Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 02, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | HERITAGE OAKS BANCORP | |
Entity Central Index Key | 921,547 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 34,195,314 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 14,804 | $ 15,610 |
Interest earning deposits in other banks | 38,771 | 54,313 |
Total cash and cash equivalents | 53,575 | 69,923 |
Investment securities available for sale, at fair value | 441,705 | 450,935 |
Loans held for sale, at lower of cost or fair value | 6,560 | 9,755 |
Gross loans held for investment | 1,291,346 | 1,247,280 |
Deferred loan fees | (1,160) | (1,132) |
Allowance for loan and lease losses | (17,565) | (17,452) |
Net loans held for investment | 1,272,621 | 1,228,696 |
Premises and equipment, net | 36,843 | 37,342 |
Bank-owned life insurance | 33,069 | 32,850 |
Goodwill | 24,885 | 24,885 |
Deferred tax assets, net | 18,715 | 21,272 |
Federal Home Loan Bank stock | 7,853 | 7,853 |
Other intangible assets, net | 4,055 | 4,298 |
Other assets | 13,239 | 11,930 |
Total assets | 1,913,120 | 1,899,739 |
Liabilities | ||
Non-interest bearing deposits | 524,025 | 514,559 |
Interest bearing deposits | 1,058,564 | 1,050,402 |
Total deposits | 1,582,589 | 1,564,961 |
Short term FHLB borrowing | 29,500 | 38,500 |
Long term FHLB borrowing | 73,512 | 65,021 |
Junior subordinated debentures | 10,485 | 10,438 |
Other liabilities | 8,704 | 14,385 |
Total liabilities | 1,704,790 | 1,693,305 |
Shareholders' Equity | ||
Common stock, no par value; authorized: 100,000,000 shares; issued and outstanding: 34,129,425 shares and 34,353,014 shares as of March 31, 2016 and December 31, 2015, respectively. | 163,923 | 165,517 |
Additional paid in capital | 8,460 | 8,251 |
Retained earnings | 34,134 | 32,200 |
Accumulated other comprehensive income | 1,813 | 466 |
Total shareholders' equity | 208,330 | 206,434 |
Total liabilities and shareholders' equity | $ 1,913,120 | $ 1,899,739 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Common stock | ||
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 | 34,129,425 | 34,353,014 |
Common stock, shares outstanding | 34,129,425 | 34,353,014 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest Income | ||
Loans, including fees | $ 14,615 | $ 15,088 |
Investment securities | 2,200 | 1,667 |
Other interest-earning assets | 200 | 173 |
Total interest income | 17,015 | 16,928 |
Interest Expense | ||
Deposits | 879 | 889 |
Other borrowings | 518 | 541 |
Total interest expense | 1,397 | 1,430 |
Net interest income before provision for loan losses | 15,618 | 15,498 |
Net interest income after provision for loan and lease losses | 15,618 | 15,498 |
Non-Interest Income | ||
Fees and service charges | 1,287 | 1,207 |
Gain on sale of investment securities | 551 | 505 |
Gain on derivative instruments | 532 | |
Net gain on sale of mortgage loans | 458 | 386 |
Earnings on BOLI | 287 | 211 |
Other mortgage fee income | 91 | 138 |
Other income | 201 | 554 |
Total non-interest income | 3,407 | 3,001 |
Non-Interest Expense | ||
Salaries and employee benefits | 6,318 | 6,259 |
Professional services | 1,627 | 1,587 |
Occupancy and equipment | 1,886 | 1,406 |
Information technology | 600 | 601 |
Regulatory assessments | 310 | 297 |
Sales and marketing | 244 | 317 |
Amortization of intangible assets | 243 | 262 |
OREO Write-downs | 217 | |
Loan department expense | 213 | 286 |
Communication costs | 125 | 141 |
Other expense | 838 | 657 |
Total non-interest expense | 12,621 | 11,813 |
Income before income taxes | 6,404 | 6,686 |
Income tax expense | 2,419 | 2,617 |
Net income | $ 3,985 | $ 4,069 |
Earnings Per Common Share | ||
Basic (in dollars per share) | $ 0.12 | $ 0.12 |
Diluted (in dollars per share) | 0.12 | 0.12 |
Dividends Declared Per Common Share (in dollars per share) | $ 0.06 | $ 0.05 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Consolidated Statements of Comprehensive Income | ||
Net income | $ 3,985 | $ 4,069 |
Other comprehensive income, net of tax: | ||
Unrealized holding gains on securities arising during the period | 2,875 | 2,755 |
Reclassification for net gains on investments included in net income | (551) | (505) |
Other comprehensive income, before income tax expense | 2,324 | 2,250 |
Income tax expense related to items of other comprehensive income | 977 | 946 |
Other comprehensive income | 1,347 | 1,304 |
Comprehensive income | $ 5,332 | $ 5,373 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total |
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 | (1,713) | (1,713) | ||||
Exercise of stock options | $ 75 | 75 | ||||
Exercise of stock options (in shares) | 17,353 | |||||
Share-based compensation | 241 | 241 | ||||
Tax benefit of share-based compensation | 27 | 27 | ||||
Net issuance (forfeitures) of restricted share awards (in shares) | 28,105 | |||||
Net income | 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 | |||||
Balance at Dec. 31, 2015 | $ 165,517 | 8,251 | 32,200 | 466 | 206,434 | |
Balance (in shares) at Dec. 31, 2015 | 34,353,014 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Dividends declared | (2,051) | (2,051) | ||||
Repurchases of shares | $ (1,635) | (1,635) | ||||
Repurchases of shares (in shares) | (226,170) | |||||
Exercise of stock options | $ 41 | 41 | ||||
Exercise of stock options (in shares) | 6,830 | |||||
Share-based compensation | 207 | 207 | ||||
Tax benefit of share-based compensation | 2 | 2 | ||||
Net issuance (forfeitures) of restricted share awards (in shares) | (4,249) | |||||
Net income | 3,985 | 3,985 | ||||
Other comprehensive income | 1,347 | 1,347 | ||||
Balance at Mar. 31, 2016 | $ 163,923 | $ 8,460 | $ 34,134 | $ 1,813 | $ 208,330 | |
Balance (in shares) at Mar. 31, 2016 | 34,129,425 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Condensed Consolidated Statements of Shareholders' Equity | ||
Cash dividend declared (in dollars per share) | $ 0.06 | $ 0.05 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 3,985 | $ 4,069 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 544 | 479 |
Write-downs on premises and equipment held for sale | 138 | |
Amortization of premiums / discounts | 1,783 | 1,482 |
Amortization of intangible assets | 243 | 262 |
Accretion of discount on acquired and purchased loans, net | (223) | (907) |
Share-based compensation expense | 207 | 241 |
Gain on sale of available for sale securities | (551) | (505) |
Gain on sale of loans held for sale | (458) | (386) |
Originations of loans held for sale | (29,402) | (40,038) |
Proceeds from sale of loans held for sale | 33,055 | 33,517 |
Net increase in bank owned life insurance | (219) | (160) |
Decrease in deferred tax assets | 1,580 | 1,466 |
Write-downs on OREO | 217 | |
Tax impact of share-based compensation | (2) | (27) |
Decrease in other assets and other liabilities, net | (1,210) | 257 |
Net cash provided by (used in) operating activities | 9,549 | (112) |
Cash Flows from Investing Activities | ||
Purchase of securities, available for sale | (58,049) | (65,085) |
Sale of securities, available for sale | 57,279 | 46,528 |
Proceeds from principal paydowns of securities, available for sale | 11,127 | 10,954 |
Increase in loans, net | (49,820) | (13,659) |
Recoveries on previously charged-off loans | 123 | 184 |
Purchase of property, premises and equipment, net | (45) | (772) |
Net cash used in investing activities | (39,385) | (21,850) |
Cash Flows from Financing Activities | ||
Increase in deposits, net | 17,631 | 65,471 |
Proceeds from Federal Home Loan Bank borrowing | 70,000 | 36,000 |
Repayments of Federal Home Loan Bank borrowing | (70,500) | (38,000) |
Proceeds from exercise of stock options, including tax benefits | 43 | 102 |
Dividends paid | (2,051) | (1,713) |
Repurchases of common stock | (1,635) | |
Net cash provided by financing activities | 13,488 | 61,860 |
Net (decrease) increase in cash and cash equivalents | (16,348) | 39,898 |
Cash and cash equivalents, beginning of period | 69,923 | 35,580 |
Cash and cash equivalents, end of period | 53,575 | 75,478 |
Cash Flow Information | ||
Interest paid | 1,386 | 1,348 |
Income taxes paid | 1,300 | |
Non-Cash Flow Information | ||
Change in unrealized gain on available for sale securities | $ 2,875 | 2,755 |
Loans transferred to foreclosed assets | $ 433 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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 2015 Annual Report filed on Form 10-K with the Securities and Exchange Commission on March 4, 2016; 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. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. 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. 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 2015 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, 2016. Recent Accounting Standards Updates Recent Accounting Guidance Adopted In September, 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement Period Adjustments (Topic 805). This ASU eliminates the requirement to restate prior period financial statements for measurement period adjustments to assets acquired and liabilities assumed in a business combination. The new guidance under this update requires the cumulative impact of measurement period adjustments be recognized in the period the adjustment is determined. This update does not change what constitutes a measurement period adjustment, nor does it change the length of the measurement period. The new standard is effective for interim annual periods beginning after December 15, 2015 and should be applied prospectively to measurement period adjustments that occur after the effective date. This update did not have an impact on the Company’s condensed consolidated financial statements. Recent Accounting Guidance Not Yet Effective In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718). This update simplifies several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flow. The new guidance under the update requires all excess tax benefits and tax deficiencies be recognized as income tax expense or benefit on the income statement. The amendments within the update are effective for fiscal years and all interim periods beginning after December 31, 2016, with early adoption permitted. 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 financial statements. In February 2016-02, the FASB issued ASU 2016-02, Leases (Topic 842). This update improves the understanding and comparability of lessees’ financial commitments by requiring lease assets and lease liabilities to be recognized on the balance sheet for those leases classified as operating leases under current U.S. GAAP. This ASU requires a lessee to recognize on the balance sheet a lease liability to make lease payments and a right of use asset, representing the right to use the underlying asset, during the term of the lease. This update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, using a modified retrospective approach, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption of this update will have on its financial statements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825). The amendments in this update require that public entities measure equity investments with readily determinable fair values, at fair value, with changes in their fair value recorded through net income. This ASU also clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. The amendments within the update are effective for fiscal years and all interim periods beginning after December 15, 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 financial statements. 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, 2018. 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 financial statements. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value of Assets and Liabilities | |
Fair Value of Assets and Liabilities | Note 2. Fair Value of Assets and Liabilities Recurring Basis The following table provides a summary of the financial instruments the Company measures at fair value on a recurring basis as of March 31, 2016 and December 31, 2015: As of Fair Value Measurements Using March 31, Quoted Prices in Significant Other Significant 2016 Active Markets for Observable Unobservable Assets At Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) Assets Available for sale investments: Obligations of U.S. government agencies $ $ - $ $ - Mortgage backed securities U.S government sponsored entities and agencies - - Non-agency - - State and municipal securities - - Asset backed securities - - Other investments - - Derivative financial instruments: Interest rate swaps - Total assets measured on a recurring basis $ $ $ $ - Liabilities Derivative financial instruments: Interest rate swaps $ $ - $ $ - Total liabilities measured on a recurring basis $ $ - $ $ - As of Fair Value Measurements Using December 31, Quoted Prices in Significant Other Significant 2015 Active Markets for Observable Unobservable Assets At Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) Assets Available for sale investments: Obligations of U.S. government agencies $ $ - $ $ - Mortgage backed securities U.S government sponsored entities and agencies - - Non-agency - - State and municipal securities - - Asset backed securities - - Other investments - - Derivative financial instruments: Interest rate swaps - - - - Total assets measured on a recurring basis $ $ $ $ - Liabilities Derivative financial instruments: Interest rate swaps $ - $ - $ - $ - Total liabilities measured on a recurring basis $ - $ - $ - $ - There were no transfers between levels of fair value measures during the three months ended March 31, 2016 and December 31, 2015 for assets measured at fair value on a recurring basis. As of March 31, 2016 and December 31, 2015, there were no assets or liabilities classified as Level 3. 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 that were recognized at fair value which was below cost. Certain impaired loans are recorded in the Company’s condensed consolidated financial statements using 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 considered a market rate for those loans. The discounted cash flow approach is used to measure impairment for certain impaired loans, because of the significant payment history and the global cash flow analysis performed on each borrower. As of Fair Value Measurements Using March 31, Quoted Prices in Significant Other Significant 2016 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 Other real estate owned $ $ - $ $ - $ Total assets measured on a non-recurring basis $ $ - $ $ - $ As of Fair Value Measurements Using December 31, Quoted Prices in Significant Other Significant 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 Other real estate owned $ - $ - $ - $ - $ - Total assets measured on a non-recurring basis $ - $ - $ - $ - $ - There were no transfers between levels of fair value measures during the three months ended March 31, 2016 for assets measured at fair value on a non-recurring basis. Fair Value of Financial Instruments The following table provides a summary of the estimated fair value of financial instruments at March 31, 2016 and December 31, 2015: Fair Value Measurements Using As of Quoted Prices in Significant Other Significant March 31, 2016 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 $ $ $ - $ - $ Investment securities available for sale - Federal Home Loan Bank stock - - - N/A Loans receivable, net - - Loans held for sale - - Interest rate swaps - - Accrued interest receivable - Liabilities Non-interest bearing deposits - - Interest bearing deposits - - Federal Home Loan Bank advances - - Junior subordinated debentures - - Interest rate swaps - - Accrued interest payable - - Fair Value Measurements Using As of Quoted Prices in Significant Other Significant December 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 $ $ $ - $ - $ Investment securities available for sale - Federal Home Loan Bank stock - - - N/A Loans receivable, net - - Loans held for sale - - Interest rate swaps - - - - - Accrued interest receivable - Liabilities Non-interest bearing deposits - - Interest bearing deposits - - Federal Home Loan Bank advances - - Junior subordinated debentures - - Interest rate swaps - - - - - Accrued interest payable - - Information on off-balance sheet instruments as of March 31, 2016 and December 31, 2015 follows: March 31, 2016 December 31, 2015 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 $ $ $ $ |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2016 | |
Investment Securities | |
Investment Securities | Note 3. 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 at March 31, 2016 and December 31, 2015: March 31, 2016 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (dollars in thousands) Obligations of U.S. government agencies $ $ $ $ Mortgage backed securities U.S. government sponsored entities and agencies Non-agency State and municipal securities Asset backed securities - Other investments - Total available for sale securities $ $ $ $ December 31, 2015 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (dollars in thousands) Obligations of U.S. government agencies $ $ $ $ Mortgage backed securities U.S. government sponsored entities and agencies Non-agency - State and municipal securities Asset backed securities - Other investments - Total available for sale securities $ $ $ $ Those investment securities available for sale which have an unrealized loss position at March 31, 2016 and December 31, 2015 are detailed below: March 31, 2016 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 $ $ $ $ $ $ Mortgage backed securities U.S. government sponsored entities and agencies Non-agency State and municipal securities - - Asset backed securities - - Other investments - - Total $ $ $ $ $ $ December 31, 2015 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 $ $ $ - $ - $ $ Mortgage backed securities U.S. government sponsored entities and agencies Non-agency State and municipal securities Asset backed securities - - Other investments - - Total $ $ $ $ $ $ A total of 70 and 104 securities were in an unrealized loss position as of March 31, 2016 and December 31, 2015, respectively. As of March 31, 2016, the Company believes that unrealized losses on its investment securities are not attributable to credit quality, but rather fluctuations in market prices. In the case of the agency mortgage related securities, contractual cash flows are guaranteed by agencies of the U.S. Government. While the Company’s investment security holdings have contractual maturity dates that range from 1 to 40 years, they have a much shorter effective duration dependent on the instrument’s priority in the overall cash flow structure and the characteristics of the loans underlying the investment security. Management does not intend to sell and it is unlikely that management will be required to sell the securities prior to their anticipated recovery. As of March 31, 2016, the Company does not believe unrealized losses related to any of its securities are other than temporary. The proceeds from the sales and calls of securities and the associated gains and losses for the three months ended March 31, 2016 and 2015 are listed below: Three Months Ended March 31, 2016 2015 (dollars in thousands) Proceeds $ $ Gross gains Gross losses The income tax expense related to these net realized gains was $0.2 million for the three months ended March 31, 2016 and 2015. The table below provides a maturity distribution of available for sale investment securities at March 31, 2016 and December 31, 2015. The table reflects the expected lives of mortgage-backed securities, based on the Company’s historical prepayment experience, because borrowers have the right to prepay obligations without prepayment penalties. Included in the Company’s mortgage-backed securities are Home Equity Conversion Mortgages, which typically possess prepayment characteristics that differ from traditional mortgage-backed securities, such that prepayment activity is not as closely correlated with changes in interest rates. Contractual maturities are reflected for all other security types. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2016 December 31, 2015 Amortized Amortized Cost Fair Value Cost Fair Value (dollars in thousands) Due one year or less $ $ $ $ Due after one year through five years Due after five years through ten years Due after ten years Total $ $ $ $ Securities having an amortized cost and a fair value of $160.9 million and $163.9 million, respectively at March 31, 2016, and $153.9 million and $155.2 million, respectively at December 31, 2015 were pledged to secure public deposits. At March 31, 2016 and December 31, 2015, 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 investment securities, both taxable, and those that are exempt from federal taxation for the three months ended March 31, 2016 and 2015: For the Three Months Ended March 31, 2016 2015 (dollars in thousands) Taxable earnings on investment securities Obligations of U.S. government agencies $ $ Mortgage backed securities State and municipal securities Asset backed securities Earnings on investment securities exempt from federal taxation State and municipal securities Total $ $ |
Loans and Allowance for Loan an
Loans and Allowance for Loan and Lease Losses | 3 Months Ended |
Mar. 31, 2016 | |
Loans and Allowance for Loan and Lease Losses | |
Loans and Allowance for Loan and Lease Losses | Note 4. Loans and Allowance for Loan and Lease Losses The following table provides a summary of outstanding loan balances as of March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 Non-PCI PCI Total Loans Non-PCI PCI Total Loans Loans Loans Receivable Loans Loans Receivable (dollars in thousands) Real Estate Secured Commercial $ $ $ $ $ $ Residential 1 to 4 family Farmland - - Multi-family residential - - Construction and land Home equity lines of credit - - Total real estate secured Commercial Commercial and industrial Agriculture Total commercial Consumer - - Total loans held for investment Deferred loan fees - - Allowance for loan and lease losses Total net loans held for investment $ $ $ $ $ $ Loans held for sale $ $ - $ $ $ - $ Non-PCI acquired loans totaled $151.7 million and $163.8 million as of March 31, 2016 and December 31, 2015, respectively, and are included in total non-PCI loans in the table above. The decline in these loan balances is attributable to loan prepayments, payoffs, and scheduled principal reduction. Loans held for sale consist of single-family residential mortgage loans under contract to be sold in the secondary market. In most cases these loans are sold within thirty to sixty days. Concentration of Credit Risk The Company held loans that were collateralized by various forms of real estate, including residential 1 to 4 family loans originated and held for sale, totaling $1.1 billion at March 31, 2016 and $1.0 billion at December 31, 2015, respectively. These 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 assurance 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 Company’s consolidated financial statements. The unpaid principal balance of loans serviced for others, exclusive of Small Business Administration (“SBA”) loans, was $32.4 million and $38.0 million at March 31, 2016 and December 31, 2015, respectively. Periodically, the Company originates SBA loans for sale for which it retains the servicing of the guaranteed portion of the loan sold. At March 31, 2016 and December 31, 2015, the unpaid principal balance of SBA loans serviced for others totaled $7.9 million and $8.5 million, respectively. The Company did not sell any SBA loans as of March 31, 2016. The gain on sale of SBA loans is included as a component of other income in non-interest income. Pledged Loans At March 31, 2016, the Bank has pledged $656.9 million of loans to the FHLB of San Francisco to secure a credit facility totaling $453.1 million under a blanket lien. Of this credit facility, $10.2 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 of San Francisco, which is secured by $5.0 million of loans at March 31, 2016. Purchased Credit Impaired Loans As part of the acquisition of Mission Community Bancorp in 2014 (the “MISN Transaction”), the Company acquired certain loans classified as PCI loans. These loans have exhibited evidence of deterioration in credit quality since their origination, and at their acquisition it was deemed probable all contractually required payments would not be collected. The table below summarizes the unpaid principal balance and carrying amount of PCI loans as of March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 Unpaid Principal Balance Carrying Amount Unpaid Principal Balance Carrying Amount (dollars in thousands) Real Estate Secured Commercial $ $ $ $ Residential 1 to 4 family Construction and land Total real estate secured Commercial Agriculture Commercial and industrial Total commercial Total PCI loans $ $ $ $ The following table summarizes activity in the accretable yield, or income expected to be collected on PCI loans for the three months ended March 31, 2016 and 2015: For the Three Months Ended, March 31, 2016 2015 (dollars in thousands) Beginning balance $ $ Accretion of income Reclassifications from nonaccretable difference (1) Ending balance $ $ (1) Reclassification from nonaccretable difference is attributed to positive changes in expected future cash flows on PCI loans. Impaired Loans The following tables provide a summary of the Company’s recorded investment in non-PCI and PCI impaired loans as of and for the periods presented: March 31, 2016 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 Construction and land $ $ $ - $ $ Commercial - Farmland - Residential 1 to 4 family - Home equity lines of credit - - Commercial Commercial and industrial - Agriculture - Consumer - Total - With Related Allowance Real Estate Secured Commercial Commercial Commercial and industrial Agriculture Total Total Non-PCI impaired loans $ $ $ $ $ March 31, 2016 Unpaid Specific Average Interest Recorded Principal Allowance for Recorded Income Investment Balance Impaired Loans Investment Recognized (dollars in thousands) PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ Residential 1 to 4 family - Construction and land - Commercial Agriculture - Commercial and industrial - Total - With Related Allowance Real Estate Secured Commercial Construction and land Commercial Commercial and industrial Total Total PCI loans $ $ $ $ $ For the Three Months Ended December 31, 2015 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 Construction and land $ $ $ - $ $ Commercial - Residential 1 to 4 family - - Farmland - Home equity lines of credit - - Commercial Commercial and industrial - Agriculture - Consumer - Total - With Related Allowance Real Estate Secured Commercial - Land - - - Commercial Commercial and industrial Agriculture - - Total Total Non-PCI impaired loans $ $ $ $ $ For the Three Months Ended December 31, 2015 March 31, 2015 Unpaid Specific Average Interest Recorded Principal Allowance for Recorded Income Investment Balance Impaired Loans Investment Recognized (dollars in thousands) PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ Residential 1 to 4 family - Construction and land - Commercial Agriculture - Commercial and industrial - Total - With Related Allowance Real Estate Secured Commercial Construction and land Residential 1 to 4 family - - - Commercial Commercial and industrial Total Total PCI loans $ $ $ $ $ The Company did not record income from the receipt of cash payments related to non-accruing loans during the periods ended March 31, 2016 and December 31, 2015. If interest on non-accruing loans had been recognized at the original interest rates stipulated in the respective loan agreements, interest income would have increased $0.2 million for the period ended March 31, 2016 and 2015, respectively. Interest income recognized on impaired loans in the tables above represents interest the Company recognized on accruing TDRs. At March 31, 2016, 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 The majority of the Bank’s TDRs were granted concessions with respect to interest rates, payment structure and/or maturity. Modifications to loans as TDRs during the three month period ended March 31, 2016 were primarily comprised of extensions of a loan’s maturity at the loan’s original interest rate, which was lower than the market rate of interest for new credit with similar risk. Extensions of maturity were for periods ranging from 6 months to 10 years. At March 31, 2016, the Company was not committed to lend any additional funds to borrowers with loans modified as TDRs. As of March 31, 2016 the Company had established valuation allowances for loans modified as TDRs totaling $0.4 million. The following table provides a summary of loans classified as TDRs as of March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 Accrual Non-accrual Total Accrual Non-accrual Total (dollars in thousands) Non-PCI loans Real estate secured Construction and land $ $ $ $ $ $ Commercial Farmland Residential 1 to 4 family - Commercial Commercial and industrial Agriculture - Consumer Total non-PCI loans PCI loans Real estate secured Commercial Construction and land - - Commercial Commercial and industrial Total PCI loans Total TDRs $ $ $ $ $ $ The following tables summarize loan modifications which resulted in TDRs during the periods presented below: For the Three Months Ended For the Three Months Ended March 31, 2016 March 31, 2015 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 Commercial - $ - $ - $ $ Residential 1 to 4 family - - - Commercial Commercial and industrial Agriculture Consumer - - - Total $ $ $ $ The following tables summarize loans that were modified as troubled debt restructurings within the twelve months prior to the balance sheet date, and for which there was a payment default during the periods presented below: For the Three Months Ended For the Three Months Ended March 31, 2016 March 31, 2015 Number of TDRs Recorded Investment Number of TDRs Recorded Investment Non-PCI Loans (dollars in thousands) Real Estate Secured Farmland $ - $ - Commercial Commercial and industrial - - Total $ $ 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, 2016 Balance December 31, 2015 Charge-offs Recoveries Provision for Loan and Lease Losses Balance March 31, 2016 (dollars in thousands) Other real estate secured $ $ - $ $ $ Commercial Construction and land - Consumer Unallocated - - Total $ $ $ $ - $ For the Three Months Ended March 31, 2015 Balance December 31, 2014 Charge-offs Recoveries Provision for Loan and Lease Losses Balance March 31, 2015 (dollars in thousands) Other real estate secured $ $ $ $ $ Commercial - Construction and land Consumer - Unallocated - - Total $ $ $ $ - $ 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: March 31, 2016 Allowance for Loan and Lease Losses Recorded Investment in Loans Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans Acquired with Deteriorated Credit Quality Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans Acquired with Deteriorated Credit Quality (dollars in thousands) Other real estate secured $ $ $ $ $ $ Commercial Construction and land - Consumer - - - Unallocated - - - - - Total $ $ $ $ $ $ December 31, 2015 Allowance for Loan and Lease Losses Recorded Investment in Loans Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans Acquired with Deteriorated Credit Quality Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans Acquired with Deteriorated Credit Quality (dollars in thousands) Other real estate secured $ $ $ $ $ $ Commercial Construction and land - Consumer - - - Unallocated - - - - - Total $ $ $ $ $ $ At March 31, 2016, total gross loans of $1.3 billion in the table above include $160.3 million of loans acquired in the MISN Transaction. Loans acquired in the MISN Transaction were initially recorded at fair value, and had no related ALLL on the acquisition date. At March 31, 2016 and December 31, 2015 the ALLL for acquired non-PCI loans, which were acquired in the MISN Transaction, was $0.2 million, respectively, and is included in the ALLL for loans collectively evaluated for impairment. The incremental ALLL allocation for acquired non-PCI loans was not due to deterioration in credit quality, but rather due to accelerated accretion of purchase discounts attributable to loan paydowns and payoffs. The ALLL for PCI loans was $0.1 million as of March 31, 2016 and December 31, 2015, and is attributable to unfavorable changes in expected future cash flows on certain PCI loans. Reserve for Off-Balance Sheet Loan Commitments The Company has exposure to losses from unfunded loan commitments and letters of credit. Estimated losses inherent in the outstanding balance of these commitments is not included in the ALLL, but is recorded separately, and included as a component of other liabilities in the consolidated balance sheets. The balance of the reserve for off-balance sheet commitments was $0.5 million at March 31, 2016 and December 31, 2015. Credit Quality The following tables stratify loans held for investment by the Company’s internal risk grading system as of March 31, 2016 and December 31, 2015: March 31, 2016 Credit Risk Grades Special Pass Mention Substandard Doubtful Total (dollars in thousands) Non-PCI loans Real estate secured Commercial $ $ $ $ - $ Residential 1 to 4 family - Farmland - Multi-family residential - - - Construction and land - Home equity lines of credit - - Commercial Commercial and industrial - Agriculture - Consumer - Total non-PCI loans - PCI loans Real estate secured Commercial - Residential 1 to 4 family - - Construction and land - - - Commercial Agriculture - - - Commercial and industrial - Total PCI loans - Total loans held for investment $ $ $ $ - $ December 31, 2015 Credit Risk Grades Special Pass Mention Substandard Doubtful Total (dollars in thousands) Non-PCI loans Real estate secured Commercial $ $ $ $ - $ Residential 1 to 4 family - Farmland - Multi-family residential - - - Construction and land - Home equity lines of credit - - Commercial Commercial and industrial - Agriculture - Consumer - - Total non-PCI loans - PCI loans Real estate secured Commercial - - Residential 1 to 4 family - - Construction and land - - Commercial Agriculture - - - Commercial and industrial - Total PCI loans - Total loans held for investment $ $ $ $ - $ 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, 2016 Days Past Due 90+ and Still Non- Current 30-59 60-89 Accruing Accruing (1) Total (dollars in thousands) Non-PCI loans Real Estate Secured Commercial $ $ - $ - $ - $ $ Residential 1 to 4 family - - - - Farmland - - - Multi-family residential - - - - Construction and land - - - Home equity lines of credit - - - Commercial Commercial and industrial - - Agriculture - - - Consumer - - - Total non-PCI loans - - PCI loans Real estate secured Commercial - - - Residential 1 to 4 family - - - - Construction and land - - - - Commercial Agriculture - - - - Commercial and industrial - - Total PCI loans - - Total loans held for investment $ $ $ - $ - $ $ (1) At March 31, 2016, $6.3 million of non-accruing loans were current, $85 thousand were 30-59 days past due, $118 thousand were 60-89 days past due, and $1.7 million were 90+ days past due. December 31, 2015 Days Past Due 90+ and Still Non- Current 30-59 60-89 Accruing Accruing (1) Total (dollars in thousands) Non-PCI loans Real Estate Secured Commercial $ $ - $ - $ - $ $ Residential 1 to 4 family - - - Farmland - - - Multi-family residential - - - - Construction and land - - - Home equity lines of credit - - - Commercial Commercial and industrial - Agriculture - - - - Consumer - - - Total non-PCI loans - PCI loans Real estate secured Commercial - - - Residential 1 to 4 family - - - - Construction and land - - - - Commercial Agriculture - - - - Commercial and industrial - - - Total PCI loans - - - Total loans held for investment $ $ $ $ - $ $ (1) At December 31, 2015, $6.4 million of non-accruing loans were current, $28 thousand were 30-59 days past due, $26 thousand were 60-89 days past due, and $1.4 million were 90+ days past due. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes | |
Income Taxes | Note 5. 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, 2016 and December 31, 2015 there was no valuation allowance for the Company’s deferred tax assets. The Company’s deferred tax assets totaled $18.7 million at March 31, 2016, and $21.3 million at December 31, 2015. The Company is subject to income taxation by both federal and state taxing authorities. Income tax returns for the years ended December 31, 2015, 2014, 2013, 2012 are open to audit by federal taxing authorities while income tax returns are open to audit by state taxing authorities for the years ended December 31, 2015, 2014, 2013, 2012, and 2011. The Company does not have any uncertain income tax positions and has not accrued for any interest or penalties as of March 31, 2016 and December 31, 2015. 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 net operating losses (“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 A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 6. Goodwill and Other Intangible Assets Intangible assets consist of goodwill and core deposit intangible assets (“CDI”) associated with the acquisition of core deposit balances. At March 31, 2016 and December 31, 2015, the carrying value of goodwill was $24.9 million. At March 31, 2016 and December 31, 2015, the balance of CDI was $4.1 million and $4.3 million. CDI assets are subject to amortization. Amortization for the three months ended March 31, 2016 and 2015 was $0.2 million and $0.3 million, respectively. The following table summarizes the gross carrying amount, accumulated amortization and net carrying amount of CDI and provides an estimate for future amortization as of March 31, 2016: March 31, 2016 Gross Carrying Accumulated Net Carrying Amount Amortization Amount (dollars in thousands) Core deposit intangibles $ $ $ March 31, 2016 Beginning Estimated Projected Ending Balance Amortization Balance (dollars in thousands) Period Year 2016 $ $ $ Year 2017 Year 2018 Year 2019 Year 2020 Year 2021 |
Share-based Compensation Plans
Share-based Compensation Plans | 3 Months Ended |
Mar. 31, 2016 | |
Share-based Compensation Plans | |
Share-based Compensation Plans | Note 7. Share-based Compensation Plans As of March 31, 2016, the Company had one active share-based employee compensation plan, which was approved by the Company’s shareholders in May 2015. This plan, referred to as the “2015 Equity Incentive Plan,” authorizes the Company to grant various types of share-based compensation awards to the Company’s employees and Board of Directors such as stock options, and restricted stock awards. Under the 2015 Equity Incentive Plan a maximum of 2,500,000 shares of the Company’s common stock may be issued. Shares issued under this plan, other than stock options and stock appreciation rights, are counted against the plan on a two shares for every one share actually issued basis. Awards that are cancelled, expired, forfeited, fail to vest, or otherwise result in issued shares not being delivered to the grantee, are again made available for the issuance of future share-based compensation awards. Additionally, under this plan, no one individual may be granted shares in aggregate that exceed more than 250,000 shares during any calendar year. The Company’s Board of Directors may terminate the 2015 Equity Incentive Plan at any time, and for any reason before the plan expires on December 3, 2024. The Company also has two non-active share-based compensation plans. These plans are referred to as the “2005 Equity Based Compensation Plan,” and the “1997 Stock Option Plan.” As of March 31, 2016, no further grants can be made from either of these plans. 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. Compensation cost related to awards that are subject to performance conditions is recognized over the vesting period if the Company believes it is more likely than not that the performance conditions will be achieved. If the Company believes it is more likely than not that performance conditions will not be achieved, the Company ceases the accrual of compensation cost for the related award, and previously recognized compensation cost for the unvested portion of the award is reversed from earnings. The following table provides a summary of activity related to restricted stock granted for the three months ended March 31, 2016: Number of Average Grant Shares Date Fair Value Balance December 31, 2015 $ Granted Vested Forfeited Balance March 31, 2016 $ Included in the table above are performance-based grants of restricted stock totaling 13,245 shares as of March 31, 2016. 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 provides information related to options that have vested or are expected to vest and exercisable options as of March 31, 2016: Options Outstanding Options Number Weighted Average Available for of Shares Exercise Price Grant Balance, December 31, 2015 $ Granted Forfeited Exercised Balance, March 31, 2016 $ March 31, 2016 Weighted Average Weighted Remaining Aggregate Average Contractual Life Intrinsic Shares Exercise Price (Years) Value Vested or expected to vest $ $ Exercisable at March 31, 2016 $ $ The total intrinsic value, the amount by which the stock price exceeded the exercise price on the date of exercise, of options exercised in all plans during the period ended March 31, 2016 was $138 thousand. The tax benefit related to the exercise of stock options and disqualifying dispositions on the exercise of incentive stock options was $2 thousand for the period ended March 31, 2016. The following table presents the assumptions used in the calculation of the weighted average fair value of options granted at various dates during the three months ended March 31, 2016 and 2015: For the Three Months Ended March 31, 2016 2015 Expected volatility Expected term (years) Dividend yield Risk free rate Weighted-average grant date fair value $ $ 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. Share-Based Compensation Expense The following table provides a summary of the expense the Company recognized related to share-based compensation awards, as well as the remaining expense associated with those awards as of and for the three months ended March 31, 2016 and 2015: For the Three Months Ended March 31, 2016 2015 (dollars in thousands) Share-based compensation expense: Stock options $ $ Restricted stock Total expense $ $ Unrecognized compensation expense: Stock options $ $ Restricted stock Total unrecognized expense $ $ Expense related to share-based compensation is charged to earnings over the period the awards are expected to vest, and is included in salaries and employee benefits in the consolidated financial statements. For the three months ended March 31, 2016 and 2015, the total income tax benefit recognized related to share-based compensation was $2 thousand, and $27 thousand, respectively. At March 31, 2016, compensation expense related to unvested stock options and restricted stock is expected to be recognized over 2.6 years and 1.8 years, respectively. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Shareholders' Equity | |
Shareholders' Equity | Note 8. Shareholders’ Equity Cash Dividends On January 27, 2016, the Company’s Board of Directors declared a cash dividend of $0.06 per share, payable on February 29, 2016, to shareholders of the Company’s common stock as of February 17, 2016. As discussed in Note 14. Subsequent Events , of these condensed consolidated financial statements, on April 27, 2016, the Company’s Board of Directors declared a cash dividend of $0.06 per share, payable on May 31, 2016, to shareholders of the Company’s common stock as of May 18, 2016. Stock Repurchase Program On January 6, 2016, the Company amended its previously announced program for the repurchase of up to $5.0 million of its outstanding common stock pursuant to a written plan compliant with Rule 10b5-1 and Rule 10b-18. The amendment to the stock repurchase program include an extension of the program beyond its then expiration date of January 31, 2016. Under the amended program, repurchase activity commenced on February 1, 2016 and may continue until August 2, 2016, the program’s new expiration date, or expire earlier upon the completion of the repurchase of $5.0 million of the Company’s common stock, as well as under certain other circumstances as set forth in the amended program. The Company has no obligation to repurchase any shares under this program, and may suspend or discontinue it at any time. All shares repurchased as part of the repurchase program will be cancelled, and therefore no longer available for reissuance. During the three months ended March 31, 2016, the Company repurchased and cancelled 226,170 shares of its common stock at an aggregate cost of $1.6 million or $7.23 per share. As of March 31, 2016, the Company had repurchased and cancelled a total of 281,598 shares of its common stock under this plan at an aggregate total cost of $2.0 million or $7.28 per share. Regulatory Capital Capital ratios for commercial banks in the United States are generally calculated using four different formulas. These calculations are referred to as the “Leverage Ratio,” and three “risk-based” calculations known as: “Common Equity Tier I Capital Ratio,” “Tier One Risk Based Capital Ratio” and “Total Risk Based Capital Ratio.” These metrics were developed through joint efforts of banking authorities from different countries around the world. The standards are based on the premise that different types of assets have different levels of risk associated with them and take into consideration the off-balance sheet exposures of banks when assessing capital adequacy. The Bank seeks to maintain strong levels of capital in order to generally be considered “well-capitalized” under the Prompt Corrective Action framework as determined by regulatory agencies. The Company’s potential sources of capital include retained earnings and the issuance of equity, while the Bank’s primary sources of capital include retained earnings and capital contributions from Bancorp. 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 through 2019. The significant changes outlined under the Basel III Capital Rules that are applicable to the Company and the Bank include: · A 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.” · The capital conservation buffer is determined 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 began phasing-in on January 1, 2016. · The exclusion from CET I of certain items on a phased-in basis, such as deferred tax assets and intangible assets. For 2016, certain deferred tax assets and intangible assets are phased-out of CET I at a rate of 60%, compared to 40% for 2015. 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 as of March 31, 2016 and December 31, 2015 : Regulatory Standard to Be Considered Adequately Capitalized (1) Well Capitalized (2) March 31, 2016 December 31, 2015 Bank Company Bank Company Bank Company Bank Ratio Common Equity Tier I Capital Ratio Leverage ratio Tier I Risk-Based Capital Ratio Total Risk-Based Capital Ratio (1) As of March 31, 2016, includes Capital Conservation Buffer of 0.625%. On a fully phased-in basis, effective January 1, 2019, under Basel III Capital Rules, minimum capital ratios will be as follows: CET I: 7.0%; Tier I Risk-Based Capital Ratio: 8.5%; Total Risk-Based Capital Ratio: 10.5%. (2) Reflects minimum threshold to be considered “well capitalized” under Prompt Corrective Action framework, specific to depository institutions. At March 31, 2016, the Company was able to include $10.1 million of junior subordinated debt in its Tier I capital for regulatory capital purposes compared to $10.0 million at December 31, 2015. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share | |
Earnings Per Share | Note 9. Earnings Per Share The following tables set forth the number of shares used in the calculation of both basic and diluted earnings per common share: For the Three Months Ended March 31, 2016 2015 Net Net Income Shares Income Shares (dollars in thousands, except per share data) Net income $ $ Weighted average shares outstanding Basic earnings per common share $ $ Dilutive effect of share-based compensation awards Weighted average diluted shares outstanding Diluted earnings per common share $ $ For the three months ended March 31, 2016 and 2015, common stock equivalents associated primarily with stock options, totaling approximately 35,000 shares and 136,000 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, 2016 | |
Commitments and Contingencies. | |
Commitments and Contingencies | Note 10. Commitments and Contingencies In the normal course of business, various claims and lawsuits are brought by and against the Company. In the opinion of management and the Company’s legal counsel, the disposition of all pending or threatened proceedings will not have a material effect on the Company’s consolidated financial statements. Commitments to Extend Credit In the normal course of business, the Bank enters into financial commitments to meet the financing needs of its customers. These financial commitments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk not recognized in the 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. 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, 2016 and December 31, 2015, the Company had the following outstanding financial commitments: March 31, December 31, 2016 2015 (dollars in thousands) Commitments to extend credit $ $ Standby letters of credit (1) Total commitments and standby letters of credit $ $ (1) Includes a standby letter of credit to one customer in the amount of $10.2 million and $10.4 million at March 31 2016 and December 31 2015 respectively. Commitments to extend credit and standby letters of credit are made at both fixed and variable rates of interest. At March 31, 2016, the Company had $24.4 million in fixed rate commitments and $230.4 million in variable rate commitments. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2016 | |
Regulatory Matters | |
Regulatory Matters | Note 11. Regulatory Matters BSA 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 BSA 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 BSA 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 BSA 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 BSA Consent Order remains outstanding. The Company continues to make progress in addressing the issues identified in the BSA Consent Order that was entered into with its regulators in November of 2014. However, the Company still has additional work to do in order to fully remediate the issues identified in the BSA Consent Order. Compliance and resolution of the BSA Consent Order will ultimately be determined by the FDIC and DBO. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instrument [Abstract] | |
Derivative Instruments | Note 12. Derivative Instruments The Company has entered into interest rate swap agreements with certain borrowers to assist them in mitigating their interest rate risk exposure associated with the loans they have with the Company. At the same time, the Company has entered into identical interest rate swap agreements with another financial institution to mitigate the Company’s interest rate risk exposure associated with the swap agreements with its borrowers. At March 31, 2016, the Company had swaps with matched terms with an aggregate notional amount of $20.9 million and a fair value of $0.9 million. The fair values of these swaps are recorded as other assets and other liabilities in the Company’s condensed consolidated balance sheet. Changes in the fair value of these swaps, which occur due to changes in interest rates, are recorded in the Company’s income statement as a component of non-interest income. Since the terms of the swap agreements between the Company and its borrowers have been matched with the terms of swap agreements with another financial institution, the adjustments for the change in their fair value offset each other in non-interest income. Although changes in the fair value of swap agreements between the Company and borrowers and the Company and other financial institutions offset each other, changes in the credit risk of these counterparties may result in a difference in the fair value of these swap agreements. Offsetting swap agreements the Company has with other financial institutions are collateralized with cash, and swap agreements with borrowers are secured by the collateral arrangements for the underlying loans these borrowers have with the Company. During the three months ended March 31, 2016, there were no losses recorded on swap agreements, attributable to the change in credit risk associated with a counterparty. All interest rate swap agreements entered into by the Company as of March 31, 2016 are not designated as hedging instruments. The following table summarizes the Company’s derivative instruments, included in “other assets” and “other liabilities” in the condensed consolidated balance sheets, as of March 31, 2016: March 31, 2016 Derivative Assets Derivative Liabilities Notional Fair Value Notional Fair Value (dollars in thousands) Derivative instruments not designated as hedging instruments: Interest rate swap contracts - pay floating, receive fixed $ $ $ - $ - Interest rate swap contracts - pay fixed, receive floating - - Total $ $ $ $ The Company was not party to any swap agreements as of December 31, 2015. |
Balance Sheet Offsetting
Balance Sheet Offsetting | 3 Months Ended |
Mar. 31, 2016 | |
Balance Sheet Offsetting [Abstract] | |
Balance Sheet Offsetting | Note 13. Balance Sheet Offsetting Derivative financial instruments may be eligible for offset in the consolidated balance sheets, such as those subject to enforceable master netting arrangements or a similar agreement. Under these agreements, the Company has the right to net settle multiple contracts with the same counterparty. The Company offers an interest rate swap product to qualified customers. These derivative financial instruments are paired with derivative contracts entered into with an unrelated counterparty bank. While derivative contracts entered into with counterparty banks may be subject to enforceable master netting agreements, derivative contracts with customers may not be subject to enforceable master netting arrangements. As such, these instruments have been excluded from the table below. Financial instruments that are eligible for offset in the consolidated balance sheets as of March 31, 2016 are presented in the table below: Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts Recognized in the Consolidated Balance Sheets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Net Amount (dollars in thousands) March 31, 2016 Financial liabilities: Derivatives not designated as hedging instruments $ $ - $ $ - $ $ Total $ $ - $ $ - $ $ As shown in the table above, as of March 31, 2016, the Company pledged cash collateral of $0.9 million for interest rate swaps in a liability position. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events | |
Subsequent Events | Note 14. Subsequent Events Dividend Declaration On April 27, 2016, the Company’s Board of Directors declared a cash dividend of $0.06 per share, payable on May 31, 2016, to shareholders of the Company’s common stock as of May 18, 2016. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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. 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 September, 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Measurement Period Adjustments (Topic 805). This ASU eliminates the requirement to restate prior period financial statements for measurement period adjustments to assets acquired and liabilities assumed in a business combination. The new guidance under this update requires the cumulative impact of measurement period adjustments be recognized in the period the adjustment is determined. This update does not change what constitutes a measurement period adjustment, nor does it change the length of the measurement period. The new standard is effective for interim annual periods beginning after December 15, 2015 and should be applied prospectively to measurement period adjustments that occur after the effective date. This update did not have an impact on the Company’s condensed consolidated financial statements. |
Recent Accounting Guidance Not Yet Effective | Recent Accounting Guidance Not Yet Effective In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718). This update simplifies several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flow. The new guidance under the update requires all excess tax benefits and tax deficiencies be recognized as income tax expense or benefit on the income statement. The amendments within the update are effective for fiscal years and all interim periods beginning after December 31, 2016, with early adoption permitted. 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 financial statements. In February 2016-02, the FASB issued ASU 2016-02, Leases (Topic 842). This update improves the understanding and comparability of lessees’ financial commitments by requiring lease assets and lease liabilities to be recognized on the balance sheet for those leases classified as operating leases under current U.S. GAAP. This ASU requires a lessee to recognize on the balance sheet a lease liability to make lease payments and a right of use asset, representing the right to use the underlying asset, during the term of the lease. This update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, using a modified retrospective approach, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption of this update will have on its financial statements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825). The amendments in this update require that public entities measure equity investments with readily determinable fair values, at fair value, with changes in their fair value recorded through net income. This ASU also clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. The amendments within the update are effective for fiscal years and all interim periods beginning after December 15, 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 financial statements. 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, 2018. 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 financial statements. |
Fair Value of Assets and Liab24
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value of Assets and Liabilities | |
Summary of the assets the Company measures at fair value on a recurring basis | As of Fair Value Measurements Using March 31, Quoted Prices in Significant Other Significant 2016 Active Markets for Observable Unobservable Assets At Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) Assets Available for sale investments: Obligations of U.S. government agencies $ $ - $ $ - Mortgage backed securities U.S government sponsored entities and agencies - - Non-agency - - State and municipal securities - - Asset backed securities - - Other investments - - Derivative financial instruments: Interest rate swaps - Total assets measured on a recurring basis $ $ $ $ - Liabilities Derivative financial instruments: Interest rate swaps $ $ - $ $ - Total liabilities measured on a recurring basis $ $ - $ $ - As of Fair Value Measurements Using December 31, Quoted Prices in Significant Other Significant 2015 Active Markets for Observable Unobservable Assets At Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) Assets Available for sale investments: Obligations of U.S. government agencies $ $ - $ $ - Mortgage backed securities U.S government sponsored entities and agencies - - Non-agency - - State and municipal securities - - Asset backed securities - - Other investments - - Derivative financial instruments: Interest rate swaps - - - - Total assets measured on a recurring basis $ $ $ $ - Liabilities Derivative financial instruments: Interest rate swaps $ - $ - $ - $ - Total liabilities measured on a recurring basis $ - $ - $ - $ - |
Summary of assets the Company measures at fair value on a non-recurring basis | As of Fair Value Measurements Using March 31, Quoted Prices in Significant Other Significant 2016 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 Other real estate owned $ $ - $ $ - $ Total assets measured on a non-recurring basis $ $ - $ $ - $ As of Fair Value Measurements Using December 31, Quoted Prices in Significant Other Significant 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 Other real estate owned $ - $ - $ - $ - $ - Total assets measured on a non-recurring basis $ - $ - $ - $ - $ - |
Summary of the estimated fair value of financial instruments | Fair Value Measurements Using As of Quoted Prices in Significant Other Significant March 31, 2016 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 $ $ $ - $ - $ Investment securities available for sale - Federal Home Loan Bank stock - - - N/A Loans receivable, net - - Loans held for sale - - Interest rate swaps - - Accrued interest receivable - Liabilities Non-interest bearing deposits - - Interest bearing deposits - - Federal Home Loan Bank advances - - Junior subordinated debentures - - Interest rate swaps - - Accrued interest payable - - Fair Value Measurements Using As of Quoted Prices in Significant Other Significant December 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 $ $ $ - $ - $ Investment securities available for sale - Federal Home Loan Bank stock - - - N/A Loans receivable, net - - Loans held for sale - - Interest rate swaps - - - - - Accrued interest receivable - Liabilities Non-interest bearing deposits - - Interest bearing deposits - - Federal Home Loan Bank advances - - Junior subordinated debentures - - Interest rate swaps - - - - - Accrued interest payable - - |
Summary of off-balance sheet instruments | March 31, 2016 December 31, 2015 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 $ $ $ $ |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (dollars in thousands) Obligations of U.S. government agencies $ $ $ $ Mortgage backed securities U.S. government sponsored entities and agencies Non-agency State and municipal securities Asset backed securities - Other investments - Total available for sale securities $ $ $ $ December 31, 2015 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (dollars in thousands) Obligations of U.S. government agencies $ $ $ $ Mortgage backed securities U.S. government sponsored entities and agencies Non-agency - State and municipal securities Asset backed securities - Other investments - Total available for sale securities $ $ $ $ |
Summary of investment securities in an unrealized loss position | March 31, 2016 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 $ $ $ $ $ $ Mortgage backed securities U.S. government sponsored entities and agencies Non-agency State and municipal securities - - Asset backed securities - - Other investments - - Total $ $ $ $ $ $ December 31, 2015 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 $ $ $ - $ - $ $ Mortgage backed securities U.S. government sponsored entities and agencies Non-agency State and municipal securities Asset backed securities - - Other investments - - Total $ $ $ $ $ $ |
Schedule of proceeds from the sales and calls of securities and the associated gains and losses | Three Months Ended March 31, 2016 2015 (dollars in thousands) Proceeds $ $ Gross gains Gross losses |
Schedule of amortized cost and fair values maturities of available for sale investment securities | March 31, 2016 December 31, 2015 Amortized Amortized Cost Fair Value Cost Fair Value (dollars in thousands) Due one year or less $ $ $ $ Due after one year through five years Due after five years through ten years Due after ten years Total $ $ $ $ |
Summary of earnings on both taxable and tax-exempt investment securities | For the Three Months Ended March 31, 2016 2015 (dollars in thousands) Taxable earnings on investment securities Obligations of U.S. government agencies $ $ Mortgage backed securities State and municipal securities Asset backed securities Earnings on investment securities exempt from federal taxation State and municipal securities Total $ $ |
Loans and Allowance for Loan 26
Loans and Allowance for Loan and Lease Losses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Loans and Allowance for Loan and Lease Losses | |
Summary of outstanding loan balances | March 31, 2016 December 31, 2015 Non-PCI PCI Total Loans Non-PCI PCI Total Loans Loans Loans Receivable Loans Loans Receivable (dollars in thousands) Real Estate Secured Commercial $ $ $ $ $ $ Residential 1 to 4 family Farmland - - Multi-family residential - - Construction and land Home equity lines of credit - - Total real estate secured Commercial Commercial and industrial Agriculture Total commercial Consumer - - Total loans held for investment Deferred loan fees - - Allowance for loan and lease losses Total net loans held for investment $ $ $ $ $ $ Loans held for sale $ $ - $ $ $ - $ |
Schedule of carrying amount and unpaid principal balance of PCI loans | March 31, 2016 December 31, 2015 Unpaid Principal Balance Carrying Amount Unpaid Principal Balance Carrying Amount (dollars in thousands) Real Estate Secured Commercial $ $ $ $ Residential 1 to 4 family Construction and land Total real estate secured Commercial Agriculture Commercial and industrial Total commercial Total PCI loans $ $ $ $ |
Schedule of accretable yield, or income expected to be collected on PCI loans | For the Three Months Ended, March 31, 2016 2015 (dollars in thousands) Beginning balance $ $ Accretion of income Reclassifications from nonaccretable difference (1) Ending balance $ $ (1) Reclassification from nonaccretable difference is attributed to positive changes in expected future cash flows on PCI loans. |
Summary of the recorded investment in non-PCI and PCI impaired loans | March 31, 2016 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 Construction and land $ $ $ - $ $ Commercial - Farmland - Residential 1 to 4 family - Home equity lines of credit - - Commercial Commercial and industrial - Agriculture - Consumer - Total - With Related Allowance Real Estate Secured Commercial Commercial Commercial and industrial Agriculture Total Total Non-PCI impaired loans $ $ $ $ $ March 31, 2016 Unpaid Specific Average Interest Recorded Principal Allowance for Recorded Income Investment Balance Impaired Loans Investment Recognized (dollars in thousands) PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ Residential 1 to 4 family - Construction and land - Commercial Agriculture - Commercial and industrial - Total - With Related Allowance Real Estate Secured Commercial Construction and land Commercial Commercial and industrial Total Total PCI loans $ $ $ $ $ For the Three Months Ended December 31, 2015 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 Construction and land $ $ $ - $ $ Commercial - Residential 1 to 4 family - - Farmland - Home equity lines of credit - - Commercial Commercial and industrial - Agriculture - Consumer - Total - With Related Allowance Real Estate Secured Commercial - Land - - - Commercial Commercial and industrial Agriculture - - Total Total Non-PCI impaired loans $ $ $ $ $ For the Three Months Ended December 31, 2015 March 31, 2015 Unpaid Specific Average Interest Recorded Principal Allowance for Recorded Income Investment Balance Impaired Loans Investment Recognized (dollars in thousands) PCI Loans Without Related Allowance Real Estate Secured Commercial $ $ $ - $ $ Residential 1 to 4 family - Construction and land - Commercial Agriculture - Commercial and industrial - Total - With Related Allowance Real Estate Secured Commercial Construction and land Residential 1 to 4 family - - - Commercial Commercial and industrial Total Total PCI loans $ $ $ $ $ |
Summary of loans classified as TDRs | March 31, 2016 December 31, 2015 Accrual Non-accrual Total Accrual Non-accrual Total (dollars in thousands) Non-PCI loans Real estate secured Construction and land $ $ $ $ $ $ Commercial Farmland Residential 1 to 4 family - Commercial Commercial and industrial Agriculture - Consumer Total non-PCI loans PCI loans Real estate secured Commercial Construction and land - - Commercial Commercial and industrial Total PCI loans Total TDRs $ $ $ $ $ $ |
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, 2016 March 31, 2015 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 Commercial - $ - $ - $ $ Residential 1 to 4 family - - - Commercial Commercial and industrial Agriculture Consumer - - - Total $ $ $ $ |
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 March 31, 2016 March 31, 2015 Number of TDRs Recorded Investment Number of TDRs Recorded Investment Non-PCI Loans (dollars in thousands) Real Estate Secured Farmland $ - $ - Commercial Commercial and industrial - - Total $ $ |
Summary of the activity in the allowance for loan and lease losses by portfolio segment | For the Three Months Ended March 31, 2016 Balance December 31, 2015 Charge-offs Recoveries Provision for Loan and Lease Losses Balance March 31, 2016 (dollars in thousands) Other real estate secured $ $ - $ $ $ Commercial Construction and land - Consumer Unallocated - - Total $ $ $ $ - $ For the Three Months Ended March 31, 2015 Balance December 31, 2014 Charge-offs Recoveries Provision for Loan and Lease Losses Balance March 31, 2015 (dollars in thousands) Other real estate secured $ $ $ $ $ Commercial - Construction and land Consumer - Unallocated - - Total $ $ $ $ - $ |
Schedule of allowance for loan and lease losses and the recorded investment in loans by impairment methodology | March 31, 2016 Allowance for Loan and Lease Losses Recorded Investment in Loans Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans Acquired with Deteriorated Credit Quality Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans Acquired with Deteriorated Credit Quality (dollars in thousands) Other real estate secured $ $ $ $ $ $ Commercial Construction and land - Consumer - - - Unallocated - - - - - Total $ $ $ $ $ $ December 31, 2015 Allowance for Loan and Lease Losses Recorded Investment in Loans Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans Acquired with Deteriorated Credit Quality Individually Evaluated for Impairment Collectively Evaluated for Impairment Loans Acquired with Deteriorated Credit Quality (dollars in thousands) Other real estate secured $ $ $ $ $ $ Commercial Construction and land - Consumer - - - Unallocated - - - - - Total $ $ $ $ $ $ |
Schedule of loan portfolio by the Company's internal risk grading system | March 31, 2016 Credit Risk Grades Special Pass Mention Substandard Doubtful Total (dollars in thousands) Non-PCI loans Real estate secured Commercial $ $ $ $ - $ Residential 1 to 4 family - Farmland - Multi-family residential - - - Construction and land - Home equity lines of credit - - Commercial Commercial and industrial - Agriculture - Consumer - Total non-PCI loans - PCI loans Real estate secured Commercial - Residential 1 to 4 family - - Construction and land - - - Commercial Agriculture - - - Commercial and industrial - Total PCI loans - Total loans held for investment $ $ $ $ - $ December 31, 2015 Credit Risk Grades Special Pass Mention Substandard Doubtful Total (dollars in thousands) Non-PCI loans Real estate secured Commercial $ $ $ $ - $ Residential 1 to 4 family - Farmland - Multi-family residential - - - Construction and land - Home equity lines of credit - - Commercial Commercial and industrial - Agriculture - Consumer - - Total non-PCI loans - PCI loans Real estate secured Commercial - - Residential 1 to 4 family - - Construction and land - - Commercial Agriculture - - - Commercial and industrial - Total PCI loans - Total loans held for investment $ $ $ $ - $ |
Summary of the aging of loans held for investment | March 31, 2016 Days Past Due 90+ and Still Non- Current 30-59 60-89 Accruing Accruing (1) Total (dollars in thousands) Non-PCI loans Real Estate Secured Commercial $ $ - $ - $ - $ $ Residential 1 to 4 family - - - - Farmland - - - Multi-family residential - - - - Construction and land - - - Home equity lines of credit - - - Commercial Commercial and industrial - - Agriculture - - - Consumer - - - Total non-PCI loans - - PCI loans Real estate secured Commercial - - - Residential 1 to 4 family - - - - Construction and land - - - - Commercial Agriculture - - - - Commercial and industrial - - Total PCI loans - - Total loans held for investment $ $ $ - $ - $ $ (1) At March 31, 2016, $6.3 million of non-accruing loans were current, $85 thousand were 30-59 days past due, $118 thousand were 60-89 days past due, and $1.7 million were 90+ days past due. December 31, 2015 Days Past Due 90+ and Still Non- Current 30-59 60-89 Accruing Accruing (1) Total (dollars in thousands) Non-PCI loans Real Estate Secured Commercial $ $ - $ - $ - $ $ Residential 1 to 4 family - - - Farmland - - - Multi-family residential - - - - Construction and land - - - Home equity lines of credit - - - Commercial Commercial and industrial - Agriculture - - - - Consumer - - - Total non-PCI loans - PCI loans Real estate secured Commercial - - - Residential 1 to 4 family - - - - Construction and land - - - - Commercial Agriculture - - - - Commercial and industrial - - - Total PCI loans - - - Total loans held for investment $ $ $ $ - $ $ (1) At December 31, 2015, $6.4 million of non-accruing loans were current, $28 thousand were 30-59 days past due, $26 thousand were 60-89 days past due, and $1.4 million were 90+ days past due. |
Goodwill and Other Intangible27
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Other Intangible Assets | |
Summary of the gross carrying amount, accumulated amortization and net carrying amount of CDI | March 31, 2016 Gross Carrying Accumulated Net Carrying Amount Amortization Amount (dollars in thousands) Core deposit intangibles $ $ $ |
Summary of an estimate for future amortization expense | March 31, 2016 Beginning Estimated Projected Ending Balance Amortization Balance (dollars in thousands) Period Year 2016 $ $ $ Year 2017 Year 2018 Year 2019 Year 2020 Year 2021 |
Share-based Compensation Plans
Share-based Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Share-based Compensation Plans | |
Summary of activity related to restricted stock granted, vested and forfeited | Number of Average Grant Shares Date Fair Value Balance December 31, 2015 $ Granted Vested Forfeited Balance March 31, 2016 $ |
Summary of activity related to options granted, exercised, and forfeited | Options Outstanding Options Number Weighted Average Available for of Shares Exercise Price Grant Balance, December 31, 2015 $ Granted Forfeited Exercised Balance, March 31, 2016 $ |
Summary of the aggregate intrinsic value of options vested and expected to vest and exercisable | March 31, 2016 Weighted Average Weighted Remaining Aggregate Average Contractual Life Intrinsic Shares Exercise Price (Years) Value Vested or expected to vest $ $ Exercisable at March 31, 2016 $ $ |
Schedule of assumptions used in the calculation of weighted average fair value of options granted | For the Three Months Ended March 31, 2016 2015 Expected volatility Expected term (years) Dividend yield Risk free rate Weighted-average grant date fair value $ $ |
Summary of recognized and unrecognized share based compensation expense | For the Three Months Ended March 31, 2016 2015 (dollars in thousands) Share-based compensation expense: Stock options $ $ Restricted stock Total expense $ $ Unrecognized compensation expense: Stock options $ $ Restricted stock Total unrecognized expense $ $ |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Shareholders' Equity | |
Schedule of the Company's and the Bank's actual regulatory capital ratios | Regulatory Standard to Be Considered Adequately Capitalized (1) Well Capitalized (2) March 31, 2016 December 31, 2015 Bank Company Bank Company Bank Company Bank Ratio Common Equity Tier I Capital Ratio Leverage ratio Tier I Risk-Based Capital Ratio Total Risk-Based Capital Ratio (1) As of March 31, 2016, includes Capital Conservation Buffer of 0.625%. On a fully phased-in basis, effective January 1, 2019, under Basel III Capital Rules, minimum capital ratios will be as follows: CET I: 7.0%; Tier I Risk-Based Capital Ratio: 8.5%; Total Risk-Based Capital Ratio: 10.5%. (2) Reflects minimum threshold to be considered “well capitalized” under Prompt Corrective Action framework, specific to depository institutions. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share | |
Schedule of calculation of basic and diluted earnings per common share | For the Three Months Ended March 31, 2016 2015 Net Net Income Shares Income Shares (dollars in thousands, except per share data) Net income $ $ Weighted average shares outstanding Basic earnings per common share $ $ Dilutive effect of share-based compensation awards Weighted average diluted shares outstanding Diluted earnings per common share $ $ |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies. | |
Schedule of outstanding financial commitments | March 31, December 31, 2016 2015 (dollars in thousands) Commitments to extend credit $ $ Standby letters of credit (1) Total commitments and standby letters of credit $ $ (1) Includes a standby letter of credit to one customer in the amount of $10.2 million and $10.4 million at March 31 2016 and December 31 2015 respectively. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instrument [Abstract] | |
Schedule of derivative instruments | March 31, 2016 Derivative Assets Derivative Liabilities Notional Fair Value Notional Fair Value (dollars in thousands) Derivative instruments not designated as hedging instruments: Interest rate swap contracts - pay floating, receive fixed $ $ $ - $ - Interest rate swap contracts - pay fixed, receive floating - - Total $ $ $ $ |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Balance Sheet Offsetting [Abstract] | |
Schedule of financial instruments eligible for offsetting | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets Gross Amounts Recognized in the Consolidated Balance Sheets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Net Amount (dollars in thousands) March 31, 2016 Financial liabilities: Derivatives not designated as hedging instruments $ $ - $ $ - $ $ Total $ $ - $ $ - $ $ |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Nature of Operations (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | |
Financial instruments the Company measures at fair value on a recurring basis | ||
Total assets | $ 1,913,120 | $ 1,899,739 |
Nature of Operations | ||
Number of business segments | segment | 1 | |
All Non-United States countries | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Total assets | $ 0 | |
Revenue | $ 0 |
Fair Value of Assets and Liab35
Fair Value of Assets and Liabilities - Recurring (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | $ 441,705 | $ 450,935 |
Derivative Liability | 877 | |
Obligations of U.S. government agencies | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 45,353 | 47,318 |
Mortgage-backed securities - U.S. government sponsored entities and agencies | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 250,994 | 245,235 |
Mortgage-backed securities - Non-agency | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 33,256 | 34,317 |
State and municipal securities | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 101,783 | 108,406 |
Asset backed securities | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 10,263 | 15,627 |
Other investments | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 56 | 32 |
Assets At Fair Value | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 441,705 | 450,935 |
Assets At Fair Value | Interest rate swaps | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Derivative assets | 877 | |
Derivative Liability | 877 | |
Assets At Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 56 | 32 |
Assets At Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 441,649 | 450,903 |
Assets At Fair Value | Significant Other Observable Inputs (Level 2) | Interest rate swaps | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Derivative assets | 877 | |
Derivative Liability | 877 | |
Recurring basis | ||
Transfers between level 1 and level 2 | ||
Assets transfer from Level 1 to level 2 | 0 | 0 |
Assets transfer from Level 2 to level 1 | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Total assets measured on a recurring basis | 56 | 32 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other investments | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 56 | 32 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Total assets measured on a recurring basis | 442,526 | 450,903 |
Total liabilities measured on a recurring bases | 877 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of U.S. government agencies | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 45,353 | 47,318 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities - U.S. government sponsored entities and agencies | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 250,994 | 245,235 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities - Non-agency | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 33,256 | 34,317 |
Recurring basis | Significant Other Observable Inputs (Level 2) | State and municipal securities | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 101,783 | 108,406 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Asset backed securities | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 10,263 | 15,627 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Interest rate swaps | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Derivative assets | 877 | |
Derivative Liability | 877 | |
Recurring basis | Assets At Fair Value | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Total assets measured on a recurring basis | 442,582 | 450,935 |
Total liabilities measured on a recurring bases | 877 | |
Recurring basis | Assets At Fair Value | Obligations of U.S. government agencies | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 45,353 | 47,318 |
Recurring basis | Assets At Fair Value | Mortgage-backed securities - U.S. government sponsored entities and agencies | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 250,994 | 245,235 |
Recurring basis | Assets At Fair Value | Mortgage-backed securities - Non-agency | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 33,256 | 34,317 |
Recurring basis | Assets At Fair Value | State and municipal securities | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 101,783 | 108,406 |
Recurring basis | Assets At Fair Value | Asset backed securities | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 10,263 | 15,627 |
Recurring basis | Assets At Fair Value | Other investments | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Available-for-sale investments | 56 | 32 |
Recurring basis | Assets At Fair Value | Interest rate swaps | ||
Financial instruments the Company measures at fair value on a recurring basis | ||
Derivative assets | 877 | |
Derivative Liability | 877 | |
Non-recurring basis | ||
Transfers between level 1 and level 2 | ||
Assets transfer from Level 1 to level 2 | 0 | 0 |
Assets transfer from Level 2 to level 1 | $ 0 | $ 0 |
Fair Value of Assets and Liab36
Fair Value of Assets and Liabilities - Non-recurring (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Commercial real estate | ||
Total Losses for assets measured at fair value on a non-recurring basis | ||
Year to Date Losses/(Recoveries) on impaired loans | $ 217 | |
Recurring basis | ||
Transfers between level 1 and level 2 | ||
Assets transfer from Level 1 to level 2 | 0 | $ 0 |
Assets transfer from Level 2 to level 1 | 0 | 0 |
Non-recurring basis | ||
Total Losses for assets measured at fair value on a non-recurring basis | ||
Year to Date Losses/(Recoveries) | 217 | |
Transfers between level 1 and level 2 | ||
Assets transfer from Level 1 to level 2 | 0 | 0 |
Assets transfer from Level 2 to level 1 | 0 | $ 0 |
Non-recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Total assets measured on a non-recurring basis | 111 | |
Non-recurring basis | Significant Other Observable Inputs (Level 2) | Commercial real estate | ||
Assets | ||
Impaired loans | 111 | |
Non-recurring basis | Assets At Fair Value | ||
Assets | ||
Total assets measured on a non-recurring basis | 111 | |
Non-recurring basis | Assets At Fair Value | Commercial real estate | ||
Assets | ||
Impaired loans | $ 111 |
Fair Value of Assets and Liab37
Fair Value of Assets and Liabilities - Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Investment securities available for sale, at fair value | $ 441,705 | $ 450,935 |
Liabilities | ||
Non-interest bearing deposits | 524,025 | 514,559 |
Junior subordinated debentures | 10,485 | 10,438 |
Derivative Liability | 877 | |
Off-balance sheet instruments, commitments to extend credit and standby letters of credit, Notional Amount | 254,780 | 255,093 |
Off-balance sheet instruments, commitments to extend credit and standby letters of credit, Cost to Cede or Assume | 2,548 | 2,551 |
Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 53,575 | 69,923 |
Investment securities available for sale, at fair value | 441,705 | 450,935 |
Federal Home Loan Bank stock | 7,853 | 7,853 |
Loans receivable, net | 1,272,621 | 1,228,696 |
Loans held for sale | 6,560 | 9,755 |
Accrued interest receivable | 6,002 | 6,256 |
Liabilities | ||
Non-interest bearing deposits | 524,025 | 514,559 |
Interest bearing deposits | 1,058,564 | 1,050,402 |
Federal Home Loan Bank advances | 103,012 | 103,521 |
Junior subordinated debentures | 10,485 | 10,438 |
Accrued interest payable | 401 | 390 |
Assets At Fair Value | ||
Assets | ||
Cash and cash equivalents | 53,575 | 69,923 |
Investment securities available for sale, at fair value | 441,705 | 450,935 |
Loans receivable, net | 1,283,978 | 1,250,903 |
Loans held for sale | 6,560 | 9,755 |
Accrued interest receivable | 6,002 | 6,256 |
Liabilities | ||
Non-interest bearing deposits | 524,025 | 514,559 |
Interest bearing deposits | 1,058,428 | 1,051,731 |
Federal Home Loan Bank advances | 104,734 | 104,718 |
Junior subordinated debentures | 7,838 | 8,195 |
Accrued interest payable | 401 | 390 |
Assets At Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Cash and cash equivalents | 53,575 | 69,923 |
Investment securities available for sale, at fair value | 56 | 32 |
Liabilities | ||
Non-interest bearing deposits | 524,025 | 514,559 |
Assets At Fair Value | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Investment securities available for sale, at fair value | 441,649 | 450,903 |
Loans held for sale | 6,560 | 9,755 |
Accrued interest receivable | 2,181 | 2,589 |
Liabilities | ||
Interest bearing deposits | 1,058,428 | 1,051,731 |
Federal Home Loan Bank advances | 104,734 | 104,718 |
Accrued interest payable | 401 | 390 |
Assets At Fair Value | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Loans receivable, net | 1,283,978 | 1,250,903 |
Accrued interest receivable | 3,821 | 3,667 |
Liabilities | ||
Junior subordinated debentures | 7,838 | 8,195 |
Obligations of U.S. government agencies | ||
Assets | ||
Investment securities available for sale, at fair value | 45,353 | 47,318 |
Obligations of U.S. government agencies | Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Investment securities available for sale, at fair value | 45,353 | 47,318 |
Obligations of U.S. government agencies | Recurring basis | Assets At Fair Value | ||
Assets | ||
Investment securities available for sale, at fair value | 45,353 | 47,318 |
Mortgage-backed securities - U.S. government sponsored entities and agencies | ||
Assets | ||
Investment securities available for sale, at fair value | 250,994 | 245,235 |
Mortgage-backed securities - U.S. government sponsored entities and agencies | Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Investment securities available for sale, at fair value | 250,994 | 245,235 |
Mortgage-backed securities - U.S. government sponsored entities and agencies | Recurring basis | Assets At Fair Value | ||
Assets | ||
Investment securities available for sale, at fair value | 250,994 | 245,235 |
Mortgage-backed securities - Non-agency | ||
Assets | ||
Investment securities available for sale, at fair value | 33,256 | 34,317 |
Mortgage-backed securities - Non-agency | Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Investment securities available for sale, at fair value | 33,256 | 34,317 |
Mortgage-backed securities - Non-agency | Recurring basis | Assets At Fair Value | ||
Assets | ||
Investment securities available for sale, at fair value | 33,256 | 34,317 |
State and municipal securities | ||
Assets | ||
Investment securities available for sale, at fair value | 101,783 | 108,406 |
State and municipal securities | Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Investment securities available for sale, at fair value | 101,783 | 108,406 |
State and municipal securities | Recurring basis | Assets At Fair Value | ||
Assets | ||
Investment securities available for sale, at fair value | 101,783 | 108,406 |
Asset backed securities | ||
Assets | ||
Investment securities available for sale, at fair value | 10,263 | 15,627 |
Asset backed securities | Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Investment securities available for sale, at fair value | 10,263 | 15,627 |
Asset backed securities | Recurring basis | Assets At Fair Value | ||
Assets | ||
Investment securities available for sale, at fair value | 10,263 | 15,627 |
Other investments | ||
Assets | ||
Investment securities available for sale, at fair value | 56 | 32 |
Other investments | Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Investment securities available for sale, at fair value | 56 | 32 |
Other investments | Recurring basis | Assets At Fair Value | ||
Assets | ||
Investment securities available for sale, at fair value | 56 | $ 32 |
Interest rate swaps | Carrying Amount | ||
Assets | ||
Derivative Asset | 877 | |
Liabilities | ||
Derivative Liability | 877 | |
Interest rate swaps | Assets At Fair Value | ||
Assets | ||
Derivative Asset | 877 | |
Liabilities | ||
Derivative Liability | 877 | |
Interest rate swaps | Assets At Fair Value | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Derivative Asset | 877 | |
Liabilities | ||
Derivative Liability | 877 | |
Interest rate swaps | Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Derivative Asset | 877 | |
Liabilities | ||
Derivative Liability | 877 | |
Interest rate swaps | Recurring basis | Assets At Fair Value | ||
Assets | ||
Derivative Asset | 877 | |
Liabilities | ||
Derivative Liability | $ 877 |
Investment Securities - Fair Va
Investment Securities - Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ||
Total | $ 438,577 | $ 450,131 |
Gross Unrealized Gains | 5,483 | 4,741 |
Gross Unrealized Losses | (2,355) | (3,937) |
Fair Value | 441,705 | 450,935 |
Obligations of U.S. government agencies | ||
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ||
Total | 45,486 | 47,478 |
Gross Unrealized Gains | 247 | 269 |
Gross Unrealized Losses | (380) | (429) |
Fair Value | 45,353 | 47,318 |
Mortgage-backed securities - U.S. government sponsored entities and agencies | ||
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ||
Total | 250,950 | 246,561 |
Gross Unrealized Gains | 1,254 | 986 |
Gross Unrealized Losses | (1,210) | (2,312) |
Fair Value | 250,994 | 245,235 |
Mortgage-backed securities - Non-agency | ||
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ||
Total | 33,377 | 34,645 |
Gross Unrealized Gains | 80 | |
Gross Unrealized Losses | (201) | (328) |
Fair Value | 33,256 | 34,317 |
State and municipal securities | ||
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ||
Total | 97,977 | 105,164 |
Gross Unrealized Gains | 3,902 | 3,486 |
Gross Unrealized Losses | (96) | (244) |
Fair Value | 101,783 | 108,406 |
Asset backed securities | ||
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ||
Total | 10,687 | 16,183 |
Gross Unrealized Losses | (424) | (556) |
Fair Value | 10,263 | 15,627 |
Other investments | ||
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ||
Total | 100 | 100 |
Gross Unrealized Losses | (44) | (68) |
Fair Value | $ 56 | $ 32 |
Investment Securities - Unreali
Investment Securities - Unrealized Losses (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)security | Dec. 31, 2015USD ($)security | |
Investment securities | ||
Less Than Twelve Months, Fair Value | $ 122,810 | $ 213,195 |
Less Than Twelve Months, Unrealized Loss | (1,147) | (2,542) |
Twelve Months or More, Fair Value | 50,855 | 50,336 |
Twelve Months or More, Unrealized Loss | (1,208) | (1,395) |
Total, Fair Value | 173,665 | 263,531 |
Total, Unrealized Loss | $ (2,355) | $ (3,937) |
Securities in an unrealized loss position | ||
Securities in an unrealized loss position | security | 70 | 104 |
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 | $ 16,425 | $ 34,533 |
Less Than Twelve Months, Unrealized Loss | (129) | (429) |
Twelve Months or More, Fair Value | 16,671 | |
Twelve Months or More, Unrealized Loss | (251) | |
Total, Fair Value | 33,096 | 34,533 |
Total, Unrealized Loss | (380) | (429) |
Mortgage-backed securities - U.S. government sponsored entities and agencies | ||
Investment securities | ||
Less Than Twelve Months, Fair Value | 90,460 | 131,570 |
Less Than Twelve Months, Unrealized Loss | (770) | (1,485) |
Twelve Months or More, Fair Value | 17,901 | 31,558 |
Twelve Months or More, Unrealized Loss | (440) | (827) |
Total, Fair Value | 108,361 | 163,128 |
Total, Unrealized Loss | (1,210) | (2,312) |
Mortgage-backed securities - Non-agency | ||
Investment securities | ||
Less Than Twelve Months, Fair Value | 8,662 | 31,400 |
Less Than Twelve Months, Unrealized Loss | (108) | (317) |
Twelve Months or More, Fair Value | 6,020 | 2,917 |
Twelve Months or More, Unrealized Loss | (93) | (11) |
Total, Fair Value | 14,682 | 34,317 |
Total, Unrealized Loss | (201) | (328) |
State and municipal securities | ||
Investment securities | ||
Less Than Twelve Months, Fair Value | 7,207 | 15,660 |
Less Than Twelve Months, Unrealized Loss | (96) | (243) |
Twelve Months or More, Fair Value | 235 | |
Twelve Months or More, Unrealized Loss | (1) | |
Total, Fair Value | 7,207 | 15,895 |
Total, Unrealized Loss | (96) | (244) |
Asset backed securities | ||
Investment securities | ||
Twelve Months or More, Fair Value | 10,263 | 15,626 |
Twelve Months or More, Unrealized Loss | (424) | (556) |
Total, Fair Value | 10,263 | 15,626 |
Total, Unrealized Loss | (424) | (556) |
Other investments | ||
Investment securities | ||
Less Than Twelve Months, Fair Value | 56 | 32 |
Less Than Twelve Months, Unrealized Loss | (44) | (68) |
Total, Fair Value | 56 | 32 |
Total, Unrealized Loss | $ (44) | $ (68) |
Investment Securities - Proceed
Investment Securities - Proceeds (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Proceeds from the sales and calls of securities and the associated gains and losses | ||
Proceeds | $ 57,279 | $ 47,033 |
Gross gains | 871 | 679 |
Gross losses | (320) | (174) |
Income tax expense (benefit) related to net realized gains (losses) on sale of securities | $ 200 | $ 200 |
Investment Securities - MBS Mat
Investment Securities - MBS Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Available for sale securities, Amortized cost | ||
Due one year or less | $ 42,074 | $ 51,049 |
Due after one year through five years | 135,547 | 153,444 |
Due after five years through ten years | 170,078 | 182,996 |
Due after ten years | 90,878 | 62,642 |
Total | 438,577 | 450,131 |
Available for sale securities, Fair Value | ||
Due one year or less | 42,099 | 50,978 |
Due after one year through five years | 135,609 | 152,916 |
Due after five years through ten years | 173,405 | 184,870 |
Due after ten years | 90,592 | 62,171 |
Total | 441,705 | 450,935 |
Securities pledged to secure public deposits | ||
Available for sale securities, Amortized cost | ||
Total | 160,900 | 153,900 |
Available for sale securities, Fair Value | ||
Total | $ 163,900 | $ 155,200 |
Investment Securities - Investm
Investment Securities - Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings on both taxable and tax-exempt investment securities | ||
Total | $ 2,200 | $ 1,667 |
Obligations of U.S. government agencies | ||
Earnings on both taxable and tax-exempt investment securities | ||
Taxable earnings on investment securities | 138 | 135 |
Mortgage backed securities | ||
Earnings on both taxable and tax-exempt investment securities | ||
Taxable earnings on investment securities | 1,254 | 854 |
State and municipal securities | ||
Earnings on both taxable and tax-exempt investment securities | ||
Taxable earnings on investment securities | 187 | 62 |
Earnings on investment securities exempt from federal taxation | 579 | 569 |
Asset backed securities | ||
Earnings on both taxable and tax-exempt investment securities | ||
Taxable earnings on investment securities | $ 42 | $ 47 |
Loans and Allowance for Loan 43
Loans and Allowance for Loan and Lease Losses - Loan Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Outstanding loan balances | ||||
Total gross loans held for investment | $ 1,291,346 | $ 1,247,280 | ||
Deferred loan fees | (1,160) | (1,132) | ||
Allowance for loan and lease losses | (17,565) | $ (16,913) | (17,452) | $ (16,802) |
Net loans held for investment | 1,272,621 | 1,228,696 | ||
Loans held for sale | 6,560 | 9,755 | ||
Concentration of Credit Risk | ||||
Loan portfolio collateralized by various forms of real estate | 1,100 | 1,000 | ||
Pledged Loans | ||||
Loans pledged as collateral to FHLB | 656,900 | |||
FHLB secured credit facility | 453,100 | |||
FHLB secured line of credit | 10,200 | |||
Loans pledged as collateral | 5,000 | |||
Loans Serviced for Others | ||||
Unpaid principal balance of loans serviced for others, exclusive of SBA loans | 32,400 | 38,000 | ||
Unpaid principal balance of SBA loans serviced for others | 7,900 | 8,500 | ||
Accretable yield, or income expected to be collected | ||||
Balance at the beginning of the period | 3,821 | 4,374 | ||
Accretion of income | (216) | (678) | ||
Reclassifications from nonaccretable difference | 113 | 547 | ||
Balance at the end of the period | 3,718 | 4,243 | ||
Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 1,282,705 | 1,238,505 | ||
Deferred loan fees | (1,160) | (1,132) | ||
Allowance for loan and lease losses | (17,486) | (17,373) | ||
Net loans held for investment | 1,264,059 | 1,220,000 | ||
Loans held for sale | 6,560 | 9,755 | ||
PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 8,641 | 8,775 | ||
Allowance for loan and lease losses | (79) | (79) | ||
Net loans held for investment | 8,562 | 8,696 | ||
Unpaid Principal Balance | 10,825 | 11,107 | ||
Carrying Amount | 8,641 | 8,775 | ||
MISN | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 160,300 | |||
MISN | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 151,700 | 163,800 | ||
Land | ||||
Outstanding loan balances | ||||
Allowance for loan and lease losses | (2,044) | (2,000) | ||
Real Estate Secured | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 1,050,593 | 1,012,076 | ||
Real Estate Secured | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 1,044,089 | 1,005,536 | ||
Real Estate Secured | PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 6,504 | 6,540 | ||
Unpaid Principal Balance | 8,307 | 8,396 | ||
Carrying Amount | 6,504 | 6,540 | ||
Real Estate Secured | Commercial real estate | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 605,242 | 579,244 | ||
Real Estate Secured | Commercial real estate | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 599,581 | 573,559 | ||
Real Estate Secured | Commercial real estate | PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 5,661 | 5,685 | ||
Unpaid Principal Balance | 7,075 | 7,139 | ||
Carrying Amount | 5,661 | 5,685 | ||
Real Estate Secured | Residential 1 to 4 family | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 171,035 | 165,829 | ||
Real Estate Secured | Residential 1 to 4 family | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 170,459 | 165,256 | ||
Real Estate Secured | Residential 1 to 4 family | PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 576 | 573 | ||
Unpaid Principal Balance | 872 | 875 | ||
Carrying Amount | 576 | 573 | ||
Real Estate Secured | Farmland | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 129,787 | 120,566 | ||
Real Estate Secured | Farmland | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 129,787 | 120,566 | ||
Real Estate Secured | Multi-family residential | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 81,807 | 79,381 | ||
Real Estate Secured | Multi-family residential | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 81,807 | 79,381 | ||
Real Estate Secured | Construction and land | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 32,984 | 35,669 | ||
Real Estate Secured | Construction and land | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 32,717 | 35,387 | ||
Real Estate Secured | Construction and land | PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 267 | 282 | ||
Unpaid Principal Balance | 360 | 382 | ||
Carrying Amount | 267 | 282 | ||
Real Estate Secured | Home equity lines of credit | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 29,738 | 31,387 | ||
Real Estate Secured | Home equity lines of credit | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 29,738 | 31,387 | ||
Commercial | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 235,312 | 229,171 | ||
Allowance for loan and lease losses | (5,592) | $ (4,495) | (5,372) | $ (5,125) |
Commercial | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 233,175 | 226,936 | ||
Commercial | PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 2,137 | 2,235 | ||
Unpaid Principal Balance | 2,518 | 2,711 | ||
Carrying Amount | 2,137 | 2,235 | ||
Commercial | Commercial and industrial | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 169,366 | 164,808 | ||
Commercial | Commercial and industrial | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 168,683 | 164,025 | ||
Commercial | Commercial and industrial | PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 683 | 783 | ||
Unpaid Principal Balance | 1,018 | 1,211 | ||
Carrying Amount | 683 | 783 | ||
Commercial | Agriculture | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 65,946 | 64,363 | ||
Commercial | Agriculture | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 64,492 | 62,911 | ||
Commercial | Agriculture | PCI loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 1,454 | 1,452 | ||
Unpaid Principal Balance | 1,500 | 1,500 | ||
Carrying Amount | 1,454 | 1,452 | ||
Consumer | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | 5,441 | 6,033 | ||
Allowance for loan and lease losses | (159) | (173) | ||
Consumer | Non-PCI Loans | ||||
Outstanding loan balances | ||||
Total gross loans held for investment | $ 5,441 | $ 6,033 |
Loans and Allowance for Loan 44
Loans and Allowance for Loan and Lease Losses - Impaired Loans (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)loan | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Investment in impaired loans | |||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | $ 200 | $ 200 | |
Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 14,257 | $ 13,524 | |
Recorded investment with related allowance | 3,130 | 2,779 | |
Unpaid principal balance without related allowance | 20,756 | 20,006 | |
Unpaid principal balance with related allowance | 3,413 | 3,037 | |
Specific Allowance for Impaired Loans | 367 | 254 | |
Average recorded investment without related allowance | 13,954 | 10,724 | |
Average recorded investment with related allowance | 2,891 | 6,916 | |
Interest income recognized without related allowance | 125 | 83 | |
Interest income recognized with related allowance | 36 | 28 | |
Recorded Investment | 17,387 | 16,303 | |
Unpaid Principal Balance | 24,169 | 23,043 | |
Average Recorded Investment | 16,845 | 17,640 | |
Interest Income Recognized | 161 | 111 | |
PCI loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 7,467 | 7,531 | |
Recorded investment with related allowance | 1,174 | 1,244 | |
Unpaid principal balance without related allowance | 9,644 | 9,840 | |
Unpaid principal balance with related allowance | 1,181 | 1,267 | |
Specific Allowance for Impaired Loans | 79 | 79 | |
Average recorded investment without related allowance | 7,511 | 8,010 | |
Average recorded investment with related allowance | 1,197 | 2,107 | |
Interest income recognized without related allowance | 195 | 637 | |
Interest income recognized with related allowance | 21 | 41 | |
Recorded Investment | 8,641 | 8,775 | |
Unpaid Principal Balance | 10,825 | 11,107 | |
Average Recorded Investment | 8,708 | 10,117 | |
Interest Income Recognized | $ 216 | 678 | |
Residential 1 to 4 family | |||
Foreclosures | |||
Number of foreclosures | loan | 0 | ||
Foreclosed assets | $ 0 | ||
Real Estate Secured | Commercial real estate | Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 5,297 | 3,855 | |
Recorded investment with related allowance | 423 | 435 | |
Unpaid principal balance without related allowance | 9,823 | 5,328 | |
Unpaid principal balance with related allowance | 661 | 665 | |
Specific Allowance for Impaired Loans | 65 | 59 | |
Average recorded investment without related allowance | 5,218 | 4,069 | |
Average recorded investment with related allowance | 429 | 491 | |
Interest income recognized without related allowance | 23 | 36 | |
Interest income recognized with related allowance | 4 | ||
Real Estate Secured | Commercial real estate | PCI loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 5,137 | 5,156 | |
Recorded investment with related allowance | 524 | 229 | |
Unpaid principal balance without related allowance | 6,545 | 6,601 | |
Unpaid principal balance with related allowance | 530 | 230 | |
Specific Allowance for Impaired Loans | 41 | 5 | |
Average recorded investment without related allowance | 5,146 | 4,916 | |
Average recorded investment with related allowance | 527 | 290 | |
Interest income recognized without related allowance | 122 | 547 | |
Interest income recognized with related allowance | 10 | 5 | |
Real Estate Secured | Residential 1 to 4 family | Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 944 | 694 | |
Unpaid principal balance without related allowance | 948 | 860 | |
Average recorded investment without related allowance | 765 | 457 | |
Interest income recognized without related allowance | 12 | ||
Real Estate Secured | Residential 1 to 4 family | PCI loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 576 | 573 | |
Recorded investment with related allowance | 529 | ||
Unpaid principal balance without related allowance | 872 | 875 | |
Unpaid principal balance with related allowance | 538 | ||
Specific Allowance for Impaired Loans | 41 | ||
Average recorded investment without related allowance | 574 | 451 | |
Average recorded investment with related allowance | 1,025 | ||
Interest income recognized without related allowance | 18 | 12 | |
Interest income recognized with related allowance | 22 | ||
Real Estate Secured | Construction and land | Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 3,794 | 5,138 | |
Unpaid principal balance without related allowance | 5,275 | 9,615 | |
Average recorded investment without related allowance | 3,825 | 1,407 | |
Interest income recognized without related allowance | 31 | 20 | |
Real Estate Secured | Construction and land | PCI loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 56 | 53 | |
Recorded investment with related allowance | 211 | ||
Unpaid principal balance without related allowance | 148 | 152 | |
Unpaid principal balance with related allowance | 212 | ||
Specific Allowance for Impaired Loans | 6 | ||
Average recorded investment without related allowance | 55 | 558 | |
Average recorded investment with related allowance | 220 | 114 | |
Interest income recognized without related allowance | 9 | 18 | |
Interest income recognized with related allowance | 4 | 3 | |
Real Estate Secured | Farmland | Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 281 | 587 | |
Unpaid principal balance without related allowance | 435 | 588 | |
Average recorded investment without related allowance | 488 | 281 | |
Interest income recognized without related allowance | 5 | 3 | |
Real Estate Secured | Land | Non-PCI Loans | |||
Investment in impaired loans | |||
Average recorded investment with related allowance | 4,844 | ||
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 | 85 | |
Unpaid principal balance without related allowance | 46 | 86 | |
Average recorded investment without related allowance | 65 | 152 | |
Commercial | Agriculture | Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 856 | 724 | |
Recorded investment with related allowance | 384 | 400 | |
Unpaid principal balance without related allowance | 947 | 815 | |
Unpaid principal balance with related allowance | 388 | 400 | |
Specific Allowance for Impaired Loans | 63 | 39 | |
Average recorded investment without related allowance | 790 | 1,139 | |
Average recorded investment with related allowance | 392 | ||
Interest income recognized without related allowance | 9 | 13 | |
Interest income recognized with related allowance | 3 | ||
Commercial | Agriculture | PCI loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 1,454 | 1,452 | |
Unpaid principal balance without related allowance | 1,500 | 1,500 | |
Average recorded investment without related allowance | 1,453 | 1,433 | |
Interest income recognized without related allowance | 27 | 29 | |
Commercial | Commercial and industrial | Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 2,896 | 2,295 | |
Recorded investment with related allowance | 2,323 | 1,944 | |
Unpaid principal balance without related allowance | 3,123 | 2,510 | |
Unpaid principal balance with related allowance | 2,364 | 1,972 | |
Specific Allowance for Impaired Loans | 239 | 156 | |
Average recorded investment without related allowance | 2,659 | 3,082 | |
Average recorded investment with related allowance | 2,070 | 1,581 | |
Interest income recognized without related allowance | 44 | 10 | |
Interest income recognized with related allowance | 29 | 25 | |
Commercial | Commercial and industrial | PCI loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 244 | 297 | |
Recorded investment with related allowance | 439 | 486 | |
Unpaid principal balance without related allowance | 579 | 712 | |
Unpaid principal balance with related allowance | 439 | 499 | |
Specific Allowance for Impaired Loans | 32 | 33 | |
Average recorded investment without related allowance | 283 | 652 | |
Average recorded investment with related allowance | 450 | 678 | |
Interest income recognized without related allowance | 19 | 31 | |
Interest income recognized with related allowance | 7 | 11 | |
Consumer | Non-PCI Loans | |||
Investment in impaired loans | |||
Recorded investment without related allowance | 143 | 146 | |
Unpaid principal balance without related allowance | 159 | $ 204 | |
Average recorded investment without related allowance | 144 | 137 | |
Interest income recognized without related allowance | $ 1 | $ 1 |
Loans and Allowance for Loan 45
Loans and Allowance for Loan and Lease Losses - TDRs (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)item | Mar. 31, 2015USD ($)item | Dec. 31, 2015USD ($) | |
Troubled debt restructurings | |||
Allowance for credit losses of receivables, identified as TDRs under the newly adopted provisions | $ 400 | ||
Accruing loans that were classified as TDRs | 10,715 | $ 10,056 | |
Non-Accruing loans that were classified as TDRs | 6,128 | 6,203 | |
Total loans classified as TDRs | $ 16,843 | 16,259 | |
Number of TDRs | item | 9 | 11 | |
Pre-Modification Outstanding Recorded Investment | $ 1,355 | $ 2,240 | |
Post-Modification Outstanding Recorded Investment | $ 1,355 | $ 2,240 | |
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 | $ 9,303 | 8,619 | |
Non-Accruing loans that were classified as TDRs | 6,052 | 6,091 | |
Total loans classified as TDRs | $ 15,355 | 14,710 | |
Troubled Debt Restructurings That Subsequently Defaulted | |||
Number of TDRs | item | 1 | 1 | |
Recorded Investment | $ 80 | $ 18 | |
Non-PCI Loans | Real Estate Secured | Commercial real estate | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 2,635 | 2,395 | |
Non-Accruing loans that were classified as TDRs | 135 | 435 | |
Total loans classified as TDRs | 2,770 | 2,830 | |
Number of TDRs | item | 3 | ||
Pre-Modification Outstanding Recorded Investment | $ 564 | ||
Post-Modification Outstanding Recorded Investment | $ 564 | ||
Non-PCI Loans | Real Estate Secured | Construction and land | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 1,033 | 1,171 | |
Non-Accruing loans that were classified as TDRs | 3,914 | 3,968 | |
Total loans classified as TDRs | 4,947 | 5,139 | |
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 281 | 613 | |
Non-Accruing loans that were classified as TDRs | 81 | ||
Total loans classified as TDRs | $ 281 | 694 | |
Number of TDRs | item | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 534 | ||
Post-Modification Outstanding Recorded Investment | $ 534 | ||
Troubled Debt Restructurings That Subsequently Defaulted | |||
Number of TDRs | item | 1 | ||
Recorded Investment | $ 80 | ||
Non-PCI Loans | Real Estate Secured | Farmland | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 865 | 504 | |
Non-Accruing loans that were classified as TDRs | 80 | 82 | |
Total loans classified as TDRs | 945 | 586 | |
Non-PCI Loans | Commercial | Commercial and industrial | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 3,521 | 2,698 | |
Non-Accruing loans that were classified as TDRs | 1,530 | 1,515 | |
Total loans classified as TDRs | $ 5,051 | 4,213 | |
Number of TDRs | item | 8 | 4 | |
Pre-Modification Outstanding Recorded Investment | $ 1,345 | $ 187 | |
Post-Modification Outstanding Recorded Investment | 1,345 | $ 187 | |
Troubled Debt Restructurings That Subsequently Defaulted | |||
Number of TDRs | item | 1 | ||
Recorded Investment | $ 18 | ||
Non-PCI Loans | Commercial | Agriculture | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 856 | 1,124 | |
Non-Accruing loans that were classified as TDRs | 384 | ||
Total loans classified as TDRs | $ 1,240 | 1,124 | |
Number of TDRs | item | 1 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 10 | $ 898 | |
Post-Modification Outstanding Recorded Investment | 10 | $ 898 | |
Non-PCI Loans | Consumer | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 112 | 114 | |
Non-Accruing loans that were classified as TDRs | 9 | 10 | |
Total loans classified as TDRs | 121 | 124 | |
Number of TDRs | item | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 57 | ||
Post-Modification Outstanding Recorded Investment | $ 57 | ||
PCI loans | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 1,412 | 1,437 | |
Non-Accruing loans that were classified as TDRs | 76 | 112 | |
Total loans classified as TDRs | 1,488 | 1,549 | |
PCI loans | Real Estate Secured | Commercial real estate | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 917 | 922 | |
Non-Accruing loans that were classified as TDRs | 38 | 46 | |
Total loans classified as TDRs | 955 | 968 | |
PCI loans | Real Estate Secured | Construction and land | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 56 | 54 | |
Total loans classified as TDRs | 56 | 54 | |
PCI loans | Commercial | Commercial and industrial | |||
Troubled debt restructurings | |||
Accruing loans that were classified as TDRs | 439 | 461 | |
Non-Accruing loans that were classified as TDRs | 38 | 66 | |
Total loans classified as TDRs | $ 477 | $ 527 |
Loans and Allowance for Loan 46
Loans and Allowance for Loan and Lease Losses - ALLL Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 15 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2016 | |
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | $ 17,452 | $ 16,802 | $ 16,802 | $ 16,802 |
Charge-offs | (10) | (73) | ||
Recoveries | 123 | 184 | ||
Balance, at the end of the period | 17,565 | 16,913 | 17,452 | 17,565 |
Amount of allowance attributed to: | ||||
Allowance for loan and lease losses individually evaluated for impairment | 367 | 254 | 367 | |
Allowance for loan and lease losses collectively evaluated for impairment | 17,119 | 17,119 | 17,119 | |
Allowance for Loans acquired with deteriorated credit quality | 79 | 79 | 79 | |
Recorded investment in loan individually evaluated for impairment | 17,387 | 16,303 | 17,387 | |
Recorded investment in loan collectively evaluated for impairment | 1,265,318 | 1,222,202 | 1,265,318 | |
Recorded investment in loans acquired with deteriorated credit quality | 8,641 | 8,775 | 8,641 | |
Total gross loans held for investment | 1,291,346 | 1,247,280 | 1,291,346 | |
Reserve for off-balance sheet commitments | 500 | |||
Non-PCI Loans | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | 17,373 | |||
Balance, at the end of the period | 17,486 | 17,373 | 17,486 | |
Amount of allowance attributed to: | ||||
Total gross loans held for investment | 1,282,705 | 1,238,505 | 1,282,705 | |
PCI loans | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | 79 | |||
Balance, at the end of the period | 79 | 79 | 79 | |
Amount of allowance attributed to: | ||||
Total gross loans held for investment | 8,641 | 8,775 | 8,641 | |
Allowance for losses on acquired loans and leases | 100 | 100 | ||
MISN | ||||
Amount of allowance attributed to: | ||||
Total gross loans held for investment | 160,300 | 160,300 | ||
MISN | Non-PCI Loans | ||||
Amount of allowance attributed to: | ||||
Total gross loans held for investment | 151,700 | 163,800 | 151,700 | |
Allowance for losses on acquired loans and leases | 200 | 200 | ||
Commercial | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | 5,372 | 5,125 | 5,125 | 5,125 |
Charge-offs | (8) | |||
Recoveries | 101 | 167 | ||
Provision for loan and lease losses | 127 | (797) | ||
Balance, at the end of the period | 5,592 | 4,495 | 5,372 | 5,592 |
Amount of allowance attributed to: | ||||
Allowance for loan and lease losses individually evaluated for impairment | 302 | 195 | 302 | |
Allowance for loan and lease losses collectively evaluated for impairment | 5,258 | 5,144 | 5,258 | |
Allowance for Loans acquired with deteriorated credit quality | 32 | 33 | 32 | |
Recorded investment in loan individually evaluated for impairment | 6,459 | 5,363 | 6,459 | |
Recorded investment in loan collectively evaluated for impairment | 226,716 | 221,573 | 226,716 | |
Recorded investment in loans acquired with deteriorated credit quality | 2,137 | 2,235 | 2,137 | |
Total gross loans held for investment | 235,312 | 229,171 | 235,312 | |
Commercial | Non-PCI Loans | ||||
Amount of allowance attributed to: | ||||
Total gross loans held for investment | 233,175 | 226,936 | 233,175 | |
Commercial | PCI loans | ||||
Amount of allowance attributed to: | ||||
Total gross loans held for investment | 2,137 | 2,235 | 2,137 | |
Installment | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | 202 | 202 | 202 | |
Recoveries | 3 | |||
Provision for loan and lease losses | (15) | |||
Balance, at the end of the period | 190 | |||
Construction and land | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | 623 | |||
Recoveries | 13 | |||
Provision for loan and lease losses | (78) | |||
Balance, at the end of the period | 558 | 623 | 558 | |
Amount of allowance attributed to: | ||||
Allowance for loan and lease losses collectively evaluated for impairment | 618 | |||
Allowance for Loans acquired with deteriorated credit quality | 5 | |||
Recorded investment in loan individually evaluated for impairment | 5,138 | |||
Recorded investment in loan collectively evaluated for impairment | 30,249 | |||
Recorded investment in loans acquired with deteriorated credit quality | 282 | |||
Consumer | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | 173 | |||
Charge-offs | (2) | |||
Recoveries | 4 | |||
Provision for loan and lease losses | (16) | |||
Balance, at the end of the period | 159 | 173 | 159 | |
Amount of allowance attributed to: | ||||
Allowance for loan and lease losses collectively evaluated for impairment | 159 | 173 | 159 | |
Recorded investment in loan individually evaluated for impairment | 143 | 146 | 143 | |
Recorded investment in loan collectively evaluated for impairment | 5,298 | 5,887 | 5,298 | |
Total gross loans held for investment | 5,441 | 6,033 | 5,441 | |
Consumer | Non-PCI Loans | ||||
Amount of allowance attributed to: | ||||
Total gross loans held for investment | 5,441 | 6,033 | 5,441 | |
Unallocated | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | 123 | 346 | 346 | 346 |
Provision for loan and lease losses | 302 | 464 | ||
Balance, at the end of the period | 425 | 810 | 123 | 425 |
Amount of allowance attributed to: | ||||
Allowance for loan and lease losses collectively evaluated for impairment | 425 | 123 | 425 | |
Other real estate secured | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | 11,161 | 9,129 | 9,129 | 9,129 |
Charge-offs | (39) | |||
Recoveries | 5 | |||
Adjustments | 3 | |||
Provision for loan and lease losses | (335) | 281 | ||
Balance, at the end of the period | 10,831 | 9,374 | 11,161 | 10,831 |
Amount of allowance attributed to: | ||||
Allowance for loan and lease losses individually evaluated for impairment | 65 | 59 | 65 | |
Allowance for loan and lease losses collectively evaluated for impairment | 10,725 | 11,061 | 10,725 | |
Allowance for Loans acquired with deteriorated credit quality | 41 | 41 | 41 | |
Recorded investment in loan individually evaluated for impairment | 5,488 | 5,656 | 5,488 | |
Recorded investment in loan collectively evaluated for impairment | 1,005,884 | 964,493 | 1,005,884 | |
Recorded investment in loans acquired with deteriorated credit quality | 6,237 | 6,258 | 6,237 | |
Provision for loan losses, transfer from C&I to Land related to the re-characterization of a loan as part of a TDR | 3 | |||
Land | ||||
Allocation of the allowance to various segments in the loan portfolio | ||||
Balance, at the beginning of the period | 2,000 | $ 2,000 | 2,000 | |
Charge-offs | (34) | |||
Recoveries | 11 | |||
Provision for loan and lease losses | 67 | |||
Balance, at the end of the period | $ 2,044 | |||
Land | Construction and land | ||||
Amount of allowance attributed to: | ||||
Allowance for loan and lease losses collectively evaluated for impairment | 552 | 552 | ||
Allowance for Loans acquired with deteriorated credit quality | 6 | 6 | ||
Recorded investment in loan individually evaluated for impairment | 5,297 | 5,297 | ||
Recorded investment in loan collectively evaluated for impairment | 27,420 | 27,420 | ||
Recorded investment in loans acquired with deteriorated credit quality | $ 267 | $ 267 |
Loans and Allowance for Loan 47
Loans and Allowance for Loan and Lease Losses - Credit Quality (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | $ 1,291,346 | $ 1,247,280 |
Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,232,959 | 1,190,282 |
Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 14,943 | 12,048 |
Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 43,444 | 44,950 |
Real Estate Secured | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,050,593 | 1,012,076 |
Real Estate Secured | Commercial real estate | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 605,242 | 579,244 |
Real Estate Secured | Residential 1 to 4 family | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 171,035 | 165,829 |
Real Estate Secured | Farmland | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 129,787 | 120,566 |
Real Estate Secured | Multi-family residential | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 81,807 | 79,381 |
Real Estate Secured | Construction and land | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 32,984 | 35,669 |
Real Estate Secured | Home equity lines of credit | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 29,738 | 31,387 |
Commercial | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 235,312 | 229,171 |
Commercial | Commercial and industrial | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 169,366 | 164,808 |
Commercial | Agriculture | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 65,946 | 64,363 |
Consumer | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 5,441 | 6,033 |
Non-PCI Loans | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,282,705 | 1,238,505 |
Non-PCI Loans | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,231,950 | 1,189,524 |
Non-PCI Loans | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 12,576 | 10,819 |
Non-PCI Loans | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 38,179 | 38,162 |
Non-PCI Loans | Real Estate Secured | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,044,089 | 1,005,536 |
Non-PCI Loans | Real Estate Secured | Commercial real estate | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 599,581 | 573,559 |
Non-PCI Loans | Real Estate Secured | Commercial real estate | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 577,323 | 545,614 |
Non-PCI Loans | Real Estate Secured | Commercial real estate | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 5,981 | 4,402 |
Non-PCI Loans | Real Estate Secured | Commercial real estate | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 16,277 | 23,543 |
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 170,459 | 165,256 |
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 | 169,843 | 164,226 |
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 | 105 | 405 |
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 | 511 | 625 |
Non-PCI Loans | Real Estate Secured | Farmland | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 129,787 | 120,566 |
Non-PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 127,456 | 118,740 |
Non-PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 774 | 245 |
Non-PCI Loans | Real Estate Secured | Farmland | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,557 | 1,581 |
Non-PCI Loans | Real Estate Secured | Multi-family residential | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 81,807 | 79,381 |
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 | 81,807 | 79,381 |
Non-PCI Loans | Real Estate Secured | Construction and land | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 32,717 | 35,387 |
Non-PCI Loans | Real Estate Secured | Construction and land | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 27,391 | 30,219 |
Non-PCI Loans | Real Estate Secured | Construction and land | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 910 | 939 |
Non-PCI Loans | Real Estate Secured | Construction and land | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 4,416 | 4,229 |
Non-PCI Loans | Real Estate Secured | Home equity lines of credit | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 29,738 | 31,387 |
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 | 29,456 | 31,103 |
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 | 282 | 284 |
Non-PCI Loans | Commercial | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 233,175 | 226,936 |
Non-PCI Loans | Commercial | Commercial and industrial | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 168,683 | 164,025 |
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 154,999 | 152,979 |
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 4,236 | 4,730 |
Non-PCI Loans | Commercial | Commercial and industrial | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 9,448 | 6,316 |
Non-PCI Loans | Commercial | Agriculture | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 64,492 | 62,911 |
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 58,347 | 61,340 |
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 557 | 98 |
Non-PCI Loans | Commercial | Agriculture | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 5,588 | 1,473 |
Non-PCI Loans | Consumer | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 5,441 | 6,033 |
Non-PCI Loans | Consumer | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 5,328 | 5,922 |
Non-PCI Loans | Consumer | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 13 | |
Non-PCI Loans | Consumer | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 100 | 111 |
PCI loans | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 8,641 | 8,775 |
PCI loans | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,009 | 758 |
PCI loans | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 2,367 | 1,229 |
PCI loans | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 5,265 | 6,788 |
PCI loans | Real Estate Secured | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 6,504 | 6,540 |
PCI loans | Real Estate Secured | Commercial real estate | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 5,661 | 5,685 |
PCI loans | Real Estate Secured | Commercial real estate | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 155 | |
PCI loans | Real Estate Secured | Commercial real estate | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 2,225 | 1,094 |
PCI loans | Real Estate Secured | Commercial real estate | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 3,281 | 4,591 |
PCI loans | Real Estate Secured | Residential 1 to 4 family | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 576 | 573 |
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 | 456 | 455 |
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 | 120 | |
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 | 118 | |
PCI loans | Real Estate Secured | Construction and land | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 267 | 282 |
PCI loans | Real Estate Secured | Construction and land | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 267 | 228 |
PCI loans | Real Estate Secured | Construction and land | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 54 | |
PCI loans | Commercial | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 2,137 | 2,235 |
PCI loans | Commercial | Commercial and industrial | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 683 | 783 |
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Pass | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 131 | 75 |
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Special Mention | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 22 | 81 |
PCI loans | Commercial | Commercial and industrial | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 530 | 627 |
PCI loans | Commercial | Agriculture | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | 1,454 | 1,452 |
PCI loans | Commercial | Agriculture | Credit Risk Grades, Substandard | ||
Non-PCI loans by the internal risk grading system | ||
Total Gross loans | $ 1,454 | $ 1,452 |
Loans and Allowance for Loan 48
Loans and Allowance for Loan and Lease Losses - Aging (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Aging of loans held for investment | ||
Current | $ 1,283,144 | $ 1,239,201 |
30-59 | 32 | 66 |
60-89 | 195 | |
Non-Accruing | 8,170 | 7,818 |
Total | 1,291,346 | 1,247,280 |
Non-PCI Loans | ||
Aging of loans held for investment | ||
Current | 1,274,610 | 1,230,561 |
30-59 | 11 | 66 |
60-89 | 195 | |
Non-Accruing | 8,084 | 7,683 |
Total | 1,282,705 | 1,238,505 |
Non-PCI Loans | Real Estate Secured | Commercial real estate | ||
Aging of loans held for investment | ||
Current | 598,000 | 571,665 |
Non-Accruing | 1,581 | 1,894 |
Total | 599,581 | 573,559 |
Non-PCI Loans | Real Estate Secured | Residential 1 to 4 family | ||
Aging of loans held for investment | ||
Current | 170,459 | 165,176 |
Non-Accruing | 80 | |
Total | 170,459 | 165,256 |
Non-PCI Loans | Real Estate Secured | Farmland | ||
Aging of loans held for investment | ||
Current | 129,707 | 120,483 |
Non-Accruing | 80 | 83 |
Total | 129,787 | 120,566 |
Non-PCI Loans | Real Estate Secured | Multi-family residential | ||
Aging of loans held for investment | ||
Current | 81,807 | 79,381 |
Total | 81,807 | 79,381 |
Non-PCI Loans | Real Estate Secured | Construction and land | ||
Aging of loans held for investment | ||
Current | 28,453 | 31,419 |
Non-Accruing | 4,264 | 3,968 |
Total | 32,717 | 35,387 |
Non-PCI Loans | Real Estate Secured | Home equity lines of credit | ||
Aging of loans held for investment | ||
Current | 29,692 | 31,303 |
Non-Accruing | 46 | 84 |
Total | 29,738 | 31,387 |
Non-PCI Loans | Commercial | Commercial and industrial | ||
Aging of loans held for investment | ||
Current | 166,974 | 162,223 |
30-59 | 11 | 66 |
60-89 | 195 | |
Non-Accruing | 1,698 | 1,541 |
Total | 168,683 | 164,025 |
Non-PCI Loans | Commercial | Agriculture | ||
Aging of loans held for investment | ||
Current | 64,108 | 62,911 |
Non-Accruing | 384 | |
Total | 64,492 | 62,911 |
Non-PCI Loans | Consumer | ||
Aging of loans held for investment | ||
Current | 5,410 | 6,000 |
Non-Accruing | 31 | 33 |
Total | 5,441 | 6,033 |
PCI loans | ||
Aging of loans held for investment | ||
Current | 8,534 | 8,640 |
30-59 | 21 | |
Non-Accruing | 86 | 135 |
Total | 8,641 | 8,775 |
PCI loans | Real Estate Secured | Commercial real estate | ||
Aging of loans held for investment | ||
Current | 5,622 | 5,639 |
Non-Accruing | 39 | 46 |
Total | 5,661 | 5,685 |
PCI loans | Real Estate Secured | Residential 1 to 4 family | ||
Aging of loans held for investment | ||
Current | 267 | 282 |
Total | 267 | 282 |
PCI loans | Real Estate Secured | Land | ||
Aging of loans held for investment | ||
Current | 576 | |
Total | 576 | |
PCI loans | Real Estate Secured | Construction and land | ||
Aging of loans held for investment | ||
Current | 573 | |
Total | 573 | |
PCI loans | Commercial | Commercial and industrial | ||
Aging of loans held for investment | ||
Current | 615 | 694 |
30-59 | 21 | |
Non-Accruing | 47 | 89 |
Total | 683 | 783 |
PCI loans | Commercial | Agriculture | ||
Aging of loans held for investment | ||
Current | 1,454 | 1,452 |
Total | 1,454 | 1,452 |
Current | ||
Aging of loans held for investment | ||
Non-Accruing | 6,300 | 6,400 |
30 to 59 Days Past Due | ||
Aging of loans held for investment | ||
Non-Accruing | 85,000 | 28,000 |
60 to 89 Days Past Due | ||
Aging of loans held for investment | ||
Non-Accruing | 118,000 | 26,000 |
90+ Days Past Due | ||
Aging of loans held for investment | ||
Non-Accruing | $ 1,700 | $ 1,400 |
Income Taxes - 10Q (Details)
Income Taxes - 10Q (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Income Taxes | ||
Deferred tax valuation allowance | $ 0 | $ 0 |
Deferred tax assets | 18,715 | $ 21,272 |
Loss of NOL utilization | $ 0 |
Goodwill and Other Intangible50
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Core deposit intangible | |||
Gross Carrying Amount | $ 9,261 | ||
Accumulated Amortization | (5,206) | ||
Net Carrying Amount | 4,055 | ||
Estimated Amortization | |||
Year 2,016 | (944) | ||
Year 2,017 | (588) | ||
Year 2,018 | (549) | ||
Year 2,019 | (522) | ||
Year 2,020 | (441) | ||
Year 2,021 | (419) | ||
Goodwill | 24,885 | $ 24,885 | |
Amortization of Intangible Assets | 243 | $ 262 | |
Year 2,016 | |||
Core deposit intangible | |||
Net Carrying Amount | 3,354 | 4,298 | |
Year 2,017 | |||
Core deposit intangible | |||
Net Carrying Amount | 2,766 | 3,354 | |
Year 2,018 | |||
Core deposit intangible | |||
Net Carrying Amount | 2,217 | 2,766 | |
Year 2,019 | |||
Core deposit intangible | |||
Net Carrying Amount | 1,695 | 2,217 | |
Year 2,020 | |||
Core deposit intangible | |||
Net Carrying Amount | 1,254 | 1,695 | |
Year 2,021 | |||
Core deposit intangible | |||
Net Carrying Amount | $ 835 | $ 1,254 |
Share-based Compensation Plan51
Share-based Compensation Plans (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)plan$ / sharesshares | Mar. 31, 2015USD ($)$ / shares | Dec. 31, 2015planshares | |
Summary of the expenses the Company has recognized related to share-based compensation | |||
Aggregate number of shares that may be granted during any calendar year per individual | 250,000 | ||
Share-based compensation expense | $ | $ 207 | $ 241 | |
Unrecognized compensation expense | $ | 1,574 | 2,374 | |
Aggregate intrinsic value of options exercised | |||
Income tax benefit recognized related to share-based compensation | $ | $ 2,000 | $ 27,000 | |
Weighted-average period over which expense is expected to be recognized | 2 years 7 months 6 days | 1 year 9 months 18 days | |
2015 Equity Incentive Plan | |||
Summary of the expenses the Company has recognized related to share-based compensation | |||
Number of share-based employee compensation plans | plan | 1 | ||
1997 Stock Option Plan and 2005 Equity Based Compensation Plan | |||
Summary of the expenses the Company has recognized related to share-based compensation | |||
Number of share-based employee compensation plans | plan | 2 | ||
Number of Shares | |||
Granted (in shares) | 0 | ||
Maximum | 2015 Equity Incentive Plan | |||
Summary of the expenses the Company has recognized related to share-based compensation | |||
Maximum number of shares that may be issued | 2,500,000 | ||
Stock options | |||
Summary of the expenses the Company has recognized related to share-based compensation | |||
Share-based compensation expense | $ | $ 123 | $ 112 | |
Unrecognized compensation expense | $ | $ 894 | $ 1,310 | |
Assumptions used in the calculation of the weighted average fair value of options granted | |||
Expected volatility (as a percent) | 31.85% | 38.17% | |
Expected term | 5 years | 5 years | |
Dividend yield (as a percent) | 3.30% | 2.55% | |
Risk free rate (as a percent) | 1.31% | 1.57% | |
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 1.50 | $ 2.17 | |
Number of shares | |||
Options Available for Grant (in shares) | 2,182,814 | 2,228,601 | |
Options outstanding, at the beginning of the period (in shares) | 932,553 | ||
Granted (in shares) | 36,022 | ||
Forfeited (in shares) | (11,503) | ||
Exercised (in shares) | (6,830) | ||
Options outstanding, at the end of the period (in shares) | 950,242 | ||
Weighted Average Exercise Price | |||
Options outstanding, at the beginning of the period (in dollars per share) | $ / shares | $ 7.19 | ||
Granted (in dollars per share) | $ / shares | 7.27 | ||
Forfeited (in dollars per share) | $ / shares | 7.05 | ||
Exercised (in dollars per share) | $ / shares | 6.02 | ||
Options outstanding, at the end of the period (in dollars per share) | $ / shares | $ 7.21 | ||
Options vested or expected to vest | |||
Shares | 909,224 | ||
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 7.19 | ||
Weighted Average Remaining Contractual Life | 7 years 6 months 7 days | ||
Aggregate Intrinsic Value | $ | $ 1,021,124 | ||
Options exercisable | |||
Shares | 431,405 | ||
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 7.02 | ||
Weighted Average Remaining Contractual Life | 6 years 2 months 1 day | ||
Aggregate Intrinsic Value | $ | $ 715,577 | ||
Aggregate intrinsic value of options exercised | |||
Total intrinsic value of options exercised | $ | 138,000 | ||
Income tax benefit recognized related to share-based compensation | $ | $ 2,000 | ||
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 | $ | $ 84 | $ 129 | |
Unrecognized compensation expense | $ | $ 680 | $ 1,064 | |
Number of Shares | |||
Balance at the beginning of the period (in shares) | 162,394 | ||
Granted (in shares) | 5,914 | ||
Vested (in shares) | (18,439) | ||
Forfeited (in shares) | (10,163) | ||
Balance at the end of the period (in shares) | 139,706 | ||
Average Grant Date fair Value | |||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 7.30 | ||
Granted (in dollars per share) | $ / shares | 7.27 | ||
Vested (in dollars per share) | $ / shares | 7.74 | ||
Forfeited (in dollars per share) | $ / shares | 7.71 | ||
Balance at the end of the period (in dollars per share) | $ / shares | $ 7.21 | ||
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 | ||
Performance-based Restricted stock | |||
Average Grant Date fair Value | |||
Performance based grant (in shares) | 13,245 |
Shareholders' Equity - Preferre
Shareholders' Equity - Preferred Stock, Cash Dividends and Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 27, 2016 | Feb. 29, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2016 | Jan. 06, 2016 | Jun. 30, 2015 |
Stock line items | ||||||||
Cash dividend paid on common stock (in dollars per share) | $ 0.06 | |||||||
Cash dividend declared (in dollars per share) | $ 0.06 | $ 0.05 | ||||||
Repurchase of shares, dollar amount authorized | $ 5 | |||||||
Shares repurchased and cancelled | 226,170 | 281,598 | ||||||
Cost of shares repurchased and cancelled | $ 1.6 | $ 2 | ||||||
Price per share of shares repurchased and cancelled | $ 7.23 | $ 7.23 | $ 7.28 | |||||
Maximum | ||||||||
Stock line items | ||||||||
Repurchase of shares, dollar amount authorized | $ 5 | |||||||
Subsequent Event | ||||||||
Stock line items | ||||||||
Cash dividend declared (in dollars per share) | $ 0.06 |
Shareholders' Equity - Regulato
Shareholders' Equity - Regulatory Capital (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Common Equity Tier I capital to risk-weighted assets: | |||
Phased-out rate of certain deferred tax assets and intangible assets | 60.00% | 40.00% | |
Capital conservation buffer | |||
Capital conservation buffer (as a percent) | 2.50% | ||
Capital conservation buffer for 2016 (as a percent) | 0.625% | ||
Capital conservation buffer for 2017 (as a percent) | 1.25% | ||
Capital conservation buffer for 2018 (as a percent) | 1.875% | ||
Capital conservation buffer for 2019 (as a percent) | 2.50% | ||
Common Equity Tier I Capital Ratio | |||
Regulatory standard to be well capitalized (as a percent) | 5.125% | ||
2019 Minimum Common Equity Tier I Capital Ratio (as a percent) | 7.00% | ||
Leverage ratio | |||
Regulatory standard to be well capitalized (as a percent) | 4.00% | ||
Tier I Risk-Based Capital Ratio | |||
Regulatory standard to be well capitalized (as a percent) | 6.625% | ||
2019 Minimum Tier I Risk-based Capital Ratio (as a percent) | 8.50% | ||
Total Risk-Based Capital Ratio | |||
Regulatory standard to be well capitalized (as a percent) | 8.625% | ||
2019 Minimum Total Risk-based Capital Ratio | 10.50% | ||
Minimum | |||
Common Equity Tier I capital to risk-weighted assets: | |||
CET I to risk-weighted assets | 4.50% | ||
Total Risk-Based Capital Ratio | |||
Regulatory standard to be well capitalized (as a percent) | 6.50% | ||
Heritage Oaks Bank | |||
Common Equity Tier I Capital Ratio | |||
Actual Common Equity Tier I (as a percent) | 6.50% | 11.80% | 12.48% |
Leverage ratio | |||
Actual Leverage ratio (as a percent) | 5.00% | 9.13% | 9.50% |
Tier I Risk-Based Capital Ratio | |||
Actual Tier I capital (as a percent) | 8.00% | 11.80% | 12.48% |
Total Risk-Based Capital Ratio | |||
Actual total risk based capital (as a percent) | 10.00% | 13.05% | 13.74% |
Heritage Oaks Bancorp | |||
Common Equity Tier I Capital Ratio | |||
Actual Common Equity Tier I (as a percent) | 5.125% | 12.23% | 12.61% |
Leverage ratio | |||
Actual Leverage ratio (as a percent) | 4.00% | 9.86% | 9.90% |
Tier I Risk-Based Capital Ratio | |||
Actual Tier I capital (as a percent) | 6.625% | 12.74% | 13.01% |
Total Risk-Based Capital Ratio | |||
Actual total risk based capital (as a percent) | 8.625% | 13.99% | 14.26% |
Junior subordinated debentures | |||
Total Risk-Based Capital Ratio | |||
Actual, Capital Amount | $ 10.1 | $ 10 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Calculation of both basic and diluted earnings (loss) per common share | ||
Net income | $ 3,985 | $ 4,069 |
Weighted average shares outstanding | 34,096,379 | 34,107,168 |
Basic earnings per common share (in dollars per share) | $ 0.12 | $ 0.12 |
Dilutive effect of share-based compensation awards (in shares) | 108,078 | 159,314 |
Weighted average diluted shares outstanding | 34,204,457 | 34,266,482 |
Diluted earnings per common share (in dollars per share) | $ 0.12 | $ 0.12 |
Stock options | ||
Shares excluded from the calculation of diluted earnings per share | ||
Shares excluded from the calculation of diluted earnings per share | 35,000 | 136,000 |
Commitments and Contingencies -
Commitments and Contingencies - Total Commitments (Details) - Heritage Oaks Bank - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies | ||
Total commitments and standby letters of credit | $ 254,780 | $ 255,093 |
Outstanding financial fixed rate commitments | 24,400 | |
Outstanding financial variable rate commitments | 230,400 | |
Commitments to extend credit | ||
Commitments and Contingencies | ||
Total commitments and standby letters of credit | 242,061 | 242,125 |
Standby letters of credit | ||
Commitments and Contingencies | ||
Total commitments and standby letters of credit | 12,719 | 12,968 |
Standby letters of credit | One customer | ||
Commitments and Contingencies | ||
Total commitments and standby letters of credit | $ 10,200 | $ 10,400 |
Derivative Instruments (Details
Derivative Instruments (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Derivatives | |
Derivative assets, notional amount | $ 20,873 |
Derivative assets, fair value | 877 |
Derivative liability, notional amount | 20,873 |
Derivative liability, fair value | 877 |
Interest rate swaps | |
Derivatives | |
Notional amount of derivative | 20,900 |
Fair value of derivative | 900 |
Interest rate swaps | Pay Floating Receive Fixed Contract | |
Derivatives | |
Derivative assets, notional amount | 20,873 |
Derivative assets, fair value | 877 |
Interest rate swaps | Pay Fixed Receive Floating Contract | |
Derivatives | |
Derivative liability, notional amount | 20,873 |
Derivative liability, fair value | $ 877 |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Derivatives | |
Gross amounts recognized in Consolidated Balance Sheets (asset) | $ 877 |
Gross amounts recognized in Consolidated Balance Sheets (liability) | 877 |
Net amount presented in the Consolidated Balance Sheets (liability) | 877 |
Gross cash collateral not offset in Consolidated Balance Sheets (liability) | 900 |
Net amount not offset in Consolidated Balance Sheets | (23) |
Not Designated as Hedging Instrument | |
Derivatives | |
Gross amounts recognized in Consolidated Balance Sheets (liability) | 877 |
Net amount presented in the Consolidated Balance Sheets (liability) | 877 |
Gross cash collateral not offset in Consolidated Balance Sheets (liability) | 900 |
Net amount not offset in Consolidated Balance Sheets | (23) |
Interest rate swaps | Pay Floating Receive Fixed Contract | |
Derivatives | |
Gross amounts recognized in Consolidated Balance Sheets (asset) | 877 |
Interest rate swaps | Pay Fixed Receive Floating Contract | |
Derivatives | |
Gross amounts recognized in Consolidated Balance Sheets (liability) | $ 877 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Apr. 27, 2016 | Mar. 31, 2016 | Mar. 31, 2015 |
Subsequent events | |||
Cash dividend declared (in dollars per share) | $ 0.06 | $ 0.05 | |
Subsequent Event | |||
Subsequent events | |||
Cash dividend declared (in dollars per share) | $ 0.06 |