of stock options | 115 | ' | 115 | ' | ' | ' | ' | ' |
Exercise of stock options (in shares) | ' | ' | 31,776 | ' | ' | ' | ' | ' |
Share-based compensation expense | 290 | ' | ' | 290 | ' | ' | ' | ' |
Tax impact of share-based compensation expense | -43 | ' | ' | -43 | ' | ' | ' | ' |
Issuance of restricted share awards (in shares) | ' | ' | 58,394 | ' | ' | ' | ' | ' |
Forfeiture of restricted share awards (in shares) | ' | ' | -25,862 | ' | ' | ' | ' | ' |
Net Income | -1,763 | ' | ' | ' | -1,763 | ' | ' | ' |
Other comprehensive Income (loss) | 1,649 | ' | ' | ' | ' | 1,649 | ' | ' |
Balance at Mar. 31, 2014 | $186,640 | $3,604 | $161,881 | $5,977 | $16,954 | ($1,776) | ' | ' |
Balance (in shares) at Mar. 31, 2014 | ' | ' | 33,003,414 | ' | ' | ' | ' | ' |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net (loss) income | ($1,763) | $3,730 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 396 | 356 |
Write-downs on premises and equipment held for sale | 1,186 | ' |
Amortization of premiums / discounts on investment securities, net | 1,028 | 1,078 |
Amortization of intangible assets | 166 | 100 |
Accretion of discount on purchased loans | -393 | ' |
Amortization of premium on junior subordinated debentures | 19 | ' |
Share-based compensation expense | 290 | 134 |
Gain on sale of available for sale securities | 2 | -3,586 |
Originations of loans held for sale | -14,719 | -41,854 |
Proceeds from sale of loans held for sale | 10,760 | 55,265 |
Net increase in bank owned life insurance | -131 | -123 |
Decrease (increase) in deferred tax asset | 44 | 4,650 |
Tax impact of share based compensation expense | -43 | ' |
Increase in other assets | -301 | -1,714 |
Increase in other liabilities | 2,334 | 3,996 |
Net Cash (Used In) Provided By Operating Activities | -1,125 | 22,032 |
Cash flows from investing activities: | ' | ' |
Net cash and cash equivalents acquired in MISN merger | 28,891 | ' |
Purchase of securities, available for sale | -19,924 | -66,853 |
Sale of securities, available for sale | 15,562 | 89,245 |
Maturities and calls of securities, available for sale | ' | 544 |
Proceeds from principal paydowns of securities, available for sale | 11,112 | 15,293 |
Increase in loans, net | -5,633 | -17,045 |
Allowance for loan loss recoveries | 203 | 285 |
Purchase of property, premises and equipment, net | -725 | -1,998 |
Proceeds from sale of foreclosed collateral | ' | 1,211 |
Net Cash Provided By Investing Activities | 29,486 | 20,682 |
Cash flows from financing activities: | ' | ' |
Increase in deposits, net | 20,433 | -8,055 |
Proceeds from Federal Home Loan Bank borrowing | 5,000 | 21,000 |
Repayments of Federal Home Loan Bank borrowing | -14,000 | -51,000 |
Proceeds from exercise of stock options | 115 | 5 |
Stock issuance costs | -290 | ' |
Preferred stock dividends paid | ' | -263 |
Net Cash Provided By (Used In) Financing Activities | 11,258 | -38,313 |
Net increase in cash and cash equivalents | 39,619 | 4,401 |
Cash and cash equivalents, beginning of period | 26,238 | 34,116 |
Cash and cash equivalents, end of period | 65,857 | 38,517 |
Cash Flow Information | ' | ' |
Interest paid | 1,081 | 865 |
Income taxes paid | 600 | 2,100 |
Non-Cash Flow Information | ' | ' |
Change in unrealized gain on available for sale securities | 2,803 | -4,071 |
Loans transferred to foreclosed collateral | 248 | 1,211 |
Land and buildings transferred to held for sale | 1,730 | ' |
Accretion of preferred stock discount | ' | $95 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | ' |
Note 1. Summary of Significant Accounting Policies | |
Description of Business | |
Heritage Oaks Bancorp (the “Bancorp”) is a California corporation organized in 1994 to act as the holding company for Heritage Oaks Bank (the “Bank”), which opened for business in 1983. The Bank operates within San Luis Obispo, Santa Barbara and Ventura counties. On February 28, 2014, the Company acquired 100% of the outstanding common shares of Mission Community Bancorp (“MISN”). MISN’s results of operations have been included in the Company’s results beginning March 1, 2014. The Bank offers traditional banking products such as checking, savings, money market accounts and certificates of deposit, as well as commercial and consumer loans to customers who are predominately small to medium-sized businesses and individuals. As such, the Company is subject to a concentration risk associated with its banking operations in San Luis Obispo, Santa Barbara and Ventura Counties. No one customer accounts for more than 10% of revenue or assets in any period presented. The Company has no assets nor does it generate any revenue from outside of the United States. While the chief decision-makers of the Company monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements of Heritage Oaks Bancorp and subsidiaries (the “Company”) have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and notes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for annual financial statements are not included herein. In the opinion of Management, all adjustments (which consist solely of normal recurring accruals) considered necessary for a fair presentation of results for the interim periods presented have been included. These interim unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and related notes contained in the Company’s 2013 Annual Report filed on Form 10-K, filed with the Securities and Exchange Commission on March 4, 2014, file number 000-25020. | |
The consolidated financial statements include the accounts of Heritage Oaks Bancorp and its wholly-owned financial subsidiary, Heritage Oaks Bank. All significant inter-company balances and transactions have been eliminated. Heritage Oaks Capital Trust II (“Trust II”), Mission Community Capital Trust I (“Trust III”) and Santa Lucia Bancorp (CA) Capital Trust (“Trust IV”), which were formed solely for the purpose of issuing trust preferred securities, are unconsolidated subsidiaries, as the Company is not the primary beneficiary of the trusts. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. | |
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan and lease losses (“ALLL”), the valuation of real estate acquired through foreclosure, the carrying value of the Company’s deferred tax assets and estimates used in the determination of the fair value of certain financial instruments, assets and liabilities acquired in the MISN transaction and accruals for restructuring activities, as described in Note 15. | |
The significant accounting policies that the Company applies are detailed in Note 1. Summary of Significant Accounting Policies, of the Company’s Annual Report filed on Form 10-K. There have been no changes to these policies or their application other than as noted below, related to purchased credit impaired loans. | |
Acquired Loans and Leases | |
Purchased loans and leases are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an ALLL is not recorded at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased credit impaired or purchased non-impaired. Purchased credit impaired loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. | |
Purchased credit impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as loan purpose type, term, accrual status and interest rate characteristics. The Company estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flow in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (non-accretable difference). | |
Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, an impairment loss is recorded. If the present value of expected cash flows is significantly greater than the carrying amount, it is recognized as part of future interest income. | |
Business Combinations and Related Matters | |
Business combinations are accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under the acquisition method the acquiring entity in a business combination recognizes 100 percent of the acquired assets and assumed liabilities, regardless of the percentage owned, at their estimated fair values as of the date of acquisition. Any excess of the purchase price over the fair value of net assets and other identifiable intangible assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including other identifiable assets, exceed the purchase price, a bargain purchase gain is recognized. Assets acquired and liabilities assumed from contingencies must also be recognized at fair value, if the fair value can be determined during the measurement period. Results of operations of an acquired business are included in the statement of operations from the date of acquisition. Acquisition-related costs, including conversion charges, are expensed as incurred. The Company applied this guidance to the MISN acquisition that was consummated in 2014. | |
Recent Accounting Guidance Adopted | |
There has been no new accounting guidance that has been adopted by the Company since December 31, 2013. | |
Recent Accounting Guidance Not Yet Effective | |
On January 17, 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, a consensus of the FASB Emerging Issues Task Force. This Update provides clarification as to when an in-substance repossession or foreclosure has occurred, i.e., the creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan and, therefore, the loan receivable should be derecognized and the real estate property should be recognized. Under ASU No. 2014-04, a creditor has received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either (1) the creditor obtaining legal title to the property upon completion of a foreclosure or (2) the borrower conveying all interest in the property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or a similar legal agreement. The Update also will require disclosure in annual and interim financial statements of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. For public business entities, the amendments in this Update are effective for annual and interim periods beginning after December 15, 2014. The Company expects to adopt the provisions of ASU No. 2014-04 in the first quarter of 2015. Adoption of this Update is not expected to have a material impact on the Company’s consolidated financial statements. |
Business_Combination
Business Combination | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Business Combination | ' | |||||||
Business Combination | ' | |||||||
Note 2. Business Combination | ||||||||
On February 28, 2014, the Company acquired 100% of the outstanding common shares of Mission Community Bancorp (“MISN”) and all unexercised warrants and options to purchase MISN common stock were cancelled, in exchange for 7,541,326 shares of the Company’s common stock and $8.706 million in cash. In conjunction with the merger, MISN’s wholly-owned bank subsidiary, Mission Community Bank, was merged with and into Heritage Oaks Bank. The transaction is valued at $69.0 million, based on the Company’s closing stock price of $7.99 on February 28, 2014. With the acquisition, the Company believes it has created a more valuable community bank franchise, with a low-cost core deposit base, strong capital ratios, attractive net interest margins, lower operating costs, and better overall returns for the shareholders of the combined institution. The Company also believes it now has a banking platform that is well positioned for future growth, both organically and through acquisitions. | ||||||||
MISN’s results of operations have been included in the Company’s results beginning March 1, 2014, providing $1.7 million of interest income, $0.1 million of non-interest income and $0.5 million of the Company’s net income for the three months ended March 31, 2014. Acquisition-related costs totaled $0.5 million for the three months ended March 31, 2014, of which $0.2 million have been included in non-interest expense in the Company’s income statement and $0.3 million of stock issuance costs have been charged against additional paid-in capital. | ||||||||
The acquired assets and liabilities have been recorded at fair value at the date of acquisition in these financial statements. The following table presents a summary of acquired assets and assumed liabilities: | ||||||||
(dollar amounts in thousands) | ||||||||
Assets acquired | ||||||||
Cash and due from banks | $ | 3,212 | ||||||
Interest-bearing deposits in other banks | 34,386 | |||||||
Securities available for sale | 76,159 | |||||||
Loans held for sale | 338 | |||||||
Loans and leases receivable | 280,419 | |||||||
Premises and equipment | 15,499 | |||||||
Deferred tax assets, net | 11,972 | |||||||
Goodwill | 13,371 | |||||||
Core deposit intangible asset | 5,060 | |||||||
Bank owned life insurance | 8,263 | |||||||
Other assets | 4,833 | |||||||
Total assets acquired | $ | 453,512 | ||||||
Liabilities assumed | ||||||||
Deposits | $ | 371,501 | ||||||
Advances from Federal Home Loan Bank | 6,071 | |||||||
Junior subordinated debentures | 4,804 | |||||||
Other liabilities | 2,174 | |||||||
Total liabilities assumed | $ | 384,550 | ||||||
Total consideration paid | $ | 68,962 | ||||||
The fair value of net assets acquired includes fair value adjustments to certain receivables that were not considered impaired as of the acquisition date. The fair value adjustments were determined using discounted contractual cash flows, adjusted for expected losses and prepayments, where appropriate. As such, these receivables were not considered impaired at the acquisition date and were not subject to the guidance relating to purchased credit impaired loans, which have shown evidence of credit deterioration since origination. Receivables acquired that were not subject to these requirements include non-impaired loans and leases with a fair value and gross contractual amounts receivable of $267.3 million and $328.2 million, respectively, on the date of acquisition. As of that date, contractual cash flows not expected to be collected on these non-impaired loans and leases totals $5.4 million, which has been recorded as the credit risk component of the purchase discount, and which represents 2.0% of their gross outstanding principal balances. | ||||||||
Goodwill of $13.4 million arising from the acquisition is largely attributable to synergies and cost savings resulting from combining the operations of the companies. As this transaction was structured as a tax-free exchange, the goodwill will not be deductible for tax purposes. The fair values of assets acquired and liabilities assumed are subject to adjustment during the first twelve months after the acquisition date if additional information becomes available to indicate a more accurate or appropriate value for an asset or liability. The fair value of $280.8 million of loans and leases receivable, $15.5 million of premises and equipment (including $3.3 million of premises and equipment held for sale), $12.0 million of income tax attributes related to the purchase accounting adjustments and MISN’s legacy deferred tax assets are subject to change pending receipt of the final valuations and analyses. Loan and lease valuations may be adjusted based on new information obtained by the company in future periods that may reflect conditions or events that existed on the acquisition date. The fair value of premises and equipment held for sale may be adjusted upon final sale or revised appraised values. Deferred tax assets may be adjusted for purchase accounting adjustments on open areas such as loans and leases or premises and equipment held for sale, or upon filing MISN’s 2013 and final February 28, 2014 “stub” period tax returns. The closing equity balance for MISN is also subject to adjustments for invoices received after the close of the transaction that were attributable to MISN operations through February 28, 2014. | ||||||||
The following table summarizes the consideration paid for MISN: | ||||||||
(dollar amounts in thousands) | 28-Feb-14 | |||||||
Consideration Paid | ||||||||
Cash payments for MISN shares outstanding | $ 2,554 | |||||||
Cash payments for MISN warrants | 5,766 | |||||||
Cash payments for MISN options | 387 | |||||||
Shares issued, @ $7.99 per share | 60,255 | |||||||
Total consideration | 68,962 | |||||||
The following table presents unaudited pro forma information as if the MISN acquisition had occurred on January 1, 2013, which includes the pre-acquisition period for MISN. The unaudited pro forma information includes adjustments for interest income on loans and securities acquired, amortization of intangibles arising from the transaction, depreciation expense on property acquired, interest expense on deposits and borrowings acquired, and the related income tax effects. The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed date. | ||||||||
Pro Forma Financial Information | For the Three Months Ended | |||||||
March 31, | ||||||||
(dollar amounts in thousands except per share data) | 2014 | 2013 | ||||||
Net interest Income | $ | 15,379 | $ | 14,545 | ||||
Provision for loan and lease losses | - | 100 | ||||||
Noninterest income | 2,364 | 6,642 | ||||||
Noninterest expense | 20,473 | 14,207 | ||||||
(Loss) income before income taxes | (2,730 | ) | 6,880 | |||||
Income tax (benefit) expense | (1,013 | ) | 2,690 | |||||
Net (loss) income | $ | (1,717 | ) | $ | 4,190 | |||
(Loss) Earnings Per Common Share | ||||||||
Basic | $ | (0.05 | ) | $ | 0.11 | |||
Diluted | $ | (0.05 | ) | $ | 0.11 | |||
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value of Assets and Liabilities | ' | ||||||||||||||||
Fair Value of Assets and Liabilities | ' | ||||||||||||||||
Note 3. Fair Value of Assets and Liabilities | |||||||||||||||||
Recurring Basis | |||||||||||||||||
The following table provides a summary of the financial instruments the Company measures at fair value on a recurring basis: | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
(dollar amounts in thousands) | Identical Assets | Inputs | Inputs | Assets At | |||||||||||||
31-Mar-14 | (Level 1) | (Level 2) | (Level 3) | Fair Value | |||||||||||||
Assets | |||||||||||||||||
Obligations of U.S. government agencies | $ | - | $ | 10,960 | $ | - | $ | 10,960 | |||||||||
Mortgage backed securities: | |||||||||||||||||
Agency | - | 235,765 | - | 235,765 | |||||||||||||
Non-agency | - | 6,907 | - | 6,907 | |||||||||||||
Obligations of state and municipal securities | - | 64,383 | - | 64,383 | |||||||||||||
Corporate debt securities | 3,259 | 3,259 | |||||||||||||||
Asset backed securities | - | 26,703 | - | 26,703 | |||||||||||||
Total assets measured on a recurring basis | $ | - | $ | 347,977 | $ | - | $ | 347,977 | |||||||||
31-Dec-13 | |||||||||||||||||
Assets | |||||||||||||||||
Obligations of U.S. government agencies | $ | - | $ | 6,208 | $ | - | $ | 6,208 | |||||||||
Mortgage backed securities: | |||||||||||||||||
Agency | - | 182,931 | - | 182,931 | |||||||||||||
Non-agency | - | 11,032 | - | 11,032 | |||||||||||||
Obligations of state and municipal securities | - | 50,030 | - | 50,030 | |||||||||||||
Asset backed securities | - | 26,594 | - | 26,594 | |||||||||||||
Total assets measured on a recurring basis | $ | - | $ | 276,795 | $ | - | $ | 276,795 | |||||||||
In determining the fair value of Level 3 instruments on a recurring basis the Company takes into consideration several variables, including but not limited to: expectations about interest rate movements, prepayment speeds of the underlying mortgages for mortgage backed securities, expected default rates, and credit spreads over the risk free rate. Of these variables, default rates and credit spreads are perhaps the least observable and most impactful on the long-term value of a Level 3 security. Since a bond’s value is represented by its yield which reflects the risk-free yield curve plus compensation for various risks incurred in buying the bond, changes to the risk assumptions including probability of default and timing of future cash flows can materially impact the market value. | |||||||||||||||||
As of March 31, 2014 and December 31, 2013, there were no Level 3 instruments. There were also no changes in the balance sheet carrying value associated with recurring Level 3 financial instruments for the three months ended March 31, 2014. | |||||||||||||||||
Non-recurring Basis | |||||||||||||||||
The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a non-recurring basis. These include assets and liabilities that are measured at the lower of cost or fair value that were recognized at a fair value that was below cost. The discounted cash flow method as prescribed by ASC 310, Receivables, is not a fair value measurement since the discount rate utilized is the loan’s effective interest rate, which is not a market rate. Even though the discounted cash flow approach is not a fair market value measurement, it was determined to be the most appropriate impairment measurement method to use for these impaired loans based on their significant payment history and the global cash flow analysis performed on each borrower. Because of these facts the table below does not include impaired loans measured using a discounted cash flow method. | |||||||||||||||||
The following table provides a summary of assets the Company measures at fair value on a non-recurring basis: | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | Year To | ||||||||||||||
(dollar amounts in thousands) | Identical Assets | Inputs | Inputs | Assets At | Date Losses/ | ||||||||||||
31-Mar-14 | (Level 1) | (Level 2) | (Level 3) | Fair Value | (Recoveries) | ||||||||||||
Assets | |||||||||||||||||
Impaired loans | |||||||||||||||||
Land | - | - | 4,170 | 4,170 | (100 | ) | |||||||||||
Premises and equipment held for sale | - | - | 1,730 | 1,730 | 1,186 | ||||||||||||
Total assets measured on a non-recurring basis | $ | - | $ | - | $ | 5,900 | $ | 5,900 | $ | 1,086 | |||||||
31-Dec-13 | |||||||||||||||||
Assets | |||||||||||||||||
Impaired loans | |||||||||||||||||
Land | - | - | 4,170 | 4,170 | (1,270 | ) | |||||||||||
Total assets measured on a non-recurring basis | $ | - | $ | - | $ | 4,170 | $ | 4,170 | $ | (1,270 | ) | ||||||
There were no transfers in or out of Level 1 or Level 2 assets reported at fair value on either a recurring or non-recurring basis during the three months ended March 31, 2014 and 2013. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The following table provides a summary of the estimated fair value of financial instruments: | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
(dollar amounts in thousands) | Carrying | Identical Assets | Inputs | Inputs | |||||||||||||
31-Mar-14 | Amount | (Level 1) | (Level 2) | (Level 3) | Fair Value | ||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 65,857 | $ | 65,857 | $ | - | $ | - | $ | 65,857 | |||||||
Investment securities available for sale | 347,977 | - | 347,977 | - | 347,977 | ||||||||||||
Federal Home Loan Bank stock | 6,912 | - | - | - | N/A | ||||||||||||
Loans receivable, net of deferred fees and costs | 1,112,644 | - | - | 1,112,792 | 1,112,792 | ||||||||||||
Loans held for sale | 6,345 | - | 6,345 | - | 6,345 | ||||||||||||
Accrued interest receivable | 4,924 | - | 1,522 | 3,402 | 4,924 | ||||||||||||
Liabilities | |||||||||||||||||
Non-interest bearing deposits | 443,922 | 443,922 | - | - | 443,922 | ||||||||||||
Interest bearing deposits | 921,907 | - | 926,628 | - | 926,628 | ||||||||||||
Federal Home Loan Bank advances | 85,571 | - | 84,927 | - | 84,927 | ||||||||||||
Junior subordinated debentures | 13,071 | - | - | 9,570 | 9,570 | ||||||||||||
Accrued interest payable | 361 | - | 361 | - | 361 | ||||||||||||
31-Dec-13 | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 26,238 | $ | 26,238 | $ | - | $ | - | $ | 26,238 | |||||||
Investment securities available for sale | 276,795 | - | 276,795 | - | 276,795 | ||||||||||||
Federal Home Loan Bank stock | 4,739 | - | - | - | N/A | ||||||||||||
Loans receivable, net of deferred fees and costs | 826,203 | - | - | 827,105 | 827,105 | ||||||||||||
Loans held for sale | 2,386 | - | 2,386 | - | 2,386 | ||||||||||||
Accrued interest receivable | 4,027 | - | 1,397 | 2,630 | 4,027 | ||||||||||||
Liabilities | |||||||||||||||||
Non interest-bearing deposits | 291,856 | 291,856 | - | - | 291,856 | ||||||||||||
Interest-bearing deposits | 682,039 | - | 684,345 | - | 684,345 | ||||||||||||
Federal Home Loan Bank advances | 88,500 | - | 86,990 | - | 86,990 | ||||||||||||
Junior subordinated debentures | 8,248 | - | - | 7,595 | 7,595 | ||||||||||||
Accrued interest payable | 239 | - | 239 | - | 239 | ||||||||||||
Information on off-balance-sheet instruments follows: | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Notional | Cost to Cede | Notional | Cost to Cede | ||||||||||||||
(dollar amounts in thousands) | Amount | or Assume | Amount | or Assume | |||||||||||||
Off-balance sheet instruments, commitments to extend credit and standby letters of credit | $ | 255,701 | $ | 2,557 | $ | 198,481 | $ | 1,985 | |||||||||
Investment_Securities
Investment Securities | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||
Note 4. Investment Securities | ||||||||||||||||||||
The following table sets forth the amortized cost and fair values of the Company’s investment securities, all of which are reported as available for sale: | ||||||||||||||||||||
(dollar amounts in thousands) | Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | ||||||||||||||||||
31-Mar-14 | Cost | Gains | Losses | Fair Value | ||||||||||||||||
Obligations of U.S. government agencies | $ | 10,998 | $ | 32 | $ | (70 | ) | $ | 10,960 | |||||||||||
Mortgage backed securities | ||||||||||||||||||||
U.S. government sponsored entities and agencies | 238,563 | 714 | (3,512 | ) | 235,765 | |||||||||||||||
Non-agency | 6,745 | 190 | (28 | ) | 6,907 | |||||||||||||||
State and municipal securities | 64,519 | 914 | (1,050 | ) | 64,383 | |||||||||||||||
Corporate debt securities | 3,256 | 6 | (3 | ) | 3,259 | |||||||||||||||
Asset backed securities | 26,913 | 2 | (212 | ) | 26,703 | |||||||||||||||
Total | $ | 350,994 | $ | 1,858 | $ | (4,875 | ) | $ | 347,977 | |||||||||||
31-Dec-13 | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 6,243 | $ | 11 | $ | (46 | ) | $ | 6,208 | |||||||||||
Mortgage backed securities | ||||||||||||||||||||
U.S. government sponsored entities and agencies | 186,981 | 342 | (4,392 | ) | 182,931 | |||||||||||||||
Non-agency | 10,924 | 156 | (48 | ) | 11,032 | |||||||||||||||
State and municipal securities | 51,532 | 269 | (1,771 | ) | 50,030 | |||||||||||||||
Asset backed securities | 26,935 | - | (341 | ) | 26,594 | |||||||||||||||
Total | $ | 282,615 | $ | 778 | $ | (6,598 | ) | $ | 276,795 | |||||||||||
Other than Temporary Impairment (“OTTI”) | ||||||||||||||||||||
At the end of the first quarter of 2013, the Company sold the two private labeled mortgage backed securities in which OTTI losses had been recognized, as part of its repositioning of the longer duration portion of the investment portfolio, thereby eliminating all securities in the portfolio for which OTTI losses had been incurred. These securities had an aggregate recorded fair value of $0.7 million ($1.0 million historical cost) at December 31, 2012. The following tables provide information related to these two securities: | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | For the Three Months Ended March 31, 2013 | |||||||||||||||||||
OTTI Related | OTTI Related | |||||||||||||||||||
OTTI Related | to All Other | Total | OTTI Related | to All Other | Total | |||||||||||||||
(dollars in thousands) | to Credit Loss | Factors | OTTI | to Credit Loss | Factors | OTTI | ||||||||||||||
Balance, beginning of the period | $ | - | $ | - | $ | - | $ | 109 | $ | 170 | $ | - | ||||||||
Less: losses related to OTTI securities sold | - | (109 | ) | (170 | ) | 279 | ||||||||||||||
Change in value attributable to other factors | - | - | - | - | - | (279 | ) | |||||||||||||
Balance, end of the period | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||
The following table provides a summary of investment securities in an unrealized loss position: | ||||||||||||||||||||
Securities In A Loss Position For | Total | |||||||||||||||||||
(dollar amounts in thousands) | Less Than Twelve Months | Twelve Months or More | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
March 31, 2014 | Value | Loss | Value | Loss | Value | Loss | ||||||||||||||
Obligations of U.S. government agencies | $ | 8,697 | $ | (69 | ) | $ | 39 | $ | (1 | ) | $ | 8,736 | $ | (70 | ) | |||||
Mortgage backed securities | ||||||||||||||||||||
U.S. government sponsored entities and agencies | 129,207 | (2,060 | ) | 36,187 | (1,452 | ) | 165,394 | (3,512 | ) | |||||||||||
Non-agency | 484 | (28 | ) | - | - | 484 | (28 | ) | ||||||||||||
State and municipal securities | 24,775 | (758 | ) | 6,398 | (292 | ) | 31,173 | (1,050 | ) | |||||||||||
Corporate debt securities | 2,249 | (3 | ) | - | - | 2,249 | (3 | ) | ||||||||||||
Asset backed securities | - | - | 17,623 | (212 | ) | 17,623 | (212 | ) | ||||||||||||
Total | $ | 165,412 | $ | (2,918 | ) | $ | 60,247 | $ | (1,957 | ) | $ | 225,659 | $ | (4,875 | ) | |||||
31-Dec-13 | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 2,773 | $ | (45 | ) | $ | 40 | $ | (1 | ) | $ | 2,813 | $ | (46 | ) | |||||
Mortgage backed securities | ||||||||||||||||||||
U.S. government sponsored entities and agencies | 118,554 | (3,140 | ) | 18,863 | (1,252 | ) | 137,417 | (4,392 | ) | |||||||||||
Non-agency | 3,210 | (48 | ) | - | - | 3,210 | (48 | ) | ||||||||||||
State and municipal securities | 32,967 | (1,675 | ) | 2,458 | (96 | ) | 35,425 | (1,771 | ) | |||||||||||
Asset backed securities | 7,978 | (246 | ) | 9,747 | (95 | ) | 17,725 | (341 | ) | |||||||||||
Total | $ | 165,482 | $ | (5,154 | ) | $ | 31,108 | $ | (1,444 | ) | $ | 196,590 | $ | (6,598 | ) | |||||
A total of 132 securities were in an unrealized loss position as of March 31, 2014, and 96 as of December 31, 2013. As of March 31, 2014, the Company believes that unrealized losses on its investment securities are not attributable to credit quality, but rather fluctuations in market prices for these investments. In the case of the agency mortgage related securities, they have contractual cash flows guaranteed by agencies of the U.S. Government. While the Company’s investment security holdings have contractual maturity dates that range from 1 to 40 years, they have a much shorter effective duration dependent on the instrument’s priority in the overall cash flow structure and the characteristics of the loans underlying the investment security. Management does not intend to sell and it is unlikely that management will be required to sell the securities prior to their anticipated recovery. As of March 31, 2014, the Company does not believe unrealized losses related to any of its securities are other than temporary. | ||||||||||||||||||||
The proceeds from the sales and calls of securities and the associated gains and losses are listed below: | ||||||||||||||||||||
For the Three Months | ||||||||||||||||||||
Ended March 31 | ||||||||||||||||||||
(dollar amounts in thousands) | 2014 | 2013 | ||||||||||||||||||
Proceeds | $ | 15,562 | $ | 89,245 | ||||||||||||||||
Gross gains | 78 | 4,204 | ||||||||||||||||||
Gross losses | (80 | ) | (618 | ) | ||||||||||||||||
The income tax expense related to these net realized (losses) gains was $(1) thousand and $1.476 million for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||||||||
The amortized cost and fair value maturities of available for sale investment securities at March 31, 2014 are shown below. The table reflects the expected lives of mortgage backed securities, based on the Company’s historical prepayment experience, because borrowers may have the right to prepay obligations without prepayment penalties. Contractual maturities are reflected for all other security types. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||
(dollar amounts in thousands) | ||||||||||||||||||||
March 31, 2014 | One Year Or | Over 1 Through | Over 5 Years | Over 10 Years | Total | |||||||||||||||
Less | 5 Years | Through 10 | ||||||||||||||||||
Years | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 313 | $ | 408 | $ | 7,931 | $ | 2,308 | $ | 10,960 | ||||||||||
Mortgage backed securities | ||||||||||||||||||||
U.S. government sponsored entities and agencies | 33,738 | 92,135 | 49,212 | 60,680 | 235,765 | |||||||||||||||
Non-agency | 375 | 4,976 | 1,556 | - | 6,907 | |||||||||||||||
State and municipal securities | 3,005 | 18,888 | 40,342 | 2,148 | 64,383 | |||||||||||||||
Corporate debt securities | - | 2,014 | 1,245 | - | 3,259 | |||||||||||||||
Asset backed securities | - | - | 14,809 | 11,894 | 26,703 | |||||||||||||||
Total available for sale securities | $ | 37,431 | $ | 118,421 | $ | 115,095 | $ | 77,030 | $ | 347,977 | ||||||||||
Amortized cost | $ | 37,605 | $ | 119,112 | $ | 115,777 | $ | 78,500 | $ | 350,994 | ||||||||||
Weighted average yield | 1.83% | 2.14% | 2.41% | 2.64% | 2.31% | |||||||||||||||
Securities having an amortized cost and a fair value of $55.3 million and $55.1 million, respectively, at March 31, 2014, and $41.9 million and $40.4 million, respectively, at December 31, 2013 were pledged to secure public deposits. As of March 31, 2014 and December 31, 2013, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of total securities. | ||||||||||||||||||||
The following table summarizes earnings on both taxable and tax-exempt investment securities: | ||||||||||||||||||||
For The Three Months | ||||||||||||||||||||
Ended March 31, | ||||||||||||||||||||
(dollar amounts in thousands) | 2014 | 2013 | ||||||||||||||||||
Taxable earnings on investment securities | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 48 | $ | 31 | ||||||||||||||||
Mortgage backed securities | 1,025 | 830 | ||||||||||||||||||
State and municipal securities | - | 5 | ||||||||||||||||||
Corporate debt securities | 3 | - | ||||||||||||||||||
Asset backed securities | 75 | 112 | ||||||||||||||||||
Non-taxable earnings on investment securities | ||||||||||||||||||||
State and municipal securities | 439 | 455 | ||||||||||||||||||
Total | $ | 1,590 | $ | 1,433 | ||||||||||||||||
Loans
Loans | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Loans | ' | ||||||||||||||||||||||||||||||||
Loans | ' | ||||||||||||||||||||||||||||||||
Note 5. Loans | |||||||||||||||||||||||||||||||||
The following table provides a summary of outstanding loan balances: | |||||||||||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Multi-family residential | $ | 47,610 | $ | 31,140 | |||||||||||||||||||||||||||||
Residential 1 to 4 family | 111,776 | 88,904 | |||||||||||||||||||||||||||||||
Home equity lines of credit | 41,301 | 31,178 | |||||||||||||||||||||||||||||||
Commercial | 580,990 | 432,203 | |||||||||||||||||||||||||||||||
Farmland | 66,149 | 50,414 | |||||||||||||||||||||||||||||||
Total real estate secured | 847,826 | 633,839 | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 146,710 | 119,121 | |||||||||||||||||||||||||||||||
Agriculture | 57,632 | 32,686 | |||||||||||||||||||||||||||||||
Other | 753 | 38 | |||||||||||||||||||||||||||||||
Total commercial | 205,095 | 151,845 | |||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||
Single family residential | 6,035 | 3,873 | |||||||||||||||||||||||||||||||
Single family residential - Spec. | 620 | 1,153 | |||||||||||||||||||||||||||||||
Multi-family | 3,946 | 736 | |||||||||||||||||||||||||||||||
Hospitality | 3,088 | - | |||||||||||||||||||||||||||||||
Commercial | 9,042 | 7,937 | |||||||||||||||||||||||||||||||
Total construction | 22,731 | 13,699 | |||||||||||||||||||||||||||||||
Land | 27,908 | 24,523 | |||||||||||||||||||||||||||||||
Installment loans to individuals | 10,323 | 3,246 | |||||||||||||||||||||||||||||||
Overdrafts | 187 | 332 | |||||||||||||||||||||||||||||||
Total gross loans | 1,114,070 | 827,484 | |||||||||||||||||||||||||||||||
Net deferred loan fees | (1,426 | ) | (1,281 | ) | |||||||||||||||||||||||||||||
Allowance for loan losses | (17,968 | ) | (17,859 | ) | |||||||||||||||||||||||||||||
Total net loans | $ | 1,094,676 | $ | 808,344 | |||||||||||||||||||||||||||||
Loans held for sale | $ | 6,345 | $ | 2,386 | |||||||||||||||||||||||||||||
Total net loans in the table above includes $280.8 million of loans acquired through the MISN acquisition at fair market value on the acquisition date. $267.5 million of these loans were acquired with no impairment while the remaining $13.3 million were determined to be purchased credit impaired (“PCI”) loans. Loans held for sale are primarily single-family residential mortgage loans under contract to be sold in the secondary market. In most cases, loans in this category are sold within thirty to sixty days. Under the terms of the mortgage purchase agreements, the purchaser has the right to require the Company to either repurchase the mortgage or reimburse losses incurred by the purchaser, which are determined to have been directly caused by borrower fraud or misrepresentation. Although the Company intends to vigorously challenge these and any future claims, the Company has a reserve of $0.4 million for these potential repurchases at March 31, 2014. The Company has incurred losses of $1.6 million related to the settlement of nine loans since the beginning of 2011, the majority of which were associated with a group of related loans originated and sold in 2007 that were made to a borrower subsequently found guilty of financial fraud. | |||||||||||||||||||||||||||||||||
Under a blanket lien to the Federal Home Loan Bank (“FHLB”), the Bank has pledged $844.2 million in loans to secure $85.5 million of borrowings, an $11.5 million line of credit and $332.5 million of potential future borrowings. The Bank also has a collateralized borrowing line with the Federal Reserve Bank secured by $13.5 million of loans as of March 31, 2014. | |||||||||||||||||||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||||||||||||||||
The Company held loans that were collateralized by various forms of real estate totaling $898.5 million and $672.1 million at March 31, 2014 and December 31, 2013, respectively. Such loans are generally made to borrowers located in the counties of San Luis Obispo, Santa Barbara and Ventura. The Company attempts to reduce its concentration of credit risk by making loans which are diversified by product type. While Management believes that the collateral presently securing this portfolio is adequate, there can be no assurances that deterioration in the California real estate market would not expose the Company to significantly greater credit risk. | |||||||||||||||||||||||||||||||||
Loans Serviced for Others | |||||||||||||||||||||||||||||||||
Loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of loans serviced for others, exclusive of Small Business Administration (“SBA”) loans, was $62.7 million at March 31, 2014 and $22.6 million at December 31, 2013. | |||||||||||||||||||||||||||||||||
From time to time, the Company also originates SBA loans for sale for which it retains the servicing of the guaranteed portion of the loan sold. At March 31, 2014 and December 31, 2013, the unpaid principal balance of SBA loans serviced for others totaled $29.2 million and $6.6 million, respectively. The Company recognized no gains from the sale of SBA loans in the first three months of 2014 or 2013. | |||||||||||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||||||
The following tables provide a summary of the Company’s investment in impaired loans, including loans acquired with deteriorated credit quality: | |||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Unpaid | Impaired Loans | Specific | ||||||||||||||||||||||||||||||
Recorded | Principal | With Specific | Without Specific | Allowance for | |||||||||||||||||||||||||||||
31-Mar-14 | Investment (1)(2) | Balance | Allowance | Allowance | Impaired Loans | ||||||||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Residential 1 to 4 family | $ | 1,218 | $ | 1,626 | $ | - | $ | 1,218 | $ | - | |||||||||||||||||||||||
Home equity lines of credit | 80 | 182 | - | 80 | - | ||||||||||||||||||||||||||||
Commercial | 6,234 | 8,934 | - | 6,234 | - | ||||||||||||||||||||||||||||
Farmland | 1,719 | 2,094 | - | 1,719 | - | ||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 7,716 | 9,503 | 3,154 | 4,562 | 747 | ||||||||||||||||||||||||||||
Agriculture | 2,298 | 2,345 | - | 2,298 | - | ||||||||||||||||||||||||||||
Land | 8,941 | 13,533 | 6,607 | 2,334 | 2,432 | ||||||||||||||||||||||||||||
Installment loans to individuals | 94 | 183 | - | 94 | - | ||||||||||||||||||||||||||||
Totals | $ | 28,300 | $ | 38,400 | $ | 9,761 | $ | 18,539 | $ | 3,179 | |||||||||||||||||||||||
(1) The recorded investment in loans includes the book value of impaired loans as adjusted for the net deferred costs and fees related to the impaired loans. | |||||||||||||||||||||||||||||||||
(2) Includes $12,744 of purchased credit impaired loans | |||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Unpaid | Impaired Loans | Specific | ||||||||||||||||||||||||||||||
Recorded | Principal | With Specific | Without Specific | Allowance for | |||||||||||||||||||||||||||||
31-Dec-13 | Investment (1) | Balance | Allowance | Allowance | Impaired Loans | ||||||||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Residential 1 to 4 family | $ | 944 | $ | 1,102 | $ | - | 944 | $ | - | ||||||||||||||||||||||||
Commercial | 901 | 1,646 | - | 901 | - | ||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 5,337 | 5,843 | 3,480 | 1,857 | 623 | ||||||||||||||||||||||||||||
Agriculture | 789 | 824 | - | 789 | - | ||||||||||||||||||||||||||||
Land | 7,927 | 12,106 | 6,706 | 1,221 | 2,532 | ||||||||||||||||||||||||||||
Installment loans to individuals | 118 | 190 | - | 118 | - | ||||||||||||||||||||||||||||
Totals | $ | 16,016 | $ | 21,711 | $ | 10,186 | $ | 5,830 | $ | 3,155 | |||||||||||||||||||||||
(1) The recorded investment in loans includes the book value of impaired loans as adjusted for the net deferred costs and fees related to the impaired loans. | |||||||||||||||||||||||||||||||||
The average recorded investment in impaired loans and the interest income recognized on impaired loans was: | |||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Investment | Recognized | Investment | Recognized | |||||||||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Residential 1 to 4 family | $ | 1,046 | $ | 8 | $ | 718 | $ | - | |||||||||||||||||||||||||
Home equity lines of credit | 40 | - | 58 | - | |||||||||||||||||||||||||||||
Commercial | 1,065 | 75 | 818 | - | |||||||||||||||||||||||||||||
Farmland | 853 | 1 | 539 | - | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 5,731 | 93 | 4,103 | - | |||||||||||||||||||||||||||||
Agriculture | 1,543 | 6 | 869 | - | |||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||
Commercial | 211 | - | 690 | - | |||||||||||||||||||||||||||||
Land | 7,855 | 37 | 7,449 | - | |||||||||||||||||||||||||||||
Installment loans to individuals | 106 | 1 | 193 | - | |||||||||||||||||||||||||||||
Totals | $ | 18,450 | $ | 221 | $ | 15,437 | $ | - | |||||||||||||||||||||||||
The Company did not record income from the receipt of cash payments related to non-accruing loans during the three month periods ended March 31, 2014 and 2013. If interest on non-accruing loans had been recognized at the original interest rates stipulated in the respective loan agreements, interest income would have increased $0.1 million and $0.2 million for the three months ended March 31, 2014 and 2013, respectively. Interest income recognized on impaired loans in the table above, if any, represents interest the Company recognized on accruing troubled debt restructurings (“TDRs”). Because the loans currently identified as impaired have unique risk characteristics, the Company determined the related valuation allowances for such loans on a loan-by-loan basis. | |||||||||||||||||||||||||||||||||
At March 31, 2014 and December 31, 2013, $14.3 million and $12.9 million, respectively, in loans were classified as TDRs. Of those balances, $6.2 million and $5.9 million were accruing as of March 31, 2014 and December 31, 2013, respectively and the remaining balance of TDRs consists of non-accruing loans. In a majority of these loans, the Company has granted concessions regarding interest rates, payment structure and/or maturity. During the three months ended March 31, 2014 and 2013, the terms of certain loans were modified as troubled debt restructurings. These term modifications included a combination of a partial charge-off of principal along with extensions of the maturity date at the loan’s original interest rate, which was lower than the current market rate for new debt with similar risk. The maturity date extensions granted were for periods ranging from 6 months to 10 years. Forgone interest related to concessions granted on TDRs totaled $49 thousand and $45 thousand for the three months ended March 31, 2014 and 2013, respectively. As of March 31, 2014, the Company was not committed to lend any additional funds to borrowers whose obligations to the Company were restructured. | |||||||||||||||||||||||||||||||||
The following tables present loan modifications by class which resulted in TDRs: | |||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||||||
(dollar amounts in thousands) | TDRs | Investment | Investment | ||||||||||||||||||||||||||||||
Trouble Debt Restructurings | |||||||||||||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 166 | $ | 166 | ||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 4 | 920 | 920 | ||||||||||||||||||||||||||||||
Agriculture | 1 | 662 | 662 | ||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||
Land | 1 | 160 | 160 | ||||||||||||||||||||||||||||||
Installment loans to individuals | 1 | 73 | 73 | ||||||||||||||||||||||||||||||
Totals | 8 | $ | 1,981 | $ | 1,981 | ||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||||||
(dollar amounts in thousands) | TDRs | Investment | Investment | ||||||||||||||||||||||||||||||
Trouble Debt Restructurings | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 4 | $ | 151 | $ | 151 | ||||||||||||||||||||||||||||
Totals | 4 | $ | 151 | $ | 151 | ||||||||||||||||||||||||||||
No loans were modified as troubled debt restructurings within the twelve months prior to March 31, 2014, for which there was a payment default during the three months ended March 31, 2014. One commercial and industrial loan with a recorded investment of $49 thousand was modified as a troubled debt restructuring within twelve months prior to March 31, 2013, and had a payment default during the first quarter of 2013. | |||||||||||||||||||||||||||||||||
The Bank actively works with the borrowers to resolve their delinquencies. | |||||||||||||||||||||||||||||||||
Credit Quality | |||||||||||||||||||||||||||||||||
The following tables stratify the loan portfolio by the Company’s internal risk grading system as well as certain other information concerning the credit quality of the loan portfolio: | |||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Credit Risk Grades | Days Past Due | |||||||||||||||||||||||||||||||
Total Gross | Special | 90+ and Still | Non- | Accruing | |||||||||||||||||||||||||||||
March 31, 2014 | Loans | Pass | Mention | Substandard | Doubtful | 30-59 | 60-89 | Accruing | Accruing | TDR | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Multi-family residential | $ | 47,610 | $ | 47,035 | $ | - | $ | 575 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Residential 1 to 4 family | 111,776 | 109,775 | 665 | 1,336 | - | - | - | - | 105 | 494 | |||||||||||||||||||||||
Home equity lines of credit | 41,301 | 40,969 | - | 332 | - | - | - | - | - | - | |||||||||||||||||||||||
Commercial | 580,990 | 536,047 | 22,792 | 22,151 | - | - | - | - | 485 | 388 | |||||||||||||||||||||||
Farmland | 66,149 | 62,965 | 969 | 2,215 | - | - | - | - | - | - | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 146,710 | 130,808 | 5,876 | 10,026 | - | 744 | 15 | - | 2,786 | 3,016 | |||||||||||||||||||||||
Agriculture | 57,632 | 54,972 | 663 | 1,997 | - | - | - | - | 727 | 299 | |||||||||||||||||||||||
Other | 753 | 753 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||
Single family residential | 6,035 | 6,035 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Single family residential - Spec. | 620 | 620 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Multi-family | 3,946 | 3,946 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Hospitality | 3,088 | 3,088 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Commercial | 9,042 | 9,042 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Land | 27,908 | 16,608 | 2,273 | 9,027 | - | 71 | 41 | - | 5,813 | 1,976 | |||||||||||||||||||||||
Installment loans to individuals | 10,323 | 10,163 | - | 160 | - | - | - | - | 21 | 73 | |||||||||||||||||||||||
Overdrafts | 187 | 187 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Totals | $ | 1,114,070 | $ | 1,033,013 | $ | 33,238 | $ | 47,819 | $ | - | $ | 815 | $ | 56 | $ | - | $ | 9,937 | $ | 6,246 | |||||||||||||
(dollar amounts in thousands) | Credit Risk Grades | Days Past Due | |||||||||||||||||||||||||||||||
Total Gross | Special | 90+ and Still | Non- | Accruing | |||||||||||||||||||||||||||||
December 31, 2013 | Loans | Pass | Mention | Substandard | Doubtful | 30-59 | 60-89 | Accruing | Accruing | TDR | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Multi-family residential | $ | 31,140 | $ | 30,560 | $ | - | $ | 580 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Residential 1 to 4 family | 88,904 | 87,350 | 490 | 1,064 | - | - | - | - | 449 | 499 | |||||||||||||||||||||||
Home equity lines of credit | 31,178 | 31,021 | - | 157 | - | - | - | - | - | - | |||||||||||||||||||||||
Commercial | 432,203 | 414,058 | 3,574 | 14,571 | - | - | - | - | 672 | 225 | |||||||||||||||||||||||
Farmland | 50,414 | 47,988 | 975 | 1,451 | - | - | - | - | - | - | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 119,121 | 105,991 | 5,276 | 7,854 | - | 100 | - | - | 2,180 | 3,119 | |||||||||||||||||||||||
Agriculture | 32,686 | 31,279 | 196 | 1,211 | - | - | - | - | 789 | - | |||||||||||||||||||||||
Other | 38 | 38 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||
Single family residential | 3,873 | 3,873 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Single family residential - Spec. | 1,153 | 1,153 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Multi-family | 736 | 736 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Commercial | 7,937 | 7,937 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Land | 24,523 | 15,244 | 862 | 8,417 | - | - | - | - | 5,910 | 2,010 | |||||||||||||||||||||||
Installment loans to individuals | 3,246 | 3,050 | 10 | 186 | - | - | 2 | - | 117 | - | |||||||||||||||||||||||
Overdrafts | 332 | 332 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Totals | $ | 827,484 | $ | 780,610 | $ | 11,383 | $ | 35,491 | $ | - | $ | 100 | $ | 2 | $ | - | $ | 10,117 | $ | 5,853 | |||||||||||||
Purchased Credit Impaired Loans | |||||||||||||||||||||||||||||||||
As part of the merger described in Note 2. Business Combination, the Company acquired on February 28, 2014, a portfolio of loans, some of which have shown evidence of credit deterioration since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount and unpaid principal balance of those loans are as follows: | |||||||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Unpaid | Carrying | |||||||||||||||||||||||||||||||
Principal Balance | Amount | ||||||||||||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Residential 1 to 4 family | $ | 893 | $ | 626 | |||||||||||||||||||||||||||||
Home equity lines of credit | 98 | 81 | |||||||||||||||||||||||||||||||
Commercial | 7,506 | 5,498 | |||||||||||||||||||||||||||||||
Farmland | 2,094 | 1,728 | |||||||||||||||||||||||||||||||
Total real estate secured | 10,591 | 7,933 | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 3,325 | 2,548 | |||||||||||||||||||||||||||||||
Agriculture | 1,280 | 1,277 | |||||||||||||||||||||||||||||||
Total commercial | 4,605 | 3,825 | |||||||||||||||||||||||||||||||
Land | 1,148 | 986 | |||||||||||||||||||||||||||||||
Total net loans | $ | 16,344 | $ | 12,744 | |||||||||||||||||||||||||||||
Accretable yield, or income expected to be collected, is as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||||||
Balance at January 1, 2014 | $ | - | |||||||||||||||||||||||||||||||
New loans purchased | 4,801 | ||||||||||||||||||||||||||||||||
Accretion of income | (117 | ) | |||||||||||||||||||||||||||||||
Reclassifications from nonaccretable difference | 25 | ||||||||||||||||||||||||||||||||
Disposals | - | ||||||||||||||||||||||||||||||||
Balance at March 31, 2014 | $ | 4,709 | |||||||||||||||||||||||||||||||
No ALLL was recorded on purchased credit impaired loans as of March 31, 2014. Purchased credit impaired loans purchased during the three months ended March 31, 2014 for which it was probable at acquisition that all contractually required payments would not be collected are as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||||||
Contractually required payments receivable of loans purchased during the period: | |||||||||||||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Residential 1 to 4 family | $ | 1,159 | |||||||||||||||||||||||||||||||
Home equity lines of credit | 113 | ||||||||||||||||||||||||||||||||
Commercial | 9,199 | ||||||||||||||||||||||||||||||||
Farmland | 2,858 | ||||||||||||||||||||||||||||||||
Total real estate secured | 13,329 | ||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 3,514 | ||||||||||||||||||||||||||||||||
Agriculture | 1,593 | ||||||||||||||||||||||||||||||||
Total commercial | 5,107 | ||||||||||||||||||||||||||||||||
Land | 1,285 | ||||||||||||||||||||||||||||||||
Total payments receivable | $ | 19,721 | |||||||||||||||||||||||||||||||
Cash flows expected to be collected at acquisition | $ | 17,737 | |||||||||||||||||||||||||||||||
Fair value of purchase impaired loans at acquisition | $ | 12,936 | |||||||||||||||||||||||||||||||
Allowance_for_Loan_and_Lease_L
Allowance for Loan and Lease Losses (ALLL) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Allowance for Loan and Lease Losses (ALLL) | ' | |||||||||||||||||||||||||
Allowance for Loan and Lease Losses (ALLL) | ' | |||||||||||||||||||||||||
Note 6. Allowance for Loan and Lease Losses (ALLL) | ||||||||||||||||||||||||||
The following tables summarize the activity in the ALLL attributed to various segments in the loan portfolio: | ||||||||||||||||||||||||||
Real Estate | All Other | |||||||||||||||||||||||||
(dollar amounts in thousands) | Secured | Commercial | Construction | Land | Installment | Loans | Unallocated | Total | ||||||||||||||||||
Balance, December 31, 2013 | $ | 9,157 | $ | 4,857 | $ | 262 | $ | 3,451 | $ | 100 | $ | 32 | $ | - | $ | 17,859 | ||||||||||
Charge-offs | (92 | ) | - | - | - | (2 | ) | - | - | (94 | ) | |||||||||||||||
Recoveries | 16 | 175 | - | 7 | 5 | - | - | 203 | ||||||||||||||||||
Provisions for loan losses | 169 | (134 | ) | (115 | ) | (303 | ) | (16 | ) | (6 | ) | 405 | - | |||||||||||||
Balance, March 31, 2014 | $ | 9,250 | $ | 4,898 | $ | 147 | $ | 3,155 | $ | 87 | $ | 26 | $ | 405 | $ | 17,968 | ||||||||||
Balance, December 31, 2012 | $ | 6,879 | $ | 6,154 | $ | 313 | $ | 4,670 | $ | 64 | $ | 38 | $ | - | $ | 18,118 | ||||||||||
Charge-offs | - | (339 | ) | (169 | ) | (34 | ) | (118 | ) | - | - | (660 | ) | |||||||||||||
Recoveries | 116 | 136 | - | 3 | 30 | - | - | 285 | ||||||||||||||||||
Provisions for loan losses | (881 | ) | 769 | - | (72 | ) | 125 | (5 | ) | 64 | - | |||||||||||||||
Balance, March 31, 2013 | $ | 6,114 | $ | 6,720 | $ | 144 | $ | 4,567 | $ | 101 | $ | 33 | $ | 64 | $ | 17,743 | ||||||||||
The following tables summarize comparative metrics about the ALLL attributed to various segments of the loan portfolio: | ||||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||
Real Estate | All Other | |||||||||||||||||||||||||
(dollar amounts in thousands) | Secured | Commercial | Construction | Land | Installment | Loans | Unallocated | Total | ||||||||||||||||||
Amount of allowance attributed to: | ||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | - | $ | 747 | $ | - | $ | 2,432 | $ | - | $ | - | $ | 3,179 | ||||||||||||
Loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
General portfolio allocation | $ | 9,250 | $ | 4,151 | $ | 147 | $ | 723 | $ | 87 | $ | 26 | $ | 405 | $ | 14,789 | ||||||||||
Loans individually evaluated for impairment | $ | 1,318 | $ | 6,189 | $ | - | $ | 7,955 | $ | - | $ | 94 | $ | 15,556 | ||||||||||||
Loans acquired with deteriorated credit quality | $ | 7,933 | $ | 3,825 | $ | - | $ | 986 | $ | - | $ | - | $ | 12,744 | ||||||||||||
Loans collectively evaluated for impairment | $ | 838,575 | $ | 195,081 | $ | 22,731 | $ | 18,967 | $ | 10,323 | $ | 93 | $ | 1,085,770 | ||||||||||||
General reserves to total loans collectively evaluated for impairment | 1.10% | 2.13% | 0.65% | 3.81% | 0.84% | 27.96% | 1.36% | |||||||||||||||||||
Total gross loans | $ | 847,826 | $ | 205,095 | $ | 22,731 | $ | 27,908 | $ | 10,323 | $ | 187 | $ | 1,114,070 | ||||||||||||
Total allowance to gross loans | 1.09% | 2.39% | 0.65% | 11.30% | 0.84% | 13.90% | 1.61% | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Real Estate | All Other | |||||||||||||||||||||||||
(dollar amounts in thousands) | Secured | Commercial | Construction | Land | Installment | Loans | Unallocated | Total | ||||||||||||||||||
Amount of allowance attributed to: | ||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | - | $ | 623 | $ | - | $ | 2,532 | $ | - | $ | - | $ | 3,155 | ||||||||||||
General portfolio allocation | $ | 9,025 | $ | 4,158 | $ | 258 | $ | 870 | $ | 99 | $ | 32 | $ | 262 | $ | 14,704 | ||||||||||
Loans individually evaluated for impairment | $ | 1,462 | $ | 5,291 | $ | - | $ | 7,696 | $ | - | $ | - | $ | 14,449 | ||||||||||||
Loans collectively evaluated for impairment | $ | 632,377 | $ | 146,554 | $ | 13,699 | $ | 16,827 | $ | 3,246 | $ | 332 | $ | 813,035 | ||||||||||||
General reserves to total loans collectively evaluated for impairment | 1.43% | 2.84% | 1.88% | 5.17% | 3.05% | 9.64% | 1.81% | |||||||||||||||||||
Total gross loans | $ | 633,839 | $ | 151,845 | $ | 13,699 | $ | 24,523 | $ | 3,246 | $ | 332 | $ | 827,484 | ||||||||||||
Total allowance to gross loans | 1.44% | 3.20% | 1.91% | 14.07% | 3.08% | 9.64% | 2.16% | |||||||||||||||||||
The total gross loans of $1.114 billion in the table above as of March 31, 2014, includes $830 million of legacy Heritage Oaks loans, which the Bank originated, and $280.8 million of loans acquired through the MISN acquisition (at fair market value on the acquisition date). The loans acquired through the MISN acquisition carry no related ALLL at March 31, 2014, as the remaining un-accreted purchase discounts associated with these loans has been deemed sufficient to absorb probable credit losses associated within the acquired MISN portfolio. The ALLL as a percentage of legacy Heritage Oaks loans was 2.16% of such loans as of March 31, 2014. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
Note 7. Income Taxes | |
The Company recorded an income tax benefit of $1.1 million for the three months ended March 31, 2014, resulting in an effective overall tax rate of 37.9%. For the first quarter of 2013 the Company’s income tax expense was $2.4 million, or an effective tax rate of 39.1%. | |
As of March 31, 2014, the Company’s deferred tax assets total approximately $32.4 million, of which $12.0 million was due to the MISN merger described in Note 2. Business Combination. As of December 31, 2013, the Company’s deferred tax assets totaled $21.6 million. The Company is subject to income taxation by both federal and state taxing authorities. Income tax returns for the years ended December 31, 2013, 2012, 2011, and 2010 are open to audit by federal and state taxing authorities, and 2009 remains open to audit by the California Franchise Tax Board. The Company does not have any uncertain income tax positions and has not accrued for any interest or penalties as of March 31, 2014 and December 31, 2013. | |
Management assessed the impact of the MISN transaction for limitations under I.R.C. Section 382 and determined that, given the assumption that the Company generates sufficient future taxable income to utilize NOLs, no loss of NOL utilization would result from the estimated annual I.R.C. Section 382 base limitation resulting from the transaction. Furthermore, due to the fact that MISN was in a net built-in gain position (“NUBIG”) the Company’s annual I.R.C. section 382 limitation will likely increase over the next five years for realized built-in gains (“RBIG”). Further analysis resulting from the final preparation of MISN’s December 31, 2013, and February 28, 2014, stub period income tax returns must be completed, however, before the impact of the NUBIG and RBIG can be finalized. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||
Note 8. Goodwill and Other Intangible Assets | ||||||||||||||
Intangible assets consist of goodwill and core deposit intangible assets (“CDI”) associated with the acquisition of Business First Bank in 2007, the December 2012 acquisition of the Morro Bay branch from Coast National Bank and the MISN Bancorp acquisition on February 28, 2014 (see also Note 2. Business Combination). The balance of goodwill at March 31, 2014 is $24.6 million, as compared to $11.2 million at December 31, 2013. | ||||||||||||||
CDI assets are subject to amortization. The gross carrying amount of CDI of $9.3 million at March 31, 2014, reported in the table below, has increased by $5.1 from the $4.2 million reported at December 31, 2013. Amortization for the three months ended March 31, 2014, and 2013 was $0.2 million and $0.1 million, respectively. | ||||||||||||||
The following table summarizes the gross carrying amount, accumulated amortization and net carrying amount of CDI as of March 31, 2014, and provides an estimate for future amortization for 2014 and the next five years: | ||||||||||||||
(dollar amounts in thousands) | Gross Carrying | Accumulated | Net Carrying | |||||||||||
31-Mar-14 | Amount | Amortization | Amount | |||||||||||
Core deposit intangible | $ | 9,261 | $ | (3,023 | ) | $ | 6,238 | |||||||
Beginning | Acquired | Estimated | Projected Ending | |||||||||||
Period | Balance | CDI’s | Amortization | Balance | ||||||||||
Year 2014 | $ | 1,344 | $ | 5,060 | $ | (1,056 | ) | $ | 5,348 | |||||
Year 2015 | 5,348 | (1,049 | ) | 4,299 | ||||||||||
Year 2016 | 4,299 | (944 | ) | 3,355 | ||||||||||
Year 2017 | 3,355 | (588 | ) | 2,767 | ||||||||||
Year 2018 | 2,767 | (549 | ) | 2,218 | ||||||||||
Year 2019 | 2,218 | (522 | ) | 1,696 | ||||||||||
Other_Real_Estate_Owned_OREO
Other Real Estate Owned ("OREO") | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Other Real Estate Owned ("OREO") | ' | ||||||||||||||||
Other Real Estate Owned ("OREO") | ' | ||||||||||||||||
Note 9. Other Real Estate Owned (“OREO”) | |||||||||||||||||
The following tables summarize the changes in the balance of OREO for the three month periods ended March 31, 2014 and 2013: | |||||||||||||||||
Balance | Balance | ||||||||||||||||
December 31, | March 31, | ||||||||||||||||
(dollar amounts in thousands) | 2013 | Additions | Disposals | Writedowns | 2014 | ||||||||||||
Real Estate Secured | |||||||||||||||||
Residential 1 to 4 family | $ | - | $ | 248 | $ | - | $ | - | $ | 248 | |||||||
Construction | |||||||||||||||||
Tract | - | 65 | - | - | 65 | ||||||||||||
Totals | $ | - | $ | 313 | $ | - | $ | - | $ | 313 | |||||||
Balance | Balance | ||||||||||||||||
December 31, | March 31, | ||||||||||||||||
(dollar amounts in thousands) | 2012 | Additions | Disposals | Writedowns | 2013 | ||||||||||||
Construction | |||||||||||||||||
Commercial | $ | - | $ | 1,211 | $ | (1,211 | ) | $ | - | $ | - | ||||||
Totals | $ | - | $ | 1,211 | $ | (1,211 | ) | $ | - | $ | - | ||||||
The Company did not realize any gains or losses related to disposal of OREO during the three months ended March 31, 2014 or 2013. |
Deposits
Deposits | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Deposits. | ' | |||||||
Deposits | ' | |||||||
Note 10. Deposits | ||||||||
The following table provides a summary of deposits by product type: | ||||||||
March 31, | December 31, | |||||||
(dollar amounts in thousands) | 2014 | 2013 | ||||||
Non-interest bearing deposits | $ | 443,922 | $ | 291,856 | ||||
Interest bearing deposits: | ||||||||
NOW accounts | 108,604 | 87,298 | ||||||
Money market deposit accounts | 422,728 | 332,272 | ||||||
Other savings deposits | 94,627 | 42,648 | ||||||
Time certificates of $100 or more | 203,323 | 148,525 | ||||||
Other time deposits | 92,625 | 71,296 | ||||||
Total deposits | $ | 1,365,829 | $ | 973,895 | ||||
Capital
Capital | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Capital | ' | ||||||||||||
Capital | ' | ||||||||||||
Note 11. Capital | |||||||||||||
The following table sets forth the Company’s and the Bank’s actual regulatory capital ratios and the regulatory standard: | |||||||||||||
Regulatory | 31-Mar-14 | 31-Dec-13 | |||||||||||
Standard | |||||||||||||
Well | Heritage Oaks | Heritage Oaks | |||||||||||
Ratio | Capitalized | Bancorp | Bank | Bancorp | Bank | ||||||||
Leverage ratio | 5.00% | 11.64% | 11.25% | 10.20% | 9.82% | ||||||||
Tier I capital to risk weighted assets | 6.00% | 12.25% | 11.84% | 12.91% | 12.42% | ||||||||
Total risk based capital to risk weighted assets | 10.00% | 13.50% | 13.10% | 14.17% | 13.68% | ||||||||
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Share-Based Compensation Plans | ' | |||||||||||
Share-Based Compensation Plans | ' | |||||||||||
Note 12. Share-Based Compensation Plans | ||||||||||||
As of March 31, 2014, the Company had two share-based employee compensation plans, which are more fully described in Note 14, Share-Based Compensation Plans, of the consolidated financial statements in the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2013. These plans include the “1997 Stock Option Plan” and the “2005 Equity Based Compensation Plan.” | ||||||||||||
The following table provides a summary of the expenses the Company has recognized related to share-based compensation for the periods indicated below: | ||||||||||||
For the Three Months Ended | ||||||||||||
March 31, | ||||||||||||
(dollar amounts in thousands) | 2014 | 2013 | ||||||||||
Share-based compensation expense: | ||||||||||||
Stock option expense | $ | 164 | $ | 61 | ||||||||
Restricted stock expense | 84 | 73 | ||||||||||
Total expense | $ | 247 | $ | 134 | ||||||||
Unrecognized compensation expense: | ||||||||||||
Stock option expense | $ | 1,013 | $ | 583 | ||||||||
Restricted stock expense | 865 | 640 | ||||||||||
Total unrecognized expense | $ | 1,878 | $ | 1,223 | ||||||||
At March 31, 2014, there was a total of $1.0 million of unrecognized compensation expense related to non-vested stock options and $0.9 million of unrecognized compensation expense related to non-vested restricted stock. That expense is expected to be recognized over weighted-average periods of 3.0 years and 2.8 years, respectively. | ||||||||||||
The following table provides a summary of activity related to options granted, exercised, and forfeited: | ||||||||||||
Options Outstanding | Options | |||||||||||
Number | Weighted Average | Available for | ||||||||||
of Shares | Exercise Price | Grant | ||||||||||
Balance, December 31, 2013 | 562,257 | $ | 6.34 | 1,593,616 | ||||||||
Granted | 164,576 | 7.69 | ||||||||||
Forfeited | (52,885 | ) | 8.54 | |||||||||
Expired | (2,604 | ) | 10.12 | |||||||||
Exercised | (31,776 | ) | 3.48 | |||||||||
Balance, March 31, 2014 | 639,568 | $ | 6.62 | 2,225,869 | ||||||||
The Company grants restricted stock periodically as a part of the 2005 Equity Based Compensation Plan for the benefit of employees. Restricted shares issued typically vest ratably over a period of three to five years depending on the specific terms of the restricted share grant. Restricted share grants may be subject to the achievement of certain performance goals. Compensation costs related to restricted stock awards are charged to earnings (included in salaries and employee benefits) over the vesting period of those awards. The fair value of performance-based grants is initially based on the assumption that performance goals will be achieved. If such goals are not met, no compensation cost is recognized and previously-recognized compensation cost is reversed. The following table provides a summary of activity related to restricted stock granted, vested and forfeited: | ||||||||||||
Number of | Average Grant | |||||||||||
Shares | Date Fair Value | |||||||||||
Balance December 31, 2013 | 195,048 | $ | 4.87 | |||||||||
Granted | 58,394 | 7.66 | ||||||||||
Vested | - | - | ||||||||||
Forfeited | (25,862 | ) | 5.8 | |||||||||
Balance March 31, 2014 | 227,580 | $ | 5.48 | |||||||||
Included in the table above are performance-based grants of restricted stock totaling 21,241 shares as of March 31, 2014. | ||||||||||||
The following table provides a summary of the aggregate intrinsic value of options vested and expected to vest and exercisable: | ||||||||||||
Weighted Average | ||||||||||||
Weighted | Remaining | Aggregate | ||||||||||
Average | Contractual Life | Intrinsic | ||||||||||
Shares | Exercise Price | (Years) | Value | |||||||||
Vested or expected to vest | 608,252 | $ | 6.61 | 7.8 | $ | 1,266,832 | ||||||
Exercisable at March 31, 2014 | 271,888 | $ | 6.59 | 6.07 | $ | 775,559 | ||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value, which is subject to change based on the fair market value of the Company’s stock. The aggregate intrinsic value of options exercised was $134 thousand for the year to date period ended March 31, 2014. | ||||||||||||
The following table presents the assumptions used in the calculation of the weighted average fair value of options granted: | ||||||||||||
For the Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Expected volatility | 54.00% | 55.30% | ||||||||||
Expected term (years) | 6 | 6 | ||||||||||
Dividend yield | 0.00% | 0.00% | ||||||||||
Risk free rate | 1.76% | 1.14% | ||||||||||
Weighted-average grant date fair value | $ | 3.99 | $ | 3.01 | ||||||||
Preferred_Stock
Preferred Stock | 3 Months Ended |
Mar. 31, 2014 | |
Preferred Stock | ' |
Preferred Stock | ' |
Note 13. Preferred Stock | |
Under its Amended Articles of Incorporation, the Company is authorized to issue up to 5,000,000 shares of preferred stock, in one or more series, having such voting powers, designations, preferences, rights, qualifications, limitations and restrictions as determined by the Board of Directors. | |
U.S Treasury’s Capital Purchase Program (“CPP”) | |
In 2013, the Company repurchased the 21,000 shares of Series A Preferred Stock and the related warrant to purchase 611,650 shares of the Company’s common stock that had been issued in March 2009 to the U.S. Treasury under the terms of the CPP. The Company completed the repurchase of the Series A Preferred Stock at par, including accrued but unpaid dividends, for $21.2 million on July 17, 2013. The warrant was repurchased on August 7, 2013 for $1.6 million. | |
Series C Convertible Perpetual Preferred Stock | |
On March 12, 2010, the Company sold 1,189,538 shares of its Series C Convertible Perpetual Preferred Stock (“Series C Preferred Stock”) for $3.6 million as part of the overall $60 million private placement of securities completed at that time. | |
Series C Preferred Stock is a non-voting class of stock with a liquidation preference over the Company’s common stock equal to the original conversion per share price of $3.25, plus any accrued but unpaid dividends. The Series C Preferred Stock will convert to shares of common stock on a one share for one share basis if the original holder of such shares transfers them to an unaffiliated third party or otherwise makes a “Permissible Transfer”, as defined in the terms of the Series C Preferred Stock. The Series C Preferred Stock will not be redeemable by either the Company or by the holders. Holders of the Series C Preferred Stock do not have any voting rights, including the right to elect any directors, other than the customary limited voting rights with respect to matters significantly and adversely affecting the rights and privileges of the Series C Preferred Stock. There is no stated dividend rate for shares of Series C Preferred Stock. However, in the event that a common stock dividend is declared, holders of Series C Preferred Stock are entitled to a per share dividend equivalent to that declared for each common share into which Series C Preferred Stock is then convertible. | |
The fair market value of the Company’s common stock was higher than the conversion price of $3.25 per share of the Series C Preferred Stock on the date the Company made a firm commitment to issue the Series C Preferred Stock. Therefore, the Series C Preferred Stock has a contingent beneficial conversion feature associated with it. However, since the conversion of the Series C Preferred Stock remains contingent upon the holder’s transfer of the securities to an unaffiliated third party with no specified date for its conversion to common stock, the Company will record the contingent beneficial conversion feature as an initial discount on Series C Preferred Stock and additional paid in capital, with a concurrent immediate accretion of the established discount and corresponding charge to retained earnings on the date the Series C Preferred Stock converts to common stock. The amount of the contingent beneficial conversion feature is approximately $0.2 million and will be recorded as described upon the original holder’s transfer of Series C Preferred Stock through a Permissible Transfer. Such transfer has not occurred as of March 31, 2014. | |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Earnings (Loss) Per Share | ' | |||||||||||
Earnings (Loss) Per Share | ' | |||||||||||
Note 14. Earnings (Loss ) Per Share | ||||||||||||
Basic earnings (loss) per common share are computed by dividing net income (loss) available to common shareholders by the weighted-average number of common and participating preferred shares outstanding for the reporting period. In periods when the Company generates a net loss, such as the current quarter, preferred shares are not included in the calculation of basic loss per share. Diluted earnings (loss) per common share are computed by dividing net income (loss) available to common shareholders by the weighted-average number of common shares outstanding over the reporting period, adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares are calculated using the treasury stock method and include incremental shares issuable upon exercise of outstanding stock options, other share-based compensation awards and any other security in which its conversion / exercise may result in the issuance of common stock, such as the warrant the Company issued to the U.S. Treasury during 2009, which was repurchased and cancelled in August 2013. In addition, common stock equivalents include common shares that are issuable on the conversion of the Series C Perpetual Preferred Stock, which was issued during 2010, using the if-converted method. The computation of diluted earnings (loss) per common share excludes the impacts of the assumed exercise or issuance of securities that would have an anti-dilutive effect, which can occur when the Company reports a net loss or when the market price for the Company’s stock falls below the exercise price of equity awards issued by the Company. | ||||||||||||
The following table sets forth the number of shares used in the calculation of both basic and diluted earnings (loss) per common share: | ||||||||||||
For the Three Months Ended March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Net | Net | |||||||||||
(dollar amounts in thousands except per share data) | Income | Shares | Income | Shares | ||||||||
Net (loss) income | $ | -1,763 | $ | 3,730 | ||||||||
Dividends and accretion on preferred stock | - | -358 | ||||||||||
Net (loss) income available to common shareholders | $ | -1,763 | $ | 3,372 | ||||||||
Weighted average shares outstanding | 27,816,911 | 26,301,542 | ||||||||||
Basic (loss) earnings per common share | $ | -0.06 | $ | 0.13 | ||||||||
Dilutive effect of share-based compensation awards and common stock warrants | - | 225,915 | ||||||||||
Weighted average diluted shares outstanding | 27,816,911 | 26,527,457 | ||||||||||
Diluted (loss) earnings per common share | $ | -0.06 | $ | 0.13 | ||||||||
For the three months ended March 31, 2013, common stock equivalents, primarily options, totaling approximately 325,000 shares, were excluded from the calculation of diluted earnings per share, as their impact would be anti-dilutive. As a result of the net loss reported for the three months ended March 31, 2014, any potential dilution associated with share-based compensation awards, totaling approximately 442,000 shares, were not included in the calculation of diluted loss per common share for that period, as their impact would be anti-dilutive. |
Restructuring_Activities
Restructuring Activities | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Restructuring Activities | ' | ||||||||||
Restructuring Activities | ' | ||||||||||
Note 15. Restructuring Activities | |||||||||||
In conjunction with the MISN merger described in Note 2. Business Combination, the Company has initiated a restructuring and integration plan which is expected to result in total non-interest expenses of approximately $0.7 million related to integration of MISN systems into the Company’s systems, $3.1 million related to elimination of owned and leased facilities and related fixed assets, $2.2 million related to contract cancellation costs of duplicative systems and services and $3.8 million related to both termination benefits paid to employees displaced as a result of the merger and for retention of key employees through integration-related milestone dates. $6.9 million of these costs have already been incurred in the first quarter of 2014. | |||||||||||
Expected costs of this restructuring and integration plan are as follows: | |||||||||||
Total Costs | Amount | Cumulative | |||||||||
Expected To | Incurred | Incurred | |||||||||
(dollar amounts in thousands) | Be Incurred | 1st Qtr 2014 | To 03/31/2014 | ||||||||
System integration | $ | 1,020 | $ | 223 | $ | 223 | |||||
Fixed asset consolidation | 3,072 | 2,351 | 2,393 | ||||||||
Contract cancellation costs | 1,944 | 1,656 | 1,656 | ||||||||
Employee termination and retention | 3,755 | 2,641 | 2,641 | ||||||||
Total Restructuring Costs | $ | 9,791 | $ | 6,871 | $ | 6,913 | |||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Summary of Significant Accounting Policies | ' |
Acquired Loans and Leases | ' |
Acquired Loans and Leases | |
Purchased loans and leases are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an ALLL is not recorded at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased credit impaired or purchased non-impaired. Purchased credit impaired loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. | |
Purchased credit impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as loan purpose type, term, accrual status and interest rate characteristics. The Company estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flow in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (non-accretable difference). | |
Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, an impairment loss is recorded. If the present value of expected cash flows is significantly greater than the carrying amount, it is recognized as part of future interest income. | |
Business Combinations and Related Matters | ' |
Business Combinations and Related Matters | |
Business combinations are accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under the acquisition method the acquiring entity in a business combination recognizes 100 percent of the acquired assets and assumed liabilities, regardless of the percentage owned, at their estimated fair values as of the date of acquisition. Any excess of the purchase price over the fair value of net assets and other identifiable intangible assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including other identifiable assets, exceed the purchase price, a bargain purchase gain is recognized. Assets acquired and liabilities assumed from contingencies must also be recognized at fair value, if the fair value can be determined during the measurement period. Results of operations of an acquired business are included in the statement of operations from the date of acquisition. Acquisition-related costs, including conversion charges, are expensed as incurred. The Company applied this guidance to the MISN acquisition that was consummated in 2014. | |
Recent Accounting Guidance Adopted | ' |
Recent Accounting Guidance Adopted | |
There has been no new accounting guidance that has been adopted by the Company since December 31, 2013. | |
Recent Accounting Guidance Not Yet Effective | ' |
Recent Accounting Guidance Not Yet Effective | |
On January 17, 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, a consensus of the FASB Emerging Issues Task Force. This Update provides clarification as to when an in-substance repossession or foreclosure has occurred, i.e., the creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan and, therefore, the loan receivable should be derecognized and the real estate property should be recognized. Under ASU No. 2014-04, a creditor has received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either (1) the creditor obtaining legal title to the property upon completion of a foreclosure or (2) the borrower conveying all interest in the property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or a similar legal agreement. The Update also will require disclosure in annual and interim financial statements of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. For public business entities, the amendments in this Update are effective for annual and interim periods beginning after December 15, 2014. The Company expects to adopt the provisions of ASU No. 2014-04 in the first quarter of 2015. Adoption of this Update is not expected to have a material impact on the Company’s consolidated financial statements. |
Business_Combination_Tables
Business Combination (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Business Combination | ' | |||||||
Summary of acquired assets and assumed liabilities | ' | |||||||
(dollar amounts in thousands) | ||||||||
Assets acquired | ||||||||
Cash and due from banks | $ | 3,212 | ||||||
Interest-bearing deposits in other banks | 34,386 | |||||||
Securities available for sale | 76,159 | |||||||
Loans held for sale | 338 | |||||||
Loans and leases receivable | 280,419 | |||||||
Premises and equipment | 15,499 | |||||||
Deferred tax assets, net | 11,972 | |||||||
Goodwill | 13,371 | |||||||
Core deposit intangible asset | 5,060 | |||||||
Bank owned life insurance | 8,263 | |||||||
Other assets | 4,833 | |||||||
Total assets acquired | $ | 453,512 | ||||||
Liabilities assumed | ||||||||
Deposits | $ | 371,501 | ||||||
Advances from Federal Home Loan Bank | 6,071 | |||||||
Junior subordinated debentures | 4,804 | |||||||
Other liabilities | 2,174 | |||||||
Total liabilities assumed | $ | 384,550 | ||||||
Total consideration paid | $ | 68,962 | ||||||
Summary of consideration paid for MISN | ' | |||||||
(dollar amounts in thousands) | 28-Feb-14 | |||||||
Consideration Paid | ||||||||
Cash payments for MISN shares outstanding | $ 2,554 | |||||||
Cash payments for MISN warrants | 5,766 | |||||||
Cash payments for MISN options | 387 | |||||||
Shares issued, @ $7.99 per share | 60,255 | |||||||
Total consideration | 68,962 | |||||||
Schedule of unaudited pro forma information | ' | |||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
(dollar amounts in thousands except per share data) | 2014 | 2013 | ||||||
Net interest Income | $ | 15,379 | $ | 14,545 | ||||
Provision for loan and lease losses | - | 100 | ||||||
Noninterest income | 2,364 | 6,642 | ||||||
Noninterest expense | 20,473 | 14,207 | ||||||
(Loss) income before income taxes | (2,730 | ) | 6,880 | |||||
Income tax (benefit) expense | (1,013 | ) | 2,690 | |||||
Net (loss) income | $ | (1,717 | ) | $ | 4,190 | |||
(Loss) Earnings Per Common Share | ||||||||
Basic | $ | (0.05 | ) | $ | 0.11 | |||
Diluted | $ | (0.05 | ) | $ | 0.11 | |||
Fair_Value_of_Assets_and_Liabi1
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value of Assets and Liabilities | ' | ||||||||||||||||
Summary of the financial instruments the Company measures at fair value on a recurring basis | ' | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
(dollar amounts in thousands) | Identical Assets | Inputs | Inputs | Assets At | |||||||||||||
31-Mar-14 | (Level 1) | (Level 2) | (Level 3) | Fair Value | |||||||||||||
Assets | |||||||||||||||||
Obligations of U.S. government agencies | $ | - | $ | 10,960 | $ | - | $ | 10,960 | |||||||||
Mortgage backed securities: | |||||||||||||||||
Agency | - | 235,765 | - | 235,765 | |||||||||||||
Non-agency | - | 6,907 | - | 6,907 | |||||||||||||
Obligations of state and municipal securities | - | 64,383 | - | 64,383 | |||||||||||||
Corporate debt securities | 3,259 | 3,259 | |||||||||||||||
Asset backed securities | - | 26,703 | - | 26,703 | |||||||||||||
Total assets measured on a recurring basis | $ | - | $ | 347,977 | $ | - | $ | 347,977 | |||||||||
31-Dec-13 | |||||||||||||||||
Assets | |||||||||||||||||
Obligations of U.S. government agencies | $ | - | $ | 6,208 | $ | - | $ | 6,208 | |||||||||
Mortgage backed securities: | |||||||||||||||||
Agency | - | 182,931 | - | 182,931 | |||||||||||||
Non-agency | - | 11,032 | - | 11,032 | |||||||||||||
Obligations of state and municipal securities | - | 50,030 | - | 50,030 | |||||||||||||
Asset backed securities | - | 26,594 | - | 26,594 | |||||||||||||
Total assets measured on a recurring basis | $ | - | $ | 276,795 | $ | - | $ | 276,795 | |||||||||
Summary of assets the Company measures at fair value on a non-recurring basis | ' | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | Year To | ||||||||||||||
(dollar amounts in thousands) | Identical Assets | Inputs | Inputs | Assets At | Date Losses/ | ||||||||||||
31-Mar-14 | (Level 1) | (Level 2) | (Level 3) | Fair Value | (Recoveries) | ||||||||||||
Assets | |||||||||||||||||
Impaired loans | |||||||||||||||||
Land | - | - | 4,170 | 4,170 | (100 | ) | |||||||||||
Premises and equipment held for sale | - | - | 1,730 | 1,730 | 1,186 | ||||||||||||
Total assets measured on a non-recurring basis | $ | - | $ | - | $ | 5,900 | $ | 5,900 | $ | 1,086 | |||||||
31-Dec-13 | |||||||||||||||||
Assets | |||||||||||||||||
Impaired loans | |||||||||||||||||
Land | - | - | 4,170 | 4,170 | (1,270 | ) | |||||||||||
Total assets measured on a non-recurring basis | $ | - | $ | - | $ | 4,170 | $ | 4,170 | $ | (1,270 | ) | ||||||
Summary of the estimated fair value of financial instruments | ' | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
(dollar amounts in thousands) | Carrying | Identical Assets | Inputs | Inputs | |||||||||||||
31-Mar-14 | Amount | (Level 1) | (Level 2) | (Level 3) | Fair Value | ||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 65,857 | $ | 65,857 | $ | - | $ | - | $ | 65,857 | |||||||
Investment securities available for sale | 347,977 | - | 347,977 | - | 347,977 | ||||||||||||
Federal Home Loan Bank stock | 6,912 | - | - | - | N/A | ||||||||||||
Loans receivable, net of deferred fees and costs | 1,112,644 | - | - | 1,112,792 | 1,112,792 | ||||||||||||
Loans held for sale | 6,345 | - | 6,345 | - | 6,345 | ||||||||||||
Accrued interest receivable | 4,924 | - | 1,522 | 3,402 | 4,924 | ||||||||||||
Liabilities | |||||||||||||||||
Non-interest bearing deposits | 443,922 | 443,922 | - | - | 443,922 | ||||||||||||
Interest bearing deposits | 921,907 | - | 926,628 | - | 926,628 | ||||||||||||
Federal Home Loan Bank advances | 85,571 | - | 84,927 | - | 84,927 | ||||||||||||
Junior subordinated debentures | 13,071 | - | - | 9,570 | 9,570 | ||||||||||||
Accrued interest payable | 361 | - | 361 | - | 361 | ||||||||||||
31-Dec-13 | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 26,238 | $ | 26,238 | $ | - | $ | - | $ | 26,238 | |||||||
Investment securities available for sale | 276,795 | - | 276,795 | - | 276,795 | ||||||||||||
Federal Home Loan Bank stock | 4,739 | - | - | - | N/A | ||||||||||||
Loans receivable, net of deferred fees and costs | 826,203 | - | - | 827,105 | 827,105 | ||||||||||||
Loans held for sale | 2,386 | - | 2,386 | - | 2,386 | ||||||||||||
Accrued interest receivable | 4,027 | - | 1,397 | 2,630 | 4,027 | ||||||||||||
Liabilities | |||||||||||||||||
Non interest-bearing deposits | 291,856 | 291,856 | - | - | 291,856 | ||||||||||||
Interest-bearing deposits | 682,039 | - | 684,345 | - | 684,345 | ||||||||||||
Federal Home Loan Bank advances | 88,500 | - | 86,990 | - | 86,990 | ||||||||||||
Junior subordinated debentures | 8,248 | - | - | 7,595 | 7,595 | ||||||||||||
Accrued interest payable | 239 | - | 239 | - | 239 | ||||||||||||
Summary of off-balance sheet commitments | ' | ||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Notional | Cost to Cede | Notional | Cost to Cede | ||||||||||||||
(dollar amounts in thousands) | Amount | or Assume | Amount | or Assume | |||||||||||||
Off-balance sheet instruments, commitments to extend credit and standby letters of credit | $ | 255,701 | $ | 2,557 | $ | 198,481 | $ | 1,985 | |||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||
Schedule of amortized cost and fair values of the Company's investment securities, all of which are reported as available for sale | ' | |||||||||||||||||||
(dollar amounts in thousands) | Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | ||||||||||||||||||
31-Mar-14 | Cost | Gains | Losses | Fair Value | ||||||||||||||||
Obligations of U.S. government agencies | $ | 10,998 | $ | 32 | $ | (70 | ) | $ | 10,960 | |||||||||||
Mortgage backed securities | ||||||||||||||||||||
U.S. government sponsored entities and agencies | 238,563 | 714 | (3,512 | ) | 235,765 | |||||||||||||||
Non-agency | 6,745 | 190 | (28 | ) | 6,907 | |||||||||||||||
State and municipal securities | 64,519 | 914 | (1,050 | ) | 64,383 | |||||||||||||||
Corporate debt securities | 3,256 | 6 | (3 | ) | 3,259 | |||||||||||||||
Asset backed securities | 26,913 | 2 | (212 | ) | 26,703 | |||||||||||||||
Total | $ | 350,994 | $ | 1,858 | $ | (4,875 | ) | $ | 347,977 | |||||||||||
31-Dec-13 | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 6,243 | $ | 11 | $ | (46 | ) | $ | 6,208 | |||||||||||
Mortgage backed securities | ||||||||||||||||||||
U.S. government sponsored entities and agencies | 186,981 | 342 | (4,392 | ) | 182,931 | |||||||||||||||
Non-agency | 10,924 | 156 | (48 | ) | 11,032 | |||||||||||||||
State and municipal securities | 51,532 | 269 | (1,771 | ) | 50,030 | |||||||||||||||
Asset backed securities | 26,935 | - | (341 | ) | 26,594 | |||||||||||||||
Total | $ | 282,615 | $ | 778 | $ | (6,598 | ) | $ | 276,795 | |||||||||||
Schedule of roll forward of the OTTI balances against the investment securities for both credit loss and all other factor components | ' | |||||||||||||||||||
For the Three Months Ended March 31, 2014 | For the Three Months Ended March 31, 2013 | |||||||||||||||||||
OTTI Related | OTTI Related | |||||||||||||||||||
OTTI Related | to All Other | Total | OTTI Related | to All Other | Total | |||||||||||||||
(dollars in thousands) | to Credit Loss | Factors | OTTI | to Credit Loss | Factors | OTTI | ||||||||||||||
Balance, beginning of the period | $ | - | $ | - | $ | - | $ | 109 | $ | 170 | $ | - | ||||||||
Less: losses related to OTTI securities sold | - | (109 | ) | (170 | ) | 279 | ||||||||||||||
Change in value attributable to other factors | - | - | - | - | - | (279 | ) | |||||||||||||
Balance, end of the period | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||
Summary of investment securities in an unrealized loss position | ' | |||||||||||||||||||
Securities In A Loss Position For | Total | |||||||||||||||||||
(dollar amounts in thousands) | Less Than Twelve Months | Twelve Months or More | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
March 31, 2014 | Value | Loss | Value | Loss | Value | Loss | ||||||||||||||
Obligations of U.S. government agencies | $ | 8,697 | $ | (69 | ) | $ | 39 | $ | (1 | ) | $ | 8,736 | $ | (70 | ) | |||||
Mortgage backed securities | ||||||||||||||||||||
U.S. government sponsored entities and agencies | 129,207 | (2,060 | ) | 36,187 | (1,452 | ) | 165,394 | (3,512 | ) | |||||||||||
Non-agency | 484 | (28 | ) | - | - | 484 | (28 | ) | ||||||||||||
State and municipal securities | 24,775 | (758 | ) | 6,398 | (292 | ) | 31,173 | (1,050 | ) | |||||||||||
Corporate debt securities | 2,249 | (3 | ) | - | - | 2,249 | (3 | ) | ||||||||||||
Asset backed securities | - | - | 17,623 | (212 | ) | 17,623 | (212 | ) | ||||||||||||
Total | $ | 165,412 | $ | (2,918 | ) | $ | 60,247 | $ | (1,957 | ) | $ | 225,659 | $ | (4,875 | ) | |||||
31-Dec-13 | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 2,773 | $ | (45 | ) | $ | 40 | $ | (1 | ) | $ | 2,813 | $ | (46 | ) | |||||
Mortgage backed securities | ||||||||||||||||||||
U.S. government sponsored entities and agencies | 118,554 | (3,140 | ) | 18,863 | (1,252 | ) | 137,417 | (4,392 | ) | |||||||||||
Non-agency | 3,210 | (48 | ) | - | - | 3,210 | (48 | ) | ||||||||||||
State and municipal securities | 32,967 | (1,675 | ) | 2,458 | (96 | ) | 35,425 | (1,771 | ) | |||||||||||
Asset backed securities | 7,978 | (246 | ) | 9,747 | (95 | ) | 17,725 | (341 | ) | |||||||||||
Total | $ | 165,482 | $ | (5,154 | ) | $ | 31,108 | $ | (1,444 | ) | $ | 196,590 | $ | (6,598 | ) | |||||
Schedule of proceeds from the sales and calls of securities and the associated gains and losses | ' | |||||||||||||||||||
For the Three Months | ||||||||||||||||||||
Ended March 31 | ||||||||||||||||||||
(dollar amounts in thousands) | 2014 | 2013 | ||||||||||||||||||
Proceeds | $ | 15,562 | $ | 89,245 | ||||||||||||||||
Gross gains | 78 | 4,204 | ||||||||||||||||||
Gross losses | (80 | ) | (618 | ) | ||||||||||||||||
Schedule of amortized cost and fair values maturities of available for sale investment securities | ' | |||||||||||||||||||
(dollar amounts in thousands) | ||||||||||||||||||||
March 31, 2014 | One Year Or | Over 1 Through | Over 5 Years | Over 10 Years | Total | |||||||||||||||
Less | 5 Years | Through 10 | ||||||||||||||||||
Years | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 313 | $ | 408 | $ | 7,931 | $ | 2,308 | $ | 10,960 | ||||||||||
Mortgage backed securities | ||||||||||||||||||||
U.S. government sponsored entities and agencies | 33,738 | 92,135 | 49,212 | 60,680 | 235,765 | |||||||||||||||
Non-agency | 375 | 4,976 | 1,556 | - | 6,907 | |||||||||||||||
State and municipal securities | 3,005 | 18,888 | 40,342 | 2,148 | 64,383 | |||||||||||||||
Corporate debt securities | - | 2,014 | 1,245 | - | 3,259 | |||||||||||||||
Asset backed securities | - | - | 14,809 | 11,894 | 26,703 | |||||||||||||||
Total available for sale securities | $ | 37,431 | $ | 118,421 | $ | 115,095 | $ | 77,030 | $ | 347,977 | ||||||||||
Amortized cost | $ | 37,605 | $ | 119,112 | $ | 115,777 | $ | 78,500 | $ | 350,994 | ||||||||||
Weighted average yield | 1.83% | 2.14% | 2.41% | 2.64% | 2.31% | |||||||||||||||
Summary of earnings on both taxable and tax-exempt investment securities | ' | |||||||||||||||||||
For The Three Months | ||||||||||||||||||||
Ended March 31, | ||||||||||||||||||||
(dollar amounts in thousands) | 2014 | 2013 | ||||||||||||||||||
Taxable earnings on investment securities | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 48 | $ | 31 | ||||||||||||||||
Mortgage backed securities | 1,025 | 830 | ||||||||||||||||||
State and municipal securities | - | 5 | ||||||||||||||||||
Corporate debt securities | 3 | - | ||||||||||||||||||
Asset backed securities | 75 | 112 | ||||||||||||||||||
Non-taxable earnings on investment securities | ||||||||||||||||||||
State and municipal securities | 439 | 455 | ||||||||||||||||||
Total | $ | 1,590 | $ | 1,433 | ||||||||||||||||
Loans_Tables
Loans (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Loans | ' | ||||||||||||||||||||||||||||||||
Summary of outstanding loan balances | ' | ||||||||||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Multi-family residential | $ | 47,610 | $ | 31,140 | |||||||||||||||||||||||||||||
Residential 1 to 4 family | 111,776 | 88,904 | |||||||||||||||||||||||||||||||
Home equity lines of credit | 41,301 | 31,178 | |||||||||||||||||||||||||||||||
Commercial | 580,990 | 432,203 | |||||||||||||||||||||||||||||||
Farmland | 66,149 | 50,414 | |||||||||||||||||||||||||||||||
Total real estate secured | 847,826 | 633,839 | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 146,710 | 119,121 | |||||||||||||||||||||||||||||||
Agriculture | 57,632 | 32,686 | |||||||||||||||||||||||||||||||
Other | 753 | 38 | |||||||||||||||||||||||||||||||
Total commercial | 205,095 | 151,845 | |||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||
Single family residential | 6,035 | 3,873 | |||||||||||||||||||||||||||||||
Single family residential - Spec. | 620 | 1,153 | |||||||||||||||||||||||||||||||
Multi-family | 3,946 | 736 | |||||||||||||||||||||||||||||||
Hospitality | 3,088 | - | |||||||||||||||||||||||||||||||
Commercial | 9,042 | 7,937 | |||||||||||||||||||||||||||||||
Total construction | 22,731 | 13,699 | |||||||||||||||||||||||||||||||
Land | 27,908 | 24,523 | |||||||||||||||||||||||||||||||
Installment loans to individuals | 10,323 | 3,246 | |||||||||||||||||||||||||||||||
Overdrafts | 187 | 332 | |||||||||||||||||||||||||||||||
Total gross loans | 1,114,070 | 827,484 | |||||||||||||||||||||||||||||||
Net deferred loan fees | (1,426 | ) | (1,281 | ) | |||||||||||||||||||||||||||||
Allowance for loan losses | (17,968 | ) | (17,859 | ) | |||||||||||||||||||||||||||||
Total net loans | $ | 1,094,676 | $ | 808,344 | |||||||||||||||||||||||||||||
Loans held for sale | $ | 6,345 | $ | 2,386 | |||||||||||||||||||||||||||||
Summary of the Company's investment in impaired loans, including loans acquired with deteriorated credit quality | ' | ||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Unpaid | Impaired Loans | Specific | ||||||||||||||||||||||||||||||
Recorded | Principal | With Specific | Without Specific | Allowance for | |||||||||||||||||||||||||||||
31-Mar-14 | Investment (1)(2) | Balance | Allowance | Allowance | Impaired Loans | ||||||||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Residential 1 to 4 family | $ | 1,218 | $ | 1,626 | $ | - | $ | 1,218 | $ | - | |||||||||||||||||||||||
Home equity lines of credit | 80 | 182 | - | 80 | - | ||||||||||||||||||||||||||||
Commercial | 6,234 | 8,934 | - | 6,234 | - | ||||||||||||||||||||||||||||
Farmland | 1,719 | 2,094 | - | 1,719 | - | ||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 7,716 | 9,503 | 3,154 | 4,562 | 747 | ||||||||||||||||||||||||||||
Agriculture | 2,298 | 2,345 | - | 2,298 | - | ||||||||||||||||||||||||||||
Land | 8,941 | 13,533 | 6,607 | 2,334 | 2,432 | ||||||||||||||||||||||||||||
Installment loans to individuals | 94 | 183 | - | 94 | - | ||||||||||||||||||||||||||||
Totals | $ | 28,300 | $ | 38,400 | $ | 9,761 | $ | 18,539 | $ | 3,179 | |||||||||||||||||||||||
(1) The recorded investment in loans includes the book value of impaired loans as adjusted for the net deferred costs and fees related to the impaired loans. | |||||||||||||||||||||||||||||||||
(2) Includes $12,744 of purchased credit impaired loans | |||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Unpaid | Impaired Loans | Specific | ||||||||||||||||||||||||||||||
Recorded | Principal | With Specific | Without Specific | Allowance for | |||||||||||||||||||||||||||||
31-Dec-13 | Investment (1) | Balance | Allowance | Allowance | Impaired Loans | ||||||||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Residential 1 to 4 family | $ | 944 | $ | 1,102 | $ | - | 944 | $ | - | ||||||||||||||||||||||||
Commercial | 901 | 1,646 | - | 901 | - | ||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 5,337 | 5,843 | 3,480 | 1,857 | 623 | ||||||||||||||||||||||||||||
Agriculture | 789 | 824 | - | 789 | - | ||||||||||||||||||||||||||||
Land | 7,927 | 12,106 | 6,706 | 1,221 | 2,532 | ||||||||||||||||||||||||||||
Installment loans to individuals | 118 | 190 | - | 118 | - | ||||||||||||||||||||||||||||
Totals | $ | 16,016 | $ | 21,711 | $ | 10,186 | $ | 5,830 | $ | 3,155 | |||||||||||||||||||||||
(1) The recorded investment in loans includes the book value of impaired loans as adjusted for the net deferred costs and fees related to the impaired loans. | |||||||||||||||||||||||||||||||||
Schedule of average recorded investment in impaired loans and the interest income recognized on impaired loans | ' | ||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Investment | Recognized | Investment | Recognized | |||||||||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Residential 1 to 4 family | $ | 1,046 | $ | 8 | $ | 718 | $ | - | |||||||||||||||||||||||||
Home equity lines of credit | 40 | - | 58 | - | |||||||||||||||||||||||||||||
Commercial | 1,065 | 75 | 818 | - | |||||||||||||||||||||||||||||
Farmland | 853 | 1 | 539 | - | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 5,731 | 93 | 4,103 | - | |||||||||||||||||||||||||||||
Agriculture | 1,543 | 6 | 869 | - | |||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||
Commercial | 211 | - | 690 | - | |||||||||||||||||||||||||||||
Land | 7,855 | 37 | 7,449 | - | |||||||||||||||||||||||||||||
Installment loans to individuals | 106 | 1 | 193 | - | |||||||||||||||||||||||||||||
Totals | $ | 18,450 | $ | 221 | $ | 15,437 | $ | - | |||||||||||||||||||||||||
Schedule of loan modifications by class which resulted in TDRs | ' | ||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||||||
(dollar amounts in thousands) | TDRs | Investment | Investment | ||||||||||||||||||||||||||||||
Trouble Debt Restructurings | |||||||||||||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 166 | $ | 166 | ||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 4 | 920 | 920 | ||||||||||||||||||||||||||||||
Agriculture | 1 | 662 | 662 | ||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||
Land | 1 | 160 | 160 | ||||||||||||||||||||||||||||||
Installment loans to individuals | 1 | 73 | 73 | ||||||||||||||||||||||||||||||
Totals | 8 | $ | 1,981 | $ | 1,981 | ||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||||||
(dollar amounts in thousands) | TDRs | Investment | Investment | ||||||||||||||||||||||||||||||
Trouble Debt Restructurings | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 4 | $ | 151 | $ | 151 | ||||||||||||||||||||||||||||
Totals | 4 | $ | 151 | $ | 151 | ||||||||||||||||||||||||||||
Schedule of loan portfolio by the Company's internal risk grading system as well as certain other information concerning the credit quality of the loan portfolio | ' | ||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Credit Risk Grades | Days Past Due | |||||||||||||||||||||||||||||||
Total Gross | Special | 90+ and Still | Non- | Accruing | |||||||||||||||||||||||||||||
March 31, 2014 | Loans | Pass | Mention | Substandard | Doubtful | 30-59 | 60-89 | Accruing | Accruing | TDR | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Multi-family residential | $ | 47,610 | $ | 47,035 | $ | - | $ | 575 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Residential 1 to 4 family | 111,776 | 109,775 | 665 | 1,336 | - | - | - | - | 105 | 494 | |||||||||||||||||||||||
Home equity lines of credit | 41,301 | 40,969 | - | 332 | - | - | - | - | - | - | |||||||||||||||||||||||
Commercial | 580,990 | 536,047 | 22,792 | 22,151 | - | - | - | - | 485 | 388 | |||||||||||||||||||||||
Farmland | 66,149 | 62,965 | 969 | 2,215 | - | - | - | - | - | - | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 146,710 | 130,808 | 5,876 | 10,026 | - | 744 | 15 | - | 2,786 | 3,016 | |||||||||||||||||||||||
Agriculture | 57,632 | 54,972 | 663 | 1,997 | - | - | - | - | 727 | 299 | |||||||||||||||||||||||
Other | 753 | 753 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||
Single family residential | 6,035 | 6,035 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Single family residential - Spec. | 620 | 620 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Multi-family | 3,946 | 3,946 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Hospitality | 3,088 | 3,088 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Commercial | 9,042 | 9,042 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Land | 27,908 | 16,608 | 2,273 | 9,027 | - | 71 | 41 | - | 5,813 | 1,976 | |||||||||||||||||||||||
Installment loans to individuals | 10,323 | 10,163 | - | 160 | - | - | - | - | 21 | 73 | |||||||||||||||||||||||
Overdrafts | 187 | 187 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Totals | $ | 1,114,070 | $ | 1,033,013 | $ | 33,238 | $ | 47,819 | $ | - | $ | 815 | $ | 56 | $ | - | $ | 9,937 | $ | 6,246 | |||||||||||||
(dollar amounts in thousands) | Credit Risk Grades | Days Past Due | |||||||||||||||||||||||||||||||
Total Gross | Special | 90+ and Still | Non- | Accruing | |||||||||||||||||||||||||||||
December 31, 2013 | Loans | Pass | Mention | Substandard | Doubtful | 30-59 | 60-89 | Accruing | Accruing | TDR | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Multi-family residential | $ | 31,140 | $ | 30,560 | $ | - | $ | 580 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Residential 1 to 4 family | 88,904 | 87,350 | 490 | 1,064 | - | - | - | - | 449 | 499 | |||||||||||||||||||||||
Home equity lines of credit | 31,178 | 31,021 | - | 157 | - | - | - | - | - | - | |||||||||||||||||||||||
Commercial | 432,203 | 414,058 | 3,574 | 14,571 | - | - | - | - | 672 | 225 | |||||||||||||||||||||||
Farmland | 50,414 | 47,988 | 975 | 1,451 | - | - | - | - | - | - | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 119,121 | 105,991 | 5,276 | 7,854 | - | 100 | - | - | 2,180 | 3,119 | |||||||||||||||||||||||
Agriculture | 32,686 | 31,279 | 196 | 1,211 | - | - | - | - | 789 | - | |||||||||||||||||||||||
Other | 38 | 38 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||
Single family residential | 3,873 | 3,873 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Single family residential - Spec. | 1,153 | 1,153 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Multi-family | 736 | 736 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Commercial | 7,937 | 7,937 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Land | 24,523 | 15,244 | 862 | 8,417 | - | - | - | - | 5,910 | 2,010 | |||||||||||||||||||||||
Installment loans to individuals | 3,246 | 3,050 | 10 | 186 | - | - | 2 | - | 117 | - | |||||||||||||||||||||||
Overdrafts | 332 | 332 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Totals | $ | 827,484 | $ | 780,610 | $ | 11,383 | $ | 35,491 | $ | - | $ | 100 | $ | 2 | $ | - | $ | 10,117 | $ | 5,853 | |||||||||||||
Schedule of carrying amount and unpaid principal balance of purchased credit impaired loans | ' | ||||||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Unpaid | Carrying | |||||||||||||||||||||||||||||||
Principal Balance | Amount | ||||||||||||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Residential 1 to 4 family | $ | 893 | $ | 626 | |||||||||||||||||||||||||||||
Home equity lines of credit | 98 | 81 | |||||||||||||||||||||||||||||||
Commercial | 7,506 | 5,498 | |||||||||||||||||||||||||||||||
Farmland | 2,094 | 1,728 | |||||||||||||||||||||||||||||||
Total real estate secured | 10,591 | 7,933 | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 3,325 | 2,548 | |||||||||||||||||||||||||||||||
Agriculture | 1,280 | 1,277 | |||||||||||||||||||||||||||||||
Total commercial | 4,605 | 3,825 | |||||||||||||||||||||||||||||||
Land | 1,148 | 986 | |||||||||||||||||||||||||||||||
Total net loans | $ | 16,344 | $ | 12,744 | |||||||||||||||||||||||||||||
Schedule of accretable yield, or income expected to be collected | ' | ||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||||||
Balance at January 1, 2014 | $ | - | |||||||||||||||||||||||||||||||
New loans purchased | 4,801 | ||||||||||||||||||||||||||||||||
Accretion of income | (117 | ) | |||||||||||||||||||||||||||||||
Reclassifications from nonaccretable difference | 25 | ||||||||||||||||||||||||||||||||
Disposals | - | ||||||||||||||||||||||||||||||||
Balance at March 31, 2014 | $ | 4,709 | |||||||||||||||||||||||||||||||
Schedule of purchased credit impaired loans purchased for probable at acquisition that all contractually required payments would not be collected | ' | ||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||||||
Contractually required payments receivable of loans purchased during the period: | |||||||||||||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||||||||||||
Residential 1 to 4 family | $ | 1,159 | |||||||||||||||||||||||||||||||
Home equity lines of credit | 113 | ||||||||||||||||||||||||||||||||
Commercial | 9,199 | ||||||||||||||||||||||||||||||||
Farmland | 2,858 | ||||||||||||||||||||||||||||||||
Total real estate secured | 13,329 | ||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial and industrial | 3,514 | ||||||||||||||||||||||||||||||||
Agriculture | 1,593 | ||||||||||||||||||||||||||||||||
Total commercial | 5,107 | ||||||||||||||||||||||||||||||||
Land | 1,285 | ||||||||||||||||||||||||||||||||
Total payments receivable | $ | 19,721 | |||||||||||||||||||||||||||||||
Cash flows expected to be collected at acquisition | $ | 17,737 | |||||||||||||||||||||||||||||||
Fair value of purchase impaired loans at acquisition | $ | 12,936 | |||||||||||||||||||||||||||||||
Allowance_for_Loan_and_Lease_L1
Allowance for Loan and Lease Losses (ALLL) (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||
Allowance for Loan and Lease Losses (ALLL) | ' | |||||||||||||||||||||||||
Summary of activity in the ALLL attributed to various segments in the loan portfolio | ' | |||||||||||||||||||||||||
Real Estate | All Other | |||||||||||||||||||||||||
(dollar amounts in thousands) | Secured | Commercial | Construction | Land | Installment | Loans | Unallocated | Total | ||||||||||||||||||
Balance, December 31, 2013 | $ | 9,157 | $ | 4,857 | $ | 262 | $ | 3,451 | $ | 100 | $ | 32 | $ | - | $ | 17,859 | ||||||||||
Charge-offs | (92 | ) | - | - | - | (2 | ) | - | - | (94 | ) | |||||||||||||||
Recoveries | 16 | 175 | - | 7 | 5 | - | - | 203 | ||||||||||||||||||
Provisions for loan losses | 169 | (134 | ) | (115 | ) | (303 | ) | (16 | ) | (6 | ) | 405 | - | |||||||||||||
Balance, March 31, 2014 | $ | 9,250 | $ | 4,898 | $ | 147 | $ | 3,155 | $ | 87 | $ | 26 | $ | 405 | $ | 17,968 | ||||||||||
Balance, December 31, 2012 | $ | 6,879 | $ | 6,154 | $ | 313 | $ | 4,670 | $ | 64 | $ | 38 | $ | - | $ | 18,118 | ||||||||||
Charge-offs | - | (339 | ) | (169 | ) | (34 | ) | (118 | ) | - | - | (660 | ) | |||||||||||||
Recoveries | 116 | 136 | - | 3 | 30 | - | - | 285 | ||||||||||||||||||
Provisions for loan losses | (881 | ) | 769 | - | (72 | ) | 125 | (5 | ) | 64 | - | |||||||||||||||
Balance, March 31, 2013 | $ | 6,114 | $ | 6,720 | $ | 144 | $ | 4,567 | $ | 101 | $ | 33 | $ | 64 | $ | 17,743 | ||||||||||
Summary of comparative metrics about the ALLL attributed to various segments in the loan portfolio | ' | |||||||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||||||||
Real Estate | All Other | |||||||||||||||||||||||||
(dollar amounts in thousands) | Secured | Commercial | Construction | Land | Installment | Loans | Unallocated | Total | ||||||||||||||||||
Amount of allowance attributed to: | ||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | - | $ | 747 | $ | - | $ | 2,432 | $ | - | $ | - | $ | 3,179 | ||||||||||||
Loans acquired with deteriorated credit quality | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
General portfolio allocation | $ | 9,250 | $ | 4,151 | $ | 147 | $ | 723 | $ | 87 | $ | 26 | $ | 405 | $ | 14,789 | ||||||||||
Loans individually evaluated for impairment | $ | 1,318 | $ | 6,189 | $ | - | $ | 7,955 | $ | - | $ | 94 | $ | 15,556 | ||||||||||||
Loans acquired with deteriorated credit quality | $ | 7,933 | $ | 3,825 | $ | - | $ | 986 | $ | - | $ | - | $ | 12,744 | ||||||||||||
Loans collectively evaluated for impairment | $ | 838,575 | $ | 195,081 | $ | 22,731 | $ | 18,967 | $ | 10,323 | $ | 93 | $ | 1,085,770 | ||||||||||||
General reserves to total loans collectively evaluated for impairment | 1.10% | 2.13% | 0.65% | 3.81% | 0.84% | 27.96% | 1.36% | |||||||||||||||||||
Total gross loans | $ | 847,826 | $ | 205,095 | $ | 22,731 | $ | 27,908 | $ | 10,323 | $ | 187 | $ | 1,114,070 | ||||||||||||
Total allowance to gross loans | 1.09% | 2.39% | 0.65% | 11.30% | 0.84% | 13.90% | 1.61% | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Real Estate | All Other | |||||||||||||||||||||||||
(dollar amounts in thousands) | Secured | Commercial | Construction | Land | Installment | Loans | Unallocated | Total | ||||||||||||||||||
Amount of allowance attributed to: | ||||||||||||||||||||||||||
Specifically evaluated impaired loans | $ | - | $ | 623 | $ | - | $ | 2,532 | $ | - | $ | - | $ | 3,155 | ||||||||||||
General portfolio allocation | $ | 9,025 | $ | 4,158 | $ | 258 | $ | 870 | $ | 99 | $ | 32 | $ | 262 | $ | 14,704 | ||||||||||
Loans individually evaluated for impairment | $ | 1,462 | $ | 5,291 | $ | - | $ | 7,696 | $ | - | $ | - | $ | 14,449 | ||||||||||||
Loans collectively evaluated for impairment | $ | 632,377 | $ | 146,554 | $ | 13,699 | $ | 16,827 | $ | 3,246 | $ | 332 | $ | 813,035 | ||||||||||||
General reserves to total loans collectively evaluated for impairment | 1.43% | 2.84% | 1.88% | 5.17% | 3.05% | 9.64% | 1.81% | |||||||||||||||||||
Total gross loans | $ | 633,839 | $ | 151,845 | $ | 13,699 | $ | 24,523 | $ | 3,246 | $ | 332 | $ | 827,484 | ||||||||||||
Total allowance to gross loans | 1.44% | 3.20% | 1.91% | 14.07% | 3.08% | 9.64% | 2.16% | |||||||||||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||
Summary of the gross carrying amount, accumulated amortization and net carrying amount of CDI | ' | |||||||||||||
(dollar amounts in thousands) | Gross Carrying | Accumulated | Net Carrying | |||||||||||
31-Mar-14 | Amount | Amortization | Amount | |||||||||||
Core deposit intangible | $ | 9,261 | $ | (3,023 | ) | $ | 6,238 | |||||||
Summary of an estimate for future amortization expense | ' | |||||||||||||
Beginning | Acquired | Estimated | Projected Ending | |||||||||||
Period | Balance | CDI’s | Amortization | Balance | ||||||||||
Year 2014 | $ | 1,344 | $ | 5,060 | $ | (1,056 | ) | $ | 5,348 | |||||
Year 2015 | 5,348 | (1,049 | ) | 4,299 | ||||||||||
Year 2016 | 4,299 | (944 | ) | 3,355 | ||||||||||
Year 2017 | 3,355 | (588 | ) | 2,767 | ||||||||||
Year 2018 | 2,767 | (549 | ) | 2,218 | ||||||||||
Year 2019 | 2,218 | (522 | ) | 1,696 | ||||||||||
Other_Real_Estate_Owned_OREO_T
Other Real Estate Owned ("OREO") (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Other Real Estate Owned ("OREO") | ' | ||||||||||||||||
Summary of the changes in the balance of other real estate owned | ' | ||||||||||||||||
Balance | Balance | ||||||||||||||||
December 31, | March 31, | ||||||||||||||||
(dollar amounts in thousands) | 2013 | Additions | Disposals | Writedowns | 2014 | ||||||||||||
Real Estate Secured | |||||||||||||||||
Residential 1 to 4 family | $ | - | $ | 248 | $ | - | $ | - | $ | 248 | |||||||
Construction | |||||||||||||||||
Tract | - | 65 | - | - | 65 | ||||||||||||
Totals | $ | - | $ | 313 | $ | - | $ | - | $ | 313 | |||||||
Balance | Balance | ||||||||||||||||
December 31, | March 31, | ||||||||||||||||
(dollar amounts in thousands) | 2012 | Additions | Disposals | Writedowns | 2013 | ||||||||||||
Construction | |||||||||||||||||
Commercial | $ | - | $ | 1,211 | $ | (1,211 | ) | $ | - | $ | - | ||||||
Totals | $ | - | $ | 1,211 | $ | (1,211 | ) | $ | - | $ | - | ||||||
Deposits_Tables
Deposits (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Deposits. | ' | |||||||
Schedule of interest bearing and non-interest bearing deposits | ' | |||||||
March 31, | December 31, | |||||||
(dollar amounts in thousands) | 2014 | 2013 | ||||||
Non-interest bearing deposits | $ | 443,922 | $ | 291,856 | ||||
Interest bearing deposits: | ||||||||
NOW accounts | 108,604 | 87,298 | ||||||
Money market deposit accounts | 422,728 | 332,272 | ||||||
Other savings deposits | 94,627 | 42,648 | ||||||
Time certificates of $100 or more | 203,323 | 148,525 | ||||||
Other time deposits | 92,625 | 71,296 | ||||||
Total deposits | $ | 1,365,829 | $ | 973,895 | ||||
Capital_Tables
Capital (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Capital | ' | ||||||||||||
Schedule of the Company's and the Bank's actual regulatory capital ratios and the regulatory standards | ' | ||||||||||||
Regulatory | 31-Mar-14 | 31-Dec-13 | |||||||||||
Standard | |||||||||||||
Well | Heritage Oaks | Heritage Oaks | |||||||||||
Ratio | Capitalized | Bancorp | Bank | Bancorp | Bank | ||||||||
Leverage ratio | 5.00% | 11.64% | 11.25% | 10.20% | 9.82% | ||||||||
Tier I capital to risk weighted assets | 6.00% | 12.25% | 11.84% | 12.91% | 12.42% | ||||||||
Total risk based capital to risk weighted assets | 10.00% | 13.50% | 13.10% | 14.17% | 13.68% | ||||||||
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Share-Based Compensation Plans | ' | |||||||||||
Summary of recognized and unrecognized share based compensation expense | ' | |||||||||||
For the Three Months Ended | ||||||||||||
March 31, | ||||||||||||
(dollar amounts in thousands) | 2014 | 2013 | ||||||||||
Share-based compensation expense: | ||||||||||||
Stock option expense | $ | 164 | $ | 61 | ||||||||
Restricted stock expense | 84 | 73 | ||||||||||
Total expense | $ | 247 | $ | 134 | ||||||||
Unrecognized compensation expense: | ||||||||||||
Stock option expense | $ | 1,013 | $ | 583 | ||||||||
Restricted stock expense | 865 | 640 | ||||||||||
Total unrecognized expense | $ | 1,878 | $ | 1,223 | ||||||||
Summary of activity related to options granted, exercised, and forfeited | ' | |||||||||||
Options Outstanding | Options | |||||||||||
Number | Weighted Average | Available for | ||||||||||
of Shares | Exercise Price | Grant | ||||||||||
Balance, December 31, 2013 | 562,257 | $ | 6.34 | 1,593,616 | ||||||||
Granted | 164,576 | 7.69 | ||||||||||
Forfeited | (52,885 | ) | 8.54 | |||||||||
Expired | (2,604 | ) | 10.12 | |||||||||
Exercised | (31,776 | ) | 3.48 | |||||||||
Balance, March 31, 2014 | 639,568 | $ | 6.62 | 2,225,869 | ||||||||
Summary of activity related to restricted stock granted, vested and forfeited | ' | |||||||||||
Number of | Average Grant | |||||||||||
Shares | Date Fair Value | |||||||||||
Balance December 31, 2013 | 195,048 | $ | 4.87 | |||||||||
Granted | 58,394 | 7.66 | ||||||||||
Vested | - | - | ||||||||||
Forfeited | (25,862 | ) | 5.8 | |||||||||
Balance March 31, 2014 | 227,580 | $ | 5.48 | |||||||||
Summary of the aggregate intrinsic value of options vested and expected to vest and exercisable | ' | |||||||||||
Weighted Average | ||||||||||||
Weighted | Remaining | Aggregate | ||||||||||
Average | Contractual Life | Intrinsic | ||||||||||
Shares | Exercise Price | (Years) | Value | |||||||||
Vested or expected to vest | 608,252 | $ | 6.61 | 7.8 | $ | 1,266,832 | ||||||
Exercisable at March 31, 2014 | 271,888 | $ | 6.59 | 6.07 | $ | 775,559 | ||||||
Schedule of assumptions used in the calculation of weighted average fair value of options granted | ' | |||||||||||
For the Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Expected volatility | 54.00% | 55.30% | ||||||||||
Expected term (years) | 6 | 6 | ||||||||||
Dividend yield | 0.00% | 0.00% | ||||||||||
Risk free rate | 1.76% | 1.14% | ||||||||||
Weighted-average grant date fair value | $ | 3.99 | $ | 3.01 | ||||||||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Earnings (Loss) Per Share | ' | |||||||||||
Schedule of calculation of both basic and diluted earnings (loss) per common share | ' | |||||||||||
For the Three Months Ended March 31, | ||||||||||||
2014 | 2013 | |||||||||||
Net | Net | |||||||||||
(dollar amounts in thousands except per share data) | Income | Shares | Income | Shares | ||||||||
Net (loss) income | $ | -1,763 | $ | 3,730 | ||||||||
Dividends and accretion on preferred stock | - | -358 | ||||||||||
Net (loss) income available to common shareholders | $ | -1,763 | $ | 3,372 | ||||||||
Weighted average shares outstanding | 27,816,911 | 26,301,542 | ||||||||||
Basic (loss) earnings per common share | $ | -0.06 | $ | 0.13 | ||||||||
Dilutive effect of share-based compensation awards and common stock warrants | - | 225,915 | ||||||||||
Weighted average diluted shares outstanding | 27,816,911 | 26,527,457 | ||||||||||
Diluted (loss) earnings per common share | $ | -0.06 | $ | 0.13 | ||||||||
Restructuring_Activities_Table
Restructuring Activities (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Restructuring Activities | ' | ||||||||||
Schedule of expected costs of restructuring and integration plan | ' | ||||||||||
Total Costs | Amount | Cumulative | |||||||||
Expected To | Incurred | Incurred | |||||||||
(dollar amounts in thousands) | Be Incurred | 1st Qtr 2014 | To 03/31/2014 | ||||||||
System integration | $ | 1,020 | $ | 223 | $ | 223 | |||||
Fixed asset consolidation | 3,072 | 2,351 | 2,393 | ||||||||
Contract cancellation costs | 1,944 | 1,656 | 1,656 | ||||||||
Employee termination and retention | 3,755 | 2,641 | 2,641 | ||||||||
Total Restructuring Costs | $ | 9,791 | $ | 6,871 | $ | 6,913 | |||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Feb. 28, 2014 | Mar. 31, 2014 |
segment | MISN | All Non-United States countries | ||
Nature of Operations | ' | ' | ' | ' |
Number of business segments | 1 | ' | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' | ' | ' |
Percentage acquired of outstanding common shares | ' | ' | 100.00% | ' |
Total assets | $1,662,200 | $1,203,651 | ' | $0 |
Revenue | ' | ' | ' | $0 |
Business_Combination_Details
Business Combination (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Feb. 28, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Mar. 31, 2014 | |
MISN | MISN | MISN | MISN | ||||
Core Deposits | Non-interest expenses | ||||||
Business combination | ' | ' | ' | ' | ' | ' | ' |
Percentage acquired of outstanding common shares | ' | ' | ' | 100.00% | ' | ' | ' |
Common stock issued (in shares) | ' | ' | ' | 7,541,326 | ' | ' | ' |
Aggregate cash consideration | ' | ' | ' | $8,706,000 | ' | ' | ' |
Transaction value | ' | ' | ' | 69,000,000 | ' | ' | ' |
Closing price (in dollars per share) | ' | ' | ' | $7.99 | ' | ' | ' |
Interest income | 13,602,000 | 11,073,000 | ' | ' | 1,700,000 | ' | ' |
Non-interest income | 1,750,000 | 5,661,000 | ' | ' | 100,000 | ' | ' |
Net Income | -1,763,000 | 3,730,000 | ' | ' | 500,000 | ' | ' |
Stock issuance costs charged against additional paid in capital | 290,000 | ' | ' | ' | 300,000 | ' | ' |
Acquisition-related costs | ' | ' | ' | ' | 500,000 | ' | 200,000 |
Assets acquired | ' | ' | ' | ' | ' | ' | ' |
Cash and due from banks | ' | ' | ' | 3,212,000 | ' | ' | ' |
Interest-bearing deposits in other banks | ' | ' | ' | 34,386,000 | ' | ' | ' |
Securities available for sale | ' | ' | ' | 76,159,000 | ' | ' | ' |
Loans held for sale | ' | ' | ' | 338,000 | ' | ' | ' |
Loans and leases receivable | ' | ' | ' | 280,419,000 | ' | ' | ' |
Premises and equipment | ' | ' | ' | 15,499,000 | ' | ' | ' |
Deferred tax assets, net | 12,000,000 | ' | ' | 11,972,000 | ' | ' | ' |
Goodwill | 24,608,000 | ' | 11,237,000 | 13,371,000 | ' | ' | ' |
Core deposit intangible asset | ' | ' | ' | ' | ' | 5,060,000 | ' |
Bank owned life insurance | ' | ' | ' | 8,263,000 | ' | ' | ' |
Other assets | ' | ' | ' | 4,833,000 | ' | ' | ' |
Total assets acquired | ' | ' | ' | 453,512,000 | ' | ' | ' |
Liabilities assumed | ' | ' | ' | ' | ' | ' | ' |
Deposits | ' | ' | ' | 371,501,000 | ' | ' | ' |
Advances from Federal Home Loan Bank | ' | ' | ' | 6,071,000 | ' | ' | ' |
Junior subordinated debentures | ' | ' | ' | 4,804,000 | ' | ' | ' |
Other liabilities | ' | ' | ' | 2,174,000 | ' | ' | ' |
Total liabilities assumed | ' | ' | ' | 384,550,000 | ' | ' | ' |
Total consideration paid | ' | ' | ' | 68,962,000 | ' | ' | ' |
Non-impaired loans and leases | ' | ' | ' | 267,300,000 | ' | ' | ' |
Gross contractual amounts receivable | ' | ' | ' | 328,200,000 | ' | ' | ' |
Total contractual cash flows not expected to be collected on non-impaired loans and lease | ' | ' | ' | 5,400,000 | ' | ' | ' |
Credit risk component of purchase discount on gross outstanding principal balances (as a percent) | ' | ' | ' | 2.00% | ' | ' | ' |
Loans and leases receivable | ' | ' | ' | 280,800,000 | ' | ' | ' |
Premises and equipment held for sale | $5,042,000 | ' | ' | $3,300,000 | ' | ' | ' |
Business_Combination_Details_2
Business Combination (Details 2) (Mission Community, USD $) | 0 Months Ended | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2014 | Mar. 31, 2014 | Mar. 31, 2013 |
Mission Community | ' | ' | ' |
Consideration Paid | ' | ' | ' |
Cash payments for MISN shares outstanding | $2,554 | ' | ' |
Cash payments for MISN warrants | 5,766 | ' | ' |
Cash payments for MISN options | 387 | ' | ' |
Shares issued, @7.99 per share | 60,255 | ' | ' |
Total consideration paid | 68,962 | ' | ' |
Pro Forma Financial Information | ' | ' | ' |
Net interest Income | ' | 15,379 | 14,545 |
Provision for loan and lease losses | ' | ' | 100 |
Noninterest income | ' | 2,364 | 6,642 |
Noninterest expense | ' | 20,473 | 14,207 |
(Loss) income before income taxes | ' | -2,730 | 6,880 |
Income tax (benefit)expense | ' | -1,013 | 2,690 |
Net (loss) Income | ' | ($1,717) | $4,190 |
(Loss) Earnings Per Common Share | ' | ' | ' |
Basic (in dollars per share) | ' | ($0.05) | $0.11 |
Diluted (in dollars per share) | ' | ($0.05) | $0.11 |
Fair_Value_of_Assets_and_Liabi2
Fair Value of Assets and Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | $347,977 | $276,795 |
Obligations of U.S. government agencies | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 10,960 | 6,208 |
Mortgage-backed securities - Agency | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 235,765 | 182,931 |
Mortgage-backed securities - Non-agency | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 6,907 | 11,032 |
Obligations of state and municipal securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 64,383 | 50,030 |
Corporate debt securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 3,259 | ' |
Asset backed securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 26,703 | 26,594 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 347,977 | 276,795 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Number of Instruments Held | 0 | 0 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 347,977 | 276,795 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of U.S. government agencies | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 10,960 | 6,208 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities - Agency | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 235,765 | 182,931 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities - Non-agency | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 6,907 | 11,032 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of state and municipal securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 64,383 | 50,030 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 3,259 | ' |
Recurring basis | Significant Other Observable Inputs (Level 2) | Asset backed securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 26,703 | 26,594 |
Recurring basis | Assets At Fair Value | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 347,977 | 276,795 |
Recurring basis | Assets At Fair Value | Obligations of U.S. government agencies | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 10,960 | 6,208 |
Recurring basis | Assets At Fair Value | Mortgage-backed securities - Agency | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 235,765 | 182,931 |
Recurring basis | Assets At Fair Value | Mortgage-backed securities - Non-agency | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 6,907 | 11,032 |
Recurring basis | Assets At Fair Value | Obligations of state and municipal securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 64,383 | 50,030 |
Recurring basis | Assets At Fair Value | Corporate debt securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 3,259 | ' |
Recurring basis | Assets At Fair Value | Asset backed securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | $26,703 | $26,594 |
Fair_Value_of_Assets_and_Liabi3
Fair Value of Assets and Liabilities (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
Assets | ' | ' | ' |
Premises and equipment held for sale | $5,042 | ' | ' |
Recurring basis | ' | ' | ' |
Total Losses for assets measured at fair value on a non-recurring basis | ' | ' | ' |
Assets transfer from Level 1 to level 2 | 0 | ' | 0 |
Assets transfer from Level 2 to level 1 | 0 | ' | 0 |
Nonrecurring basis | ' | ' | ' |
Total Losses for assets measured at fair value on a non-recurring basis | ' | ' | ' |
Year to Date losses/(Recoveries) on premises and equipment held for sale | 1,186 | ' | ' |
Year to Date losses/(Recoveries) | 1,086 | -1,270 | ' |
Assets transfer from Level 1 to level 2 | 0 | ' | 0 |
Assets transfer from Level 2 to level 1 | 0 | ' | 0 |
Nonrecurring basis | Land | ' | ' | ' |
Total Losses for assets measured at fair value on a non-recurring basis | ' | ' | ' |
Year to Date losses/(Recoveries) on impaired loans | -100 | -1,270 | ' |
Nonrecurring basis | Assets At Fair Value | ' | ' | ' |
Assets | ' | ' | ' |
Premises and equipment held for sale | 1,730 | ' | ' |
Total assets measured on a non-recurring basis | 5,900 | 4,170 | ' |
Nonrecurring basis | Assets At Fair Value | Land | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | 4,170 | 4,170 | ' |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Assets | ' | ' | ' |
Premises and equipment held for sale | 1,730 | ' | ' |
Total assets measured on a non-recurring basis | 5,900 | 4,170 | ' |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Land | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | $4,170 | $4,170 | ' |
Fair_Value_of_Assets_and_Liabi4
Fair Value of Assets and Liabilities (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Investment securities available for sale, at fair value | $347,977 | $276,795 |
Liabilities | ' | ' |
Non-interest bearing deposits | 443,922 | 291,856 |
Junior subordinated debentures | 13,071 | 8,248 |
Off-balance sheet instruments, commitments to extend credit and standby letters of credit, Notional Amount | 255,701 | 198,481 |
Off-balance sheet instruments, commitments to extend credit and standby letters of credit, Cost to Cede or Assume | 2,557 | 1,985 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 65,857 | 26,238 |
Liabilities | ' | ' |
Non-interest bearing deposits | 443,922 | 291,856 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Assets | ' | ' |
Investment securities available for sale, at fair value | 347,977 | 276,795 |
Loans held for sale | 6,345 | 2,386 |
Accrued interest receivable | 1,522 | 1,397 |
Liabilities | ' | ' |
Interest bearing deposits | 926,628 | 684,345 |
Federal Home Loan Bank advances | 84,927 | 86,990 |
Accrued interest payable | 361 | 239 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Assets | ' | ' |
Loans receivable, net of deferred fees and costs | 1,112,792 | 827,105 |
Accrued interest receivable | 3,402 | 2,630 |
Liabilities | ' | ' |
Junior subordinated debentures | 9,570 | 7,595 |
Carrying Amount | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 65,857 | 26,238 |
Investment securities available for sale, at fair value | 347,977 | 276,795 |
Federal Home Loan Bank stock | 6,912 | 4,739 |
Loans receivable, net of deferred fees and costs | 1,112,644 | 826,203 |
Loans held for sale | 6,345 | 2,386 |
Accrued interest receivable | 4,924 | 4,027 |
Liabilities | ' | ' |
Non-interest bearing deposits | 443,922 | 291,856 |
Interest bearing deposits | 921,907 | 682,039 |
Federal Home Loan Bank advances | 85,571 | 88,500 |
Junior subordinated debentures | 13,071 | 8,248 |
Accrued interest payable | 361 | 239 |
Fair Value | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 65,857 | 26,238 |
Investment securities available for sale, at fair value | 347,977 | 276,795 |
Loans receivable, net of deferred fees and costs | 1,112,792 | 827,105 |
Loans held for sale | 6,345 | 2,386 |
Accrued interest receivable | 4,924 | 4,027 |
Liabilities | ' | ' |
Non-interest bearing deposits | 443,922 | 291,856 |
Interest bearing deposits | 926,628 | 684,345 |
Federal Home Loan Bank advances | 84,927 | 86,990 |
Junior subordinated debentures | 9,570 | 7,595 |
Accrued interest payable | $361 | $239 |
Investment_Securities_Details
Investment Securities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Total | $350,994 | $282,615 |
Gross Unrealized Gains | 1,858 | 778 |
Gross Unrealized Losses | -4,875 | -6,598 |
Fair Value | 347,977 | 276,795 |
Obligations of U.S. government agencies | ' | ' |
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Total | 10,998 | 6,243 |
Gross Unrealized Gains | 32 | 11 |
Gross Unrealized Losses | -70 | -46 |
Fair Value | 10,960 | 6,208 |
Mortgage-backed securities - U.S. government sponsored entities and agencies | ' | ' |
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Total | 238,563 | 186,981 |
Gross Unrealized Gains | 714 | 342 |
Gross Unrealized Losses | -3,512 | -4,392 |
Fair Value | 235,765 | 182,931 |
Mortgage-backed securities - Non-agency | ' | ' |
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Total | 6,745 | 10,924 |
Gross Unrealized Gains | 190 | 156 |
Gross Unrealized Losses | -28 | -48 |
Fair Value | 6,907 | 11,032 |
State and municipal securities | ' | ' |
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Total | 64,519 | 51,532 |
Gross Unrealized Gains | 914 | 269 |
Gross Unrealized Losses | -1,050 | -1,771 |
Fair Value | 64,383 | 50,030 |
Corporate debt securities | ' | ' |
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Total | 3,256 | ' |
Gross Unrealized Gains | 6 | ' |
Gross Unrealized Losses | -3 | ' |
Fair Value | 3,259 | ' |
Asset backed securities | ' | ' |
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Total | 26,913 | 26,935 |
Gross Unrealized Gains | 2 | ' |
Gross Unrealized Losses | -212 | -341 |
Fair Value | $26,703 | $26,594 |
Investment_Securities_Details_
Investment Securities (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | |
OTTI Related to Credit Loss | OTTI Related to All Other Factors | Private labeled mortgage backed securities | Private labeled mortgage backed securities | ||
investment | |||||
Other than Temporary Impairment | ' | ' | ' | ' | ' |
Number of investment securities in which other than temporary impairment losses were recognized | ' | ' | ' | ' | 2 |
Other than temporary impairment investments, fair value | ' | ' | ' | $700,000 | ' |
Other than temporary impairment investments, historical cost | ' | ' | ' | 1,000,000 | ' |
Additional information related to the recognized OTTI losses | ' | ' | ' | ' | ' |
Balance, beginning of the period | ' | 109,000 | 170,000 | ' | ' |
Less: losses related to OTTI securities sold | 279,000 | -109,000 | -170,000 | ' | ' |
Change in value attributable to other factors | ($279,000) | ' | ' | ' | ' |
Investment_Securities_Details_1
Investment Securities (Details 3) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
securities | securities | ||
Investment securities | ' | ' | ' |
Less Than Twelve Months, Fair Value | $165,412 | ' | $165,482 |
Less Than Twelve Months, Unrealized Loss | -2,918 | ' | -5,154 |
Twelve Months or More, Fair Value | 60,247 | ' | 31,108 |
Twelve Months or More, Unrealized Loss | -1,957 | ' | -1,444 |
Total, Fair Value | 225,659 | ' | 196,590 |
Total, Unrealized Loss | -4,875 | ' | -6,598 |
Securities were in an unrealized loss position | 132 | ' | 96 |
Proceeds from the sales and calls of securities and the associated gains and losses | ' | ' | ' |
Proceeds | 15,562 | 89,245 | ' |
Gross gains | 78 | 4,204 | ' |
Gross losses | -80 | -618 | ' |
Income tax expense related to net realized (losses) gains on sales and calls of securities | -1 | 1,476 | ' |
Available for sale securities | ' | ' | ' |
One Year Or Less | 37,431 | ' | ' |
Over 1 Through 5 Years | 118,421 | ' | ' |
Over 5 Years Through 10 Years | 115,095 | ' | ' |
Over 10 Years | 77,030 | ' | ' |
Total | 347,977 | ' | 276,795 |
Available for sale securities, Amortized cost | ' | ' | ' |
One Year Or Less | 37,605 | ' | ' |
Over 1 Through 5 Years | 119,112 | ' | ' |
Over 5 Years Through 10 Years | 115,777 | ' | ' |
Over 10 Years | 78,500 | ' | ' |
Total | 350,994 | ' | 282,615 |
Weighted average yield | ' | ' | ' |
One Year Or Less (as a percent) | 1.83% | ' | ' |
Over 1 Through 5 Years (as a percent) | 2.14% | ' | ' |
Over 5 Years Through 10 Years (as a percent) | 2.41% | ' | ' |
Over 10 Years (as a percent) | 2.64% | ' | ' |
Total (as a percent) | 2.31% | ' | ' |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' |
Total | 1,590 | 1,433 | ' |
Investment securities | Minimum | ' | ' | ' |
Securities in an unrealized loss position | ' | ' | ' |
Maturity period of available-for-sale securities | '1 year | ' | ' |
Investment securities | Maximum | ' | ' | ' |
Securities in an unrealized loss position | ' | ' | ' |
Maturity period of available-for-sale securities | '40 years | ' | ' |
Obligations of U.S. government agencies | ' | ' | ' |
Investment securities | ' | ' | ' |
Less Than Twelve Months, Fair Value | 8,697 | ' | 2,773 |
Less Than Twelve Months, Unrealized Loss | -69 | ' | -45 |
Twelve Months or More, Fair Value | 39 | ' | 40 |
Twelve Months or More, Unrealized Loss | -1 | ' | -1 |
Total, Fair Value | 8,736 | ' | 2,813 |
Total, Unrealized Loss | -70 | ' | -46 |
Available for sale securities | ' | ' | ' |
One Year Or Less | 313 | ' | ' |
Over 1 Through 5 Years | 408 | ' | ' |
Over 5 Years Through 10 Years | 7,931 | ' | ' |
Over 10 Years | 2,308 | ' | ' |
Total | 10,960 | ' | 6,208 |
Available for sale securities, Amortized cost | ' | ' | ' |
Total | 10,998 | ' | 6,243 |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' |
Taxable earnings on investment securities | 48 | 31 | ' |
Mortgage backed securities | ' | ' | ' |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' |
Taxable earnings on investment securities | 1,025 | 830 | ' |
Mortgage-backed securities - U.S. government sponsored entities and agencies | ' | ' | ' |
Investment securities | ' | ' | ' |
Less Than Twelve Months, Fair Value | 129,207 | ' | 118,554 |
Less Than Twelve Months, Unrealized Loss | -2,060 | ' | -3,140 |
Twelve Months or More, Fair Value | 36,187 | ' | 18,863 |
Twelve Months or More, Unrealized Loss | -1,452 | ' | -1,252 |
Total, Fair Value | 165,394 | ' | 137,417 |
Total, Unrealized Loss | -3,512 | ' | -4,392 |
Available for sale securities | ' | ' | ' |
One Year Or Less | 33,738 | ' | ' |
Over 1 Through 5 Years | 92,135 | ' | ' |
Over 5 Years Through 10 Years | 49,212 | ' | ' |
Over 10 Years | 60,680 | ' | ' |
Total | 235,765 | ' | 182,931 |
Available for sale securities, Amortized cost | ' | ' | ' |
Total | 238,563 | ' | 186,981 |
Mortgage-backed securities - Non-agency | ' | ' | ' |
Investment securities | ' | ' | ' |
Less Than Twelve Months, Fair Value | 484 | ' | 3,210 |
Less Than Twelve Months, Unrealized Loss | -28 | ' | -48 |
Total, Fair Value | 484 | ' | 3,210 |
Total, Unrealized Loss | -28 | ' | -48 |
Available for sale securities | ' | ' | ' |
One Year Or Less | 375 | ' | ' |
Over 1 Through 5 Years | 4,976 | ' | ' |
Over 5 Years Through 10 Years | 1,556 | ' | ' |
Total | 6,907 | ' | 11,032 |
Available for sale securities, Amortized cost | ' | ' | ' |
Total | 6,745 | ' | 10,924 |
State and municipal securities | ' | ' | ' |
Investment securities | ' | ' | ' |
Less Than Twelve Months, Fair Value | 24,775 | ' | 32,967 |
Less Than Twelve Months, Unrealized Loss | -758 | ' | -1,675 |
Twelve Months or More, Fair Value | 6,398 | ' | 2,458 |
Twelve Months or More, Unrealized Loss | -292 | ' | -96 |
Total, Fair Value | 31,173 | ' | 35,425 |
Total, Unrealized Loss | -1,050 | ' | -1,771 |
Available for sale securities | ' | ' | ' |
One Year Or Less | 3,005 | ' | ' |
Over 1 Through 5 Years | 18,888 | ' | ' |
Over 5 Years Through 10 Years | 40,342 | ' | ' |
Over 10 Years | 2,148 | ' | ' |
Total | 64,383 | ' | 50,030 |
Available for sale securities, Amortized cost | ' | ' | ' |
Total | 64,519 | ' | 51,532 |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' |
Taxable earnings on investment securities | ' | 5 | ' |
Non-taxable earnings on investment securities | 439 | 455 | ' |
Corporate debt securities | ' | ' | ' |
Investment securities | ' | ' | ' |
Less Than Twelve Months, Fair Value | 2,249 | ' | ' |
Less Than Twelve Months, Unrealized Loss | -3 | ' | ' |
Total, Fair Value | 2,249 | ' | ' |
Total, Unrealized Loss | -3 | ' | ' |
Available for sale securities | ' | ' | ' |
Over 1 Through 5 Years | 2,014 | ' | ' |
Over 5 Years Through 10 Years | 1,245 | ' | ' |
Total | 3,259 | ' | ' |
Available for sale securities, Amortized cost | ' | ' | ' |
Total | 3,256 | ' | ' |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' |
Taxable earnings on investment securities | 3 | ' | ' |
Asset backed securities | ' | ' | ' |
Investment securities | ' | ' | ' |
Less Than Twelve Months, Fair Value | ' | ' | 7,978 |
Less Than Twelve Months, Unrealized Loss | ' | ' | -246 |
Twelve Months or More, Fair Value | 17,623 | ' | 9,747 |
Twelve Months or More, Unrealized Loss | -212 | ' | -95 |
Total, Fair Value | 17,623 | ' | 17,725 |
Total, Unrealized Loss | -212 | ' | -341 |
Available for sale securities | ' | ' | ' |
Over 5 Years Through 10 Years | 14,809 | ' | ' |
Over 10 Years | 11,894 | ' | ' |
Total | 26,703 | ' | 26,594 |
Available for sale securities, Amortized cost | ' | ' | ' |
Total | 26,913 | ' | 26,935 |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' |
Taxable earnings on investment securities | 75 | 112 | ' |
Securities pledged to secure public deposits | ' | ' | ' |
Available for sale securities | ' | ' | ' |
Total | 55,100 | ' | 40,400 |
Available for sale securities, Amortized cost | ' | ' | ' |
Total | $55,300 | ' | $41,900 |
Loans_Details
Loans (Details) (USD $) | 3 Months Ended | 39 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
loan | |||||
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | $1,114,070,000 | ' | $1,114,070,000 | $827,484,000 | ' |
Net loans held for investment | 1,094,676,000 | ' | 1,094,676,000 | 808,344,000 | ' |
Loans pledged as collateral | 844,200,000 | ' | 844,200,000 | ' | ' |
Net deferred loan fees | -1,426,000 | ' | -1,426,000 | -1,281,000 | ' |
Allowance for loan losses | -17,968,000 | -17,743,000 | -17,968,000 | -17,859,000 | -18,118,000 |
Loans held for sale | 6,345,000 | ' | 6,345,000 | 2,386,000 | ' |
Reserve maintained for the exercise of repurchase option by buyer | 400,000 | ' | 400,000 | ' | ' |
Number of loans settled | ' | ' | 9 | ' | ' |
Losses incurred on settlement | ' | ' | 1,600,000 | ' | ' |
Concentration of Credit Risk | ' | ' | ' | ' | ' |
Loan portfolio collateralized by various forms of real estate | 898,500,000 | ' | 898,500,000 | 672,100,000 | ' |
Loans Serviced for Others | ' | ' | ' | ' | ' |
Unpaid principal balance of loans serviced for others, exclusive of SBA loans | 62,700,000 | ' | 62,700,000 | 22,600,000 | ' |
Unpaid principal balance of SBA loans serviced for others | 29,200,000 | ' | 29,200,000 | 6,600,000 | ' |
Recognized gains from the sale of SBA loans | 0 | 0 | ' | ' | ' |
Federal Reserve Bank | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Loans pledged as collateral | 13,500,000 | ' | 13,500,000 | ' | ' |
FHLB secured borrowings | 85,500,000 | ' | 85,500,000 | ' | ' |
FHLB secured line of credit | 11,500,000 | ' | 11,500,000 | ' | ' |
FHLB secured future borrowings | 332,500,000 | ' | 332,500,000 | ' | ' |
MISN | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 280,800,000 | ' | 280,800,000 | ' | ' |
Net loans held for investment | 280,800,000 | ' | 280,800,000 | ' | ' |
Net loans without impairment | 267,500,000 | ' | 267,500,000 | ' | ' |
Net loans with purchased credit impaired | 13,300,000 | ' | 13,300,000 | ' | ' |
Minimum | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Period for sale of loans categorized as held for sale | '30 days | ' | ' | ' | ' |
Maximum | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Period for sale of loans categorized as held for sale | '60 days | ' | ' | ' | ' |
Real Estate Secured | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 847,826,000 | ' | 847,826,000 | 633,839,000 | ' |
Allowance for loan losses | -9,250,000 | -6,114,000 | -9,250,000 | -9,157,000 | -6,879,000 |
Real Estate Secured | Multi-family residential | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 47,610,000 | ' | 47,610,000 | 31,140,000 | ' |
Real Estate Secured | Residential 1 to 4 family | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 111,776,000 | ' | 111,776,000 | 88,904,000 | ' |
Real Estate Secured | Home equity lines of credit | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 41,301,000 | ' | 41,301,000 | 31,178,000 | ' |
Real Estate Secured | Commercial | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 580,990,000 | ' | 580,990,000 | 432,203,000 | ' |
Real Estate Secured | Farmland | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 66,149,000 | ' | 66,149,000 | 50,414,000 | ' |
Commercial | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 205,095,000 | ' | 205,095,000 | 151,845,000 | ' |
Allowance for loan losses | -4,898,000 | -6,720,000 | -4,898,000 | -4,857,000 | -6,154,000 |
Commercial | Commercial and industrial | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 146,710,000 | ' | 146,710,000 | 119,121,000 | ' |
Commercial | Agriculture | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 57,632,000 | ' | 57,632,000 | 32,686,000 | ' |
Commercial | Other | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 753,000 | ' | 753,000 | 38,000 | ' |
Construction | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 22,731,000 | ' | 22,731,000 | 13,699,000 | ' |
Allowance for loan losses | -147,000 | -144,000 | -147,000 | -262,000 | -313,000 |
Construction | Single family residential | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 6,035,000 | ' | 6,035,000 | 3,873,000 | ' |
Construction | Single family residential - Spec. | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 620,000 | ' | 620,000 | 1,153,000 | ' |
Construction | Multi-family | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 3,946,000 | ' | 3,946,000 | 736,000 | ' |
Construction | Hospitality | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 3,088,000 | ' | 3,088,000 | ' | ' |
Construction | Commercial | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 9,042,000 | ' | 9,042,000 | 7,937,000 | ' |
Land | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 27,908,000 | ' | 27,908,000 | 24,523,000 | ' |
Allowance for loan losses | -3,155,000 | -4,567,000 | -3,155,000 | -3,451,000 | -4,670,000 |
Installment loans to individuals | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | 10,323,000 | ' | 10,323,000 | 3,246,000 | ' |
Allowance for loan losses | -87,000 | -101,000 | -87,000 | -100,000 | -64,000 |
Overdrafts | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' |
Total gross loans | $187,000 | ' | $187,000 | $332,000 | ' |
Loans_Details_2
Loans (Details 2) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Investment in impaired loans | ' | ' | ' |
Recorded Investment | $28,300,000 | ' | $16,016,000 |
Unpaid Principal Balance | 38,400,000 | ' | 21,711,000 |
Impaired Loans With Specific Allowance | 9,761,000 | ' | 10,186,000 |
Impaired Loans Without Specific Allowance | 18,539,000 | ' | 5,830,000 |
Specific Allowance for Impaired Loans | 3,179,000 | ' | 3,155,000 |
Average Recorded Investment | 18,450,000 | 15,437,000 | ' |
Interest Income Recognized | 221,000 | ' | ' |
Increase in interest income if interest on non-accruing loans had been recognized at original interest rates stipulated in the respective loan agreements | 100,000 | 200,000 | ' |
Real Estate Secured | Residential 1 to 4 family | ' | ' | ' |
Investment in impaired loans | ' | ' | ' |
Recorded Investment | 1,218,000 | ' | 944,000 |
Unpaid Principal Balance | 1,626,000 | ' | 1,102,000 |
Impaired Loans Without Specific Allowance | 1,218,000 | ' | 944,000 |
Average Recorded Investment | 1,046,000 | 718,000 | ' |
Interest Income Recognized | 8,000 | ' | ' |
Real Estate Secured | Home equity lines of credit | ' | ' | ' |
Investment in impaired loans | ' | ' | ' |
Recorded Investment | 80,000 | ' | ' |
Unpaid Principal Balance | 182,000 | ' | ' |
Impaired Loans Without Specific Allowance | 80,000 | ' | ' |
Average Recorded Investment | 40,000 | 58,000 | ' |
Real Estate Secured | Commercial | ' | ' | ' |
Investment in impaired loans | ' | ' | ' |
Recorded Investment | 6,234,000 | ' | 901,000 |
Unpaid Principal Balance | 8,934,000 | ' | 1,646,000 |
Impaired Loans Without Specific Allowance | 6,234,000 | ' | 901,000 |
Average Recorded Investment | 1,065,000 | 818,000 | ' |
Interest Income Recognized | 75,000 | ' | ' |
Real Estate Secured | Farmland | ' | ' | ' |
Investment in impaired loans | ' | ' | ' |
Recorded Investment | 1,719,000 | ' | ' |
Unpaid Principal Balance | 2,094,000 | ' | ' |
Impaired Loans Without Specific Allowance | 1,719,000 | ' | ' |
Average Recorded Investment | 853,000 | 539,000 | ' |
Interest Income Recognized | 1,000 | ' | ' |
Commercial | Commercial and industrial | ' | ' | ' |
Investment in impaired loans | ' | ' | ' |
Recorded Investment | 7,716,000 | ' | 5,337,000 |
Unpaid Principal Balance | 9,503,000 | ' | 5,843,000 |
Impaired Loans With Specific Allowance | 3,154,000 | ' | 3,480,000 |
Impaired Loans Without Specific Allowance | 4,562,000 | ' | 1,857,000 |
Specific Allowance for Impaired Loans | 747,000 | ' | 623,000 |
Average Recorded Investment | 5,731,000 | 4,103,000 | ' |
Interest Income Recognized | 93,000 | ' | ' |
Commercial | Agriculture | ' | ' | ' |
Investment in impaired loans | ' | ' | ' |
Recorded Investment | 2,298,000 | ' | 789,000 |
Unpaid Principal Balance | 2,345,000 | ' | 824,000 |
Impaired Loans Without Specific Allowance | 2,298,000 | ' | 789,000 |
Average Recorded Investment | 1,543,000 | 869,000 | ' |
Interest Income Recognized | 6,000 | ' | ' |
Construction | Commercial | ' | ' | ' |
Investment in impaired loans | ' | ' | ' |
Average Recorded Investment | 211,000 | 690,000 | ' |
Land | ' | ' | ' |
Investment in impaired loans | ' | ' | ' |
Recorded Investment | 8,941,000 | ' | 7,927,000 |
Unpaid Principal Balance | 13,533,000 | ' | 12,106,000 |
Impaired Loans With Specific Allowance | 6,607,000 | ' | 6,706,000 |
Impaired Loans Without Specific Allowance | 2,334,000 | ' | 1,221,000 |
Specific Allowance for Impaired Loans | 2,432,000 | ' | 2,532,000 |
Average Recorded Investment | 7,855,000 | 7,449,000 | ' |
Interest Income Recognized | 37,000 | ' | ' |
Installment loans to individuals | ' | ' | ' |
Investment in impaired loans | ' | ' | ' |
Recorded Investment | 94,000 | ' | 118,000 |
Unpaid Principal Balance | 183,000 | ' | 190,000 |
Impaired Loans Without Specific Allowance | 94,000 | ' | 118,000 |
Average Recorded Investment | 106,000 | 193,000 | ' |
Interest Income Recognized | $1,000 | ' | ' |
Loans_Details_3
Loans (Details 3) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
TDR | TDR | ||
Troubled debt restructurings | ' | ' | ' |
Loans classified as TDRs | $14,300,000 | ' | $12,900,000 |
Accruing loans that were classified as TDRs | 6,200,000 | ' | 5,900,000 |
Interest loss related to rate concessions on certain TDRs | 49,000 | 45,000 | ' |
Number of TDRs | 8 | 4 | ' |
Pre-Modification Outstanding Recorded Investment | 1,981,000 | 151,000 | ' |
Post-Modification Outstanding Recorded Investment | 1,981,000 | 151,000 | ' |
Number of TDRs | 0 | 1 | ' |
Recorded Investment | ' | 49,000 | ' |
Minimum | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Period of maturity date extensions granted | '6 months | ' | ' |
Maximum | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Period of maturity date extensions granted | '10 years | ' | ' |
Real Estate Secured | Commercial real estate | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Number of TDRs | 1 | ' | ' |
Pre-Modification Outstanding Recorded Investment | 166,000 | ' | ' |
Post-Modification Outstanding Recorded Investment | 166,000 | ' | ' |
Commercial | Commercial and industrial | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Number of TDRs | 4 | 4 | ' |
Pre-Modification Outstanding Recorded Investment | 920,000 | 151,000 | ' |
Post-Modification Outstanding Recorded Investment | 920,000 | 151,000 | ' |
Number of TDRs | ' | 1 | ' |
Recorded Investment | ' | 49,000 | ' |
Commercial | Agriculture | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Number of TDRs | 1 | ' | ' |
Pre-Modification Outstanding Recorded Investment | 662,000 | ' | ' |
Post-Modification Outstanding Recorded Investment | 662,000 | ' | ' |
Land | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Number of TDRs | 1 | ' | ' |
Pre-Modification Outstanding Recorded Investment | 160,000 | ' | ' |
Post-Modification Outstanding Recorded Investment | 160,000 | ' | ' |
Installment loans to individuals | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' |
Number of TDRs | 1 | ' | ' |
Pre-Modification Outstanding Recorded Investment | 73,000 | ' | ' |
Post-Modification Outstanding Recorded Investment | $73,000 | ' | ' |
Loans_Details_4
Loans (Details 4) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | $1,114,070 | $827,484 |
Days Past Due | ' | ' |
30-59 | 815 | 100 |
60-89 | 56 | 2 |
Non-Accruing | 9,937 | 10,117 |
Accruing TDR | 6,246 | 5,853 |
Unpaid Principal Balance | 38,400 | 21,711 |
Carrying Amount | 3,179 | 3,155 |
Accretable yield, or income expected to be collected | ' | ' |
New loans purchased | 4,801 | ' |
Accretion of income | -117 | ' |
Reclassifications from nonaccretable difference | 25 | ' |
Balance at the end of the period | 4,709 | ' |
Purchased credit impaired loans | ' | ' |
Days Past Due | ' | ' |
Unpaid Principal Balance | 16,344 | ' |
Carrying Amount | 12,744 | ' |
Contractually required payments receivable of loans purchased during the period | ' | ' |
Allowance for loan losses | 0 | ' |
Total payments receivable | 19,721 | ' |
Cash flows expected to be collected at acquisition | 17,737 | ' |
Fair value of purchase impaired loans at acquisition | 12,936 | ' |
Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 1,033,013 | 780,610 |
Credit Risk Grades, Special Mention | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 33,238 | 11,383 |
Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 47,819 | 35,491 |
Commercial and industrial | Purchased credit impaired loans | ' | ' |
Days Past Due | ' | ' |
Unpaid Principal Balance | 4,605 | ' |
Carrying Amount | 3,825 | ' |
Contractually required payments receivable of loans purchased during the period | ' | ' |
Total payments receivable | 5,107 | ' |
Real Estate Secured | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 847,826 | 633,839 |
Real Estate Secured | Purchased credit impaired loans | ' | ' |
Days Past Due | ' | ' |
Unpaid Principal Balance | 10,591 | ' |
Carrying Amount | 7,933 | ' |
Contractually required payments receivable of loans purchased during the period | ' | ' |
Total payments receivable | 13,329 | ' |
Real Estate Secured | Multi-family residential | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 47,610 | 31,140 |
Real Estate Secured | Multi-family residential | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 47,035 | 30,560 |
Real Estate Secured | Multi-family residential | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 575 | 580 |
Real Estate Secured | Residential 1 to 4 family | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 111,776 | 88,904 |
Days Past Due | ' | ' |
Non-Accruing | 105 | 449 |
Accruing TDR | 494 | 499 |
Unpaid Principal Balance | 1,626 | 1,102 |
Real Estate Secured | Residential 1 to 4 family | Purchased credit impaired loans | ' | ' |
Days Past Due | ' | ' |
Unpaid Principal Balance | 893 | ' |
Carrying Amount | 626 | ' |
Contractually required payments receivable of loans purchased during the period | ' | ' |
Total payments receivable | 1,159 | ' |
Real Estate Secured | Residential 1 to 4 family | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 109,775 | 87,350 |
Real Estate Secured | Residential 1 to 4 family | Credit Risk Grades, Special Mention | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 665 | 490 |
Real Estate Secured | Residential 1 to 4 family | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 1,336 | 1,064 |
Real Estate Secured | Home equity lines of credit | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 41,301 | 31,178 |
Days Past Due | ' | ' |
Unpaid Principal Balance | 182 | ' |
Real Estate Secured | Home equity lines of credit | Purchased credit impaired loans | ' | ' |
Days Past Due | ' | ' |
Unpaid Principal Balance | 98 | ' |
Carrying Amount | 81 | ' |
Contractually required payments receivable of loans purchased during the period | ' | ' |
Total payments receivable | 113 | ' |
Real Estate Secured | Home equity lines of credit | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 40,969 | 31,021 |
Real Estate Secured | Home equity lines of credit | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 332 | 157 |
Real Estate Secured | Commercial | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 580,990 | 432,203 |
Days Past Due | ' | ' |
Non-Accruing | 485 | 672 |
Accruing TDR | 388 | 225 |
Unpaid Principal Balance | 8,934 | 1,646 |
Real Estate Secured | Commercial | Purchased credit impaired loans | ' | ' |
Days Past Due | ' | ' |
Unpaid Principal Balance | 7,506 | ' |
Carrying Amount | 5,498 | ' |
Contractually required payments receivable of loans purchased during the period | ' | ' |
Total payments receivable | 9,199 | ' |
Real Estate Secured | Commercial | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 536,047 | 414,058 |
Real Estate Secured | Commercial | Credit Risk Grades, Special Mention | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 22,792 | 3,574 |
Real Estate Secured | Commercial | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 22,151 | 14,571 |
Real Estate Secured | Farmland | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 66,149 | 50,414 |
Days Past Due | ' | ' |
Unpaid Principal Balance | 2,094 | ' |
Real Estate Secured | Farmland | Purchased credit impaired loans | ' | ' |
Days Past Due | ' | ' |
Unpaid Principal Balance | 2,094 | ' |
Carrying Amount | 1,728 | ' |
Contractually required payments receivable of loans purchased during the period | ' | ' |
Total payments receivable | 2,858 | ' |
Real Estate Secured | Farmland | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 62,965 | 47,988 |
Real Estate Secured | Farmland | Credit Risk Grades, Special Mention | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 969 | 975 |
Real Estate Secured | Farmland | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 2,215 | 1,451 |
Commercial | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 205,095 | 151,845 |
Commercial | Commercial and industrial | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 146,710 | 119,121 |
Days Past Due | ' | ' |
30-59 | 744 | 100 |
60-89 | 15 | ' |
Non-Accruing | 2,786 | 2,180 |
Accruing TDR | 3,016 | 3,119 |
Unpaid Principal Balance | 9,503 | 5,843 |
Carrying Amount | 747 | 623 |
Commercial | Commercial and industrial | Purchased credit impaired loans | ' | ' |
Days Past Due | ' | ' |
Unpaid Principal Balance | 3,325 | ' |
Carrying Amount | 2,548 | ' |
Contractually required payments receivable of loans purchased during the period | ' | ' |
Total payments receivable | 3,514 | ' |
Commercial | Commercial and industrial | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 130,808 | 105,991 |
Commercial | Commercial and industrial | Credit Risk Grades, Special Mention | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 5,876 | 5,276 |
Commercial | Commercial and industrial | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 10,026 | 7,854 |
Commercial | Agriculture | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 57,632 | 32,686 |
Days Past Due | ' | ' |
Non-Accruing | 727 | 789 |
Accruing TDR | 299 | ' |
Unpaid Principal Balance | 2,345 | 824 |
Commercial | Agriculture | Purchased credit impaired loans | ' | ' |
Days Past Due | ' | ' |
Unpaid Principal Balance | 1,280 | ' |
Carrying Amount | 1,277 | ' |
Contractually required payments receivable of loans purchased during the period | ' | ' |
Total payments receivable | 1,593 | ' |
Commercial | Agriculture | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 54,972 | 31,279 |
Commercial | Agriculture | Credit Risk Grades, Special Mention | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 663 | 196 |
Commercial | Agriculture | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 1,997 | 1,211 |
Commercial | Other | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 753 | 38 |
Commercial | Other | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 753 | 38 |
Construction | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 22,731 | 13,699 |
Construction | Single family residential | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 6,035 | 3,873 |
Construction | Single family residential | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 6,035 | 3,873 |
Construction | Single family residential - Spec. | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 620 | 1,153 |
Construction | Single family residential - Spec. | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 620 | 1,153 |
Construction | Multi-family | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 3,946 | 736 |
Construction | Multi-family | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 3,946 | 736 |
Construction | Hospitality | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 3,088 | ' |
Construction | Hospitality | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 3,088 | ' |
Construction | Commercial | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 9,042 | 7,937 |
Construction | Commercial | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 9,042 | 7,937 |
Land | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 27,908 | 24,523 |
Days Past Due | ' | ' |
30-59 | 71 | ' |
60-89 | 41 | ' |
Non-Accruing | 5,813 | 5,910 |
Accruing TDR | 1,976 | 2,010 |
Unpaid Principal Balance | 13,533 | 12,106 |
Carrying Amount | 2,432 | 2,532 |
Land | Purchased credit impaired loans | ' | ' |
Days Past Due | ' | ' |
Unpaid Principal Balance | 1,148 | ' |
Carrying Amount | 986 | ' |
Contractually required payments receivable of loans purchased during the period | ' | ' |
Total payments receivable | 1,285 | ' |
Land | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 16,608 | 15,244 |
Land | Credit Risk Grades, Special Mention | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 2,273 | 862 |
Land | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 9,027 | 8,417 |
Installment loans to individuals | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 10,323 | 3,246 |
Days Past Due | ' | ' |
60-89 | ' | 2 |
Non-Accruing | 21 | 117 |
Accruing TDR | 73 | ' |
Unpaid Principal Balance | 183 | 190 |
Installment loans to individuals | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 10,163 | 3,050 |
Installment loans to individuals | Credit Risk Grades, Special Mention | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | ' | 10 |
Installment loans to individuals | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 160 | 186 |
Overdrafts | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 187 | 332 |
Overdrafts | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | $187 | $332 |
Allowance_for_Loan_and_Lease_L2
Allowance for Loan and Lease Losses (ALLL) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' |
Balance, at the beginning of the period | $17,859 | $18,118 | ' |
Charge-offs | -94 | -660 | ' |
Recoveries | 203 | 285 | ' |
Balance, at the end of the period | 17,968 | 17,743 | ' |
Amount of allowance attributed to: | ' | ' | ' |
Specifically evaluated impaired loans | 3,179 | ' | 3,155 |
General portfolio allocation | 14,789 | ' | 14,704 |
Loans individually evaluated for impairment | 15,556 | ' | 14,449 |
Loans acquired with deteriorated credit quality | 12,744 | ' | ' |
Loans collectively evaluated for impairment | 1,085,770 | ' | 813,035 |
General reserves to total loans collectively evaluated for impairment (as a percent) | 1.36% | ' | 1.81% |
Total gross loans | 1,114,070 | ' | 827,484 |
Total allowance to gross loans (as a percent) | 1.61% | ' | 2.16% |
MISN | ' | ' | ' |
Amount of allowance attributed to: | ' | ' | ' |
Total gross loans | 280,800 | ' | ' |
Allowance for loan and lease losses | 0 | ' | ' |
Heritage Oaks | ' | ' | ' |
Amount of allowance attributed to: | ' | ' | ' |
Total gross loans | 830,000 | ' | ' |
Total allowance to gross loans (as a percent) | 2.16% | ' | ' |
Real Estate Secured | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' |
Balance, at the beginning of the period | 9,157 | 6,879 | ' |
Charge-offs | -92 | ' | ' |
Recoveries | 16 | 116 | ' |
Provisions for loan losses | 169 | -881 | ' |
Balance, at the end of the period | 9,250 | 6,114 | ' |
Amount of allowance attributed to: | ' | ' | ' |
General portfolio allocation | 9,250 | ' | 9,025 |
Loans individually evaluated for impairment | 1,318 | ' | 1,462 |
Loans acquired with deteriorated credit quality | 7,933 | ' | ' |
Loans collectively evaluated for impairment | 838,575 | ' | 632,377 |
General reserves to total loans collectively evaluated for impairment (as a percent) | 1.10% | ' | 1.43% |
Total gross loans | 847,826 | ' | 633,839 |
Total allowance to gross loans (as a percent) | 1.09% | ' | 1.44% |
Commercial | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' |
Balance, at the beginning of the period | 4,857 | 6,154 | ' |
Charge-offs | ' | -339 | ' |
Recoveries | 175 | 136 | ' |
Provisions for loan losses | -134 | 769 | ' |
Balance, at the end of the period | 4,898 | 6,720 | ' |
Amount of allowance attributed to: | ' | ' | ' |
Specifically evaluated impaired loans | 747 | ' | 623 |
General portfolio allocation | 4,151 | ' | 4,158 |
Loans individually evaluated for impairment | 6,189 | ' | 5,291 |
Loans acquired with deteriorated credit quality | 3,825 | ' | ' |
Loans collectively evaluated for impairment | 195,081 | ' | 146,554 |
General reserves to total loans collectively evaluated for impairment (as a percent) | 2.13% | ' | 2.84% |
Total gross loans | 205,095 | ' | 151,845 |
Total allowance to gross loans (as a percent) | 2.39% | ' | 3.20% |
Construction | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' |
Balance, at the beginning of the period | 262 | 313 | ' |
Charge-offs | ' | -169 | ' |
Provisions for loan losses | -115 | ' | ' |
Balance, at the end of the period | 147 | 144 | ' |
Amount of allowance attributed to: | ' | ' | ' |
General portfolio allocation | 147 | ' | 258 |
Loans collectively evaluated for impairment | 22,731 | ' | 13,699 |
General reserves to total loans collectively evaluated for impairment (as a percent) | 0.65% | ' | 1.88% |
Total gross loans | 22,731 | ' | 13,699 |
Total allowance to gross loans (as a percent) | 0.65% | ' | 1.91% |
Land | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' |
Balance, at the beginning of the period | 3,451 | 4,670 | ' |
Charge-offs | ' | -34 | ' |
Recoveries | 7 | 3 | ' |
Provisions for loan losses | -303 | -72 | ' |
Balance, at the end of the period | 3,155 | 4,567 | ' |
Amount of allowance attributed to: | ' | ' | ' |
Specifically evaluated impaired loans | 2,432 | ' | 2,532 |
General portfolio allocation | 723 | ' | 870 |
Loans individually evaluated for impairment | 7,955 | ' | 7,696 |
Loans acquired with deteriorated credit quality | 986 | ' | ' |
Loans collectively evaluated for impairment | 18,967 | ' | 16,827 |
General reserves to total loans collectively evaluated for impairment (as a percent) | 3.81% | ' | 5.17% |
Total gross loans | 27,908 | ' | 24,523 |
Total allowance to gross loans (as a percent) | 11.30% | ' | 14.07% |
Installment | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' |
Balance, at the beginning of the period | 100 | 64 | ' |
Charge-offs | -2 | -118 | ' |
Recoveries | 5 | 30 | ' |
Provisions for loan losses | -16 | 125 | ' |
Balance, at the end of the period | 87 | 101 | ' |
Amount of allowance attributed to: | ' | ' | ' |
General portfolio allocation | 87 | ' | 99 |
Loans collectively evaluated for impairment | 10,323 | ' | 3,246 |
General reserves to total loans collectively evaluated for impairment (as a percent) | 0.84% | ' | 3.05% |
Total gross loans | 10,323 | ' | 3,246 |
Total allowance to gross loans (as a percent) | 0.84% | ' | 3.08% |
All Other Loans | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' |
Balance, at the beginning of the period | 32 | 38 | ' |
Provisions for loan losses | -6 | -5 | ' |
Balance, at the end of the period | 26 | 33 | ' |
Amount of allowance attributed to: | ' | ' | ' |
General portfolio allocation | 26 | ' | 32 |
Loans individually evaluated for impairment | 94 | ' | ' |
Loans collectively evaluated for impairment | 93 | ' | 332 |
General reserves to total loans collectively evaluated for impairment (as a percent) | 27.96% | ' | 9.64% |
Total gross loans | 187 | ' | 332 |
Total allowance to gross loans (as a percent) | 13.90% | ' | 9.64% |
Unallocated | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' |
Provisions for loan losses | 405 | 64 | ' |
Balance, at the end of the period | 405 | 64 | ' |
Amount of allowance attributed to: | ' | ' | ' |
General portfolio allocation | $405 | ' | $262 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Income Taxes | ' | ' | ' |
Income tax benefit (expense) | $1,074,000 | ($2,391,000) | ' |
Effective overall tax rate (as a percent) | 37.90% | 39.10% | ' |
Deferred tax assets | 32,398,000 | ' | 21,624,000 |
Deferred tax assets due to the MISN merger | $12,000,000 | ' | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Goodwill and Other Intangible Assets | ' | ' | ' |
Goodwill | $24,608 | ' | $11,237 |
Core deposit intangible | ' | ' | ' |
Amortization of CDI | 166 | 100 | ' |
Gross Carrying Amount | 9,261 | ' | 4,200 |
Acquired CDI's | 5,060 | ' | ' |
Accumulated Amortization | -3,023 | ' | ' |
Projected Net Carrying Amount | 6,238 | ' | ' |
Estimated Amortization | ' | ' | ' |
Year 2014 | -1,056 | ' | ' |
Year 2015 | -1,049 | ' | ' |
Year 2016 | -944 | ' | ' |
Year 2017 | -588 | ' | ' |
Year 2018 | -549 | ' | ' |
Year 2019 | -522 | ' | ' |
Year 2014 | ' | ' | ' |
Core deposit intangible | ' | ' | ' |
Projected Net Carrying Amount | 5,348 | ' | 1,344 |
Year 2015 | ' | ' | ' |
Core deposit intangible | ' | ' | ' |
Projected Net Carrying Amount | 4,299 | ' | 5,348 |
Year 2016 | ' | ' | ' |
Core deposit intangible | ' | ' | ' |
Projected Net Carrying Amount | 3,355 | ' | 4,299 |
Year 2017 | ' | ' | ' |
Core deposit intangible | ' | ' | ' |
Projected Net Carrying Amount | 2,767 | ' | 3,355 |
Year 2018 | ' | ' | ' |
Core deposit intangible | ' | ' | ' |
Projected Net Carrying Amount | 2,218 | ' | 2,767 |
Year 2019 | ' | ' | ' |
Core deposit intangible | ' | ' | ' |
Projected Net Carrying Amount | $1,696 | ' | $2,218 |
Other_Real_Estate_Owned_OREO_D
Other Real Estate Owned ("OREO") (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other Real Estate Owned ("OREO") | ' | ' |
Additions | $313 | $1,211 |
Disposals | ' | -1,211 |
Other Real Estate Owned, balance at the end of the period | 313 | ' |
Real Estate Secured | Residential 1 to 4 family | ' | ' |
Other Real Estate Owned ("OREO") | ' | ' |
Additions | 248 | ' |
Other Real Estate Owned, balance at the end of the period | 248 | ' |
Construction | Commercial | ' | ' |
Other Real Estate Owned ("OREO") | ' | ' |
Additions | ' | 1,211 |
Disposals | ' | -1,211 |
Construction | Tract | ' | ' |
Other Real Estate Owned ("OREO") | ' | ' |
Additions | 65 | ' |
Other Real Estate Owned, balance at the end of the period | $65 | ' |
Deposits_Details
Deposits (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits. | ' | ' |
Non-interest bearing deposits | $443,922 | $291,856 |
Interest bearing deposits: | ' | ' |
NOW accounts | 108,604 | 87,298 |
Money market deposit accounts | 422,728 | 332,272 |
Other savings deposits | 94,627 | 42,648 |
Time certificates of $100 or more | 203,323 | 148,525 |
Other time deposits | 92,625 | 71,296 |
Total deposits | $1,365,829 | $973,895 |
Capital_Details
Capital (Details) | Mar. 31, 2014 | Dec. 31, 2013 |
Leverage ratio | ' | ' |
Regulatory Standard, Well Capitalized Ratio (as a percent) | 5.00% | ' |
Actual regulatory, Leverage ratio (as a percent) | 11.64% | 10.20% |
Tier I capital to risk weighted assets | ' | ' |
Regulatory Standard, Well Capitalized Ratio (as a percent) | 6.00% | ' |
Actual regulatory, Tier I capital to risk weighted assets (as a percent) | 12.25% | 12.91% |
Total risk based capital to risk weighted assets | ' | ' |
Regulatory Standard, Well Capitalized Ratio (as a percent) | 10.00% | ' |
Actual regulatory, Total risk based capital to risk weighted assets (as a percent) | 13.50% | 14.17% |
Heritage Oaks Bank | ' | ' |
Leverage ratio | ' | ' |
Actual regulatory, Leverage ratio (as a percent) | 11.25% | 9.82% |
Tier I capital to risk weighted assets | ' | ' |
Actual regulatory, Tier I capital to risk weighted assets (as a percent) | 11.84% | 12.42% |
Total risk based capital to risk weighted assets | ' | ' |
Actual regulatory, Total risk based capital to risk weighted assets (as a percent) | 13.10% | 13.68% |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Share-Based Compensation Plans | ' | ' | ' |
Number of share-based employee compensation plans | 2 | ' | ' |
Summary of the expenses the Company has recognized related to share-based compensation | ' | ' | ' |
Share-based compensation expense | $247 | $134 | ' |
Unrecognized compensation expense | 1,878 | 1,223 | ' |
Stock option | ' | ' | ' |
Summary of the expenses the Company has recognized related to share-based compensation | ' | ' | ' |
Share-based compensation expense | 164 | 61 | ' |
Unrecognized compensation expense | 1,013 | 583 | ' |
Weighted-average period over which expense is expected to be recognized | '3 years | ' | ' |
Number of shares | ' | ' | ' |
Options outstanding, at the beginning of the period (in shares) | 562,257 | ' | ' |
Granted (in shares) | 164,576 | ' | ' |
Forfeited (in shares) | -52,885 | ' | ' |
Expired (in shares) | -2,604 | ' | ' |
Exercised (in shares) | -31,776 | ' | ' |
Options outstanding, at the end of the period (in shares) | 639,568 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' |
Options outstanding, at the beginning of the period (in dollars per share) | $6.34 | ' | ' |
Granted (in dollars per share) | $7.69 | ' | ' |
Forfeited (in dollars per share) | $8.54 | ' | ' |
Expired (in dollars per share) | $10.12 | ' | ' |
Exercised (in dollars per share) | $3.48 | ' | ' |
Options outstanding, at the end of the period (in dollars per share) | $6.62 | ' | ' |
Options Available for Grant (in shares) | 2,225,869 | ' | 1,593,616 |
Options vested or expected to vest | ' | ' | ' |
Shares | 608,252 | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $6.61 | ' | ' |
Weighted Average Remaining Contractual Life | '7 years 9 months 18 days | ' | ' |
Aggregate Intrinsic Value | 1,266,832 | ' | ' |
Options exercisable | ' | ' | ' |
Shares | 271,888 | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $6.59 | ' | ' |
Weighted Average Remaining Contractual Life | '6 years 25 days | ' | ' |
Aggregate Intrinsic Value | 775,559 | ' | ' |
Aggregate intrinsic value of options exercised | ' | ' | ' |
Aggregate intrinsic value of options exercised | 134 | ' | ' |
Assumptions used in the calculation of the weighted average fair value of options granted | ' | ' | ' |
Expected volatility (as a percent) | 54.00% | 55.30% | ' |
Expected term | '6 years | '6 years | ' |
Dividend yield (as a percent) | 0.00% | 0.00% | ' |
Risk free rate (as a percent) | 1.76% | 1.14% | ' |
Weighted-average grant date fair value (in dollars per share) | $3.99 | $3.01 | ' |
Restricted stock | ' | ' | ' |
Summary of the expenses the Company has recognized related to share-based compensation | ' | ' | ' |
Share-based compensation expense | 84 | 73 | ' |
Unrecognized compensation expense | $865 | $640 | ' |
Weighted-average period over which expense is expected to be recognized | '2 years 9 months 18 days | ' | ' |
Number of shares | ' | ' | ' |
Performance based grant (in shares) | 21,241 | ' | ' |
Number of Shares | ' | ' | ' |
Balance at the beginning of the period (in shares) | 195,048 | ' | ' |
Granted (in shares) | 58,394 | ' | ' |
Forfeited (in shares) | -25,862 | ' | ' |
Balance at the end of the period (in shares) | 227,580 | ' | ' |
Average Grant Date fair Value | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | $4.87 | ' | ' |
Granted (in dollars per share) | $7.66 | ' | ' |
Forfeited (in dollars per share) | $5.80 | ' | ' |
Balance at the end of the period (in dollars per share) | $5.48 | ' | ' |
Restricted stock | Minimum | 2005 Plan | ' | ' | ' |
Summary of the expenses the Company has recognized related to share-based compensation | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Restricted stock | Maximum | 2005 Plan | ' | ' | ' |
Summary of the expenses the Company has recognized related to share-based compensation | ' | ' | ' |
Vesting period | '5 years | ' | ' |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Mar. 12, 2010 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Jul. 17, 2013 | Mar. 12, 2010 | Mar. 31, 2014 | Aug. 07, 2013 |
Minimum | Series A senior preferred stock | Series C preferred stock | Series C preferred stock | Common Stock | ||||
series | ||||||||
Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | 5,000,000 | 5,000,000 | ' | ' | ' | ' | ' |
Number of series of preferred stock | ' | ' | ' | 1 | ' | ' | ' | ' |
Issuance of stock (in shares) | ' | ' | ' | ' | ' | 1,189,538 | ' | ' |
Repurchase price paid for warrant issued to U.S. Treasury under CPP | ' | ' | ' | ' | ' | ' | ' | $1.60 |
Repurchase of shares | ' | ' | ' | ' | 21,000 | ' | ' | ' |
Numbers of shares to be exchanged from warrants subject to Company's offer to repurchase | ' | ' | ' | ' | 611,650 | ' | ' | ' |
Amount of shares repurchased, including accrued but unpaid dividends | ' | ' | ' | ' | 21.2 | ' | ' | ' |
Gross proceeds from private placement | 60 | ' | ' | ' | ' | 3.6 | ' | ' |
Preferred stock conversion ratio | ' | ' | ' | ' | ' | ' | 1 | ' |
Stated dividend rate (as a percent) | ' | ' | ' | ' | ' | ' | 0.00% | ' |
Conversion price (in dollars per share) | ' | ' | ' | ' | ' | ' | $3.25 | ' |
Value of contingent beneficial conversion feature to be recognized upon conversion | ' | ' | ' | ' | ' | ' | $0.20 | ' |
Earnings_Loss_Per_Share_Detail
Earnings (Loss) Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Calculation of both basic and diluted earnings (loss) per common share | ' | ' |
Net (loss) income | ($1,763) | $3,730 |
Dividends and accretion on preferred stock | ' | -358 |
Net (loss) income available to common shareholders | ($1,763) | $3,372 |
Weighted average shares outstanding | 27,816,911 | 26,301,542 |
Basic (loss) earnings per common share (in dollars per share) | ($0.06) | $0.13 |
Dilutive effect of share-based compensation awards and common stock warrants (in shares) | ' | 225,915 |
Weighted average diluted shares outstanding | 27,816,911 | 26,527,457 |
Diluted (loss) earnings per common share (in dollars per share) | ($0.06) | $0.13 |
Stock options | ' | ' |
Shares excluded from the calculation of diluted earnings per share | ' | ' |
Shares excluded from the calculation of diluted earnings per share | 442,000 | 325,000 |
Restructuring_Activities_Detai
Restructuring Activities (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Restructuring activities | ' |
Total Costs Expected To Be incurred | $700 |
Restructuring and integration plan | ' |
Restructuring activities | ' |
Total Costs Expected To Be incurred | 9,791 |
Amount Incurred | 6,871 |
Cumulative Incurred | 6,913 |
Restructuring and integration plan | System integration | ' |
Restructuring activities | ' |
Total Costs Expected To Be incurred | 1,020 |
Amount Incurred | 223 |
Cumulative Incurred | 223 |
Restructuring and integration plan | Fixed asset consolidation | ' |
Restructuring activities | ' |
Total Costs Expected To Be incurred | 3,072 |
Amount Incurred | 2,351 |
Cumulative Incurred | 2,393 |
Restructuring and integration plan | Contract cancellation costs | ' |
Restructuring activities | ' |
Total Costs Expected To Be incurred | 1,944 |
Amount Incurred | 1,656 |
Cumulative Incurred | 1,656 |
Restructuring and integration plan | Employee termination and retention | ' |
Restructuring activities | ' |
Total Costs Expected To Be incurred | 3,755 |
Amount Incurred | 2,641 |
Cumulative Incurred | $2,641 |