[ X ] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended | June 30, 2013 |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from | to | ||||
Commission File Number: | 000-50961 |
METRO BANCORP, INC. | ||
(Exact name of registrant as specified in its charter) |
Pennsylvania | 25-1834776 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
3801 Paxton Street, Harrisburg, PA | 17111 | |
(Address of principal executive offices) | (Zip Code) |
888-937-0004 |
(Registrant's telephone number, including area code) |
(Former name, former address and former fiscal year, if changed since last report) |
Yes | X | No |
Yes | X | No |
Large accelerated filer | Accelerated filer | X | |||
Non-accelerated filer | Smaller Reporting Company |
Yes | No | X |
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: | 14,144,555 | Common shares outstanding at | July 31, 2013 |
Page | ||
PART I. | FINANCIAL INFORMATION | |
Item 1. | Financial Statements | |
Consolidated Balance Sheets (Unaudited) | ||
June 30, 2013 and December 31, 2012 | ||
Consolidated Statements of Operations (Unaudited) | ||
Three months and six months ended June 30, 2013 and June 30, 2012 | ||
Consolidated Statements of Comprehensive Income (Unaudited) | ||
Three months and six months ended June 30, 2013 and June 30, 2012 | ||
Consolidated Statements of Stockholders' Equity (Unaudited) | ||
Six months ended June 30, 2013 and June 30, 2012 | ||
Consolidated Statements of Cash Flows (Unaudited) | ||
Six months ended June 30, 2013 and June 30, 2012 | ||
Notes to the Interim Consolidated Financial Statements (Unaudited) | ||
Item 2. | Management's Discussion and Analysis of Financial Condition | |
and Results of Operations | ||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. | Controls and Procedures | |
PART II. | OTHER INFORMATION | |
Item 1. | Legal Proceedings | |
Item 1A. | Risk Factors | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. | Defaults Upon Senior Securities | |
Item 4. | Mine Safety Disclosures | |
Item 5. | Other Information | |
Item 6. | Exhibits | |
June 30, 2013 | December 31, 2012 | ||||||
(in thousands, except share and per share amounts) | (Unaudited) | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 48,011 | $ | 56,582 | |||
Securities, available for sale at fair value | 644,668 | 675,109 | |||||
Securities, held to maturity at cost (fair value 2013: $210,755; 2012: $273,671) | 218,794 | 269,783 | |||||
Loans, held for sale | 7,160 | 15,183 | |||||
Loans receivable, net of allowance for loan losses (allowance 2013: $28,038; 2012: $25,282) | 1,605,828 | 1,503,515 | |||||
Restricted investments in bank stock | 23,819 | 15,450 | |||||
Premises and equipment, net | 77,788 | 78,788 | |||||
Other assets | 32,337 | 20,465 | |||||
Total assets | $ | 2,658,405 | $ | 2,634,875 | |||
Liabilities and Stockholders' Equity | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 463,805 | $ | 455,000 | |||
Interest-bearing | 1,704,954 | 1,776,291 | |||||
Total deposits | 2,168,759 | 2,231,291 | |||||
Short-term borrowings | 230,025 | 113,225 | |||||
Long-term debt | 15,800 | 40,800 | |||||
Other liabilities | 15,353 | 14,172 | |||||
Total liabilities | 2,429,937 | 2,399,488 | |||||
Stockholders' Equity: | |||||||
Preferred stock - Series A noncumulative; $10.00 par value; $1,000,000 liquidation preference; | |||||||
(1,000,000 shares authorized; 40,000 shares issued and outstanding) | 400 | 400 | |||||
Common stock - $1.00 par value; 25,000,000 shares authorized; | |||||||
(issued and outstanding shares 2013: 14,138,800; 2012: 14,131,263) | 14,139 | 14,131 | |||||
Surplus | 157,918 | 157,305 | |||||
Retained earnings | 63,964 | 56,311 | |||||
Accumulated other comprehensive income (loss) | (7,953 | ) | 7,240 | ||||
Total stockholders' equity | 228,468 | 235,387 | |||||
Total liabilities and stockholders' equity | $ | 2,658,405 | $ | 2,634,875 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in thousands, except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Interest Income | |||||||||||||||
Loans receivable, including fees: | |||||||||||||||
Taxable | $ | 18,516 | $ | 18,075 | $ | 36,487 | $ | 35,835 | |||||||
Tax-exempt | 905 | 897 | 1,836 | 1,764 | |||||||||||
Securities: | |||||||||||||||
Taxable | 5,007 | 5,567 | 10,366 | 11,238 | |||||||||||
Tax-exempt | 184 | 86 | 368 | 119 | |||||||||||
Federal funds sold | — | — | — | 1 | |||||||||||
Total interest income | 24,612 | 24,625 | 49,057 | 48,957 | |||||||||||
Interest Expense | |||||||||||||||
Deposits | 1,525 | 2,000 | 3,144 | 4,082 | |||||||||||
Short-term borrowings | 181 | 74 | 312 | 127 | |||||||||||
Long-term debt | 307 | 581 | 667 | 1,162 | |||||||||||
Total interest expense | 2,013 | 2,655 | 4,123 | 5,371 | |||||||||||
Net interest income | 22,599 | 21,970 | 44,934 | 43,586 | |||||||||||
Provision for loan losses | 1,800 | 2,950 | 4,100 | 5,450 | |||||||||||
Net interest income after provision for loan losses | 20,799 | 19,020 | 40,834 | 38,136 | |||||||||||
Noninterest Income | |||||||||||||||
Service charges, fees and other operating income | 7,093 | 7,076 | 14,025 | 13,953 | |||||||||||
Gains on sales of loans | 250 | 372 | 663 | 601 | |||||||||||
Total fees and other income | 7,343 | 7,448 | 14,688 | 14,554 | |||||||||||
Other-than-temporary impairment (OTTI) losses | — | — | — | (649 | ) | ||||||||||
Portion recognized in other comprehensive income (before taxes) | — | — | — | — | |||||||||||
Net impairment loss on investment securities | — | — | — | (649 | ) | ||||||||||
Net gains (losses) on sales/calls of securities | (9 | ) | 12 | 21 | 996 | ||||||||||
Total noninterest income | 7,334 | 7,460 | 14,709 | 14,901 | |||||||||||
Noninterest Expenses | |||||||||||||||
Salaries and employee benefits | 10,391 | 10,166 | 21,216 | 20,704 | |||||||||||
Occupancy | 2,150 | 2,050 | 4,273 | 4,133 | |||||||||||
Furniture and equipment | 1,185 | 1,238 | 2,272 | 2,504 | |||||||||||
Advertising and marketing | 448 | 381 | 817 | 801 | |||||||||||
Data processing | 3,276 | 3,281 | 6,482 | 6,663 | |||||||||||
Regulatory assessments and related costs | 551 | 849 | 1,085 | 1,675 | |||||||||||
Telephone | 875 | 833 | 1,828 | 1,707 | |||||||||||
Loan expense | 1,044 | 321 | 1,369 | 691 | |||||||||||
Foreclosed real estate | 71 | 781 | 215 | 1,144 | |||||||||||
Pennsylvania shares tax | 573 | 515 | 1,138 | 1,019 | |||||||||||
Other | 1,796 | 2,259 | 3,994 | 4,564 | |||||||||||
Total noninterest expenses | 22,360 | 22,674 | 44,689 | 45,605 | |||||||||||
Income before taxes | 5,773 | 3,806 | 10,854 | 7,432 | |||||||||||
Provision for federal income taxes | 1,725 | 1,044 | 3,161 | 1,986 | |||||||||||
Net income | $ | 4,048 | $ | 2,762 | $ | 7,693 | $ | 5,446 | |||||||
Net Income per Common Share | |||||||||||||||
Basic | $ | 0.28 | $ | 0.19 | $ | 0.54 | $ | 0.38 | |||||||
Diluted | 0.28 | 0.19 | 0.54 | 0.38 | |||||||||||
Average Common and Common Equivalent Shares Outstanding | |||||||||||||||
Basic | 14,137 | 14,128 | 14,134 | 14,127 | |||||||||||
Diluted | 14,243 | 14,128 | 14,201 | 14,127 |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||
Net income | $ | 4,048 | $ | 2,762 | $ | 7,693 | $ | 5,446 | ||||
Other comprehensive (loss) income, net of tax: | ||||||||||||
Net unrealized holding gains (losses) arising during the period (net of taxes for the three months 2013: ($6,759); 2012: ($631), net of taxes for the six months 2013: ($8,137); 2012: $1,147) | (12,554 | ) | (1,226 | ) | (15,426 | ) | 2,227 | |||||
Reclassification adjustment for net realized (gains) losses on securities recorded in income (1) (net of taxes for the three months 2013: $2; 2012: $105, net of taxes for the six months 2013: $124; 2012: ($226) | 7 | 204 | 233 | (438 | ) | |||||||
Reclassification for OTTI credit losses recorded in income (net of taxes for the six months 2012: $221) | — | — | — | 428 | ||||||||
Other comprehensive (loss) income | (12,547 | ) | (1,022 | ) | (15,193 | ) | 2,217 | |||||
Total comprehensive (loss) income | $ | (8,499 | ) | $ | 1,740 | $ | (7,500 | ) | $ | 7,663 |
(in thousands, except share amounts) | Preferred Stock | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Income | Total | ||||||||||||
January 1, 2012 | $ | 400 | $ | 14,125 | $ | 156,184 | $ | 45,497 | $ | 3,814 | $ | 220,020 | ||||||
Net income | — | — | — | 5,446 | — | 5,446 | ||||||||||||
Other comprehensive income | — | — | — | — | 2,217 | 2,217 | ||||||||||||
Dividends declared on preferred stock | — | — | — | (40 | ) | — | (40 | ) | ||||||||||
Common stock of 20 shares issued under employee stock purchase plan | — | — | — | — | — | — | ||||||||||||
Proceeds from issuance of 3,100 shares of common stock in connection with dividend reinvestment and stock purchase plan | — | 3 | 32 | — | — | 35 | ||||||||||||
Common stock share-based awards | — | — | 423 | — | — | 423 | ||||||||||||
June 30, 2012 | $ | 400 | $ | 14,128 | $ | 156,639 | $ | 50,903 | $ | 6,031 | $ | 228,101 |
(in thousands, except share amounts) | Preferred Stock | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total | ||||||||||||
January 1, 2013 | $ | 400 | $ | 14,131 | $ | 157,305 | $ | 56,311 | $ | 7,240 | $ | 235,387 | ||||||
Net income | — | — | — | 7,693 | — | 7,693 | ||||||||||||
Other comprehensive loss | — | — | — | — | (15,193 | ) | (15,193 | ) | ||||||||||
Dividends declared on preferred stock | — | — | — | (40 | ) | — | (40 | ) | ||||||||||
Common stock of 6,255 shares issued under stock option plans, including tax benefit of $7 | — | 6 | 73 | — | — | 79 | ||||||||||||
Common stock of 10 shares issued under employee stock purchase plan | — | — | — | — | — | — | ||||||||||||
Proceeds from issuance of 1,272 shares of common stock in connection with dividend reinvestment and stock purchase plan | — | 2 | 41 | — | — | 43 | ||||||||||||
Common stock share-based awards | — | — | 499 | — | — | 499 | ||||||||||||
June 30, 2013 | $ | 400 | $ | 14,139 | $ | 157,918 | $ | 63,964 | $ | (7,953 | ) | $ | 228,468 |
Six Months Ended | ||||||||
June 30, | ||||||||
(in thousands) | 2013 | 2012 | ||||||
Operating Activities | ||||||||
Net income | $ | 7,693 | $ | 5,446 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for loan losses | 4,100 | 5,450 | ||||||
Provision for depreciation and amortization | 2,646 | 3,045 | ||||||
Deferred income tax benefit | (564 | ) | (106 | ) | ||||
Amortization of securities premiums and accretion of discounts (net) | 602 | 826 | ||||||
Losses (gains) on sales of available for sales securities (net) | 357 | (664 | ) | |||||
Gains on sales/calls of held to maturity securities | (379 | ) | (332 | ) | ||||
Other-than-temporary impairment losses on investment securities | — | 649 | ||||||
Proceeds from sales of other loans originated for sale | 30,196 | 31,130 | ||||||
Loans originated for sale | (21,510 | ) | (35,349 | ) | ||||
Gains on sales of loans originated for sale | (663 | ) | (601 | ) | ||||
Loss on write-down on foreclosed real estate | 15 | 187 | ||||||
Losses on sales of foreclosed real estate (net) | 57 | 741 | ||||||
(Gains) losses on disposal of premises and equipment (net) | 116 | (14 | ) | |||||
Stock-based compensation | 499 | 423 | ||||||
Amortization of deferred loan origination fees and costs (net) | 1,349 | 1,359 | ||||||
(Increase) decrease in other assets | (1,216 | ) | 1,285 | |||||
Increase (decrease) in other liabilities | 1,181 | (1,090 | ) | |||||
Net cash provided by operating activities | 24,479 | 12,385 | ||||||
Investing Activities | ||||||||
Securities available for sale: | ||||||||
Proceeds from principal repayments, calls and maturities | 87,792 | 69,601 | ||||||
Proceeds from sales | 76,262 | 249,323 | ||||||
Purchases | (157,777 | ) | (307,800 | ) | ||||
Securities held to maturity: | ||||||||
Proceeds from principal repayments, calls and maturities | 57,767 | 121,734 | ||||||
Proceeds from sales | 13,600 | 4,822 | ||||||
Purchases | (20,000 | ) | (120,974 | ) | ||||
Proceeds from sales of foreclosed real estate | 542 | 3,354 | ||||||
Increase in loans receivable (net) | (110,455 | ) | (59,779 | ) | ||||
(Purchase) redemption of restricted investment in bank stock (net) | (8,369 | ) | 1,632 | |||||
Proceeds from sale of premises and equipment | 66 | 14 | ||||||
Purchases of premises and equipment | (1,828 | ) | (2,725 | ) | ||||
Net cash used by investing activities | (62,400 | ) | (40,798 | ) | ||||
Financing Activities | ||||||||
(Decrease) increase in demand, interest checking, money market, and savings deposits (net) | (57,505 | ) | 23,947 | |||||
Decrease in time and other noncore deposits (net) | (5,027 | ) | (9,606 | ) | ||||
Increase in short-term borrowings (net) | 116,800 | 7,250 | ||||||
Repayment of long-term borrowings | (25,000 | ) | — | |||||
Proceeds from common stock options exercised | 72 | — | ||||||
Proceeds from dividend reinvestment and common stock purchase plan | 43 | 35 | ||||||
Tax benefit on exercise of stock options | 7 | — | ||||||
Cash dividends on preferred stock | (40 | ) | (40 | ) | ||||
Net cash provided by financing activities | 29,350 | 21,586 | ||||||
Decrease in cash and cash equivalents | (8,571 | ) | (6,827 | ) | ||||
Cash and cash equivalents at beginning of year | 56,582 | 55,073 | ||||||
Cash and cash equivalents at end of period | $ | 48,011 | $ | 48,246 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest on deposits and borrowings | $ | 3,924 | $ | 5,505 | ||||
Cash paid for income taxes | 3,925 | 2,450 | ||||||
Supplemental schedule of noncash activities: | ||||||||
Transfer of loans to foreclosed assets | 2,693 | 1,421 |
NOTE 1. | Summary of Significant Accounting Policies |
NOTE 2. | Stock-based Compensation |
June 30, 2013 | |||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Available for Sale: | |||||||||||||||
U.S. Government agency securities | $ | 33,994 | $ | — | $ | (2,991 | ) | $ | 31,003 | ||||||
Residential mortgage-backed securities | 68,949 | — | (1,844 | ) | 67,105 | ||||||||||
Agency collateralized mortgage obligations | 527,064 | 3,114 | (9,349 | ) | 520,829 | ||||||||||
Municipal securities | 26,895 | — | (1,164 | ) | 25,731 | ||||||||||
Total | $ | 656,902 | $ | 3,114 | $ | (15,348 | ) | $ | 644,668 | ||||||
Held to Maturity: | |||||||||||||||
U.S. Government agency securities | $ | 149,089 | $ | — | $ | (9,518 | ) | $ | 139,571 | ||||||
Residential mortgage-backed securities | 18,024 | 1,089 | — | 19,113 | |||||||||||
Agency collateralized mortgage obligations | 43,703 | 476 | — | 44,179 | |||||||||||
Corporate debt securities | 5,000 | 55 | — | 5,055 | |||||||||||
Municipal securities | 2,978 | 3 | (144 | ) | 2,837 | ||||||||||
Total | $ | 218,794 | $ | 1,623 | $ | (9,662 | ) | $ | 210,755 |
December 31, 2012 | |||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Available for Sale: | |||||||||||||||
U.S. Government agency securities | $ | 33,994 | $ | 19 | $ | (252 | ) | $ | 33,761 | ||||||
Residential mortgage-backed securities | 55,614 | 1,596 | — | 57,210 | |||||||||||
Agency collateralized mortgage obligations | 547,641 | 9,971 | (745 | ) | 556,867 | ||||||||||
Municipal securities | 26,890 | 381 | — | 27,271 | |||||||||||
Total | $ | 664,139 | $ | 11,967 | $ | (997 | ) | $ | 675,109 | ||||||
Held to Maturity: | |||||||||||||||
U.S. Government agency securities | $ | 178,926 | $ | 700 | $ | (363 | ) | $ | 179,263 | ||||||
Residential mortgage-backed securities | 23,827 | 1,889 | — | 25,716 | |||||||||||
Agency collateralized mortgage obligations | 49,051 | 1,587 | — | 50,638 | |||||||||||
Corporate debt securities | 15,000 | 13 | — | 15,013 | |||||||||||
Municipal securities | 2,979 | 62 | — | 3,041 | |||||||||||
Total | $ | 269,783 | $ | 4,251 | $ | (363 | ) | $ | 273,671 |
Available for Sale | Held to Maturity | ||||||||||||||
(in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Due in one year or less | $ | — | $ | — | $ | — | $ | — | |||||||
Due after one year through five years | — | — | 5,000 | 5,055 | |||||||||||
Due after five years through ten years | 47,480 | 44,074 | 70,000 | 65,105 | |||||||||||
Due after ten years | 13,409 | 12,660 | 82,067 | 77,303 | |||||||||||
60,889 | 56,734 | 157,067 | 147,463 | ||||||||||||
Residential mortgage-backed securities | 68,949 | 67,105 | 18,024 | 19,113 | |||||||||||
Agency collateralized mortgage obligations | 527,064 | 520,829 | 43,703 | 44,179 | |||||||||||
Total | $ | 656,902 | $ | 644,668 | $ | 218,794 | $ | 210,755 |
(in thousands) | Gross Realized Gains | Gross Realized Losses | OTTI Credit Losses | Net Gains | |||||||||||
Three Months Ended: | |||||||||||||||
June 30, 2013 | $ | 363 | $ | (372 | ) | $ | — | $ | (9 | ) | |||||
June 30, 2012 | 626 | (614 | ) | — | 12 | ||||||||||
Six Months Ended: | |||||||||||||||
June 30, 2013 | $ | 1,183 | $ | (1,162 | ) | $ | — | $ | 21 | ||||||
June 30, 2012 | 2,495 | (1,499 | ) | (649 | ) | 347 |
June 30, 2013 | ||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||
(in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||
Available for Sale: | ||||||||||||||||||
U.S. Government agency securities | $ | 31,003 | $ | (2,991 | ) | $ | — | $ | — | $ | 31,003 | $ | (2,991 | ) | ||||
Residential mortgage-backed securities | 67,105 | (1,844 | ) | — | — | 67,105 | (1,844 | ) | ||||||||||
Agency CMOs | 298,454 | (9,349 | ) | — | — | 298,454 | (9,349 | ) | ||||||||||
Municipal securities | 25,731 | (1,164 | ) | — | — | 25,731 | (1,164 | ) | ||||||||||
Total | $ | 422,293 | $ | (15,348 | ) | $ | — | $ | — | $ | 422,293 | $ | (15,348 | ) | ||||
Held to Maturity: | ||||||||||||||||||
U.S. Government agency securities | $ | 139,571 | $ | (9,518 | ) | $ | — | $ | — | $ | 139,571 | $ | (9,518 | ) | ||||
Municipal securities | 1,731 | (144 | ) | — | — | 1,731 | (144 | ) | ||||||||||
Total | $ | 141,302 | $ | (9,662 | ) | $ | — | $ | — | $ | 141,302 | $ | (9,662 | ) |
December 31, 2012 | ||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||
(in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||
Available for Sale: | ||||||||||||||||||
U.S. Government agency securities | $ | 24,748 | $ | (252 | ) | $ | — | $ | — | $ | 24,748 | $ | (252 | ) | ||||
Agency CMOs | 53,274 | (745 | ) | — | — | 53,274 | (745 | ) | ||||||||||
Total | $ | 78,022 | $ | (997 | ) | $ | — | $ | — | $ | 78,022 | $ | (997 | ) | ||||
Held to Maturity: | ||||||||||||||||||
U.S. Government agency securities | $ | 57,572 | $ | (363 | ) | $ | — | $ | — | $ | 57,572 | $ | (363 | ) | ||||
Total | $ | 57,572 | $ | (363 | ) | $ | — | $ | — | $ | 57,572 | $ | (363 | ) |
Private-label CMOs | ||||||
Available for Sale | ||||||
(in thousands) | 2013 | 2012 | ||||
Cumulative OTTI credit losses at April 1, | $ | — | $ | 2,293 | ||
Additional increases for OTTI previously recognized when there is no intent to sell and no requirement to sell before recovery of amortized cost basis | — | — | ||||
Reduction due to credit impaired securities sold | — | (2,041 | ) | |||
Cumulative OTTI credit losses recognized for securities still held at June 30, | $ | — | $ | 252 |
Private-label CMOs | ||||||
Available for Sale | ||||||
(in thousands) | 2013 | 2012 | ||||
Cumulative OTTI credit losses at January 1, | $ | — | $ | 2,949 | ||
Additional increases for OTTI previously recognized when there is no intent to sell and no requirement to sell before recovery of amortized cost basis | — | 649 | ||||
Reduction due to credit impaired securities sold | — | (3,346 | ) | |||
Cumulative OTTI credit losses recognized for securities still held at June 30, | $ | — | $ | 252 |
NOTE 4. | Loans Receivable and Allowance for Loan Losses |
(in thousands) | June 30, 2013 | December 31, 2012 | |||||
Commercial and industrial | $ | 415,740 | $ | 376,988 | |||
Commercial tax-exempt | 82,455 | 92,202 | |||||
Owner occupied real estate | 288,702 | 268,372 | |||||
Commercial construction and land development | 105,596 | 100,399 | |||||
Commercial real estate | 433,628 | 394,404 | |||||
Residential | 90,590 | 83,899 | |||||
Consumer | 217,155 | 212,533 | |||||
1,633,866 | 1,528,797 | ||||||
Less: allowance for loan losses | 28,038 | 25,282 | |||||
Net loans receivable | $ | 1,605,828 | $ | 1,503,515 |
(in thousands) | June 30, 2013 | December 31, 2012 | |||||
Nonaccrual loans: | |||||||
Commercial and industrial | $ | 12,053 | $ | 11,289 | |||
Commercial tax-exempt | — | — | |||||
Owner occupied real estate | 4,999 | 3,119 | |||||
Commercial construction and land development | 12,027 | 6,300 | |||||
Commercial real estate | 3,893 | 5,659 | |||||
Residential | 7,133 | 3,203 | |||||
Consumer | 3,422 | 2,846 | |||||
Total nonaccrual loans | $ | 43,527 | $ | 32,416 |
Past Due Loans | Recorded Investment in Loans 90 Days and Greater and Still Accruing | ||||||||||||||||||||
(in thousands) | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days Past Due and Greater | Total Past Due | Total Loan Receivables | |||||||||||||||
June 30, 2013 | |||||||||||||||||||||
Commercial and industrial | $ | 402,836 | $ | 5,307 | $ | 3,067 | $ | 4,530 | $ | 12,904 | $ | 415,740 | $ | — | |||||||
Commercial tax-exempt | 82,455 | — | — | — | — | 82,455 | — | ||||||||||||||
Owner occupied real estate | 283,912 | 998 | 626 | 3,166 | 4,790 | 288,702 | — | ||||||||||||||
Commercial construction and land development | 97,258 | — | — | 8,338 | 8,338 | 105,596 | — | ||||||||||||||
Commercial real estate | 427,131 | 822 | 4,889 | 786 | 6,497 | 433,628 | — | ||||||||||||||
Residential | 82,560 | — | 2,258 | 5,772 | 8,030 | 90,590 | — | ||||||||||||||
Consumer | 211,777 | 1,795 | 1,791 | 1,792 | 5,378 | 217,155 | — | ||||||||||||||
Total | $ | 1,587,929 | $ | 8,922 | $ | 12,631 | $ | 24,384 | $ | 45,937 | $ | 1,633,866 | $ | — |
Past Due Loans | Recorded Investment in Loans 90 Days and Greater and Still Accruing | ||||||||||||||||||||
(in thousands) | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days Past Due and Greater | Total Past Due | Total Loan Receivables | |||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Commercial and industrial | $ | 368,769 | $ | 1,096 | $ | 3,256 | $ | 3,867 | $ | 8,219 | $ | 376,988 | $ | 30 | |||||||
Commercial tax-exempt | 92,202 | — | — | — | — | 92,202 | — | ||||||||||||||
Owner occupied real estate | 265,817 | 610 | 353 | 1,592 | 2,555 | 268,372 | — | ||||||||||||||
Commercial construction and land development | 89,250 | 4,251 | 4,318 | 2,580 | 11,149 | 100,399 | 188 | ||||||||||||||
Commercial real estate | 386,821 | 3,846 | 78 | 3,659 | 7,583 | 394,404 | — | ||||||||||||||
Residential | 76,587 | 4,303 | 1,252 | 1,757 | 7,312 | 83,899 | — | ||||||||||||||
Consumer | 208,335 | 2,277 | 410 | 1,511 | 4,198 | 212,533 | 2 | ||||||||||||||
Total | $ | 1,487,781 | $ | 16,383 | $ | 9,667 | $ | 14,966 | $ | 41,016 | $ | 1,528,797 | $ | 220 |
(in thousands) | Comm. and industrial | Comm. tax-exempt | Owner occupied real estate | Comm. construction and land development | Comm. real estate | Residential | Con sumer | Unallocated | Total | ||||||||||||||||||
June 30, 2013 | |||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,695 | $ | — | $ | 1,415 | $ | 3,470 | $ | 1,755 | $ | 508 | $ | 492 | $ | — | $ | 10,335 | |||||||||
Collectively evaluated for impairment | 7,854 | 74 | 792 | 4,340 | 3,304 | 355 | 766 | 218 | 17,703 | ||||||||||||||||||
Total ALL | $ | 10,549 | $ | 74 | $ | 2,207 | $ | 7,810 | $ | 5,059 | $ | 863 | $ | 1,258 | $ | 218 | $ | 28,038 | |||||||||
Loans receivable: | |||||||||||||||||||||||||||
Loans evaluated individually | $ | 15,406 | $ | — | $ | 5,260 | $ | 15,526 | $ | 15,330 | $ | 8,283 | $ | 3,863 | $ | — | $ | 63,668 | |||||||||
Loans evaluated collectively | 400,334 | 82,455 | 283,442 | 90,070 | 418,298 | 82,307 | 213,292 | — | 1,570,198 | ||||||||||||||||||
Total loans receivable | $ | 415,740 | $ | 82,455 | $ | 288,702 | $ | 105,596 | $ | 433,628 | $ | 90,590 | $ | 217,155 | $ | — | $ | 1,633,866 |
(in thousands) | Comm. and industrial | Comm. tax-exempt | Owner occupied real estate | Comm. construction and land development | Comm. real estate | Residential | Con sumer | Unallocated | Total | ||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,399 | $ | — | $ | 1,451 | $ | 2,470 | $ | 800 | $ | — | $ | — | $ | — | $ | 7,120 | |||||||||
Collectively evaluated for impairment | 7,560 | 83 | 678 | 4,752 | 3,183 | 324 | 793 | 789 | 18,162 | ||||||||||||||||||
Total ALL | $ | 9,959 | $ | 83 | $ | 2,129 | $ | 7,222 | $ | 3,983 | $ | 324 | $ | 793 | $ | 789 | $ | 25,282 | |||||||||
Loans receivable: | |||||||||||||||||||||||||||
Loans evaluated individually | $ | 13,082 | $ | — | $ | 3,380 | $ | 15,549 | $ | 17,136 | $ | 4,163 | $ | 3,331 | $ | — | $ | 56,641 | |||||||||
Loans evaluated collectively | 363,906 | 92,202 | 264,992 | 84,850 | 377,268 | 79,736 | 209,202 | — | 1,472,156 | ||||||||||||||||||
Total loans receivable | $ | 376,988 | $ | 92,202 | $ | 268,372 | $ | 100,399 | $ | 394,404 | $ | 83,899 | $ | 212,533 | $ | — | $ | 1,528,797 |
(in thousands) | Comm. and industrial | Comm. tax-exempt | Owner occupied real estate | Comm. construction and land development | Comm. real estate | Residential | Consumer | Unallocated | Total | ||||||||||||||||||
2013 | |||||||||||||||||||||||||||
Balance at April 1 | $ | 10,408 | $ | 75 | $ | 2,208 | $ | 7,967 | $ | 5,038 | $ | 338 | $ | 787 | $ | 651 | $ | 27,472 | |||||||||
Provision charged to operating expenses | 1,175 | (1 | ) | 51 | (161 | ) | 162 | 539 | 468 | (433 | ) | 1,800 | |||||||||||||||
Recoveries of loans previously charged-off | 194 | — | — | 12 | — | — | 22 | — | 228 | ||||||||||||||||||
Loans charged-off | (1,228 | ) | — | (52 | ) | (8 | ) | (141 | ) | (14 | ) | (19 | ) | — | (1,462 | ) | |||||||||||
Balance at June 30 | $ | 10,549 | $ | 74 | $ | 2,207 | $ | 7,810 | $ | 5,059 | $ | 863 | $ | 1,258 | $ | 218 | $ | 28,038 |
(in thousands) | Comm. and industrial | Comm. tax-exempt | Owner occupied real estate | Comm. construction and land development | Comm. real estate | Residential | Consumer | Unallocated | Total | ||||||||||||||||||
2013 | |||||||||||||||||||||||||||
Balance at January 1 | $ | 9,959 | $ | 83 | $ | 2,129 | $ | 7,222 | $ | 3,983 | $ | 324 | $ | 793 | $ | 789 | $ | 25,282 | |||||||||
Provision charged to operating expenses | 1,522 | (9 | ) | 311 | 115 | 1,299 | 666 | 767 | (571 | ) | 4,100 | ||||||||||||||||
Recoveries of loans previously charged-off | 332 | — | 3 | 498 | — | 3 | 58 | — | 894 | ||||||||||||||||||
Loans charged-off | (1,264 | ) | — | (236 | ) | (25 | ) | (223 | ) | (130 | ) | (360 | ) | — | (2,238 | ) | |||||||||||
Balance at June 30 | $ | 10,549 | $ | 74 | $ | 2,207 | $ | 7,810 | $ | 5,059 | $ | 863 | $ | 1,258 | $ | 218 | $ | 28,038 |
(in thousands) | Comm. and industrial | Comm. tax-exempt | Owner occupied real estate | Comm. construction and land development | Comm. real estate | Residential | Consumer | Unallocated | Total | ||||||||||||||||||
2012 | |||||||||||||||||||||||||||
Balance at April 1 | $ | 8,251 | $ | 72 | $ | 1,794 | $ | 8,940 | $ | 3,347 | $ | 426 | $ | 783 | $ | 146 | $ | 23,759 | |||||||||
Provision charged to operating expenses | 2,481 | 2 | 368 | 172 | (129 | ) | 22 | 79 | (45 | ) | 2,950 | ||||||||||||||||
Recoveries of loans previously charged-off | 180 | — | 4 | 15 | 27 | — | 21 | — | 247 | ||||||||||||||||||
Loans charged-off | (337 | ) | — | (49 | ) | (210 | ) | (106 | ) | (10 | ) | (86 | ) | — | (798 | ) | |||||||||||
Balance at June 30 | $ | 10,575 | $ | 74 | $ | 2,117 | $ | 8,917 | $ | 3,139 | $ | 438 | $ | 797 | $ | 101 | $ | 26,158 |
(in thousands) | Comm. and industrial | Comm. tax-exempt | Owner occupied real estate | Comm. construction and land development | Comm. real estate | Residential | Consumer | Unallocated | Total | ||||||||||||||||||
2012 | |||||||||||||||||||||||||||
Balance at January 1 | $ | 8,400 | $ | 79 | $ | 729 | $ | 7,840 | $ | 3,241 | $ | 435 | $ | 831 | $ | 65 | $ | 21,620 | |||||||||
Provision charged to operating expenses | 2,434 | (5 | ) | 1,473 | 1,225 | 140 | 67 | 80 | 36 | 5,450 | |||||||||||||||||
Recoveries of loans previously charged-off | 201 | — | 7 | 450 | 30 | 1 | 45 | — | 734 | ||||||||||||||||||
Loans charged-off | (460 | ) | — | (92 | ) | (598 | ) | (272 | ) | (65 | ) | (159 | ) | — | (1,646 | ) | |||||||||||
Balance at June 30 | $ | 10,575 | $ | 74 | $ | 2,117 | $ | 8,917 | $ | 3,139 | $ | 438 | $ | 797 | $ | 101 | $ | 26,158 |
June 30, 2013 | December 31, 2012 | |||||||||||||||||
(in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||||||
Loans with no related allowance: | ||||||||||||||||||
Commercial and industrial | $ | 10,101 | $ | 15,253 | $ | — | $ | 7,426 | $ | 11,746 | $ | — | ||||||
Commercial tax-exempt | — | — | — | — | — | — | ||||||||||||
Owner occupied real estate | 3,845 | 4,448 | — | 1,929 | 2,301 | — | ||||||||||||
Commercial construction and land development | 7,717 | 7,863 | — | 7,716 | 8,500 | — | ||||||||||||
Commercial real estate | 11,173 | 11,329 | — | 12,965 | 14,619 | — | ||||||||||||
Residential | 5,130 | 5,482 | — | 4,163 | 4,423 | — | ||||||||||||
Consumer | 3,371 | 3,625 | — | 3,331 | 3,547 | — | ||||||||||||
Total impaired loans with no related allowance | 41,337 | 48,000 | — | 37,530 | 45,136 | — | ||||||||||||
Loans with an allowance recorded: | ||||||||||||||||||
Commercial and industrial | 5,305 | 5,305 | 2,695 | 5,656 | 6,526 | 2,399 | ||||||||||||
Owner occupied real estate | 1,415 | 1,415 | 1,415 | 1,451 | 1,451 | 1,451 | ||||||||||||
Commercial construction and land development | 7,809 | 7,809 | 3,470 | 7,833 | 7,833 | 2,470 | ||||||||||||
Commercial real estate | 4,157 | 4,157 | 1,755 | 4,171 | 4,172 | 800 | ||||||||||||
Residential | 3,153 | 3,153 | 508 | — | — | — | ||||||||||||
Consumer | 492 | 492 | 492 | — | — | — | ||||||||||||
Total impaired loans with an allowance recorded | 22,331 | 22,331 | 10,335 | 19,111 | 19,982 | 7,120 | ||||||||||||
Total impaired loans: | ||||||||||||||||||
Commercial and industrial | 15,406 | 20,558 | 2,695 | 13,082 | 18,272 | 2,399 | ||||||||||||
Commercial tax-exempt | — | — | — | — | — | — | ||||||||||||
Owner occupied real estate | 5,260 | 5,863 | 1,415 | 3,380 | 3,752 | 1,451 | ||||||||||||
Commercial construction and land development | 15,526 | 15,672 | 3,470 | 15,549 | 16,333 | 2,470 | ||||||||||||
Commercial real estate | 15,330 | 15,486 | 1,755 | 17,136 | 18,791 | 800 | ||||||||||||
Residential | 8,283 | 8,635 | 508 | 4,163 | 4,423 | — | ||||||||||||
Consumer | 3,863 | 4,117 | 492 | 3,331 | 3,547 | — | ||||||||||||
Total impaired loans | $ | 63,668 | $ | 70,331 | $ | 10,335 | $ | 56,641 | $ | 65,118 | $ | 7,120 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||||||||||
(in thousands) | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||
Loans with no related allowance: | ||||||||||||||||||||||||
Commercial and industrial | $ | 9,952 | $ | 43 | $ | 11,321 | $ | 31 | $ | 9,230 | $ | 74 | $ | 12,103 | $ | 92 | ||||||||
Commercial tax-exempt | — | — | — | — | — | — | — | — | ||||||||||||||||
Owner occupied real estate | 2,764 | — | 4,306 | 43 | 2,358 | — | 5,508 | 123 | ||||||||||||||||
Commercial construction and land development | 7,806 | 45 | 10,680 | 130 | 7,915 | 90 | 11,161 | 251 | ||||||||||||||||
Commercial real estate | 11,557 | 111 | 10,842 | 39 | 12,210 | 256 | 11,429 | 96 | ||||||||||||||||
Residential | 4,901 | 19 | 3,963 | 7 | 4,736 | 36 | 3,785 | 18 | ||||||||||||||||
Consumer | 3,305 | 8 | 2,268 | 2 | 3,184 | 14 | 2,136 | 2 | ||||||||||||||||
Total impaired loans with no related allowance | 40,285 | 226 | 43,380 | 252 | 39,633 | 470 | 46,122 | 582 | ||||||||||||||||
Loans with an allowance recorded: | ||||||||||||||||||||||||
Commercial and industrial | 5,312 | — | 4,219 | — | 5,251 | — | 3,010 | — | ||||||||||||||||
Owner occupied real estate | 1,418 | — | 1,456 | — | 1,427 | — | 1,136 | — | ||||||||||||||||
Commercial construction and land development | 7,816 | — | 13,312 | — | 7,829 | — | 13,066 | — | ||||||||||||||||
Commercial real estate | 4,159 | — | — | — | 4,165 | — | — | — | ||||||||||||||||
Residential | 1,051 | — | — | — | 526 | — | — | — | ||||||||||||||||
Consumer | 164 | — | — | — | 82 | — | — | — | ||||||||||||||||
Total impaired loans with an allowance recorded | 19,920 | — | 18,987 | — | 19,280 | — | 17,212 | — | ||||||||||||||||
Total impaired loans: | ||||||||||||||||||||||||
Commercial and industrial | 15,264 | 43 | 15,540 | 31 | 14,481 | 74 | 15,113 | 92 | ||||||||||||||||
Commercial tax-exempt | — | — | — | — | — | — | — | — | ||||||||||||||||
Owner occupied real estate | 4,182 | — | 5,762 | 43 | 3,785 | — | 6,644 | 123 | ||||||||||||||||
Commercial construction and land development | 15,622 | 45 | 23,992 | 130 | 15,744 | 90 | 24,227 | 251 | ||||||||||||||||
Commercial real estate | 15,716 | 111 | 10,842 | 39 | 16,375 | 256 | 11,429 | 96 | ||||||||||||||||
Residential | 5,952 | 19 | 3,963 | 7 | 5,262 | 36 | 3,785 | 18 | ||||||||||||||||
Consumer | 3,469 | 8 | 2,268 | 2 | 3,266 | 14 | 2,136 | 2 | ||||||||||||||||
Total impaired loans | $ | 60,205 | $ | 226 | $ | 62,367 | $ | 252 | $ | 58,913 | $ | 470 | $ | 63,334 | $ | 582 |
June 30, 2013 | |||||||||||||||
(in thousands) | Pass | Special Mention | Substandard Accrual | Substandard Nonaccrual | Total | ||||||||||
Commercial credit exposure: | |||||||||||||||
Commercial and industrial | $ | 367,438 | $ | 11,646 | $ | 24,603 | $ | 12,053 | $ | 415,740 | |||||
Commercial tax-exempt | 82,455 | — | — | — | 82,455 | ||||||||||
Owner occupied real estate | 272,441 | 3,842 | 7,420 | 4,999 | 288,702 | ||||||||||
Commercial construction and land development | 89,173 | 1,851 | 2,545 | 12,027 | 105,596 | ||||||||||
Commercial real estate | 420,386 | 567 | 8,782 | 3,893 | 433,628 | ||||||||||
Total | $ | 1,231,893 | $ | 17,906 | $ | 43,350 | $ | 32,972 | $ | 1,326,121 |
December 31, 2012 | |||||||||||||||
(in thousands) | Pass | Special Mention | Substandard Accrual | Substandard Nonaccrual | Total | ||||||||||
Commercial credit exposure: | |||||||||||||||
Commercial and industrial | $ | 335,463 | $ | 6,120 | $ | 24,116 | $ | 11,289 | $ | 376,988 | |||||
Commercial tax-exempt | 92,202 | — | — | — | 92,202 | ||||||||||
Owner occupied real estate | 253,338 | 4,160 | 7,755 | 3,119 | 268,372 | ||||||||||
Commercial construction and land development | 81,219 | 5,046 | 7,834 | 6,300 | 100,399 | ||||||||||
Commercial real estate | 379,313 | 574 | 8,858 | 5,659 | 394,404 | ||||||||||
Total | $ | 1,141,535 | $ | 15,900 | $ | 48,563 | $ | 26,367 | $ | 1,232,365 |
June 30, 2013 | |||||||||
(in thousands) | Performing | Nonperforming | Total | ||||||
Consumer credit exposure: | |||||||||
Residential | $ | 83,457 | $ | 7,133 | $ | 90,590 | |||
Consumer | 213,733 | 3,422 | 217,155 | ||||||
Total | $ | 297,190 | $ | 10,555 | $ | 307,745 |
December 31, 2012 | |||||||||
(in thousands) | Performing | Nonperforming | Total | ||||||
Consumer credit exposure: | |||||||||
Residential | $ | 80,696 | $ | 3,203 | $ | 83,899 | |||
Consumer | 209,687 | 2,846 | 212,533 | ||||||
Total | $ | 290,383 | $ | 6,049 | $ | 296,432 |
New TDRs with Concession Type: | Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||||||||||
(dollars in thousands) | Number of Contracts | Recorded Investment at Time of Restructure | Number of Contracts | Recorded Investment at Time of Restructure | Number of Contracts | Recorded Investment at Time of Restructure | Number of Contracts | Recorded Investment at Time of Restructure | ||||||||||||||||
Commercial and industrial: | ||||||||||||||||||||||||
Material extension of time | — | $ | — | 1 | $ | 1,262 | — | $ | — | 1 | $ | 1,262 | ||||||||||||
Change in amortization period | 8 | 1,204 | — | — | 8 | 1,204 | — | — | ||||||||||||||||
Owner occupied real estate: | ||||||||||||||||||||||||
Forbearance agreement | — | — | — | — | 1 | 193 | — | — | ||||||||||||||||
Commercial construction and land development: | ||||||||||||||||||||||||
Material extension of time | 1 | 1,851 | 1 | 351 | 4 | 2,902 | 5 | 3,396 | ||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||
Material extension of time | — | — | — | — | — | — | 1 | 68 | ||||||||||||||||
Change in amortization period | 3 | 2,942 | — | — | 3 | 2,942 | — | — | ||||||||||||||||
Residential: | ||||||||||||||||||||||||
Material extension of time | — | — | 1 | 280 | 1 | 260 | 1 | 280 | ||||||||||||||||
Combination of concessions | — | — | — | — | — | — | 1 | 195 | ||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Material extension of time | — | — | 1 | 178 | — | — | 2 | 195 | ||||||||||||||||
Total | 12 | $ | 5,997 | 4 | $ | 2,071 | 17 | $ | 7,501 | 11 | $ | 5,396 |
TDRs That Subsequently Payment Defaulted: | Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | |||||||||||||||||||||
(dollars in thousands) | Number of Contracts | Recorded Investment | Number of Contracts | Recorded Investment | Number of Contracts | Recorded Investment | Number of Contracts | Recorded Investment | ||||||||||||||||
Commercial and industrial | 9 | $ | 6,151 | 1 | $ | 2 | 10 | $ | 6,390 | 2 | $ | 180 | ||||||||||||
Commercial tax-exempt | — | — | — | — | — | — | — | — | ||||||||||||||||
Owner occupied real estate | 2 | 1,610 | — | — | 2 | 1,610 | 1 | 82 | ||||||||||||||||
Commercial construction and land development | 2 | 2,628 | 1 | 211 | 3 | 6,119 | 5 | 3,239 | ||||||||||||||||
Commercial real estate | 3 | 2,942 | — | — | 4 | 6,217 | 4 | 3,366 | ||||||||||||||||
Residential | — | — | 1 | 194 | 1 | 259 | 3 | 624 | ||||||||||||||||
Consumer | — | — | 1 | 177 | 2 | 177 | 1 | 177 | ||||||||||||||||
Total | 16 | $ | 13,331 | 4 | $ | 584 | 22 | $ | 20,772 | 16 | $ | 7,668 |
NOTE 5. | Loan Commitments and Standby Letters of Credit |
NOTE 6. | Commitments and Contingencies |
NOTE 7. | Fair Value Measurements |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
Description | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
(in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||
June 30, 2013 | |||||||||||||||
U.S. Government agency securities | $ | 31,003 | $ | — | $ | 31,003 | $ | — | |||||||
Residential MBSs | 67,105 | — | 67,105 | — | |||||||||||
Agency CMOs | 520,829 | — | 520,829 | — | |||||||||||
Municipal securities | 25,731 | — | 25,731 | — | |||||||||||
Securities available for sale | $ | 644,668 | $ | — | $ | 644,668 | $ | — |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
Description | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
(in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||
December 31, 2012 | |||||||||||||||
U.S. Government agency securities | $ | 33,761 | $ | — | $ | 33,761 | $ | — | |||||||
Residential MBSs | 57,210 | — | 57,210 | — | |||||||||||
Agency CMOs | 556,867 | — | 556,867 | — | |||||||||||
Municipal securities | 27,271 | — | 27,271 | — | |||||||||||
Securities available for sale | $ | 675,109 | $ | — | $ | 675,109 | $ | — |
Fair Value Measurements at Reporting Date Using | ||||||||||||
Description | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||
(in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | ||||||||
June 30, 2013 | ||||||||||||
Impaired loans with specific allocation | $ | 11,996 | $ | — | $ | — | $ | 11,996 | ||||
Impaired loans net of partial charge-offs | 2,142 | — | — | 2,142 | ||||||||
Total | $ | 14,138 | $ | — | $ | — | $ | 14,138 |
Fair Value Measurements at Reporting Date Using | ||||||||||||
Description | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||
(in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | ||||||||
December 31, 2012 | ||||||||||||
Impaired loans with specific allocation | $ | 11,991 | $ | — | $ | — | $ | 11,991 | ||||
Impaired loans net of partial charge-offs | 4,227 | — | — | 4,227 | ||||||||
Total | $ | 16,218 | $ | — | $ | — | $ | 16,218 |
Fair Value Measurements at June 30, 2013 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(in thousands) | Carrying Amount | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 48,011 | $ | 48,011 | $ | 48,011 | $ | — | $ | — | |||||
Securities | 863,462 | 855,423 | — | 855,423 | — | ||||||||||
Loans, held for sale | 7,160 | 7,199 | — | — | 7,199 | ||||||||||
Loans receivable, net | 1,605,828 | 1,614,277 | — | — | 1,614,277 | ||||||||||
Restricted investments in bank stock | 23,819 | 23,819 | — | — | 23,819 | ||||||||||
Accrued interest receivable | 7,290 | 7,290 | 7,290 | — | — | ||||||||||
Financial liabilities: | |||||||||||||||
Deposits | $ | 2,168,759 | $ | 2,169,781 | $ | — | $ | — | $ | 2,169,781 | |||||
Short-term borrowings | 230,025 | 230,025 | 230,025 | — | — | ||||||||||
Long-term debt | 15,800 | 10,617 | — | — | 10,617 | ||||||||||
Accrued interest payable | 505 | 505 | 505 | — | — | ||||||||||
Off-balance sheet instruments: | |||||||||||||||
Standby letters of credit | $ | — | $ | — | $ | — | $ | — | $ | — | |||||
Commitments to extend credit | — | — | — | — | — |
Fair Value Measurements at December 31, 2012 | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
(in thousands) | Carrying Amount | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 56,582 | $ | 56,582 | $ | 56,582 | $ | — | $ | — | |||||
Securities | 944,892 | 948,780 | — | 948,780 | — | ||||||||||
Loans, held for sale | 15,183 | 15,415 | — | — | 15,415 | ||||||||||
Loans receivable, net | 1,503,515 | 1,516,839 | — | — | 1,516,839 | ||||||||||
Restricted investments in bank stock | 15,450 | 15,450 | — | — | 15,450 | ||||||||||
Accrued interest receivable | 7,206 | 7,206 | 7,206 | — | — | ||||||||||
Financial liabilities: | |||||||||||||||
Deposits | $ | 2,231,291 | $ | 2,232,789 | $ | — | $ | — | $ | 2,232,789 | |||||
Short-term borrowings | 113,225 | 113,225 | 113,225 | — | — | ||||||||||
Long-term debt | 40,800 | 35,629 | — | — | 35,629 | ||||||||||
Accrued interest payable | 308 | 308 | 308 | — | — | ||||||||||
Off-balance sheet instruments: | |||||||||||||||
Standby letters of credit | $ | — | $ | — | $ | — | $ | — | $ | — | |||||
Commitments to extend credit | — | — | — | — | — |
NOTE 8. | Income Taxes |
• | the effects of and changes in, trade, monetary and fiscal policies, including interest rate policies of the Board of Governors of the Federal Reserve System, including the duration of such policies; |
• | general economic or business conditions, either nationally, regionally or in the communities in which we do business, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and loan performance or a reduced demand for credit; |
• | the effects of ongoing short- and long-term federal budget and tax negotiations and their effects on economic and business conditions in general and our customers in particular; |
• | the effects of the failure of the federal government to reach a deal to raise the debt ceiling and the potential negative results on economic and business conditions; |
• | the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and other changes in financial services’ laws and regulations (including laws concerning taxes, banking, securities and insurance); |
• | possible impacts of the capital and liquidity requirements of the Basel III standards and other regulatory pronouncements; |
• | continued effects of the aftermath of recessionary conditions and the impacts on the economy in general and our customers in particular, including adverse impacts on loan utilization rates as well as delinquencies, defaults and customers' ability to meet credit obligations; |
• | our ability to manage current levels of impaired assets; |
• | continued levels of loan volume origination; |
• | the adequacy of the allowance for loan losses (allowance or ALL); |
• | the impact of changes in Regulation Z and other consumer credit protection laws and regulations; |
• | changes resulting from legislative and regulatory actions with respect to the current economic and financial industry environment; |
• | changes in the Federal Deposit Insurance Corporation (FDIC) deposit fund and the associated premiums that banks pay to the fund; |
• | interest rate, market and monetary fluctuations; |
• | the results of the regulatory examination and supervision process; |
• | unanticipated regulatory or legal proceedings and liabilities and other costs; |
• | compliance with laws and regulatory requirements of federal, state and local agencies; |
• | our ability to continue to grow our business internally or through acquisitions and successful integration of new or acquired entities while controlling costs; |
• | deposit flows; |
• | the willingness of customers to substitute competitors’ products and services for our products and services and vice versa, based on price, quality, relationship or otherwise; |
• | changes in consumer spending and saving habits relative to the financial services we provide; |
• | the ability to hedge certain risks economically; |
• | the loss of certain key officers; |
• | changes in accounting principles, policies and guidelines; |
• | the timely development of competitive new products and services by us and the acceptance of such products and services by customers; |
• | rapidly changing technology; |
• | continued relationships with major customers; |
• | effect of terrorist attacks and threats of actual war; |
• | other economic, competitive, governmental, regulatory and technological factors affecting the Company’s operations, pricing, products and services; |
• | interruption or breach in security of our information systems resulting in failures or disruptions in customer account management, general ledger processing and loan or deposit systems; and |
• | our success at managing the risks involved in the foregoing. |
• | The net income of $4.0 million for the second quarter of 2013 represents an all-time high in quarterly net income for Metro. |
• | Total revenues for the second quarter of 2013 were $29.9 million, up $503,000, or 2%, over total revenues of $29.4 million for the same quarter one year ago. This also represents an all-time high for the Company in quarterly revenue. Total revenues for the first half of 2013 increased $1.2 million, or 2%, over the first half of 2012. |
• | The Company's net interest margin on a fully-taxable basis for the second quarter of 2013 was 3.62%, compared to 3.86% for the second quarter of 2012. The Company's deposit cost of funds for the second quarter was 0.29%, down from 0.39% for the same period one year ago. |
• | Noninterest expenses were down $314,000, or 1%, from the same quarter one year ago. Total noninterest expenses for the first six months of 2013 were down $916,000, or 2%, compared to the first half of 2012. |
• | Net loans grew $139.2 million, or 9%, to $1.61 billion compared to $1.47 billion at June 30, 2012. |
• | The ALL totaled $28.0 million, or 1.72%, of total loans at June 30, 2013 compared to $26.2 million, or 1.75%, of total loans at June 30, 2012. |
• | Total deposits for the second quarter of 2013 increased to $2.17 billion, up $82.9 million, or 4%, over the second quarter one year ago. |
• | Core deposits (all deposits excluding public fund time and brokered deposits) grew $76.3 million, or 4%, over the past twelve months. |
• | Nonperforming assets were 1.81% of total assets at June 30, 2013 compared to 1.62% of total assets one year ago. |
• | Metro's capital levels remain strong with a total risk-based capital ratio of 14.89%, a Tier 1 Leverage ratio of 9.37% and a tangible common equity to tangible assets ratio of 8.55%. |
• | Stockholders' equity totaled $228.5 million, or 8.59% of total assets, at June 30, 2013 and the Company's book value per share was $16.09. |
At or for the Three Months Ended | For the Six Months Ended | |||||||||||||||
(in thousands, except per share data) | June 30, 2013 | June 30, 2012 | % Change | June 30, 2013 | June 30, 2012 | % Change | ||||||||||
Total assets | $ | 2,658,405 | $ | 2,449,801 | 9 | % | ||||||||||
Total loans (net) | 1,605,828 | 1,466,597 | 9 | |||||||||||||
Total deposits | 2,168,759 | 2,085,915 | 4 | |||||||||||||
Total stockholders' equity | 228,468 | 228,101 | — | |||||||||||||
Total revenues | $ | 29,933 | $ | 29,430 | 2 | % | $ | 59,643 | $ | 58,487 | 2 | % | ||||
Provision for loan losses | 1,800 | 2,950 | (39 | ) | 4,100 | 5,450 | (25 | ) | ||||||||
Total noninterest expenses | 22,360 | 22,674 | (1 | ) | 44,689 | 45,605 | (2 | ) | ||||||||
Net income | 4,048 | 2,762 | 47 | 7,693 | 5,446 | 41 | ||||||||||
Diluted net income per common share | 0.28 | 0.19 | 47 | 0.54 | 0.38 | 42 |
Three months ended, | Six months ended, | ||||||||||||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | June 30, 2013 | June 30, 2012 | ||||||||||||||||||||||||||||||
Average | Avg. | Average | Avg. | Average | Avg. | Average | Avg. | ||||||||||||||||||||||||||
(dollars in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||||
Earning Assets | |||||||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||
Taxable | $ | 889,510 | $ | 5,007 | 2.25 | % | $ | 809,219 | $ | 5,567 | 2.75 | % | $ | 903,261 | $ | 10,366 | 2.30 | % | $ | 798,741 | $ | 11,238 | 2.81 | % | |||||||||
Tax-exempt | 29,871 | 284 | 3.80 | 13,696 | 131 | 3.80 | 29,870 | 567 | 3.80 | 9,085 | 180 | 3.96 | |||||||||||||||||||||
Total securities | 919,381 | 5,291 | 2.30 | 822,915 | 5,698 | 2.77 | 933,131 | 10,933 | 2.34 | 807,826 | 11,418 | 2.83 | |||||||||||||||||||||
Federal funds sold | — | — | — | — | — | — | — | — | — | 5,421 | 1 | 0.05 | |||||||||||||||||||||
Total loans receivable | 1,628,073 | 19,908 | 4.85 | 1,492,052 | 19,436 | 5.17 | 1,591,199 | 39,311 | 4.93 | 1,466,762 | 38,508 | 5.21 | |||||||||||||||||||||
Total earning assets | $ | 2,547,454 | $ | 25,199 | 3.93 | % | $ | 2,314,967 | $ | 25,134 | 4.32 | % | $ | 2,524,330 | $ | 50,244 | 3.97 | % | $ | 2,280,009 | $ | 49,927 | 4.35 | % | |||||||||
Sources of Funds | |||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||
Regular savings | $ | 424,474 | $ | 335 | 0.32 | % | $ | 398,407 | $ | 371 | 0.37 | % | $ | 419,414 | $ | 661 | 0.32 | % | $ | 388,317 | $ | 722 | 0.37 | % | |||||||||
Interest checking and money market | 1,039,872 | 733 | 0.28 | 1,015,165 | 984 | 0.39 | 1,058,702 | 1,535 | 0.29 | 1,013,717 | 2,015 | 0.40 | |||||||||||||||||||||
Time deposits | 130,015 | 397 | 1.22 | 162,437 | 588 | 1.46 | 134,298 | 844 | 1.27 | 166,004 | 1,229 | 1.49 | |||||||||||||||||||||
Public time and other noncore deposits | 59,894 | 60 | 0.40 | 52,089 | 57 | 0.44 | 57,423 | 104 | 0.37 | 50,489 | 116 | 0.46 | |||||||||||||||||||||
Total interest-bearing deposits | 1,654,255 | 1,525 | 0.37 | 1,628,098 | 2,000 | 0.49 | 1,669,837 | 3,144 | 0.38 | 1,618,527 | 4,082 | 0.51 | |||||||||||||||||||||
Short-term borrowings | 325,044 | 181 | 0.22 | 116,620 | 74 | 0.25 | 277,243 | 312 | 0.22 | 108,183 | 127 | 0.23 | |||||||||||||||||||||
Long-term debt | 15,800 | 307 | 7.77 | 49,200 | 581 | 4.72 | 26,297 | 667 | 5.07 | 49,200 | 1,162 | 4.72 | |||||||||||||||||||||
Total interest-bearing liabilities | 1,995,099 | 2,013 | 0.40 | 1,793,918 | 2,655 | 0.59 | 1,973,377 | 4,123 | 0.42 | 1,775,910 | 5,371 | 0.61 | |||||||||||||||||||||
Demand deposits (noninterest-bearing) | 440,573 | 420,807 | 436,850 | 407,283 | |||||||||||||||||||||||||||||
Sources to fund earning assets | 2,435,672 | 2,013 | 0.33 | 2,214,725 | 2,655 | 0.48 | 2,410,227 | 4,123 | 0.34 | 2,183,193 | 5,371 | 0.49 | |||||||||||||||||||||
Noninterest-bearing funds (net) | 111,782 | 100,242 | 114,103 | 96,816 | |||||||||||||||||||||||||||||
Total sources to fund earning assets | $ | 2,547,454 | $ | 2,013 | 0.32 | % | $ | 2,314,967 | $ | 2,655 | 0.46 | % | $ | 2,524,330 | $ | 4,123 | 0.33 | % | $ | 2,280,009 | $ | 5,371 | 0.47 | % | |||||||||
Net interest income and margin on a tax-equivalent basis | $ | 23,186 | 3.62 | % | $ | 22,479 | 3.86 | % | $ | 46,121 | 3.64 | % | $ | 44,556 | 3.88 | % | |||||||||||||||||
Tax-exempt adjustment | 587 | 509 | 1,187 | 970 | |||||||||||||||||||||||||||||
Net interest income and margin | $ | 22,599 | 3.52 | % | $ | 21,970 | 3.77 | % | $ | 44,934 | 3.55 | % | $ | 43,586 | 3.80 | % | |||||||||||||||||
Other Balances: | |||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 50,801 | $ | 42,507 | $ | 46,831 | $ | 42,696 | |||||||||||||||||||||||||
Other assets | 90,398 | 98,686 | 91,178 | 100,641 | |||||||||||||||||||||||||||||
Total assets | 2,688,653 | 2,456,160 | 2,662,339 | 2,423,346 | |||||||||||||||||||||||||||||
Other liabilities | 17,725 | 13,754 | 16,763 | 14,522 | |||||||||||||||||||||||||||||
Stockholders' equity | 235,256 | 227,681 | 235,349 | 225,631 |
• | the volume, pricing mix and maturity of interest-earning assets and interest-bearing liabilities; |
• | market interest rate fluctuations; and |
• | the level of nonperforming loans. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
Increase (Decrease) | Increase (Decrease) | ||||||||||||||||||||||
2013 versus 2012 | Due to Changes in (1) | Due to Changes in (1) (2) | |||||||||||||||||||||
(in thousands) | Volume | Rate | Total | Volume | Rate | Total | |||||||||||||||||
Interest on securities: | |||||||||||||||||||||||
Taxable | $ | 414 | $ | (974 | ) | $ | (560 | ) | $ | 1,200 | $ | (2,072 | ) | $ | (872 | ) | |||||||
Tax-exempt | 154 | (1 | ) | 153 | 394 | (7 | ) | 387 | |||||||||||||||
Federal funds sold | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Interest on loans receivable | 1,246 | (774 | ) | 472 | 2,329 | (1,526 | ) | 803 | |||||||||||||||
Total interest income | 1,814 | (1,749 | ) | 65 | 3,922 | (3,605 | ) | 317 | |||||||||||||||
Interest on deposits: | |||||||||||||||||||||||
Regular savings | — | (36 | ) | (36 | ) | 6 | (67 | ) | (61 | ) | |||||||||||||
Interest checking and money market | (25 | ) | (226 | ) | (251 | ) | (19 | ) | (461 | ) | (480 | ) | |||||||||||
Time deposits | (63 | ) | (128 | ) | (191 | ) | (120 | ) | (265 | ) | (385 | ) | |||||||||||
Public funds time | (2 | ) | 5 | 3 | 1 | (13 | ) | (12 | ) | ||||||||||||||
Short-term borrowings | 116 | (9 | ) | 107 | 190 | (5 | ) | 185 | |||||||||||||||
Long-term debt | (209 | ) | (65 | ) | (274 | ) | (428 | ) | (67 | ) | (495 | ) | |||||||||||
Total interest expense | (183 | ) | (459 | ) | (642 | ) | (370 | ) | (878 | ) | (1,248 | ) | |||||||||||
Net increase (decrease) | $ | 1,997 | $ | (1,290 | ) | $ | 707 | $ | 4,292 | $ | (2,727 | ) | $ | 1,565 |
(1) | Changes due to both volume and rate have been allocated on a pro rata basis to either rate or volume. (2) Changes due to the difference in the number of days (2012 was a leap year) are divided between rate and volume columns based on each categories percent of the total difference. |
(dollars in thousands) | June 30, 2013 | % of Total | December 31, 2012 | % of Total | $ Change | % Change | |||||||||||||||
Commercial and industrial | $ | 415,740 | 25 | % | $ | 376,988 | 25 | % | $ | 38,752 | 10 | % | |||||||||
Commercial tax-exempt | 82,455 | 5 | 92,202 | 6 | (9,747 | ) | (11 | ) | |||||||||||||
Owner occupied real estate | 288,702 | 18 | 268,372 | 17 | 20,330 | 8 | |||||||||||||||
Commercial construction and land development | 105,596 | 6 | 100,399 | 7 | 5,197 | 5 | |||||||||||||||
Commercial real estate | 433,628 | 27 | 394,404 | 26 | 39,224 | 10 | |||||||||||||||
Residential | 90,590 | 6 | 83,899 | 5 | 6,691 | 8 | |||||||||||||||
Consumer | 217,155 | 13 | 212,533 | 14 | 4,622 | 2 | |||||||||||||||
Gross loans | 1,633,866 | 100 | % | 1,528,797 | 100 | % | $ | 105,069 | 7 | % | |||||||||||
Less: ALL | 28,038 | 25,282 | 2,756 | 11 | |||||||||||||||||
Net loans receivable | $ | 1,605,828 | $ | 1,503,515 | $ | 102,313 | 7 | % |
(dollars in thousands) | June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | June 30, 2012 | ||||||||||
Nonperforming Assets | |||||||||||||||
Nonaccrual loans: | |||||||||||||||
Commercial and industrial | $ | 12,053 | $ | 12,451 | $ | 11,289 | $ | 17,133 | $ | 16,631 | |||||
Commercial tax-exempt | — | — | — | — | — | ||||||||||
Owner occupied real estate | 4,999 | 3,428 | 3,119 | 3,230 | 3,275 | ||||||||||
Commercial construction and land development | 12,027 | 12,024 | 6,300 | 6,826 | 4,002 | ||||||||||
Commercial real estate | 3,893 | 5,575 | 5,659 | 4,571 | 6,174 | ||||||||||
Residential | 7,133 | 3,295 | 3,203 | 3,149 | 3,233 | ||||||||||
Consumer | 3,422 | 2,517 | 2,846 | 2,304 | 2,123 | ||||||||||
Total nonaccrual loans | 43,527 | 39,290 | 32,416 | 37,213 | 35,438 | ||||||||||
Loans past due 90 days or more and still accruing | — | 1,726 | 220 | 704 | 154 | ||||||||||
Total nonperforming loans | 43,527 | 41,016 | 32,636 | 37,917 | 35,592 | ||||||||||
Foreclosed assets | 4,611 | 2,675 | 2,467 | 4,391 | 4,032 | ||||||||||
Total nonperforming assets | $ | 48,138 | $ | 43,691 | $ | 35,103 | $ | 42,308 | $ | 39,624 | |||||
Troubled Debt Restructurings | |||||||||||||||
Nonaccruing TDRs | $ | 18,817 | $ | 18,927 | $ | 13,247 | $ | 14,283 | $ | 7,924 | |||||
Accruing TDRs | 14,888 | 14,308 | 19,559 | 20,424 | 17,818 | ||||||||||
Total TDRs | $ | 33,705 | $ | 33,235 | $ | 32,806 | $ | 34,707 | $ | 25,742 | |||||
Nonperforming loans to total loans | 2.66 | % | 2.61 | % | 2.13 | % | 2.52 | % | 2.38 | % | |||||
Nonperforming assets to total assets | 1.81 | % | 1.67 | % | 1.33 | % | 1.67 | % | 1.62 | % | |||||
Nonperforming loan coverage | 64 | % | 67 | % | 77 | % | 68 | % | 73 | % | |||||
Nonperforming assets / capital plus ALL | 19 | % | 17 | % | 13 | % | 16 | % | 16 | % |
Three Months Ended | Six Months Ended | |||||
(in thousands) | June 30, 2013 | |||||
Nonaccrual loans beginning balance | $ | 39,290 | $ | 32,416 | ||
Additions | 8,714 | 18,088 | ||||
Principal charge-offs | (1,448 | ) | (2,210 | ) | ||
Pay downs | (948 | ) | (1,982 | ) | ||
Upgrades to accruing status | — | (92 | ) | |||
Transfers to foreclosed assets | (2,081 | ) | (2,693 | ) | ||
Nonaccrual loans ending balance | $ | 43,527 | $ | 43,527 |
Nonaccrual Loans | |||||||||||||||
(dollars in thousands) | June 30, 2013 | March 31, 2013 | December 31, 2012 | September 30, 2012 | June 30, 2012 | ||||||||||
Commercial and Industrial: | |||||||||||||||
Number of loans | 49 | 54 | 50 | 49 | 42 | ||||||||||
Number of loans greater than $1 million | 4 | 5 | 4 | 5 | 5 | ||||||||||
Average outstanding balance of those loans: | |||||||||||||||
Greater than $1 million | $ | 1,872 | $ | 1,703 | $ | 2,024 | $ | 2,445 | $ | 2,474 | |||||
Less than $1 million | $ | 102 | $ | 81 | $ | 70 | $ | 112 | $ | 116 | |||||
Commercial Construction and Land Development: | |||||||||||||||
Number of loans | 10 | 10 | 10 | 9 | 10 | ||||||||||
Number of loans greater than $1 million | 4 | 4 | 2 | 2 | 2 | ||||||||||
Average outstanding balance of those loans: | |||||||||||||||
Greater than $1 million | $ | 2,714 | $ | 2,719 | $ | 2,484 | $ | 2,500 | $ | 1,352 | |||||
Less than $1 million | $ | 197 | $ | 193 | $ | 168 | $ | 262 | $ | 163 |
Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | |||||||||||||
( in thousands) | Average Balance | Average Rate | Average Balance | Average Rate | ||||||||||
Demand deposits: | ||||||||||||||
Noninterest-bearing | $ | 436,850 | $ | 407,283 | ||||||||||
Interest-bearing (money market and checking) | 1,058,702 | 0.29 | % | 1,013,717 | 0.40 | % | ||||||||
Savings | 419,414 | 0.32 | 388,317 | 0.37 | ||||||||||
Time and other noncore deposits | 191,721 | 1.00 | 216,493 | 1.25 | ||||||||||
Total deposits | $ | 2,106,687 | $ | 2,025,810 |
June 30, 2013 | December 31, 2012 | |||
Total stockholders' equity to assets (GAAP) | 8.59 | % | 8.93 | % |
Less: Effect of excluding preferred stock | 0.04 | % | 0.03 | % |
Tangible common equity to tangible assets | 8.55 | % | 8.90 | % |
Company | Bank | Minimum Regulatory Requirements | Regulatory Guidelines for “Well Capitalized” | ||||||||||
June 30, 2013 | December 31, 2012 | June 30, 2013 | December 31, 2012 | ||||||||||
Total Capital | 14.89 | % | 15.22 | % | 14.33 | % | 14.59 | % | 8.00 | % | 10.00 | % | |
Tier 1 Capital | 13.63 | 13.97 | 13.08 | 13.34 | 4.00 | 6.00 | |||||||
Leverage ratio (to total average assets) | 9.37 | 9.61 | 8.99 | 9.18 | 4.00 | 5.00 |
June 30, 2013 | June 30, 2012 | |||||||||||
12 Months | 24 Months | 12 Months | 24 Months | |||||||||
Plus 300 | (0.23 | )% | 3.51 | % | 1.68 | % | 6.57 | % | ||||
Plus 200 | (0.39 | ) | 2.06 | 1.03 | 4.39 | |||||||
Plus 100 | (0.47 | ) | 0.58 | 0.36 | 1.99 |
METRO BANCORP, INC. | ||
(Registrant) | ||
8/9/2013 | /s/ Gary L. Nalbandian | |
(Date) | Gary L. Nalbandian | |
President/CEO | ||
8/9/2013 | /s/ Mark A. Zody | |
(Date) | Mark A. Zody | |
Chief Financial Officer | ||
11 | Computation of Net Income Per Common Share |
31.1 | Certification of Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act) |
31.2 | Certification of Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under Exchange Act |
32 | Certification of the Company's Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
101 | Interactive data file containing the following financial statements formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets at June 30, 2013 and December 31, 2012; (ii) the Consolidated Statements of Operations for the three months and six months ended June 30, 2013 and 2012; (iii) the Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2013 and 2012; (iv) the Consolidated Statements of Stockholders' Equity for the six months ended June 30, 2013 and 2012; (v) the Consolidated Statements of Cash Flows for the six months ended June 30, 2013 and 2012; and, (vi) the Notes to Consolidated Financial Statements. As provided in Rule 406T of Regulation S-T, this interactive data file shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, and shall not be deemed "filed" or part of any registration statement or prospectus for purposes of Section 11 or 12 under the Securities Act of 1933, or otherwise subject to liability under those sections. |
Exhibit 11. | Metro Bancorp, Inc. |
Computation of Net Income Per Common Share |
For the Quarter Ended June 30, 2013 | ||||||||||||
Income | Shares | Per Share Amount | ||||||||||
Basic Earnings Per Common Share: | ||||||||||||
Net income | $ | 4,048,000 | ||||||||||
Preferred stock dividends | (20,000 | ) | ||||||||||
Income available to common stockholders | 4,028,000 | 14,136,736 | $ | 0.28 | ||||||||
Effect of Dilutive Securities: | ||||||||||||
Stock options | 106,042 | |||||||||||
Diluted Earnings Per Common Share: | ||||||||||||
Income available to common stockholders plus assumed conversions | $ | 4,028,000 | 14,242,778 | $ | 0.28 | |||||||
For the Quarter Ended June 30, 2012 | ||||||||||||
Income | Shares | Per Share Amount | ||||||||||
Basic Earnings Per Common Share: | ||||||||||||
Net income | $ | 2,762,000 | ||||||||||
Preferred stock dividends | (20,000 | ) | ||||||||||
Income available to common stockholders | 2,742,000 | 14,127,500 | $ | 0.19 | ||||||||
Effect of Dilutive Securities: | ||||||||||||
Stock options | — | |||||||||||
Diluted Earnings Per Common Share: | ||||||||||||
Income available to common stockholders plus assumed conversions | $ | 2,742,000 | 14,127,500 | $ | 0.19 | |||||||
For the Six Months Ended June 30, 2013 | ||||||||||||
Income | Shares | Per Share Amount | ||||||||||
Basic Earnings Per Common Share: | ||||||||||||
Net income | $ | 7,693,000 | ||||||||||
Preferred stock dividends | (40,000 | ) | ||||||||||
Income available to common stockholders | 7,653,000 | 14,134,341 | $ | 0.54 | ||||||||
Effect of Dilutive Securities: | ||||||||||||
Stock options | 66,181 | |||||||||||
Diluted Earnings Per Common Share: | ||||||||||||
Income available to common stockholders plus assumed conversions | $ | 7,653,000 | 14,200,522 | $ | 0.54 | |||||||
For the Six Months Ended June 30, 2012 | ||||||||||||
Income | Shares | Per Share Amount | ||||||||||
Basic Earnings Per Common Share: | ||||||||||||
Net income | $ | 5,446,000 | ||||||||||
Preferred stock dividends | (40,000 | ) | ||||||||||
Income available to common stockholders | 5,406,000 | 14,126,800 | $ | 0.38 | ||||||||
Effect of Dilutive Securities: | ||||||||||||
Stock options | — | |||||||||||
Diluted Earnings Per Common Share: | ||||||||||||
Income available to common stockholders plus assumed conversions | $ | 5,406,000 | 14,126,800 | $ | 0.38 |
1. | I have reviewed this report on Form 10-Q of Metro Bancorp, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
1. | I have reviewed this report on Form 10-Q of Metro Bancorp, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
• | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended and |
• | To my knowledge, the information contained in the Report fairly represents, in all material respects, the Company's financial condition and results of operations as of and for the period covered by this Report. |
/s/ Gary L. Nalbandian |
Gary L. Nalbandian, Chief Executive Officer |
/s/ Mark A. Zody |
Mark A. Zody, Chief Financial Officer |
Income Taxes
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The tax provision for federal income taxes was $1.7 million for the second quarter of 2013, compared to $1.0 million for the same period in 2012. The effective tax rate was 30% and 27% for the quarters ended June 30, 2013 and June 30, 2012, respectively. The reason for the increase in the effective tax rate for the second quarter of 2013 over the same quarter last year was the result of a higher statutory rate, higher overall pretax income partially offset by the proportion of tax free income to the Company's earnings before taxes which was higher during the second quarter of 2012. The tax provision for federal income taxes was $3.2 million for the first six months of 2013, compared to $2.0 million for the same period in 2012. The effective tax rates were 29% and 27% for the first six months months ended June 30, 2013 and June 30, 2012, respectively. The variance in effective tax rates was primarily the result of a higher statutory rate, higher overall pretax income during the first six months of 2013 partially offset by the proportion of tax free income to the Company's earnings before taxes which was higher during the first six months of 2012. The Company's statutory tax rate was 35% for the six months months ended June 30, 2013 compared to 34% in the first six months of 2012. At June 30, 2013, the Company had a net deferred tax asset of $11.6 million. An analysis was conducted to determine if a valuation allowance against its deferred tax assets was required. The Company used current forecasts of future expected income, possible tax planning strategies, current and future economic and business conditions (such as the possibility of a decrease in real estate value for properties the Bank holds as collateral on loans), the probability that taxable income will continue to be generated in future periods and the cumulative losses recorded in previous years to make the assessment. Management concluded that a valuation allowance was not necessary at June 30, 2013. |
Consolidated Statements of Income (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Loans receivable, including fees: | ||||
Taxable | $ 18,516 | $ 18,075 | $ 36,487 | $ 35,835 |
Tax-exempt | 905 | 897 | 1,836 | 1,764 |
Securities: | ||||
Taxable | 5,007 | 5,567 | 10,366 | 11,238 |
Tax-exempt | 184 | 86 | 368 | 119 |
Federal funds sold | 0 | 0 | 0 | 1 |
Total interest income | 24,612 | 24,625 | 49,057 | 48,957 |
Interest Expense | ||||
Deposits | 1,525 | 2,000 | 3,144 | 4,082 |
Short-term borrowings | 181 | 74 | 312 | 127 |
Long-term debt | 307 | 581 | 667 | 1,162 |
Total interest expense | 2,013 | 2,655 | 4,123 | 5,371 |
Net interest income | 22,599 | 21,970 | 44,934 | 43,586 |
Provision for loan losses | 1,800 | 2,950 | 4,100 | 5,450 |
Net interest income after provision for loan losses | 20,799 | 19,020 | 40,834 | 38,136 |
Noninterest Income | ||||
Service charges, fees and other operating income | 7,093 | 7,076 | 14,025 | 13,953 |
Gains on sales of loans | 250 | 372 | 663 | 601 |
Total fees and other income | 7,343 | 7,448 | 14,688 | 14,554 |
Other-than-temporary impairment (OTTI) losses | 0 | 0 | 0 | (649) |
Portion recognized in other comprehensive income (before taxes) | 0 | 0 | 0 | 0 |
Net impairment loss on investment securities | 0 | 0 | 0 | (649) |
Net gains (losses) on sales/calls of securities | (9) | 12 | 21 | 996 |
Total noninterest income | 7,334 | 7,460 | 14,709 | 14,901 |
Noninterest Expenses | ||||
Salaries and employee benefits | 10,391 | 10,166 | 21,216 | 20,704 |
Occupancy | 2,150 | 2,050 | 4,273 | 4,133 |
Furniture and equipment | 1,185 | 1,238 | 2,272 | 2,504 |
Advertising and marketing | 448 | 381 | 817 | 801 |
Data processing | 3,276 | 3,281 | 6,482 | 6,663 |
Regulatory assessments and related costs | 551 | 849 | 1,085 | 1,675 |
Telephone | 875 | 833 | 1,828 | 1,707 |
Loan expense | 1,044 | 321 | 1,369 | 691 |
Foreclosed real estate | 71 | 781 | 215 | 1,144 |
Pennsylvania shares tax | 573 | 515 | 1,138 | 1,019 |
Other | 1,796 | 2,259 | 3,994 | 4,564 |
Total noninterest expenses | 22,360 | 22,674 | 44,689 | 45,605 |
Income before taxes | 5,773 | 3,806 | 10,854 | 7,432 |
Provision for federal income taxes | 1,725 | 1,044 | 3,161 | 1,986 |
Net income | $ 4,048 | $ 2,762 | $ 7,693 | $ 5,446 |
Net Income per Common Share | ||||
Basic (in dollars per share) | $ 0.28 | $ 0.19 | $ 0.54 | $ 0.38 |
Diluted (in dollars per share) | $ 0.28 | $ 0.19 | $ 0.54 | $ 0.38 |
Average Common and Common Equivalent Shares Outstanding | ||||
Basic (in shares) | 14,137 | 14,128 | 14,134 | 14,127 |
Diluted (in shares) | 14,243 | 14,128 | 14,201 | 14,127 |
Summary of Significant Accounting Policies
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Consolidated Financial Statements The consolidated balance sheet at December 31, 2012 has been derived from audited consolidated financial statements and the consolidated interim financial statements included herein have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements were prepared in accordance with GAAP for interim financial statements and with instructions for Form 10-Q and Regulation S-X Section 210.10-01. Further information on Metro Bancorp, Inc.'s (Metro or the Company) accounting policies are available in Note 1 (Significant Accounting Policies) of the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. The accompanying consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented. Such adjustments are of a normal, recurring nature. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. Events occurring subsequent to the balance sheet through the date of issuance have been evaluated for potential recognition or disclosure in the consolidated financial statements. The results for the six months ended June 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. The consolidated financial statements include the accounts of the Company and its consolidated subsidiaries including Metro Bank (the Bank). All material intercompany transactions have been eliminated. Use of Estimates The consolidated financial statements are prepared in conformity with GAAP. Accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and require disclosure of contingent assets and liabilities. In the opinion of management, all adjustments considered necessary for fair presentation have been included and are of a normal, recurring nature. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses (allowance or ALL), impaired loans, the valuation of foreclosed assets, the valuation of securities available for sale, the valuation of deferred tax assets, the determination of other-than-temporary impairment (OTTI) on the Company's investment securities portfolio and fair value measurements. |
Summary of Significant Accounting Policies (Policies)
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Accounting Policies [Abstract] | |
Consolidated Financial Statements | Consolidated Financial Statements The consolidated balance sheet at December 31, 2012 has been derived from audited consolidated financial statements and the consolidated interim financial statements included herein have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements were prepared in accordance with GAAP for interim financial statements and with instructions for Form 10-Q and Regulation S-X Section 210.10-01. Further information on Metro Bancorp, Inc.'s (Metro or the Company) accounting policies are available in Note 1 (Significant Accounting Policies) of the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. The accompanying consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented. Such adjustments are of a normal, recurring nature. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. Events occurring subsequent to the balance sheet through the date of issuance have been evaluated for potential recognition or disclosure in the consolidated financial statements. The results for the six months ended June 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. The consolidated financial statements include the accounts of the Company and its consolidated subsidiaries including Metro Bank (the Bank). All material intercompany transactions have been eliminated. |
Use of Estimates | Use of Estimates The consolidated financial statements are prepared in conformity with GAAP. Accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and require disclosure of contingent assets and liabilities. In the opinion of management, all adjustments considered necessary for fair presentation have been included and are of a normal, recurring nature. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses (allowance or ALL), impaired loans, the valuation of foreclosed assets, the valuation of securities available for sale, the valuation of deferred tax assets, the determination of other-than-temporary impairment (OTTI) on the Company's investment securities portfolio and fair value measurements. |
Loans Receivable and Allowance for Loan Losses (Troubled Debt Restructurings on Loan Receivables) (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
concession
|
Jun. 30, 2013
QTD [Member]
Contracts
|
Jun. 30, 2012
QTD [Member]
Contracts
|
Jun. 30, 2013
YTD [Member]
Contracts
|
Jun. 30, 2012
YTD [Member]
Contracts
|
Jun. 30, 2013
Forbearance Agreement [Member]
Owner occupied real estate [Member]
QTD [Member]
Contracts
|
Jun. 30, 2012
Forbearance Agreement [Member]
Owner occupied real estate [Member]
QTD [Member]
Contracts
|
Jun. 30, 2013
Forbearance Agreement [Member]
Owner occupied real estate [Member]
YTD [Member]
Contracts
|
Jun. 30, 2012
Forbearance Agreement [Member]
Owner occupied real estate [Member]
YTD [Member]
Contracts
|
Jun. 30, 2013
Material Extension of Time [Member]
Commercial and industrial [Member]
QTD [Member]
Contracts
|
Jun. 30, 2012
Material Extension of Time [Member]
Commercial and industrial [Member]
QTD [Member]
Contracts
|
Jun. 30, 2013
Material Extension of Time [Member]
Commercial and industrial [Member]
YTD [Member]
Contracts
|
Jun. 30, 2012
Material Extension of Time [Member]
Commercial and industrial [Member]
YTD [Member]
Contracts
|
Jun. 30, 2013
Material Extension of Time [Member]
Commercial construction and land development [Member]
QTD [Member]
Contracts
|
Jun. 30, 2012
Material Extension of Time [Member]
Commercial construction and land development [Member]
QTD [Member]
Contracts
|
Jun. 30, 2013
Material Extension of Time [Member]
Commercial construction and land development [Member]
YTD [Member]
Contracts
|
Jun. 30, 2012
Material Extension of Time [Member]
Commercial construction and land development [Member]
YTD [Member]
Contracts
|
Jun. 30, 2013
Material Extension of Time [Member]
Commercial real estate [Member]
QTD [Member]
Contracts
|
Jun. 30, 2012
Material Extension of Time [Member]
Commercial real estate [Member]
QTD [Member]
Contracts
|
Jun. 30, 2013
Material Extension of Time [Member]
Commercial real estate [Member]
YTD [Member]
Contracts
|
Jun. 30, 2012
Material Extension of Time [Member]
Commercial real estate [Member]
YTD [Member]
Contracts
|
Jun. 30, 2013
Material Extension of Time [Member]
Residential [Member]
QTD [Member]
Contracts
|
Jun. 30, 2012
Material Extension of Time [Member]
Residential [Member]
QTD [Member]
Contracts
|
Jun. 30, 2013
Material Extension of Time [Member]
Residential [Member]
YTD [Member]
Contracts
|
Jun. 30, 2012
Material Extension of Time [Member]
Residential [Member]
YTD [Member]
Contracts
|
Jun. 30, 2013
Material Extension of Time [Member]
Consumer [Member]
QTD [Member]
Contracts
|
Jun. 30, 2012
Material Extension of Time [Member]
Consumer [Member]
QTD [Member]
Contracts
|
Jun. 30, 2013
Material Extension of Time [Member]
Consumer [Member]
YTD [Member]
Contracts
|
Jun. 30, 2012
Material Extension of Time [Member]
Consumer [Member]
YTD [Member]
Contracts
|
Jun. 30, 2013
Combination of Concessions [Member]
Residential [Member]
QTD [Member]
Contracts
|
Jun. 30, 2012
Combination of Concessions [Member]
Residential [Member]
QTD [Member]
Contracts
|
Jun. 30, 2013
Combination of Concessions [Member]
Residential [Member]
YTD [Member]
Contracts
|
Jun. 30, 2012
Combination of Concessions [Member]
Residential [Member]
YTD [Member]
Contracts
|
Jun. 30, 2013
Change in Amortization Period [Member]
Commercial and industrial [Member]
QTD [Member]
Contracts
|
Jun. 30, 2012
Change in Amortization Period [Member]
Commercial and industrial [Member]
QTD [Member]
Contracts
|
Jun. 30, 2013
Change in Amortization Period [Member]
Commercial and industrial [Member]
YTD [Member]
Contracts
|
Jun. 30, 2012
Change in Amortization Period [Member]
Commercial and industrial [Member]
YTD [Member]
Contracts
|
Jun. 30, 2013
Change in Amortization Period [Member]
Commercial real estate [Member]
QTD [Member]
Contracts
|
Jun. 30, 2012
Change in Amortization Period [Member]
Commercial real estate [Member]
QTD [Member]
Contracts
|
Jun. 30, 2013
Change in Amortization Period [Member]
Commercial real estate [Member]
YTD [Member]
Contracts
|
Jun. 30, 2012
Change in Amortization Period [Member]
Commercial real estate [Member]
YTD [Member]
Contracts
|
|
Financing Receivable, Modifications [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Number of Contracts | 12 | 4 | 17 | 11 | 0 | 0 | 1 | 0 | 0 | 1 | 0 | 1 | 1 | 1 | 4 | 5 | 0 | 0 | 0 | 1 | 0 | 1 | 1 | 1 | 0 | 1 | 0 | 2 | 0 | 0 | 0 | 1 | 8 | 0 | 8 | 0 | 3 | 0 | 3 | 0 | |
Recorded Investment at Time of Restructure | $ 5,997 | $ 2,071 | $ 7,501 | $ 5,396 | $ 0 | $ 0 | $ 193 | $ 0 | $ 0 | $ 1,262 | $ 0 | $ 1,262 | $ 1,851 | $ 351 | $ 2,902 | $ 3,396 | $ 0 | $ 0 | $ 0 | $ 68 | $ 0 | $ 280 | $ 260 | $ 280 | $ 0 | $ 178 | $ 0 | $ 195 | $ 0 | $ 0 | $ 0 | $ 195 | $ 1,204 | $ 0 | $ 1,204 | $ 0 | $ 2,942 | $ 0 | $ 2,942 | $ 0 | |
Number of concessions for classifying loans receivable as TDR | 1 |
Securities (Cumulative life credit losses recognized in earnings) (Details) (Private-label CMOs [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Private-label CMOs [Member]
|
||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Cumulative OTTI credit losses, beginning balance | $ 0 | $ 2,293 | $ 0 | $ 2,949 |
Additional increases for OTTI previously recognized when there is no intent to sell and no requirement to sell before recovery of amortized cost basis | 0 | 0 | 0 | 649 |
Reduction due to credit impaired securities sold | 0 | (2,041) | 0 | (3,346) |
Cumulative OTTI credit losses recognized for securities still held, ending balance | $ 0 | $ 252 | $ 0 | $ 252 |
Loan Commitments and Standby Letters of Credit (Details) (USD $)
|
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Commitments to Extend Credit [Member]
|
||
Guarantor Obligations [Line Items] | ||
Loan commitments, unused | $ 528,900,000 | |
Standby Letters of Credit [Member]
|
||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 48,000 | 48,000 |
Standby letters of credit | $ 38,807,000 | $ 34,052,000 |
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Carrying Amount [Member]
|
||
Financial assets: | ||
Cash and cash equivalents | $ 48,011 | $ 56,582 |
Securities | 863,462 | 944,892 |
Loans held for sale | 7,160 | 15,183 |
Loans, net | 1,605,828 | 1,503,515 |
Restricted investments in bank stock | 23,819 | 15,450 |
Accrued interest receivable | 7,290 | 7,206 |
Financial liabilities: | ||
Deposits | 2,168,759 | 2,231,291 |
Short-term borrowings | 230,025 | 113,225 |
Long-term debt | 15,800 | 40,800 |
Accrued interest payable | 505 | 308 |
Carrying Amount [Member] | Commitments to Extend Credit [Member]
|
||
Financial liabilities: | ||
Off-balance sheet instruments | 0 | 0 |
Carrying Amount [Member] | Standby Letters of Credit [Member]
|
||
Financial liabilities: | ||
Off-balance sheet instruments | 0 | 0 |
Fair Value [Member]
|
||
Financial assets: | ||
Cash and cash equivalents | 48,011 | 56,582 |
Securities | 855,423 | 948,780 |
Loans held for sale | 7,199 | 15,415 |
Loans, net | 1,614,277 | 1,516,839 |
Restricted investments in bank stock | 23,819 | 15,450 |
Accrued interest receivable | 7,290 | 7,206 |
Financial liabilities: | ||
Deposits | 2,169,781 | 2,232,789 |
Short-term borrowings | 230,025 | 113,225 |
Long-term debt | 10,617 | 35,629 |
Accrued interest payable | 505 | 308 |
Fair Value [Member] | Commitments to Extend Credit [Member]
|
||
Financial liabilities: | ||
Off-balance sheet instruments | 0 | 0 |
Fair Value [Member] | Standby Letters of Credit [Member]
|
||
Financial liabilities: | ||
Off-balance sheet instruments | 0 | 0 |
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
|
||
Financial assets: | ||
Cash and cash equivalents | 48,011 | 56,582 |
Securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Restricted investments in bank stock | 0 | 0 |
Accrued interest receivable | 7,290 | 7,206 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Short-term borrowings | 230,025 | 113,225 |
Long-term debt | 0 | 0 |
Accrued interest payable | 505 | 308 |
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | Commitments to Extend Credit [Member]
|
||
Financial liabilities: | ||
Off-balance sheet instruments | 0 | 0 |
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | Standby Letters of Credit [Member]
|
||
Financial liabilities: | ||
Off-balance sheet instruments | 0 | 0 |
Fair Value [Member] | Significant Other Observable Inputs, Level 2 [Member]
|
||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities | 855,423 | 948,780 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Restricted investments in bank stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Fair Value [Member] | Significant Other Observable Inputs, Level 2 [Member] | Commitments to Extend Credit [Member]
|
||
Financial liabilities: | ||
Off-balance sheet instruments | 0 | 0 |
Fair Value [Member] | Significant Other Observable Inputs, Level 2 [Member] | Standby Letters of Credit [Member]
|
||
Financial liabilities: | ||
Off-balance sheet instruments | 0 | 0 |
Fair Value [Member] | Significant Unobservable Inputs, Level 3 [Member]
|
||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities | 0 | 0 |
Loans held for sale | 7,199 | 15,415 |
Loans, net | 1,614,277 | 1,516,839 |
Restricted investments in bank stock | 23,819 | 15,450 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 2,169,781 | 2,232,789 |
Short-term borrowings | 0 | 0 |
Long-term debt | 10,617 | 35,629 |
Accrued interest payable | 0 | 0 |
Fair Value [Member] | Significant Unobservable Inputs, Level 3 [Member] | Commitments to Extend Credit [Member]
|
||
Financial liabilities: | ||
Off-balance sheet instruments | 0 | 0 |
Fair Value [Member] | Significant Unobservable Inputs, Level 3 [Member] | Standby Letters of Credit [Member]
|
||
Financial liabilities: | ||
Off-balance sheet instruments | $ 0 | $ 0 |
Securities (Gains (Losses) on the sales of debt securities and credit losses for OTTI of investments) (Details) (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Gain (Loss) on Investments [Line Items] | ||||
Gross Realized Gains | $ 12,000 | |||
Gross Realized (Losses) | (9,000) | |||
Net Gains (Losses) | (357,000) | 664,000 | ||
Debt Securities [Member]
|
||||
Gain (Loss) on Investments [Line Items] | ||||
Gross Realized Gains | 363,000 | 626,000 | 1,183,000 | 2,495,000 |
Gross Realized (Losses) | (372,000) | (614,000) | (1,162,000) | (1,499,000) |
OTTI Credit Losses | 0 | 0 | 0 | (649,000) |
Net Gains (Losses) | $ (9,000) | $ 12,000 | $ 21,000 | $ 347,000 |
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Taxes, unrealized holding gains (losses) arising during the period | $ (6,759) | $ (631) | $ (8,137) | $ 1,147 |
Taxes, reclassification adjustment for net realized (gains) losses on securities recorded in income | 2 | 105 | 124 | (226) |
Taxes, reclassification for OTTI credit losses recorded in income | $ 0 | $ 0 | $ 0 | $ 221 |
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Common stock, shares issued under stock option plans | 6,255 | 0 |
Tax benefit on exercise of stock options | $ 7 | $ 0 |
Common stock, shares issued under employee stock purchase plan (shares) | 10 | 20 |
Common stock, shares issued in connection with dividend reinvestment and stock purchase plan (shares) | 1,272 | 3,100 |
Stock-based Compensation
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-based Compensation The fair value of each stock option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted-average assumptions for options granted during the six months ended June 30, 2013 and 2012, respectively: risk-free interest rates of 1.4% and 1.7%; volatility factors of the expected market price of the Company's common stock of 41% and 48%; assumed forfeiture rates of 11.16% and 8.97%; weighted-average expected lives of the options of 7.5 years for both June 30, 2013 and June 30, 2012; and no cash dividends. Using these assumptions, the weighted-average fair value of options granted for the six months ended June 30, 2013 and 2012 was $7.54 and $5.99 per option, respectively. In the first six months of 2013, the Company granted 126,271 options to purchase shares of the Company's stock at exercise prices ranging from $16.53 to $17.10 per share. The Company recorded stock-based compensation expense of approximately $499,000 and $423,000 during the first six months ended June 30, 2013 and June 30, 2012, respectively. In accordance with Financial Accounting Standards Board (FASB) guidance on stock-based payments, during the first quarters of 2013 and 2012 the Company reversed $135,000 and $230,000, respectively, of expense that had been recorded in prior periods as a result of the reconcilement of projected option forfeitures to actual option forfeitures for all stock options granted during the first quarters of 2009 and 2008, respectively. |
Fair Value Measurements (Financial Assets Measured at Fair Value on Recurring Basis) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | $ 644,668 | |
Residential MBSs [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 67,105 | |
Fair value measurements, recurring [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 644,668 | 675,109 |
Fair value measurements, recurring [Member] | Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements, recurring [Member] | Significant Other Observable Inputs, Level 2 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 644,668 | 675,109 |
Fair value measurements, recurring [Member] | Significant Unobservable Inputs, Level 3 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements, recurring [Member] | U.S. Government agency securities [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 31,003 | 33,761 |
Fair value measurements, recurring [Member] | U.S. Government agency securities [Member] | Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements, recurring [Member] | U.S. Government agency securities [Member] | Significant Other Observable Inputs, Level 2 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 31,003 | 33,761 |
Fair value measurements, recurring [Member] | U.S. Government agency securities [Member] | Significant Unobservable Inputs, Level 3 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements, recurring [Member] | Residential MBSs [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 67,105 | 57,210 |
Fair value measurements, recurring [Member] | Residential MBSs [Member] | Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements, recurring [Member] | Residential MBSs [Member] | Significant Other Observable Inputs, Level 2 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 67,105 | 57,210 |
Fair value measurements, recurring [Member] | Residential MBSs [Member] | Significant Unobservable Inputs, Level 3 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements, recurring [Member] | Collateralized Mortgage Obligations [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 520,829 | 556,867 |
Fair value measurements, recurring [Member] | Collateralized Mortgage Obligations [Member] | Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements, recurring [Member] | Collateralized Mortgage Obligations [Member] | Significant Other Observable Inputs, Level 2 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 520,829 | 556,867 |
Fair value measurements, recurring [Member] | Collateralized Mortgage Obligations [Member] | Significant Unobservable Inputs, Level 3 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements, recurring [Member] | Municipal Securities [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 25,731 | 27,271 |
Fair value measurements, recurring [Member] | Municipal Securities [Member] | Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Fair value measurements, recurring [Member] | Municipal Securities [Member] | Significant Other Observable Inputs, Level 2 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | 25,731 | 27,271 |
Fair value measurements, recurring [Member] | Municipal Securities [Member] | Significant Unobservable Inputs, Level 3 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Securities available for sale | $ 0 | $ 0 |