Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 27, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | HERITAGE OAKS BANCORP | |
Entity Central Index Key | 921547 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 33,950,518 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $14,743 | $12,548 |
Interest earning deposits in other banks | 60,735 | 23,032 |
Total cash and cash equivalents | 75,478 | 35,580 |
Investment securities available for sale, at fair value | 364,498 | 355,580 |
Loans held for sale, at lower of cost or fair value | 9,493 | 2,586 |
Gross loans held for investment | 1,207,319 | 1,193,483 |
Net deferred loan fees | -1,221 | -1,445 |
Allowance for loan and lease losses | -16,913 | -16,802 |
Net loans held for investment | 1,189,185 | 1,175,236 |
Premises held for sale | 38,107 | 37,820 |
Premises held for sale | 1,840 | 1,978 |
Deferred tax assets, net | 22,508 | 24,920 |
Bank-owned life insurance | 24,871 | 24,711 |
Federal Home Loan Bank stock | 7,853 | 7,853 |
Goodwill | 24,885 | 24,885 |
Other intangible assets | 5,085 | 5,347 |
Other assets | 12,791 | 13,631 |
Total assets | 1,776,594 | 1,710,127 |
Liabilities | ||
Non-interest bearing deposits | 484,106 | 461,479 |
Interest bearing deposits | 976,162 | 933,325 |
Total deposits | 1,460,268 | 1,394,804 |
Short term FHLB borrowing | 10,500 | 25,000 |
Long term FHLB borrowing | 83,054 | 70,558 |
Junior subordinated debentures | 13,286 | 13,233 |
Other liabilities | 7,543 | 8,592 |
Total liabilities | 1,574,651 | 1,512,187 |
Shareholders' equity | ||
Common stock, no par value; authorized: 100,000,000 shares; issued and outstanding: 33,905,518 shares and 33,905,060 shares at March 31, 2015 and December 31, 2014, respectively | 164,271 | 164,196 |
Additional paid in capital | 7,252 | 6,984 |
Retained earnings | 27,128 | 24,772 |
Accumulated other comprehensive income, net of tax of $1,623 and $677 as of March 31, 2015 and December 31, 2014, respectively | 2,236 | 932 |
Total shareholders' equity | 201,943 | 197,940 |
Total liabilities and shareholders' equity | 1,776,594 | 1,710,127 |
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: 348,697 shares and 348,697 shares at March 31, 2015 and December 31, 2014, respectively. | $1,056 | $1,056 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Preferred stock | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, no par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 33,950,518 | 33,905,060 |
Common stock, shares outstanding | 33,950,518 | 33,905,060 |
Accumulated other comprehensive loss, tax benefit (in dollars) | $1,623 | $677 |
Series C preferred stock | ||
Preferred stock | ||
Preferred stock, per share stated value (in dollars per share) | $3.25 | $3.25 |
Preferred stock, shares issued | 348,697 | 348,697 |
Preferred stock, shares outstanding | 348,697 | 348,697 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest Income | ||
Loans, including fees | $15,088 | $11,856 |
Investment securities | 1,667 | 1,590 |
Other interest-earning assets | 173 | 156 |
Total interest income | 16,928 | 13,602 |
Interest Expense | ||
Deposits | 889 | 815 |
Other borrowings | 541 | 336 |
Total interest expense | 1,430 | 1,151 |
Net interest income before provision for loan losses | 15,498 | 12,451 |
Net interest income after provision for loan and lease losses | 15,498 | 12,451 |
Non-Interest Income | ||
Fees and service charges | 1,207 | 1,135 |
Net gain on sale of mortgage loans | 386 | 188 |
Other mortgage fee income | 138 | 54 |
Gain (loss) on sale of investment securities | 505 | -2 |
Other income | 765 | 375 |
Total non-interest income | 3,001 | 1,750 |
Non-Interest Expense | ||
Salaries and employee benefits | 6,259 | 5,617 |
Occupancy and equipment | 1,587 | 1,465 |
Information technology | 601 | 695 |
Professional services | 1,406 | 733 |
Regulatory assessments | 297 | 204 |
Sales and marketing | 317 | 173 |
Foreclosed asset costs and write-downs | 11 | 72 |
Provision for mortgage loan repurchases | -10 | |
Amortization of intangible assets | 262 | 166 |
Merger, restructure, and integration | 32 | 7,115 |
Other expense | 1,051 | 798 |
Total non-interest expense | 11,813 | 17,038 |
Income (loss) before income taxes | 6,686 | -2,837 |
Income tax expense (benefit) | 2,617 | -1,074 |
Net income (loss) | $4,069 | ($1,763) |
Earnings (Loss) Per Common Share | ||
Basic (in dollars per share) | $0.12 | ($0.06) |
Diluted (in dollars per share) | $0.12 | ($0.06) |
Dividends Declared Per Common Share (in dollars per share) | $0.05 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||
Net income (loss) | $4,069 | ($1,763) |
Other comprehensive income (loss), net of tax: | ||
Unrealized holding gains on securities arising during the period | 2,755 | 2,797 |
Reclassification for net (gains) loss on investments included in net income | -505 | 2 |
Other comprehensive income, before income tax expense (benefit) | 2,250 | 2,799 |
Income tax expense (benefit) related to items of other comprehensive income | 946 | 1,150 |
Other comprehensive income | 1,304 | 1,649 |
Comprehensive income (loss) | $5,373 | ($114) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Shareholders' Equity (USD $) | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income/(loss) | Total |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2013 | $3,604 | $101,511 | $6,020 | $18,717 | ($3,425) | $126,427 |
Balance (in shares) at Dec. 31, 2013 | 25,397,780 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of common stock in merger (in dollars) | 60,255 | 60,255 | ||||
Issuance of common stock in merger (in shares) | 7,541,326 | |||||
Stock issuance costs | -290 | -290 | ||||
Exercise of stock options (in dollars) | 110 | 110 | ||||
Exercise of stock options (in shares) | 31,776 | |||||
Share-based compensation | 247 | 247 | ||||
Tax impact of share-based compensation expense | 5 | 5 | ||||
Net issuance of restricted share awards (in shares) | 32,532 | |||||
Net income (loss) | -1,763 | -1,763 | ||||
Other comprehensive income | 1,649 | 1,649 | ||||
Balance at Mar. 31, 2014 | 3,604 | 161,876 | 5,982 | 16,954 | -1,776 | 186,640 |
Balance (in shares) at Mar. 31, 2014 | 33,003,414 | |||||
Balance at Dec. 31, 2014 | 1,056 | 164,196 | 6,984 | 24,772 | 932 | 197,940 |
Balance (in shares) at Dec. 31, 2014 | 33,905,060 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Dividends declared ($0.05 per share for period ended March 31, 2015) | -1,713 | -1,713 | ||||
Exercise of stock options (in dollars) | 75 | 75 | ||||
Exercise of stock options (in shares) | 17,353 | |||||
Share-based compensation | 241 | 241 | ||||
Tax impact of share-based compensation expense | 27 | 27 | ||||
Net issuance of restricted share awards (in shares) | 28,105 | |||||
Net income (loss) | 4,069 | 4,069 | ||||
Other comprehensive income | 1,304 | 1,304 | ||||
Balance at Mar. 31, 2015 | $1,056 | $164,271 | $7,252 | $27,128 | $2,236 | $201,943 |
Balance (in shares) at Mar. 31, 2015 | 33,950,518 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Condensed Consolidated Statements of Shareholders' Equity | |
Dividends Declared Per Common Share (in dollars per share) | $0.05 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flows from Operating Activities: | ||
Net income (loss) | $4,069 | ($1,763) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 479 | 396 |
Write-downs on premises and equipment held for sale | 138 | 1,186 |
Amortization of premiums / discounts on investment securities, net | 1,440 | 1,028 |
Amortization of intangible assets | 262 | 166 |
Accretion of discount on acquired and purchased loans, net | -907 | -393 |
Amortization of premium on borrowings | 49 | 19 |
Share-based compensation expense | 241 | 247 |
(Gain) loss on sale of available for sale securities | -505 | 2 |
Originations of loans held for sale | -40,038 | -14,719 |
Proceeds from sale of loans held for sale | 33,517 | 10,948 |
Gain on sale of loans held for sale | -386 | -188 |
Net increase in bank owned life insurance | -160 | -131 |
Decrease in deferred tax asset | 1,466 | 44 |
Tax impact of share-based compensation | -27 | -5 |
Decrease in other assets and other liabilities, net | 257 | 2,038 |
Net cash used by operating activities | -105 | -1,125 |
Cash Flows from Investing Activities: | ||
Net cash and cash equivalents acquired in MISN merger | 28,891 | |
Purchase of securities, available for sale | -65,085 | -19,924 |
Sale of securities, available for sale | 46,528 | 15,562 |
Proceeds from principal paydowns of available for sale securities | 10,954 | 11,112 |
Increase in loans, net | -13,659 | -5,633 |
Recoveries on previously charged-off loans | 184 | 203 |
Purchase of property, premises and equipment, net | -772 | -725 |
Net cash (used in) provided by investing activities | -21,850 | 29,486 |
Cash Flows from Financing Activities: | ||
Increase in deposits, net | 65,464 | 20,433 |
Proceeds from Federal Home Loan Bank borrowing | 36,000 | 5,000 |
Repayments of Federal Home Loan Bank borrowing | -38,000 | -14,000 |
Proceeds from exercise of stock options including tax benefits | 102 | 115 |
Stock issuance costs | -290 | |
Dividends declared on common stock | -1,713 | |
Net cash provided by financing activities | 61,853 | 11,258 |
Net increase in cash and cash equivalents | 39,898 | 39,619 |
Cash and cash equivalents, beginning of period | 35,580 | 26,238 |
Cash and cash equivalents, end of period | 75,478 | 65,857 |
Cash Flow Information | ||
Interest paid | 1,348 | 1,081 |
Income taxes paid | 600 | |
Non-Cash Flow Information | ||
Change in unrealized gain on available for sale securities | 2,250 | 2,803 |
Loans transferred to foreclosed assets | 433 | 248 |
Premises transferred to held for sale | 1,730 | |
Common stock issued in MSN Transaction | $60,255 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
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, which is the Company’s sole operating subsidiary, operates branches within San Luis Obispo and Santa Barbara Counties and has a loan production office in Ventura County. The Bank offers traditional banking products such as checking, savings, money market accounts and certificates of deposit, as well as mortgage, commercial, and consumer loans to customers who are predominately small to medium-sized businesses and to individuals. As such, the Company is subject to a concentration risk associated with its banking operations in San Luis Obispo and Santa Barbara Counties, and to a lesser degree Ventura County. No one customer accounts for more than 10% of revenue or assets in any period presented and 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. Operating segments are aggregated into one as operating results for all segments are similar. 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 2014 Annual Report filed on Form 10-K with the Securities and Exchange Commission on March 6, 2015; file number 000-25020. | |
The condensed 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 are included in the Company’s results of operations beginning March 1, 2014. | |
Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. | |
Investment in Non-Consolidated Subsidiaries | |
The Company accounts for its investment in Heritage Oaks Capital Trust II, Mission Community Capital Trust I, and Santa Lucia Bancorp (CA) Capital Trust, as unconsolidated subsidiaries using the equity method of accounting, as the Company is not the primary beneficiary of the trust. Mission Community Capital Trust I and Santa Lucia Bancorp (CA) Capital Trust were acquired as part of the acquisition of Mission Community Bancorp on February 28, 2014. The sole purpose of each of these trusts is for the issuance of trust preferred securities. | |
Reclassifications | |
Certain 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. | |
Use of Estimates in the Preparation of Condensed Consolidated Financial Statements | |
The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), and general practices within the banking industry require management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. | |
Significant Accounting Policies | |
The significant accounting policies that the Company applies are detailed in Note 1. Summary of Significant Accounting Policies, of the Company’s 2014 Annual Report filed on Form 10-K. There have been no changes to these policies or their application during the three months ended March 31, 2015. | |
Recent Accounting Standards Updates | |
Recent Accounting Guidance Adopted | |
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 interim and annual periods, beginning after December 15, 2014. The adoption of this Update did not have a material impact on the Company’s consolidated financial statements. | |
On January 17, 2014, the FASB issued ASU No. 2014-04, Receivables – Troubled Debt Restructurings by Creditors. This ASU provides clarification that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for interim and annual periods, beginning after December 15, 2014. The adoption of this Update did not have a material impact on the Company’s consolidated financial statements. | |
Recent Accounting Guidance Not Yet Effective | |
In May 2014, the FASB issued 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. | |
Business_Combination
Business Combination | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
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 (the “MISN Transaction”). 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 banking 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 operating results for MISN are included in the Company’s condensed consolidated financial statements for the three months ended March 31, 2015, and from February 28, 2014 through March 31, 2014. As of December 31, 2014, adjustments to the fair value of assets acquired and liabilities assumed in the MISN Transaction were complete. | |||||
The following table presents unaudited pro forma financial information for the three months ended March 31, 2014, as if the MISN Transaction were reflected in the Company’s operating results beginning on January 1, 2014. 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. | |||||
Three Month Ended | |||||
March 31, 2014 | |||||
(dollars in thousands | |||||
except per share data) | |||||
Net interest income | $ | 15,379 | |||
Provision for loan and lease losses | - | ||||
Non-interest income | 2,364 | ||||
Non-interest expense | 20,473 | ||||
Loss before income tax benefit | -2,730 | ||||
Income tax benefit | -1,013 | ||||
Net loss | $ | -1,717 | |||
Loss Per Common Share | |||||
Basic | $ | -0.05 | |||
Diluted | $ | -0.05 | |||
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 assets the Company measures at fair value on a recurring basis: | |||||||||||||||||
Fair Value Measurements at the End of the | |||||||||||||||||
Reporting Period Using | |||||||||||||||||
As of | Quoted Prices in | Significant Other | Significant | ||||||||||||||
March 31, 2015 | 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 | $ | 42,112 | $ | - | $ | 42,112 | $ | - | |||||||||
Mortgage backed securities: | |||||||||||||||||
U.S government sponsored entities and agencies | 198,029 | - | 198,029 | - | |||||||||||||
Non-agency | 13,754 | - | 13,754 | - | |||||||||||||
State and municipal securities | 93,745 | - | 93,745 | - | |||||||||||||
Asset backed securities | 16,858 | - | 16,858 | - | |||||||||||||
Total assets measured on a recurring basis | $ | 364,498 | $ | - | $ | 364,498 | $ | - | |||||||||
Fair Value Measurements at the End of the | |||||||||||||||||
Reporting Period Using | |||||||||||||||||
As of | Quoted Prices in | Significant Other | Significant | ||||||||||||||
December 31, 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 | $ | 19,664 | $ | - | $ | 19,664 | $ | - | |||||||||
Mortgage backed securities: | |||||||||||||||||
U.S government sponsored entities and agencies | 215,398 | - | 215,398 | - | |||||||||||||
Non-agency | 11,901 | - | 11,901 | - | |||||||||||||
State and municipal securities | 82,592 | - | 82,592 | - | |||||||||||||
Asset backed securities | 26,025 | - | 26,025 | - | |||||||||||||
Total assets measured on a recurring basis | $ | 355,580 | $ | - | $ | 355,580 | $ | - | |||||||||
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, and were measured at fair value which was below cost. Certain impaired loans measured at fair value at December 31, 2014 are no longer recorded at fair value due to the borrower payments reducing the carrying value of these loans to less than fair value, and due to other impaired loans being evaluated under the discounted cash flow method versus the collateral method. 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. The discounted cash flow approach is used to measure impairment for certain impaired loans, because of their significant payment history and the global cash flow analysis performed on each borrower. | |||||||||||||||||
The following tables provide a summary of assets the Company measures at fair value on a non-recurring basis: | |||||||||||||||||
Fair Value Measurements at the End of the | |||||||||||||||||
Reporting Period Using | |||||||||||||||||
As of | Quoted Prices in | Significant Other | Significant | ||||||||||||||
March 31, 2015 | 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 | $ | 3,261 | $ | - | $ | - | $ | 3,261 | $ | (50 | ) | ||||||
Total assets measured on a non-recurring basis | $ | 3,261 | $ | - | $ | - | $ | 3,261 | $ | (50 | ) | ||||||
Fair Value Measurements at the End of the | |||||||||||||||||
Reporting Period Using | |||||||||||||||||
As of | Quoted Prices in | Significant Other | Significant | ||||||||||||||
December 31, 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 | 3,261 | - | - | 3,261 | (946 | ) | |||||||||||
Total assets measured on a non-recurring basis | $ | 4,586 | $ | - | $ | - | $ | 4,586 | $ | 80 | |||||||
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 three months ended March 31, 2015. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The following table provides a summary of the estimated fair value of financial instruments: | |||||||||||||||||
Fair Value Measurements at the End of the | |||||||||||||||||
Reporting Period Using | |||||||||||||||||
As of | Quoted Prices in | Significant Other | Significant | ||||||||||||||
March 31, 2015 | 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 | $ | 75,478 | $ | 75,478 | $ | - | $ | - | $ | 75,478 | |||||||
Investment securities available for sale | 364,498 | - | 364,498 | - | 364,498 | ||||||||||||
Federal Home Loan Bank stock | 7,853 | - | - | - | N/A | ||||||||||||
Loans receivable, net of deferred fees and costs | 1,206,098 | - | - | 1,226,517 | 1,226,517 | ||||||||||||
Loans held for sale | 9,493 | - | 9,493 | - | 9,493 | ||||||||||||
Accrued interest receivable | 5,731 | - | 1,805 | 3,926 | 5,731 | ||||||||||||
Liabilities | |||||||||||||||||
Non-interest bearing deposits | 484,106 | 484,106 | - | - | 484,106 | ||||||||||||
Interest bearing deposits | 976,162 | - | 978,984 | - | 978,984 | ||||||||||||
Federal Home Loan Bank advances | 93,554 | - | 94,628 | - | 94,628 | ||||||||||||
Junior subordinated debentures | 13,286 | - | - | 9,948 | 9,948 | ||||||||||||
Accrued interest payable | 483 | - | 483 | - | 483 | ||||||||||||
Fair Value Measurements at the End of the | |||||||||||||||||
Reporting Period Using | |||||||||||||||||
As of | Quoted Prices in | Significant Other | Significant | ||||||||||||||
December 31, 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 | $ | 35,580 | $ | 35,580 | $ | - | $ | - | $ | 35,580 | |||||||
Investment securities available for sale | 355,580 | - | 355,580 | - | 355,580 | ||||||||||||
Federal Home Loan Bank stock | 7,853 | - | - | - | N/A | ||||||||||||
Loans receivable, net of deferred fees and costs | 1,192,038 | - | - | 1,196,997 | 1,196,997 | ||||||||||||
Loans held for sale | 2,586 | - | 2,586 | - | 2,586 | ||||||||||||
Accrued interest receivable | 5,659 | - | 2,038 | 3,621 | 5,659 | ||||||||||||
Liabilities | |||||||||||||||||
Non interest-bearing deposits | 461,479 | 461,479 | - | - | 461,479 | ||||||||||||
Interest-bearing deposits | 933,325 | - | 936,151 | - | 936,151 | ||||||||||||
Federal Home Loan Bank advances | 95,558 | - | 96,679 | - | 96,679 | ||||||||||||
Junior subordinated debentures | 13,233 | - | - | 9,297 | 9,297 | ||||||||||||
Accrued interest payable | 401 | - | 401 | - | 401 | ||||||||||||
Information on off-balance-sheet instruments follows: | |||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
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 | $ | 221,969 | $ | 2,220 | $ | 253,275 | $ | 2,533 | |||||||||
Investment_Securities
Investment Securities | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
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: | |||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | 41,892 | $ | 356 | $ | -136 | $ | 42,112 | |||||||||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 197,383 | 1,519 | -873 | 198,029 | |||||||||||||||||
Non-agency | 13,767 | 17 | -30 | 13,754 | |||||||||||||||||
State and municipal securities | 90,546 | 3,245 | -46 | 93,745 | |||||||||||||||||
Asset backed securities | 17,051 | - | -193 | 16,858 | |||||||||||||||||
Total available for sale securities | $ | 360,639 | $ | 5,137 | $ | -1,278 | $ | 364,498 | |||||||||||||
December 31, 2014 | |||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | 19,562 | $ | 191 | $ | -89 | $ | 19,664 | |||||||||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 216,492 | 1,092 | -2,186 | 215,398 | |||||||||||||||||
Non-agency | 11,891 | 21 | -11 | 11,901 | |||||||||||||||||
State and municipal securities | 79,810 | 2,843 | -61 | 82,592 | |||||||||||||||||
Asset backed securities | 26,216 | - | -191 | 26,025 | |||||||||||||||||
Total available for sale securities | $ | 353,971 | $ | 4,147 | $ | -2,538 | $ | 355,580 | |||||||||||||
The following table provides a summary of investment securities in an unrealized loss position: | |||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
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 | $ | 21,829 | $ | -136 | $ | - | $ | - | $ | 21,829 | $ | (136 | ) | ||||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 41,843 | -409 | 31,851 | -464 | 73,694 | (873 | ) | ||||||||||||||
Non-agency | 9,082 | -30 | - | - | 9,082 | (30 | ) | ||||||||||||||
State and municipal securities | 4,744 | -41 | 978 | -5 | 5,722 | (46 | ) | ||||||||||||||
Asset backed securities | - | - | 16,858 | -193 | 16,858 | (193 | ) | ||||||||||||||
Total | $ | 77,498 | $ | -616 | $ | 49,687 | $ | -662 | $ | 127,185 | $ | (1,278 | ) | ||||||||
December 31, 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 | $ | 2,795 | $ | -17 | $ | 2,607 | $ | -72 | $ | 5,402 | $ | -89 | |||||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 50,583 | -670 | 58,753 | -1,516 | 109,336 | -2,186 | |||||||||||||||
Non-agency | 3,000 | -7 | 507 | -4 | 3,507 | -11 | |||||||||||||||
State and municipal securities | 5,899 | -47 | 2,245 | -14 | 8,144 | -61 | |||||||||||||||
Asset backed securities | - | - | 17,153 | -191 | 17,153 | -191 | |||||||||||||||
Total | $ | 62,277 | $ | -741 | $ | 81,265 | $ | -1,797 | $ | 143,542 | $ | -2,538 | |||||||||
A total of 51 securities were in an unrealized loss position as of March 31, 2015, and 57 as of December 31, 2014. As of March 31, 2015, the Company believes that unrealized losses in its investment securities portfolio 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 March 31, 2015, the Company does not believe unrealized losses related to any of its securities are other than temporary. | |||||||||||||||||||||
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 Three Months Ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Proceeds | $ | 47,033 | $ | 15,562 | |||||||||||||||||
Gross gains | 679 | 78 | |||||||||||||||||||
Gross losses | -174 | (80 | ) | ||||||||||||||||||
The income tax expense (benefit) related to net realized gains (losses) on the sale of securities was $212 thousand and $(1) thousand for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||||||
Maturities of Available for Sale Securities | |||||||||||||||||||||
The amortized cost and fair value maturities of available for sale investment securities at March 31, 2015 are shown below. The table reflects the expected lives of mortgage backed securities, based on the Company’s historical prepayment experience, because borrowers who are party to loans underlying these securities may have the right to prepay obligations without prepayment penalties. Therefore actual maturities may differ from contractual maturities. Contractual maturities are reflected for all other security types. | |||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||
Amortized | Amortized | ||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Due one year or less | $ | 45,265 | $ | 45,608 | $ | 38,674 | $ | 38,587 | |||||||||||||
Due after one year through five years | 120,027 | 120,832 | 113,081 | 112,926 | |||||||||||||||||
Due after five years through ten years | 145,719 | 148,602 | 137,909 | 140,115 | |||||||||||||||||
Due after ten years | 49,628 | 49,456 | 64,307 | 63,952 | |||||||||||||||||
Total | $ | 360,639 | $ | 364,498 | $ | 353,971 | $ | 355,580 | |||||||||||||
Securities having an amortized cost and a fair value of $110.7 million and $112.9 million, respectively, at March 31, 2015, and $67.3 million and $72.5 million, respectively, at December 31, 2014 were pledged to secure public deposits. As of March 31, 2015 and December 31, 2014, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of total securities. | |||||||||||||||||||||
The following table summarizes earnings on both taxable and tax-exempt investment securities: | |||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Taxable earnings on investment securities | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | 135 | $ | 48 | |||||||||||||||||
Mortgage backed securities | 854 | 1,025 | |||||||||||||||||||
State and municipal securities | 62 | - | |||||||||||||||||||
Corporate debt securities | - | 3 | |||||||||||||||||||
Asset backed securities | 47 | 75 | |||||||||||||||||||
Non-taxable earnings on investment securities | |||||||||||||||||||||
State and municipal securities | 569 | 439 | |||||||||||||||||||
Total | $ | 1,667 | $ | 1,590 | |||||||||||||||||
Loans_and_Allowance_for_Loan_a
Loans and Allowance for Loan and Lease Losses | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
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: | ||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||
Non-PCI | PCI | Non-PCI | PCI | |||||||||||||||||||
Loans | Loans | Total | Loans | Loans | Total | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Multi-family residential | $ | 77,684 | $ | - | $ | 77,684 | $ | 78,645 | $ | - | $ | 78,645 | ||||||||||
Residential 1 to 4 family | 142,928 | 562 | 143,490 | 126,640 | 561 | 127,201 | ||||||||||||||||
Home equity lines of credit | 35,928 | - | 35,928 | 38,252 | - | 38,252 | ||||||||||||||||
Commercial | 569,783 | 5,753 | 575,536 | 584,056 | 4,416 | 588,472 | ||||||||||||||||
Farmland | 108,779 | - | 108,779 | 96,708 | 1,665 | 98,373 | ||||||||||||||||
Land | 19,781 | 838 | 20,619 | 19,316 | 851 | 20,167 | ||||||||||||||||
Construction | 27,001 | - | 27,001 | 24,493 | - | 24,493 | ||||||||||||||||
Total real estate secured | 981,884 | 7,153 | 989,037 | 968,110 | 7,493 | 975,603 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 145,646 | 1,266 | 146,912 | 153,403 | 1,384 | 154,787 | ||||||||||||||||
Agriculture | 62,722 | 1,428 | 64,150 | 53,678 | 1,423 | 55,101 | ||||||||||||||||
Other | 5 | - | 5 | 14 | - | 14 | ||||||||||||||||
Total commercial | 208,373 | 2,694 | 211,067 | 207,095 | 2,807 | 209,902 | ||||||||||||||||
Installment | 7,008 | - | 7,008 | 7,723 | - | 7,723 | ||||||||||||||||
Overdrafts | 207 | - | 207 | 255 | - | 255 | ||||||||||||||||
Total gross loans held for investment | 1,197,472 | 9,847 | 1,207,319 | 1,183,183 | 10,300 | 1,193,483 | ||||||||||||||||
Net deferred loan fees | -1,221 | - | -1,221 | -1,445 | - | (1,445 | ) | |||||||||||||||
Allowance for loan and lease losses | -16,878 | -35 | -16,913 | -16,802 | - | (16,802 | ) | |||||||||||||||
Total net loans held for investment | $ | 1,179,373 | $ | 9,812 | $ | 1,189,185 | $ | 1,164,936 | $ | 10,300 | $ | 1,175,236 | ||||||||||
Loans held for sale | $ | 9,493 | $ | - | $ | 9,493 | $ | 2,586 | $ | - | $ | 2,586 | ||||||||||
At March 31, 2015, and December 31, 2014, the loan portfolio consisted of loans purchased without credit impairment indicators at the time of purchase (“non-PCI loans”), and loans purchased with credit impairment indicators at the time of purchase (“PCI loans”). PCI loans are specifically accounted for under ASC 310-30, as more fully discussed in Note 1. Summary of Significant Accounting Policies of the consolidated financial statements in the Company’s 2014 annual report filed on Form 10-K. These loans were acquired as part of the MISN Transaction. Non-PCI loans are representative of all other loans, including loans acquired in the MISN Transaction, which were not acquired with impairment indicators, and are not accounted for within the scope of ASC 310-30. | ||||||||||||||||||||||
Gross loans include $226.9 million and $239.7 million of non-PCI loans acquired in the MISN Transaction at March 31, 2015 and December 31, 2014, respectively. These loans were acquired at fair value on the date of acquisition. Of the loans acquired in the MISN transaction, $9.8 million and $10.3 million at March 31, 2015 and December 31, 2014, respectively, are considered 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 $604.6 million in loans to secure a credit facility totaling $402.2 million, of which $93.5 million is outstanding as of March 31, 2015. Of this credit facility, $11.5 million is available as a line of credit, while the remainder is available for potential future borrowings. The Bank also has a collateralized borrowing line with the Federal Reserve Bank secured by $6.7 million of loans as of March 31, 2015. | ||||||||||||||||||||||
Concentration of Credit Risk | ||||||||||||||||||||||
The Company held loans that were collateralized by various forms of real estate totaling $998.5 million and $978.2 million at March 31, 2015 and December 31, 2014, 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 $44.5 million at March 31, 2015 and $44.8 million at December 31, 2014. | ||||||||||||||||||||||
From time to time, the Company also originates SBA loans for sale and retains the servicing of the guaranteed portion of the loan sold. At March 31, 2015 and December 31, 2014, the unpaid principal balance of SBA loans serviced for others totaled $10.7 million and $13.0 million, respectively. No gains were recorded on the sale of SBA loans during the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||
The following tables provide a summary of the Company’s recorded investment in non-PCI and PCI impaired loans as of March 31, 2015, and presents average balances and interest income recognized for non-PCI and PCI impaired loans for the three months ended March 31, 2015. | ||||||||||||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||||||||
Unpaid | Specific | Average | Interest | |||||||||||||||||||
Recorded | Principal | Allowance for | Recorded | Income | ||||||||||||||||||
Investment | Balance | Impaired Loans | Investment | Recognized | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Non-PCI Loans | ||||||||||||||||||||||
Without Related Allowance | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | $ | 653 | $ | 779 | $ | - | $ | 457 | $ | - | ||||||||||||
Home equity lines of credit | 46 | 128 | - | 152 | - | |||||||||||||||||
Commercial | 4,138 | 5,605 | - | 4,069 | 36 | |||||||||||||||||
Farmland | 279 | 278 | - | 281 | 3 | |||||||||||||||||
Land | 1,344 | 2,042 | - | 1,407 | 20 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 3,835 | 4,161 | - | 3,082 | 10 | |||||||||||||||||
Agriculture | 1,558 | 1,596 | - | 1,139 | 13 | |||||||||||||||||
Installment | 163 | 227 | - | 137 | 1 | |||||||||||||||||
Total | 12,016 | 14,816 | - | 10,724 | 83 | |||||||||||||||||
With Related Allowance | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Commercial | 484 | 684 | 100 | 491 | - | |||||||||||||||||
Land | 4,811 | 8,487 | 1,415 | 4,844 | 3 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 1,573 | 1,551 | 131 | 1,581 | 25 | |||||||||||||||||
Total | 6,868 | 10,722 | 1,646 | 6,916 | 28 | |||||||||||||||||
Total Non-PCI impaired loans | $ | 18,884 | $ | 25,538 | $ | 1,646 | $ | 17,640 | $ | 111 | ||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||||||||
Unpaid | Specific | Average | Interest | |||||||||||||||||||
Recorded | Principal | Allowance for | Recorded | Income | ||||||||||||||||||
Investment (1) | Balance | Impaired Loans | Investment | Recognized | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
PCI Loans | ||||||||||||||||||||||
Without Related Allowance | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | $ | 451 | $ | 686 | $ | - | $ | 451 | $ | 12 | ||||||||||||
Commercial | 4,749 | 6,265 | - | 4,916 | 547 | |||||||||||||||||
Land | 556 | 683 | - | 558 | 18 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 604 | 988 | - | 652 | 31 | |||||||||||||||||
Agriculture | 1,436 | 1,492 | - | 1,433 | 29 | |||||||||||||||||
Total | 7,796 | 10,114 | - | 8,010 | 637 | |||||||||||||||||
With Related Allowance | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | 115 | 197 | 3 | 114 | 3 | |||||||||||||||||
Commercial | 1,027 | 1,071 | 11 | 1,025 | 22 | |||||||||||||||||
Land | 285 | 289 | 8 | 290 | 5 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 666 | 734 | 13 | 678 | 11 | |||||||||||||||||
Total | 2,093 | 2,291 | 35 | 2,107 | 41 | |||||||||||||||||
Total PCI loans | $ | 9,889 | $ | 12,405 | $ | 35 | $ | 10,117 | $ | 678 | ||||||||||||
-1 | Recorded investment includes accrued interest receivable. | |||||||||||||||||||||
The following table provides a summary of the Company’s recorded investment in non-PCI and PCI impaired loans as of December 31, 2014, and presents average balances and interest income recognized for non-PCI and PCI impaired loans for the three months ended March 31, 2014. | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
December 31, 2014 | March 31, 2014 | |||||||||||||||||||||
Unpaid | Specific | Average | Interest | |||||||||||||||||||
Recorded | Principal | Allowance for | Recorded | Income | ||||||||||||||||||
Investment | Balance | Impaired Loans | Investment | Recognized | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Non-PCI Loans | ||||||||||||||||||||||
Without Related Allowance | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | $ | 260 | $ | 383 | $ | - | $ | 770 | $ | 7 | ||||||||||||
Home equity lines of credit | 258 | 340 | - | - | - | |||||||||||||||||
Commercial | 4,000 | 6,255 | - | 820 | 6 | |||||||||||||||||
Farmland | 283 | 282 | - | - | - | |||||||||||||||||
Land | 1,470 | 2,355 | - | 1,285 | 16 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 2,875 | 3,967 | - | 1,936 | 10 | |||||||||||||||||
Agriculture | 720 | 760 | - | 908 | 6 | |||||||||||||||||
Installment | 112 | 201 | - | 106 | 1 | |||||||||||||||||
Total | 9,978 | 14,543 | - | 5,824 | 46 | |||||||||||||||||
With Related Allowance | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Commercial | 498 | 688 | 148 | - | - | |||||||||||||||||
Land | 4,876 | 8,499 | 1,472 | 6,657 | 21 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 1,043 | 1,054 | 151 | 3,317 | 37 | |||||||||||||||||
Total | 6,417 | 10,241 | 1,771 | 9,974 | 58 | |||||||||||||||||
Total Non-PCI impaired loans | $ | 16,395 | $ | 24,784 | $ | 1,771 | $ | 15,798 | $ | 104 | ||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
December 31, 2014 | March 31, 2014 | |||||||||||||||||||||
Unpaid | Specific | Average | Interest | |||||||||||||||||||
Recorded | Principal | Allowance for | Recorded | Income | ||||||||||||||||||
Investment (1) | Balance | Impaired Loans | Investment | Recognized | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
PCI Loans | ||||||||||||||||||||||
Without Related Allowance | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | $ | 564 | $ | 886 | $ | - | $ | 313 | $ | 1 | ||||||||||||
Home equity lines of credit | - | - | - | 41 | - | |||||||||||||||||
Commercial | 4,432 | 6,109 | - | 2,749 | 69 | |||||||||||||||||
Farmland | 1,673 | 2,027 | - | 864 | 1 | |||||||||||||||||
Land | 853 | 993 | - | 493 | - | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 1,388 | 1,883 | - | 1,274 | 46 | |||||||||||||||||
Agriculture | 1,431 | 1,492 | - | 638 | - | |||||||||||||||||
Total PCI loans | $ | 10,341 | $ | 13,390 | $ | - | $ | 6,372 | $ | 117 | ||||||||||||
-1 | Recorded investment includes accrued interest receivable. | |||||||||||||||||||||
The Company did not record income from the receipt of cash payments related to non-accruing loans during the three months ended March 31, 2015 and 2014. Interest income recognized on impaired loans in the tables above represents interest on accruing troubled debt restructurings, and accretion in PCI loans. 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. | ||||||||||||||||||||||
At March 31, 2015 and December 31, 2014, there were no residential 1 to 4 family loans in process of foreclosure, or residential 1 to 4 family properties included in foreclosed assets. | ||||||||||||||||||||||
Troubled Debt Restructurings (“TDR”) | ||||||||||||||||||||||
The following table provides a summary of loans that were classified as TDRs as of the dates indicated below: | ||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||
Accrual | Non-accrual | Total | Accrual | Non-accrual | Total | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Non-PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | $ | - | $ | 653 | $ | 653 | $ | 130 | $ | 130 | $ | 260 | ||||||||||
Commercial | 2,605 | 241 | 2,846 | 2,449 | 78 | 2,527 | ||||||||||||||||
Farmland | 279 | - | 279 | 283 | - | 283 | ||||||||||||||||
Land | 1,218 | 4,932 | 6,150 | 1,109 | 5,149 | 6,258 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 2,226 | 1,545 | 3,771 | 2,177 | 1,593 | 3,770 | ||||||||||||||||
Agriculture | 931 | - | 931 | 34 | - | 34 | ||||||||||||||||
Installment | 120 | - | 120 | 69 | - | 69 | ||||||||||||||||
Total non-PCI loans | 7,379 | 7,371 | 14,750 | 6,251 | 6,950 | 13,201 | ||||||||||||||||
PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Commercial | - | - | - | 223 | - | 223 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 36 | 98 | 134 | 37 | 107 | 144 | ||||||||||||||||
Total PCI loans | 36 | 98 | 134 | 260 | 107 | 367 | ||||||||||||||||
Total TDRs | $ | 7,415 | $ | 7,469 | $ | 14,884 | $ | 6,511 | $ | 7,057 | $ | 13,568 | ||||||||||
The majority of the Bank’s TDRs resulted from granting concessions with respect to interest rates, payment structure and/or maturity. Modifications for the three months ended March 31, 2015, and 2014 relate to 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 March 31, 2015, the Company was not committed to lend any additional funds to borrowers whose obligations to the Company were restructured. The financial effects of modifications for the three months ended March 31, 2015, and 2014 were not material. | ||||||||||||||||||||||
The following tables summarize loan modifications which resulted in TDRs during the periods presented below. There were no modifications to PCI loans resulting in TDRs during the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||||
For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | |||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | |||||||||||||||||||
Number of | Recorded | Recorded | Number of | Recorded | Recorded | |||||||||||||||||
TDRs | Investment | Investment | TDRs | Investment | Investment | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Non-PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | 2 | $ | 534 | $ | 534 | - | $ | - | $ | - | ||||||||||||
Commercial | 3 | 564 | 564 | 1 | 166 | 166 | ||||||||||||||||
Land | - | - | - | 1 | 160 | 160 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 4 | 187 | 187 | 4 | 920 | 920 | ||||||||||||||||
Agriculture | 1 | 898 | 898 | 1 | 662 | 662 | ||||||||||||||||
Installment | 1 | 57 | 57 | 1 | 73 | 73 | ||||||||||||||||
Total | 11 | $ | 2,240 | $ | 2,240 | 8 | $ | 1,981 | $ | 1,981 | ||||||||||||
The following tables summarizes 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 Three Months Ended | |||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | |||||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||||
TDRs | Investment | TDRs | Investment | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Non-PCI Loans | ||||||||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 1 | $ | 18 | - | $ | - | ||||||||||||||||
Total | 1 | $ | 18 | - | $ | - | ||||||||||||||||
Credit Quality | ||||||||||||||||||||||
The following tables stratify loans held for investment by the Company’s internal risk grading system: | ||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||
Credit Risk Grades | ||||||||||||||||||||||
Special | ||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Total | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Non-PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Multi-family residential | $ | 77,069 | $ | - | $ | 615 | $ | - | $ | 77,684 | ||||||||||||
Residential 1 to 4 family | 141,633 | 198 | 1,097 | - | 142,928 | |||||||||||||||||
Home equity lines of credit | 35,228 | - | 700 | - | 35,928 | |||||||||||||||||
Commercial | 543,163 | 2,819 | 23,801 | - | 569,783 | |||||||||||||||||
Farmland | 107,234 | - | 1,545 | - | 108,779 | |||||||||||||||||
Land | 13,493 | 9 | 6,279 | - | 19,781 | |||||||||||||||||
Construction | 27,001 | - | - | - | 27,001 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 130,546 | 8,239 | 6,719 | 142 | 145,646 | |||||||||||||||||
Agriculture | 60,740 | 150 | 1,832 | - | 62,722 | |||||||||||||||||
Other | - | 5 | - | - | 5 | |||||||||||||||||
Installment | 6,909 | - | 99 | - | 7,008 | |||||||||||||||||
Overdrafts | 207 | - | - | - | 207 | |||||||||||||||||
Total non-PCI loans | 1,143,223 | 11,420 | 42,687 | 142 | 1,197,472 | |||||||||||||||||
PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | - | 448 | 114 | - | 562 | |||||||||||||||||
Commercial | - | 678 | 5,075 | - | 5,753 | |||||||||||||||||
Land | 284 | - | 554 | - | 838 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 36 | 91 | 1,139 | - | 1,266 | |||||||||||||||||
Agriculture | - | - | 1,428 | - | 1,428 | |||||||||||||||||
Total PCI loans | 320 | 1,217 | 8,310 | - | 9,847 | |||||||||||||||||
Total loans held for investment | $ | 1,143,543 | $ | 12,637 | $ | 50,997 | $ | 142 | $ | 1,207,319 | ||||||||||||
December 31, 2014 | ||||||||||||||||||||||
Credit Risk Grades | ||||||||||||||||||||||
Special | ||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Total | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Non-PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Multi-family residential | $ | 78,023 | $ | - | $ | 622 | $ | - | $ | 78,645 | ||||||||||||
Residential 1 to 4 family | 125,733 | 199 | 708 | - | 126,640 | |||||||||||||||||
Home equity lines of credit | 37,638 | - | 614 | - | 38,252 | |||||||||||||||||
Commercial | 560,478 | 3,010 | 20,568 | - | 584,056 | |||||||||||||||||
Farmland | 92,481 | 2,665 | 1,562 | - | 96,708 | |||||||||||||||||
Land | 12,929 | - | 6,387 | - | 19,316 | |||||||||||||||||
Construction | 24,493 | - | - | - | 24,493 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 138,202 | 2,943 | 12,104 | 154 | 153,403 | |||||||||||||||||
Agriculture | 52,678 | 280 | 720 | - | 53,678 | |||||||||||||||||
Other | - | - | 14 | - | 14 | |||||||||||||||||
Installment | 7,618 | - | 105 | - | 7,723 | |||||||||||||||||
Overdrafts | 255 | - | - | - | 255 | |||||||||||||||||
Total non-PCI loans | 1,130,528 | 9,097 | 43,404 | 154 | 1,183,183 | |||||||||||||||||
PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | - | - | 561 | - | 561 | |||||||||||||||||
Commercial | 126 | 680 | 3,610 | - | 4,416 | |||||||||||||||||
Farmland | - | - | 1,665 | - | 1,665 | |||||||||||||||||
Land | 294 | - | 557 | - | 851 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 36 | 97 | 1,175 | 76 | 1,384 | |||||||||||||||||
Agriculture | - | - | 1,423 | - | 1,423 | |||||||||||||||||
Total PCI loans | 456 | 777 | 8,991 | 76 | 10,300 | |||||||||||||||||
Total loans held for investment | $ | 1,130,984 | $ | 9,874 | $ | 52,395 | $ | 230 | $ | 1,193,483 | ||||||||||||
Aging of Loans Held for Investment | ||||||||||||||||||||||
The following tables summarize the aging of loans held for investment as of the dates indicated below: | ||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||
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 | $ | 77,684 | $ | - | $ | - | $ | - | $ | - | $ | 77,684 | ||||||||||
Residential 1 to 4 family | 142,283 | - | - | - | 645 | 142,928 | ||||||||||||||||
Home equity lines of credit | 35,882 | - | - | - | 46 | 35,928 | ||||||||||||||||
Commercial | 567,731 | - | - | - | 2,052 | 569,783 | ||||||||||||||||
Farmland | 108,779 | - | - | - | - | 108,779 | ||||||||||||||||
Land | 14,744 | 98 | - | - | 4,939 | 19,781 | ||||||||||||||||
Construction | 27,001 | - | - | - | - | 27,001 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 142,386 | 90 | - | - | 3,170 | 145,646 | ||||||||||||||||
Agriculture | 61,197 | - | 898 | - | 627 | 62,722 | ||||||||||||||||
Other | 5 | - | - | - | - | 5 | ||||||||||||||||
Installment | 6,867 | 98 | - | - | 43 | 7,008 | ||||||||||||||||
Overdrafts | 207 | - | - | - | - | 207 | ||||||||||||||||
Total non-PCI loans | 1,184,766 | 286 | 898 | - | 11,522 | 1,197,472 | ||||||||||||||||
PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | 562 | - | - | - | - | 562 | ||||||||||||||||
Commercial | 5,753 | - | - | - | - | 5,753 | ||||||||||||||||
Land | 838 | - | - | - | - | 838 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 941 | - | - | - | 325 | 1,266 | ||||||||||||||||
Agriculture | 1,428 | - | - | - | - | 1,428 | ||||||||||||||||
Total PCI loans | 9,522 | - | - | - | 325 | 9,847 | ||||||||||||||||
Total loans held for investment | $ | 1,194,288 | $ | 286 | $ | 898 | $ | - | $ | 11,847 | $ | 1,207,319 | ||||||||||
December 31, 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 | $ | 78,645 | $ | - | $ | - | $ | - | $ | - | $ | 78,645 | ||||||||||
Residential 1 to 4 family | 126,516 | - | - | - | 124 | 126,640 | ||||||||||||||||
Home equity lines of credit | 37,994 | - | - | - | 258 | 38,252 | ||||||||||||||||
Commercial | 581,971 | - | - | - | 2,085 | 584,056 | ||||||||||||||||
Farmland | 96,708 | - | - | - | - | 96,708 | ||||||||||||||||
Land | 14,079 | - | - | - | 5,237 | 19,316 | ||||||||||||||||
Construction | 24,493 | - | - | - | - | 24,493 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 151,656 | - | 21 | - | 1,726 | 153,403 | ||||||||||||||||
Agriculture | 52,992 | - | - | - | 686 | 53,678 | ||||||||||||||||
Other | 14 | - | - | - | - | 14 | ||||||||||||||||
Installment | 7,621 | 56 | 3 | - | 43 | 7,723 | ||||||||||||||||
Overdrafts | 255 | - | - | - | - | 255 | ||||||||||||||||
Total non-PCI loans | 1,172,944 | 56 | 24 | - | 10,159 | 1,183,183 | ||||||||||||||||
PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | 561 | - | - | - | - | 561 | ||||||||||||||||
Commercial | 4,416 | - | - | - | - | 4,416 | ||||||||||||||||
Farmland | 1,665 | - | - | - | - | 1,665 | ||||||||||||||||
Land | 851 | - | - | - | - | 851 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 1,008 | - | - | - | 376 | 1,384 | ||||||||||||||||
Agriculture | 1,423 | - | - | - | - | 1,423 | ||||||||||||||||
Total PCI loans | 9,924 | - | - | - | 376 | 10,300 | ||||||||||||||||
Total loans held for investment | $ | 1,182,868 | $ | 56 | $ | 24 | $ | - | $ | 10,535 | $ | 1,193,483 | ||||||||||
Purchased Credit Impaired Loans | ||||||||||||||||||||||
As part of the MISN Transaction, disclosed in Note 2. Business Combination, the Company acquired certain loans which have exhibited evidence of credit deterioration since their origination. The carrying amount and unpaid principal balance of these loans are as follows: | ||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||
Unpaid Principal | Carrying | Unpaid Principal | Carrying | |||||||||||||||||||
Balance | Amount | Balance | Amount | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | $ | 883 | $ | 562 | $ | 886 | $ | 561 | ||||||||||||||
Commercial | 7,336 | 5,753 | 6,109 | 4,416 | ||||||||||||||||||
Farmland | - | - | 2,027 | 1,665 | ||||||||||||||||||
Land | 972 | 838 | 993 | 851 | ||||||||||||||||||
Total real estate secured | 9,191 | 7,153 | 10,015 | 7,493 | ||||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 1,744 | 1,266 | 1,883 | 1,384 | ||||||||||||||||||
Agriculture | 1,492 | 1,428 | 1,492 | 1,423 | ||||||||||||||||||
Total commercial | 3,236 | 2,694 | 3,375 | 2,807 | ||||||||||||||||||
Total PCI loans | $ | 12,427 | $ | 9,847 | $ | 13,390 | $ | 10,300 | ||||||||||||||
The following table summarizes the accretable yield, or income expected to be collected for PCI loans: | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Balance, December 31, 2014 | $ | 4,374 | ||||||||||||||||||||
Accretion of income | (678 | ) | ||||||||||||||||||||
Reclassifications from nonaccretable difference (1) | 547 | |||||||||||||||||||||
Balance, March 31, 2015 | $ | 4,243 | ||||||||||||||||||||
-1 | Reclassification from nonaccretable difference is attributable to positive changes in expected future cash flows on certain PCI loans. | |||||||||||||||||||||
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 March 31, 2015 | ||||||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision for | Balance | ||||||||||||||||||
December 31, | Loan and | March 31, | ||||||||||||||||||||
2014 | Lease Losses | 2015 | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Land | $ | 1,655 | $ | -34 | $ | 11 | $ | 16 | $ | 1,648 | ||||||||||||
Other real estate secured | 9,474 | -39 | 3 | 332 | 9,770 | |||||||||||||||||
Commercial | 5,125 | - | 167 | -797 | 4,495 | |||||||||||||||||
Installment | 172 | - | 3 | -12 | 163 | |||||||||||||||||
All other loans | 30 | - | - | -3 | 27 | |||||||||||||||||
Unallocated | 346 | 464 | 810 | |||||||||||||||||||
Total | $ | 16,802 | $ | -73 | $ | 184 | $ | - | $ | 16,913 | ||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision for | Balance | ||||||||||||||||||
December 31, | Loan and | March 31, | ||||||||||||||||||||
2013 | Lease Losses | 2014 | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Land | $ | 3,402 | $ | - | $ | 7 | $ | -254 | $ | 3,155 | ||||||||||||
Other real estate secured | 9,283 | -92 | 16 | 190 | 9,397 | |||||||||||||||||
Commercial | 4,781 | - | 175 | -58 | 4,898 | |||||||||||||||||
Installment | 99 | -2 | 5 | -15 | 87 | |||||||||||||||||
All other loans | 32 | - | - | -6 | 26 | |||||||||||||||||
Unallocated | 262 | 143 | 405 | |||||||||||||||||||
Total | $ | 17,859 | $ | -94 | $ | 203 | $ | - | $ | 17,968 | ||||||||||||
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: | ||||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||
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 | $ | 1,415 | $ | 225 | $ | 8 | $ | 6,155 | $ | 13,623 | $ | 841 | ||||||||||
Other real estate secured | 100 | 9,656 | 14 | 5,600 | 956,476 | 6,342 | ||||||||||||||||
Commercial | 131 | 4,351 | 13 | 6,966 | 201,395 | 2,706 | ||||||||||||||||
Installment | - | 163 | - | 163 | 6,845 | - | ||||||||||||||||
All other loans | - | 27 | - | - | 207 | - | ||||||||||||||||
Unallocated | - | 810 | - | |||||||||||||||||||
Total | $ | 1,646 | $ | 15,232 | $ | 35 | $ | 18,884 | $ | 1,178,546 | $ | 9,889 | ||||||||||
31-Dec-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 | $ | 1,472 | $ | 183 | $ | - | $ | 6,346 | $ | 12,968 | $ | 853 | ||||||||||
Other real estate secured | 148 | 9,326 | - | 5,299 | 943,468 | 6,669 | ||||||||||||||||
Commercial | 151 | 4,974 | - | 4,633 | 202,450 | 2,819 | ||||||||||||||||
Installment | - | 172 | - | 112 | 7,611 | - | ||||||||||||||||
All other loans | - | 30 | - | - | 255 | - | ||||||||||||||||
Unallocated | - | 346 | - | |||||||||||||||||||
Total | $ | 1,771 | $ | 15,031 | $ | - | $ | 16,390 | $ | 1,166,752 | $ | 10,341 | ||||||||||
At March 31, 2015, total gross loans of $1.2 billion in the table above include $226.9 million of loans acquired through the MISN Transaction. Loans acquired through the MISN Transaction were initially recorded at fair value, and had no related ALLL on the acquisition date. The ALLL for acquired non-PCI loans at March 31, 2015 and December 31, 2014 was $0.7 million, and $1.0 million, respectively, and is the result of determining, through the Company’s ALLL methodology, that the existing discount for acquired non-PCI loans was no longer deemed sufficient to cover probable losses incurred in particular segments of the loan portfolio, specifically commercial and industrial and agricultural lines of credit. The incremental ALLL allocation for acquired non-PCI loans was not driven by deterioration in credit quality; rather they were due to the relatively fast accretion of purchase discounts attributable to these segments of the acquired loan portfolio. The ALLL allocated to acquired non-PCI loans is included in the ALLL attributable to loans collectively evaluated for impairment in the tables above. The ALLL for PCI loans was $35 thousand at March 31, 2015, and resulted from declines in expected future cash flows on these loans. There was no ALLL for PCI loans at December 31, 2014. | ||||||||||||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Taxes | |
Income Taxes | |
Note 6. Income Taxes | |
Deferred tax assets relate to amounts that are expected to be realized through subsequent reversals of existing temporary differences over the period they are expected to reverse. The ultimate realization of the Company’s deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences are expected to reverse. U.S. GAAP requires that companies assess whether a valuation allowance should be established against deferred tax assets based on the consideration of all available evidence using a “more likely than not” standard. In making such judgments, significant weight is given to evidence, both positive and negative, that can be objectively verified. At March 31, 2015 and December 31, 2014 there was no valuation allowance for the Company’s deferred tax assets. At March 31, 2015, the Company’s deferred tax assets totaled $22.5 million and $24.9 million at December 31, 2014. | |
The Company is subject to income taxation by both federal and state taxing authorities. Income tax returns for the years ended December 31, 2014, 2013, 2012, 2011, and 2010 are open to audit by federal and state taxing authorities. The Company does not have any uncertain income tax positions and has not accrued for any interest or penalties as of March 31, 2015 and December 31, 2014. | |
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 | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||
Note 7. Goodwill and Other Intangible Assets | |||||||||||||
At March 31, 2015 and December 31, 2014 the balance of goodwill was $24.9 million. Other intangible assets consist of core deposit intangibles (“CDI”), which are attributable to the acquisition of core deposit balances, including those acquired in the MISN Transaction. CDI assets are subject to amortization. At March 31, 2015 and December 31, 2014 the balance of CDI was $5.1 million, and $5.3 million, respectively. Amortization of CDI for the three months ended March 31, 2015 and 2014 was approximately $0.3 million and $0.2 million, respectively. | |||||||||||||
The following table summarizes the gross carrying amount, accumulated amortization and net carrying amount of CDI as of March 31, 2015, and provides an estimate for future amortization for 2015 and the next five years: | |||||||||||||
March 31, 2015 | |||||||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||||||
Amount | Amortization | Amount | |||||||||||
(dollars in thousands) | |||||||||||||
Core deposit intangibles | $ | 9,261 | $ | -4,176 | $ | 5,085 | |||||||
March 31, 2015 | |||||||||||||
Beginning | Acquired | Estimated | Projected Ending | ||||||||||
Balance | CDI | Amortization | Balance | ||||||||||
(dollars in thousands) | |||||||||||||
Period | |||||||||||||
Year 2015 | $ | 5,347 | $ | - | $ | -1,049 | $ | 4,298 | |||||
Year 2016 | 4,298 | - | -944 | 3,354 | |||||||||
Year 2017 | 3,354 | - | -588 | 2,766 | |||||||||
Year 2018 | 2,766 | - | -549 | 2,217 | |||||||||
Year 2019 | 2,217 | - | -522 | 1,695 | |||||||||
Year 2020 | 1,695 | - | -441 | 1,254 | |||||||||
Sharebased_Compensation_Plans
Share-based Compensation Plans | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Share-based Compensation Plans | |||||||||||
Share-based Compensation Plans | |||||||||||
Note 8. Share-Based Compensation Plans | |||||||||||
As of March 31, 2015, the Company had two share-based employee compensation plans, which are more fully described in Note 12, Share-Based Compensation Plans, of the condensed consolidated financial statements in the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2014. These plans include the “1997 Stock Option Plan” and the “2005 Equity Based Compensation Plan.” As of March 31, 2015 no further grants can be made from these plans. | |||||||||||
The following table provides a summary of the expenses the Company has recognized related to share-based compensation for the periods indicated below: | |||||||||||
For the Three Months Ended | |||||||||||
March 31, | |||||||||||
2015 | 2014 | ||||||||||
(dollars in thousands) | |||||||||||
Share-based compensation expense: | |||||||||||
Stock options | $ | 112 | $ | 164 | |||||||
Restricted stock | 129 | 83 | |||||||||
Total expense | $ | 241 | $ | 247 | |||||||
Unrecognized compensation expense: | |||||||||||
Stock options | $ | 1,310 | $ | 1,013 | |||||||
Restricted stock | 1,064 | 865 | |||||||||
Total unrecognized expense | $ | 2,374 | $ | 1,878 | |||||||
At March 31, 2015 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 2.5 years, respectively. | |||||||||||
Restricted Stock Awards | |||||||||||
The Company grants restricted stock periodically 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, 2014 | 204,121 | $ | 6.65 | ||||||||
Granted | 32,652 | 7.84 | |||||||||
Vested | -26,855 | 6.36 | |||||||||
Forfeited | -4,547 | 6.66 | |||||||||
Balance March 31, 2015 | 205,371 | $ | 6.88 | ||||||||
Included in the table above are performance-based grants of restricted stock totaling 23,408 shares as of March 31, 2015. | |||||||||||
Stock Options | |||||||||||
Stock options are granted periodically for the benefit of employees. The fair value of each stock option award is determined on the date of grant using the Black-Scholes option valuation model, which uses assumptions outlined in the table above. Expectations for volatility are based on the historical volatility of the Company’s common stock. The Company estimates forfeiture rates based on historical employee option exercise and termination experience. The Company recognizes share-based compensation costs on a straight line basis over the vesting period of the award, which is typically a period of three to five years. | |||||||||||
The following table presents the assumptions used in the calculation of the weighted average fair value of options granted during the periods presented: | |||||||||||
For the Three Months Ended | |||||||||||
March 31, | |||||||||||
2015 | 2014 | ||||||||||
Expected volatility | 38.17% | 54.00% | |||||||||
Expected term (years) | 5.00 | 6.00 | |||||||||
Dividend yield | 2.55% | 0.00% | |||||||||
Risk free rate | 1.57% | 1.76% | |||||||||
Weighted-average grant date fair value | $ | 2.17 | $ | 3.99 | |||||||
The following table provides a summary of activity related to options granted, exercised, and forfeited during the three months ended March 31, 2015: | |||||||||||
Options Outstanding | Options | ||||||||||
Number | Weighted Average | Available for | |||||||||
of Shares | Exercise Price | Grant (1) | |||||||||
Balance, December 31, 2014 | 742,557 | $ | 6.83 | 2,003,176 | |||||||
Granted | 215,429 | 7.84 | |||||||||
Forfeited | -21,557 | 6.60 | |||||||||
Exercised | -17,353 | 4.33 | |||||||||
Balance, March 31, 2015 | 919,076 | $ | 7.12 | - | |||||||
(1)The 2005 Equity Based Compensation Plan was the only plan from which the Company could grant share-based compensation awards. This plan expired in March 2015, and as of March 31, 2015, no further grants could be issued from this plan. | |||||||||||
The following table provides a summary of the aggregate intrinsic value of options vested and expected to vest and exercisable as of March 31, 2015: | |||||||||||
March 31, 2015 | |||||||||||
Weighted Average | |||||||||||
Weighted | Remaining | Aggregate | |||||||||
Average | Contractual Life | Intrinsic | |||||||||
Shares | Exercise Price | (Years) | Value | ||||||||
Vested or expected to vest | 866,402 | $ | 7.10 | 7.98 | $ | 1,386,892 | |||||
Exercisable | 319,255 | $ | 6.96 | 5.98 | $ | 773,197 | |||||
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 $66 thousand for the three months ended March 31, 2015. | |||||||||||
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
Shareholders' Equity | ||||||||||||||||||
Shareholders' Equity | ||||||||||||||||||
Note 9. Shareholders’ Equity | ||||||||||||||||||
Regulatory Capital | ||||||||||||||||||
In 2013, the Board of Governors of the Federal Reserve System (“FRB”), the FDIC, and the Office of the Comptroller of the Currency (“OCC”) issued final rules under Basel III (the “Basel III Capital Rules”), establishing a new comprehensive framework for regulatory capital for U.S. banking organizations. These rules implement the Basel Committee’s December 2010 proposed framework, certain provisions of the Dodd-Frank Act, and revise the risk-based capital requirements applicable to bank-holding companies, and depository institutions, including the Company. These rules became effective for the Company on January 1, 2015, and are subject to phase-in periods for certain of their components. | ||||||||||||||||||
The significant changes outlined under the Basel III Capital Rules that are applicable to the Company and the Bank include: | ||||||||||||||||||
· | A new Common Equity Tier I (“CET I”) capital measure, with a minimum ratio requirement of 4.5% CET I to risk-weighted assets, and for Prompt Corrective Action purposes 6.5% or greater to generally be considered “well-capitalized.” | |||||||||||||||||
· | A capital conservation buffer in addition to CET I of: 0.625% for 2016; 1.25% for 2017; 1.875% for 2018; and 2.5% for 2019. The capital conservation buffer does not begin phasing-in until January 1, 2016. | |||||||||||||||||
· | Changes to the calculation of risk-weighted assets from the current four categories (0%, 20%, 50% and 100%) to a much broader and risk-sensitive number of categories. | |||||||||||||||||
· | The inclusion of certain changes in accumulated other comprehensive income (“AOCI”) in the determination of regulatory capital measures; however, “non-advanced approaches banking organizations,” including the Company and the Bank may make a one-time permanent election, as of January 1, 2015, to exclude these changes in AOCI from the determination of regulatory capital. The Company, including the Bank, has made this election. | |||||||||||||||||
· | An exclusion from CET I of certain items on a phased-in basis, such as deferred tax assets, and intangible assets. | |||||||||||||||||
When Basel III Capital Rules are fully phased-in on January 1, 2019, the Company and the Bank will also be required to maintain a 2.5% “capital conservation buffer,” which is designed to absorb losses during periods of economic stress. This capital conservation buffer will be comprised entirely of CET I, and will be in addition to minimum risk-weighted asset ratios outlined under the Basel III Capital Rules. If a banking organization fails to hold capital above minimum capital ratios, including the capital conservation buffer, it will be subject to certain restrictions on capital distributions and discretionary bonus payments. | ||||||||||||||||||
The following table sets forth the Company’s and the Bank’s regulatory capital ratios, including those applicable following the implementation of Basel III as of January 1, 2015: | ||||||||||||||||||
Basel III | Pre-Basel III | |||||||||||||||||
Regulatory | March 31, 2015 | Regulatory | December 31, 2014 | March 31, 2014 | ||||||||||||||
Standard to be | Standard to be | |||||||||||||||||
Well | Well | |||||||||||||||||
Capitalized (1) | Company | Bank | Capitalized (1) | Company | Bank | Company | Bank | |||||||||||
Ratio | ||||||||||||||||||
Common Equity Tier I capital | 6.50% | 12.50% | 12.65% | N/A | N/A | N/A | N/A | N/A | ||||||||||
Leverage ratio | 5.00% | 10.38% | 10.01% | 5.00% | 10.22% | 9.83% | 11.64% | 11.25% | ||||||||||
Tier I capital | 8.00% | 13.12% | 12.65% | 6.00% | 13.13% | 12.63% | 12.25% | 11.84% | ||||||||||
Total risk-based capital | 10.00% | 14.36% | 13.90% | 10.00% | 14.38% | 13.88% | 13.50% | 13.10% | ||||||||||
-1 | Reflects minimum threshold to be considered “well capitalized” under the Prompt Corrective Action framework, specific to depository institutions. | |||||||||||||||||
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. | ||||||||||||||||||
As of March 31, 2015 the Company had issued and outstanding 348,697 shares of its Series C Convertible Perpetual Preferred Stock (“Series C Preferred Stock”). Series C Preferred Stock is a non-voting class of preferred 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 is convertible to shares of common stock on a one share for one share basis based on its terms. The holder of the Series C Preferred Stock does not have 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, 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. | ||||||||||||||||||
Cash Dividends | ||||||||||||||||||
On March 2, 2015, the Company paid a cash dividend of $0.05 per share to holders of the Company’s common stock as of February 16, 2015. Holders of the Company’s Series C Preferred Stock are entitled to per share dividend equivalents to any dividends declared on the Company’s common stock. | ||||||||||||||||||
No dividends were paid during the three months ended March 31, 2014. | ||||||||||||||||||
Stock Repurchase Program | ||||||||||||||||||
In the fourth quarter of 2014, the Company announced its intention to repurchase up to $5.0 million of its outstanding common stock pursuant to a written plan compliant with Rule 10b5-1, and Rule 10b-18. Repurchase program activity under the current plan will expire on June 30, 2015, or earlier upon the completion of the repurchase of $5.0 million of the Company’s common stock, as well as under certain other circumstances set forth in the repurchase plan agreement. The Company has no obligation to repurchase any shares under this program, and may suspend or discontinue it at any time. All shares as part of the repurchase program will be cancelled, and therefore no longer available for reissuance. As of March 31, 2015, the Company had repurchased 51,732 shares of its common stock under this plan at an average price of $7.47 per share, however the Company made no repurchases of its common stock during the three months ended March 31, 2015. | ||||||||||||||||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Earnings Per Share | ||||||||||||
Earnings Per Share | ||||||||||||
Note 10. Earnings Per Share | ||||||||||||
Basic earnings per common share are computed by dividing net income 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 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, and other share-based compensation. The computation of diluted earnings per common share excludes the impact of the assumed exercise or issuance of securities that would have an anti-dilutive effect. | ||||||||||||
The following tables set forth number of shares used in the calculation of both basic and diluted earnings per common share: | ||||||||||||
For the Three Months Ended March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Net | Net | |||||||||||
Income | Shares | Income | Shares | |||||||||
(dollars in thousands, except per share data) | ||||||||||||
Net income (loss) | $ | 4,069 | $ | -1,763 | ||||||||
Weighted average shares outstanding | 34,107,168 | 27,816,911 | ||||||||||
Basic earnings (loss) per common share | $ | 0.12 | $ | -0.06 | ||||||||
Dilutive effect of share-based compensation awards | 159,314 | - | ||||||||||
Weighted average diluted shares outstanding | 34,266,482 | 27,816,911 | ||||||||||
Diluted earnings (loss) per common share | $ | 0.12 | $ | -0.06 | ||||||||
For the three months ended March 31, 2015 and 2014, common stock equivalents totaling approximately 136,000 shares and 442,000 shares, respectively, were excluded from the calculation of diluted earnings per share, as their impact would be anti-dilutive. | ||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Commitments and Contingencies. | ||||||||
Commitments and Contingencies | ||||||||
Note 11. Commitments and Contingencies | ||||||||
In the normal course of business, various claims and lawsuits are brought by and against the Company. At March 31, 2015, the Company does not believe the disposition of all pending or threatened proceedings will have a material effect on the Company’s condensed 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 Company’s condensed consolidated financial statements. | ||||||||
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’s management evaluates each customer’s credit worthiness on a case-by-case basis, and determines the amount of collateral deemed adequate to secure the loan, if collateral security is determined to be necessary for the particular loan. 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 it does for loans reflected in the Company’s condensed consolidated financial statements. | ||||||||
As of March 31, 2015, and December 31, 2014, the Company had the following outstanding financial commitments: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(dollars in thousands) | ||||||||
Commitments to extend credit | $ | 206,977 | $ | 237,733 | ||||
Standby letters of credit | 14,992 | 15,542 | ||||||
Total commitments and standby letters of credit | $ | 221,969 | $ | 253,275 | ||||
Commitments to extend credit and standby letters of credit are made at both fixed and variable rates of interest. At March 31, 2015 and December 31, 2014, the Company had $23.9 million and $35.7 million in fixed rate commitments, and $198.1 million and $217.5 million in variable rate commitments. | ||||||||
Regulatory_Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2015 | |
Regulatory Matters | |
Regulatory Matters | |
Note 12. Regulatory Matters | |
Consent Order | |
On November 5, 2014, the Bank entered into a Stipulation to the Issuance of a Consent Order with the Federal Deposit Insurance Corporation (“FDIC”) and the California Department of Business Oversight (“DBO”), 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 Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) risk assessment process based on the 2010 Federal Financial Institutions Examination Council 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 DBO. Compliance and resolution of the Consent Order will ultimately be determined by the FDIC and DBO. | |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events | |
Subsequent Events | |
Note 13. Subsequent Events | |
Dividend Declaration | |
On April 29, 2015, the Company’s Board of Directors declared a cash dividend of $0.06 per share, payable on June 1, 2015, to shareholders of the Company’s common stock as of May 15, 2015. Holders of the Company’s Series C Preferred Stock are also entitled to a per share dividend equivalent to the common dividend declared. Each share of Series C Preferred Stock is convertible into one share of the Company’s common stock. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Summary of Significant Accounting Policies | |
Investment in Non-Consolidated Subsidiaries | |
Investment in Non-Consolidated Subsidiaries | |
The Company accounts for its investment in Heritage Oaks Capital Trust II, Mission Community Capital Trust I, and Santa Lucia Bancorp (CA) Capital Trust, as unconsolidated subsidiaries using the equity method of accounting, as the Company is not the primary beneficiary of the trust. Mission Community Capital Trust I and Santa Lucia Bancorp (CA) Capital Trust were acquired as part of the acquisition of Mission Community Bancorp on February 28, 2014. The sole purpose of each of these trusts is for the issuance of trust preferred securities. | |
Reclassifications | |
Reclassifications | |
Certain 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. | |
Use of Estimates in the Preparation of Consolidated Financial Statements | |
Use of Estimates in the Preparation of Condensed Consolidated Financial Statements | |
The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), and general practices within the banking industry require management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. | |
Recent Accounting Guidance Adopted | |
Recent Accounting Guidance Adopted | |
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 interim and annual periods, beginning after December 15, 2014. The adoption of this Update did not have a material impact on the Company’s consolidated financial statements. | |
On January 17, 2014, the FASB issued ASU No. 2014-04, Receivables – Troubled Debt Restructurings by Creditors. This ASU provides clarification that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for interim and annual periods, beginning after December 15, 2014. The adoption of this Update did not have a material impact on the Company’s consolidated financial statements. | |
Recent Accounting Guidance Not Yet Effective | |
Recent Accounting Guidance Not Yet Effective | |
In May 2014, the FASB issued 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. | |
Business_Combination_Table
Business Combination (Table) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Combination | |||||
Schedule of unaudited pro forma financial information | |||||
Three Month Ended | |||||
March 31, 2014 | |||||
(dollars in thousands | |||||
except per share data) | |||||
Net interest income | $ | 15,379 | |||
Provision for loan and lease losses | - | ||||
Non-interest income | 2,364 | ||||
Non-interest expense | 20,473 | ||||
Loss before income tax benefit | -2,730 | ||||
Income tax benefit | -1,013 | ||||
Net loss | $ | -1,717 | |||
Loss Per Common Share | |||||
Basic | $ | -0.05 | |||
Diluted | $ | -0.05 | |||
Fair_Value_of_Assets_and_Liabi1
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value of Assets and Liabilities | |||||||||||||||||
Summary of the financial instruments the Company measures at fair value on a recurring basis | Fair Value Measurements at the End of the | ||||||||||||||||
Reporting Period Using | |||||||||||||||||
As of | Quoted Prices in | Significant Other | Significant | ||||||||||||||
March 31, 2015 | 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 | $ | 42,112 | $ | - | $ | 42,112 | $ | - | |||||||||
Mortgage backed securities: | |||||||||||||||||
U.S government sponsored entities and agencies | 198,029 | - | 198,029 | - | |||||||||||||
Non-agency | 13,754 | - | 13,754 | - | |||||||||||||
State and municipal securities | 93,745 | - | 93,745 | - | |||||||||||||
Asset backed securities | 16,858 | - | 16,858 | - | |||||||||||||
Total assets measured on a recurring basis | $ | 364,498 | $ | - | $ | 364,498 | $ | - | |||||||||
Fair Value Measurements at the End of the | |||||||||||||||||
Reporting Period Using | |||||||||||||||||
As of | Quoted Prices in | Significant Other | Significant | ||||||||||||||
December 31, 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 | $ | 19,664 | $ | - | $ | 19,664 | $ | - | |||||||||
Mortgage backed securities: | |||||||||||||||||
U.S government sponsored entities and agencies | 215,398 | - | 215,398 | - | |||||||||||||
Non-agency | 11,901 | - | 11,901 | - | |||||||||||||
State and municipal securities | 82,592 | - | 82,592 | - | |||||||||||||
Asset backed securities | 26,025 | - | 26,025 | - | |||||||||||||
Total assets measured on a recurring basis | $ | 355,580 | $ | - | $ | 355,580 | $ | - | |||||||||
Summary of assets the Company measures at fair value on a non-recurring basis | Fair Value Measurements at the End of the | ||||||||||||||||
Reporting Period Using | |||||||||||||||||
As of | Quoted Prices in | Significant Other | Significant | ||||||||||||||
March 31, 2015 | 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 | $ | 3,261 | $ | - | $ | - | $ | 3,261 | $ | (50 | ) | ||||||
Total assets measured on a non-recurring basis | $ | 3,261 | $ | - | $ | - | $ | 3,261 | $ | (50 | ) | ||||||
Fair Value Measurements at the End of the | |||||||||||||||||
Reporting Period Using | |||||||||||||||||
As of | Quoted Prices in | Significant Other | Significant | ||||||||||||||
December 31, 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 | 3,261 | - | - | 3,261 | (946 | ) | |||||||||||
Total assets measured on a non-recurring basis | $ | 4,586 | $ | - | $ | - | $ | 4,586 | $ | 80 | |||||||
Summary of the estimated fair value of financial instruments | Fair Value Measurements at the End of the | ||||||||||||||||
Reporting Period Using | |||||||||||||||||
As of | Quoted Prices in | Significant Other | Significant | ||||||||||||||
March 31, 2015 | 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 | $ | 75,478 | $ | 75,478 | $ | - | $ | - | $ | 75,478 | |||||||
Investment securities available for sale | 364,498 | - | 364,498 | - | 364,498 | ||||||||||||
Federal Home Loan Bank stock | 7,853 | - | - | - | N/A | ||||||||||||
Loans receivable, net of deferred fees and costs | 1,206,098 | - | - | 1,226,517 | 1,226,517 | ||||||||||||
Loans held for sale | 9,493 | - | 9,493 | - | 9,493 | ||||||||||||
Accrued interest receivable | 5,731 | - | 1,805 | 3,926 | 5,731 | ||||||||||||
Liabilities | |||||||||||||||||
Non-interest bearing deposits | 484,106 | 484,106 | - | - | 484,106 | ||||||||||||
Interest bearing deposits | 976,162 | - | 978,984 | - | 978,984 | ||||||||||||
Federal Home Loan Bank advances | 93,554 | - | 94,628 | - | 94,628 | ||||||||||||
Junior subordinated debentures | 13,286 | - | - | 9,948 | 9,948 | ||||||||||||
Accrued interest payable | 483 | - | 483 | - | 483 | ||||||||||||
Fair Value Measurements at the End of the | |||||||||||||||||
Reporting Period Using | |||||||||||||||||
As of | Quoted Prices in | Significant Other | Significant | ||||||||||||||
December 31, 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 | $ | 35,580 | $ | 35,580 | $ | - | $ | - | $ | 35,580 | |||||||
Investment securities available for sale | 355,580 | - | 355,580 | - | 355,580 | ||||||||||||
Federal Home Loan Bank stock | 7,853 | - | - | - | N/A | ||||||||||||
Loans receivable, net of deferred fees and costs | 1,192,038 | - | - | 1,196,997 | 1,196,997 | ||||||||||||
Loans held for sale | 2,586 | - | 2,586 | - | 2,586 | ||||||||||||
Accrued interest receivable | 5,659 | - | 2,038 | 3,621 | 5,659 | ||||||||||||
Liabilities | |||||||||||||||||
Non interest-bearing deposits | 461,479 | 461,479 | - | - | 461,479 | ||||||||||||
Interest-bearing deposits | 933,325 | - | 936,151 | - | 936,151 | ||||||||||||
Federal Home Loan Bank advances | 95,558 | - | 96,679 | - | 96,679 | ||||||||||||
Junior subordinated debentures | 13,233 | - | - | 9,297 | 9,297 | ||||||||||||
Accrued interest payable | 401 | - | 401 | - | 401 | ||||||||||||
Summary of off-balance sheet instruments | March 31, 2015 | December 31, 2014 | |||||||||||||||
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 | $ | 221,969 | $ | 2,220 | $ | 253,275 | $ | 2,533 | |||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Investment Securities | |||||||||||||||||||||
Schedule of amortized cost and fair values of the Company's investment securities, all of which are reported as available for sale | March 31, 2015 | ||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | 41,892 | $ | 356 | $ | -136 | $ | 42,112 | |||||||||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 197,383 | 1,519 | -873 | 198,029 | |||||||||||||||||
Non-agency | 13,767 | 17 | -30 | 13,754 | |||||||||||||||||
State and municipal securities | 90,546 | 3,245 | -46 | 93,745 | |||||||||||||||||
Asset backed securities | 17,051 | - | -193 | 16,858 | |||||||||||||||||
Total available for sale securities | $ | 360,639 | $ | 5,137 | $ | -1,278 | $ | 364,498 | |||||||||||||
December 31, 2014 | |||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | 19,562 | $ | 191 | $ | -89 | $ | 19,664 | |||||||||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 216,492 | 1,092 | -2,186 | 215,398 | |||||||||||||||||
Non-agency | 11,891 | 21 | -11 | 11,901 | |||||||||||||||||
State and municipal securities | 79,810 | 2,843 | -61 | 82,592 | |||||||||||||||||
Asset backed securities | 26,216 | - | -191 | 26,025 | |||||||||||||||||
Total available for sale securities | $ | 353,971 | $ | 4,147 | $ | -2,538 | $ | 355,580 | |||||||||||||
Summary of investment securities in an unrealized loss position | |||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
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 | $ | 21,829 | $ | -136 | $ | - | $ | - | $ | 21,829 | $ | (136 | ) | ||||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 41,843 | -409 | 31,851 | -464 | 73,694 | (873 | ) | ||||||||||||||
Non-agency | 9,082 | -30 | - | - | 9,082 | (30 | ) | ||||||||||||||
State and municipal securities | 4,744 | -41 | 978 | -5 | 5,722 | (46 | ) | ||||||||||||||
Asset backed securities | - | - | 16,858 | -193 | 16,858 | (193 | ) | ||||||||||||||
Total | $ | 77,498 | $ | -616 | $ | 49,687 | $ | -662 | $ | 127,185 | $ | (1,278 | ) | ||||||||
December 31, 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 | $ | 2,795 | $ | -17 | $ | 2,607 | $ | -72 | $ | 5,402 | $ | -89 | |||||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 50,583 | -670 | 58,753 | -1,516 | 109,336 | -2,186 | |||||||||||||||
Non-agency | 3,000 | -7 | 507 | -4 | 3,507 | -11 | |||||||||||||||
State and municipal securities | 5,899 | -47 | 2,245 | -14 | 8,144 | -61 | |||||||||||||||
Asset backed securities | - | - | 17,153 | -191 | 17,153 | -191 | |||||||||||||||
Total | $ | 62,277 | $ | -741 | $ | 81,265 | $ | -1,797 | $ | 143,542 | $ | -2,538 | |||||||||
Schedule of proceeds from the sales and calls of securities and the associated gains and losses | For Three Months Ended | ||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Proceeds | $ | 47,033 | $ | 15,562 | |||||||||||||||||
Gross gains | 679 | 78 | |||||||||||||||||||
Gross losses | -174 | (80 | ) | ||||||||||||||||||
Schedule of amortized cost and fair values maturities of available for sale investment securities | 31-Mar-15 | 31-Dec-14 | |||||||||||||||||||
Amortized | Amortized | ||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Due one year or less | $ | 45,265 | $ | 45,608 | $ | 38,674 | $ | 38,587 | |||||||||||||
Due after one year through five years | 120,027 | 120,832 | 113,081 | 112,926 | |||||||||||||||||
Due after five years through ten years | 145,719 | 148,602 | 137,909 | 140,115 | |||||||||||||||||
Due after ten years | 49,628 | 49,456 | 64,307 | 63,952 | |||||||||||||||||
Total | $ | 360,639 | $ | 364,498 | $ | 353,971 | $ | 355,580 | |||||||||||||
Summary of earnings on both taxable and tax-exempt investment securities | For the Three Months Ended | ||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Taxable earnings on investment securities | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | 135 | $ | 48 | |||||||||||||||||
Mortgage backed securities | 854 | 1,025 | |||||||||||||||||||
State and municipal securities | 62 | - | |||||||||||||||||||
Corporate debt securities | - | 3 | |||||||||||||||||||
Asset backed securities | 47 | 75 | |||||||||||||||||||
Non-taxable earnings on investment securities | |||||||||||||||||||||
State and municipal securities | 569 | 439 | |||||||||||||||||||
Total | $ | 1,667 | $ | 1,590 | |||||||||||||||||
Loans_and_Allowance_for_Loan_a1
Loans and Allowance for Loan and Lease Losses (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Loans and Allowance for Loan and Lease Losses | ||||||||||||||||||||||
Summary of outstanding loan balances | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||
Non-PCI | PCI | Non-PCI | PCI | |||||||||||||||||||
Loans | Loans | Total | Loans | Loans | Total | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Multi-family residential | $ | 77,684 | $ | - | $ | 77,684 | $ | 78,645 | $ | - | $ | 78,645 | ||||||||||
Residential 1 to 4 family | 142,928 | 562 | 143,490 | 126,640 | 561 | 127,201 | ||||||||||||||||
Home equity lines of credit | 35,928 | - | 35,928 | 38,252 | - | 38,252 | ||||||||||||||||
Commercial | 569,783 | 5,753 | 575,536 | 584,056 | 4,416 | 588,472 | ||||||||||||||||
Farmland | 108,779 | - | 108,779 | 96,708 | 1,665 | 98,373 | ||||||||||||||||
Land | 19,781 | 838 | 20,619 | 19,316 | 851 | 20,167 | ||||||||||||||||
Construction | 27,001 | - | 27,001 | 24,493 | - | 24,493 | ||||||||||||||||
Total real estate secured | 981,884 | 7,153 | 989,037 | 968,110 | 7,493 | 975,603 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 145,646 | 1,266 | 146,912 | 153,403 | 1,384 | 154,787 | ||||||||||||||||
Agriculture | 62,722 | 1,428 | 64,150 | 53,678 | 1,423 | 55,101 | ||||||||||||||||
Other | 5 | - | 5 | 14 | - | 14 | ||||||||||||||||
Total commercial | 208,373 | 2,694 | 211,067 | 207,095 | 2,807 | 209,902 | ||||||||||||||||
Installment | 7,008 | - | 7,008 | 7,723 | - | 7,723 | ||||||||||||||||
Overdrafts | 207 | - | 207 | 255 | - | 255 | ||||||||||||||||
Total gross loans held for investment | 1,197,472 | 9,847 | 1,207,319 | 1,183,183 | 10,300 | 1,193,483 | ||||||||||||||||
Net deferred loan fees | -1,221 | - | -1,221 | -1,445 | - | (1,445 | ) | |||||||||||||||
Allowance for loan and lease losses | -16,878 | -35 | -16,913 | -16,802 | - | (16,802 | ) | |||||||||||||||
Total net loans held for investment | $ | 1,179,373 | $ | 9,812 | $ | 1,189,185 | $ | 1,164,936 | $ | 10,300 | $ | 1,175,236 | ||||||||||
Loans held for sale | $ | 9,493 | $ | - | $ | 9,493 | $ | 2,586 | $ | - | $ | 2,586 | ||||||||||
Summary of the recorded investment in non-PCI and PCI impaired loans | For the Three Months Ended March 31, 2015 | |||||||||||||||||||||
Unpaid | Specific | Average | Interest | |||||||||||||||||||
Recorded | Principal | Allowance for | Recorded | Income | ||||||||||||||||||
Investment | Balance | Impaired Loans | Investment | Recognized | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Non-PCI Loans | ||||||||||||||||||||||
Without Related Allowance | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | $ | 653 | $ | 779 | $ | - | $ | 457 | $ | - | ||||||||||||
Home equity lines of credit | 46 | 128 | - | 152 | - | |||||||||||||||||
Commercial | 4,138 | 5,605 | - | 4,069 | 36 | |||||||||||||||||
Farmland | 279 | 278 | - | 281 | 3 | |||||||||||||||||
Land | 1,344 | 2,042 | - | 1,407 | 20 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 3,835 | 4,161 | - | 3,082 | 10 | |||||||||||||||||
Agriculture | 1,558 | 1,596 | - | 1,139 | 13 | |||||||||||||||||
Installment | 163 | 227 | - | 137 | 1 | |||||||||||||||||
Total | 12,016 | 14,816 | - | 10,724 | 83 | |||||||||||||||||
With Related Allowance | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Commercial | 484 | 684 | 100 | 491 | - | |||||||||||||||||
Land | 4,811 | 8,487 | 1,415 | 4,844 | 3 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 1,573 | 1,551 | 131 | 1,581 | 25 | |||||||||||||||||
Total | 6,868 | 10,722 | 1,646 | 6,916 | 28 | |||||||||||||||||
Total Non-PCI impaired loans | $ | 18,884 | $ | 25,538 | $ | 1,646 | $ | 17,640 | $ | 111 | ||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||||||||
Unpaid | Specific | Average | Interest | |||||||||||||||||||
Recorded | Principal | Allowance for | Recorded | Income | ||||||||||||||||||
Investment (1) | Balance | Impaired Loans | Investment | Recognized | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
PCI Loans | ||||||||||||||||||||||
Without Related Allowance | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | $ | 451 | $ | 686 | $ | - | $ | 451 | $ | 12 | ||||||||||||
Commercial | 4,749 | 6,265 | - | 4,916 | 547 | |||||||||||||||||
Land | 556 | 683 | - | 558 | 18 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 604 | 988 | - | 652 | 31 | |||||||||||||||||
Agriculture | 1,436 | 1,492 | - | 1,433 | 29 | |||||||||||||||||
Total | 7,796 | 10,114 | - | 8,010 | 637 | |||||||||||||||||
With Related Allowance | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | 115 | 197 | 3 | 114 | 3 | |||||||||||||||||
Commercial | 1,027 | 1,071 | 11 | 1,025 | 22 | |||||||||||||||||
Land | 285 | 289 | 8 | 290 | 5 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 666 | 734 | 13 | 678 | 11 | |||||||||||||||||
Total | 2,093 | 2,291 | 35 | 2,107 | 41 | |||||||||||||||||
Total PCI loans | $ | 9,889 | $ | 12,405 | $ | 35 | $ | 10,117 | $ | 678 | ||||||||||||
-1 | Recorded investment includes accrued interest receivable. | |||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
December 31, 2014 | March 31, 2014 | |||||||||||||||||||||
Unpaid | Specific | Average | Interest | |||||||||||||||||||
Recorded | Principal | Allowance for | Recorded | Income | ||||||||||||||||||
Investment | Balance | Impaired Loans | Investment | Recognized | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Non-PCI Loans | ||||||||||||||||||||||
Without Related Allowance | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | $ | 260 | $ | 383 | $ | - | $ | 770 | $ | 7 | ||||||||||||
Home equity lines of credit | 258 | 340 | - | - | - | |||||||||||||||||
Commercial | 4,000 | 6,255 | - | 820 | 6 | |||||||||||||||||
Farmland | 283 | 282 | - | - | - | |||||||||||||||||
Land | 1,470 | 2,355 | - | 1,285 | 16 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 2,875 | 3,967 | - | 1,936 | 10 | |||||||||||||||||
Agriculture | 720 | 760 | - | 908 | 6 | |||||||||||||||||
Installment | 112 | 201 | - | 106 | 1 | |||||||||||||||||
Total | 9,978 | 14,543 | - | 5,824 | 46 | |||||||||||||||||
With Related Allowance | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Commercial | 498 | 688 | 148 | - | - | |||||||||||||||||
Land | 4,876 | 8,499 | 1,472 | 6,657 | 21 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 1,043 | 1,054 | 151 | 3,317 | 37 | |||||||||||||||||
Total | 6,417 | 10,241 | 1,771 | 9,974 | 58 | |||||||||||||||||
Total Non-PCI impaired loans | $ | 16,395 | $ | 24,784 | $ | 1,771 | $ | 15,798 | $ | 104 | ||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
December 31, 2014 | March 31, 2014 | |||||||||||||||||||||
Unpaid | Specific | Average | Interest | |||||||||||||||||||
Recorded | Principal | Allowance for | Recorded | Income | ||||||||||||||||||
Investment (1) | Balance | Impaired Loans | Investment | Recognized | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
PCI Loans | ||||||||||||||||||||||
Without Related Allowance | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | $ | 564 | $ | 886 | $ | - | $ | 313 | $ | 1 | ||||||||||||
Home equity lines of credit | - | - | - | 41 | - | |||||||||||||||||
Commercial | 4,432 | 6,109 | - | 2,749 | 69 | |||||||||||||||||
Farmland | 1,673 | 2,027 | - | 864 | 1 | |||||||||||||||||
Land | 853 | 993 | - | 493 | - | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 1,388 | 1,883 | - | 1,274 | 46 | |||||||||||||||||
Agriculture | 1,431 | 1,492 | - | 638 | - | |||||||||||||||||
Total PCI loans | $ | 10,341 | $ | 13,390 | $ | - | $ | 6,372 | $ | 117 | ||||||||||||
-1 | Recorded investment includes accrued interest receivable. | |||||||||||||||||||||
Summary of loans classified as TDRs | March 31, 2015 | December 31, 2014 | ||||||||||||||||||||
Accrual | Non-accrual | Total | Accrual | Non-accrual | Total | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Non-PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | $ | - | $ | 653 | $ | 653 | $ | 130 | $ | 130 | $ | 260 | ||||||||||
Commercial | 2,605 | 241 | 2,846 | 2,449 | 78 | 2,527 | ||||||||||||||||
Farmland | 279 | - | 279 | 283 | - | 283 | ||||||||||||||||
Land | 1,218 | 4,932 | 6,150 | 1,109 | 5,149 | 6,258 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 2,226 | 1,545 | 3,771 | 2,177 | 1,593 | 3,770 | ||||||||||||||||
Agriculture | 931 | - | 931 | 34 | - | 34 | ||||||||||||||||
Installment | 120 | - | 120 | 69 | - | 69 | ||||||||||||||||
Total non-PCI loans | 7,379 | 7,371 | 14,750 | 6,251 | 6,950 | 13,201 | ||||||||||||||||
PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Commercial | - | - | - | 223 | - | 223 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 36 | 98 | 134 | 37 | 107 | 144 | ||||||||||||||||
Total PCI loans | 36 | 98 | 134 | 260 | 107 | 367 | ||||||||||||||||
Total TDRs | $ | 7,415 | $ | 7,469 | $ | 14,884 | $ | 6,511 | $ | 7,057 | $ | 13,568 | ||||||||||
Schedule of loan modifications resulted in TDRs for non-PCI and PCI loans | For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | |||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | |||||||||||||||||||
Number of | Recorded | Recorded | Number of | Recorded | Recorded | |||||||||||||||||
TDRs | Investment | Investment | TDRs | Investment | Investment | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Non-PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | 2 | $ | 534 | $ | 534 | - | $ | - | $ | - | ||||||||||||
Commercial | 3 | 564 | 564 | 1 | 166 | 166 | ||||||||||||||||
Land | - | - | - | 1 | 160 | 160 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 4 | 187 | 187 | 4 | 920 | 920 | ||||||||||||||||
Agriculture | 1 | 898 | 898 | 1 | 662 | 662 | ||||||||||||||||
Installment | 1 | 57 | 57 | 1 | 73 | 73 | ||||||||||||||||
Total | 11 | $ | 2,240 | $ | 2,240 | 8 | $ | 1,981 | $ | 1,981 | ||||||||||||
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 Three Months Ended | ||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | |||||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||||
TDRs | Investment | TDRs | Investment | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Non-PCI Loans | ||||||||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 1 | $ | 18 | - | $ | - | ||||||||||||||||
Total | 1 | $ | 18 | - | $ | - | ||||||||||||||||
Schedule of loan portfolio by the Company's internal risk grading system | March 31, 2015 | |||||||||||||||||||||
Credit Risk Grades | ||||||||||||||||||||||
Special | ||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Total | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Non-PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Multi-family residential | $ | 77,069 | $ | - | $ | 615 | $ | - | $ | 77,684 | ||||||||||||
Residential 1 to 4 family | 141,633 | 198 | 1,097 | - | 142,928 | |||||||||||||||||
Home equity lines of credit | 35,228 | - | 700 | - | 35,928 | |||||||||||||||||
Commercial | 543,163 | 2,819 | 23,801 | - | 569,783 | |||||||||||||||||
Farmland | 107,234 | - | 1,545 | - | 108,779 | |||||||||||||||||
Land | 13,493 | 9 | 6,279 | - | 19,781 | |||||||||||||||||
Construction | 27,001 | - | - | - | 27,001 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 130,546 | 8,239 | 6,719 | 142 | 145,646 | |||||||||||||||||
Agriculture | 60,740 | 150 | 1,832 | - | 62,722 | |||||||||||||||||
Other | - | 5 | - | - | 5 | |||||||||||||||||
Installment | 6,909 | - | 99 | - | 7,008 | |||||||||||||||||
Overdrafts | 207 | - | - | - | 207 | |||||||||||||||||
Total non-PCI loans | 1,143,223 | 11,420 | 42,687 | 142 | 1,197,472 | |||||||||||||||||
PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | - | 448 | 114 | - | 562 | |||||||||||||||||
Commercial | - | 678 | 5,075 | - | 5,753 | |||||||||||||||||
Land | 284 | - | 554 | - | 838 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 36 | 91 | 1,139 | - | 1,266 | |||||||||||||||||
Agriculture | - | - | 1,428 | - | 1,428 | |||||||||||||||||
Total PCI loans | 320 | 1,217 | 8,310 | - | 9,847 | |||||||||||||||||
Total loans held for investment | $ | 1,143,543 | $ | 12,637 | $ | 50,997 | $ | 142 | $ | 1,207,319 | ||||||||||||
December 31, 2014 | ||||||||||||||||||||||
Credit Risk Grades | ||||||||||||||||||||||
Special | ||||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | Total | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Non-PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Multi-family residential | $ | 78,023 | $ | - | $ | 622 | $ | - | $ | 78,645 | ||||||||||||
Residential 1 to 4 family | 125,733 | 199 | 708 | - | 126,640 | |||||||||||||||||
Home equity lines of credit | 37,638 | - | 614 | - | 38,252 | |||||||||||||||||
Commercial | 560,478 | 3,010 | 20,568 | - | 584,056 | |||||||||||||||||
Farmland | 92,481 | 2,665 | 1,562 | - | 96,708 | |||||||||||||||||
Land | 12,929 | - | 6,387 | - | 19,316 | |||||||||||||||||
Construction | 24,493 | - | - | - | 24,493 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 138,202 | 2,943 | 12,104 | 154 | 153,403 | |||||||||||||||||
Agriculture | 52,678 | 280 | 720 | - | 53,678 | |||||||||||||||||
Other | - | - | 14 | - | 14 | |||||||||||||||||
Installment | 7,618 | - | 105 | - | 7,723 | |||||||||||||||||
Overdrafts | 255 | - | - | - | 255 | |||||||||||||||||
Total non-PCI loans | 1,130,528 | 9,097 | 43,404 | 154 | 1,183,183 | |||||||||||||||||
PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | - | - | 561 | - | 561 | |||||||||||||||||
Commercial | 126 | 680 | 3,610 | - | 4,416 | |||||||||||||||||
Farmland | - | - | 1,665 | - | 1,665 | |||||||||||||||||
Land | 294 | - | 557 | - | 851 | |||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 36 | 97 | 1,175 | 76 | 1,384 | |||||||||||||||||
Agriculture | - | - | 1,423 | - | 1,423 | |||||||||||||||||
Total PCI loans | 456 | 777 | 8,991 | 76 | 10,300 | |||||||||||||||||
Total loans held for investment | $ | 1,130,984 | $ | 9,874 | $ | 52,395 | $ | 230 | $ | 1,193,483 | ||||||||||||
Summary of the aging of loans held for investment | March 31, 2015 | |||||||||||||||||||||
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 | $ | 77,684 | $ | - | $ | - | $ | - | $ | - | $ | 77,684 | ||||||||||
Residential 1 to 4 family | 142,283 | - | - | - | 645 | 142,928 | ||||||||||||||||
Home equity lines of credit | 35,882 | - | - | - | 46 | 35,928 | ||||||||||||||||
Commercial | 567,731 | - | - | - | 2,052 | 569,783 | ||||||||||||||||
Farmland | 108,779 | - | - | - | - | 108,779 | ||||||||||||||||
Land | 14,744 | 98 | - | - | 4,939 | 19,781 | ||||||||||||||||
Construction | 27,001 | - | - | - | - | 27,001 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 142,386 | 90 | - | - | 3,170 | 145,646 | ||||||||||||||||
Agriculture | 61,197 | - | 898 | - | 627 | 62,722 | ||||||||||||||||
Other | 5 | - | - | - | - | 5 | ||||||||||||||||
Installment | 6,867 | 98 | - | - | 43 | 7,008 | ||||||||||||||||
Overdrafts | 207 | - | - | - | - | 207 | ||||||||||||||||
Total non-PCI loans | 1,184,766 | 286 | 898 | - | 11,522 | 1,197,472 | ||||||||||||||||
PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | 562 | - | - | - | - | 562 | ||||||||||||||||
Commercial | 5,753 | - | - | - | - | 5,753 | ||||||||||||||||
Land | 838 | - | - | - | - | 838 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 941 | - | - | - | 325 | 1,266 | ||||||||||||||||
Agriculture | 1,428 | - | - | - | - | 1,428 | ||||||||||||||||
Total PCI loans | 9,522 | - | - | - | 325 | 9,847 | ||||||||||||||||
Total loans held for investment | $ | 1,194,288 | $ | 286 | $ | 898 | $ | - | $ | 11,847 | $ | 1,207,319 | ||||||||||
December 31, 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 | $ | 78,645 | $ | - | $ | - | $ | - | $ | - | $ | 78,645 | ||||||||||
Residential 1 to 4 family | 126,516 | - | - | - | 124 | 126,640 | ||||||||||||||||
Home equity lines of credit | 37,994 | - | - | - | 258 | 38,252 | ||||||||||||||||
Commercial | 581,971 | - | - | - | 2,085 | 584,056 | ||||||||||||||||
Farmland | 96,708 | - | - | - | - | 96,708 | ||||||||||||||||
Land | 14,079 | - | - | - | 5,237 | 19,316 | ||||||||||||||||
Construction | 24,493 | - | - | - | - | 24,493 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 151,656 | - | 21 | - | 1,726 | 153,403 | ||||||||||||||||
Agriculture | 52,992 | - | - | - | 686 | 53,678 | ||||||||||||||||
Other | 14 | - | - | - | - | 14 | ||||||||||||||||
Installment | 7,621 | 56 | 3 | - | 43 | 7,723 | ||||||||||||||||
Overdrafts | 255 | - | - | - | - | 255 | ||||||||||||||||
Total non-PCI loans | 1,172,944 | 56 | 24 | - | 10,159 | 1,183,183 | ||||||||||||||||
PCI Loans | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | 561 | - | - | - | - | 561 | ||||||||||||||||
Commercial | 4,416 | - | - | - | - | 4,416 | ||||||||||||||||
Farmland | 1,665 | - | - | - | - | 1,665 | ||||||||||||||||
Land | 851 | - | - | - | - | 851 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 1,008 | - | - | - | 376 | 1,384 | ||||||||||||||||
Agriculture | 1,423 | - | - | - | - | 1,423 | ||||||||||||||||
Total PCI loans | 9,924 | - | - | - | 376 | 10,300 | ||||||||||||||||
Total loans held for investment | $ | 1,182,868 | $ | 56 | $ | 24 | $ | - | $ | 10,535 | $ | 1,193,483 | ||||||||||
Schedule of carrying amount and unpaid principal balance of purchased credit impaired loans | March 31, 2015 | December 31, 2014 | ||||||||||||||||||||
Unpaid Principal | Carrying | Unpaid Principal | Carrying | |||||||||||||||||||
Balance | Amount | Balance | Amount | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||
Residential 1 to 4 family | $ | 883 | $ | 562 | $ | 886 | $ | 561 | ||||||||||||||
Commercial | 7,336 | 5,753 | 6,109 | 4,416 | ||||||||||||||||||
Farmland | - | - | 2,027 | 1,665 | ||||||||||||||||||
Land | 972 | 838 | 993 | 851 | ||||||||||||||||||
Total real estate secured | 9,191 | 7,153 | 10,015 | 7,493 | ||||||||||||||||||
Commercial | ||||||||||||||||||||||
Commercial and industrial | 1,744 | 1,266 | 1,883 | 1,384 | ||||||||||||||||||
Agriculture | 1,492 | 1,428 | 1,492 | 1,423 | ||||||||||||||||||
Total commercial | 3,236 | 2,694 | 3,375 | 2,807 | ||||||||||||||||||
Total PCI loans | $ | 12,427 | $ | 9,847 | $ | 13,390 | $ | 10,300 | ||||||||||||||
Schedule of accretable yield, or income expected to be collected | For the Three Months Ended | |||||||||||||||||||||
31-Mar-15 | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Balance, December 31, 2014 | $ | 4,374 | ||||||||||||||||||||
Accretion of income | (678 | ) | ||||||||||||||||||||
Reclassifications from nonaccretable difference (1) | 547 | |||||||||||||||||||||
Balance, March 31, 2015 | $ | 4,243 | ||||||||||||||||||||
-1 | Reclassification from nonaccretable difference is attributable to positive changes in expected future cash flows on certain PCI loans. | |||||||||||||||||||||
Summary of the activity in the allowance for loan and lease losses by portfolio segment | For the Three Months Ended March 31, 2015 | |||||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision for | Balance | ||||||||||||||||||
December 31, | Loan and | March 31, | ||||||||||||||||||||
2014 | Lease Losses | 2015 | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Land | $ | 1,655 | $ | -34 | $ | 11 | $ | 16 | $ | 1,648 | ||||||||||||
Other real estate secured | 9,474 | -39 | 3 | 332 | 9,770 | |||||||||||||||||
Commercial | 5,125 | - | 167 | -797 | 4,495 | |||||||||||||||||
Installment | 172 | - | 3 | -12 | 163 | |||||||||||||||||
All other loans | 30 | - | - | -3 | 27 | |||||||||||||||||
Unallocated | 346 | 464 | 810 | |||||||||||||||||||
Total | $ | 16,802 | $ | -73 | $ | 184 | $ | - | $ | 16,913 | ||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision for | Balance | ||||||||||||||||||
December 31, | Loan and | March 31, | ||||||||||||||||||||
2013 | Lease Losses | 2014 | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Land | $ | 3,402 | $ | - | $ | 7 | $ | -254 | $ | 3,155 | ||||||||||||
Other real estate secured | 9,283 | -92 | 16 | 190 | 9,397 | |||||||||||||||||
Commercial | 4,781 | - | 175 | -58 | 4,898 | |||||||||||||||||
Installment | 99 | -2 | 5 | -15 | 87 | |||||||||||||||||
All other loans | 32 | - | - | -6 | 26 | |||||||||||||||||
Unallocated | 262 | 143 | 405 | |||||||||||||||||||
Total | $ | 17,859 | $ | -94 | $ | 203 | $ | - | $ | 17,968 | ||||||||||||
Schedule of allowance for loan and lease losses and the recorded investment in loans by impairment methodology | 31-Mar-15 | |||||||||||||||||||||
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 | $ | 1,415 | $ | 225 | $ | 8 | $ | 6,155 | $ | 13,623 | $ | 841 | ||||||||||
Other real estate secured | 100 | 9,656 | 14 | 5,600 | 956,476 | 6,342 | ||||||||||||||||
Commercial | 131 | 4,351 | 13 | 6,966 | 201,395 | 2,706 | ||||||||||||||||
Installment | - | 163 | - | 163 | 6,845 | - | ||||||||||||||||
All other loans | - | 27 | - | - | 207 | - | ||||||||||||||||
Unallocated | - | 810 | - | |||||||||||||||||||
Total | $ | 1,646 | $ | 15,232 | $ | 35 | $ | 18,884 | $ | 1,178,546 | $ | 9,889 | ||||||||||
31-Dec-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 | $ | 1,472 | $ | 183 | $ | - | $ | 6,346 | $ | 12,968 | $ | 853 | ||||||||||
Other real estate secured | 148 | 9,326 | - | 5,299 | 943,468 | 6,669 | ||||||||||||||||
Commercial | 151 | 4,974 | - | 4,633 | 202,450 | 2,819 | ||||||||||||||||
Installment | - | 172 | - | 112 | 7,611 | - | ||||||||||||||||
All other loans | - | 30 | - | - | 255 | - | ||||||||||||||||
Unallocated | - | 346 | - | |||||||||||||||||||
Total | $ | 1,771 | $ | 15,031 | $ | - | $ | 16,390 | $ | 1,166,752 | $ | 10,341 | ||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||
Summary of the gross carrying amount, accumulated amortization and net carrying amount of CDI | March 31, 2015 | ||||||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||||||
Amount | Amortization | Amount | |||||||||||
(dollars in thousands) | |||||||||||||
Core deposit intangibles | $ | 9,261 | $ | -4,176 | $ | 5,085 | |||||||
Summary of an estimate for future amortization expense | March 31, 2015 | ||||||||||||
Beginning | Acquired | Estimated | Projected Ending | ||||||||||
Balance | CDI | Amortization | Balance | ||||||||||
(dollars in thousands) | |||||||||||||
Period | |||||||||||||
Year 2015 | $ | 5,347 | $ | - | $ | -1,049 | $ | 4,298 | |||||
Year 2016 | 4,298 | - | -944 | 3,354 | |||||||||
Year 2017 | 3,354 | - | -588 | 2,766 | |||||||||
Year 2018 | 2,766 | - | -549 | 2,217 | |||||||||
Year 2019 | 2,217 | - | -522 | 1,695 | |||||||||
Year 2020 | 1,695 | - | -441 | 1,254 | |||||||||
Sharebased_Compensation_Plans_
Share-based Compensation Plans (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Share-based Compensation Plans | |||||||||||
Summary of recognized and unrecognized share based compensation expense | For the Three Months Ended | ||||||||||
March 31, | |||||||||||
2015 | 2014 | ||||||||||
(dollars in thousands) | |||||||||||
Share-based compensation expense: | |||||||||||
Stock options | $ | 112 | $ | 164 | |||||||
Restricted stock | 129 | 83 | |||||||||
Total expense | $ | 241 | $ | 247 | |||||||
Unrecognized compensation expense: | |||||||||||
Stock options | $ | 1,310 | $ | 1,013 | |||||||
Restricted stock | 1,064 | 865 | |||||||||
Total unrecognized expense | $ | 2,374 | $ | 1,878 | |||||||
Summary of activity related to restricted stock granted, vested and forfeited | Number of | Average Grant | |||||||||
Shares | Date Fair Value | ||||||||||
Balance December 31, 2014 | 204,121 | $ | 6.65 | ||||||||
Granted | 32,652 | 7.84 | |||||||||
Vested | -26,855 | 6.36 | |||||||||
Forfeited | -4,547 | 6.66 | |||||||||
Balance March 31, 2015 | 205,371 | $ | 6.88 | ||||||||
Schedule of assumptions used in the calculation of weighted average fair value of options granted | For the Three Months Ended | ||||||||||
March 31, | |||||||||||
2015 | 2014 | ||||||||||
Expected volatility | 38.17% | 54.00% | |||||||||
Expected term (years) | 5.00 | 6.00 | |||||||||
Dividend yield | 2.55% | 0.00% | |||||||||
Risk free rate | 1.57% | 1.76% | |||||||||
Weighted-average grant date fair value | $ | 2.17 | $ | 3.99 | |||||||
Summary of activity related to options granted, exercised, and forfeited | Options Outstanding | Options | |||||||||
Number | Weighted Average | Available for | |||||||||
of Shares | Exercise Price | Grant (1) | |||||||||
Balance, December 31, 2014 | 742,557 | $ | 6.83 | 2,003,176 | |||||||
Granted | 215,429 | 7.84 | |||||||||
Forfeited | -21,557 | 6.60 | |||||||||
Exercised | -17,353 | 4.33 | |||||||||
Balance, March 31, 2015 | 919,076 | $ | 7.12 | - | |||||||
(1)The 2005 Equity Based Compensation Plan was the only plan from which the Company could grant share-based compensation awards. This plan expired in March 2015, and as of March 31, 2015, no further grants could be issued from this plan. | |||||||||||
Summary of the aggregate intrinsic value of options vested and expected to vest and exercisable | March 31, 2015 | ||||||||||
Weighted Average | |||||||||||
Weighted | Remaining | Aggregate | |||||||||
Average | Contractual Life | Intrinsic | |||||||||
Shares | Exercise Price | (Years) | Value | ||||||||
Vested or expected to vest | 866,402 | $ | 7.10 | 7.98 | $ | 1,386,892 | |||||
Exercisable | 319,255 | $ | 6.96 | 5.98 | $ | 773,197 | |||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
Shareholders' Equity | ||||||||||||||||||
Schedule of the Company's and the Bank's actual regulatory capital ratios | ||||||||||||||||||
Basel III | Pre-Basel III | |||||||||||||||||
Regulatory | March 31, 2015 | Regulatory | December 31, 2014 | March 31, 2014 | ||||||||||||||
Standard to be | Standard to be | |||||||||||||||||
Well | Well | |||||||||||||||||
Capitalized (1) | Company | Bank | Capitalized (1) | Company | Bank | Company | Bank | |||||||||||
Ratio | ||||||||||||||||||
Common Equity Tier I capital | 6.50% | 12.50% | 12.65% | N/A | N/A | N/A | N/A | N/A | ||||||||||
Leverage ratio | 5.00% | 10.38% | 10.01% | 5.00% | 10.22% | 9.83% | 11.64% | 11.25% | ||||||||||
Tier I capital | 8.00% | 13.12% | 12.65% | 6.00% | 13.13% | 12.63% | 12.25% | 11.84% | ||||||||||
Total risk-based capital | 10.00% | 14.36% | 13.90% | 10.00% | 14.38% | 13.88% | 13.50% | 13.10% | ||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Earnings Per Share | ||||||||||||
Schedule of calculation of both basic and diluted earnings per common share | For the Three Months Ended March 31, | |||||||||||
2015 | 2014 | |||||||||||
Net | Net | |||||||||||
Income | Shares | Income | Shares | |||||||||
(dollars in thousands, except per share data) | ||||||||||||
Net income (loss) | $ | 4,069 | $ | -1,763 | ||||||||
Weighted average shares outstanding | 34,107,168 | 27,816,911 | ||||||||||
Basic earnings (loss) per common share | $ | 0.12 | $ | -0.06 | ||||||||
Dilutive effect of share-based compensation awards | 159,314 | - | ||||||||||
Weighted average diluted shares outstanding | 34,266,482 | 27,816,911 | ||||||||||
Diluted earnings (loss) per common share | $ | 0.12 | $ | -0.06 | ||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Commitments and Contingencies. | ||||||||
Schedule of outstanding financial commitments | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
(dollars in thousands) | ||||||||
Commitments to extend credit | $ | 206,977 | $ | 237,733 | ||||
Standby letters of credit | 14,992 | 15,542 | ||||||
Total commitments and standby letters of credit | $ | 221,969 | $ | 253,275 | ||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Feb. 28, 2014 |
segment | |||
Nature of Operations | |||
Number of business segments | 1 | ||
Financial instruments of the Company measured at fair value on a recurring basis | |||
Total assets | $1,776,594 | $1,710,127 | |
MISN | |||
Financial instruments of the Company measured at fair value on a recurring basis | |||
Percentage acquired of outstanding common shares | 100.00% | ||
All Non-United States countries | |||
Financial instruments of the Company measured at fair value on a recurring basis | |||
Total assets | 0 | ||
Revenue | $0 |
Business_Combination_Details
Business Combination (Details) (USD $) | 3 Months Ended | 0 Months Ended |
Mar. 31, 2014 | Feb. 28, 2014 | |
Pro Forma Financial Information | ||
Net interest Income | $15,379,000 | |
Non-interest income | 2,364,000 | |
Non-interest expense | 20,473,000 | |
Loss before income tax benefit | -2,730,000 | |
Income tax benefit | -1,013,000 | |
Net loss | -1,717,000 | |
Loss Per Common Share | ||
Basic (in dollars per share) | ($0.05) | |
Diluted (in dollars per share) | ($0.05) | |
MISN | ||
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 |
Fair_Value_of_Assets_and_Liabi2
Fair Value of Assets and Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | $364,498 | $355,580 |
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 | 42,112 | 19,664 |
Mortgage-backed securities - Agency | ||
Financial instruments of the Company measured at fair value on a recurring basis | ||
Total assets measured on a recurring basis | 198,029 | 215,398 |
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 | 13,754 | 11,901 |
State and municipal securities | ||
Financial instruments of the Company measured at fair value on a recurring basis | ||
Total assets measured on a recurring basis | 93,745 | 82,592 |
Asset backed securities | ||
Financial instruments of the Company measured at fair value on a recurring basis | ||
Total assets measured on a recurring basis | 16,858 | 26,025 |
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 | 364,498 | 355,580 |
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 | 364,498 | 355,580 |
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 | 42,112 | 19,664 |
Recurring basis | Assets At Fair Value | Mortgage-backed securities - Agency | ||
Financial instruments of the Company measured at fair value on a recurring basis | ||
Total assets measured on a recurring basis | 198,029 | 215,398 |
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 | 13,754 | 11,901 |
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 | 93,745 | 82,592 |
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 | 16,858 | 26,025 |
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 | 364,498 | 355,580 |
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 | 42,112 | 19,664 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities - Agency | ||
Financial instruments of the Company measured at fair value on a recurring basis | ||
Total assets measured on a recurring basis | 198,029 | 215,398 |
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 | 13,754 | 11,901 |
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 | 93,745 | 82,592 |
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 | $16,858 | $26,025 |
Fair_Value_of_Assets_and_Liabi3
Fair Value of Assets and Liabilities (Details 2) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Recurring basis | ||
Total Losses for assets measured at fair value on a non-recurring basis | ||
Assets transfer from Level 1 to level 2 | $0 | |
Assets transfer from Level 2 to level 1 | 0 | |
Non-recurring basis | ||
Total Losses for assets measured at fair value on a non-recurring basis | ||
Year to Date Losses/(Recoveries) | -50 | 80 |
Assets transfer from Level 1 to level 2 | 0 | |
Assets transfer from Level 2 to level 1 | 0 | |
Non-recurring basis | Commercial. | ||
Total Losses for assets measured at fair value on a non-recurring basis | ||
Year to Date Losses/(Recoveries) | 1,026 | |
Non-recurring basis | Land | ||
Total Losses for assets measured at fair value on a non-recurring basis | ||
Year to Date Losses/(Recoveries) on impaired loans | -50 | -946 |
Non-recurring basis | Assets At Fair Value | ||
Assets | ||
Total assets measured on a non-recurring basis | 3,261 | 4,586 |
Non-recurring basis | Assets At Fair Value | Commercial. | ||
Assets | ||
Impaired loans | 1,325 | |
Non-recurring basis | Assets At Fair Value | Land | ||
Assets | ||
Impaired loans | 3,261 | 3,261 |
Non-recurring basis | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Total assets measured on a non-recurring basis | 3,261 | 4,586 |
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Commercial. | ||
Assets | ||
Impaired loans | 1,325 | |
Non-recurring basis | Significant Unobservable Inputs (Level 3) | Land | ||
Assets | ||
Impaired loans | $3,261 | $3,261 |
Fair_Value_of_Assets_and_Liabi4
Fair Value of Assets and Liabilities (Details 3) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Fair Value | $364,498 | $355,580 |
Liabilities | ||
Non-interest bearing deposits | 484,106 | 461,479 |
Junior subordinated debentures | 13,286 | 13,233 |
Off-balance sheet instruments, commitments to extend credit and standby letters of credit, Notional Amount | 221,969 | 253,275 |
Off-balance sheet instruments, commitments to extend credit and standby letters of credit, Cost to Cede or Assume | 2,220 | 2,533 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Cash and cash equivalents | 75,478 | 35,580 |
Liabilities | ||
Non-interest bearing deposits | 484,106 | 461,479 |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Fair Value | 364,498 | 355,580 |
Loans held for sale | 9,493 | 2,586 |
Accrued interest receivable | 1,805 | 2,038 |
Liabilities | ||
Interest bearing deposits | 978,984 | 936,151 |
Federal Home Loan Bank advances | 94,628 | 96,679 |
Accrued interest payable | 483 | 401 |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Loans receivable, net of deferred fees and costs | 1,226,517 | 1,196,997 |
Accrued interest receivable | 3,926 | 3,621 |
Liabilities | ||
Junior subordinated debentures | 9,948 | 9,297 |
Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 75,478 | 35,580 |
Fair Value | 364,498 | 355,580 |
Federal Home Loan Bank stock | 7,853 | 7,853 |
Loans receivable, net of deferred fees and costs | 1,206,098 | 1,192,038 |
Loans held for sale | 9,493 | 2,586 |
Accrued interest receivable | 5,731 | 5,659 |
Liabilities | ||
Non-interest bearing deposits | 484,106 | 461,479 |
Interest bearing deposits | 976,162 | 933,325 |
Federal Home Loan Bank advances | 93,554 | 95,558 |
Junior subordinated debentures | 13,286 | 13,233 |
Accrued interest payable | 483 | 401 |
Assets At Fair Value | ||
Assets | ||
Cash and cash equivalents | 75,478 | 35,580 |
Fair Value | 364,498 | 355,580 |
Loans receivable, net of deferred fees and costs | 1,226,517 | 1,196,997 |
Loans held for sale | 9,493 | 2,586 |
Accrued interest receivable | 5,731 | 5,659 |
Liabilities | ||
Non-interest bearing deposits | 484,106 | 461,479 |
Interest bearing deposits | 978,984 | 936,151 |
Federal Home Loan Bank advances | 94,628 | 96,679 |
Junior subordinated debentures | 9,948 | 9,297 |
Accrued interest payable | $483 | $401 |
Investment_Securities_Details
Investment Securities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ||
Total | $360,639 | $353,971 |
Gross Unrealized Gains | 5,137 | 4,147 |
Gross Unrealized Losses | -1,278 | -2,538 |
Fair Value | 364,498 | 355,580 |
Obligations of U.S. government agencies | ||
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ||
Total | 41,892 | 19,562 |
Gross Unrealized Gains | 356 | 191 |
Gross Unrealized Losses | -136 | -89 |
Fair Value | 42,112 | 19,664 |
Mortgage-backed securities - Agency | ||
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ||
Total | 197,383 | 216,492 |
Gross Unrealized Gains | 1,519 | 1,092 |
Gross Unrealized Losses | -873 | -2,186 |
Fair Value | 198,029 | 215,398 |
Mortgage-backed securities - Non-agency | ||
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ||
Total | 13,767 | 11,891 |
Gross Unrealized Gains | 17 | 21 |
Gross Unrealized Losses | -30 | -11 |
Fair Value | 13,754 | 11,901 |
State and municipal securities | ||
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ||
Total | 90,546 | 79,810 |
Gross Unrealized Gains | 3,245 | 2,843 |
Gross Unrealized Losses | -46 | -61 |
Fair Value | 93,745 | 82,592 |
Asset backed securities | ||
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ||
Total | 17,051 | 26,216 |
Gross Unrealized Losses | -193 | -191 |
Fair Value | $16,858 | $26,025 |
Investment_Securities_Details_
Investment Securities (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
security | ||
Investment securities | ||
Less Than Twelve Months, Fair Value | 77,498 | $62,277 |
Less Than Twelve Months, Unrealized Loss | -616 | -741 |
Twelve Months or More, Fair Value | 49,687 | 81,265 |
Twelve Months or More, Unrealized Loss | -662 | -1,797 |
Total, Fair Value | 127,185 | 143,542 |
Total, Unrealized Loss | -1,278 | -2,538 |
Securities were in an unrealized loss position | 51 | 57 |
Investment security holdings | Minimum | ||
Securities in an unrealized loss position | ||
Maturity period of available-for-sale securities | 1 year | |
Investment security holdings | Maximum | ||
Securities in an unrealized loss position | ||
Maturity period of available-for-sale securities | 40 years | |
Obligations of U.S. government agencies | ||
Investment securities | ||
Less Than Twelve Months, Fair Value | 21,829 | 2,795 |
Less Than Twelve Months, Unrealized Loss | -136 | -17 |
Twelve Months or More, Fair Value | 2,607 | |
Twelve Months or More, Unrealized Loss | -72 | |
Total, Fair Value | 21,829 | 5,402 |
Total, Unrealized Loss | -136 | -89 |
Mortgage-backed securities - Agency | ||
Investment securities | ||
Less Than Twelve Months, Fair Value | 41,843 | 50,583 |
Less Than Twelve Months, Unrealized Loss | -409 | -670 |
Twelve Months or More, Fair Value | 31,851 | 58,753 |
Twelve Months or More, Unrealized Loss | -464 | -1,516 |
Total, Fair Value | 73,694 | 109,336 |
Total, Unrealized Loss | -873 | -2,186 |
Mortgage-backed securities - Non-agency | ||
Investment securities | ||
Less Than Twelve Months, Fair Value | 9,082 | 3,000 |
Less Than Twelve Months, Unrealized Loss | -30 | -7 |
Twelve Months or More, Fair Value | 507 | |
Twelve Months or More, Unrealized Loss | -4 | |
Total, Fair Value | 9,082 | 3,507 |
Total, Unrealized Loss | -30 | -11 |
State and municipal securities | ||
Investment securities | ||
Less Than Twelve Months, Fair Value | 4,744 | 5,899 |
Less Than Twelve Months, Unrealized Loss | -41 | -47 |
Twelve Months or More, Fair Value | 978 | 2,245 |
Twelve Months or More, Unrealized Loss | -5 | -14 |
Total, Fair Value | 5,722 | 8,144 |
Total, Unrealized Loss | -46 | -61 |
Asset backed securities | ||
Investment securities | ||
Twelve Months or More, Fair Value | 16,858 | 17,153 |
Twelve Months or More, Unrealized Loss | -193 | -191 |
Total, Fair Value | 16,858 | 17,153 |
Total, Unrealized Loss | -193 | ($191) |
Investment_Securities_Details_1
Investment Securities (Details 3) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Proceeds from the sales and calls of securities and the associated gains and losses | ||
Proceeds | $47,033 | $15,562 |
Gross gains | 679 | 78 |
Gross losses | -174 | -80 |
Income tax expense (benefit) related to net realized gains (losses) on sale of securities | $212 | ($1) |
Investment_Securities_Details_2
Investment Securities (Details 4) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Available for sale securities, Amortized cost | ||
Due one year or less | $45,265 | $38,674 |
Due after one year through five years | 120,027 | 113,081 |
Due after five years through ten years | 145,719 | 137,909 |
Due after ten years | 49,628 | 64,307 |
Total | 360,639 | 353,971 |
Available for sale securities, Fair Value | ||
Due one year or less | 45,608 | 38,587 |
Due after one year through five years | 120,832 | 112,926 |
Due after five years through ten years | 148,602 | 140,115 |
Due after ten years | 49,456 | 63,952 |
Total | 364,498 | 355,580 |
Securities pledged to secure public deposits | ||
Available for sale securities, Amortized cost | ||
Total | 110,700 | 67,300 |
Available for sale securities, Fair Value | ||
Total | $112,900 | $72,500 |
Investment_Securities_Details_3
Investment Securities (Details 5) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings on both taxable and tax-exempt investment securities | ||
Total | $1,667 | $1,590 |
Obligations of U.S. government agencies | ||
Earnings on both taxable and tax-exempt investment securities | ||
Taxable earnings on investment securities | 135 | 48 |
Mortgage backed securities | ||
Earnings on both taxable and tax-exempt investment securities | ||
Taxable earnings on investment securities | 854 | 1,025 |
State and municipal securities | ||
Earnings on both taxable and tax-exempt investment securities | ||
Taxable earnings on investment securities | 62 | |
Non-taxable earnings on investment securities | 569 | 439 |
Corporate debt securities | ||
Earnings on both taxable and tax-exempt investment securities | ||
Taxable earnings on investment securities | 3 | |
Asset backed securities | ||
Earnings on both taxable and tax-exempt investment securities | ||
Taxable earnings on investment securities | $47 | $75 |
Loans_and_Allowance_for_Loan_a2
Loans and Allowance for Loan and Lease Losses (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Outstanding loan balances | ||||
Total gross loans held for investment | $1,207,319,000 | $1,193,483,000 | ||
Net deferred loan fees | -1,221,000 | -1,445,000 | ||
Allowance for loan and lease losses | -16,913,000 | -17,968,000 | -16,802,000 | -17,859,000 |
Net loans held for investment | 1,189,185,000 | 1,175,236,000 | ||
Loans held for sale | 9,493,000 | 2,586,000 | ||
Concentration of Credit Risk | ||||
Loan portfolio collateralized by various forms of real estate | 998,500,000 | 978,200,000 | ||
Loans Serviced for Others | ||||
Unpaid principal balance of loans serviced for others, exclusive of SBA loans | 44,500,000 | 44,800,000 | ||
Unpaid principal balance of SBA loans serviced for others | 10,700,000 | 13,000,000 | ||
Recognized gains from the sale of SBA loans | 0 | 0 | ||
Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 1,197,472,000 | 1,183,183,000 | ||
Net deferred loan fees | -1,221,000 | -1,445,000 | ||
Allowance for loan and lease losses | -16,878,000 | -16,802,000 | ||
Net loans held for investment | 1,179,373,000 | 1,164,936,000 | ||
Loans held for sale | 9,493,000 | 2,586,000 | ||
PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 9,847,000 | 10,300,000 | ||
Allowance for loan and lease losses | -35,000 | |||
Net loans held for investment | 9,812,000 | 10,300,000 | ||
Federal Reserve Bank | ||||
Outstanding loan balances | ||||
Loans pledged as collateral | 604,600,000 | |||
FHLB secured credit facility | 402,200,000 | |||
FHLB secured borrowings | 93,500,000 | |||
FHLB secured line of credit | 11,500,000 | |||
Reserve maintained for the exercise of repurchase option by buyer | 6,700,000 | |||
MISN | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 226,900,000 | 239,700,000 | ||
MISN | PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 9,800,000 | 10,300,000 | ||
Minimum | ||||
Outstanding loan balances | ||||
Period for sale of loans categorized as held for sale | 30 days | |||
Maximum | ||||
Outstanding loan balances | ||||
Period for sale of loans categorized as held for sale | 60 days | |||
Land | ||||
Outstanding loan balances | ||||
Allowance for loan and lease losses | -1,648,000 | -3,155,000 | -1,655,000 | -3,402,000 |
Real Estate Secured | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 989,037,000 | 975,603,000 | ||
Real Estate Secured | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 981,884,000 | 968,110,000 | ||
Real Estate Secured | PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 7,153,000 | 7,493,000 | ||
Real Estate Secured | Multi-family residential | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 77,684,000 | 78,645,000 | ||
Real Estate Secured | Multi-family residential | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 77,684,000 | 78,645,000 | ||
Real Estate Secured | Residential 1 to 4 family | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 143,490,000 | 127,201,000 | ||
Real Estate Secured | Residential 1 to 4 family | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 142,928,000 | 126,640,000 | ||
Real Estate Secured | Residential 1 to 4 family | PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 562,000 | 561,000 | ||
Real Estate Secured | Home equity lines of credit | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 35,928,000 | 38,252,000 | ||
Real Estate Secured | Home equity lines of credit | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 35,928,000 | 38,252,000 | ||
Real Estate Secured | Commercial. | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 575,536,000 | 588,472,000 | ||
Real Estate Secured | Commercial. | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 569,783,000 | 584,056,000 | ||
Real Estate Secured | Commercial. | PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 5,753,000 | 4,416,000 | ||
Real Estate Secured | Farmland | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 108,779,000 | 98,373,000 | ||
Real Estate Secured | Farmland | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 108,779,000 | 96,708,000 | ||
Real Estate Secured | Farmland | PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 1,665,000 | |||
Real Estate Secured | Land | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 20,619,000 | 20,167,000 | ||
Real Estate Secured | Land | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 19,781,000 | 19,316,000 | ||
Real Estate Secured | Land | PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 838,000 | 851,000 | ||
Real Estate Secured | Construction | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 27,001,000 | 24,493,000 | ||
Real Estate Secured | Construction | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 27,001,000 | 24,493,000 | ||
Commercial | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 211,067,000 | 209,902,000 | ||
Allowance for loan and lease losses | -4,495,000 | -4,898,000 | -5,125,000 | -4,781,000 |
Commercial | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 208,373,000 | 207,095,000 | ||
Commercial | PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 2,694,000 | 2,807,000 | ||
Commercial | Commercial and industrial | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 146,912,000 | 154,787,000 | ||
Commercial | Commercial and industrial | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 145,646,000 | 153,403,000 | ||
Commercial | Commercial and industrial | PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 1,266,000 | 1,384,000 | ||
Commercial | Agriculture | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 64,150,000 | 55,101,000 | ||
Commercial | Agriculture | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 62,722,000 | 53,678,000 | ||
Commercial | Agriculture | PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 1,428,000 | 1,423,000 | ||
Commercial | Other | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 5,000 | 14,000 | ||
Commercial | Other | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 5,000 | 14,000 | ||
Installment | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 7,008,000 | 7,723,000 | ||
Allowance for loan and lease losses | -163,000 | -87,000 | -172,000 | -99,000 |
Installment | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 7,008,000 | 7,723,000 | ||
Overdrafts | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 207,000 | 255,000 | ||
Overdrafts | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | $207,000 | $255,000 |
Loans_and_Allowance_for_Loan_a3
Loans and Allowance for Loan and Lease Losses (Details 2) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | $12,016 | $9,978 | |
Recorded investment with related allowance | 6,868 | 6,417 | |
Unpaid principal balance without related allowance | 14,816 | 14,543 | |
Unpaid principal balance with related allowance | 10,722 | 10,241 | |
Specific Allowance for Impaired Loans | 1,646 | 1,771 | |
Average recorded investment without related allowance | 10,724 | 5,824 | |
Average recorded investment with related allowance | 6,916 | 9,974 | |
Interest income recognized without related allowance | 83 | 46 | |
Interest income recognized with related allowance | 28 | 58 | |
Recorded Investment | 18,884 | 16,395 | |
Unpaid Principal Balance | 25,538 | 24,784 | |
Average Recorded Investment | 17,640 | 15,798 | |
Interest Income Recognized | 111 | 104 | |
PCI loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 7,796 | 10,341 | |
Recorded investment with related allowance | 2,093 | ||
Unpaid principal balance without related allowance | 10,114 | 13,390 | |
Unpaid principal balance with related allowance | 2,291 | ||
Specific Allowance for Impaired Loans | 35 | ||
Average recorded investment without related allowance | 8,010 | 6,372 | |
Average recorded investment with related allowance | 2,107 | ||
Interest income recognized without related allowance | 637 | 117 | |
Interest income recognized with related allowance | 41 | ||
Recorded Investment | 9,889 | ||
Unpaid Principal Balance | 12,405 | ||
Average Recorded Investment | 10,117 | ||
Interest Income Recognized | 678 | ||
Residential 1 to 4 family | |||
Foreclosures | |||
Number of foreclosures | 0 | 0 | |
Foreclosed assets | 0 | 0 | |
Real Estate Secured | Residential 1 to 4 family | Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 653 | 260 | |
Unpaid principal balance without related allowance | 779 | 383 | |
Average recorded investment without related allowance | 457 | 770 | |
Interest income recognized without related allowance | 7 | ||
Real Estate Secured | Residential 1 to 4 family | PCI loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 451 | 564 | |
Recorded investment with related allowance | 115 | ||
Unpaid principal balance without related allowance | 686 | 886 | |
Unpaid principal balance with related allowance | 197 | ||
Specific Allowance for Impaired Loans | 3 | ||
Average recorded investment without related allowance | 451 | 313 | |
Average recorded investment with related allowance | 114 | ||
Interest income recognized without related allowance | 12 | 1 | |
Interest income recognized with related allowance | 3 | ||
Real Estate Secured | Home equity lines of credit | Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 46 | 258 | |
Unpaid principal balance without related allowance | 128 | 340 | |
Average recorded investment without related allowance | 152 | ||
Real Estate Secured | Home equity lines of credit | PCI loans | |||
Investment in impaired loans | |||
Average recorded investment without related allowance | 41 | ||
Real Estate Secured | Commercial. | Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 4,138 | 4,000 | |
Recorded investment with related allowance | 484 | 498 | |
Unpaid principal balance without related allowance | 5,605 | 6,255 | |
Unpaid principal balance with related allowance | 684 | 688 | |
Specific Allowance for Impaired Loans | 100 | 148 | |
Average recorded investment without related allowance | 4,069 | 820 | |
Average recorded investment with related allowance | 491 | ||
Interest income recognized without related allowance | 36 | 6 | |
Real Estate Secured | Commercial. | PCI loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 4,749 | 4,432 | |
Recorded investment with related allowance | 1,027 | ||
Unpaid principal balance without related allowance | 6,265 | 6,109 | |
Unpaid principal balance with related allowance | 1,071 | ||
Specific Allowance for Impaired Loans | 11 | ||
Average recorded investment without related allowance | 4,916 | 2,749 | |
Average recorded investment with related allowance | 1,025 | ||
Interest income recognized without related allowance | 547 | 69 | |
Interest income recognized with related allowance | 22 | ||
Real Estate Secured | Farmland | Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 279 | 283 | |
Unpaid principal balance without related allowance | 278 | 282 | |
Average recorded investment without related allowance | 281 | ||
Interest income recognized without related allowance | 3 | ||
Real Estate Secured | Farmland | PCI loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 1,673 | ||
Unpaid principal balance without related allowance | 2,027 | ||
Average recorded investment without related allowance | 864 | ||
Interest income recognized without related allowance | 1 | ||
Real Estate Secured | Land | Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 1,344 | 1,470 | |
Recorded investment with related allowance | 4,811 | 4,876 | |
Unpaid principal balance without related allowance | 2,042 | 2,355 | |
Unpaid principal balance with related allowance | 8,487 | 8,499 | |
Specific Allowance for Impaired Loans | 1,415 | 1,472 | |
Average recorded investment without related allowance | 1,407 | 1,285 | |
Average recorded investment with related allowance | 4,844 | 6,657 | |
Interest income recognized without related allowance | 20 | 16 | |
Interest income recognized with related allowance | 3 | 21 | |
Real Estate Secured | Land | PCI loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 556 | 853 | |
Recorded investment with related allowance | 285 | ||
Unpaid principal balance without related allowance | 683 | 993 | |
Unpaid principal balance with related allowance | 289 | ||
Specific Allowance for Impaired Loans | 8 | ||
Average recorded investment without related allowance | 558 | 493 | |
Average recorded investment with related allowance | 290 | ||
Interest income recognized without related allowance | 18 | ||
Interest income recognized with related allowance | 5 | ||
Commercial | Commercial and industrial | Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 3,835 | 2,875 | |
Recorded investment with related allowance | 1,573 | 1,043 | |
Unpaid principal balance without related allowance | 4,161 | 3,967 | |
Unpaid principal balance with related allowance | 1,551 | 1,054 | |
Specific Allowance for Impaired Loans | 131 | 151 | |
Average recorded investment without related allowance | 3,082 | 1,936 | |
Average recorded investment with related allowance | 1,581 | 3,317 | |
Interest income recognized without related allowance | 10 | 10 | |
Interest income recognized with related allowance | 25 | 37 | |
Commercial | Commercial and industrial | PCI loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 604 | 1,388 | |
Recorded investment with related allowance | 666 | ||
Unpaid principal balance without related allowance | 988 | 1,883 | |
Unpaid principal balance with related allowance | 734 | ||
Specific Allowance for Impaired Loans | 13 | ||
Average recorded investment without related allowance | 652 | 1,274 | |
Average recorded investment with related allowance | 678 | ||
Interest income recognized without related allowance | 31 | 46 | |
Interest income recognized with related allowance | 11 | ||
Commercial | Agriculture | Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 1,558 | 720 | |
Unpaid principal balance without related allowance | 1,596 | 760 | |
Average recorded investment without related allowance | 1,139 | 908 | |
Interest income recognized without related allowance | 13 | 6 | |
Commercial | Agriculture | PCI loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 1,436 | 1,431 | |
Unpaid principal balance without related allowance | 1,492 | 1,492 | |
Average recorded investment without related allowance | 1,433 | 638 | |
Interest income recognized without related allowance | 29 | ||
Installment | Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 163 | 112 | |
Unpaid principal balance without related allowance | 227 | 201 | |
Average recorded investment without related allowance | 137 | 106 | |
Interest income recognized without related allowance | $1 | $1 |
Loans_and_Allowance_for_Loan_a4
Loans and Allowance for Loan and Lease Losses (Details 3) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
loan | loan | ||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | $7,415 | $6,511 | |
Non-Accruing | 7,469 | 7,057 | |
Loans classified as TDRs | 14,884 | 13,568 | |
Number of TDRs | 11 | 8 | |
Pre-Modification Outstanding Recorded Investment | 2,240 | 1,981 | |
Post-Modification Outstanding Recorded Investment | 2,240 | 1,981 | |
Minimum | |||
Troubled debt restructurings | |||
Period of maturity date extensions granted | 6 years | ||
Maximum | |||
Troubled debt restructurings | |||
Period of maturity date extensions granted | 10 years | ||
Non-PCI Loans | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 7,379 | 6,251 | |
Non-Accruing | 7,371 | 6,950 | |
Loans classified as TDRs | 14,750 | 13,201 | |
Troubled Debt Restructurings That Subsequently Defaulted | |||
Number of TDRs | 1 | ||
Recorded Investment | 18 | ||
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 130 | ||
Non-Accruing | 653 | 130 | |
Loans classified as TDRs | 653 | 260 | |
Number of TDRs | 2 | ||
Pre-Modification Outstanding Recorded Investment | 534 | ||
Post-Modification Outstanding Recorded Investment | 534 | ||
Non-PCI Loans | Real Estate Secured | Commercial. | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 2,605 | 2,449 | |
Non-Accruing | 241 | 78 | |
Loans classified as TDRs | 2,846 | 2,527 | |
Number of TDRs | 3 | 1 | |
Pre-Modification Outstanding Recorded Investment | 564 | 166 | |
Post-Modification Outstanding Recorded Investment | 564 | 166 | |
Non-PCI Loans | Real Estate Secured | Farmland | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 279 | 283 | |
Loans classified as TDRs | 279 | 283 | |
Non-PCI Loans | Real Estate Secured | Land | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 1,218 | 1,109 | |
Non-Accruing | 4,932 | 5,149 | |
Loans classified as TDRs | 6,150 | 6,258 | |
Number of TDRs | 1 | ||
Pre-Modification Outstanding Recorded Investment | 160 | ||
Post-Modification Outstanding Recorded Investment | 160 | ||
Non-PCI Loans | Commercial | Commercial and industrial | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 2,226 | 2,177 | |
Non-Accruing | 1,545 | 1,593 | |
Loans classified as TDRs | 3,771 | 3,770 | |
Number of TDRs | 4 | 4 | |
Pre-Modification Outstanding Recorded Investment | 187 | 920 | |
Post-Modification Outstanding Recorded Investment | 187 | 920 | |
Troubled Debt Restructurings That Subsequently Defaulted | |||
Number of TDRs | 1 | ||
Recorded Investment | 18 | ||
Non-PCI Loans | Commercial | Agriculture | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 931 | 34 | |
Loans classified as TDRs | 931 | 34 | |
Number of TDRs | 1 | 1 | |
Pre-Modification Outstanding Recorded Investment | 898 | 662 | |
Post-Modification Outstanding Recorded Investment | 898 | 662 | |
Non-PCI Loans | Installment | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 120 | 69 | |
Loans classified as TDRs | 120 | 69 | |
Number of TDRs | 1 | 1 | |
Pre-Modification Outstanding Recorded Investment | 57 | 73 | |
Post-Modification Outstanding Recorded Investment | 57 | 73 | |
PCI loans | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 36 | 260 | |
Non-Accruing | 98 | 107 | |
Loans classified as TDRs | 134 | 367 | |
Troubled Debt Restructurings That Subsequently Defaulted | |||
Number of TDRs | 0 | ||
PCI loans | Real Estate Secured | Commercial. | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 223 | ||
Loans classified as TDRs | 223 | ||
PCI loans | Commercial | Commercial and industrial | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 36 | 37 | |
Non-Accruing | 98 | 107 | |
Loans classified as TDRs | $134 | $144 |
Loans_and_Allowance_for_Loan_a5
Loans and Allowance for Loan and Lease Losses (Details 4) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | $1,207,319 | $1,193,483 |
Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,143,543 | 1,130,984 |
Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 12,637 | 9,874 |
Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 50,997 | 52,395 |
Credit Risk Grades, Doubtful | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 142 | 230 |
Real Estate Secured | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 989,037 | 975,603 |
Real Estate Secured | Multi-family residential | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 77,684 | 78,645 |
Real Estate Secured | Residential 1 to 4 family | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 143,490 | 127,201 |
Real Estate Secured | Home equity lines of credit | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 35,928 | 38,252 |
Real Estate Secured | Commercial. | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 575,536 | 588,472 |
Real Estate Secured | Farmland | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 108,779 | 98,373 |
Real Estate Secured | Land | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 20,619 | 20,167 |
Real Estate Secured | Construction | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 27,001 | 24,493 |
Commercial | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 211,067 | 209,902 |
Commercial | Commercial and industrial | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 146,912 | 154,787 |
Commercial | Agriculture | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 64,150 | 55,101 |
Commercial | Other | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 5 | 14 |
Installment | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 7,008 | 7,723 |
Overdrafts | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 207 | 255 |
Non-PCI Loans | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,197,472 | 1,183,183 |
Non-PCI Loans | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,143,223 | 1,130,528 |
Non-PCI Loans | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 11,420 | 9,097 |
Non-PCI Loans | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 42,687 | 43,404 |
Non-PCI Loans | Credit Risk Grades, Doubtful | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 142 | 154 |
Non-PCI Loans | Real Estate Secured | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 981,884 | 968,110 |
Non-PCI Loans | Real Estate Secured | Multi-family residential | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 77,684 | 78,645 |
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 | 77,069 | 78,023 |
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 | 615 | 622 |
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 142,928 | 126,640 |
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 | 141,633 | 125,733 |
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 | 198 | 199 |
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 | 1,097 | 708 |
Non-PCI Loans | Real Estate Secured | Home equity lines of credit | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 35,928 | 38,252 |
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 | 35,228 | 37,638 |
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 | 700 | 614 |
Non-PCI Loans | Real Estate Secured | Commercial. | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 569,783 | 584,056 |
Non-PCI Loans | Real Estate Secured | Commercial. | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 543,163 | 560,478 |
Non-PCI Loans | Real Estate Secured | Commercial. | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 2,819 | 3,010 |
Non-PCI Loans | Real Estate Secured | Commercial. | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 23,801 | 20,568 |
Non-PCI Loans | Real Estate Secured | Farmland | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 108,779 | 96,708 |
Non-PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 107,234 | 92,481 |
Non-PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 2,665 | |
Non-PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,545 | 1,562 |
Non-PCI Loans | Real Estate Secured | Land | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 19,781 | 19,316 |
Non-PCI Loans | Real Estate Secured | Land | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 13,493 | 12,929 |
Non-PCI Loans | Real Estate Secured | Land | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 9 | |
Non-PCI Loans | Real Estate Secured | Land | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 6,279 | 6,387 |
Non-PCI Loans | Real Estate Secured | Construction | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 27,001 | 24,493 |
Non-PCI Loans | Real Estate Secured | Construction | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 27,001 | 24,493 |
Non-PCI Loans | Commercial | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 208,373 | 207,095 |
Non-PCI Loans | Commercial | Commercial and industrial | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 145,646 | 153,403 |
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 130,546 | 138,202 |
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 8,239 | 2,943 |
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 6,719 | 12,104 |
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Doubtful | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 142 | 154 |
Non-PCI Loans | Commercial | Agriculture | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 62,722 | 53,678 |
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 60,740 | 52,678 |
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 150 | 280 |
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,832 | 720 |
Non-PCI Loans | Commercial | Other | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 5 | 14 |
Non-PCI Loans | Commercial | Other | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 5 | |
Non-PCI Loans | Commercial | Other | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 14 | |
Non-PCI Loans | Installment | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 7,008 | 7,723 |
Non-PCI Loans | Installment | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 6,909 | 7,618 |
Non-PCI Loans | Installment | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 99 | 105 |
Non-PCI Loans | Overdrafts | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 207 | 255 |
Non-PCI Loans | Overdrafts | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 207 | 255 |
PCI loans | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 9,847 | 10,300 |
PCI loans | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 320 | 456 |
PCI loans | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,217 | 777 |
PCI loans | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 8,310 | 8,991 |
PCI loans | Credit Risk Grades, Doubtful | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 76 | |
PCI loans | Real Estate Secured | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 7,153 | 7,493 |
PCI loans | Real Estate Secured | Residential 1 to 4 family | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 562 | 561 |
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 | 448 | |
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 | 114 | 561 |
PCI loans | Real Estate Secured | Commercial. | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 5,753 | 4,416 |
PCI loans | Real Estate Secured | Commercial. | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 126 | |
PCI loans | Real Estate Secured | Commercial. | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 678 | 680 |
PCI loans | Real Estate Secured | Commercial. | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 5,075 | 3,610 |
PCI loans | Real Estate Secured | Farmland | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,665 | |
PCI loans | Real Estate Secured | Farmland | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,665 | |
PCI loans | Real Estate Secured | Land | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 838 | 851 |
PCI loans | Real Estate Secured | Land | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 284 | 294 |
PCI loans | Real Estate Secured | Land | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 554 | 557 |
PCI loans | Commercial | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 2,694 | 2,807 |
PCI loans | Commercial | Commercial and industrial | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,266 | 1,384 |
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 36 | 36 |
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 91 | 97 |
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,139 | 1,175 |
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Doubtful | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 76 | |
PCI loans | Commercial | Agriculture | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,428 | 1,423 |
PCI loans | Commercial | Agriculture | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | $1,428 | $1,423 |
Loans_and_Allowance_for_Loan_a6
Loans and Allowance for Loan and Lease Losses (Details 5) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Aging of loans held for investment | ||
Current | $1,194,288 | $1,182,868 |
30-59 | 286 | 56 |
60-89 | 898 | 24 |
Non-Accruing | 11,847 | 10,535 |
Total | 1,207,319 | 1,193,483 |
Accretable yield, or income expected to be collected | ||
Balance at the beginning of the period | 4,374 | |
Accretion of income | -678 | |
Reclassifications from nonaccretable difference | 547 | |
Balance at the end of the period | 4,243 | |
Non-PCI Loans | ||
Aging of loans held for investment | ||
Current | 1,184,766 | 1,172,944 |
30-59 | 286 | 56 |
60-89 | 898 | 24 |
Non-Accruing | 11,522 | 10,159 |
Total | 1,197,472 | 1,183,183 |
Contractually required payments receivable of loans purchased during the period | ||
Allowance for loan losses | 700 | 1,000 |
Non-PCI Loans | Real Estate Secured | Multi-family residential | ||
Aging of loans held for investment | ||
Current | 77,684 | 78,645 |
Total | 77,684 | 78,645 |
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family | ||
Aging of loans held for investment | ||
Current | 142,283 | 126,516 |
Non-Accruing | 645 | 124 |
Total | 142,928 | 126,640 |
Non-PCI Loans | Real Estate Secured | Home equity lines of credit | ||
Aging of loans held for investment | ||
Current | 35,882 | 37,994 |
Non-Accruing | 46 | 258 |
Total | 35,928 | 38,252 |
Non-PCI Loans | Real Estate Secured | Commercial. | ||
Aging of loans held for investment | ||
Current | 567,731 | 581,971 |
Non-Accruing | 2,052 | 2,085 |
Total | 569,783 | 584,056 |
Non-PCI Loans | Real Estate Secured | Farmland | ||
Aging of loans held for investment | ||
Current | 108,779 | 96,708 |
Total | 108,779 | 96,708 |
Non-PCI Loans | Real Estate Secured | Land | ||
Aging of loans held for investment | ||
Current | 14,744 | 14,079 |
30-59 | 98 | |
Non-Accruing | 4,939 | 5,237 |
Total | 19,781 | 19,316 |
Non-PCI Loans | Real Estate Secured | Construction | ||
Aging of loans held for investment | ||
Current | 27,001 | 24,493 |
Total | 27,001 | 24,493 |
Non-PCI Loans | Commercial | Commercial and industrial | ||
Aging of loans held for investment | ||
Current | 142,386 | 151,656 |
30-59 | 90 | |
60-89 | 21 | |
Non-Accruing | 3,170 | 1,726 |
Total | 145,646 | 153,403 |
Non-PCI Loans | Commercial | Agriculture | ||
Aging of loans held for investment | ||
Current | 61,197 | 52,992 |
60-89 | 898 | |
Non-Accruing | 627 | 686 |
Total | 62,722 | 53,678 |
Non-PCI Loans | Commercial | Other | ||
Aging of loans held for investment | ||
Current | 5 | 14 |
Total | 5 | 14 |
Non-PCI Loans | Installment | ||
Aging of loans held for investment | ||
Current | 6,867 | 7,621 |
30-59 | 98 | 56 |
60-89 | 3 | |
Non-Accruing | 43 | 43 |
Total | 7,008 | 7,723 |
Non-PCI Loans | Overdrafts | ||
Aging of loans held for investment | ||
Current | 207 | 255 |
Total | 207 | 255 |
PCI loans | ||
Aging of loans held for investment | ||
Current | 9,522 | 9,924 |
Non-Accruing | 325 | 376 |
Total | 9,847 | 10,300 |
Unpaid Principal Balance | 12,427 | 13,390 |
Carrying Amount | 9,847 | 10,300 |
Contractually required payments receivable of loans purchased during the period | ||
Allowance for loan losses | 35 | 0 |
PCI loans | Real Estate Secured | ||
Aging of loans held for investment | ||
Unpaid Principal Balance | 9,191 | 10,015 |
Carrying Amount | 7,153 | 7,493 |
PCI loans | Real Estate Secured | Residential 1 to 4 family | ||
Aging of loans held for investment | ||
Current | 562 | 561 |
Total | 562 | 561 |
Unpaid Principal Balance | 883 | 886 |
Carrying Amount | 562 | 561 |
PCI loans | Real Estate Secured | Commercial. | ||
Aging of loans held for investment | ||
Current | 5,753 | 4,416 |
Total | 5,753 | 4,416 |
Unpaid Principal Balance | 7,336 | 6,109 |
Carrying Amount | 5,753 | 4,416 |
PCI loans | Real Estate Secured | Farmland | ||
Aging of loans held for investment | ||
Current | 1,665 | |
Total | 1,665 | |
Unpaid Principal Balance | 2,027 | |
Carrying Amount | 1,665 | |
PCI loans | Real Estate Secured | Land | ||
Aging of loans held for investment | ||
Current | 838 | 851 |
Total | 838 | 851 |
Unpaid Principal Balance | 972 | 993 |
Carrying Amount | 838 | 851 |
PCI loans | Commercial | ||
Aging of loans held for investment | ||
Unpaid Principal Balance | 3,236 | 3,375 |
Carrying Amount | 2,694 | 2,807 |
PCI loans | Commercial | Commercial and industrial | ||
Aging of loans held for investment | ||
Current | 941 | 1,008 |
Non-Accruing | 325 | 376 |
Total | 1,266 | 1,384 |
Unpaid Principal Balance | 1,744 | 1,883 |
Carrying Amount | 1,266 | 1,384 |
PCI loans | Commercial | Agriculture | ||
Aging of loans held for investment | ||
Current | 1,428 | 1,423 |
Total | 1,428 | 1,423 |
Unpaid Principal Balance | 1,492 | 1,492 |
Carrying Amount | $1,428 | $1,423 |
Loans_and_Allowance_for_Loan_a7
Loans and Allowance for Loan and Lease Losses (Details 6) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Feb. 28, 2014 |
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | $16,802 | $17,859 | $17,859 | |
Charge-offs | -73 | -94 | ||
Recoveries | 184 | 203 | ||
Balance, at the end of the period | 16,913 | 17,968 | ||
Amount of allowance attributed to: | ||||
Allowance for loan and lease losses individually evaluated for impairment | 1,646 | 1,771 | ||
Allowance for loan and lease losses collectively evaluated for impairment | 15,232 | 15,031 | ||
Allowance for Loans acquired with deteriorated credit quality | 35 | |||
Recorded investment in loan individually evaluated for impairment | 18,884 | 16,390 | ||
Recorded investment in loan collectively evaluated for impairment | 1,178,546 | 1,166,752 | ||
Recorded investment in loans acquired with deteriorated credit quality | 9,889 | 10,341 | ||
Total gross loans held for investment | 1,207,319 | 1,193,483 | ||
Non-PCI Loans | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | 16,802 | |||
Balance, at the end of the period | 16,878 | 16,802 | ||
Amount of allowance attributed to: | ||||
Total gross loans held for investment | 1,197,472 | 1,183,183 | ||
Allowance for loan and lease losses | 700 | 1,000 | ||
PCI loans | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the end of the period | 35 | |||
Amount of allowance attributed to: | ||||
Total gross loans held for investment | 9,847 | 10,300 | ||
Allowance for loan and lease losses | 35 | 0 | ||
MISN | ||||
Amount of allowance attributed to: | ||||
Allowance for loan and lease losses | 0 | |||
MISN | Non-PCI Loans | ||||
Amount of allowance attributed to: | ||||
Total gross loans held for investment | 226,900 | 239,700 | ||
MISN | PCI loans | ||||
Amount of allowance attributed to: | ||||
Total gross loans held for investment | 9,800 | 10,300 | ||
Commercial | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | 5,125 | 4,781 | 4,781 | |
Recoveries | 167 | 175 | ||
Provision for loan and lease losses | -797 | -58 | ||
Balance, at the end of the period | 4,495 | 4,898 | ||
Amount of allowance attributed to: | ||||
Allowance for loan and lease losses individually evaluated for impairment | 131 | 151 | ||
Allowance for loan and lease losses collectively evaluated for impairment | 4,351 | 4,974 | ||
Allowance for Loans acquired with deteriorated credit quality | 13 | |||
Recorded investment in loan individually evaluated for impairment | 6,966 | 4,633 | ||
Recorded investment in loan collectively evaluated for impairment | 201,395 | 202,450 | ||
Recorded investment in loans acquired with deteriorated credit quality | 2,706 | 2,819 | ||
Total gross loans held for investment | 211,067 | 209,902 | ||
Commercial | Non-PCI Loans | ||||
Amount of allowance attributed to: | ||||
Total gross loans held for investment | 208,373 | 207,095 | ||
Commercial | PCI loans | ||||
Amount of allowance attributed to: | ||||
Total gross loans held for investment | 2,694 | 2,807 | ||
Installment | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | 172 | 99 | 99 | |
Charge-offs | -2 | |||
Recoveries | 3 | 5 | ||
Provision for loan and lease losses | -12 | -15 | ||
Balance, at the end of the period | 163 | 87 | ||
Amount of allowance attributed to: | ||||
Allowance for loan and lease losses collectively evaluated for impairment | 163 | 172 | ||
Recorded investment in loan individually evaluated for impairment | 163 | 112 | ||
Recorded investment in loan collectively evaluated for impairment | 6,845 | 7,611 | ||
Total gross loans held for investment | 7,008 | 7,723 | ||
Installment | Non-PCI Loans | ||||
Amount of allowance attributed to: | ||||
Total gross loans held for investment | 7,008 | 7,723 | ||
All other loans | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | 30 | 32 | 32 | |
Provision for loan and lease losses | -3 | -6 | ||
Balance, at the end of the period | 27 | 26 | ||
Amount of allowance attributed to: | ||||
Allowance for loan and lease losses collectively evaluated for impairment | 27 | 30 | ||
Recorded investment in loan collectively evaluated for impairment | 207 | 255 | ||
Unallocated | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | 346 | 262 | 262 | |
Provision for loan and lease losses | 464 | 143 | ||
Balance, at the end of the period | 810 | 405 | ||
Amount of allowance attributed to: | ||||
Allowance for loan and lease losses collectively evaluated for impairment | 810 | 346 | ||
Land | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | 1,655 | 3,402 | 3,402 | |
Charge-offs | -34 | |||
Recoveries | 11 | 7 | ||
Provision for loan and lease losses | 16 | -254 | ||
Balance, at the end of the period | 1,648 | 3,155 | ||
Amount of allowance attributed to: | ||||
Allowance for loan and lease losses individually evaluated for impairment | 1,415 | 1,472 | ||
Allowance for loan and lease losses collectively evaluated for impairment | 225 | 183 | ||
Allowance for Loans acquired with deteriorated credit quality | 8 | |||
Recorded investment in loan individually evaluated for impairment | 6,155 | 6,346 | ||
Recorded investment in loan collectively evaluated for impairment | 13,623 | 12,968 | ||
Recorded investment in loans acquired with deteriorated credit quality | 841 | 853 | ||
Other real estate secured | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | 9,474 | 9,283 | 9,283 | |
Charge-offs | -39 | -92 | ||
Recoveries | 3 | 16 | ||
Provision for loan and lease losses | 332 | 190 | ||
Balance, at the end of the period | 9,770 | 9,397 | ||
Amount of allowance attributed to: | ||||
Allowance for loan and lease losses individually evaluated for impairment | 100 | 148 | ||
Allowance for loan and lease losses collectively evaluated for impairment | 9,656 | 9,326 | ||
Allowance for Loans acquired with deteriorated credit quality | 14 | |||
Recorded investment in loan individually evaluated for impairment | 5,600 | 5,299 | ||
Recorded investment in loan collectively evaluated for impairment | 956,476 | 943,468 | ||
Recorded investment in loans acquired with deteriorated credit quality | $6,342 | $6,669 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Income Taxes | ||
Deferred tax valuation allowance | $0 | $0 |
Deferred tax assets | 22,508,000 | 24,920,000 |
Loss of NOL utilization | $0 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Goodwill and Other Intangible Assets | |||
Goodwill | $24,885 | $24,885 | |
Core deposit intangible | |||
Other Intangible Assets, Net | 5,085 | 5,347 | |
Amortization of intangible assets | 262 | 166 | |
Gross Carrying Amount | 9,261 | ||
Accumulated Amortization | -4,176 | ||
Net Carrying Amount | 5,085 | ||
Estimated Amortization | |||
Year 2015 | -1,049 | ||
Year 2016 | -944 | ||
Year 2017 | -588 | ||
Year 2018 | -549 | ||
Year 2019 | -522 | ||
Year 2020 | -441 | ||
Year 2015 | |||
Core deposit intangible | |||
Net Carrying Amount | 4,298 | 5,347 | |
Year 2016 | |||
Core deposit intangible | |||
Net Carrying Amount | 3,354 | 4,298 | |
Year 2017 | |||
Core deposit intangible | |||
Net Carrying Amount | 2,766 | 3,354 | |
Year 2018 | |||
Core deposit intangible | |||
Net Carrying Amount | 2,217 | 2,766 | |
Year 2019 | |||
Core deposit intangible | |||
Net Carrying Amount | 1,695 | 2,217 | |
Year 2020 | |||
Core deposit intangible | |||
Net Carrying Amount | $1,254 | $1,695 |
Sharebased_Compensation_Plans_1
Share-based Compensation Plans (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Share-based Compensation Plans | |||
Number of share-based employee compensation plans | 2 | ||
Summary of the expenses the Company has recognized related to share-based compensation | |||
Share-based compensation expense | $241 | $247 | |
Unrecognized compensation expense | 2,374 | 1,878 | |
Stock options | |||
Summary of the expenses the Company has recognized related to share-based compensation | |||
Share-based compensation expense | 112 | 164 | |
Unrecognized compensation expense | 1,310 | 1,013 | |
Weighted-average period over which expense is expected to be recognized | 2 years 10 months 24 days | ||
Assumptions used in the calculation of the weighted average fair value of options granted | |||
Expected volatility (as a percent) | 38.17% | 54.00% | |
Expected term | 5 years | 6 years | |
Dividend yield (as a percent) | 2.55% | 0.00% | |
Risk free rate (as a percent) | 1.57% | 1.76% | |
Weighted-average grant date fair value (in dollars per share) | $2.17 | $3.99 | |
Number of shares | |||
Options Available for Grant (in shares) | 2,003,176 | ||
Options outstanding, at the beginning of the period (in shares) | 742,557 | ||
Granted (in shares) | 215,429 | ||
Forfeited (in shares) | -21,557 | ||
Exercised (in shares) | -17,353 | ||
Options outstanding, at the end of the period (in shares) | 919,076 | ||
Weighted Average Exercise Price | |||
Options outstanding, at the beginning of the period (in dollars per share) | $6.83 | ||
Granted (in dollars per share) | $7.84 | ||
Forfeited (in dollars per share) | $6.60 | ||
Exercised (in dollars per share) | $4.33 | ||
Options outstanding, at the end of the period (in dollars per share) | $7.12 | ||
Options vested or expected to vest | |||
Shares | 866,402 | ||
Weighted Average Exercise Price (in dollars per share) | $7.10 | ||
Weighted Average Remaining Contractual Life | 7 years 11 months 23 days | ||
Aggregate Intrinsic Value | 1,386,892 | ||
Options exercisable | |||
Shares | 319,255 | ||
Weighted Average Exercise Price (in dollars per share) | $6.96 | ||
Weighted Average Remaining Contractual Life | 5 years 11 months 23 days | ||
Aggregate Intrinsic Value | 773,197 | ||
Aggregate intrinsic value of options exercised | |||
Aggregate intrinsic value of options exercised | 66 | ||
Stock options | Minimum | |||
Summary of the expenses the Company has recognized related to share-based compensation | |||
Vesting period | 3 years | ||
Stock options | Maximum | |||
Summary of the expenses the Company has recognized related to share-based compensation | |||
Vesting period | 5 years | ||
Restricted stock | |||
Summary of the expenses the Company has recognized related to share-based compensation | |||
Share-based compensation expense | 129 | 83 | |
Unrecognized compensation expense | $1,064 | $865 | |
Weighted-average period over which expense is expected to be recognized | 2 years 6 months | ||
Number of Shares | |||
Balance at the beginning of the period (in shares) | 204,121 | ||
Granted (in shares) | 32,652 | ||
Vested (in shares) | -26,855 | ||
Forfeited (in shares) | -4,547 | ||
Balance at the end of the period (in shares) | 205,371 | ||
Average Grant Date fair Value | |||
Balance at the beginning of the period (in dollars per share) | $6.65 | ||
Granted (in dollars per share) | $7.84 | ||
Vested (in dollars per share) | $6.36 | ||
Forfeited (in dollars per share) | $6.66 | ||
Balance at the end of the period (in dollars per share) | $6.88 | ||
Performance based grant (in shares) | 23,408 | ||
Restricted stock | Minimum | |||
Summary of the expenses the Company has recognized related to share-based compensation | |||
Vesting period | 3 years | ||
Restricted stock | Maximum | |||
Summary of the expenses the Company has recognized related to share-based compensation | |||
Vesting period | 5 years |
Shareholders_Equity_Details
Shareholders' Equity (Details) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Shareholders' Equity | |||
Capital conservation buffer (as a percent) | 2.50% | ||
Capital conservation buffer for 2016 (as a percent) | 0.63% | ||
Capital conservation buffer for 2017 (as a percent) | 1.25% | ||
Capital conservation buffer for 2018 (as a percent) | 1.88% | ||
Capital conservation buffer for 2019 (as a percent) | 2.50% | ||
Common equity Tier I Capital | |||
Regulatory Standard, Common equity Tier I Capital Well Capitalized Ratio (as a percent) | 6.50% | ||
Leverage ratio | |||
Regulatory Standard, Leverage ratio Well Capitalized Ratio (as a percent) | 5.00% | 5.00% | |
Tier I capital to risk weighted assets | |||
Regulatory Standard, Well Capitalized Ratio (as a percent) | 8.00% | 6.00% | |
Total risk based capital to risk weighted assets | |||
Regulatory Standard, Total risk based capital Well Capitalized Ratio (as a percent) | 10.00% | 10.00% | |
Minimum | |||
Shareholders' Equity | |||
CET I to risk-weighted assets | 4.50% | ||
Total risk based capital to risk weighted assets | |||
Regulatory Standard, Total risk based capital Well Capitalized Ratio (as a percent) | 6.50% | ||
Weighted Average Category One | |||
Shareholders' Equity | |||
Ratio risk-weighted assets (as a percent) | 0.00% | ||
Weighted Average Category Two | |||
Shareholders' Equity | |||
Ratio risk-weighted assets (as a percent) | 20.00% | ||
Weighted Average Category Three | |||
Shareholders' Equity | |||
Ratio risk-weighted assets (as a percent) | 50.00% | ||
Weighted Average Category Four | |||
Shareholders' Equity | |||
Ratio risk-weighted assets (as a percent) | 100.00% | ||
Heritage Oaks Bancorp | |||
Common equity Tier I Capital | |||
Actual regulatory, Common equity Tier I Capital Ratio (as a percent | 12.50% | ||
Leverage ratio | |||
Actual regulatory, Leverage ratio (as a percent) | 10.38% | 10.22% | 11.64% |
Tier I capital to risk weighted assets | |||
Actual regulatory, Tier I capital (as a percent) | 13.12% | 13.13% | 12.25% |
Total risk based capital to risk weighted assets | |||
Actual regulatory, Total risk based capital (as a percent) | 14.36% | 14.38% | 13.50% |
Heritage Oaks Bank | |||
Common equity Tier I Capital | |||
Actual regulatory, Common equity Tier I Capital Ratio (as a percent | 12.65% | ||
Leverage ratio | |||
Actual regulatory, Leverage ratio (as a percent) | 10.01% | 9.83% | 11.25% |
Tier I capital to risk weighted assets | |||
Actual regulatory, Tier I capital (as a percent) | 12.65% | 12.63% | 11.84% |
Total risk based capital to risk weighted assets | |||
Actual regulatory, Total risk based capital (as a percent) | 13.90% | 13.88% | 13.10% |
Shareholders_Equity_Details_2
Shareholders' Equity (Details 2) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 9 Months Ended | ||
Mar. 02, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 12, 2010 | Sep. 30, 2014 | Dec. 31, 2014 | |
Preferred Stock | ||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||||
Preferred stock dividends paid | $0.05 | $0 | ||||
Repurchase of shares amount authorized | $5,000,000 | |||||
Shares repurchased | 0 | 51,732 | ||||
Average price per share stock repurchase | $7.47 | |||||
Series C preferred stock | ||||||
Preferred Stock | ||||||
Issuance of stock (in shares) | 348,697 | |||||
Conversion price (in dollars per share) | $3.25 | |||||
Stated dividend rate (as a percent) | 0.00% | |||||
Preferred Stock, Shares Outstanding | 348,697 | 348,697 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Calculation of both basic and diluted earnings (loss) per common share | ||
Net income (loss) | $4,069 | ($1,763) |
Weighted average shares outstanding | 34,107,168 | 27,816,911 |
Basic earnings (loss) per common share (in dollars per share) | $0.12 | ($0.06) |
Dilutive effect of share-based compensation awards (in shares) | 159,314 | |
Weighted average diluted shares outstanding | 34,266,482 | 27,816,911 |
Diluted earnings (loss) per common share (in dollars per share) | $0.12 | ($0.06) |
Stock options | ||
Shares excluded from the calculation of diluted earnings per share | ||
Shares excluded from the calculation of diluted earnings per share | 136,000 | 442,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (Heritage Oaks Bank, USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies | ||
Total commitments and standby letters of credit | $221,969,000 | $253,275,000 |
Outstanding financial fixed rate commitments | 23,900,000 | 35,700,000 |
Outstanding financial variable rate commitments | 198,100,000 | 217,500,000 |
Commitments to extend credit | ||
Commitments and Contingencies | ||
Total commitments and standby letters of credit | 206,977,000 | 237,733,000 |
Standby letters of credit | ||
Commitments and Contingencies | ||
Total commitments and standby letters of credit | $14,992,000 | $15,542,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 0 Months Ended |
Mar. 31, 2015 | Apr. 29, 2015 | |
Subsequent events | ||
Cash dividend declared (in dollars per share) | $0.05 | |
Convertible Preferred Stock, Shares Issued upon Conversion | 1 | |
Subsequent Event | ||
Subsequent events | ||
Cash dividend declared (in dollars per share) | $0.06 |