Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 24, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'HERITAGE OAKS BANCORP | ' |
Entity Central Index Key | '0000921547 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-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 | ' | 33,094,717 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $14,993 | $11,336 |
Interest earning deposits in other banks | 35,834 | 14,902 |
Total cash and cash equivalents | 50,827 | 26,238 |
Investment securities available for sale, at fair value | 382,437 | 276,795 |
Loans held for sale, at lower of cost or fair value | 5,977 | 2,386 |
Gross loans | 1,151,576 | 827,484 |
Net deferred loan fees | -1,414 | -1,281 |
Allowance for loan and lease losses | -16,787 | -17,859 |
Net loans held for investment | 1,133,375 | 808,344 |
Premises and equipment, net | 36,937 | 24,220 |
Premises and equipment held for sale | 2,070 | ' |
Deferred tax assets, net | 27,914 | 21,624 |
Bank-owned life insurance | 24,549 | 15,826 |
Federal Home Loan Bank stock | 7,853 | 4,739 |
Goodwill | 24,536 | 11,237 |
Other intangible assets | 5,644 | 1,344 |
Other assets | 14,105 | 10,898 |
Total assets | 1,716,224 | 1,203,651 |
Liabilities | ' | ' |
Non-interest bearing deposits | 469,435 | 291,856 |
Interest bearing deposits | 953,499 | 682,039 |
Total deposits | 1,422,934 | 973,895 |
Short term FHLB borrowing | 10,000 | 29,000 |
Long term FHLB borrowing | 65,562 | 59,500 |
Junior subordinated debentures | 13,179 | 8,248 |
Other liabilities | 10,430 | 6,581 |
Total liabilities | 1,522,105 | 1,077,224 |
Shareholders' equity | ' | ' |
Common stock, no par value; authorized: 100,000,000 shares; issued and outstanding: 33,082,205 shares and 25,397,780 shares as of September 30, 2014 and December 31, 2013, respectively | 161,924 | 101,511 |
Additional paid in capital | 6,382 | 6,020 |
Retained earnings | 22,303 | 18,717 |
Accumulated other comprehensive loss, net of tax benefit of ($69) and ($2,395) as of September 30, 2014 and December 31, 2013, respectively | -94 | -3,425 |
Total shareholders' equity | 194,119 | 126,427 |
Total liabilities and shareholders' equity | 1,716,224 | 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 September 30, 2014 and December 31, 2013 | $3,604 | $3,604 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 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 | 33,082,205 | 25,397,780 |
Common stock, shares outstanding | 33,082,205 | 25,397,780 |
Accumulated other comprehensive loss, tax benefit (in dollars) | $69 | ($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_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Interest Income | ' | ' | ' | ' |
Loans, including fees | $14,745 | $10,064 | $41,134 | $29,448 |
Investment securities | 1,946 | 1,347 | 5,355 | 3,993 |
Other interest-earning assets | 204 | 98 | 535 | 216 |
Total interest income | 16,895 | 11,509 | 47,024 | 33,657 |
Interest Expense | ' | ' | ' | ' |
Deposits | 918 | 731 | 2,661 | 2,101 |
Other borrowings | 406 | 296 | 1,158 | 717 |
Total interest expense | 1,324 | 1,027 | 3,819 | 2,818 |
Net interest income before provision for loan losses | 15,571 | 10,482 | 43,205 | 30,839 |
Net interest income after provision for loan and lease losses | 15,571 | 10,482 | 43,205 | 30,839 |
Non-Interest Income | ' | ' | ' | ' |
Fees and service charges | 1,410 | 1,195 | 3,949 | 3,330 |
Net gain on sale of mortgage loans | 411 | 513 | 967 | 1,949 |
Other mortgage fee income | 64 | 143 | 223 | 570 |
Gain on sale of investment securities | 450 | 344 | 549 | 3,935 |
Other income | 647 | 228 | 1,533 | 1,212 |
Total non-interest income | 2,982 | 2,423 | 7,221 | 10,996 |
Non-Interest Expense | ' | ' | ' | ' |
Salaries and employee benefits | 6,164 | 4,529 | 18,121 | 14,535 |
Occupancy and equipment | 1,776 | 1,176 | 4,989 | 3,629 |
Information technology | 756 | 658 | 2,403 | 1,925 |
Professional services | 1,839 | 729 | 3,610 | 2,082 |
Regulatory assessments | 351 | 212 | 862 | 851 |
Sales and marketing | 232 | 170 | 595 | 438 |
Foreclosed asset costs and write-downs | 55 | 23 | 182 | 131 |
Provision for mortgage loan repurchases | 27 | ' | 27 | 570 |
Amortization of intangible assets | 297 | 100 | 760 | 300 |
Merger, restructure, and integration | 748 | ' | 8,785 | ' |
Other expense | 1,137 | 954 | 3,073 | 2,478 |
Total non-interest expense | 13,382 | 8,551 | 43,407 | 26,939 |
Income before income taxes | 5,171 | 4,354 | 7,019 | 14,896 |
Income tax expense | 1,742 | 1,593 | 2,406 | 5,689 |
Net income | 3,429 | 2,761 | 4,613 | 9,207 |
Dividends and accretion on preferred stock | ' | 181 | ' | 898 |
Net income available to common shareholders | $3,429 | $2,580 | $4,613 | $8,309 |
Earnings Per Common Share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.10 | $0.10 | $0.14 | $0.32 |
Diluted (in dollars per share) | $0.10 | $0.10 | $0.14 | $0.31 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Consolidated Statements of Comprehensive Income | ' | ' | ' | ' |
Net income | $3,429 | $2,761 | $4,613 | $9,207 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Unrealized holding gains (losses) on securities arising during the period | 983 | -1,959 | 6,206 | -7,685 |
Reclassification for net (gains) on investments included in net income | -450 | -344 | -549 | -3,935 |
Other comprehensive income (loss), before income tax expense (benefit) | 533 | -2,303 | 5,657 | -11,620 |
Income tax expense (benefit) related to items of other comprehensive income | 217 | -947 | 2,326 | -4,782 |
Other comprehensive income (loss) | 316 | -1,356 | 3,331 | -6,838 |
Comprehensive income | $3,745 | $1,405 | $7,944 | $2,369 |
Condensed_Consolidated_Stateme2
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 | 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of preferred stock | -21,000 | -20,725 | ' | -275 | ' | ' | ' | ' | ' |
Repurchase of warrants | -1,575 | ' | ' | -1,575 | ' | ' | ' | ' | ' |
Accretion on Series A preferred stock discount | ' | ' | ' | ' | ' | ' | ' | 189 | -189 |
Dividends declared on series A preferred stock | ' | ' | ' | ' | ' | ' | -708 | ' | -708 |
Exercise of stock options | 78 | ' | 78 | ' | ' | ' | ' | ' | ' |
Exercise of stock options (in shares) | ' | ' | 20,339 | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | 392 | ' | ' | 392 | ' | ' | ' | ' | ' |
Issuance of restricted share awards (in shares) | ' | ' | 72,786 | ' | ' | ' | ' | ' | ' |
Forfeiture of restricted share awards | 7 | ' | 7 | ' | ' | ' | ' | ' | ' |
Forfeiture of restricted share awards (in shares) | ' | ' | -8,892 | ' | ' | ' | ' | ' | ' |
Net income | 9,207 | ' | ' | ' | 9,207 | ' | ' | ' | ' |
Other comprehensive income (loss) | -6,838 | ' | ' | ' | ' | -6,838 | ' | ' | ' |
Balance at Sep. 30, 2013 | 125,092 | 3,604 | 101,439 | 5,879 | 17,083 | -2,913 | ' | ' | ' |
Balance (in shares) at Sep. 30, 2013 | ' | ' | 25,391,343 | ' | ' | ' | ' | ' | ' |
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 | -381 | ' | ' | -381 | ' | ' | ' | ' | ' |
Dividends declared ($0.03 per share) | -1,027 | ' | ' | ' | -1,027 | ' | ' | ' | ' |
Exercise of stock options | 158 | ' | 158 | ' | ' | ' | ' | ' | ' |
Exercise of stock options (in shares) | ' | ' | 44,217 | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | 723 | ' | ' | 723 | ' | ' | ' | ' | ' |
Tax impact of share-based compensation expense | 20 | ' | ' | 20 | ' | ' | ' | ' | ' |
Issuance of restricted share awards (in shares) | ' | ' | 124,744 | ' | ' | ' | ' | ' | ' |
Forfeiture of restricted share awards (in shares) | ' | ' | -25,862 | ' | ' | ' | ' | ' | ' |
Net income | 4,613 | ' | ' | ' | 4,613 | ' | ' | ' | ' |
Other comprehensive income (loss) | 3,331 | ' | ' | ' | ' | 3,331 | ' | ' | ' |
Balance at Sep. 30, 2014 | $194,119 | $3,604 | $161,924 | $6,382 | $22,303 | ($94) | ' | ' | ' |
Balance (in shares) at Sep. 30, 2014 | ' | ' | 33,082,205 | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Condensed Consolidated Statements of Shareholders' Equity | ' |
Dividends declared on common stock (in dollars per share) | $0.03 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $4,613 | $9,207 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,394 | 1,050 |
Write-downs on premises and equipment held for sale | 988 | ' |
Amortization of premiums / discounts on investment securities, net | 3,499 | 3,110 |
Amortization of intangible assets | 760 | 300 |
Accretion of discount on purchased loans | -1,791 | ' |
Amortization of premium on junior subordinated debentures | 118 | ' |
Share-based compensation expense | 723 | 392 |
Gain on sale of available for sale securities | -549 | -3,935 |
Originations of loans held for sale | -62,385 | -120,520 |
Proceeds from sale of loans held for sale | 58,794 | 137,606 |
Net increase in bank owned life insurance | -460 | -361 |
Decrease in deferred tax asset | 3,269 | 5,354 |
Excess tax benefit from exercise of stock options | -20 | ' |
Increase in other assets and other liabilities | 1,206 | 434 |
Net cash provided by operating activities | 10,159 | 32,637 |
Cash flows from investing activities: | ' | ' |
Net cash and cash equivalents acquired in MISN merger | 28,891 | ' |
Purchase of securities, available for sale | -155,956 | -170,063 |
Sale of securities, available for sale | 98,379 | 144,027 |
Maturities and calls of securities, available for sale | ' | 544 |
Proceeds from principal paydowns of securities, available for sale | 30,799 | 35,200 |
Proceeds from the sale of premises and equipment held for sale | 3,594 | ' |
Purchase of FHLB stock | -941 | -164 |
Increase in loans, net | -44,855 | -90,254 |
Allowance for loan loss recoveries | 705 | 1,201 |
Purchase of property, premises and equipment, net | -5,122 | -9,223 |
Proceeds from sale of foreclosed collateral | 1,628 | 1,374 |
Net cash used in investing activities | -42,878 | -87,358 |
Cash flows from financing activities: | ' | ' |
Increase in deposits, net | 77,538 | 86,082 |
Proceeds from Federal Home Loan Bank borrowing | 25,000 | 183,500 |
Repayments of Federal Home Loan Bank borrowing | -44,000 | -192,500 |
Proceeds from exercise of stock options including tax benefits | 178 | 85 |
Stock issuance costs | -381 | ' |
Dividends declared | -1,027 | ' |
Dividends on Series A preferred stock | ' | -708 |
Retirement of Series A preferred stock and related warrants | ' | -22,575 |
Net cash provided by financing activities | 57,308 | 53,884 |
Net increase / (decrease) in cash and cash equivalents | 24,589 | -837 |
Cash and cash equivalents, beginning of period | 26,238 | 34,116 |
Cash and cash equivalents, end of period | 50,827 | 33,279 |
Cash Flow Information | ' | ' |
Interest paid | 3,631 | 2,791 |
Income taxes paid | 600 | 2,100 |
Non-Cash Flow Information | ' | ' |
Change in unrealized gain on available for sale securities | 5,657 | -11,620 |
Loans transferred to foreclosed collateral | 1,564 | 1,374 |
Land and buildings transferred to held for sale | 1,730 | ' |
Accretion of preferred stock discount | ' | $189 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | ' |
Note 1. Summary of Significant Accounting Policies | |
Description of Business | |
Heritage Oaks Bancorp (“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. 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. Bancorp and subsidiaries are collectively referred to herein as the “Company.” 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 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 with the Securities and Exchange Commission on March 4, 2014; file number 000-25020. | |
The consolidated financial statements include the accounts of Bancorp and its wholly-owned financial subsidiary, Heritage Oaks Bank. All significant inter-company balances and transactions have been eliminated. 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. 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 and nine months ended September 30, 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 11. | |
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 for evidence of deterioration in credit quality since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. Such loans are classified as purchased credit impaired loans (“PCI loans”), while all other acquired loans are classified as non-impaired. | |
The Company has elected to account for purchased credit impaired loans on an individual loan level. The Company estimates the amount and timing of expected cash flows for each loan, and the expected cash flow in excess of the loan’s fair value is referred to as the accretable yield, and is recorded as interest income over the remaining life of the loan. The excess of the loan’s contractual principal and interest over expected cash flows is referred to as the non-accretable difference, and is not recorded in the Company’s financial statements. | |
Quarterly, management performs an evaluation of expected future cash flows for PCI loans. If current expectations of future cash flows are less than management’s previous expectations, an ALLL is recorded with a charge to current period earnings through provision for loan losses. If there has been a probable and significant increase in expected future cash flows over that which was previously expected, the Company would first reduce any previously established ALLL, and then record an adjustment to interest income through an increase in the accretable yield. | |
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 | |
In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-14 Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40), Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. This update addresses classification of government-guaranteed mortgage loans, including those where guarantees are offered by the Federal Housing Administration (“FHA”), the U.S. Department of Housing and Urban Development (“HUD”), and the U.S. Department of Veterans Affairs (“VA”). Although current accounting guidance stipulates proper measurement and classification in situations where a creditor obtains from a debtor, assets in satisfaction of a receivable (such as through foreclosure), current guidance does not specify how to measure and classify foreclosed mortgage loans that are government-guaranteed. Under the provisions of this update, a creditor would derecognize a mortgage loan that has been foreclosed upon, and recognize a separate receivable if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, (3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The amendments within this update are effective for annual and interim periods beginning after December 15, 2014. The Company does not believe the adoption of this update will have a material impact of the Company’s consolidated financial statements. | |
In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). This update requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The following steps are applied in the updated guidance: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. The amendments within this update are effective for the quarter ending March 31, 2017. The Company is currently in the process of evaluating the impact of the adoption of this update, but does not expect a material impact on the Company’s consolidated financial statements. | |
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 | 9 Months Ended | ||||||||||||||||
Sep. 30, 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 $8.7 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 was 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 company. The Company also believes it now has a banking platform that is well positioned for future growth, both organically and through acquisitions. | |||||||||||||||||
The acquired assets and liabilities assumed 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 liabilities assumed: | |||||||||||||||||
February 28, 2014 | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Assets acquired | |||||||||||||||||
Cash and due from banks | $ | 3,212 | |||||||||||||||
Interest earning deposits in other banks | 34,386 | ||||||||||||||||
Securities available for sale | 76,159 | ||||||||||||||||
Loans held for sale | 338 | ||||||||||||||||
Loans and leases receivable | 280,316 | ||||||||||||||||
Premises and equipment | 15,922 | ||||||||||||||||
Deferred tax assets, net | 11,885 | ||||||||||||||||
Goodwill | 13,299 | ||||||||||||||||
Core deposit intangible asset | 5,060 | ||||||||||||||||
Bank owned life insurance | 8,263 | ||||||||||||||||
Other assets | 4,895 | ||||||||||||||||
Total assets acquired | $ | 453,735 | |||||||||||||||
Liabilities assumed | |||||||||||||||||
Deposits | $ | 371,501 | |||||||||||||||
Advances from Federal Home Loan Bank | 6,071 | ||||||||||||||||
Junior subordinated debentures | 4,804 | ||||||||||||||||
Other liabilities | 2,397 | ||||||||||||||||
Total liabilities assumed | $ | 384,773 | |||||||||||||||
Total consideration paid | $ | 68,962 | |||||||||||||||
The fair value of net assets acquired includes fair value adjustments to certain loans that were not considered impaired as of the acquisition date, since they have not exhibited evidence of deterioration in credit quality since origination, and have been classified as non-PCI loans. The fair value adjustments were determined using discounted contractual cash flows, adjusted for expected losses and prepayments, where appropriate. Non-PCI loans acquired as of the acquisition date had a fair value and gross contractual payments receivable of $267.3 million and $328.2 million, respectively. As of the acquisition date, contractual cash flows not expected to be collected on these non-PCI loans totaled $5.4 million, which has been recorded as the credit risk component of the purchase discount, and which represented 2.0% of their gross outstanding principal balances. | |||||||||||||||||
Goodwill of $13.3 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 more accurate or appropriate values for the assets acquired and liabilities assumed, which may be reflective of conditions or events that existed at the acquisition date. The fair value of $280.7 million of loans and leases receivable, $15.9 million of premises and equipment (including $3.5 million of premises and equipment held for sale), $11.9 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. 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,(See also Note 6. Income Taxes). 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’s operations through February 28, 2014. Such adjustments would be reflected as additional liabilities as of the acquisition date, with a corresponding increase to goodwill. | |||||||||||||||||
The following table summarizes the consideration paid for MISN: | |||||||||||||||||
February 28, 2014 | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
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. | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(dollars in thousands except per share data) | |||||||||||||||||
Net interest income | $ | 15,395 | $ | 14,989 | $ | 45,761 | $ | 44,198 | |||||||||
Provision for loan and lease losses | - | 210 | - | 310 | |||||||||||||
Noninterest income | 2,982 | 2,295 | 7,835 | 12,499 | |||||||||||||
Noninterest expense | 13,384 | 12,898 | 46,844 | 40,127 | |||||||||||||
Income before income taxes | 4,993 | 4,176 | 6,752 | 16,260 | |||||||||||||
Income tax expense | 1,682 | 1,528 | 2,315 | 6,210 | |||||||||||||
Net income | $ | 3,311 | $ | 2,648 | $ | 4,437 | $ | 10,050 | |||||||||
Earnings Per Common Share | |||||||||||||||||
Basic | $ | 0.1 | $ | 0.1 | $ | 0.13 | $ | 0.3 | |||||||||
Diluted | $ | 0.1 | $ | 0.1 | $ | 0.13 | $ | 0.29 | |||||||||
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities | 9 Months Ended | |||||||||||||||||
Sep. 30, 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: | ||||||||||||||||||
As of | Fair Value Measurements Using | |||||||||||||||||
September 30, | Quoted Prices in | Significant Other | Significant | |||||||||||||||
2014 | Active Markets for | Observable | Unobservable | |||||||||||||||
Assets At | Identical Assets | Inputs | Inputs | |||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Assets | ||||||||||||||||||
Obligations of U.S. government agencies | $ | 16,891 | $ | - | $ | 16,891 | $ | - | ||||||||||
Mortgage backed securities | ||||||||||||||||||
U.S government sponsored entities and agencies | 241,130 | - | 241,130 | - | ||||||||||||||
Non-agency | 11,936 | - | 11,936 | - | ||||||||||||||
State and municipal securities | 80,687 | - | 80,687 | - | ||||||||||||||
Asset backed securities | 31,793 | - | 31,793 | - | ||||||||||||||
Total assets measured on a recurring basis | $ | 382,437 | $ | - | $ | 382,437 | $ | - | ||||||||||
As of | Fair Value Measurements Using | |||||||||||||||||
December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||||
2013 | Active Markets for | Observable | Unobservable | |||||||||||||||
Assets At | Identical Assets | Inputs | Inputs | |||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Assets | ||||||||||||||||||
Obligations of U.S. government agencies | $ | 6,208 | $ | - | $ | 6,208 | $ | - | ||||||||||
Mortgage backed securities | ||||||||||||||||||
U.S government sponsored entities and agencies | 182,931 | - | 182,931 | - | ||||||||||||||
Non-agency | 11,032 | - | 11,032 | - | ||||||||||||||
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 | $ | - | ||||||||||
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. Impaired loans disclosed in the table below represent loans for which fair value was determined using the fair market value of the collateral, less estimated costs to sell. 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. Therefore, impaired loans disclosed in the table below do not include loans where fair value was measured using a discounted cash flow approach. | ||||||||||||||||||
The following tables provide a summary of assets the Company measures at fair value on a non-recurring basis: | ||||||||||||||||||
As of | Fair Value Measurements Using | |||||||||||||||||
September 30, | Quoted Prices in | Significant Other | Significant | |||||||||||||||
2014 | Active Markets for | Observable | Unobservable | Year To | ||||||||||||||
Assets At | Identical Assets | Inputs | Inputs | Date Losses/ | ||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | (Recoveries) | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Assets | ||||||||||||||||||
Impaired loans | ||||||||||||||||||
Commercial real estate | $ | 1,325 | $ | - | $ | - | $ | 1,325 | $ | 1,026 | ||||||||
Land | 4,170 | - | - | 4,170 | (793 | ) | ||||||||||||
Total assets measured on a non-recurring basis | $ | 5,495 | $ | - | $ | - | $ | 5,495 | $ | 233 | ||||||||
As of | Fair Value Measurements Using | |||||||||||||||||
December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||||
2013 | Active Markets for | Observable | Unobservable | Year To | ||||||||||||||
Assets At | Identical Assets | Inputs | Inputs | Date Losses/ | ||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | (Recoveries) | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Assets | ||||||||||||||||||
Impaired loans | ||||||||||||||||||
Land | $ | 4,170 | $ | - | $ | - | $ | 4,170 | $ | (1,270 | ) | |||||||
Total assets measured on a non-recurring basis | $ | 4,170 | $ | - | $ | - | $ | 4,170 | $ | (1,270 | ) | |||||||
Premises and equipment held for sale valued at $1.7 million and impaired commercial real estate loans valued at $1.7 million were transferred into non-recurring Level 3 assets during the nine months ended September 30, 2014. Transfers out of non-recurring level three assets during the nine months ended September 30, 2014 totaled $2.1 million, and related to the sale of premises and equipment held for sale. | ||||||||||||||||||
There were no transfers into or out of Level 1 or Level 2 assets reported at fair value on either a recurring or non-recurring basis during the nine months ended September 30, 2014 and 2013. | ||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||
The following table provides a summary of the estimated fair value of financial instruments: | ||||||||||||||||||
As of | Fair Value Measurements Using | |||||||||||||||||
September 30, | Quoted Prices in | Significant Other | Significant | |||||||||||||||
2014 | Active Markets for | Observable | Unobservable | |||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | |||||||||||||||
Amount | (Level 1) | (Level 2) | (Level 3) | Fair Value | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Assets | ||||||||||||||||||
Cash and cash equivalents | $ | 50,827 | $ | 50,827 | $ | - | $ | - | $ | 50,827 | ||||||||
Investment securities available for sale | 382,437 | - | 382,437 | - | 382,437 | |||||||||||||
Federal Home Loan Bank stock | 7,853 | - | - | - | N/A | |||||||||||||
Loans receivable, net of deferred fees and costs | 1,150,162 | - | - | 1,155,003 | 1,155,003 | |||||||||||||
Loans held for sale | 5,977 | - | 5,977 | - | 5,977 | |||||||||||||
Accrued interest receivable | 5,376 | - | 1,735 | 3,641 | 5,376 | |||||||||||||
Liabilities | ||||||||||||||||||
Non-interest bearing deposits | 469,435 | 469,435 | - | - | 469,435 | |||||||||||||
Interest bearing deposits | 953,499 | - | 956,269 | - | 956,269 | |||||||||||||
Federal Home Loan Bank advances | 75,562 | - | 75,586 | - | 75,586 | |||||||||||||
Junior subordinated debentures | 13,179 | - | - | 9,867 | 9,867 | |||||||||||||
Accrued interest payable | 426 | - | 426 | - | 426 | |||||||||||||
As of | Fair Value Measurements Using | |||||||||||||||||
December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||||
2013 | Active Markets for | Observable | Unobservable | |||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | |||||||||||||||
Amount | (Level 1) | (Level 2) | (Level 3) | Fair Value | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||
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: | ||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||
Notional | Cost to Cede | Notional | Cost to Cede | |||||||||||||||
Amount | or Assume | Amount | or Assume | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Off-balance sheet instruments, commitments to extend credit and standby letters of credit | $ | 254,590 | $ | 2,546 | $ | 198,481 | $ | 1,985 | ||||||||||
Investment_Securities
Investment Securities | 9 Months Ended | |||||||||||||||||||
Sep. 30, 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: | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | Unrealized | Unrealized | ||||||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 16,923 | $ | 87 | $ | (119 | ) | $ | 16,891 | |||||||||||
Mortgage backed securities | ||||||||||||||||||||
U.S. government sponsored entities and agencies | 242,947 | 989 | (2,806 | ) | 241,130 | |||||||||||||||
Non-agency | 11,913 | 41 | (18 | ) | 11,936 | |||||||||||||||
State and municipal securities | 78,829 | 2,033 | (175 | ) | 80,687 | |||||||||||||||
Asset backed securities | 31,988 | - | (195 | ) | 31,793 | |||||||||||||||
Total available for sale securities | $ | 382,600 | $ | 3,150 | $ | (3,313 | ) | $ | 382,437 | |||||||||||
December 31, 2013 | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | Unrealized | Unrealized | ||||||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
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 available for sale securities | $ | 282,615 | $ | 778 | $ | (6,598 | ) | $ | 276,795 | |||||||||||
The following table provides a summary of investment securities in an unrealized loss position: | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Less Than Twelve Months | Twelve Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Value | Loss | Value | Loss | Value | Loss | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 3,780 | $ | -58 | $ | 2,639 | $ | -61 | $ | 6,419 | $ | (119 | ) | |||||||
Mortgage backed securities | ||||||||||||||||||||
U.S. government sponsored entities and agencies | 82,816 | -977 | 59,407 | -1,829 | 142,223 | (2,806 | ) | |||||||||||||
Non-agency | 3,001 | -8 | 501 | -10 | 3,502 | (18 | ) | |||||||||||||
State and municipal securities | 9,344 | -64 | 10,861 | -111 | 20,205 | (175 | ) | |||||||||||||
Asset backed securities | 5,558 | -29 | 17,364 | -166 | 22,922 | (195 | ) | |||||||||||||
Total | $ | 104,499 | $ | -1,136 | $ | 90,772 | $ | -2,177 | $ | 195,271 | $ | (3,313 | ) | |||||||
December 31, 2013 | ||||||||||||||||||||
Less Than Twelve Months | Twelve Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Value | Loss | Value | Loss | Value | Loss | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
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 83 securities were in an unrealized loss position as of September 30, 2014, and 96 as of December 31, 2013. As of September 30, 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 in value. As of September 30, 2014, the Company does not believe unrealized losses related to any of its securities are other than temporary. | ||||||||||||||||||||
Other than Temporary Impairment (“OTTI”) | ||||||||||||||||||||
At the end of the first quarter of 2013, the Company sold two private label mortgage backed securities in which OTTI losses had been recognized, as part of it’s repositioning of the longer duration portion of the investment portfolio, thereby eliminating all securities in the portfolio for which OTTI losses had been incurred. As of September 30, 2014, and December 31, 2013, there were no securities which management deemed to be other than temporarily impaired. | ||||||||||||||||||||
Sales of Available for Sale Securities | ||||||||||||||||||||
The proceeds from the sales and calls of securities and the associated gains and losses are listed below: | ||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Proceeds | $ | 19,991 | $ | 38,930 | $ | 98,379 | $ | 144,571 | ||||||||||||
Gross gains | 457 | 970 | 814 | 5,349 | ||||||||||||||||
Gross losses | (7 | ) | -626 | (265 | ) | (1,414 | ) | |||||||||||||
The income tax expense related to net realized gains on the sale of securities was $189 thousand and $145 thousand for the three months ended September 30, 2014 and 2013, respectively, and $231 thousand and $1.7 million for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||||||||
Maturities of Available for Sale Securities | ||||||||||||||||||||
The amortized cost and fair value maturities of available for sale investment securities at September 30, 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 the individual borrowers who are party to the loans underlying these securities have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
One Year Or | Over 1 | Over 5 Years | Over 10 Years | Total | ||||||||||||||||
Less | Through 5 | Through 10 | ||||||||||||||||||
Years | Years | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 117 | $ | 476 | $ | 14,503 | $ | 1,795 | $ | 16,891 | ||||||||||
Mortgage backed securities | ||||||||||||||||||||
U.S. government sponsored entities and agencies | 36,510 | 96,446 | 56,776 | 51,398 | 241,130 | |||||||||||||||
Non-agency | 731 | 10,704 | 501 | - | 11,936 | |||||||||||||||
State and municipal securities | 975 | 14,473 | 60,808 | 4,431 | 80,687 | |||||||||||||||
Asset backed securities | - | 2,534 | 11,794 | 17,465 | 31,793 | |||||||||||||||
Total available for sale securities | $ | 38,333 | $ | 124,633 | $ | 144,382 | $ | 75,089 | $ | 382,437 | ||||||||||
Amortized cost | $ | 38,459 | $ | 124,890 | $ | 143,476 | $ | 75,775 | $ | 382,600 | ||||||||||
Weighted average yield | 1.92% | 2.00% | 2.52% | 2.76% | 2.34% | |||||||||||||||
Securities having an amortized cost and a fair value of $70.7 million and $70.9 million, respectively, at September 30, 2014, and $41.9 million and $40.4 million, respectively, at December 31, 2013 were pledged to secure public deposits. As of September 30, 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 | For The Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Taxable earnings on investment securities | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 112 | $ | 33 | $ | 226 | $ | 86 | ||||||||||||
Mortgage backed securities | 1,152 | 847 | 3,370 | 2,470 | ||||||||||||||||
State and municipal securities | 38 | - | 40 | 5 | ||||||||||||||||
Corporate debt securities | - | - | 6 | - | ||||||||||||||||
Asset backed securities | 99 | 113 | 261 | 350 | ||||||||||||||||
Non-taxable earnings on investment securities | ||||||||||||||||||||
State and municipal securities | 545 | 354 | 1,452 | 1,082 | ||||||||||||||||
Total | $ | 1,946 | $ | 1,347 | $ | 5,355 | $ | 3,993 | ||||||||||||
Loans_and_Allowance_for_Loan_a
Loans and Allowance for Loan and Lease Losses | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Loans and Allowance for Loan and Lease Losses | ' | ||||||||||||||||||||||
Loans and Allowance for Loan and Lease Losses | ' | ||||||||||||||||||||||
Note 5. Loans and Allowance for Loan and Lease Losses | |||||||||||||||||||||||
The following table provides a summary of outstanding loan balances: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
September 30, 2014 | 2013 | ||||||||||||||||||||||
Non-PCI | PCI | Total Loans | Non-PCI | ||||||||||||||||||||
Loans | Loans | Receivable | Loans | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Multi-family residential | $ | 76,821 | $ | - | $ | 76,821 | $ | 31,140 | |||||||||||||||
Residential 1 to 4 family | 120,500 | 561 | 121,061 | 88,904 | |||||||||||||||||||
Home equity lines of credit | 37,886 | 81 | 37,967 | 31,178 | |||||||||||||||||||
Commercial | 577,639 | 4,961 | 582,600 | 432,203 | |||||||||||||||||||
Farmland | 92,292 | 1,673 | 93,965 | 50,414 | |||||||||||||||||||
Land | 23,763 | 871 | 24,634 | 24,523 | |||||||||||||||||||
Construction | 17,845 | - | 17,845 | 13,699 | |||||||||||||||||||
Total real estate secured | 946,746 | 8,147 | 954,893 | 672,061 | |||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 142,076 | 1,785 | 143,861 | 119,121 | |||||||||||||||||||
Agriculture | 42,787 | 1,417 | 44,204 | 32,686 | |||||||||||||||||||
Other | 20 | - | 20 | 38 | |||||||||||||||||||
Total commercial | 184,883 | 3,202 | 188,085 | 151,845 | |||||||||||||||||||
Installment loans to individuals | 8,198 | - | 8,198 | 3,246 | |||||||||||||||||||
Overdrafts | 400 | - | 400 | 332 | |||||||||||||||||||
Total gross loans held for investment | 1,140,227 | 11,349 | 1,151,576 | 827,484 | |||||||||||||||||||
Net deferred loan fees | (1,414 | ) | - | (1,414 | ) | (1,281 | ) | ||||||||||||||||
Allowance for loan and lease losses | (16,787 | ) | - | (16,787 | ) | (17,859 | ) | ||||||||||||||||
Total net loans held for investment | $ | 1,122,026 | $ | 11,349 | $ | 1,133,375 | $ | 808,344 | |||||||||||||||
Loans held for sale | $ | 5,977 | $ | - | $ | 5,977 | $ | 2,386 | |||||||||||||||
Total net loans in the table above include $280.3 million of loans acquired through the MISN acquisition at fair value on the acquisition date. $267.5 million of these loans were acquired with no impairment while the remaining $12.8 million were determined to be 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 a blanket lien to the Federal Home Loan Bank (“FHLB”), the Bank has pledged $816.6 million in loans to secure a credit facility totaling $417.8 million, of which $75.6 million is outstanding as of September 30, 2014. Of this credit facility, $11.5 million is available as a line of credit and $340.9 million is available for potential future borrowings. The Bank also has a collateralized borrowing line with the Federal Reserve Bank secured by $12.3 million of loans as of September 30, 2014. | |||||||||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||||||
The Company held loans that were collateralized by various forms of real estate totaling $954.9 million and $672.1 million at September 30, 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, or the impact of the current California drought on our real estate collateralized loans, 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 $46.9 million at September 30, 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 September 30, 2014 and December 31, 2013, the unpaid principal balance of SBA loans serviced for others totaled $16.1 million and $6.6 million, respectively. The Company recognized $16 thousand and $43 thousand in gains from the sale of SBA loans during the three and nine months ended September 30, 2014. Gains on the sale of SBA loans during the three and nine months ended September 30, 2013 totaled $4 thousand and $0.4 million, respectively. | |||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||
The following tables provide a summary of the Company’s recorded investment in non-PCI and PCI impaired loans as of and for the three and nine months ended September 30, 2014: | |||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
September 30, 2014 | September 30, 2014 | September 30, 2014 | |||||||||||||||||||||
Unpaid | Specific | Average | Interest | Average | Interest | ||||||||||||||||||
Recorded | Principal | Allowance for | Recorded | Income | Recorded | Income | |||||||||||||||||
Investment (1) | Balance | Impaired Loans | Investment (1) | Recognized | Investment (1) | Recognized | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI loans | |||||||||||||||||||||||
Without related allowance | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | $ | 217 | $ | 354 | $ | - | $ | 222 | $ | 6 | $ | 496 | $ | 16 | |||||||||
Home equity lines of credit | 100 | 183 | - | 100 | - | 100 | - | ||||||||||||||||
Commercial | 2,014 | 4,423 | - | 2,269 | 6 | 1,862 | 19 | ||||||||||||||||
Farmland | 289 | 288 | - | 292 | 2 | 294 | 12 | ||||||||||||||||
Construction | 380 | 375 | - | 380 | 5 | 380 | 5 | ||||||||||||||||
Land | 460 | 1,152 | - | 935 | 2 | 1,170 | 32 | ||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 2,316 | 3,480 | - | 3,152 | 51 | 3,616 | 111 | ||||||||||||||||
Agriculture | 722 | 761 | - | 724 | 2 | 741 | 2 | ||||||||||||||||
Installment loans to individuals | 117 | 205 | - | 118 | 1 | 145 | 3 | ||||||||||||||||
Total | 6,615 | 11,221 | - | 8,192 | 75 | 8,804 | 200 | ||||||||||||||||
With related allowance | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | - | - | - | - | - | - | - | ||||||||||||||||
Home equity lines of credit | - | - | - | - | - | - | - | ||||||||||||||||
Commercial | 331 | 331 | 58 | 331 | - | 331 | - | ||||||||||||||||
Farmland | - | - | - | - | - | - | - | ||||||||||||||||
Construction | - | - | - | - | - | - | - | ||||||||||||||||
Land | 6,087 | 9,755 | 1,764 | 6,380 | 16 | 6,602 | 58 | ||||||||||||||||
Commercial | - | - | - | - | - | - | |||||||||||||||||
Commercial and industrial | 1,887 | 1,809 | 260 | 1,916 | 41 | 2,013 | 90 | ||||||||||||||||
Agriculture | - | - | - | - | - | - | - | ||||||||||||||||
Installment loans to individuals | - | - | - | - | - | - | - | ||||||||||||||||
Total | 8,305 | 11,895 | 2,082 | 8,627 | 57 | 8,946 | 148 | ||||||||||||||||
Total non-PCI impaired loans | $ | 14,920 | $ | 23,116 | $ | 2,082 | $ | 16,819 | $ | 132 | $ | 17,750 | $ | 348 | |||||||||
(1) Recorded investment includes net deferred loan fees and costs attributable to these loans. | |||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
September 30, 2014 | September 30, 2014 | September 30, 2014 | |||||||||||||||||||||
Unpaid | Specific | Average | Interest | Average | Interest | ||||||||||||||||||
Recorded | Principal | Allowance for | Recorded | Income | Recorded | Income | |||||||||||||||||
Investment (1) | Balance | Impaired Loans | Investment (1) | Recognized | Investment (1) | Recognized | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
PCI loans | |||||||||||||||||||||||
Without related allowance | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | $ | 564 | $ | 888 | $ | - | $ | 565 | $ | 13 | $ | 585 | $ | 29 | |||||||||
Home equity lines of credit | 82 | 98 | - | 81 | 2 | 81 | 4 | ||||||||||||||||
Commercial | 4,981 | 6,903 | - | 4,993 | 130 | 5,160 | 327 | ||||||||||||||||
Farmland | 1,681 | 2,044 | - | 1,699 | 20 | 1,706 | 64 | ||||||||||||||||
Land | 874 | 1,019 | - | 923 | 21 | 943 | 47 | ||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 1,790 | 2,322 | - | 2,081 | 185 | 2,236 | 263 | ||||||||||||||||
Agriculture | 1,425 | 1,492 | - | 1,301 | 34 | 1,291 | 62 | ||||||||||||||||
Installment loans to individuals | - | - | - | - | - | - | - | ||||||||||||||||
Total | 11,397 | 14,766 | - | 11,643 | 405 | 12,002 | 796 | ||||||||||||||||
With related allowance | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | - | - | - | - | - | - | - | ||||||||||||||||
Home equity lines of credit | - | - | - | - | - | - | - | ||||||||||||||||
Commercial | - | - | - | - | - | - | - | ||||||||||||||||
Farmland | - | - | - | - | - | - | - | ||||||||||||||||
Land | - | - | - | - | - | - | - | ||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | - | - | - | - | - | - | - | ||||||||||||||||
Agriculture | - | - | - | - | - | - | - | ||||||||||||||||
Installment loans to individuals | - | - | - | - | - | - | - | ||||||||||||||||
Total | - | - | - | - | - | - | - | ||||||||||||||||
Total PCI loans | $ | 11,397 | $ | 14,766 | $ | - | $ | 11,643 | $ | 405 | $ | 12,002 | $ | 796 | |||||||||
(1) Recorded investment includes accrued interest receivable for PCI impaired loans. | |||||||||||||||||||||||
The following table provides a summary of the Company’s recorded investment in non-PCI impaired loans as of and for the three and nine months ended September 30, 2013. The Company did not have any PCI loans during 2013. | |||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
September 30, 2013 | September 30, 2013 | September 30, 2013 | |||||||||||||||||||||
Unpaid | Specific | Average | Interest | Average | Interest | ||||||||||||||||||
Recorded | Principal | Allowance for | Recorded | Income | Recorded | Income | |||||||||||||||||
Investment (1) | Balance | Impaired Loans | Investment (1) | Recognized | Investment (1) | Recognized | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI loans | |||||||||||||||||||||||
Without related allowance | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | $ | 703 | $ | 735 | $ | - | $ | - | $ | - | $ | 269 | $ | - | |||||||||
Home equity lines of credit | - | - | - | - | - | - | - | ||||||||||||||||
Commercial | 552 | 811 | - | 2 | - | 90 | - | ||||||||||||||||
Land | 1,013 | 1,367 | - | 852 | - | 724 | - | ||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 1,208 | 1,546 | - | 1,041 | - | 1,314 | - | ||||||||||||||||
Agriculture | 745 | 779 | - | 1,022 | - | 937 | - | ||||||||||||||||
Installment loans to individuals | - | - | - | - | - | - | - | ||||||||||||||||
Total | 4,221 | 5,238 | - | 2,917 | - | 3,334 | - | ||||||||||||||||
With related allowance | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | 109 | 230 | 17 | 339 | - | 190 | - | ||||||||||||||||
Commercial | 642 | 1,114 | 91 | 26 | - | 21 | - | ||||||||||||||||
Land | 7,050 | 10,726 | 3,854 | 112 | 4 | 116 | 4 | ||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 3,463 | 3,650 | 2,826 | 3,430 | 8 | 2,969 | 11 | ||||||||||||||||
Agriculture | 65 | 69 | 27 | 41 | - | 29 | - | ||||||||||||||||
Installment loans to individuals | 26 | 71 | 10 | 7,116 | - | 6,573 | - | ||||||||||||||||
Total | 11,355 | 15,860 | 6,825 | 11,064 | 12 | 9,898 | 15 | ||||||||||||||||
Total non-PCI impaired loans | $ | 15,576 | $ | 21,098 | $ | 6,825 | $ | 13,981 | $ | 12 | $ | 13,232 | $ | 15 | |||||||||
(1) Recorded investment includes net deferred loan fees and costs attributable to these loans. | |||||||||||||||||||||||
The following table provides a summary of the Company’s recorded investment in non-PCI impaired loans as of December 31, 2013. The Company did not have any PCI loans during 2013. | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Unpaid | Specific | ||||||||||||||||||||||
Recorded | Principal | Allowance for | |||||||||||||||||||||
Investment (1) | Balance | Impaired Loans | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI loans | |||||||||||||||||||||||
Without related allowance | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | $ | 944 | $ | 1,102 | $ | - | |||||||||||||||||
Home equity lines of credit | - | - | - | ||||||||||||||||||||
Commercial | 901 | 1,646 | - | ||||||||||||||||||||
Farmland | - | - | - | ||||||||||||||||||||
Land | 1,221 | 1,948 | - | ||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 1,857 | 2,241 | - | ||||||||||||||||||||
Agriculture | 789 | 824 | - | ||||||||||||||||||||
Installment loans to individuals | 118 | 190 | - | ||||||||||||||||||||
Total | 5,830 | 7,951 | - | ||||||||||||||||||||
With related allowance | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | - | - | - | ||||||||||||||||||||
Home equity lines of credit | - | - | - | ||||||||||||||||||||
Commercial | - | - | - | ||||||||||||||||||||
Farmland | - | - | - | ||||||||||||||||||||
Land | 6,706 | 10,158 | 2,531 | ||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 3,480 | 3,602 | 623 | ||||||||||||||||||||
Agriculture | - | - | - | ||||||||||||||||||||
Installment loans to individuals | - | - | - | ||||||||||||||||||||
Total | 10,186 | 13,760 | 3,154 | ||||||||||||||||||||
Total non-PCI impaired loans | $ | 16,016 | $ | 21,711 | $ | 3,154 | |||||||||||||||||
(1) Recorded investment includes net deferred loan fees and costs attributable to these loans. | |||||||||||||||||||||||
The Company did not record income from the receipt of cash payments related to non-accruing loans during the three and nine months ended September 30, 2014 and 2013. Interest income recognized on impaired loans in the tables above, if any, represents interest the Company recognized on accruing troubled debt restructurings. Because loans identified as impaired have unique risk characteristics, the Company has determined the related valuation allowances for such loans on a loan-by-loan basis. | |||||||||||||||||||||||
Troubled Debt Restructurings (“TDR”) | |||||||||||||||||||||||
The majority of the Bank’s TDRs were granted concessions regarding interest rates, payment structure and/or maturity. Modifications for the three and nine months ended September 30, 2014, and 2013 include a combination of partial charge-offs 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. As of September 30, 2014, the Company was not committed to lend any additional funds to borrowers whose obligations to the Company were restructured. | |||||||||||||||||||||||
The following table provides a summary of loans that were classified as TDRs as of the dates indicated below: | |||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
Accrual | Non-accrual | Total | Accrual | Non-accrual | Total | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI loans | |||||||||||||||||||||||
Real estate secured | |||||||||||||||||||||||
Residential 1 to 4 family | $ | 128 | $ | 89 | $ | 217 | $ | 499 | $ | 109 | $ | 608 | |||||||||||
Commercial | 370 | 83 | 453 | 225 | 136 | 361 | |||||||||||||||||
Farmland | 289 | - | 289 | - | - | - | |||||||||||||||||
Construction | 380 | - | 380 | - | - | - | |||||||||||||||||
Land | 1,320 | 5,103 | 6,423 | 2,010 | 5,883 | 7,893 | |||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 2,426 | 1,398 | 3,824 | 3,119 | 903 | 4,022 | |||||||||||||||||
Agriculture | 36 | - | 36 | - | 45 | 45 | |||||||||||||||||
Installment loans to individuals | 70 | - | 70 | - | - | - | |||||||||||||||||
Total non-PCI loans | 5,019 | 6,673 | 11,692 | 5,853 | 7,076 | 12,929 | |||||||||||||||||
PCI loans (1) | |||||||||||||||||||||||
Real estate secured | |||||||||||||||||||||||
Commercial | 226 | - | 226 | - | - | - | |||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | - | 118 | 118 | - | - | - | |||||||||||||||||
Total PCI loans | 226 | 118 | 344 | - | - | - | |||||||||||||||||
Total TDRs | $ | 5,245 | $ | 6,791 | $ | 12,036 | $ | 5,853 | $ | 7,076 | $ | 12,929 | |||||||||||
(1) The Company did not have any PCI loans at December 31, 2013. | |||||||||||||||||||||||
The following tables summarize loan modifications which resulted in TDRs for non-PCI and PCI loans during the periods presented below: | |||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | Number of | Outstanding Recorded | Outstanding Recorded | ||||||||||||||||||
TDRs | Investment | Investment | TDRs | Investment | Investment | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Commercial real estate | - | $ | - | $ | - | 1 | $ | 166 | $ | 166 | |||||||||||||
Farmland | |||||||||||||||||||||||
Land | 1 | 168 | 168 | 3 | 444 | 444 | |||||||||||||||||
Construction | 1 | 367 | 367 | 1 | 367 | 367 | |||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 4 | 377 | 377 | 14 | 1,604 | 1,604 | |||||||||||||||||
Agriculture | - | - | - | 1 | 662 | 662 | |||||||||||||||||
Other | |||||||||||||||||||||||
Installment loans to individuals | - | - | - | 1 | 73 | 73 | |||||||||||||||||
PCI Loans | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Commercial real estate | - | - | - | 1 | 230 | 230 | |||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | - | - | - | 2 | 138 | 138 | |||||||||||||||||
Total | 6 | $ | 912 | $ | 912 | 24 | $ | 3,684 | $ | 3,684 | |||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | Number of | Outstanding Recorded | Outstanding Recorded | ||||||||||||||||||
TDRs | Investment | Investment | TDRs | Investment | Investment | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Commercial | 1 | $ | 227 | $ | 227 | 1 | $ | 227 | $ | 227 | |||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | - | - | - | 3 | 91 | 91 | |||||||||||||||||
Agriculture | 1 | 49 | 49 | 2 | 67 | 67 | |||||||||||||||||
Total | 2 | $ | 276 | $ | 276 | 6 | $ | 385 | $ | 385 | |||||||||||||
The following tables summarize loans that were modified as troubled debt restructurings within the twelve months prior to the balance sheet date, and for which there was a payment default during the periods presented below: | |||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||||||||||||
TDRs | Investment | TDRs | Investment | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | - | $ | - | 1 | $ | 30 | |||||||||||||||||
Total | - | $ | - | 1 | $ | 30 | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||||||||||||
TDRs | Investment | TDRs | Investment | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | - | $ | - | 1 | $ | 97 | |||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | - | - | 3 | 843 | |||||||||||||||||||
Agriculture | 1 | 18 | 1 | 18 | |||||||||||||||||||
Total | 1 | $ | 18 | 5 | $ | 958 | |||||||||||||||||
Credit Quality | |||||||||||||||||||||||
The following tables stratify loans held for investment by the Company’s internal risk grading system: | |||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | |||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Total | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI loans | |||||||||||||||||||||||
Real estate secured | |||||||||||||||||||||||
Multi-family residential | $ | 75,627 | $ | - | $ | 1,194 | $ | - | $ | 76,821 | |||||||||||||
Residential 1 to 4 family | 119,613 | 202 | 685 | - | 120,500 | ||||||||||||||||||
Home equity lines of credit | 37,539 | - | 347 | - | 37,886 | ||||||||||||||||||
Commercial | 549,595 | 11,890 | 16,154 | - | 577,639 | ||||||||||||||||||
Farmland | 88,030 | 2,680 | 1,582 | - | 92,292 | ||||||||||||||||||
Land | 17,197 | - | 6,566 | - | 23,763 | ||||||||||||||||||
Construction | 17,467 | 378 | - | - | 17,845 | ||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 133,940 | 995 | 6,984 | 157 | 142,076 | ||||||||||||||||||
Agriculture | 41,609 | 456 | 722 | - | 42,787 | ||||||||||||||||||
Other | 20 | - | - | - | 20 | ||||||||||||||||||
Installment loans to individuals | 8,090 | - | 108 | - | 8,198 | ||||||||||||||||||
Overdrafts | 400 | - | - | - | 400 | ||||||||||||||||||
Total non-PCI loans | 1,089,127 | 16,601 | 34,342 | 157 | 1,140,227 | ||||||||||||||||||
PCI loans | |||||||||||||||||||||||
Real estate secured | |||||||||||||||||||||||
Multi-family residential | - | - | - | - | - | ||||||||||||||||||
Residential 1 to 4 family | - | - | 561 | - | 561 | ||||||||||||||||||
Home equity lines of credit | - | - | 81 | - | 81 | ||||||||||||||||||
Commercial | 127 | - | 4,834 | - | 4,961 | ||||||||||||||||||
Farmland | - | - | 1,673 | - | 1,673 | ||||||||||||||||||
Land | 310 | - | 561 | - | 871 | ||||||||||||||||||
Construction | - | - | - | - | - | ||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 41 | 102 | 1,546 | 96 | 1,785 | ||||||||||||||||||
Agriculture | - | - | 1,417 | - | 1,417 | ||||||||||||||||||
Other | - | - | - | - | - | ||||||||||||||||||
Installment loans to individuals | - | - | - | - | - | ||||||||||||||||||
Total PCI loans | 478 | 102 | 10,673 | 96 | 11,349 | ||||||||||||||||||
Total loans held for investment | $ | 1,089,605 | $ | 16,703 | $ | 45,015 | $ | 253 | $ | 1,151,576 | |||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Total | |||||||||||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Non-PCI | |||||||||||||||||||||||
Special | |||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Loans | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI loans | |||||||||||||||||||||||
Real estate secured | |||||||||||||||||||||||
Multi-family residential | $ | 30,560 | $ | - | $ | 580 | $ | - | $ | 31,140 | |||||||||||||
Residential 1 to 4 family | 87,350 | 490 | 1,064 | - | 88,904 | ||||||||||||||||||
Home equity lines of credit | 31,021 | - | 157 | - | 31,178 | ||||||||||||||||||
Commercial | 414,058 | 3,574 | 14,571 | - | 432,203 | ||||||||||||||||||
Farmland | 47,988 | 975 | 1,451 | - | 50,414 | ||||||||||||||||||
Land | 15,244 | 862 | 8,417 | - | 24,523 | ||||||||||||||||||
Construction | 13,699 | - | - | - | 13,699 | ||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 105,991 | 5,276 | 7,854 | - | 119,121 | ||||||||||||||||||
Agriculture | 31,279 | 196 | 1,211 | - | 32,686 | ||||||||||||||||||
Other | 38 | - | - | - | 38 | ||||||||||||||||||
Installment loans to individuals | 3,050 | 10 | 186 | - | 3,246 | ||||||||||||||||||
Overdrafts | 332 | - | - | - | 332 | ||||||||||||||||||
Total loans held for investment | $ | 780,610 | $ | 11,383 | $ | 35,491 | $ | - | $ | 827,484 | |||||||||||||
The Company did not have any PCI loans as of December 31, 2013. | |||||||||||||||||||||||
Aging of Loans Held for Investment | |||||||||||||||||||||||
The following tables summarize the aging of loans held for investment as of the dates indicated below: | |||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||
Days Past Due | |||||||||||||||||||||||
90+ and Still | Non- | ||||||||||||||||||||||
Current | 30-59 | 60-89 | Accruing | Accruing | Total | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI loans | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Multi-family residential | $ | 76,821 | $ | - | $ | - | $ | - | $ | - | $ | 76,821 | |||||||||||
Residential 1 to 4 family | 120,403 | - | - | - | 97 | 120,500 | |||||||||||||||||
Home equity lines of credit | 37,786 | - | - | - | 100 | 37,886 | |||||||||||||||||
Commercial | 575,701 | - | - | - | 1,938 | 577,639 | |||||||||||||||||
Farmland | 92,292 | - | - | - | - | 92,292 | |||||||||||||||||
Land | 18,537 | - | - | - | 5,226 | 23,763 | |||||||||||||||||
Construction | 17,845 | - | - | - | - | 17,845 | |||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 140,254 | 36 | - | - | 1,786 | 142,076 | |||||||||||||||||
Agriculture | 42,102 | - | - | - | 685 | 42,787 | |||||||||||||||||
Other | 20 | - | - | - | - | 20 | |||||||||||||||||
Installment loans to individuals | 8,152 | - | - | - | 46 | 8,198 | |||||||||||||||||
Overdrafts | 400 | - | - | - | - | 400 | |||||||||||||||||
Total non-PCI loans | 1,130,313 | 36 | - | - | 9,878 | 1,140,227 | |||||||||||||||||
PCI loans | |||||||||||||||||||||||
Real estate secured | |||||||||||||||||||||||
Multi-family residential | - | - | - | - | - | - | |||||||||||||||||
Residential 1 to 4 family | 561 | - | - | - | - | 561 | |||||||||||||||||
Home equity lines of credit | 81 | - | - | - | - | 81 | |||||||||||||||||
Commercial | 4,961 | - | - | - | - | 4,961 | |||||||||||||||||
Farmland | 1,673 | - | - | - | - | 1,673 | |||||||||||||||||
Land | 871 | - | - | - | - | 871 | |||||||||||||||||
Construction | - | - | - | - | - | - | |||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 1,389 | - | - | - | 396 | 1,785 | |||||||||||||||||
Agriculture | 1,417 | - | - | - | - | 1,417 | |||||||||||||||||
Total PCI loans | 10,953 | - | - | - | 396 | 11,349 | |||||||||||||||||
Total loans held for investment | $ | 1,141,266 | $ | 36 | $ | - | $ | - | $ | 10,274 | $ | 1,151,576 | |||||||||||
December 31, 2013 | |||||||||||||||||||||||
Days Past Due | |||||||||||||||||||||||
90+ and Still | Non- | ||||||||||||||||||||||
Current | 30-59 | 60-89 | Accruing | Accruing | Total | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI loans | |||||||||||||||||||||||
Real estate secured | |||||||||||||||||||||||
Multi-family residential | $ | 31,140 | $ | - | $ | - | $ | - | $ | - | $ | 31,140 | |||||||||||
Residential 1 to 4 family | 88,455 | - | - | - | 449 | 88,904 | |||||||||||||||||
Home equity lines of credit | 31,178 | - | - | - | - | 31,178 | |||||||||||||||||
Commercial | 431,531 | - | - | - | 672 | 432,203 | |||||||||||||||||
Farmland | 50,414 | - | - | - | - | 50,414 | |||||||||||||||||
Land | 18,613 | - | - | - | 5,910 | 24,523 | |||||||||||||||||
Construction | 13,699 | - | - | - | - | 13,699 | |||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 116,841 | 100 | - | - | 2,180 | 119,121 | |||||||||||||||||
Agriculture | 31,897 | - | - | - | 789 | 32,686 | |||||||||||||||||
Other | 38 | - | - | - | - | 38 | |||||||||||||||||
Installment loans to individuals | 3,127 | - | 2 | - | 117 | 3,246 | |||||||||||||||||
Overdrafts | 332 | - | - | - | - | 332 | |||||||||||||||||
Total loans held for investment | $ | 817,265 | $ | 100 | $ | 2 | $ | - | $ | 10,117 | $ | 827,484 | |||||||||||
The Company did not have any PCI loans as of December 31, 2013. | |||||||||||||||||||||||
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: | |||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||
Unpaid Principal | Carrying Amount | ||||||||||||||||||||||
Balance | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | $ | 888 | $ | 561 | |||||||||||||||||||
Home equity lines of credit | 98 | 81 | |||||||||||||||||||||
Commercial | 6,903 | 4,961 | |||||||||||||||||||||
Farmland | 2,044 | 1,673 | |||||||||||||||||||||
Land | 1,019 | 871 | |||||||||||||||||||||
Total real estate secured | 10,952 | 8,147 | |||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 2,322 | 1,785 | |||||||||||||||||||||
Agriculture | 1,492 | 1,417 | |||||||||||||||||||||
Total commercial | 3,814 | 3,202 | |||||||||||||||||||||
Total PCI loans | $ | 14,766 | $ | 11,349 | |||||||||||||||||||
No ALLL was recorded on purchased credit impaired loans as of September 30, 2014. Purchased credit impaired loans acquired during the nine months ended September 30, 2014 for which it was probable at acquisition that not all contractually required payments would be collected are as follows: | |||||||||||||||||||||||
28-Feb-14 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Contractually required payments including interest | $ | 19,827 | |||||||||||||||||||||
Nonaccretable difference | (2,320 | ) | |||||||||||||||||||||
Cash flows expected to be collected | 17,507 | ||||||||||||||||||||||
Accretable difference | (4,673 | ) | |||||||||||||||||||||
Fair value at acquisition | $ | 12,834 | |||||||||||||||||||||
The following table summarizes the accretable yield, or income expected to be collected for PCI loans: | |||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Balance at January 1, 2014 | $ | - | |||||||||||||||||||||
New loans purchased | 4,673 | ||||||||||||||||||||||
Accretion of income | (796 | ) | |||||||||||||||||||||
Reclassifications from nonaccretable difference | 619 | ||||||||||||||||||||||
Balance at September 30, 2014 | $ | 4,496 | |||||||||||||||||||||
Discount accretion on PCI loans was $392 thousand and $796 thousand for the three and nine months ended September 30, 2014, respectively. | |||||||||||||||||||||||
Allowance for Loan and Lease Losses | |||||||||||||||||||||||
The following table summarizes the activity in the allowance for loan and lease losses by portfolio segment for the periods presented below: | |||||||||||||||||||||||
For the Three Months Ended September 30, 2014 | |||||||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision for | Balance | |||||||||||||||||||
June 30, | loan losses | September 30, | |||||||||||||||||||||
2014 | 2014 | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Land | $ | 2,944 | $ | - | $ | 8 | $ | (727 | ) | $ | 2,225 | ||||||||||||
Other real estate secured | 8,857 | (10 | ) | (19 | ) | 808 | 9,636 | ||||||||||||||||
Commercial | 4,436 | - | 174 | (296 | ) | 4,314 | |||||||||||||||||
Installment loans to individuals | 73 | (2 | ) | 1 | 2 | 74 | |||||||||||||||||
All other loans | 27 | - | - | 8 | 35 | ||||||||||||||||||
Unallocated | 298 | - | - | 205 | 503 | ||||||||||||||||||
Total | $ | 16,635 | $ | (12 | ) | $ | 164 | $ | - | $ | 16,787 | ||||||||||||
For the Nine Months Ended September 30, 2014 | |||||||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision for | Balance | |||||||||||||||||||
December 31, | loan losses | September 30, | |||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Land | $ | 3,402 | $ | - | $ | 30 | $ | (1,207 | ) | $ | 2,225 | ||||||||||||
Other real estate secured | 9,283 | (1,119 | ) | 37 | 1,435 | 9,636 | |||||||||||||||||
Commercial | 4,781 | (650 | ) | 628 | (445 | ) | 4,314 | ||||||||||||||||
Installment loans to individuals | 99 | (8 | ) | 10 | (27 | ) | 74 | ||||||||||||||||
All other loans | 32 | - | - | 3 | 35 | ||||||||||||||||||
Unallocated | 262 | - | - | 241 | 503 | ||||||||||||||||||
Total | $ | 17,859 | $ | (1,777 | ) | $ | 705 | $ | - | $ | 16,787 | ||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision for | Balance | |||||||||||||||||||
June 30, | loan losses | September 30, | |||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Land | $ | 4,431 | $ | - | $ | 11 | $ | 189 | $ | 4,631 | |||||||||||||
Other real estate secured | 6,663 | (41 | ) | 20 | (112 | ) | 6,530 | ||||||||||||||||
Commercial | 6,584 | (736 | ) | 475 | (197 | ) | 6,126 | ||||||||||||||||
Installment loans to individuals | 100 | (207 | ) | 12 | 183 | 88 | |||||||||||||||||
All other loans | 31 | - | - | 1 | 32 | ||||||||||||||||||
Unallocated | 125 | - | - | (65 | ) | 60 | |||||||||||||||||
Total | $ | 17,934 | $ | (984 | ) | $ | 518 | $ | - | $ | 17,468 | ||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision for | Balance | |||||||||||||||||||
December 31, | loan losses | September 30, | |||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Land | $ | 4,670 | $ | (34 | ) | $ | 45 | $ | (50 | ) | $ | 4,631 | |||||||||||
Other real estate secured | 7,192 | (300 | ) | 145 | (507 | ) | 6,530 | ||||||||||||||||
Commercial | 6,154 | (1,137 | ) | 947 | 162 | 6,126 | |||||||||||||||||
Installment loans to individuals | 64 | (380 | ) | 64 | 340 | 88 | |||||||||||||||||
All other loans | 38 | - | - | (6 | ) | 32 | |||||||||||||||||
Unallocated | - | - | - | 60 | 60 | ||||||||||||||||||
Total | $ | 18,118 | $ | (1,851 | ) | $ | 1,201 | $ | - | $ | 17,468 | ||||||||||||
The following tables disaggregate the allowance for loan and lease losses and the recorded investment in loans by impairment methodology as of the dates presented below: | |||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||
Allowance for Loan and Lease Losses | Recorded Investment in Loans | ||||||||||||||||||||||
Individually | Collectively | Loans | Individually | Collectively | Loans | ||||||||||||||||||
Evaluated for | Evaluated for | Acquired with | Evaluated for | Evaluated for | Acquired with | ||||||||||||||||||
Impairment | Impairment | Deteriorated | Impairment | Impairment | Deteriorated | ||||||||||||||||||
Credit Quality | Credit Quality | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Land | $ | 1,764 | $ | 461 | $ | - | $ | 6,547 | $ | 17,213 | $ | 874 | |||||||||||
Other real estate secured | 58 | 9,578 | - | 3,331 | 919,620 | 7,308 | |||||||||||||||||
Commercial | 260 | 4,054 | - | 4,925 | 179,945 | 3,215 | |||||||||||||||||
Installment loans to individuals | - | 74 | - | 117 | 8,081 | - | |||||||||||||||||
All other loans | - | 35 | - | - | 400 | - | |||||||||||||||||
Unallocated | - | 503 | - | - | - | - | |||||||||||||||||
Total | $ | 2,082 | $ | 14,705 | $ | - | $ | 14,920 | $ | 1,125,259 | $ | 11,397 | |||||||||||
31-Dec-13 | |||||||||||||||||||||||
Allowance for Loan and Lease Losses | Recorded Investment in Loans | ||||||||||||||||||||||
Individually | Collectively | Loans | Individually | Collectively | Loans | ||||||||||||||||||
Evaluated for | Evaluated for | Acquired with | Evaluated for | Evaluated for | Acquired with | ||||||||||||||||||
Impairment | Impairment | Deteriorated | Impairment | Impairment | Deteriorated | ||||||||||||||||||
Credit Quality | Credit Quality | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Land | $ | 2,532 | $ | 870 | $ | - | $ | 7,696 | $ | 16,827 | $ | - | |||||||||||
Other real estate secured | - | 9,283 | - | 1,462 | 646,076 | - | |||||||||||||||||
Commercial | 623 | 4,158 | - | 5,291 | 146,554 | - | |||||||||||||||||
Installment loans to individuals | - | 99 | - | - | 3,246 | - | |||||||||||||||||
All other loans | - | 32 | - | - | 332 | - | |||||||||||||||||
Unallocated | - | 262 | - | - | - | - | |||||||||||||||||
Total | $ | 3,155 | $ | 14,704 | $ | - | $ | 14,449 | $ | 813,035 | $ | - | |||||||||||
At September 30, 2014, total gross loans of $1.2 billion in the table above include $244.9 million of loans acquired through the MISN acquisition (at fair value on the acquisition date). The loans acquired through the MISN acquisition carry no related ALLL at September 30, 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. At September 30, 2014, legacy Heritage Oaks loans totaled $906.6 million. The ALLL as a percentage of legacy Heritage Oaks loans was 1.9% at September 30, 2014. | |||||||||||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
Note 6. Income Taxes | |
As of September 30, 2014, the Company’s deferred tax assets total approximately $27.9 million, of which $11.9 million was due to the MISN merger as 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, and 2011, are open to audit by federal and state taxing authorities, and 2010 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 September 30, 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 unrealized 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”). |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||
Note 7. Goodwill and Other Intangible Assets | |||||||||||||
At September 30, 2014 and December 31, 2013 the balance of goodwill was $24.5 million and $11.2 million, respectively. The change in the balance of goodwill in 2014 relates to the MISN acquisition, as more fully discussed in Note 2. Business Combination. | |||||||||||||
Core deposit intangible assets (“CDI”) are attributable to the acquisition of core deposit balances, including those acquired in the MISN acquisition. These assets are subject to amortization. At September 30, 2014 and December 31, 2013 the balance of CDI was $5.6 million, and $1.3 million, respectively. Amortization of CDI for the three and nine months ended September 30, 2014 totaled $0.3 million, and $0.8 million, respectively. Amortization for the three and nine months ended September 30, 2013 totaled $0.1 million, and $0.3 million, respectively. | |||||||||||||
The following table summarizes the gross carrying amount, accumulated amortization and net carrying amount of CDI as of September 30, 2014, and provides an estimate for future amortization for 2014 and the next five years: | |||||||||||||
September 30, 2014 | |||||||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||||||
Amount | Amortization | Amount | |||||||||||
(dollars in thousands) | |||||||||||||
Core deposit intangibles | $ | 9,261 | $ | -3,617 | $ | 5,644 | |||||||
September 30, 2014 | |||||||||||||
Beginning | Acquired | Estimated | Projected Ending | ||||||||||
Balance | CDI’s | Amortization | Balance | ||||||||||
(dollars in thousands) | |||||||||||||
Period | |||||||||||||
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 | |||||||||
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Share-Based Compensation Plans | ' | ||||||||||||
Share-Based Compensation Plans | ' | ||||||||||||
Note 8. Share-Based Compensation Plans | |||||||||||||
As of September 30, 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 | For the Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(dollars in thousands) | |||||||||||||
Share-based compensation expense: | |||||||||||||
Stock options | $ | 109 | $ | 68 | $ | 370 | $ | 183 | |||||
Restricted stock | 148 | 80 | 353 | 208 | |||||||||
Total expense | $ | 257 | $ | 148 | $ | 723 | $ | 391 | |||||
Unrecognized compensation expense: | |||||||||||||
Stock options | $ | 1,156 | $ | 762 | |||||||||
Restricted stock | 1,067 | 775 | |||||||||||
Total unrecognized expense | $ | 2,223 | $ | 1,537 | |||||||||
At September 30, 2014 unrecognized compensation expense related to non-vested stock options and restricted stock awards is expected to be recognized over weighted average periods of 2.9 years and 2.4 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 | 312,582 | 7.41 | |||||||||||
Forfeited | (68,082 | ) | 8.03 | ||||||||||
Expired | (2,604 | ) | 10.12 | ||||||||||
Exercised | (44,217 | ) | 3.6 | ||||||||||
Balance, September 30, 2014 | 759,936 | $ | 6.78 | 2,021,355 | |||||||||
The Company grants restricted stock periodically as a part of the 2005 Equity Based Compensation Plan for the benefit of employees. Restricted stock issued typically vests ratably over a period of three to five years depending on the specific terms of the grant. Restricted stock 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 performance conditions 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 | 124,744 | 7.37 | |||||||||||
Vested | (32,005 | ) | 6.41 | ||||||||||
Forfeited | (25,862 | ) | 5.8 | ||||||||||
Balance September 30, 2014 | 261,925 | $ | 5.78 | ||||||||||
Included in the table above are performance-based grants of restricted stock totaling 21,241 shares as of September 30, 2014. | |||||||||||||
The following table provides a summary of the aggregate intrinsic value of options vested and expected to vest and exercisable: | |||||||||||||
September 30, 2014 | |||||||||||||
Weighted Average | |||||||||||||
Weighted | Remaining | Aggregate | |||||||||||
Average | Contractual Life | Intrinsic | |||||||||||
Shares | Exercise Price | (Years) | Value | ||||||||||
Vested or expected to vest | 721,414 | $ | 6.77 | 7.78 | $ | 731,352 | |||||||
Exercisable at September 30, 2014 | 310,873 | $ | 6.64 | 6 | $ | 576,739 | |||||||
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 $174 thousand for the nine months ended September 30, 2014. | |||||||||||||
The following table presents the assumptions used in the calculation of the weighted average fair value of options granted: | |||||||||||||
For the Nine Months Ended | |||||||||||||
September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Expected volatility | 49.83% | 55.32% | |||||||||||
Expected term (years) | 5.66 | 6.00 | |||||||||||
Dividend yield | 0.59% | 0.00% | |||||||||||
Risk free rate | 1.76% | 1.55% | |||||||||||
Weighted-average grant date fair value | $ | 3.39 | $ | 3.31 | |||||||||
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Shareholders' Equity | ' | ||||||||||
Shareholders' Equity | ' | ||||||||||
Note 9. Shareholders’ Equity | |||||||||||
Regulatory Capital | |||||||||||
The following table sets forth the Company’s and the Bank’s actual regulatory capital ratios: | |||||||||||
Regulatory | |||||||||||
Standard to | September 30, 2014 | December 31, 2013 | |||||||||
be Well | Heritage Oaks | Heritage Oaks | |||||||||
Ratio | Capitalized | Bancorp | Bank | Bancorp | Bank | ||||||
Leverage ratio | 5.00% | 10.00% | 9.77% | 10.20% | 9.82% | ||||||
Tier I capital to risk weighted assets | 6.00% | 12.87% | 12.58% | 12.91% | 12.42% | ||||||
Total risk based capital to risk weighted assets | 10.00% | 14.12% | 13.83% | 14.17% | 13.68% | ||||||
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. | |||||||||||
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. However, the parties could mutually agree to convert or exchange the stock at any time. 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 September 30, 2014. Series C Preferred Stock holders participate in dividends declared on the Company’s common stock and were paid preferred stock dividends of $36 thousand concurrent with the September 15, 2014 common dividend payment paid to our common shareholders. | |||||||||||
On October 29, 2014, the Company entered into an Exchange Agreement (the “Exchange Agreement”) with Castle Creek Capital Partners IV, LP “Castle Creek”), the sole holder of the Series C Preferred Stock. Pursuant to the terms of the Exchange Agreement, the parties have mutually agreed that Castle Creek will exchange 1,189,538 shares of the Series C Preferred Stock for shares of the Company’s common stock on a one-for-one exchange ratio basis. The consummation of the transactions contemplated by the Exchange Agreement is subject to (i) Castle Creek having received a non-control determination with respect to the Company from the Board of Governors of the Federal Reserve System (or the Federal Reserve Bank of San Francisco) and the California Department of Business Oversight, Division of Financial Institutions, (ii) the receipt of any approvals, non-objections or authorizations of all governmental entities required for the consummation of the transactions contemplated by the Exchange Agreement, and (iii) the satisfaction or waiver of certain other customary closing conditions. The Company agreed in the Exchange Agreement to file, as soon as practicable, and in any event within 30 days of the closing of the transactions contemplated by the Exchange Agreement, a registration statement on Form S-3 under the Securities Act covering the resale by Castle Creek of all of the shares of the Company’s common stock received in the exchange, and to cause such shares to be authorized for listing on The NASDAQ Capital Market. The Company anticipates that the closing of the transactions contemplated by the Exchange Agreement should occur during the fourth quarter of 2014. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Earnings Per Share | ' | |||||||||||
Earnings Per Share | ' | |||||||||||
Note 10. Earnings Per Share | ||||||||||||
Basic earnings per common share are computed by dividing net income available to common shareholders by the weighted-average number of common and participating preferred shares outstanding for the reporting period, including the Series C Preferred Stock. In periods when the Company generates a net loss, preferred shares are not included in the calculation of basic loss per share. Diluted earnings per common share are computed by dividing net income 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. The computation of diluted earnings 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 tables set forth the number of shares used in the calculation of both basic and diluted earnings per common share: | ||||||||||||
For the Three Months Ended September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Net | Net | |||||||||||
Income | Shares | Income | Shares | |||||||||
(dollars in thousands except per share data) | ||||||||||||
Net income | $ | 3,429 | $ | 2,761 | ||||||||
Dividends and accretion on preferred stock | - | -181 | ||||||||||
Net income available to common shareholders | $ | 3,429 | $ | 2,580 | ||||||||
Weighted average shares outstanding | 33,992,465 | 26,362,467 | ||||||||||
Basic earnings per common share | $ | 0.1 | $ | 0.1 | ||||||||
Dilutive effect of share-based compensation awards | 153,735 | 187,101 | ||||||||||
Weighted average diluted shares outstanding | 34,146,200 | 26,549,568 | ||||||||||
Diluted earnings per common share | $ | 0.1 | $ | 0.1 | ||||||||
For the Nine Months Ended September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Net | Net | |||||||||||
Income | Shares | Income | Shares | |||||||||
(dollars in thousands except per share data) | ||||||||||||
Net income | $ | 4,613 | $ | 9,207 | ||||||||
Dividends and accretion on preferred stock | - | -898 | ||||||||||
Net applicable to common shareholders | $ | 4,613 | $ | 8,309 | ||||||||
Weighted average shares outstanding | 32,322,194 | 26,327,948 | ||||||||||
Basic earnings per common share | $ | 0.14 | $ | 0.32 | ||||||||
Dilutive effect of share-based compensation awards | 197,324 | 212,156 | ||||||||||
Weighted average diluted shares outstanding | 32,519,518 | 26,540,104 | ||||||||||
Diluted earnings per common share | $ | 0.14 | $ | 0.31 | ||||||||
For the three months ended September 30, 2014 and 2013, common stock equivalents totaling approximately 35,000 and 418,000 shares, respectively, were excluded from the calculation of diluted earnings per share, as their impact would be anti-dilutive. For the nine months ended September 30, 2014 and 2013, anti-dilutive common stock equivalents totaling approximately 114,000 shares and 358,000 shares, respectively, were excluded from the diluted earnings per share calculation. | ||||||||||||
Restructuring_Activities
Restructuring Activities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Restructuring Activities | ' | ||||||||||||||||
Restructuring Activities | ' | ||||||||||||||||
Note 11. 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 $0.6 million related to integration of MISN systems into the Company’s systems, $2.4 million related to elimination of owned and leased facilities and related fixed assets, $1.7 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. During the nine months ended September 30, 2014, $8.1 million of these costs have already been incurred. | |||||||||||||||||
Expected costs of this restructuring and integration plan are as follows: | |||||||||||||||||
Total Costs | Amount | Amount | Amount | Cumulative | |||||||||||||
Expected To | Incurred | Incurred | Incurred | Incurred | |||||||||||||
Be Incurred | Q1 2014 | Q2 2014 | Q3 2014 | YTD 9/30/2014 | |||||||||||||
(dollars in thousands) | |||||||||||||||||
System integration | $ | 578 | $ | 223 | $ | (20 | ) | $ | 312 | $ | 515 | ||||||
Fixed asset consolidation | 2,387 | 2,350 | (268 | ) | 41 | 2,123 | |||||||||||
Contract cancellation costs | 1,746 | 1,656 | - | 90 | 1,746 | ||||||||||||
Employee termination and retention | 3,836 | 2,641 | 803 | 274 | 3,718 | ||||||||||||
Total restructuring costs | $ | 8,547 | $ | 6,870 | $ | 515 | $ | 717 | $ | 8,102 | |||||||
The following table summarizes the change in the accrued liability related to the Company’s restructuring and integration plan associated with the MISN acquisition for the periods presented below: | |||||||||||||||||
For the Three | For the Nine | ||||||||||||||||
Months Ended | Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Balance, beginning of period | $ | 2,896 | $ | - | |||||||||||||
New charges (1) | 930 | 8,759 | |||||||||||||||
Cash payments | -2,404 | -6,893 | |||||||||||||||
Other adjustments (2) | -213 | -657 | |||||||||||||||
Balance, end of period | $ | 1,209 | $ | 1,209 | |||||||||||||
-1 | Represents initial charges the Company incurred related to the restructuring and integration plan associated with the MISN acquisition. | ||||||||||||||||
-2 | Adjustments related to previously accrued amounts associated with planned staff reduction, contract terminations, and other adjustments. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Commitments and Contingencies. | ' | |||||||
Commitments and Contingencies | ' | |||||||
Note 12. Commitments and Contingencies | ||||||||
In the normal course of business, various claims and lawsuits are brought by and against the Company. In the opinion of management and the Company’s general counsel, the disposition of all pending or threatened proceedings will not have a material effect on the Company’s consolidated financial statements. | ||||||||
Commitments to Extend Credit | ||||||||
In the normal course of business, the Bank enters into financial commitments to meet the financing needs of its customers. These financial commitments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk not recognized in the statement of financial position. | ||||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Standby letters of credit are conditional commitments to guarantee the performance of a Bank customer to a third party. Since many of the commitments and standby letters of credit are expected to expire without being drawn upon, the total amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis and the amount of collateral obtained, if deemed necessary by the Bank, is based on management’s credit evaluation of the customer. | ||||||||
The Bank’s exposure to loan loss in the event of nonperformance on commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments as is done for loans reflected in the Company’s consolidated financial statements. | ||||||||
As of September 30, 2014 and December 31, 2013, the Company had the following outstanding financial commitments, which contractual amounts represent credit risk: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
(dollars in thousands) | ||||||||
Commitments to extend credit | $ | 229,464 | $ | 181,445 | ||||
Standby letters of credit | 15,430 | 17,036 | ||||||
Total commitments and standby letters of credit | $ | 244,894 | $ | 198,481 | ||||
Commitments to extend credit and standby letters of credit are made at both fixed and variable rates of interest. At September 30, 2014 and December 31, 2013, the Company had $39.6 million and $31.6 million in fixed rate commitments, and $205.3 million and $166.9 million in variable rate commitments. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events | ' |
Subsequent Events | ' |
Note 13. Subsequent Events | |
Consent Order | |
On October 29, 2014, the Bank entered into a Stipulation to the Issuance of a Consent Order with its bank regulatory agencies, the Federal Deposit Insurance Corporation (“FDIC”) and the California Department of Business Oversight (“CDBO”), consenting to the issuance of a consent order (“the Consent Order”) relating to identified deficiencies in the Bank’s centralized Bank Secrecy Act and anti-money laundering compliance program, which is designed to comply with the requirements of the Bank Secrecy Act, the USA Patriot Act of 2001 and related anti-money laundering regulations (collectively, the “BSA/AML Requirements”). Per the Consent Order, the Bank must review, update and implement an enhanced risk assessment process based on the 2010 Federal Financial Institutions Examination Council Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) Examination Manual. Some of the areas highlighted in the Consent Order include the requirements to: i) enhance customer due-diligence procedures; ii) improve the enhanced due diligence analysis for high-risk customers; iii) ensure the proper identification and reporting of suspicious activity; iv) address and correct the noted violations of law; v) ensure that there is sufficient and qualified staff; and vi) ensure that all staff are properly trained to carry out the BSA/AML programs. Certain activities, including expansionary activities, that otherwise require regulatory approval will likely be impeded while the Consent Order remains outstanding. Management and the Board have been working diligently to comply with the Consent Order and believe they have allocated sufficient resources to address the corrective actions required by the FDIC and CDBO. Compliance and resolution of the Consent Order will ultimately be determined by the FDIC and CDBO. | |
CEO Employment Agreement | |
On October 29, 2014, the Company and the Bank entered into an employment agreement with its President and Chief Executive Officer, Simone Lagomarsino. The employment agreement was approved by the Board of Directors of the Company and the Bank as it was determined that it was advisable and in the best interest of the Company, the Bank and the Company’s shareholders that Ms. Lagomarsino be provided with an employment agreement that aligns her interests with the interests of the Company and incentivizes her to remain in the employ of the Company. The employment agreement provides that Ms. Lagomarsino shall serve on the Board of Directors of the Company and the Bank. The term of Ms. Lagomarsino’s employment agreement shall continue until terminated in accordance with its terms. Pursuant to the terms and conditions of the employment agreement, Ms. Lagomarsino will receive an annual base salary, is eligible to earn an annual cash bonus award, and is entitled to receive certain other benefits that the Bank extends to all of its executive employees, such as life insurance, disability insurance, health, dental, vision and other insurance benefits, 401(k) plan participation and certain fringe benefits and perquisites. Under the employment agreement, the Company may grant from time to time to Ms. Lagomarsino equity awards under and subject to the terms and conditions of the equity incentive plan that the Company is then regularly granting equity awards to its executive officers under. | |
The employment agreement provides that if Ms. Lagomarsino terminates her employment for “Good Reason” or is terminated without “Cause,” as those terms are defined in the employment agreement, she is entitled to certain severance payments detailed in the employment agreement. The employment agreement also provides for a “double-trigger” change in control payment in the event Ms. Lagomarsino terminates her employment for “Good Reason” or is terminated without “Cause” within twelve months of a “Change in Control” as that term is defined in the employment agreement. Finally, the employment agreement provides for certain benefits in the event of the “Disability,” as that term is defined in the employment agreement, or death of Ms. Lagomarsino. As a condition to the receipt of any of the foregoing payments and benefits (except in the case of termination of employment due to death), Ms. Lagomarsino is required to provide the Company and the Bank with a general release from any and all claims, known and unknown, that Ms. Lagomarsino may have against the Company and/or the Bank. | |
The employment agreement contains standard confidentiality and other business protection covenants, including covenants not to solicit or disparage. Generally speaking, Ms. Lagomarsino agrees not to induce any employees to leave or otherwise interfere with or disrupt the relationships between the Bank and its employees, or divert or attempt to divert from the Bank any of its customers, during the term of her employment and for a period of one year following her separation from the Bank. The employment agreement also contains a standard indemnification provision. | |
Exchange Agreement | |
As more fully described in Note 9. Shareholders’ Equity, on October 29, 2014 the Company and Castle Creek entered into the Exchange Agreement, pursuant to which, among other things, the parties agree, subject to certain conditions to closing, to the exchange of the outstanding shares of Series C Preferred Stock for shares of the Company’s common stock on a one-for-one basis. | |
Dividend Declaration | |
On October 29, 2014, the Company’s Board of Directors declared a cash dividend of $0.05 per share, payable on December 1, 2014, to shareholders of the Company’s common stock as of November 17, 2014. Holders of the Company’s Series C Preferred Stock are also entitled to a per share dividend equivalent to the common dividend declared for which each share of Series C Preferred Stock is convertible into common stock. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 for evidence of deterioration in credit quality since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. Such loans are classified as purchased credit impaired loans (“PCI loans”), while all other acquired loans are classified as non-impaired. | |
The Company has elected to account for purchased credit impaired loans on an individual loan level. The Company estimates the amount and timing of expected cash flows for each loan, and the expected cash flow in excess of the loan’s fair value is referred to as the accretable yield, and is recorded as interest income over the remaining life of the loan. The excess of the loan’s contractual principal and interest over expected cash flows is referred to as the non-accretable difference, and is not recorded in the Company’s financial statements. | |
Quarterly, management performs an evaluation of expected future cash flows for PCI loans. If current expectations of future cash flows are less than management’s previous expectations, an ALLL is recorded with a charge to current period earnings through provision for loan losses. If there has been a probable and significant increase in expected future cash flows over that which was previously expected, the Company would first reduce any previously established ALLL, and then record an adjustment to interest income through an increase in the accretable yield. | |
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 | |
In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-14 Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40), Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. This update addresses classification of government-guaranteed mortgage loans, including those where guarantees are offered by the Federal Housing Administration (“FHA”), the U.S. Department of Housing and Urban Development (“HUD”), and the U.S. Department of Veterans Affairs (“VA”). Although current accounting guidance stipulates proper measurement and classification in situations where a creditor obtains from a debtor, assets in satisfaction of a receivable (such as through foreclosure), current guidance does not specify how to measure and classify foreclosed mortgage loans that are government-guaranteed. Under the provisions of this update, a creditor would derecognize a mortgage loan that has been foreclosed upon, and recognize a separate receivable if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, (3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The amendments within this update are effective for annual and interim periods beginning after December 15, 2014. The Company does not believe the adoption of this update will have a material impact of the Company’s consolidated financial statements. | |
In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). This update requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The following steps are applied in the updated guidance: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. The amendments within this update are effective for the quarter ending March 31, 2017. The Company is currently in the process of evaluating the impact of the adoption of this update, but does not expect a material impact on the Company’s consolidated financial statements. | |
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) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Business Combination | ' | ||||||||||||||||
Summary of acquired assets and liabilities assumed | ' | ||||||||||||||||
February 28, 2014 | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Assets acquired | |||||||||||||||||
Cash and due from banks | $ | 3,212 | |||||||||||||||
Interest earning deposits in other banks | 34,386 | ||||||||||||||||
Securities available for sale | 76,159 | ||||||||||||||||
Loans held for sale | 338 | ||||||||||||||||
Loans and leases receivable | 280,316 | ||||||||||||||||
Premises and equipment | 15,922 | ||||||||||||||||
Deferred tax assets, net | 11,885 | ||||||||||||||||
Goodwill | 13,299 | ||||||||||||||||
Core deposit intangible asset | 5,060 | ||||||||||||||||
Bank owned life insurance | 8,263 | ||||||||||||||||
Other assets | 4,895 | ||||||||||||||||
Total assets acquired | $ | 453,735 | |||||||||||||||
Liabilities assumed | |||||||||||||||||
Deposits | $ | 371,501 | |||||||||||||||
Advances from Federal Home Loan Bank | 6,071 | ||||||||||||||||
Junior subordinated debentures | 4,804 | ||||||||||||||||
Other liabilities | 2,397 | ||||||||||||||||
Total liabilities assumed | $ | 384,773 | |||||||||||||||
Total consideration paid | $ | 68,962 | |||||||||||||||
Summary of consideration paid for MISN | ' | ||||||||||||||||
February 28, 2014 | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
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 financial information | ' | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(dollars in thousands except per share data) | |||||||||||||||||
Net interest income | $ | 15,395 | $ | 14,989 | $ | 45,761 | $ | 44,198 | |||||||||
Provision for loan and lease losses | - | 210 | - | 310 | |||||||||||||
Noninterest income | 2,982 | 2,295 | 7,835 | 12,499 | |||||||||||||
Noninterest expense | 13,384 | 12,898 | 46,844 | 40,127 | |||||||||||||
Income before income taxes | 4,993 | 4,176 | 6,752 | 16,260 | |||||||||||||
Income tax expense | 1,682 | 1,528 | 2,315 | 6,210 | |||||||||||||
Net income | $ | 3,311 | $ | 2,648 | $ | 4,437 | $ | 10,050 | |||||||||
Earnings Per Common Share | |||||||||||||||||
Basic | $ | 0.1 | $ | 0.1 | $ | 0.13 | $ | 0.3 | |||||||||
Diluted | $ | 0.1 | $ | 0.1 | $ | 0.13 | $ | 0.29 |
Fair_Value_of_Assets_and_Liabi1
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Fair Value of Assets and Liabilities | ' | |||||||||||||||||
Summary of the financial instruments the Company measures at fair value on a recurring basis | ' | |||||||||||||||||
As of | Fair Value Measurements Using | |||||||||||||||||
September 30, | Quoted Prices in | Significant Other | Significant | |||||||||||||||
2014 | Active Markets for | Observable | Unobservable | |||||||||||||||
Assets At | Identical Assets | Inputs | Inputs | |||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Assets | ||||||||||||||||||
Obligations of U.S. government agencies | $ | 16,891 | $ | - | $ | 16,891 | $ | - | ||||||||||
Mortgage backed securities | ||||||||||||||||||
U.S government sponsored entities and agencies | 241,130 | - | 241,130 | - | ||||||||||||||
Non-agency | 11,936 | - | 11,936 | - | ||||||||||||||
State and municipal securities | 80,687 | - | 80,687 | - | ||||||||||||||
Asset backed securities | 31,793 | - | 31,793 | - | ||||||||||||||
Total assets measured on a recurring basis | $ | 382,437 | $ | - | $ | 382,437 | $ | - | ||||||||||
As of | Fair Value Measurements Using | |||||||||||||||||
December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||||
2013 | Active Markets for | Observable | Unobservable | |||||||||||||||
Assets At | Identical Assets | Inputs | Inputs | |||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Assets | ||||||||||||||||||
Obligations of U.S. government agencies | $ | 6,208 | $ | - | $ | 6,208 | $ | - | ||||||||||
Mortgage backed securities | ||||||||||||||||||
U.S government sponsored entities and agencies | 182,931 | - | 182,931 | - | ||||||||||||||
Non-agency | 11,032 | - | 11,032 | - | ||||||||||||||
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 | ' | |||||||||||||||||
As of | Fair Value Measurements Using | |||||||||||||||||
September 30, | Quoted Prices in | Significant Other | Significant | |||||||||||||||
2014 | Active Markets for | Observable | Unobservable | Year To | ||||||||||||||
Assets At | Identical Assets | Inputs | Inputs | Date Losses/ | ||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | (Recoveries) | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Assets | ||||||||||||||||||
Impaired loans | ||||||||||||||||||
Commercial real estate | $ | 1,325 | $ | - | $ | - | $ | 1,325 | $ | 1,026 | ||||||||
Land | 4,170 | - | - | 4,170 | (793 | ) | ||||||||||||
Total assets measured on a non-recurring basis | $ | 5,495 | $ | - | $ | - | $ | 5,495 | $ | 233 | ||||||||
As of | Fair Value Measurements Using | |||||||||||||||||
December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||||
2013 | Active Markets for | Observable | Unobservable | Year To | ||||||||||||||
Assets At | Identical Assets | Inputs | Inputs | Date Losses/ | ||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | (Recoveries) | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||
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 | ' | |||||||||||||||||
As of | Fair Value Measurements Using | |||||||||||||||||
September 30, | Quoted Prices in | Significant Other | Significant | |||||||||||||||
2014 | Active Markets for | Observable | Unobservable | |||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | |||||||||||||||
Amount | (Level 1) | (Level 2) | (Level 3) | Fair Value | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Assets | ||||||||||||||||||
Cash and cash equivalents | $ | 50,827 | $ | 50,827 | $ | - | $ | - | $ | 50,827 | ||||||||
Investment securities available for sale | 382,437 | - | 382,437 | - | 382,437 | |||||||||||||
Federal Home Loan Bank stock | 7,853 | - | - | - | N/A | |||||||||||||
Loans receivable, net of deferred fees and costs | 1,150,162 | - | - | 1,155,003 | 1,155,003 | |||||||||||||
Loans held for sale | 5,977 | - | 5,977 | - | 5,977 | |||||||||||||
Accrued interest receivable | 5,376 | - | 1,735 | 3,641 | 5,376 | |||||||||||||
Liabilities | ||||||||||||||||||
Non-interest bearing deposits | 469,435 | 469,435 | - | - | 469,435 | |||||||||||||
Interest bearing deposits | 953,499 | - | 956,269 | - | 956,269 | |||||||||||||
Federal Home Loan Bank advances | 75,562 | - | 75,586 | - | 75,586 | |||||||||||||
Junior subordinated debentures | 13,179 | - | - | 9,867 | 9,867 | |||||||||||||
Accrued interest payable | 426 | - | 426 | - | 426 | |||||||||||||
As of | Fair Value Measurements Using | |||||||||||||||||
December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||||
2013 | Active Markets for | Observable | Unobservable | |||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | |||||||||||||||
Amount | (Level 1) | (Level 2) | (Level 3) | Fair Value | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||
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 instruments | ' | |||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||
Notional | Cost to Cede | Notional | Cost to Cede | |||||||||||||||
Amount | or Assume | Amount | or Assume | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||
Off-balance sheet instruments, commitments to extend credit and standby letters of credit | $ | 254,590 | $ | 2,546 | $ | 198,481 | $ | 1,985 | ||||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 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 | ' | |||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | Unrealized | Unrealized | ||||||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 16,923 | $ | 87 | $ | (119 | ) | $ | 16,891 | |||||||||||
Mortgage backed securities | ||||||||||||||||||||
U.S. government sponsored entities and agencies | 242,947 | 989 | (2,806 | ) | 241,130 | |||||||||||||||
Non-agency | 11,913 | 41 | (18 | ) | 11,936 | |||||||||||||||
State and municipal securities | 78,829 | 2,033 | (175 | ) | 80,687 | |||||||||||||||
Asset backed securities | 31,988 | - | (195 | ) | 31,793 | |||||||||||||||
Total available for sale securities | $ | 382,600 | $ | 3,150 | $ | (3,313 | ) | $ | 382,437 | |||||||||||
December 31, 2013 | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | Unrealized | Unrealized | ||||||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
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 available for sale securities | $ | 282,615 | $ | 778 | $ | (6,598 | ) | $ | 276,795 | |||||||||||
Summary of investment securities in an unrealized loss position | ' | |||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Less Than Twelve Months | Twelve Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Value | Loss | Value | Loss | Value | Loss | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 3,780 | $ | -58 | $ | 2,639 | $ | -61 | $ | 6,419 | $ | (119 | ) | |||||||
Mortgage backed securities | ||||||||||||||||||||
U.S. government sponsored entities and agencies | 82,816 | -977 | 59,407 | -1,829 | 142,223 | (2,806 | ) | |||||||||||||
Non-agency | 3,001 | -8 | 501 | -10 | 3,502 | (18 | ) | |||||||||||||
State and municipal securities | 9,344 | -64 | 10,861 | -111 | 20,205 | (175 | ) | |||||||||||||
Asset backed securities | 5,558 | -29 | 17,364 | -166 | 22,922 | (195 | ) | |||||||||||||
Total | $ | 104,499 | $ | -1,136 | $ | 90,772 | $ | -2,177 | $ | 195,271 | $ | (3,313 | ) | |||||||
December 31, 2013 | ||||||||||||||||||||
Less Than Twelve Months | Twelve Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Value | Loss | Value | Loss | Value | Loss | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
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 | For the Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Proceeds | $ | 19,991 | $ | 38,930 | $ | 98,379 | $ | 144,571 | ||||||||||||
Gross gains | 457 | 970 | 814 | 5,349 | ||||||||||||||||
Gross losses | (7 | ) | -626 | (265 | ) | (1,414 | ) | |||||||||||||
Schedule of amortized cost and fair values maturities of available for sale investment securities | ' | |||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
One Year Or | Over 1 | Over 5 Years | Over 10 Years | Total | ||||||||||||||||
Less | Through 5 | Through 10 | ||||||||||||||||||
Years | Years | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 117 | $ | 476 | $ | 14,503 | $ | 1,795 | $ | 16,891 | ||||||||||
Mortgage backed securities | ||||||||||||||||||||
U.S. government sponsored entities and agencies | 36,510 | 96,446 | 56,776 | 51,398 | 241,130 | |||||||||||||||
Non-agency | 731 | 10,704 | 501 | - | 11,936 | |||||||||||||||
State and municipal securities | 975 | 14,473 | 60,808 | 4,431 | 80,687 | |||||||||||||||
Asset backed securities | - | 2,534 | 11,794 | 17,465 | 31,793 | |||||||||||||||
Total available for sale securities | $ | 38,333 | $ | 124,633 | $ | 144,382 | $ | 75,089 | $ | 382,437 | ||||||||||
Amortized cost | $ | 38,459 | $ | 124,890 | $ | 143,476 | $ | 75,775 | $ | 382,600 | ||||||||||
Weighted average yield | 1.92% | 2.00% | 2.52% | 2.76% | 2.34% | |||||||||||||||
Summary of earnings on both taxable and tax-exempt investment securities | ' | |||||||||||||||||||
For The Three Months Ended | For The Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Taxable earnings on investment securities | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 112 | $ | 33 | $ | 226 | $ | 86 | ||||||||||||
Mortgage backed securities | 1,152 | 847 | 3,370 | 2,470 | ||||||||||||||||
State and municipal securities | 38 | - | 40 | 5 | ||||||||||||||||
Corporate debt securities | - | - | 6 | - | ||||||||||||||||
Asset backed securities | 99 | 113 | 261 | 350 | ||||||||||||||||
Non-taxable earnings on investment securities | ||||||||||||||||||||
State and municipal securities | 545 | 354 | 1,452 | 1,082 | ||||||||||||||||
Total | $ | 1,946 | $ | 1,347 | $ | 5,355 | $ | 3,993 | ||||||||||||
Loans_and_Allowance_for_Loan_a1
Loans and Allowance for Loan and Lease Losses (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Outstanding loan balances | ' | ||||||||||||||||||||||
Summary of outstanding loan balances | ' | ||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
September 30, 2014 | 2013 | ||||||||||||||||||||||
Non-PCI | PCI | Total Loans | Non-PCI | ||||||||||||||||||||
Loans | Loans | Receivable | Loans | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Multi-family residential | $ | 76,821 | $ | - | $ | 76,821 | $ | 31,140 | |||||||||||||||
Residential 1 to 4 family | 120,500 | 561 | 121,061 | 88,904 | |||||||||||||||||||
Home equity lines of credit | 37,886 | 81 | 37,967 | 31,178 | |||||||||||||||||||
Commercial | 577,639 | 4,961 | 582,600 | 432,203 | |||||||||||||||||||
Farmland | 92,292 | 1,673 | 93,965 | 50,414 | |||||||||||||||||||
Land | 23,763 | 871 | 24,634 | 24,523 | |||||||||||||||||||
Construction | 17,845 | - | 17,845 | 13,699 | |||||||||||||||||||
Total real estate secured | 946,746 | 8,147 | 954,893 | 672,061 | |||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 142,076 | 1,785 | 143,861 | 119,121 | |||||||||||||||||||
Agriculture | 42,787 | 1,417 | 44,204 | 32,686 | |||||||||||||||||||
Other | 20 | - | 20 | 38 | |||||||||||||||||||
Total commercial | 184,883 | 3,202 | 188,085 | 151,845 | |||||||||||||||||||
Installment loans to individuals | 8,198 | - | 8,198 | 3,246 | |||||||||||||||||||
Overdrafts | 400 | - | 400 | 332 | |||||||||||||||||||
Total gross loans held for investment | 1,140,227 | 11,349 | 1,151,576 | 827,484 | |||||||||||||||||||
Net deferred loan fees | (1,414 | ) | - | (1,414 | ) | (1,281 | ) | ||||||||||||||||
Allowance for loan and lease losses | (16,787 | ) | - | (16,787 | ) | (17,859 | ) | ||||||||||||||||
Total net loans held for investment | $ | 1,122,026 | $ | 11,349 | $ | 1,133,375 | $ | 808,344 | |||||||||||||||
Loans held for sale | $ | 5,977 | $ | - | $ | 5,977 | $ | 2,386 | |||||||||||||||
Summary of the recorded investment in non-PCI and PCI impaired loans | ' | ||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
September 30, 2014 | September 30, 2014 | September 30, 2014 | |||||||||||||||||||||
Unpaid | Specific | Average | Interest | Average | Interest | ||||||||||||||||||
Recorded | Principal | Allowance for | Recorded | Income | Recorded | Income | |||||||||||||||||
Investment (1) | Balance | Impaired Loans | Investment (1) | Recognized | Investment (1) | Recognized | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
PCI loans | |||||||||||||||||||||||
Without related allowance | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | $ | 564 | $ | 888 | $ | - | $ | 565 | $ | 13 | $ | 585 | $ | 29 | |||||||||
Home equity lines of credit | 82 | 98 | - | 81 | 2 | 81 | 4 | ||||||||||||||||
Commercial | 4,981 | 6,903 | - | 4,993 | 130 | 5,160 | 327 | ||||||||||||||||
Farmland | 1,681 | 2,044 | - | 1,699 | 20 | 1,706 | 64 | ||||||||||||||||
Land | 874 | 1,019 | - | 923 | 21 | 943 | 47 | ||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 1,790 | 2,322 | - | 2,081 | 185 | 2,236 | 263 | ||||||||||||||||
Agriculture | 1,425 | 1,492 | - | 1,301 | 34 | 1,291 | 62 | ||||||||||||||||
Installment loans to individuals | - | - | - | - | - | - | - | ||||||||||||||||
Total | 11,397 | 14,766 | - | 11,643 | 405 | 12,002 | 796 | ||||||||||||||||
With related allowance | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | - | - | - | - | - | - | - | ||||||||||||||||
Home equity lines of credit | - | - | - | - | - | - | - | ||||||||||||||||
Commercial | - | - | - | - | - | - | - | ||||||||||||||||
Farmland | - | - | - | - | - | - | - | ||||||||||||||||
Land | - | - | - | - | - | - | - | ||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | - | - | - | - | - | - | - | ||||||||||||||||
Agriculture | - | - | - | - | - | - | - | ||||||||||||||||
Installment loans to individuals | - | - | - | - | - | - | - | ||||||||||||||||
Total | - | - | - | - | - | - | - | ||||||||||||||||
Total PCI loans | $ | 11,397 | $ | 14,766 | $ | - | $ | 11,643 | $ | 405 | $ | 12,002 | $ | 796 | |||||||||
(1) Recorded investment includes accrued interest receivable for PCI impaired loans. | |||||||||||||||||||||||
Summary of loans classified as TDRs | ' | ||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
Accrual | Non-accrual | Total | Accrual | Non-accrual | Total | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI loans | |||||||||||||||||||||||
Real estate secured | |||||||||||||||||||||||
Residential 1 to 4 family | $ | 128 | $ | 89 | $ | 217 | $ | 499 | $ | 109 | $ | 608 | |||||||||||
Commercial | 370 | 83 | 453 | 225 | 136 | 361 | |||||||||||||||||
Farmland | 289 | - | 289 | - | - | - | |||||||||||||||||
Construction | 380 | - | 380 | - | - | - | |||||||||||||||||
Land | 1,320 | 5,103 | 6,423 | 2,010 | 5,883 | 7,893 | |||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 2,426 | 1,398 | 3,824 | 3,119 | 903 | 4,022 | |||||||||||||||||
Agriculture | 36 | - | 36 | - | 45 | 45 | |||||||||||||||||
Installment loans to individuals | 70 | - | 70 | - | - | - | |||||||||||||||||
Total non-PCI loans | 5,019 | 6,673 | 11,692 | 5,853 | 7,076 | 12,929 | |||||||||||||||||
PCI loans (1) | |||||||||||||||||||||||
Real estate secured | |||||||||||||||||||||||
Commercial | 226 | - | 226 | - | - | - | |||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | - | 118 | 118 | - | - | - | |||||||||||||||||
Total PCI loans | 226 | 118 | 344 | - | - | - | |||||||||||||||||
Total TDRs | $ | 5,245 | $ | 6,791 | $ | 12,036 | $ | 5,853 | $ | 7,076 | $ | 12,929 | |||||||||||
(1) The Company did not have any PCI loans at December 31, 2013. | |||||||||||||||||||||||
Schedule of loan modifications resulted in TDRs for non-PCI and PCI loans | ' | ||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | Number of | Outstanding Recorded | Outstanding Recorded | ||||||||||||||||||
TDRs | Investment | Investment | TDRs | Investment | Investment | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Commercial real estate | - | $ | - | $ | - | 1 | $ | 166 | $ | 166 | |||||||||||||
Farmland | |||||||||||||||||||||||
Land | 1 | 168 | 168 | 3 | 444 | 444 | |||||||||||||||||
Construction | 1 | 367 | 367 | 1 | 367 | 367 | |||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 4 | 377 | 377 | 14 | 1,604 | 1,604 | |||||||||||||||||
Agriculture | - | - | - | 1 | 662 | 662 | |||||||||||||||||
Other | |||||||||||||||||||||||
Installment loans to individuals | - | - | - | 1 | 73 | 73 | |||||||||||||||||
PCI Loans | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Commercial real estate | - | - | - | 1 | 230 | 230 | |||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | - | - | - | 2 | 138 | 138 | |||||||||||||||||
Total | 6 | $ | 912 | $ | 912 | 24 | $ | 3,684 | $ | 3,684 | |||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | Number of | Outstanding Recorded | Outstanding Recorded | ||||||||||||||||||
TDRs | Investment | Investment | TDRs | Investment | Investment | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI Loans | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Commercial | 1 | $ | 227 | $ | 227 | 1 | $ | 227 | $ | 227 | |||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | - | - | - | 3 | 91 | 91 | |||||||||||||||||
Agriculture | 1 | 49 | 49 | 2 | 67 | 67 | |||||||||||||||||
Total | 2 | $ | 276 | $ | 276 | 6 | $ | 385 | $ | 385 | |||||||||||||
Schedule of loans that were modified as troubled debt restructurings within the twelve months prior to the balance sheet date indicated for which there was a payment default | ' | ||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||||||||||||
TDRs | Investment | TDRs | Investment | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | - | $ | - | 1 | $ | 30 | |||||||||||||||||
Total | - | $ | - | 1 | $ | 30 | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||||||||||||
TDRs | Investment | TDRs | Investment | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | - | $ | - | 1 | $ | 97 | |||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | - | - | 3 | 843 | |||||||||||||||||||
Agriculture | 1 | 18 | 1 | 18 | |||||||||||||||||||
Total | 1 | $ | 18 | 5 | $ | 958 | |||||||||||||||||
Schedule of loan portfolio by the Company's internal risk grading system | ' | ||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Special | |||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Total | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI loans | |||||||||||||||||||||||
Real estate secured | |||||||||||||||||||||||
Multi-family residential | $ | 75,627 | $ | - | $ | 1,194 | $ | - | $ | 76,821 | |||||||||||||
Residential 1 to 4 family | 119,613 | 202 | 685 | - | 120,500 | ||||||||||||||||||
Home equity lines of credit | 37,539 | - | 347 | - | 37,886 | ||||||||||||||||||
Commercial | 549,595 | 11,890 | 16,154 | - | 577,639 | ||||||||||||||||||
Farmland | 88,030 | 2,680 | 1,582 | - | 92,292 | ||||||||||||||||||
Land | 17,197 | - | 6,566 | - | 23,763 | ||||||||||||||||||
Construction | 17,467 | 378 | - | - | 17,845 | ||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 133,940 | 995 | 6,984 | 157 | 142,076 | ||||||||||||||||||
Agriculture | 41,609 | 456 | 722 | - | 42,787 | ||||||||||||||||||
Other | 20 | - | - | - | 20 | ||||||||||||||||||
Installment loans to individuals | 8,090 | - | 108 | - | 8,198 | ||||||||||||||||||
Overdrafts | 400 | - | - | - | 400 | ||||||||||||||||||
Total non-PCI loans | 1,089,127 | 16,601 | 34,342 | 157 | 1,140,227 | ||||||||||||||||||
PCI loans | |||||||||||||||||||||||
Real estate secured | |||||||||||||||||||||||
Multi-family residential | - | - | - | - | - | ||||||||||||||||||
Residential 1 to 4 family | - | - | 561 | - | 561 | ||||||||||||||||||
Home equity lines of credit | - | - | 81 | - | 81 | ||||||||||||||||||
Commercial | 127 | - | 4,834 | - | 4,961 | ||||||||||||||||||
Farmland | - | - | 1,673 | - | 1,673 | ||||||||||||||||||
Land | 310 | - | 561 | - | 871 | ||||||||||||||||||
Construction | - | - | - | - | - | ||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 41 | 102 | 1,546 | 96 | 1,785 | ||||||||||||||||||
Agriculture | - | - | 1,417 | - | 1,417 | ||||||||||||||||||
Other | - | - | - | - | - | ||||||||||||||||||
Installment loans to individuals | - | - | - | - | - | ||||||||||||||||||
Total PCI loans | 478 | 102 | 10,673 | 96 | 11,349 | ||||||||||||||||||
Total loans held for investment | $ | 1,089,605 | $ | 16,703 | $ | 45,015 | $ | 253 | $ | 1,151,576 | |||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Total | |||||||||||||||||||||||
Credit Risk Grades | |||||||||||||||||||||||
Non-PCI | |||||||||||||||||||||||
Special | |||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Loans | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI loans | |||||||||||||||||||||||
Real estate secured | |||||||||||||||||||||||
Multi-family residential | $ | 30,560 | $ | - | $ | 580 | $ | - | $ | 31,140 | |||||||||||||
Residential 1 to 4 family | 87,350 | 490 | 1,064 | - | 88,904 | ||||||||||||||||||
Home equity lines of credit | 31,021 | - | 157 | - | 31,178 | ||||||||||||||||||
Commercial | 414,058 | 3,574 | 14,571 | - | 432,203 | ||||||||||||||||||
Farmland | 47,988 | 975 | 1,451 | - | 50,414 | ||||||||||||||||||
Land | 15,244 | 862 | 8,417 | - | 24,523 | ||||||||||||||||||
Construction | 13,699 | - | - | - | 13,699 | ||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 105,991 | 5,276 | 7,854 | - | 119,121 | ||||||||||||||||||
Agriculture | 31,279 | 196 | 1,211 | - | 32,686 | ||||||||||||||||||
Other | 38 | - | - | - | 38 | ||||||||||||||||||
Installment loans to individuals | 3,050 | 10 | 186 | - | 3,246 | ||||||||||||||||||
Overdrafts | 332 | - | - | - | 332 | ||||||||||||||||||
Total loans held for investment | $ | 780,610 | $ | 11,383 | $ | 35,491 | $ | - | $ | 827,484 | |||||||||||||
Summary of the aging of loans held for investment | ' | ||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||
Days Past Due | |||||||||||||||||||||||
90+ and Still | Non- | ||||||||||||||||||||||
Current | 30-59 | 60-89 | Accruing | Accruing | Total | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI loans | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Multi-family residential | $ | 76,821 | $ | - | $ | - | $ | - | $ | - | $ | 76,821 | |||||||||||
Residential 1 to 4 family | 120,403 | - | - | - | 97 | 120,500 | |||||||||||||||||
Home equity lines of credit | 37,786 | - | - | - | 100 | 37,886 | |||||||||||||||||
Commercial | 575,701 | - | - | - | 1,938 | 577,639 | |||||||||||||||||
Farmland | 92,292 | - | - | - | - | 92,292 | |||||||||||||||||
Land | 18,537 | - | - | - | 5,226 | 23,763 | |||||||||||||||||
Construction | 17,845 | - | - | - | - | 17,845 | |||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 140,254 | 36 | - | - | 1,786 | 142,076 | |||||||||||||||||
Agriculture | 42,102 | - | - | - | 685 | 42,787 | |||||||||||||||||
Other | 20 | - | - | - | - | 20 | |||||||||||||||||
Installment loans to individuals | 8,152 | - | - | - | 46 | 8,198 | |||||||||||||||||
Overdrafts | 400 | - | - | - | - | 400 | |||||||||||||||||
Total non-PCI loans | 1,130,313 | 36 | - | - | 9,878 | 1,140,227 | |||||||||||||||||
PCI loans | |||||||||||||||||||||||
Real estate secured | |||||||||||||||||||||||
Multi-family residential | - | - | - | - | - | - | |||||||||||||||||
Residential 1 to 4 family | 561 | - | - | - | - | 561 | |||||||||||||||||
Home equity lines of credit | 81 | - | - | - | - | 81 | |||||||||||||||||
Commercial | 4,961 | - | - | - | - | 4,961 | |||||||||||||||||
Farmland | 1,673 | - | - | - | - | 1,673 | |||||||||||||||||
Land | 871 | - | - | - | - | 871 | |||||||||||||||||
Construction | - | - | - | - | - | - | |||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 1,389 | - | - | - | 396 | 1,785 | |||||||||||||||||
Agriculture | 1,417 | - | - | - | - | 1,417 | |||||||||||||||||
Total PCI loans | 10,953 | - | - | - | 396 | 11,349 | |||||||||||||||||
Total loans held for investment | $ | 1,141,266 | $ | 36 | $ | - | $ | - | $ | 10,274 | $ | 1,151,576 | |||||||||||
December 31, 2013 | |||||||||||||||||||||||
Days Past Due | |||||||||||||||||||||||
90+ and Still | Non- | ||||||||||||||||||||||
Current | 30-59 | 60-89 | Accruing | Accruing | Total | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI loans | |||||||||||||||||||||||
Real estate secured | |||||||||||||||||||||||
Multi-family residential | $ | 31,140 | $ | - | $ | - | $ | - | $ | - | $ | 31,140 | |||||||||||
Residential 1 to 4 family | 88,455 | - | - | - | 449 | 88,904 | |||||||||||||||||
Home equity lines of credit | 31,178 | - | - | - | - | 31,178 | |||||||||||||||||
Commercial | 431,531 | - | - | - | 672 | 432,203 | |||||||||||||||||
Farmland | 50,414 | - | - | - | - | 50,414 | |||||||||||||||||
Land | 18,613 | - | - | - | 5,910 | 24,523 | |||||||||||||||||
Construction | 13,699 | - | - | - | - | 13,699 | |||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 116,841 | 100 | - | - | 2,180 | 119,121 | |||||||||||||||||
Agriculture | 31,897 | - | - | - | 789 | 32,686 | |||||||||||||||||
Other | 38 | - | - | - | - | 38 | |||||||||||||||||
Installment loans to individuals | 3,127 | - | 2 | - | 117 | 3,246 | |||||||||||||||||
Overdrafts | 332 | - | - | - | - | 332 | |||||||||||||||||
Total loans held for investment | $ | 817,265 | $ | 100 | $ | 2 | $ | - | $ | 10,117 | $ | 827,484 | |||||||||||
Schedule of carrying amount and unpaid principal balance of purchased credit impaired loans | ' | ||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||
Unpaid Principal | Carrying Amount | ||||||||||||||||||||||
Balance | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | $ | 888 | $ | 561 | |||||||||||||||||||
Home equity lines of credit | 98 | 81 | |||||||||||||||||||||
Commercial | 6,903 | 4,961 | |||||||||||||||||||||
Farmland | 2,044 | 1,673 | |||||||||||||||||||||
Land | 1,019 | 871 | |||||||||||||||||||||
Total real estate secured | 10,952 | 8,147 | |||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 2,322 | 1,785 | |||||||||||||||||||||
Agriculture | 1,492 | 1,417 | |||||||||||||||||||||
Total commercial | 3,814 | 3,202 | |||||||||||||||||||||
Total PCI loans | $ | 14,766 | $ | 11,349 | |||||||||||||||||||
Schedule of purchased credit impaired loans with probability at acquisition that not all contractually required payments would be collected | ' | ||||||||||||||||||||||
28-Feb-14 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Contractually required payments including interest | $ | 19,827 | |||||||||||||||||||||
Nonaccretable difference | (2,320 | ) | |||||||||||||||||||||
Cash flows expected to be collected | 17,507 | ||||||||||||||||||||||
Accretable difference | (4,673 | ) | |||||||||||||||||||||
Fair value at acquisition | $ | 12,834 | |||||||||||||||||||||
Schedule of accretable yield, or income expected to be collected | ' | ||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Balance at January 1, 2014 | $ | - | |||||||||||||||||||||
New loans purchased | 4,673 | ||||||||||||||||||||||
Accretion of income | (796 | ) | |||||||||||||||||||||
Reclassifications from nonaccretable difference | 619 | ||||||||||||||||||||||
Balance at September 30, 2014 | $ | 4,496 | |||||||||||||||||||||
Summary of the activity in the allowance for loan and lease losses by portfolio segment | ' | ||||||||||||||||||||||
For the Three Months Ended September 30, 2014 | |||||||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision for | Balance | |||||||||||||||||||
June 30, | loan losses | September 30, | |||||||||||||||||||||
2014 | 2014 | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Land | $ | 2,944 | $ | - | $ | 8 | $ | (727 | ) | $ | 2,225 | ||||||||||||
Other real estate secured | 8,857 | (10 | ) | (19 | ) | 808 | 9,636 | ||||||||||||||||
Commercial | 4,436 | - | 174 | (296 | ) | 4,314 | |||||||||||||||||
Installment loans to individuals | 73 | (2 | ) | 1 | 2 | 74 | |||||||||||||||||
All other loans | 27 | - | - | 8 | 35 | ||||||||||||||||||
Unallocated | 298 | - | - | 205 | 503 | ||||||||||||||||||
Total | $ | 16,635 | $ | (12 | ) | $ | 164 | $ | - | $ | 16,787 | ||||||||||||
For the Nine Months Ended September 30, 2014 | |||||||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision for | Balance | |||||||||||||||||||
December 31, | loan losses | September 30, | |||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Land | $ | 3,402 | $ | - | $ | 30 | $ | (1,207 | ) | $ | 2,225 | ||||||||||||
Other real estate secured | 9,283 | (1,119 | ) | 37 | 1,435 | 9,636 | |||||||||||||||||
Commercial | 4,781 | (650 | ) | 628 | (445 | ) | 4,314 | ||||||||||||||||
Installment loans to individuals | 99 | (8 | ) | 10 | (27 | ) | 74 | ||||||||||||||||
All other loans | 32 | - | - | 3 | 35 | ||||||||||||||||||
Unallocated | 262 | - | - | 241 | 503 | ||||||||||||||||||
Total | $ | 17,859 | $ | (1,777 | ) | $ | 705 | $ | - | $ | 16,787 | ||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision for | Balance | |||||||||||||||||||
June 30, | loan losses | September 30, | |||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Land | $ | 4,431 | $ | - | $ | 11 | $ | 189 | $ | 4,631 | |||||||||||||
Other real estate secured | 6,663 | (41 | ) | 20 | (112 | ) | 6,530 | ||||||||||||||||
Commercial | 6,584 | (736 | ) | 475 | (197 | ) | 6,126 | ||||||||||||||||
Installment loans to individuals | 100 | (207 | ) | 12 | 183 | 88 | |||||||||||||||||
All other loans | 31 | - | - | 1 | 32 | ||||||||||||||||||
Unallocated | 125 | - | - | (65 | ) | 60 | |||||||||||||||||
Total | $ | 17,934 | $ | (984 | ) | $ | 518 | $ | - | $ | 17,468 | ||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision for | Balance | |||||||||||||||||||
December 31, | loan losses | September 30, | |||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Land | $ | 4,670 | $ | (34 | ) | $ | 45 | $ | (50 | ) | $ | 4,631 | |||||||||||
Other real estate secured | 7,192 | (300 | ) | 145 | (507 | ) | 6,530 | ||||||||||||||||
Commercial | 6,154 | (1,137 | ) | 947 | 162 | 6,126 | |||||||||||||||||
Installment loans to individuals | 64 | (380 | ) | 64 | 340 | 88 | |||||||||||||||||
All other loans | 38 | - | - | (6 | ) | 32 | |||||||||||||||||
Unallocated | - | - | - | 60 | 60 | ||||||||||||||||||
Total | $ | 18,118 | $ | (1,851 | ) | $ | 1,201 | $ | - | $ | 17,468 | ||||||||||||
Schedule of allowance for loan and lease losses and the recorded investment in loans by impairment methodology | ' | ||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||
Allowance for Loan and Lease Losses | Recorded Investment in Loans | ||||||||||||||||||||||
Individually | Collectively | Loans | Individually | Collectively | Loans | ||||||||||||||||||
Evaluated for | Evaluated for | Acquired with | Evaluated for | Evaluated for | Acquired with | ||||||||||||||||||
Impairment | Impairment | Deteriorated | Impairment | Impairment | Deteriorated | ||||||||||||||||||
Credit Quality | Credit Quality | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Land | $ | 1,764 | $ | 461 | $ | - | $ | 6,547 | $ | 17,213 | $ | 874 | |||||||||||
Other real estate secured | 58 | 9,578 | - | 3,331 | 919,620 | 7,308 | |||||||||||||||||
Commercial | 260 | 4,054 | - | 4,925 | 179,945 | 3,215 | |||||||||||||||||
Installment loans to individuals | - | 74 | - | 117 | 8,081 | - | |||||||||||||||||
All other loans | - | 35 | - | - | 400 | - | |||||||||||||||||
Unallocated | - | 503 | - | - | - | - | |||||||||||||||||
Total | $ | 2,082 | $ | 14,705 | $ | - | $ | 14,920 | $ | 1,125,259 | $ | 11,397 | |||||||||||
31-Dec-13 | |||||||||||||||||||||||
Allowance for Loan and Lease Losses | Recorded Investment in Loans | ||||||||||||||||||||||
Individually | Collectively | Loans | Individually | Collectively | Loans | ||||||||||||||||||
Evaluated for | Evaluated for | Acquired with | Evaluated for | Evaluated for | Acquired with | ||||||||||||||||||
Impairment | Impairment | Deteriorated | Impairment | Impairment | Deteriorated | ||||||||||||||||||
Credit Quality | Credit Quality | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Land | $ | 2,532 | $ | 870 | $ | - | $ | 7,696 | $ | 16,827 | $ | - | |||||||||||
Other real estate secured | - | 9,283 | - | 1,462 | 646,076 | - | |||||||||||||||||
Commercial | 623 | 4,158 | - | 5,291 | 146,554 | - | |||||||||||||||||
Installment loans to individuals | - | 99 | - | - | 3,246 | - | |||||||||||||||||
All other loans | - | 32 | - | - | 332 | - | |||||||||||||||||
Unallocated | - | 262 | - | - | - | - | |||||||||||||||||
Total | $ | 3,155 | $ | 14,704 | $ | - | $ | 14,449 | $ | 813,035 | $ | - | |||||||||||
Non-PCI Loans | ' | ||||||||||||||||||||||
Outstanding loan balances | ' | ||||||||||||||||||||||
Summary of the recorded investment in non-PCI and PCI impaired loans | ' | ||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
30-Sep-14 | 30-Sep-14 | 30-Sep-14 | |||||||||||||||||||||
Unpaid | Specific | Average | Interest | Average | Interest | ||||||||||||||||||
Recorded | Principal | Allowance for | Recorded | Income | Recorded | Income | |||||||||||||||||
Investment (1) | Balance | Impaired Loans | Investment (1) | Recognized | Investment (1) | Recognized | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI loans | |||||||||||||||||||||||
Without related allowance | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | $ | 217 | $ | 354 | $ | - | $ | 222 | $ | 6 | $ | 496 | $ | 16 | |||||||||
Home equity lines of credit | 100 | 183 | - | 100 | - | 100 | - | ||||||||||||||||
Commercial | 2,014 | 4,423 | - | 2,269 | 6 | 1,862 | 19 | ||||||||||||||||
Farmland | 289 | 288 | - | 292 | 2 | 294 | 12 | ||||||||||||||||
Construction | 380 | 375 | - | 380 | 5 | 380 | 5 | ||||||||||||||||
Land | 460 | 1,152 | - | 935 | 2 | 1,170 | 32 | ||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 2,316 | 3,480 | - | 3,152 | 51 | 3,616 | 111 | ||||||||||||||||
Agriculture | 722 | 761 | - | 724 | 2 | 741 | 2 | ||||||||||||||||
Installment loans to individuals | 117 | 205 | - | 118 | 1 | 145 | 3 | ||||||||||||||||
Total | 6,615 | 11,221 | - | 8,192 | 75 | 8,804 | 200 | ||||||||||||||||
With related allowance | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | - | - | - | - | - | - | - | ||||||||||||||||
Home equity lines of credit | - | - | - | - | - | - | - | ||||||||||||||||
Commercial | 331 | 331 | 58 | 331 | - | 331 | - | ||||||||||||||||
Farmland | - | - | - | - | - | - | - | ||||||||||||||||
Construction | - | - | - | - | - | - | - | ||||||||||||||||
Land | 6,087 | 9,755 | 1,764 | 6,380 | 16 | 6,602 | 58 | ||||||||||||||||
Commercial | - | - | - | - | - | - | |||||||||||||||||
Commercial and industrial | 1,887 | 1,809 | 260 | 1,916 | 41 | 2,013 | 90 | ||||||||||||||||
Agriculture | - | - | - | - | - | - | - | ||||||||||||||||
Installment loans to individuals | - | - | - | - | - | - | - | ||||||||||||||||
Total | 8,305 | 11,895 | 2,082 | 8,627 | 57 | 8,946 | 148 | ||||||||||||||||
Total non-PCI impaired loans | $ | 14,920 | $ | 23,116 | $ | 2,082 | $ | 16,819 | $ | 132 | $ | 17,750 | $ | 348 | |||||||||
(1) Recorded investment includes net deferred loan fees and costs attributable to these loans. | |||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
September 30, 2013 | September 30, 2013 | September 30, 2013 | |||||||||||||||||||||
Unpaid | Specific | Average | Interest | Average | Interest | ||||||||||||||||||
Recorded | Principal | Allowance for | Recorded | Income | Recorded | Income | |||||||||||||||||
Investment (1) | Balance | Impaired Loans | Investment (1) | Recognized | Investment (1) | Recognized | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI loans | |||||||||||||||||||||||
Without related allowance | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | $ | 703 | $ | 735 | $ | - | $ | - | $ | - | $ | 269 | $ | - | |||||||||
Home equity lines of credit | - | - | - | - | - | - | - | ||||||||||||||||
Commercial | 552 | 811 | - | 2 | - | 90 | - | ||||||||||||||||
Land | 1,013 | 1,367 | - | 852 | - | 724 | - | ||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 1,208 | 1,546 | - | 1,041 | - | 1,314 | - | ||||||||||||||||
Agriculture | 745 | 779 | - | 1,022 | - | 937 | - | ||||||||||||||||
Installment loans to individuals | - | - | - | - | - | - | - | ||||||||||||||||
Total | 4,221 | 5,238 | - | 2,917 | - | 3,334 | - | ||||||||||||||||
With related allowance | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | 109 | 230 | 17 | 339 | - | 190 | - | ||||||||||||||||
Commercial | 642 | 1,114 | 91 | 26 | - | 21 | - | ||||||||||||||||
Land | 7,050 | 10,726 | 3,854 | 112 | 4 | 116 | 4 | ||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 3,463 | 3,650 | 2,826 | 3,430 | 8 | 2,969 | 11 | ||||||||||||||||
Agriculture | 65 | 69 | 27 | 41 | - | 29 | - | ||||||||||||||||
Installment loans to individuals | 26 | 71 | 10 | 7,116 | - | 6,573 | - | ||||||||||||||||
Total | 11,355 | 15,860 | 6,825 | 11,064 | 12 | 9,898 | 15 | ||||||||||||||||
Total non-PCI impaired loans | $ | 15,576 | $ | 21,098 | $ | 6,825 | $ | 13,981 | $ | 12 | $ | 13,232 | $ | 15 | |||||||||
(1) Recorded investment includes net deferred loan fees and costs attributable to these loans. | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Unpaid | Specific | ||||||||||||||||||||||
Recorded | Principal | Allowance for | |||||||||||||||||||||
Investment (1) | Balance | Impaired Loans | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Non-PCI loans | |||||||||||||||||||||||
Without related allowance | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | $ | 944 | $ | 1,102 | $ | - | |||||||||||||||||
Home equity lines of credit | - | - | - | ||||||||||||||||||||
Commercial | 901 | 1,646 | - | ||||||||||||||||||||
Farmland | - | - | - | ||||||||||||||||||||
Land | 1,221 | 1,948 | - | ||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 1,857 | 2,241 | - | ||||||||||||||||||||
Agriculture | 789 | 824 | - | ||||||||||||||||||||
Installment loans to individuals | 118 | 190 | - | ||||||||||||||||||||
Total | 5,830 | 7,951 | - | ||||||||||||||||||||
With related allowance | |||||||||||||||||||||||
Real Estate Secured | |||||||||||||||||||||||
Residential 1 to 4 family | - | - | - | ||||||||||||||||||||
Home equity lines of credit | - | - | - | ||||||||||||||||||||
Commercial | - | - | - | ||||||||||||||||||||
Farmland | - | - | - | ||||||||||||||||||||
Land | 6,706 | 10,158 | 2,531 | ||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | 3,480 | 3,602 | 623 | ||||||||||||||||||||
Agriculture | - | - | - | ||||||||||||||||||||
Installment loans to individuals | - | - | - | ||||||||||||||||||||
Total | 10,186 | 13,760 | 3,154 | ||||||||||||||||||||
Total non-PCI impaired loans | $ | 16,016 | $ | 21,711 | $ | 3,154 | |||||||||||||||||
(1) Recorded investment includes net deferred loan fees and costs attributable to these loans. |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||
Summary of the gross carrying amount, accumulated amortization and net carrying amount of CDI | ' | ||||||||||||
September 30, 2014 | |||||||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||||||
Amount | Amortization | Amount | |||||||||||
(dollars in thousands) | |||||||||||||
Core deposit intangibles | $ | 9,261 | $ | -3,617 | $ | 5,644 | |||||||
Summary of an estimate for future amortization expense | ' | ||||||||||||
September 30, 2014 | |||||||||||||
Beginning | Acquired | Estimated | Projected Ending | ||||||||||
Balance | CDI’s | Amortization | Balance | ||||||||||
(dollars in thousands) | |||||||||||||
Period | |||||||||||||
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 | |||||||||
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Share-Based Compensation Plans | ' | ||||||||||||
Summary of recognized and unrecognized share based compensation expense | ' | ||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(dollars in thousands) | |||||||||||||
Share-based compensation expense: | |||||||||||||
Stock options | $ | 109 | $ | 68 | $ | 370 | $ | 183 | |||||
Restricted stock | 148 | 80 | 353 | 208 | |||||||||
Total expense | $ | 257 | $ | 148 | $ | 723 | $ | 391 | |||||
Unrecognized compensation expense: | |||||||||||||
Stock options | $ | 1,156 | $ | 762 | |||||||||
Restricted stock | 1,067 | 775 | |||||||||||
Total unrecognized expense | $ | 2,223 | $ | 1,537 | |||||||||
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 | 312,582 | 7.41 | |||||||||||
Forfeited | (68,082 | ) | 8.03 | ||||||||||
Expired | (2,604 | ) | 10.12 | ||||||||||
Exercised | (44,217 | ) | 3.6 | ||||||||||
Balance, September 30, 2014 | 759,936 | $ | 6.78 | 2,021,355 | |||||||||
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 | 124,744 | 7.37 | |||||||||||
Vested | (32,005 | ) | 6.41 | ||||||||||
Forfeited | (25,862 | ) | 5.8 | ||||||||||
Balance September 30, 2014 | 261,925 | $ | 5.78 | ||||||||||
Summary of the aggregate intrinsic value of options vested and expected to vest and exercisable | ' | ||||||||||||
September 30, 2014 | |||||||||||||
Weighted Average | |||||||||||||
Weighted | Remaining | Aggregate | |||||||||||
Average | Contractual Life | Intrinsic | |||||||||||
Shares | Exercise Price | (Years) | Value | ||||||||||
Vested or expected to vest | 721,414 | $ | 6.77 | 7.78 | $ | 731,352 | |||||||
Exercisable at September 30, 2014 | 310,873 | $ | 6.64 | 6 | $ | 576,739 | |||||||
Schedule of assumptions used in the calculation of weighted average fair value of options granted | ' | ||||||||||||
For the Nine Months Ended | |||||||||||||
September 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Expected volatility | 49.83% | 55.32% | |||||||||||
Expected term (years) | 5.66 | 6.00 | |||||||||||
Dividend yield | 0.59% | 0.00% | |||||||||||
Risk free rate | 1.76% | 1.55% | |||||||||||
Weighted-average grant date fair value | $ | 3.39 | $ | 3.31 | |||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Shareholders' Equity | ' | ||||||||||
Schedule of the Company's and the Bank's actual regulatory capital ratios | ' | ||||||||||
Regulatory | |||||||||||
Standard to | September 30, 2014 | December 31, 2013 | |||||||||
be Well | Heritage Oaks | Heritage Oaks | |||||||||
Ratio | Capitalized | Bancorp | Bank | Bancorp | Bank | ||||||
Leverage ratio | 5.00% | 10.00% | 9.77% | 10.20% | 9.82% | ||||||
Tier I capital to risk weighted assets | 6.00% | 12.87% | 12.58% | 12.91% | 12.42% | ||||||
Total risk based capital to risk weighted assets | 10.00% | 14.12% | 13.83% | 14.17% | 13.68% |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Earnings Per Share | ' | |||||||||||
Schedule of calculation of both basic and diluted earnings per common share | ' | |||||||||||
For the Three Months Ended September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Net | Net | |||||||||||
Income | Shares | Income | Shares | |||||||||
(dollars in thousands except per share data) | ||||||||||||
Net income | $ | 3,429 | $ | 2,761 | ||||||||
Dividends and accretion on preferred stock | - | -181 | ||||||||||
Net income available to common shareholders | $ | 3,429 | $ | 2,580 | ||||||||
Weighted average shares outstanding | 33,992,465 | 26,362,467 | ||||||||||
Basic earnings per common share | $ | 0.1 | $ | 0.1 | ||||||||
Dilutive effect of share-based compensation awards | 153,735 | 187,101 | ||||||||||
Weighted average diluted shares outstanding | 34,146,200 | 26,549,568 | ||||||||||
Diluted earnings per common share | $ | 0.1 | $ | 0.1 | ||||||||
For the Nine Months Ended September 30, | ||||||||||||
2014 | 2013 | |||||||||||
Net | Net | |||||||||||
Income | Shares | Income | Shares | |||||||||
(dollars in thousands except per share data) | ||||||||||||
Net income | $ | 4,613 | $ | 9,207 | ||||||||
Dividends and accretion on preferred stock | - | -898 | ||||||||||
Net applicable to common shareholders | $ | 4,613 | $ | 8,309 | ||||||||
Weighted average shares outstanding | 32,322,194 | 26,327,948 | ||||||||||
Basic earnings per common share | $ | 0.14 | $ | 0.32 | ||||||||
Dilutive effect of share-based compensation awards | 197,324 | 212,156 | ||||||||||
Weighted average diluted shares outstanding | 32,519,518 | 26,540,104 | ||||||||||
Diluted earnings per common share | $ | 0.14 | $ | 0.31 |
Restructuring_Activities_Table
Restructuring Activities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Restructuring Activities | ' | ||||||||||||||||
Schedule of expected costs of restructuring and integration plan | ' | ||||||||||||||||
Total Costs | Amount | Amount | Amount | Cumulative | |||||||||||||
Expected To | Incurred | Incurred | Incurred | Incurred | |||||||||||||
Be Incurred | Q1 2014 | Q2 2014 | Q3 2014 | YTD 9/30/2014 | |||||||||||||
(dollars in thousands) | |||||||||||||||||
System integration | $ | 578 | $ | 223 | $ | (20 | ) | $ | 312 | $ | 515 | ||||||
Fixed asset consolidation | 2,387 | 2,350 | (268 | ) | 41 | 2,123 | |||||||||||
Contract cancellation costs | 1,746 | 1,656 | - | 90 | 1,746 | ||||||||||||
Employee termination and retention | 3,836 | 2,641 | 803 | 274 | 3,718 | ||||||||||||
Total restructuring costs | $ | 8,547 | $ | 6,870 | $ | 515 | $ | 717 | $ | 8,102 | |||||||
Schedule of change in the accrued liability related to restructuring and integration plan associated with the MISN acquisition | ' | ||||||||||||||||
For the Three | For the Nine | ||||||||||||||||
Months Ended | Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Balance, beginning of period | $ | 2,896 | $ | - | |||||||||||||
New charges (1) | 930 | 8,759 | |||||||||||||||
Cash payments | -2,404 | -6,893 | |||||||||||||||
Other adjustments (2) | -213 | -657 | |||||||||||||||
Balance, end of period | $ | 1,209 | $ | 1,209 | |||||||||||||
-1 | Represents initial charges the Company incurred related to the restructuring and integration plan associated with the MISN acquisition. | ||||||||||||||||
-2 | Adjustments related to previously accrued amounts associated with planned staff reduction, contract terminations, and other adjustments. | ||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Commitments and Contingencies. | ' | |||||||
Schedule of outstanding financial commitments of the Bank whose contractual amount represents credit risk | ' | |||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
(dollars in thousands) | ||||||||
Commitments to extend credit | $ | 229,464 | $ | 181,445 | ||||
Standby letters of credit | 15,430 | 17,036 | ||||||
Total commitments and standby letters of credit | $ | 244,894 | $ | 198,481 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 9 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Feb. 28, 2014 | Sep. 30, 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 | ' | ' | ' | ' |
Total assets | $1,716,224 | $1,203,651 | ' | $0 |
Revenue | ' | ' | ' | $0 |
Percentage acquired of outstanding common shares | ' | ' | 100.00% | ' |
Business_Combination_Details
Business Combination (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Feb. 28, 2014 | Feb. 28, 2014 |
MISN | MISN | |||
Core Deposits | ||||
Business combination | ' | ' | ' | ' |
Percentage acquired of outstanding common shares | ' | ' | 100.00% | ' |
Common stock issued (in shares) | ' | ' | 7,541,326 | ' |
Aggregate cash consideration | ' | ' | $8,700,000 | ' |
Transaction value | ' | ' | 69,000,000 | ' |
Closing price (in dollars per share) | ' | ' | $7.99 | ' |
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 | ' | ' | 280,316,000 | ' |
Premises and equipment | ' | ' | 15,922,000 | ' |
Deferred tax assets, net | 11,900,000 | ' | 11,885,000 | ' |
Goodwill | 24,536,000 | 11,237,000 | 13,299,000 | ' |
Core deposit intangible asset | ' | ' | ' | 5,060,000 |
Bank owned life insurance | ' | ' | 8,263,000 | ' |
Other assets | ' | ' | 4,895,000 | ' |
Total assets acquired | ' | ' | 453,735,000 | ' |
Liabilities assumed | ' | ' | ' | ' |
Deposits | ' | ' | 371,501,000 | ' |
Advances from Federal Home Loan Bank | ' | ' | 6,071,000 | ' |
Junior subordinated debentures | ' | ' | 4,804,000 | ' |
Other liabilities | ' | ' | 2,397,000 | ' |
Total liabilities assumed | ' | ' | 384,773,000 | ' |
Total consideration paid | ' | ' | 68,962,000 | ' |
Non-impaired loans and leases | ' | ' | 267,300,000 | ' |
Gross contractual payments 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 | ' | ' | 280,700,000 | ' |
Premises and equipment held for sale | $2,070,000 | ' | $3,500,000 | ' |
Business_Combination_Details_2
Business Combination (Details 2) (Mission Community, USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 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 | ' | 15,395 | 14,989 | 45,761 | 44,198 |
Provision for loan and lease losses | ' | ' | 210 | ' | 310 |
Noninterest income | ' | 2,982 | 2,295 | 7,835 | 12,499 |
Noninterest expense | ' | 13,384 | 12,898 | 46,844 | 40,127 |
Income before income taxes | ' | 4,993 | 4,176 | 6,752 | 16,260 |
Income tax expense | ' | 1,682 | 1,528 | 2,315 | 6,210 |
Net Income | ' | $3,311 | $2,648 | $4,437 | $10,050 |
Earnings Per Common Share | ' | ' | ' | ' | ' |
Basic (in dollars per share) | ' | $0.10 | $0.10 | $0.13 | $0.30 |
Diluted (in dollars per share) | ' | $0.10 | $0.10 | $0.13 | $0.29 |
Fair_Value_of_Assets_and_Liabi2
Fair Value of Assets and Liabilities (Details) (USD $) | Sep. 30, 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 a recurring basis | $382,437 | $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 a recurring basis | 16,891 | 6,208 |
Mortgage-backed securities - U.S. government sponsored entities and agencies | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on a recurring basis | 241,130 | 182,931 |
Mortgage-backed securities - Non-agency | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on a recurring basis | 11,936 | 11,032 |
State and municipal securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on a recurring basis | 80,687 | 50,030 |
Asset backed securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on a recurring basis | 31,793 | 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 a recurring basis | 382,437 | 276,795 |
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 a recurring basis | 382,437 | 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 a recurring basis | 16,891 | 6,208 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities - U.S. government sponsored entities and agencies | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on a recurring basis | 241,130 | 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 a recurring basis | 11,936 | 11,032 |
Recurring basis | Significant Other Observable Inputs (Level 2) | State and municipal securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on a recurring basis | 80,687 | 50,030 |
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 a recurring basis | 31,793 | 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 a recurring basis | 382,437 | 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 a recurring basis | 16,891 | 6,208 |
Recurring basis | Assets At Fair Value | Mortgage-backed securities - U.S. government sponsored entities and agencies | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on a recurring basis | 241,130 | 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 a recurring basis | 11,936 | 11,032 |
Recurring basis | Assets At Fair Value | State and municipal securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on a recurring basis | 80,687 | 50,030 |
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 a recurring basis | $31,793 | $26,594 |
Fair_Value_of_Assets_and_Liabi3
Fair Value of Assets and Liabilities (Details 2) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | |
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) | -233,000 | -1,270,000 | ' |
Assets transfer from Level 1 to level 2 | 0 | ' | 0 |
Assets transfer from Level 2 to level 1 | 0 | ' | 0 |
Nonrecurring basis | Commercial real estate | ' | ' | ' |
Total Losses for assets measured at fair value on a non-recurring basis | ' | ' | ' |
Year to Date losses/(Recoveries) on impaired loans | 1,026,000 | ' | ' |
Nonrecurring basis | Land | ' | ' | ' |
Total Losses for assets measured at fair value on a non-recurring basis | ' | ' | ' |
Year to Date losses/(Recoveries) on impaired loans | -793,000 | -1,270,000 | ' |
Nonrecurring basis | Assets At Fair Value | ' | ' | ' |
Assets | ' | ' | ' |
Total assets measured on a non-recurring basis | 5,495,000 | 4,170,000 | ' |
Nonrecurring basis | Assets At Fair Value | Commercial real estate | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | 1,325,000 | ' | ' |
Nonrecurring basis | Assets At Fair Value | Land | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | 4,170,000 | 4,170,000 | ' |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Assets | ' | ' | ' |
Total assets measured on a non-recurring basis | 5,495,000 | 4,170,000 | ' |
Total Losses for assets measured at fair value on a non-recurring basis | ' | ' | ' |
Premises and equipment held for sale transferred into Level 3 | 1,700,000 | ' | ' |
Premises and equipment held for sale transferred out of Level 3 | 2,100,000 | ' | ' |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Commercial real estate | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | 1,325,000 | ' | ' |
Total Losses for assets measured at fair value on a non-recurring basis | ' | ' | ' |
Impaired loans transferred into Level 3 | 1,700,000 | ' | ' |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Land | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | $4,170,000 | $4,170,000 | ' |
Fair_Value_of_Assets_and_Liabi4
Fair Value of Assets and Liabilities (Details 3) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Investment securities available for sale, at fair value | $382,437 | $276,795 |
Liabilities | ' | ' |
Non-interest bearing deposits | 469,435 | 291,856 |
Junior subordinated debentures | 13,179 | 8,248 |
Off-balance sheet instruments, commitments to extend credit and standby letters of credit, Notional Amount | 254,590 | 198,481 |
Off-balance sheet instruments, commitments to extend credit and standby letters of credit, Cost to Cede or Assume | 2,546 | 1,985 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 50,827 | 26,238 |
Liabilities | ' | ' |
Non-interest bearing deposits | 469,435 | 291,856 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Assets | ' | ' |
Investment securities available for sale, at fair value | 382,437 | 276,795 |
Loans held for sale | 5,977 | 2,386 |
Accrued interest receivable | 1,735 | 1,397 |
Liabilities | ' | ' |
Interest bearing deposits | 956,269 | 684,345 |
Federal Home Loan Bank advances | 75,586 | 86,990 |
Accrued interest payable | 426 | 239 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Assets | ' | ' |
Loans receivable, net of deferred fees and costs | 1,155,003 | 827,105 |
Accrued interest receivable | 3,641 | 2,630 |
Liabilities | ' | ' |
Junior subordinated debentures | 9,867 | 7,595 |
Carrying Amount | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 50,827 | 26,238 |
Investment securities available for sale, at fair value | 382,437 | 276,795 |
Federal Home Loan Bank stock | 7,853 | 4,739 |
Loans receivable, net of deferred fees and costs | 1,150,162 | 826,203 |
Loans held for sale | 5,977 | 2,386 |
Accrued interest receivable | 5,376 | 4,027 |
Liabilities | ' | ' |
Non-interest bearing deposits | 469,435 | 291,856 |
Interest bearing deposits | 953,499 | 682,039 |
Federal Home Loan Bank advances | 75,562 | 88,500 |
Junior subordinated debentures | 13,179 | 8,248 |
Accrued interest payable | 426 | 239 |
Fair Value | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 50,827 | 26,238 |
Investment securities available for sale, at fair value | 382,437 | 276,795 |
Loans receivable, net of deferred fees and costs | 1,155,003 | 827,105 |
Loans held for sale | 5,977 | 2,386 |
Accrued interest receivable | 5,376 | 4,027 |
Liabilities | ' | ' |
Non-interest bearing deposits | 469,435 | 291,856 |
Interest bearing deposits | 956,269 | 684,345 |
Federal Home Loan Bank advances | 75,586 | 86,990 |
Junior subordinated debentures | 9,867 | 7,595 |
Accrued interest payable | $426 | $239 |
Investment_Securities_Details
Investment Securities (Details) (USD $) | Sep. 30, 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 available for sale securities | $382,600 | $282,615 |
Gross Unrealized Gains | 3,150 | 778 |
Gross Unrealized Losses | -3,313 | -6,598 |
Fair Value | 382,437 | 276,795 |
Obligations of U.S. government agencies | ' | ' |
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Total available for sale securities | 16,923 | 6,243 |
Gross Unrealized Gains | 87 | 11 |
Gross Unrealized Losses | -119 | -46 |
Fair Value | 16,891 | 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 available for sale securities | 242,947 | 186,981 |
Gross Unrealized Gains | 989 | 342 |
Gross Unrealized Losses | -2,806 | -4,392 |
Fair Value | 241,130 | 182,931 |
Mortgage-backed securities - Non-agency | ' | ' |
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Total available for sale securities | 11,913 | 10,924 |
Gross Unrealized Gains | 41 | 156 |
Gross Unrealized Losses | -18 | -48 |
Fair Value | 11,936 | 11,032 |
State and municipal securities | ' | ' |
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Total available for sale securities | 78,829 | 51,532 |
Gross Unrealized Gains | 2,033 | 269 |
Gross Unrealized Losses | -175 | -1,771 |
Fair Value | 80,687 | 50,030 |
Asset backed securities | ' | ' |
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Total available for sale securities | 31,988 | 26,935 |
Gross Unrealized Losses | -195 | -341 |
Fair Value | $31,793 | $26,594 |
Investment_Securities_Details_
Investment Securities (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | securities | securities | Investment securities | Investment securities | Obligations of U.S. government agencies | Obligations of U.S. government agencies | Mortgage-backed securities - U.S. government sponsored entities and agencies | Mortgage-backed securities - U.S. government sponsored entities and agencies | Mortgage-backed securities - Non-agency | Mortgage-backed securities - Non-agency | State and municipal securities | State and municipal securities | Asset backed securities | Asset backed securities |
Minimum | Maximum | |||||||||||||
Investment securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less Than Twelve Months, Fair Value | $104,499 | $165,482 | ' | ' | $3,780 | $2,773 | $82,816 | $118,554 | $3,001 | $3,210 | $9,344 | $32,967 | $5,558 | $7,978 |
Less Than Twelve Months, Unrealized Loss | -1,136 | -5,154 | ' | ' | -58 | -45 | -977 | -3,140 | -8 | -48 | -64 | -1,675 | -29 | -246 |
Twelve Months or More, Fair Value | 90,772 | 31,108 | ' | ' | 2,639 | 40 | 59,407 | 18,863 | 501 | ' | 10,861 | 2,458 | 17,364 | 9,747 |
Twelve Months or More, Unrealized Loss | -2,177 | -1,444 | ' | ' | -61 | -1 | -1,829 | -1,252 | -10 | ' | -111 | -96 | -166 | -95 |
Total, Fair Value | 195,271 | 196,590 | ' | ' | 6,419 | 2,813 | 142,223 | 137,417 | 3,502 | 3,210 | 20,205 | 35,425 | 22,922 | 17,725 |
Total, Unrealized Loss | ($3,313) | ($6,598) | ' | ' | ($119) | ($46) | ($2,806) | ($4,392) | ($18) | ($48) | ($175) | ($1,771) | ($195) | ($341) |
Securities were in an unrealized loss position | 83 | 96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities in an unrealized loss position | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity period of available-for-sale securities | ' | ' | '1 year | '40 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment_Securities_Details_1
Investment Securities (Details 3) | Sep. 30, 2014 | Mar. 31, 2013 |
Item | Private labeled mortgage backed securities | |
investment | ||
Other than Temporary Impairment | ' | ' |
Number of investment securities in which other than temporary impairment losses were recognized | 0 | 2 |
Investment_Securities_Details_2
Investment Securities (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Proceeds from the sales and calls of securities and the associated gains and losses | ' | ' | ' | ' |
Proceeds | $19,991 | $38,930 | $98,379 | $144,571 |
Gross gains | 457 | 970 | 814 | 5,349 |
Gross losses | -7 | -626 | -265 | -1,414 |
Income tax expense related to net realized gains on sale of securities | $189 | $145 | $231 | $1,700 |
Investment_Securities_Details_3
Investment Securities (Details 5) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Available for sale securities | ' | ' |
One Year Or Less | $38,333 | ' |
Over 1 Through 5 Years | 124,633 | ' |
Over 5 Years Through 10 Years | 144,382 | ' |
Over 10 Years | 75,089 | ' |
Total | 382,437 | 276,795 |
Available for sale securities, Amortized cost | ' | ' |
One Year Or Less | 38,459 | ' |
Over 1 Through 5 Years | 124,890 | ' |
Over 5 Years Through 10 Years | 143,476 | ' |
Over 10 Years | 75,775 | ' |
Total available for sale securities | 382,600 | 282,615 |
Weighted average yield | ' | ' |
One Year Or Less (as a percent) | 1.92% | ' |
Over 1 Through 5 Years (as a percent) | 2.00% | ' |
Over 5 Years Through 10 Years (as a percent) | 2.52% | ' |
Over 10 Years (as a percent) | 2.76% | ' |
Total (as a percent) | 2.34% | ' |
Obligations of U.S. government agencies | ' | ' |
Available for sale securities | ' | ' |
One Year Or Less | 117 | ' |
Over 1 Through 5 Years | 476 | ' |
Over 5 Years Through 10 Years | 14,503 | ' |
Over 10 Years | 1,795 | ' |
Total | 16,891 | 6,208 |
Available for sale securities, Amortized cost | ' | ' |
Total available for sale securities | 16,923 | 6,243 |
Mortgage-backed securities - U.S. government sponsored entities and agencies | ' | ' |
Available for sale securities | ' | ' |
One Year Or Less | 36,510 | ' |
Over 1 Through 5 Years | 96,446 | ' |
Over 5 Years Through 10 Years | 56,776 | ' |
Over 10 Years | 51,398 | ' |
Total | 241,130 | 182,931 |
Available for sale securities, Amortized cost | ' | ' |
Total available for sale securities | 242,947 | 186,981 |
Mortgage-backed securities - Non-agency | ' | ' |
Available for sale securities | ' | ' |
One Year Or Less | 731 | ' |
Over 1 Through 5 Years | 10,704 | ' |
Over 5 Years Through 10 Years | 501 | ' |
Total | 11,936 | 11,032 |
Available for sale securities, Amortized cost | ' | ' |
Total available for sale securities | 11,913 | 10,924 |
State and municipal securities | ' | ' |
Available for sale securities | ' | ' |
One Year Or Less | 975 | ' |
Over 1 Through 5 Years | 14,473 | ' |
Over 5 Years Through 10 Years | 60,808 | ' |
Over 10 Years | 4,431 | ' |
Total | 80,687 | 50,030 |
Available for sale securities, Amortized cost | ' | ' |
Total available for sale securities | 78,829 | 51,532 |
Asset backed securities | ' | ' |
Available for sale securities | ' | ' |
Over 1 Through 5 Years | 2,534 | ' |
Over 5 Years Through 10 Years | 11,794 | ' |
Over 10 Years | 17,465 | ' |
Total | 31,793 | 26,594 |
Available for sale securities, Amortized cost | ' | ' |
Total available for sale securities | 31,988 | 26,935 |
Securities pledged to secure public deposits | ' | ' |
Available for sale securities | ' | ' |
Total | 70,700 | 41,900 |
Available for sale securities, Amortized cost | ' | ' |
Total available for sale securities | $70,900 | $40,400 |
Investment_Securities_Details_4
Investment Securities (Details 6) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' | ' |
Total | $1,946 | $1,347 | $5,355 | $3,993 |
Obligations of U.S. government agencies | ' | ' | ' | ' |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' | ' |
Taxable earnings on investment securities | 112 | 33 | 226 | 86 |
Mortgage backed securities | ' | ' | ' | ' |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' | ' |
Taxable earnings on investment securities | 1,152 | 847 | 3,370 | 2,470 |
State and municipal securities | ' | ' | ' | ' |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' | ' |
Taxable earnings on investment securities | 38 | ' | 40 | 5 |
Non-taxable earnings on investment securities | 545 | 354 | 1,452 | 1,082 |
Corporate debt securities | ' | ' | ' | ' |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' | ' |
Taxable earnings on investment securities | ' | ' | 6 | ' |
Asset backed securities | ' | ' | ' | ' |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' | ' |
Taxable earnings on investment securities | $99 | $113 | $261 | $350 |
Loans_and_Allowance_for_Loan_a2
Loans and Allowance for Loan and Lease Losses (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | $1,151,576,000 | ' | $1,151,576,000 | ' | ' | $827,484,000 | ' | ' |
Net loans held for investment | 1,133,375,000 | ' | 1,133,375,000 | ' | ' | 808,344,000 | ' | ' |
Loans pledged as collateral | 0 | ' | 0 | ' | ' | ' | ' | ' |
Net deferred loan fees | -1,414,000 | ' | -1,414,000 | ' | ' | -1,281,000 | ' | ' |
Allowance for loan and lease losses | -16,787,000 | -17,468,000 | -16,787,000 | -17,468,000 | -16,635,000 | -17,859,000 | -17,934,000 | -18,118,000 |
Loans held for sale | 5,977,000 | ' | 5,977,000 | ' | ' | 2,386,000 | ' | ' |
Reserve maintained for the exercise of repurchase option by buyer | 12,300,000 | ' | 12,300,000 | ' | ' | ' | ' | ' |
Concentration of Credit Risk | ' | ' | ' | ' | ' | ' | ' | ' |
Loan portfolio collateralized by various forms of real estate | 954,900,000 | ' | 954,900,000 | ' | ' | 672,100,000 | ' | ' |
Loans Serviced for Others | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance of loans serviced for others, exclusive of SBA loans | 46,900,000 | ' | 46,900,000 | ' | ' | 22,600,000 | ' | ' |
Unpaid principal balance of SBA loans serviced for others | 16,100,000 | ' | 16,100,000 | ' | ' | 6,600,000 | ' | ' |
Recognized gains from the sale of SBA loans | 43,000 | 4,000 | 43,000 | 400,000 | ' | ' | ' | ' |
Non-PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 1,140,227,000 | ' | 1,140,227,000 | ' | ' | ' | ' | ' |
Net loans held for investment | 1,122,026,000 | ' | 1,122,026,000 | ' | ' | 808,344,000 | ' | ' |
Net deferred loan fees | -1,414,000 | ' | -1,414,000 | ' | ' | -1,281,000 | ' | ' |
Allowance for loan and lease losses | -16,787,000 | ' | -16,787,000 | ' | ' | -17,859,000 | ' | ' |
Loans held for sale | 5,977,000 | ' | 5,977,000 | ' | ' | 2,386,000 | ' | ' |
PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 11,349,000 | ' | 11,349,000 | ' | ' | ' | ' | ' |
Net loans held for investment | 11,349,000 | ' | 11,349,000 | ' | ' | ' | ' | ' |
Federal Reserve Bank | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Loans pledged as collateral | 816,600,000 | ' | 816,600,000 | ' | ' | ' | ' | ' |
FHLB secured credit facility | 417,800,000 | ' | 417,800,000 | ' | ' | ' | ' | ' |
FHLB secured borrowings | 75,600,000 | ' | 75,600,000 | ' | ' | ' | ' | ' |
FHLB secured line of credit | 11,500,000 | ' | 11,500,000 | ' | ' | ' | ' | ' |
FHLB secured future borrowings | 340,900,000 | ' | 340,900,000 | ' | ' | ' | ' | ' |
MISN | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 244,900,000 | ' | 244,900,000 | ' | ' | ' | ' | ' |
Net loans held for investment | 280,300,000 | ' | 280,300,000 | ' | ' | ' | ' | ' |
Net loans without impairment | 267,500,000 | ' | 267,500,000 | ' | ' | ' | ' | ' |
Net loans with purchased credit impaired | 12,800,000 | ' | 12,800,000 | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' |
Land | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan and lease losses | -2,225,000 | -4,631,000 | -2,225,000 | -4,631,000 | -2,944,000 | -3,402,000 | -4,431,000 | -4,670,000 |
Real Estate Secured | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 954,893,000 | ' | 954,893,000 | ' | ' | ' | ' | ' |
Real Estate Secured | Non-PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 946,746,000 | ' | 946,746,000 | ' | ' | 672,061,000 | ' | ' |
Real Estate Secured | Multi-family residential | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 76,821,000 | ' | 76,821,000 | ' | ' | ' | ' | ' |
Real Estate Secured | Multi-family residential | Non-PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 76,821,000 | ' | 76,821,000 | ' | ' | 31,140,000 | ' | ' |
Real Estate Secured | Residential 1 to 4 family | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 121,061,000 | ' | 121,061,000 | ' | ' | ' | ' | ' |
Real Estate Secured | Residential 1 to 4 family | Non-PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 120,500,000 | ' | 120,500,000 | ' | ' | 88,904,000 | ' | ' |
Real Estate Secured | Residential 1 to 4 family | PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 561,000 | ' | 561,000 | ' | ' | ' | ' | ' |
Real Estate Secured | Home equity lines of credit | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 37,967,000 | ' | 37,967,000 | ' | ' | ' | ' | ' |
Real Estate Secured | Home equity lines of credit | Non-PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 37,886,000 | ' | 37,886,000 | ' | ' | 31,178,000 | ' | ' |
Real Estate Secured | Home equity lines of credit | PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 81,000 | ' | 81,000 | ' | ' | ' | ' | ' |
Real Estate Secured | Commercial | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 582,600,000 | ' | 582,600,000 | ' | ' | ' | ' | ' |
Real Estate Secured | Commercial | Non-PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 577,639,000 | ' | 577,639,000 | ' | ' | 432,203,000 | ' | ' |
Real Estate Secured | Commercial | PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 4,961,000 | ' | 4,961,000 | ' | ' | ' | ' | ' |
Real Estate Secured | Farmland | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 93,965,000 | ' | 93,965,000 | ' | ' | ' | ' | ' |
Real Estate Secured | Farmland | Non-PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 92,292,000 | ' | 92,292,000 | ' | ' | 50,414,000 | ' | ' |
Real Estate Secured | Farmland | PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 1,673,000 | ' | 1,673,000 | ' | ' | ' | ' | ' |
Real Estate Secured | Land | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 24,634,000 | ' | 24,634,000 | ' | ' | ' | ' | ' |
Real Estate Secured | Land | Non-PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 23,763,000 | ' | 23,763,000 | ' | ' | 24,523,000 | ' | ' |
Real Estate Secured | Land | PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 871,000 | ' | 871,000 | ' | ' | ' | ' | ' |
Real Estate Secured | Construction | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 17,845,000 | ' | 17,845,000 | ' | ' | ' | ' | ' |
Real Estate Secured | Construction | Non-PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 17,845,000 | ' | 17,845,000 | ' | ' | 13,699,000 | ' | ' |
Commercial | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 188,085,000 | ' | 188,085,000 | ' | ' | ' | ' | ' |
Allowance for loan and lease losses | -4,314,000 | -6,126,000 | -4,314,000 | -6,126,000 | -4,436,000 | -4,781,000 | -6,584,000 | -6,154,000 |
Commercial | Non-PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 184,883,000 | ' | 184,883,000 | ' | ' | 151,845,000 | ' | ' |
Commercial | PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 3,202,000 | ' | 3,202,000 | ' | ' | ' | ' | ' |
Commercial | Commercial and industrial | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 143,861,000 | ' | 143,861,000 | ' | ' | ' | ' | ' |
Commercial | Commercial and industrial | Non-PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 142,076,000 | ' | 142,076,000 | ' | ' | 119,121,000 | ' | ' |
Commercial | Commercial and industrial | PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 1,785,000 | ' | 1,785,000 | ' | ' | ' | ' | ' |
Commercial | Agriculture | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 44,204,000 | ' | 44,204,000 | ' | ' | ' | ' | ' |
Commercial | Agriculture | Non-PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 42,787,000 | ' | 42,787,000 | ' | ' | 32,686,000 | ' | ' |
Commercial | Agriculture | PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 1,417,000 | ' | 1,417,000 | ' | ' | ' | ' | ' |
Commercial | Other | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 20,000 | ' | 20,000 | ' | ' | ' | ' | ' |
Commercial | Other | Non-PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 20,000 | ' | 20,000 | ' | ' | 38,000 | ' | ' |
Installment loans to individuals | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 8,198,000 | ' | 8,198,000 | ' | ' | ' | ' | ' |
Allowance for loan and lease losses | -74,000 | -88,000 | -74,000 | -88,000 | -73,000 | -99,000 | -100,000 | -64,000 |
Installment loans to individuals | Non-PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 8,198,000 | ' | 8,198,000 | ' | ' | 3,246,000 | ' | ' |
Overdrafts | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | 400,000 | ' | 400,000 | ' | ' | ' | ' | ' |
Overdrafts | Non-PCI Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans held for investment | $400,000 | ' | $400,000 | ' | ' | $332,000 | ' | ' |
Loans_and_Allowance_for_Loan_a3
Loans and Allowance for Loan and Lease Losses (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Non-PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | $6,615 | $4,221 | $6,615 | $4,221 | $5,830 |
Recorded investment with related allowance | 8,305 | 11,355 | 8,305 | 11,355 | 10,186 |
Unpaid principal balance without related allowance | 11,221 | 5,238 | 11,221 | 5,238 | 7,951 |
Unpaid principal balance with related allowance | 11,895 | 15,860 | 11,895 | 15,860 | 13,760 |
Specific Allowance for Impaired Loans | 2,082 | 6,825 | 2,082 | 6,825 | 3,154 |
Average recorded investment without related allowance | 8,192 | 2,917 | 8,804 | 3,334 | ' |
Average recorded investment with related allowance | 8,627 | 11,064 | 8,946 | 9,898 | ' |
Interest income recognized without related allowance | 75 | ' | 200 | ' | ' |
Interest income recognized with related allowance | 57 | 12 | 148 | 15 | ' |
Recorded Investment | 14,920 | 15,576 | 14,920 | 15,576 | 16,016 |
Unpaid Principal Balance | 23,116 | 21,098 | 23,116 | 21,098 | 21,711 |
Average Recorded Investment | 16,819 | 13,981 | 17,750 | 13,232 | ' |
Interest Income Recognized | 132 | 12 | 348 | 15 | ' |
PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 11,397 | ' | 11,397 | ' | ' |
Unpaid principal balance without related allowance | 14,766 | ' | 14,766 | ' | ' |
Specific Allowance for Impaired Loans | 11,349 | ' | 11,349 | ' | ' |
Average recorded investment without related allowance | 11,643 | ' | 12,002 | ' | ' |
Interest income recognized without related allowance | 405 | ' | 796 | ' | ' |
Recorded Investment | 11,397 | ' | 11,397 | ' | ' |
Unpaid Principal Balance | 14,766 | ' | 14,766 | ' | ' |
Average Recorded Investment | 11,643 | ' | 12,002 | ' | ' |
Interest Income Recognized | 405 | ' | 796 | ' | ' |
Commercial and industrial | PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Specific Allowance for Impaired Loans | 3,202 | ' | 3,202 | ' | ' |
Unpaid Principal Balance | 3,814 | ' | 3,814 | ' | ' |
Real Estate Secured | PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Specific Allowance for Impaired Loans | 8,147 | ' | 8,147 | ' | ' |
Unpaid Principal Balance | 10,952 | ' | 10,952 | ' | ' |
Real Estate Secured | Residential 1 to 4 family | Non-PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 217 | 703 | 217 | 703 | 944 |
Recorded investment with related allowance | ' | 109 | ' | 109 | ' |
Unpaid principal balance without related allowance | 354 | 735 | 354 | 735 | 1,102 |
Unpaid principal balance with related allowance | ' | 230 | ' | 230 | ' |
Specific Allowance for Impaired Loans | ' | 17 | ' | 17 | ' |
Average recorded investment without related allowance | 222 | ' | 496 | 269 | ' |
Average recorded investment with related allowance | ' | 339 | ' | 190 | ' |
Interest income recognized without related allowance | 6 | ' | 16 | ' | ' |
Real Estate Secured | Residential 1 to 4 family | PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 564 | ' | 564 | ' | ' |
Unpaid principal balance without related allowance | 888 | ' | 888 | ' | ' |
Specific Allowance for Impaired Loans | 561 | ' | 561 | ' | ' |
Average recorded investment without related allowance | 565 | ' | 585 | ' | ' |
Interest income recognized without related allowance | 13 | ' | ' | ' | ' |
Unpaid Principal Balance | 888 | ' | 888 | ' | ' |
Real Estate Secured | Home equity lines of credit | Non-PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 100 | ' | 100 | ' | ' |
Unpaid principal balance without related allowance | 183 | ' | 183 | ' | ' |
Average recorded investment without related allowance | 100 | ' | 100 | ' | ' |
Real Estate Secured | Home equity lines of credit | PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 82 | ' | 82 | ' | ' |
Unpaid principal balance without related allowance | 98 | ' | 98 | ' | ' |
Specific Allowance for Impaired Loans | 81 | ' | 81 | ' | ' |
Average recorded investment without related allowance | 81 | ' | 81 | ' | ' |
Interest income recognized without related allowance | 2 | ' | 4 | ' | ' |
Unpaid Principal Balance | 98 | ' | 98 | ' | ' |
Real Estate Secured | Commercial | Non-PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 2,014 | 552 | 2,014 | 552 | 901 |
Recorded investment with related allowance | 331 | 642 | 331 | 642 | ' |
Unpaid principal balance without related allowance | 4,423 | 811 | 4,423 | 811 | 1,646 |
Unpaid principal balance with related allowance | 331 | 1,114 | 331 | 1,114 | ' |
Specific Allowance for Impaired Loans | 58 | 91 | 58 | 91 | ' |
Average recorded investment without related allowance | 2,269 | 2 | 1,862 | 90 | ' |
Average recorded investment with related allowance | 331 | 26 | 331 | 21 | ' |
Interest income recognized without related allowance | 6 | ' | 19 | ' | ' |
Real Estate Secured | Commercial | PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 4,981 | ' | 4,981 | ' | ' |
Unpaid principal balance without related allowance | 6,903 | ' | 6,903 | ' | ' |
Specific Allowance for Impaired Loans | 4,961 | ' | 4,961 | ' | ' |
Average recorded investment without related allowance | 4,993 | ' | 5,160 | ' | ' |
Interest income recognized without related allowance | 130 | ' | 327 | ' | ' |
Unpaid Principal Balance | 6,903 | ' | 6,903 | ' | ' |
Real Estate Secured | Farmland | Non-PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 289 | ' | 289 | ' | ' |
Unpaid principal balance without related allowance | 288 | ' | 288 | ' | ' |
Average recorded investment without related allowance | 292 | ' | 294 | ' | ' |
Interest income recognized without related allowance | 2 | ' | 12 | ' | ' |
Real Estate Secured | Farmland | PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 1,681 | ' | 1,681 | ' | ' |
Unpaid principal balance without related allowance | 2,044 | ' | 2,044 | ' | ' |
Specific Allowance for Impaired Loans | 1,673 | ' | 1,673 | ' | ' |
Average recorded investment without related allowance | 1,699 | ' | 1,706 | ' | ' |
Interest income recognized without related allowance | 20 | ' | 64 | ' | ' |
Unpaid Principal Balance | 2,044 | ' | 2,044 | ' | ' |
Real Estate Secured | Construction | Non-PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 380 | ' | 380 | ' | ' |
Unpaid principal balance without related allowance | 375 | ' | 375 | ' | ' |
Average recorded investment without related allowance | 380 | ' | 380 | ' | ' |
Interest income recognized without related allowance | 5 | ' | 5 | ' | ' |
Real Estate Secured | Land | Non-PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 460 | 1,013 | 460 | 1,013 | 1,221 |
Recorded investment with related allowance | 6,087 | 7,050 | 6,087 | 7,050 | 6,706 |
Unpaid principal balance without related allowance | 1,152 | 1,367 | 1,152 | 1,367 | 1,948 |
Unpaid principal balance with related allowance | 9,755 | 10,726 | 9,755 | 10,726 | 10,158 |
Specific Allowance for Impaired Loans | 1,764 | 3,854 | 1,764 | 3,854 | 2,531 |
Average recorded investment without related allowance | 935 | 852 | 1,170 | 724 | ' |
Average recorded investment with related allowance | 6,380 | 112 | 6,602 | 116 | ' |
Interest income recognized without related allowance | 2 | ' | 2 | ' | ' |
Interest income recognized with related allowance | 16 | 4 | 58 | 4 | ' |
Real Estate Secured | Land | PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 874 | ' | 874 | ' | ' |
Unpaid principal balance without related allowance | 1,019 | ' | 1,019 | ' | ' |
Specific Allowance for Impaired Loans | 871 | ' | 871 | ' | ' |
Average recorded investment without related allowance | 923 | ' | 943 | ' | ' |
Interest income recognized without related allowance | 21 | ' | 47 | ' | ' |
Unpaid Principal Balance | 1,019 | ' | 1,019 | ' | ' |
Commercial | Commercial and industrial | Non-PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 2,316 | 1,208 | 2,316 | 1,208 | 1,857 |
Recorded investment with related allowance | 1,887 | 3,463 | 1,887 | 3,463 | 3,480 |
Unpaid principal balance without related allowance | 3,480 | 1,546 | 3,480 | 1,546 | 2,241 |
Unpaid principal balance with related allowance | 1,809 | 3,650 | 1,809 | 3,650 | 3,602 |
Specific Allowance for Impaired Loans | 260 | 2,826 | 260 | 2,826 | 623 |
Average recorded investment without related allowance | 3,152 | 1,041 | 3,616 | 1,314 | ' |
Average recorded investment with related allowance | 1,916 | 3,430 | 2,013 | 2,969 | ' |
Interest income recognized without related allowance | 51 | ' | 111 | ' | ' |
Interest income recognized with related allowance | 41 | 8 | 90 | 11 | ' |
Commercial | Commercial and industrial | PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 1,790 | ' | 1,790 | ' | ' |
Unpaid principal balance without related allowance | 2,322 | ' | 2,322 | ' | ' |
Specific Allowance for Impaired Loans | 1,785 | ' | 1,785 | ' | ' |
Average recorded investment without related allowance | 2,081 | ' | 2,236 | ' | ' |
Interest income recognized without related allowance | 185 | ' | 263 | ' | ' |
Unpaid Principal Balance | 2,322 | ' | 2,322 | ' | ' |
Commercial | Agriculture | Non-PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 722 | 745 | 722 | 745 | 789 |
Recorded investment with related allowance | ' | 65 | ' | 65 | ' |
Unpaid principal balance without related allowance | 761 | 779 | 761 | 779 | 824 |
Unpaid principal balance with related allowance | ' | 69 | ' | 69 | ' |
Specific Allowance for Impaired Loans | ' | 27 | ' | 27 | ' |
Average recorded investment without related allowance | 724 | 1,022 | 741 | 937 | ' |
Average recorded investment with related allowance | ' | 41 | ' | 29 | ' |
Interest income recognized without related allowance | 2 | ' | 32 | ' | ' |
Commercial | Agriculture | PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 1,425 | ' | 1,425 | ' | ' |
Unpaid principal balance without related allowance | 1,492 | ' | 1,492 | ' | ' |
Specific Allowance for Impaired Loans | 1,417 | ' | 1,417 | ' | ' |
Average recorded investment without related allowance | 1,301 | ' | 1,291 | ' | ' |
Interest income recognized without related allowance | 34 | ' | 62 | ' | ' |
Unpaid Principal Balance | 1,492 | ' | 1,492 | ' | ' |
Installment loans to individuals | Non-PCI Loans | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded investment without related allowance | 117 | ' | 117 | ' | 118 |
Recorded investment with related allowance | ' | 26 | ' | 26 | ' |
Unpaid principal balance without related allowance | 205 | ' | 205 | ' | 190 |
Unpaid principal balance with related allowance | ' | 71 | ' | 71 | ' |
Specific Allowance for Impaired Loans | ' | 10 | ' | 10 | ' |
Average recorded investment without related allowance | 118 | ' | 145 | ' | ' |
Average recorded investment with related allowance | ' | 7,116 | ' | 6,573 | ' |
Interest income recognized without related allowance | $1 | ' | $3 | ' | ' |
Loans_and_Allowance_for_Loan_a4
Loans and Allowance for Loan and Lease Losses (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
TDR | TDR | TDR | TDR | ||
Troubled debt restructurings | ' | ' | ' | ' | ' |
Accruing loans that were classified as TDRs | $5,245 | ' | $5,245 | ' | $5,853 |
Non-Accruing | 6,791 | ' | 6,791 | ' | 7,076 |
Loans classified as TDRs | 12,036 | ' | 12,036 | ' | 12,929 |
Number of TDRs | 6 | 2 | 24 | 6 | ' |
Pre-Modification Outstanding Recorded Investment | 912 | 276 | 3,684 | 385 | ' |
Post-Modification Outstanding Recorded Investment | 912 | 276 | 36,840 | 385 | ' |
Troubled Debt Restructurings That Subsequently Defaulted | ' | ' | ' | ' | ' |
Number of TDRs | ' | 1 | 1 | 5 | ' |
Recorded Investment | ' | 18 | 30 | 958 | ' |
Real Estate Secured | Residential 1 to 4 family | ' | ' | ' | ' | ' |
Troubled Debt Restructurings That Subsequently Defaulted | ' | ' | ' | ' | ' |
Number of TDRs | ' | ' | ' | 1 | ' |
Recorded Investment | ' | ' | ' | 97 | ' |
Commercial | Commercial | ' | ' | ' | ' | ' |
Troubled Debt Restructurings That Subsequently Defaulted | ' | ' | ' | ' | ' |
Number of TDRs | ' | ' | 1 | ' | ' |
Recorded Investment | ' | ' | 30 | ' | ' |
Commercial | Commercial and industrial | ' | ' | ' | ' | ' |
Troubled Debt Restructurings That Subsequently Defaulted | ' | ' | ' | ' | ' |
Number of TDRs | ' | ' | ' | 3 | ' |
Recorded Investment | ' | ' | ' | 843 | ' |
Commercial | Agriculture | ' | ' | ' | ' | ' |
Troubled Debt Restructurings That Subsequently Defaulted | ' | ' | ' | ' | ' |
Number of TDRs | ' | 1 | ' | 1 | ' |
Recorded Investment | ' | 18 | ' | 18 | ' |
Non-PCI Loans | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Accruing loans that were classified as TDRs | 5,019 | ' | 5,019 | ' | 5,853 |
Non-Accruing | 6,673 | ' | 6,673 | ' | 7,076 |
Loans classified as TDRs | 11,692 | ' | 11,692 | ' | 12,929 |
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Accruing loans that were classified as TDRs | 128 | ' | 128 | ' | 499 |
Non-Accruing | 89 | ' | 89 | ' | 109 |
Loans classified as TDRs | 217 | ' | 217 | ' | 608 |
Non-PCI Loans | Real Estate Secured | Commercial | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Accruing loans that were classified as TDRs | 370 | ' | 370 | ' | 225 |
Non-Accruing | 83 | ' | 83 | ' | 136 |
Loans classified as TDRs | 453 | ' | 453 | ' | 361 |
Number of TDRs | ' | 1 | 1 | 1 | ' |
Pre-Modification Outstanding Recorded Investment | ' | ' | 166 | ' | ' |
Post-Modification Outstanding Recorded Investment | ' | ' | 166 | ' | ' |
Non-PCI Loans | Real Estate Secured | Farmland | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Accruing loans that were classified as TDRs | 289 | ' | 289 | ' | ' |
Loans classified as TDRs | 289 | ' | 289 | ' | ' |
Non-PCI Loans | Real Estate Secured | Construction | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Accruing loans that were classified as TDRs | 380 | ' | 380 | ' | ' |
Loans classified as TDRs | 380 | ' | 380 | ' | ' |
Number of TDRs | 1 | ' | 1 | ' | ' |
Pre-Modification Outstanding Recorded Investment | 367 | ' | 367 | ' | ' |
Post-Modification Outstanding Recorded Investment | 367 | ' | 367 | ' | ' |
Non-PCI Loans | Real Estate Secured | Land | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Accruing loans that were classified as TDRs | 1,320 | ' | 1,320 | ' | 2,010 |
Non-Accruing | 5,103 | ' | 5,103 | ' | 5,883 |
Loans classified as TDRs | 6,423 | ' | 6,423 | ' | 7,893 |
Number of TDRs | 1 | ' | 3 | ' | ' |
Pre-Modification Outstanding Recorded Investment | 168 | ' | 444 | ' | ' |
Post-Modification Outstanding Recorded Investment | 168 | ' | 444 | ' | ' |
Non-PCI Loans | Commercial | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Pre-Modification Outstanding Recorded Investment | ' | 227 | ' | 227 | ' |
Post-Modification Outstanding Recorded Investment | ' | 227 | ' | 227 | ' |
Non-PCI Loans | Commercial | Commercial and industrial | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Accruing loans that were classified as TDRs | 2,426 | ' | 2,426 | ' | 3,119 |
Non-Accruing | 1,398 | ' | 1,398 | ' | 903 |
Loans classified as TDRs | 3,824 | ' | 3,824 | ' | 4,022 |
Number of TDRs | 4 | ' | 14 | 3 | ' |
Pre-Modification Outstanding Recorded Investment | 377 | ' | 1,604 | 91 | ' |
Post-Modification Outstanding Recorded Investment | 377 | ' | 1,604 | 91 | ' |
Non-PCI Loans | Commercial | Agriculture | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Accruing loans that were classified as TDRs | 36 | ' | 36 | ' | ' |
Non-Accruing | ' | ' | ' | ' | 45 |
Loans classified as TDRs | 36 | ' | 36 | ' | 45 |
Number of TDRs | ' | 1 | 1 | 2 | ' |
Pre-Modification Outstanding Recorded Investment | ' | 49 | 662 | 67 | ' |
Post-Modification Outstanding Recorded Investment | ' | 49 | 662 | 67 | ' |
Non-PCI Loans | Installment loans to individuals | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Accruing loans that were classified as TDRs | 70 | ' | 70 | ' | ' |
Loans classified as TDRs | 70 | ' | 70 | ' | ' |
Number of TDRs | ' | ' | 1 | ' | ' |
Pre-Modification Outstanding Recorded Investment | ' | ' | 73 | ' | ' |
Post-Modification Outstanding Recorded Investment | ' | ' | 73 | ' | ' |
PCI Loans | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Accruing loans that were classified as TDRs | 226 | ' | 226 | ' | ' |
Non-Accruing | 118 | ' | 118 | ' | ' |
Loans classified as TDRs | 344 | ' | 344 | ' | ' |
PCI Loans | Real Estate Secured | Commercial | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Accruing loans that were classified as TDRs | 226 | ' | 226 | ' | ' |
Loans classified as TDRs | 226 | ' | 226 | ' | ' |
Number of TDRs | ' | ' | 1 | ' | ' |
Pre-Modification Outstanding Recorded Investment | ' | ' | 230 | ' | ' |
Post-Modification Outstanding Recorded Investment | ' | ' | 230 | ' | ' |
PCI Loans | Commercial | Commercial and industrial | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Non-Accruing | 118 | ' | 118 | ' | ' |
Loans classified as TDRs | 118 | ' | 118 | ' | ' |
Number of TDRs | ' | ' | 2 | ' | ' |
Pre-Modification Outstanding Recorded Investment | ' | ' | 138 | ' | ' |
Post-Modification Outstanding Recorded Investment | ' | ' | $138 | ' | ' |
Loans_and_Allowance_for_Loan_a5
Loans and Allowance for Loan and Lease Losses (Details 4) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | $1,151,576 | $827,484 |
Real Estate Secured | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 954,893 | ' |
Real Estate Secured | Purchased credit impaired loans | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 8,147 | ' |
Real Estate Secured | Multi-family residential | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 76,821 | ' |
Real Estate Secured | Residential 1 to 4 family | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 121,061 | ' |
Real Estate Secured | Home equity lines of credit | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 37,967 | ' |
Real Estate Secured | Commercial | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 582,600 | ' |
Real Estate Secured | Farmland | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 93,965 | ' |
Real Estate Secured | Land | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 24,634 | ' |
Real Estate Secured | Construction | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 17,845 | ' |
Commercial | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 188,085 | ' |
Commercial | Commercial and industrial | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 143,861 | ' |
Commercial | Agriculture | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 44,204 | ' |
Commercial | Other | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 20 | ' |
Installment loans to individuals | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 8,198 | ' |
Overdrafts | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 400 | ' |
Non-PCI Loans | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 1,140,227 | ' |
Non-PCI Loans | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 1,089,127 | 780,610 |
Non-PCI Loans | Credit Risk Grades, Special Mention | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 16,601 | 11,383 |
Non-PCI Loans | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 34,342 | 35,491 |
Non-PCI Loans | Credit Risk Grades, Doubtful | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 157 | ' |
Non-PCI Loans | Real Estate Secured | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 946,746 | 672,061 |
Non-PCI Loans | Real Estate Secured | Multi-family residential | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 76,821 | 31,140 |
Non-PCI Loans | Real Estate Secured | Multi-family residential | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 75,627 | 30,560 |
Non-PCI Loans | Real Estate Secured | Multi-family residential | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 1,194 | 580 |
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 120,500 | 88,904 |
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 119,613 | 87,350 |
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family | Credit Risk Grades, Special Mention | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 202 | 490 |
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 685 | 1,064 |
Non-PCI Loans | Real Estate Secured | Home equity lines of credit | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 37,886 | 31,178 |
Non-PCI Loans | Real Estate Secured | Home equity lines of credit | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 37,539 | 31,021 |
Non-PCI Loans | Real Estate Secured | Home equity lines of credit | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 347 | 157 |
Non-PCI Loans | Real Estate Secured | Commercial | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 577,639 | 432,203 |
Non-PCI Loans | Real Estate Secured | Commercial | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 549,595 | 414,058 |
Non-PCI Loans | Real Estate Secured | Commercial | Credit Risk Grades, Special Mention | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 11,890 | 3,574 |
Non-PCI Loans | Real Estate Secured | Commercial | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 16,154 | 14,571 |
Non-PCI Loans | Real Estate Secured | Farmland | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 92,292 | 50,414 |
Non-PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 88,030 | 47,988 |
Non-PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Special Mention | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 2,680 | 975 |
Non-PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 1,582 | 1,451 |
Non-PCI Loans | Real Estate Secured | Land | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 23,763 | 24,523 |
Non-PCI Loans | Real Estate Secured | Land | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 17,197 | 15,244 |
Non-PCI Loans | Real Estate Secured | Land | Credit Risk Grades, Special Mention | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | ' | 862 |
Non-PCI Loans | Real Estate Secured | Land | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 6,566 | 8,417 |
Non-PCI Loans | Real Estate Secured | Construction | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 17,845 | 13,699 |
Non-PCI Loans | Real Estate Secured | Construction | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 17,467 | 13,699 |
Non-PCI Loans | Commercial | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 184,883 | 151,845 |
Non-PCI Loans | Commercial | Commercial and industrial | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 142,076 | 119,121 |
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 133,940 | 105,991 |
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Special Mention | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 995 | 5,276 |
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 6,984 | 7,854 |
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Doubtful | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 157 | ' |
Non-PCI Loans | Commercial | Agriculture | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 42,787 | 32,686 |
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 41,609 | 31,279 |
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Special Mention | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 456 | 196 |
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 722 | 1,211 |
Non-PCI Loans | Commercial | Other | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 20 | 38 |
Non-PCI Loans | Commercial | Other | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 20 | 38 |
Non-PCI Loans | Installment loans to individuals | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 8,198 | 3,246 |
Non-PCI Loans | Installment loans to individuals | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 8,090 | 3,050 |
Non-PCI Loans | Installment loans to individuals | Credit Risk Grades, Special Mention | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | ' | 10 |
Non-PCI Loans | Installment loans to individuals | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 108 | 186 |
Non-PCI Loans | Overdrafts | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 400 | 332 |
Non-PCI Loans | Overdrafts | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 400 | 332 |
PCI Loans | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 11,349 | ' |
PCI Loans | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 478 | ' |
PCI Loans | Credit Risk Grades, Special Mention | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 102 | ' |
PCI Loans | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 10,673 | ' |
PCI Loans | Credit Risk Grades, Doubtful | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 96 | ' |
PCI Loans | Real Estate Secured | Residential 1 to 4 family | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 561 | ' |
PCI Loans | Real Estate Secured | Residential 1 to 4 family | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 561 | ' |
PCI Loans | Real Estate Secured | Home equity lines of credit | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 81 | ' |
PCI Loans | Real Estate Secured | Home equity lines of credit | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 81 | ' |
PCI Loans | Real Estate Secured | Commercial | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 4,961 | ' |
PCI Loans | Real Estate Secured | Commercial | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 127 | ' |
PCI Loans | Real Estate Secured | Commercial | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 4,834 | ' |
PCI Loans | Real Estate Secured | Farmland | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 1,673 | ' |
PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 1,673 | ' |
PCI Loans | Real Estate Secured | Land | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 871 | ' |
PCI Loans | Real Estate Secured | Land | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 310 | ' |
PCI Loans | Real Estate Secured | Land | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 561 | ' |
PCI Loans | Commercial | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 3,202 | ' |
PCI Loans | Commercial | Commercial and industrial | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 1,785 | ' |
PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Pass | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 41 | ' |
PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Special Mention | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 102 | ' |
PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 1,546 | ' |
PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Doubtful | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 96 | ' |
PCI Loans | Commercial | Agriculture | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | 1,417 | ' |
PCI Loans | Commercial | Agriculture | Credit Risk Grades, Substandard | ' | ' |
Non-PCI loans by the internal risk grading system | ' | ' |
Total Gross loans | $1,417 | ' |
Loans_and_Allowance_for_Loan_a6
Loans and Allowance for Loan and Lease Losses (Details 5) (USD $) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | Non-PCI Loans | PCI Loans | PCI Loans | PCI Loans | PCI Loans | PCI Loans | PCI Loans | PCI Loans | PCI Loans | PCI Loans | PCI Loans | ||||
Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Commercial | Installment loans to individuals | Installment loans to individuals | Installment loans to individuals | Overdrafts | Overdrafts | Commercial and industrial | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Commercial | Commercial | ||||||||
Multi-family residential | Multi-family residential | Residential 1 to 4 family | Residential 1 to 4 family | Residential 1 to 4 family | Home equity lines of credit | Home equity lines of credit | Commercial | Commercial | Commercial | Farmland | Farmland | Land | Land | Land | Construction | Construction | Commercial and industrial | Commercial and industrial | Commercial and industrial | Agriculture | Agriculture | Agriculture | Other | Other | Residential 1 to 4 family | Home equity lines of credit | Commercial | Farmland | Land | Commercial and industrial | Agriculture | |||||||||||||||
Aging of loans held for investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current | $1,141,266 | ' | ' | $1,130,313 | $817,265 | ' | $76,821 | $31,140 | $120,403 | $88,455 | ' | $37,786 | $31,178 | $575,701 | $431,531 | ' | $92,292 | $50,414 | $18,537 | $18,613 | ' | $17,845 | $13,699 | $140,254 | $116,841 | ' | $42,102 | $31,897 | ' | $20 | $38 | $8,152 | $3,127 | ' | $400 | $332 | $10,953 | ' | ' | $561 | $81 | $4,961 | $1,673 | $871 | $1,389 | $1,417 |
30-59 | 36 | ' | ' | 36 | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36 | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
60-89 | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-Accruing | 10,274 | ' | 7,076 | 9,878 | 10,117 | ' | ' | ' | 97 | 449 | ' | 100 | ' | 1,938 | 672 | ' | ' | ' | 5,226 | 5,910 | ' | ' | ' | 1,786 | 2,180 | ' | 685 | 789 | ' | ' | ' | 46 | 117 | ' | ' | ' | 396 | ' | ' | ' | ' | ' | ' | ' | 396 | ' |
Total | 1,151,576 | ' | ' | 1,140,227 | 827,484 | ' | 76,821 | 31,140 | 120,500 | 88,904 | ' | 37,886 | 31,178 | 577,639 | 432,203 | ' | 92,292 | 50,414 | 23,763 | 24,523 | ' | 17,845 | 13,699 | 142,076 | 119,121 | ' | 42,787 | 32,686 | ' | 20 | 38 | 8,198 | 3,246 | ' | 400 | 332 | 11,349 | ' | ' | 561 | 81 | 4,961 | 1,673 | 871 | 1,785 | 1,417 |
Unpaid Principal Balance | ' | ' | ' | 23,116 | 21,711 | 21,098 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,766 | 3,814 | 10,952 | 888 | 98 | 6,903 | 2,044 | 1,019 | 2,322 | 1,492 |
Carrying Amount | ' | ' | ' | 2,082 | 3,154 | 6,825 | ' | ' | ' | ' | 17 | ' | ' | 58 | ' | 91 | ' | ' | 1,764 | 2,531 | 3,854 | ' | ' | 260 | 623 | 2,826 | ' | ' | 27 | ' | ' | ' | ' | 10 | ' | ' | 11,349 | 3,202 | 8,147 | 561 | 81 | 4,961 | 1,673 | 871 | 1,785 | 1,417 |
Contractually required payments receivable of loans purchased during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractually required payments including interest | ' | 19,827 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonaccretable difference | ' | -2,320 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash flows expected to be collected | ' | 17,507 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretable difference | ' | -4,673 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value at acquisition | ' | 12,834 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretable yield, or income expected to be collected | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
New loans purchased | 4,673 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of income | -796 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassifications from nonaccretable difference | 619 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period | $4,496 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans_and_Allowance_for_Loan_a7
Loans and Allowance for Loan and Lease Losses (Details 6) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | $16,635 | $17,934 | $17,859 | $18,118 | ' |
Charge-offs | -12 | -984 | -1,777 | -1,851 | ' |
Recoveries | 164 | 518 | 705 | 1,201 | ' |
Balance, at the end of the period | 16,787 | 17,468 | 16,787 | 17,468 | ' |
Amount of allowance attributed to: | ' | ' | ' | ' | ' |
Allowance for loan and lease losses individually evaluated for impairment | 2,082 | ' | 2,082 | ' | 3,155 |
Allowance for loan and lease losses collectively evaluated for impairment | 14,705 | ' | 14,705 | ' | 14,704 |
Recorded investment in loan individually evaluated for impairment | 14,920 | ' | 14,920 | ' | 14,449 |
Recorded investment in loan collectively evaluated for impairment | 1,125,259 | ' | 1,125,259 | ' | 813,035 |
Loans acquired with deteriorated credit quality | 11,397 | ' | 11,397 | ' | ' |
Total gross loans held for investment | 1,151,576 | ' | 1,151,576 | ' | 827,484 |
MISN | ' | ' | ' | ' | ' |
Amount of allowance attributed to: | ' | ' | ' | ' | ' |
Total gross loans held for investment | 244,900 | ' | 244,900 | ' | ' |
Heritage Oaks | ' | ' | ' | ' | ' |
Amount of allowance attributed to: | ' | ' | ' | ' | ' |
Total gross loans held for investment | 906,600 | ' | 906,600 | ' | ' |
Total allowance to gross loans (as a percent) | 1.90% | ' | 1.90% | ' | ' |
Commercial | ' | ' | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | 4,436 | 6,584 | 4,781 | 6,154 | ' |
Charge-offs | ' | -736 | -650 | -1,137 | ' |
Recoveries | 174 | 475 | 628 | 947 | ' |
Provision for loan losses | -296 | -197 | -445 | 162 | ' |
Balance, at the end of the period | 4,314 | 6,126 | 4,314 | 6,126 | ' |
Amount of allowance attributed to: | ' | ' | ' | ' | ' |
Allowance for loan and lease losses individually evaluated for impairment | 260 | ' | 260 | ' | 623 |
Allowance for loan and lease losses collectively evaluated for impairment | 4,054 | ' | 4,054 | ' | 4,158 |
Recorded investment in loan individually evaluated for impairment | 4,925 | ' | 4,925 | ' | 5,291 |
Recorded investment in loan collectively evaluated for impairment | 179,945 | ' | 179,945 | ' | 146,554 |
Loans acquired with deteriorated credit quality | 3,215 | ' | 3,215 | ' | ' |
Total gross loans held for investment | 188,085 | ' | 188,085 | ' | ' |
Installment loans to individuals | ' | ' | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | 73 | 100 | 99 | 64 | ' |
Charge-offs | -2 | -207 | -8 | -380 | ' |
Recoveries | 1 | 12 | 10 | 64 | ' |
Provision for loan losses | 2 | 183 | -27 | 340 | ' |
Balance, at the end of the period | 74 | 88 | 74 | 88 | ' |
Amount of allowance attributed to: | ' | ' | ' | ' | ' |
Allowance for loan and lease losses collectively evaluated for impairment | 74 | ' | 74 | ' | 99 |
Recorded investment in loan individually evaluated for impairment | 117 | ' | 117 | ' | ' |
Recorded investment in loan collectively evaluated for impairment | 8,081 | ' | 8,081 | ' | 3,246 |
Total gross loans held for investment | 8,198 | ' | 8,198 | ' | ' |
All other loans | ' | ' | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | 27 | 31 | 32 | 38 | ' |
Provision for loan losses | 8 | 1 | 3 | -6 | ' |
Balance, at the end of the period | 35 | 32 | 35 | 32 | ' |
Amount of allowance attributed to: | ' | ' | ' | ' | ' |
Allowance for loan and lease losses collectively evaluated for impairment | 35 | ' | 35 | ' | 32 |
Recorded investment in loan collectively evaluated for impairment | 400 | ' | 400 | ' | 332 |
Unallocated | ' | ' | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | 298 | 125 | 262 | ' | ' |
Provision for loan losses | 205 | -65 | 241 | 60 | ' |
Balance, at the end of the period | 503 | 60 | 503 | 60 | ' |
Amount of allowance attributed to: | ' | ' | ' | ' | ' |
Allowance for loan and lease losses collectively evaluated for impairment | 503 | ' | 503 | ' | 262 |
Land | ' | ' | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | 2,944 | 4,431 | 3,402 | 4,670 | ' |
Charge-offs | ' | ' | ' | -34 | ' |
Recoveries | 8 | 11 | 30 | 45 | ' |
Provision for loan losses | -727 | 189 | -1,207 | -50 | ' |
Balance, at the end of the period | 2,225 | 4,631 | 2,225 | 4,631 | ' |
Amount of allowance attributed to: | ' | ' | ' | ' | ' |
Allowance for loan and lease losses individually evaluated for impairment | 1,764 | ' | 1,764 | ' | 2,532 |
Allowance for loan and lease losses collectively evaluated for impairment | 461 | ' | 461 | ' | 870 |
Recorded investment in loan individually evaluated for impairment | 6,547 | ' | 6,547 | ' | 7,696 |
Recorded investment in loan collectively evaluated for impairment | 17,213 | ' | 17,213 | ' | 16,827 |
Loans acquired with deteriorated credit quality | 874 | ' | 874 | ' | ' |
Other real estate secured | ' | ' | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | 8,857 | 6,663 | 9,283 | 7,192 | ' |
Charge-offs | -10 | -41 | -1,119 | -300 | ' |
Recoveries | -19 | 20 | 37 | 145 | ' |
Provision for loan losses | 808 | -112 | 1,435 | -507 | ' |
Balance, at the end of the period | 9,636 | 6,530 | 9,636 | 6,530 | ' |
Amount of allowance attributed to: | ' | ' | ' | ' | ' |
Allowance for loan and lease losses individually evaluated for impairment | 58 | ' | 58 | ' | ' |
Allowance for loan and lease losses collectively evaluated for impairment | 9,578 | ' | 9,578 | ' | 9,283 |
Recorded investment in loan individually evaluated for impairment | 3,331 | ' | 3,331 | ' | 1,462 |
Recorded investment in loan collectively evaluated for impairment | 919,620 | ' | 919,620 | ' | 646,076 |
Loans acquired with deteriorated credit quality | $7,308 | ' | $7,308 | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Income Taxes | ' | ' |
Deferred tax assets | $27,914,000 | $21,624,000 |
Deferred tax assets due to the MISN merger | $11,900,000 | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Goodwill and Other Intangible Assets | ' | ' | ' | ' | ' |
Goodwill | $24,536 | ' | $24,536 | ' | $11,237 |
Core deposit intangible | ' | ' | ' | ' | ' |
Amortization of CDI | 297 | 100 | 760 | 300 | ' |
Gross Carrying Amount | 9,261 | ' | 9,261 | ' | 4,200 |
Acquired CDI's | ' | ' | 5,060 | ' | ' |
Accumulated Amortization | -3,617 | ' | -3,617 | ' | ' |
Projected Net Carrying Amount | 5,644 | ' | 5,644 | ' | ' |
Estimated Amortization | ' | ' | ' | ' | ' |
Year 2014 | -1,056 | ' | -1,056 | ' | ' |
Year 2015 | -1,049 | ' | -1,049 | ' | ' |
Year 2016 | -944 | ' | -944 | ' | ' |
Year 2017 | -588 | ' | -588 | ' | ' |
Year 2018 | -549 | ' | -549 | ' | ' |
Year 2019 | -522 | ' | -522 | ' | ' |
Year 2014 | ' | ' | ' | ' | ' |
Core deposit intangible | ' | ' | ' | ' | ' |
Projected Net Carrying Amount | 5,348 | ' | 5,348 | ' | 1,344 |
Year 2015 | ' | ' | ' | ' | ' |
Core deposit intangible | ' | ' | ' | ' | ' |
Projected Net Carrying Amount | 4,299 | ' | 4,299 | ' | 5,348 |
Year 2016 | ' | ' | ' | ' | ' |
Core deposit intangible | ' | ' | ' | ' | ' |
Projected Net Carrying Amount | 3,355 | ' | 3,355 | ' | 4,299 |
Year 2017 | ' | ' | ' | ' | ' |
Core deposit intangible | ' | ' | ' | ' | ' |
Projected Net Carrying Amount | 2,767 | ' | 2,767 | ' | 3,355 |
Year 2018 | ' | ' | ' | ' | ' |
Core deposit intangible | ' | ' | ' | ' | ' |
Projected Net Carrying Amount | 2,218 | ' | 2,218 | ' | 2,767 |
Year 2019 | ' | ' | ' | ' | ' |
Core deposit intangible | ' | ' | ' | ' | ' |
Projected Net Carrying Amount | $1,696 | ' | $1,696 | ' | $2,218 |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Share-Based Compensation Plans | ' | ' | ' | ' | ' |
Number of share-based employee compensation plans | 2 | ' | 2 | ' | ' |
Summary of the expenses the Company has recognized related to share-based compensation | ' | ' | ' | ' | ' |
Share-based compensation expense | $257 | $148 | $723 | $391 | ' |
Unrecognized compensation expense | 2,223 | 1,537 | 2,223 | 1,537 | ' |
Stock option | ' | ' | ' | ' | ' |
Summary of the expenses the Company has recognized related to share-based compensation | ' | ' | ' | ' | ' |
Share-based compensation expense | 109 | 68 | 370 | 183 | ' |
Unrecognized compensation expense | 1,156 | 762 | 1,156 | 762 | ' |
Weighted-average period over which expense is expected to be recognized | ' | ' | '2 years 10 months 24 days | ' | ' |
Number of shares | ' | ' | ' | ' | ' |
Options outstanding, at the beginning of the period (in shares) | ' | ' | 562,257 | ' | ' |
Granted (in shares) | ' | ' | 312,582 | ' | ' |
Forfeited (in shares) | ' | ' | -68,082 | ' | ' |
Expired (in shares) | ' | ' | -2,604 | ' | ' |
Exercised (in shares) | ' | ' | -44,217 | ' | ' |
Options outstanding, at the end of the period (in shares) | 759,936 | ' | 759,936 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' |
Options outstanding, at the beginning of the period (in dollars per share) | ' | ' | $6.34 | ' | ' |
Granted (in dollars per share) | ' | ' | $7.41 | ' | ' |
Forfeited (in dollars per share) | ' | ' | $8.03 | ' | ' |
Expired (in dollars per share) | ' | ' | $10.12 | ' | ' |
Exercised (in dollars per share) | ' | ' | $3.60 | ' | ' |
Options outstanding, at the end of the period (in dollars per share) | $6.78 | ' | $6.78 | ' | ' |
Options Available for Grant (in shares) | 2,021,355 | ' | 2,021,355 | ' | 1,593,616 |
Options vested or expected to vest | ' | ' | ' | ' | ' |
Shares | 721,414 | ' | 721,414 | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $6.77 | ' | $6.77 | ' | ' |
Weighted Average Remaining Contractual Life | ' | ' | '7 years 9 months 11 days | ' | ' |
Aggregate Intrinsic Value | 731,352 | ' | 731,352 | ' | ' |
Options exercisable | ' | ' | ' | ' | ' |
Shares | 310,873 | ' | 310,873 | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $6.64 | ' | $6.64 | ' | ' |
Weighted Average Remaining Contractual Life | ' | ' | '6 years | ' | ' |
Aggregate Intrinsic Value | 576,739 | ' | 576,739 | ' | ' |
Aggregate intrinsic value of options exercised | ' | ' | ' | ' | ' |
Aggregate intrinsic value of options exercised | ' | ' | 174 | ' | ' |
Assumptions used in the calculation of the weighted average fair value of options granted | ' | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | 49.83% | 55.32% | ' |
Expected term | ' | ' | '5 years 7 months 28 days | '6 years | ' |
Dividend yield (as a percent) | ' | ' | 0.59% | 0.00% | ' |
Risk free rate (as a percent) | ' | ' | 1.76% | 1.55% | ' |
Weighted-average grant date fair value (in dollars per share) | ' | ' | $3.39 | $3.31 | ' |
Restricted stock | ' | ' | ' | ' | ' |
Summary of the expenses the Company has recognized related to share-based compensation | ' | ' | ' | ' | ' |
Share-based compensation expense | 148 | 80 | 353 | 208 | ' |
Unrecognized compensation expense | $1,067 | $775 | $1,067 | $775 | ' |
Weighted-average period over which expense is expected to be recognized | ' | ' | '2 years 4 months 24 days | ' | ' |
Number of Shares | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in shares) | ' | ' | 195,048 | ' | ' |
Granted (in shares) | ' | ' | 124,744 | ' | ' |
Vested (in shares) | ' | ' | -32,005 | ' | ' |
Forfeited (in shares) | ' | ' | -25,862 | ' | ' |
Balance at the end of the period (in shares) | 261,925 | ' | 261,925 | ' | ' |
Average Grant Date fair Value | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | ' | ' | $4.87 | ' | ' |
Granted (in dollars per share) | ' | ' | $7.37 | ' | ' |
Vested (in dollars per share) | ' | ' | $6.41 | ' | ' |
Forfeited (in dollars per share) | ' | ' | $5.80 | ' | ' |
Balance at the end of the period (in dollars per share) | $5.78 | ' | $5.78 | ' | ' |
Performance based grant (in shares) | ' | ' | 21,241 | ' | ' |
Restricted stock | Minimum | 2005 Plan | ' | ' | ' | ' | ' |
Number of shares | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '3 years | ' | ' |
Restricted stock | Maximum | 2005 Plan | ' | ' | ' | ' | ' |
Number of shares | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '5 years | ' | ' |
Shareholders_Equity_Details
Shareholders' Equity (Details) | Sep. 30, 2014 | Dec. 31, 2013 |
Leverage ratio | ' | ' |
Regulatory Standard, Well Capitalized Ratio (as a percent) | 5.00% | ' |
Actual regulatory, Leverage ratio (as a percent) | 10.00% | 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) | 12.87% | 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) | 14.12% | 14.17% |
Heritage Oaks Bank | ' | ' |
Leverage ratio | ' | ' |
Actual regulatory, Leverage ratio (as a percent) | 9.77% | 9.82% |
Tier I capital to risk weighted assets | ' | ' |
Actual regulatory, Tier I capital to risk weighted assets (as a percent) | 12.58% | 12.42% |
Total risk based capital to risk weighted assets | ' | ' |
Actual regulatory, Total risk based capital to risk weighted assets (as a percent) | 13.83% | 13.68% |
Shareholders_Equity_Details_2
Shareholders' Equity (Details 2) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||
Mar. 12, 2010 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Oct. 29, 2014 | Mar. 12, 2010 | Sep. 30, 2014 | Oct. 29, 2014 | |
Subsequent Events | Series C preferred stock | Series C preferred stock | Series C preferred stock | |||||
Subsequent Events | ||||||||
Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | 5,000,000 | 5,000,000 | ' | ' | ' | ' |
Issuance of stock (in shares) | ' | ' | ' | ' | ' | 1,189,538 | ' | ' |
Gross proceeds from private placement | $60,000,000 | ' | ' | ' | ' | $3,600,000 | ' | ' |
Preferred stock conversion ratio | ' | ' | ' | ' | ' | ' | 1 | 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 | ' | ' | ' | ' | ' | ' | 200,000 | ' |
Preferred stock dividends paid | ' | $708,000 | ' | ' | ' | ' | $36,000 | ' |
Conversion of Series C preferred stock to common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | 1,189,538 |
Period from the closing of the transactions contemplated by the Exchange Agreement to file , a registration statement on Form S-3 under the Securities Act | ' | ' | ' | ' | '30 days | ' | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Calculation of both basic and diluted earnings (loss) per common share | ' | ' | ' | ' |
Net income | $3,429 | $2,761 | $4,613 | $9,207 |
Dividends and accretion on preferred stock | ' | -181 | ' | -898 |
Net income available to common shareholders | $3,429 | $2,580 | $4,613 | $8,309 |
Weighted average shares outstanding | 33,992,465 | 26,362,467 | 32,322,194 | 26,327,948 |
Basic earnings per common share (in dollars per share) | $0.10 | $0.10 | $0.14 | $0.32 |
Dilutive effect of share-based compensation awards (in shares) | 153,735 | 187,101 | 197,324 | 212,156 |
Weighted average diluted shares outstanding | 34,146,200 | 26,549,568 | 32,519,518 | 26,540,104 |
Diluted earnings per common share (in dollars per share) | $0.10 | $0.10 | $0.14 | $0.31 |
Stock options | ' | ' | ' | ' |
Shares excluded from the calculation of diluted earnings per share | ' | ' | ' | ' |
Shares excluded from the calculation of diluted earnings per share | 35,000 | 418,000 | 114,000 | 358,000 |
Restructuring_Activities_Detai
Restructuring Activities (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 |
MISN | MISN | Restructuring and integration plan | Restructuring and integration plan | Restructuring and integration plan | Restructuring and integration plan | Restructuring and integration plan | Restructuring and integration plan | Restructuring and integration plan | Restructuring and integration plan | Restructuring and integration plan | Restructuring and integration plan | Restructuring and integration plan | Restructuring and integration plan | Restructuring and integration plan | Restructuring and integration plan | |
System integration | System integration | System integration | Fixed asset consolidation | Fixed asset consolidation | Fixed asset consolidation | Contract cancellation costs | Contract cancellation costs | Employee termination and retention | Employee termination and retention | Employee termination and retention | ||||||
Restructuring activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Costs Expected To Be incurred | ' | ' | ' | ' | $8,547 | ' | ' | $578 | ' | ' | $2,387 | ' | $1,746 | ' | ' | $3,836 |
Amount Incurred | ' | ' | 515 | 6,870 | 717 | -20 | 223 | 312 | -268 | 2,350 | 41 | 1,656 | 90 | 803 | 2,641 | 274 |
Cumulative Incurred | ' | ' | ' | ' | 8,102 | ' | ' | 515 | ' | ' | 2,123 | ' | 1,746 | ' | ' | 3,718 |
Balance, beginning of the period | 2,896 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
New charges | 930 | 8,759 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payments | -2,404 | -6,893 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other adjustments | -213 | -657 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, end of the period | $1,209 | $1,209 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (Heritage Oaks Bank, USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Outstanding financial commitments whose contractual amount represents credit risk | ' | ' |
Total commitments and standby letters of credit | $244,894,000 | $198,481,000 |
Outstanding financial fixed rate commitments | 39,600,000 | 31,600,000 |
Outstanding financial variable rate commitments | 205,300,000 | 166,900,000 |
Commitments to extend credit | ' | ' |
Outstanding financial commitments whose contractual amount represents credit risk | ' | ' |
Total commitments and standby letters of credit | 229,464,000 | 181,445,000 |
Standby letters of credit | ' | ' |
Outstanding financial commitments whose contractual amount represents credit risk | ' | ' |
Total commitments and standby letters of credit | $15,430,000 | $17,036,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended |
Sep. 30, 2014 | Oct. 29, 2014 | Sep. 30, 2014 | Oct. 29, 2014 | |
Subsequent Events | Series C preferred stock | Series C preferred stock | ||
Subsequent Events | ||||
Subsequent events | ' | ' | ' | ' |
Period from a "Change in Control" within which termination of employment will result in a "double-trigger" change in control payment | ' | '12 months | ' | ' |
Period from separation from bank during which Ms. Lagomarsino cannot induce any employee or customers to leave or otherwise interfere with or disrupt the relationships between the Bank and its employees, or divert or attempt to divert from the Bank any of its customers | ' | '1 year | ' | ' |
Preferred stock conversion ratio | ' | ' | 1 | 1 |
Cash dividend declared (in dollars per share) | $0.03 | $0.05 | ' | ' |