Delaware
(State or other jurisdiction
of incorporation)
|
000-30421
(Commission File Number)
|
95-4788120
(IRS Employer
Identification No.)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
(a)
|
Financial Statements of Business Acquired.
|
(b)
|
Pro Forma Financial Information.
|
(d)
|
Exhibits
|
Exhibit No.
|
|
Description
|
99.1
|
Unaudited consolidated balance sheets of Central Bancorp, Inc. as of June 30, 2014 and the consolidated statements of operations, comprehensive income (loss), changes in stockholders’ equity and cash flows for the six months ended June 30, 2014 and 2013
|
99.2
|
Audited consolidated balance sheets of Central Bancorp, Inc. as of December 31, 2013 and 2012 and the consolidated statements of operations, comprehensive income (loss), changes in stockholders’ equity and cash flows for the years then ended
|
99.3
|
Unaudited pro forma combined condensed consolidated financial statements, relating to the acquisition of Central Bancorp Inc., by Hanmi Financial Corporation as of June 30, 2014, and for the year ended December 31, 2013 and the six months ended June 30, 2014
|
Hanmi Financial Corporation
|
|
Dated: November 12, 2014
|
|
By: /s/ C. G. Kum
|
|
Name: C. G. Kum
|
|
Title: President and Chief Executive Officer
|
INTERIM FINANCIAL STATEMENTS | ||
CONSOLIDATED BALANCE SHEETS | 3 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | 4 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | 5 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY | 6 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | 7 | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | 9 |
June 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
ASSETS
|
(Unaudited)
|
|||||||
Cash and due from banks
|
$ | 12,712 | $ | 15,499 | ||||
Interest bearing deposits in other banks
|
103,991 | 289,664 | ||||||
Total cash and cash equivalents
|
116,703 | 305,163 | ||||||
Securities available for sale
|
669,744 | 321,825 | ||||||
Loans, net of allowance of $47,031 and $65,097
|
361,623 | 576,226 | ||||||
Loss share receivable and indemnification asset
|
17,865 | 92,660 | ||||||
Accrued interest receivable
|
2,947 | 3,691 | ||||||
Small Business Administration (SBA) receivable, net
|
6,918 | 12,689 | ||||||
Bank owned life insurance
|
18,294 | 18,254 | ||||||
Federal Home Loan Bank (FHLB) stock
|
1,193 | 1,189 | ||||||
Other real estate owned, net of valuation reserve
|
29,477 | 34,349 | ||||||
Premises and equipment, net
|
22,629 | 23,388 | ||||||
Core deposit intangible
|
1,042 | 1,255 | ||||||
Federal income tax receivable
|
21,898 | 34,193 | ||||||
Deferred tax asset
|
7,200 | - | ||||||
Other assets
|
4,213 | 4,562 | ||||||
Total assets
|
$ | 1,281,746 | $ | 1,429,444 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Noninterest bearing deposits
|
$ | 132,185 | $ | 135,848 | ||||
Interest bearing deposits
|
975,113 | 1,115,258 | ||||||
Total deposits
|
1,107,298 | 1,251,106 | ||||||
Rescinded stock obligation
|
20,501 | 19,963 | ||||||
FHLB advances
|
10,000 | 10,000 | ||||||
Accrued interest payable
|
1,963 | 1,783 | ||||||
Subordinated debentures
|
26,805 | 26,805 | ||||||
Deferred compensation
|
305 | 380 | ||||||
Supplemental executive retirement plan
|
3,767 | 3,784 | ||||||
Deferred tax liability
|
- | 180 | ||||||
State income tax payable
|
4,117 | 4,318 | ||||||
Accrued expenses and other liabilities
|
13,225 | 18,548 | ||||||
Total liabilities
|
1,187,981 | 1,336,867 | ||||||
Preferred stock (liquidation preference of $23,625 as of
|
||||||||
June 30, 2014 and December 31, 2013)
|
23,625 | 23,585 | ||||||
Common stock ($1.00 par, 2,843,065 outstanding at
|
||||||||
June 30, 2014 and December 31, 2013)
|
2,843 | 2,843 | ||||||
Additional paid-in capital
|
9,315 | 9,315 | ||||||
Retained earnings
|
54,363 | 57,852 | ||||||
Accumulated other comprehensive income(loss)
|
3,817 | (820 | ) | |||||
Treasury stock, 8,983 shares at June 30, 2014
|
||||||||
and December 31, 2013
|
(198 | ) | (198 | ) | ||||
Total stockholders’ equity
|
93,765 | 92,577 | ||||||
Total liabilities and stockholders’ equity
|
$ | 1,281,746 | $ | 1,429,444 |
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Interest income:
|
||||||||||||||||
Loans
|
$ | 9,451 | $ | 16,064 | $ | 21,143 | $ | 33,956 | ||||||||
Securities
|
3,075 | 568 | 5,237 | 1,198 | ||||||||||||
Deposits in other banks
|
100 | 374 | 244 | 658 | ||||||||||||
Other
|
4 | 3 | 7 | 7 | ||||||||||||
Total interest income
|
12,630 | 17,009 | 26,631 | 35,819 | ||||||||||||
Interest expense:
|
||||||||||||||||
Deposits
|
2,908 | 4,267 | 5,898 | 9,025 | ||||||||||||
FHLB advances
|
24 | 121 | 48 | 243 | ||||||||||||
Subordinated debentures
|
117 | 353 | 232 | 471 | ||||||||||||
Rescinded stock obligation
|
268 | 32 | 538 | 299 | ||||||||||||
Total interest expense
|
3,317 | 4,773 | 6,716 | 10,038 | ||||||||||||
Net interest income
|
9,313 | 12,236 | 19,915 | 25,781 | ||||||||||||
Provision (negative provision) for loan losses
|
(2,386 | ) | 2,886 | (8,930 | ) | 2,145 | ||||||||||
Net interest income after provision for loan losses
|
11,699 | 9,350 | 28,845 | 23,636 | ||||||||||||
Noninterest income (loss):
|
||||||||||||||||
Net loss on assets covered by FDIC loss share agreements
|
(9,499 | ) | (3,403 | ) | (20,985 | ) | (3,437 | ) | ||||||||
Gain on purchased credit impaired loans
|
3,497 | 4,651 | 10,929 | 4,684 | ||||||||||||
Service charges on deposit accounts
|
1,085 | 1,140 | 2,247 | 2,305 | ||||||||||||
Net servicing fees
|
328 | 460 | 697 | 922 | ||||||||||||
Gain on sale of loans
|
(1 | ) | - | 142 | - | |||||||||||
Gain on sale of securities
|
1,087 | - | 1,087 | - | ||||||||||||
Loss on disposal of premises and equipment
|
(11 | ) | - | (11 | ) | - | ||||||||||
Other
|
235 | 447 | 377 | 1,114 | ||||||||||||
Total noninterest income (loss)
|
(3,279 | ) | 3,295 | (5,517 | ) | 5,588 | ||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
6,422 | 6,077 | 12,471 | 12,360 | ||||||||||||
Occupancy and equipment
|
1,685 | 1,853 | 3,514 | 3,704 | ||||||||||||
Professional fees
|
1,729 | 1,640 | 3,334 | 3,059 | ||||||||||||
Data processing services
|
461 | 559 | 921 | 1,152 | ||||||||||||
Regulatory fees
|
684 | 989 | 1,424 | 1,950 | ||||||||||||
Loan and collection fees
|
1,961 | 1,190 | 2,890 | 2,975 | ||||||||||||
Other real estate owned, net
|
1,016 | (4,670 | ) | (805 | ) | (3,639 | ) | |||||||||
Amortization of core deposit intangible
|
104 | 124 | 213 | 253 | ||||||||||||
Other
|
1,277 | 1,583 | 2,178 | 2,972 | ||||||||||||
Total noninterest expense
|
15,339 | 9,345 | 26,140 | 24,786 | ||||||||||||
Income (loss) before income tax expense
|
(6,919 | ) | 3,300 | (2,812 | ) | 4,438 | ||||||||||
Income tax expense (benefit)
|
(1,696 | ) | 1,499 | (485 | ) | 2,147 | ||||||||||
Net income (loss)
|
(5,223 | ) | 1,801 | (2,327 | ) | 2,291 | ||||||||||
Dividends and amortization on preferred stock
|
(762 | ) | (399 | ) | (1,162 | ) | (780 | ) | ||||||||
Net income (loss) allocable to common stockholders
|
$ | (5,985 | ) | $ | 1,402 | $ | (3,489 | ) | $ | 1,511 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Net income (loss)
|
$ | (5,223 | ) | $ | 1,801 | $ | (2,327 | ) | $ | 2,291 | ||||||
Other comprehensive income (loss):
|
||||||||||||||||
Unrealized holding gains (losses) on available-for-sale securities:
|
5,195 | (2,068 | ) | 8,221 | (2,378 | ) | ||||||||||
Reclassification adjustment for gains included in earnings during the period
|
(1,087 | ) | - | (1,087 | ) | - | ||||||||||
SERP actuarial gain, net
|
- | 45 | - | 92 | ||||||||||||
Other comprehensive income (loss) before tax
|
4,108 | (2,023 | ) | 7,134 | (2,286 | ) | ||||||||||
Tax effect
|
(1,438 | ) | 708 | (2,497 | ) | 800 | ||||||||||
Total other comprehensive income (loss)
|
2,670 | (1,315 | ) | 4,637 | (1,486 | ) | ||||||||||
Comprehensive income (loss)
|
$ | (2,553 | ) | $ | 486 | $ | 2,310 | $ | 805 |
Common
Shares
Issued
|
Preferred
Stock
|
Common
Stock
|
Treasury
Stock
|
Additional Paid-in Capital
|
Retained
Earnings
|
Accumulated Other Comprehensive
Income (Loss)
|
Total | |||||||||||||||||||||||||
Balance, January 1, 2013
|
2,843,065 | $ | 23,353 | $ | 2,843 | $ | (198 | ) | $ | 9,315 | $ | 67,605 | $ | 2,436 | $ | 105,354 | ||||||||||||||||
Net income
|
- | - | - | - | - | 2,291 | - | 2,291 | ||||||||||||||||||||||||
Other comprehensive loss
|
- | - | - | - | - | - | (1,486 | ) | (1,486 | ) | ||||||||||||||||||||||
Cash dividends declared or accrued on preferred stock
|
- | - | - | - | - | (665 | ) | - | (665 | ) | ||||||||||||||||||||||
Amortization on preferred stock
|
- | 115 | - | - | - | (115 | ) | - | - | |||||||||||||||||||||||
Balance, June 30, 2013
|
2,843,065 | 23,468 | 2,843 | (198 | ) | 9,315 | 69,116 | 950 | 105,494 | |||||||||||||||||||||||
Balance, January 1, 2014
|
2,843,065 | 23,585 | 2,843 | (198 | ) | 9,315 | 57,852 | (820 | ) | 92,577 | ||||||||||||||||||||||
Net loss
|
- | - | - | - | - | (2,327 | ) | - | (2,327 | ) | ||||||||||||||||||||||
Other comprehensive income
|
- | - | - | - | - | - | 4,637 | 4,637 | ||||||||||||||||||||||||
Cash dividends declared or accrued on preferred stock
|
- | - | - | - | - | (1,122 | ) | - | (1,122 | ) | ||||||||||||||||||||||
Amortization on preferred stock
|
- | 40 | - | - | - | (40 | ) | - | - | |||||||||||||||||||||||
Balance, June 30, 2014
|
2,843,065 | $ | 23,625 | $ | 2,843 | $ | (198 | ) | $ | 9,315 | $ | 54,363 | $ | 3,817 | $ | 93,765 |
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
|||||||
Operating activities
|
||||||||
Net income (loss)
|
$ | (2,327 | ) | $ | 2,291 | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
763 | 862 | ||||||
Acquisition related accretion, net
|
(6,687 | ) | (8,221 | ) | ||||
Securities amortization
|
2,019 | 852 | ||||||
Gain on sales of securities
|
(1,087 | ) | - | |||||
Gain on sale of other real estate owned
|
(2,107 | ) | (7,227 | ) | ||||
Provision (negative provision) for loan losses
|
(8,930 | ) | 2,145 | |||||
Loss on disposal of premises and equipment
|
11 | - | ||||||
Decrease (increase) in indemnification asset
|
18,675 | (5,345 | ) | |||||
Valuation allowance on other real estate owned, net
|
(417 | ) | 331 | |||||
Deferred taxes
|
(9,877 | ) | 90 | |||||
Valuation allowance on SBA receivable
|
2,246 | 1,037 | ||||||
Bank owned life insurance
|
(40 | ) | (73 | ) | ||||
Amortization of core deposit intangible
|
213 | 253 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Change in accrued interest receivable
|
744 | 848 | ||||||
Change in federal income tax receivable
|
12,295 | - | ||||||
Change in other assets
|
132 | (1,254 | ) | |||||
Change in accrued interest payable
|
718 | 708 | ||||||
Change in accrued expenses and other liabilities
|
(6,646 | ) | 1,611 | |||||
Change in deferred compensation and retirement plan
|
(92 | ) | (624 | ) | ||||
Net cash used in operating activities
|
(394 | ) | (11,716 | ) | ||||
Investing activities
|
||||||||
Maturities and sales of securities available for sale
|
41,248 | 20,380 | ||||||
Purchases of securities available for sale
|
(382,965 | ) | - | |||||
Net decrease in loans
|
221,062 | 169,837 | ||||||
Proceeds from sale of other real estate owned
|
18,337 | 37,690 | ||||||
Loss share receivable and indemnification asset payments received
|
53,972 | - | ||||||
Net change in loss share receivable and indemnification asset
|
(163 | ) | (5,739 | ) | ||||
Purchases of premises and equipment
|
(15 | ) | (77 | ) | ||||
Purchase of FHLB stock
|
(4 | ) | (10 | ) | ||||
SBA receivable payments
|
4,270 | 4,425 | ||||||
Net cash provided by (used in) investing activities
|
(44,258 | ) | 226,506 | |||||
Financing activities
|
||||||||
Net decrease in deposits
|
(143,808 | ) | (149,531 | ) | ||||
Net cash used in financing activities
|
(143,808 | ) | (149,531 | ) | ||||
Net increase (decrease) in cash and cash equivalents
|
(188,460 | ) | 65,259 | |||||
Cash and cash equivalents, beginning of year
|
305,163 | 508,433 | ||||||
Cash and cash equivalents, end of year
|
$ | 116,703 | $ | 573,692 |
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
|||||||
Supplemental cash flow information:
|
||||||||
Interest paid
|
$ | 5,998 | $ | 9,330 | ||||
Income taxes paid
|
940 | 322 | ||||||
Supplemental non-cash flow information:
|
||||||||
Transfers from loans to other real estate owned
|
11,651 | 10,082 | ||||||
Transfers from loans and other real estate owned to SBA receivable
|
506 | 4,167 | ||||||
Preferred stock dividends payable at year end
|
4,906 | 2,406 |
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
|||||||
Loss share receivable and indemnification asset, January 1
|
$ | 92,660 | $ | 100,215 | ||||
Cash collected from FDIC
|
(53,972 | ) | - | |||||
Increases attributable to higher projected credit losses
|
- | 5,345 | ||||||
Decreases attributable to recoveries/lower projected credit losses
|
(18,675 | ) | - | |||||
Reimbursable expenses and other claims
|
163 | 5,736 | ||||||
Loss share receivable and indemnification asset, June 30
|
$ | 17,865 | $ | 102,514 |
Charge-offs, net
|
$ | 502,849 | ||
Reimbursable lost accrued interest
|
6,887 | |||
Reimbursable expenses
|
86,428 | |||
Offsetting income
|
(9,222 | ) | ||
Total claims made to the FDIC
|
586,942 | |||
Current reimbursable loss share percentage
|
80 | % | ||
Total reimbursable claims made to the FDIC
|
$ | 469,553 |
2009
|
$ | - | ||
2010
|
233,474 | |||
2011
|
- | |||
2012
|
177,730 | |||
2013
|
4,377 | |||
2014
|
53,972 | |||
Total
|
$ | 469,553 |
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
June 30, 2014
|
||||||||||||||||
US Treasuries
|
$ | 151 | $ | 14 | $ | - | $ | 165 | ||||||||
US Agencies
|
205,257 | 1,104 | (619 | ) | 205,742 | |||||||||||
Residential mortgage-backed:
|
||||||||||||||||
FNMA
|
121,247 | 2,718 | (683 | ) | 123,282 | |||||||||||
FHLMC
|
32,723 | 1,001 | - | 33,724 | ||||||||||||
GNMA
|
284,392 | 2,605 | (97 | ) | 286,900 | |||||||||||
CRA fund
|
20,001 | - | (170 | ) | 19,831 | |||||||||||
Other
|
100 | - | - | 100 | ||||||||||||
Total
|
$ | 663,871 | $ | 7,442 | $ | (1,569 | ) | $ | 669,744 |
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
December 31, 2013
|
||||||||||||||||
US Treasuries
|
$ | 151 | $ | 15 | $ | - | $ | 166 | ||||||||
US Agencies
|
73,174 | 96 | (753 | ) | 72,517 | |||||||||||
Residential mortgage-backed:
|
||||||||||||||||
FNMA
|
133,783 | 1,157 | (2,527 | ) | 132,413 | |||||||||||
FHLMC
|
51,532 | 970 | (466 | ) | 52,036 | |||||||||||
GNMA
|
44,346 | 787 | - | 45,133 | ||||||||||||
CRA fund
|
20,001 | - | (541 | ) | 19,460 | |||||||||||
Other
|
100 | - | - | 100 | ||||||||||||
Total
|
$ | 323,087 | $ | 3,025 | $ | (4,287 | ) | $ | 321,825 |
Amortized
|
Fair
|
|||||||
Cost
|
Value
|
|||||||
Securities available for sale
|
||||||||
Due in one year or less
|
$ | 15,000 | $ | 15,004 | ||||
Due after one year through five years
|
48,652 | 48,899 | ||||||
Due after five years through ten years
|
56,239 | 56,737 | ||||||
Due after ten years
|
85,517 | 85,267 | ||||||
Mortgage-backed securities
|
438,362 | 443,906 | ||||||
CRA fund and other (no contractual maturity)
|
20,101 | 19,931 | ||||||
Total
|
$ | 663,871 | $ | 669,744 |
June 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
Non-covered loans:
|
||||||||
Commercial non-owner occupied
|
$ | 131,337 | $ | 220,335 | ||||
Commercial owner occupied
|
158,334 | 186,722 | ||||||
Construction
|
1,621 | 1,544 | ||||||
Commercial and industrial
|
6,736 | 7,880 | ||||||
First lien mortgages
|
462 | 339 | ||||||
Junior lien mortgages
|
- | 159 | ||||||
Other
|
636 | 685 | ||||||
Total non-covered loans
|
299,126 | 417,664 | ||||||
Deferred loan origination fees and costs, net
|
(719 | ) | (1,560 | ) | ||||
Allowance for loan losses on non-covered loans
|
(14,654 | ) | (17,346 | ) | ||||
Non-covered loans, net
|
283,753 | 398,758 | ||||||
Covered loans:
|
||||||||
Commercial non-owner occupied
|
$ | 48,815 | $ | 136,589 | ||||
Commercial owner occupied
|
37,315 | 56,755 | ||||||
Construction
|
1,093 | 1,311 | ||||||
Commercial and industrial
|
4,381 | 4,949 | ||||||
First lien mortgages
|
11,522 | 15,789 | ||||||
Junior lien mortgages
|
7,110 | 9,011 | ||||||
Other
|
11 | 815 | ||||||
Total covered loans
|
110,247 | 225,219 | ||||||
Allowance for loan losses on covered loans
|
(32,377 | ) | (47,751 | ) | ||||
Covered loans, net
|
77,870 | 177,468 | ||||||
Loans, net
|
$ | 361,623 | $ | 576,226 |
Percentage
|
||||||||
Carrying
|
of Bank
|
|||||||
Balance
|
Tier 1 Capital
|
|||||||
Non-covered loans:
|
||||||||
Gas station
|
$ | 111,336 | 84 | % | ||||
Hotel/motel
|
94,175 | 71 | ||||||
Real estate - other
|
25,221 | 19 | ||||||
Shopping center
|
21,053 | 16 | ||||||
Restaurant
|
13,458 | 10 | ||||||
Office building
|
9,836 | 7 | ||||||
Convenience store
|
7,901 | 6 | ||||||
Grocery store
|
6,691 | 5 | ||||||
Covered loans:
|
||||||||
Hotel/motel
|
$ | 32,588 | 25 | % | ||||
Gas station
|
22,394 | 17 | ||||||
Apartments
|
18,956 | 14 | ||||||
Real estate - other
|
6,117 | 5 | ||||||
Restaurant
|
6,015 | 5 |
Commercial
|
Commercial
|
|||||||||||||||||||||||||||||||
Non-owner
|
Owner
|
Commercial
|
First Lien
|
Junior Lien
|
Other and
|
|||||||||||||||||||||||||||
June 30, 2014
|
Occupied
|
Occupied
|
Construction
|
and Industrial
|
Mortgages
|
Mortgages
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Beginning balance
|
$ | (6,182 | ) | 33,982 | $ | 1,741 | $ | 4,921 | $ | 9,312 | $ | 6,217 | $ | 6,878 | $ | 56,869 | ||||||||||||||||
Provision (recovery) for loan losses
|
4,824 | (1,371 | ) | (1,009 | ) | (44 | ) | (2,903 | ) | 746 | (2,629 | ) | (2,386 | ) | ||||||||||||||||||
Loans charged-off
|
(7,342 | ) | (1,346 | ) | - | (1,511 | ) | - | (19 | ) | - | (10,218 | ) | |||||||||||||||||||
Recoveries
|
779 | 750 | 1 | 1,231 | 1 | 1 | 3 | 2,766 | ||||||||||||||||||||||||
Ending balance
|
$ | (7,921 | ) | 32,015 | $ | 733 | $ | 4,597 | $ | 6,410 | $ | 6,945 | $ | 4,252 | $ | 47,031 | ||||||||||||||||
Commercial
|
Commercial
|
|||||||||||||||||||||||||||||||
Non-owner
|
Owner
|
Commercial
|
First Lien
|
Junior Lien
|
Other and
|
|||||||||||||||||||||||||||
June 30, 2013
|
Occupied
|
Occupied
|
Construction
|
and Industrial
|
Mortgages
|
Mortgages
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Beginning balance
|
$ | 17,654 | 25,934 | $ | 1,135 | $ | 7,015 | 10,044 | $ | 3,779 | $ | 4,183 | $ | 69,744 | ||||||||||||||||||
Provision for loan losses
|
(1,598 | ) | 4,481 | (287 | ) | 362 | 193 | 329 | (594 | ) | 2,886 | |||||||||||||||||||||
Loans charged-off
|
(2,057 | ) | (3,261 | ) | - | (1,186 | ) | - | (2 | ) | (22 | ) | (6,528 | ) | ||||||||||||||||||
Recoveries
|
838 | 736 | 1 | 259 | - | 6 | 1 | 1,841 | ||||||||||||||||||||||||
Ending balance
|
$ | 14,837 | $ | 27,890 | $ | 849 | $ | 6,450 | $ | 10,237 | $ | 4,112 | $ | 3,568 | $ | 67,943 |
Commercial
|
Commercial
|
|||||||||||||||||||||||||||||||
Non-owner
|
Owner
|
Commercial
|
First Lien
|
Junior Lien
|
Other and
|
|||||||||||||||||||||||||||
June 30, 2014
|
Occupied
|
Occupied
|
Construction
|
and Industrial
|
Mortgages
|
Mortgages
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Beginning balance
|
$ | 5,477 | $ | 32,078 | $ | 967 | $ | 5,256 | $ | 5,768 | $ | 8,507 | $ | 7,044 | $ | 65,097 | ||||||||||||||||
Provision (recovery) for loan losses
|
(4,357 | ) | 525 | 417 | (1,808 | ) | 639 | (1,548 | ) | (2,798 | ) | (8,930 | ) | |||||||||||||||||||
Loans charged-off
|
(10,940 | ) | (1,807 | ) | (652 | ) | (1,566 | ) | - | (19 | ) | - | (14,984 | ) | ||||||||||||||||||
Recoveries
|
1,899 | 1,219 | 1 | 2,715 | 3 | 5 | 6 | 5,848 | ||||||||||||||||||||||||
Ending balance
|
$ | (7,921 | ) | $ | 32,015 | $ | 733 | $ | 4,597 | $ | 6,410 | $ | 6,945 | $ | 4,252 | $ | 47,031 | |||||||||||||||
Commercial
|
Commercial
|
|||||||||||||||||||||||||||||||
Non-owner
|
Owner
|
Commercial
|
First Lien
|
Junior Lien
|
Other and
|
|||||||||||||||||||||||||||
June 30, 2013
|
Occupied
|
Occupied
|
Construction
|
and Industrial
|
Mortgages
|
Mortgages
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Beginning balance
|
$ | 14,147 | $ | 42,520 | $ | 1,550 | $ | 4,685 | $ | 6,554 | $ | 8,212 | $ | 452 | $ | 78,120 | ||||||||||||||||
Provision for loan losses
|
(159 | ) | (9,709 | ) | (708 | ) | 3,022 | 10,652 | (4,091 | ) | 3,138 | 2,145 | ||||||||||||||||||||
Loans charged-off
|
(2,098 | ) | (7,033 | ) | - | (1,743 | ) | (6,969 | ) | (15 | ) | (27 | ) | (17,885 | ) | |||||||||||||||||
Recoveries
|
2,947 | 2,112 | 7 | 486 | - | 6 | 5 | 5,563 | ||||||||||||||||||||||||
Ending balance
|
$ | 14,837 | $ | 27,890 | $ | 849 | $ | 6,450 | $ | 10,237 | $ | 4,112 | $ | 3,568 | $ | 67,943 |
Commercial
|
Commercial
|
|||||||||||||||||||||||||||||||
Non-owner
|
Owner
|
Commercial
|
First Lien
|
Junior Lien
|
Other and
|
|||||||||||||||||||||||||||
June 30, 2014
|
Occupied
|
Occupied
|
Construction
|
and Industrial
|
Mortgages
|
Mortgages
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 1,763 | $ | 1,347 | $ | - | $ | 329 | $ | - | $ | - | $ | 35 | $ | 3,474 | ||||||||||||||||
Collectively evaluated for impairment
|
2,572 | 4,400 | - | - | - | - | 4,208 | 11,180 | ||||||||||||||||||||||||
Acquired with deteriorated credit quality
|
(12,256 | ) | 26,268 | 733 | 4,268 | 6,410 | 6,945 | 9 | 32,377 | |||||||||||||||||||||||
Total ending allowance balance
|
$ | (7,921 | ) | $ | 32,015 | $ | 733 | $ | 4,597 | $ | 6,410 | $ | 6,945 | $ | 4,252 | $ | 47,031 | |||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 26,089 | $ | 38,581 | $ | - | $ | 884 | $ | - | $ | - | $ | 35 | $ | 65,589 | ||||||||||||||||
Collectively evaluated for impairment
|
105,248 | 119,753 | 1,621 | 5,852 | 462 | - | 601 | 233,537 | ||||||||||||||||||||||||
Acquired with deteriorated credit quality
|
48,815 | 37,315 | 1,093 | 4,381 | 11,522 | 7,110 | 11 | 110,247 | ||||||||||||||||||||||||
Total ending loan balance
|
$ | 180,152 | $ | 195,649 | $ | 2,714 | $ | 11,117 | $ | 11,984 | $ | 7,110 | $ | 647 | $ | 409,373 | ||||||||||||||||
Commercial
|
Commercial
|
|||||||||||||||||||||||||||||||
Non-owner
|
Owner
|
Commercial
|
First Lien
|
Junior Lien
|
Other and
|
|||||||||||||||||||||||||||
December 31, 2013
|
Occupied
|
Occupied
|
Construction
|
and Industrial
|
Mortgages
|
Mortgages
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 387 | $ | 1,161 | $ | 242 | $ | 509 | - | - | - | $ | 2,299 | |||||||||||||||||||
Collectively evaluated for impairment
|
3,873 | 4,389 | 39 | 552 | - | - | 6,194 | 15,047 | ||||||||||||||||||||||||
Acquired with deteriorated credit quality
|
1,217 | 26,528 | 686 | 4,195 | 5,768 | 8,507 | 850 | 47,751 | ||||||||||||||||||||||||
Total ending allowance balance
|
$ | 5,477 | $ | 32,078 | $ | 967 | $ | 5,256 | $ | 5,768 | $ | 8,507 | $ | 7,044 | $ | 65,097 |
Loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 75,150 | $ | 37,486 | $ | 1,277 | $ | 517 | $ | 155 | - | - | $ | 114,585 | ||||||||||||||||||
Collectively evaluated for impairment
|
145,185 | 149,236 | 267 | 7,363 | 184 | 159 | 685 | 303,079 | ||||||||||||||||||||||||
Acquired with deteriorated credit quality
|
56,755 | 136,589 | 1,311 | 4,949 | 15,789 | 9,011 | 815 | 225,219 | ||||||||||||||||||||||||
Total ending loan balance
|
$ | 277,090 | $ | 323,311 | $ | 2,855 | $ | 12,829 | $ | 16,128 | $ | 9,170 | $ | 1,500 | $ | 642,883 |
June 30, 2014
|
Unpaid Principal
Balance
|
Recorded
Investment
|
Allowance for
Loan Losses
Allocated
|
|||||||||
With no related allowance recorded:
|
||||||||||||
Commercial non-owner occupied
|
$ | 25,839 | $ | 14,173 | $ | - | ||||||
Commercial owner occupied
|
21,255 | 16,904 | - | |||||||||
Commercial and industrial
|
466 | 334 | - | |||||||||
With an allowance recorded:
|
||||||||||||
Commercial non-owner occupied
|
$ | 21,668 | $ | 11,916 | $ | 1,763 | ||||||
Commercial owner occupied
|
30,888 | 21,677 | 1,347 | |||||||||
Commercial and industrial
|
1,612 | 550 | 329 | |||||||||
Other
|
46 | 35 | 35 | |||||||||
Total
|
$ | 101,774 | $ | 65,589 | $ | 3,474 | ||||||
Unpaid Principal
Balance
|
Recorded
Investment
|
Allowance for
Loan Losses
Allocated
|
||||||||||
December 31, 2013
|
||||||||||||
With no related allowance recorded:
|
||||||||||||
Commercial non-owner occupied
|
$ | 109,642 | $ | 71,853 | $ | - | ||||||
Commercial owner occupied
|
54,906 | 31,381 | - | |||||||||
Commercial and industrial
|
219 | - | - | |||||||||
First lien mortgages
|
158 | 155 | - | |||||||||
With an allowance recorded:
|
||||||||||||
Commercial non-owner occupied
|
$ | 6,471 | $ | 3,297 | $ | 387 | ||||||
Commercial owner occupied
|
12,485 | 6,105 | 1,161 | |||||||||
Construction
|
1,277 | 1,277 | 242 | |||||||||
Commercial and industrial
|
1,881 | 517 | 509 | |||||||||
Total
|
$ | 187,039 | $ | 114,585 | $ | 2,299 |
Average Recorded Investment
|
||||||||||||||||
Three Months
Ended June
30, 2014
|
Three Months
Ended June
30, 2013
|
Six Months
Ended
June 30,
2014
|
Six Months
Ended June
30, 2013
|
|||||||||||||
With no related allowance recorded:
|
||||||||||||||||
Commercial non-owner occupied
|
$ | 29,282 | $ | 80,072 | $ | 31,196 | $ | 42,753 | ||||||||
Commercial owner occupied
|
27,758 | 36,573 | 21,300 | 22,121 | ||||||||||||
Commercial and industrial
|
474 | 427 | 813 | 303 | ||||||||||||
First lien mortgages
|
45 | 6 | 56 | 12 | ||||||||||||
Total
|
$ | 57,559 | $ | 117,078 | $ | 53,365 | $ | 65,189 | ||||||||
With an allowance recorded:
|
||||||||||||||||
Commercial non-owner occupied
|
$ | 12,512 | $ | 25,365 | $ | 17,996 | $ | 13,914 | ||||||||
Commercial owner occupied
|
9,407 | 14,237 | 28,522 | 8,181 | ||||||||||||
Construction
|
- | 84 | - | 168 | ||||||||||||
Commercial and industrial
|
552 | 841 | 1,151 | 601 | ||||||||||||
First lien mortgages
|
- | 5 | - | 11 | ||||||||||||
Other
|
- | - | 36 | - | ||||||||||||
Total
|
$ | 22,471 | $ | 40,352 | $ | 47,705 | $ | 22,875 |
Interest Income Recognized
|
||||||||
Six Months
Ended
June 30,
2014
|
Year Ended
December 31,
2013
|
|||||||
With no related allowance recorded:
|
||||||||
Commercial non-owner occupied
|
$ | 622 | $ | 3,683 | ||||
Commercial owner occupied
|
425 | 2,575 | ||||||
Construction
|
- | - | ||||||
Commercial and industrial
|
22 | 21 | ||||||
First lien mortgages
|
2 | 13 | ||||||
Junior lien mortgages
|
- | - | ||||||
Other
|
- | - | ||||||
Total
|
$ | 1,071 | $ | 6,292 |
Six Months
Ended
June 30,
2014
|
Year Ended
December 31,
2013
|
|||||||
With an allowance recorded:
|
||||||||
Commercial non-owner occupied
|
$ | 195 | $ | 551 | ||||
Commercial owner occupied
|
775 | 484 | ||||||
Construction
|
- | 92 | ||||||
Commercial and industrial
|
33 | 119 | ||||||
First lien mortgages
|
- | - | ||||||
Junior lien mortgages
|
- | - | ||||||
Other
|
- | - | ||||||
Total
|
$ | 1,003 | $ | 1,246 |
June 30, 2014
|
Unpaid
Principal
Balance
|
Recorded
Investment
|
Allowance for Loan
Losses Allocated
|
|||||||||
With an allowance recorded:
|
||||||||||||
Commercial non-owner occupied
|
$ | 64,086 | $ | 37,522 | $ | (12,256 | ) | |||||
Commercial owner occupied
|
19,355 | 37,315 | 26,268 | |||||||||
Construction
|
405 | 1,093 | 733 | |||||||||
Commercial and industrial
|
310 | 4,381 | 4,268 | |||||||||
First lien mortgages
|
7,167 | 11,522 | 6,410 | |||||||||
Junior lien mortgages
|
668 | 7,110 | 6,945 | |||||||||
Other
|
7 | 11 | 9 | |||||||||
Total
|
$ | 91,998 | $ | 98,984 | $ | 32,377 |
December 31, 2013
|
Unpaid
Principal
Balance
|
Recorded
Investment
|
Allowance for Loan
Losses Allocated
|
|||||||||
With an allowance recorded:
|
||||||||||||
Commercial non-owner occupied
|
$ | 72,018 | $ | 61,652 | $ | 1,217 | ||||||
Commercial owner occupied
|
46,771 | 63,816 | 26,528 | |||||||||
Construction
|
679 | 1,311 | 686 | |||||||||
Commercial and industrial
|
191 | 4,650 | 4,195 | |||||||||
First lien mortgages
|
12,188 | 15,851 | 5,768 | |||||||||
Junior lien mortgages
|
530 | 9,011 | 8,507 | |||||||||
Other
|
220 | 923 | 850 | |||||||||
Total
|
$ | 132,597 | $ | 157,214 | $ | 47,751 |
Average Recorded Investment
|
||||||||||||||||
Three Months
Ended June
30, 2014
|
Three Months
Ended June
30, 2013
|
Six Months
Ended June
30, 2014
|
Six Months
Ended June
30, 2013
|
|||||||||||||
With an allowance recorded:
|
||||||||||||||||
Commercial non-owner occupied
|
$ | 45,209 | $ | 125,796 | $ | 57,959 | $ | 129,968 | ||||||||
Commercial owner occupied
|
41,536 | 95,246 | 52,464 | 96,895 | ||||||||||||
Construction
|
1,090 | 1,475 | 1,156 | 1,495 | ||||||||||||
Commercial and industrial
|
4,402 | 5,555 | 4,609 | 6,031 | ||||||||||||
First lien mortgages
|
11,495 | 17,348 | 13,564 | 17,701 | ||||||||||||
Junior lien mortgages
|
7,393 | 11,267 | 8,847 | 11,366 | ||||||||||||
Other
|
11 | 3,568 | 11 | 3,449 | ||||||||||||
Total
|
$ | 111,136 | $ | 260,255 | $ | 138,610 | $ | 266,905 |
Interest Income Recognized
|
||||||||||||||||
Three Months
Ended June
30, 2014
|
Three Months
Ended June
30, 2013
|
Six Months
Ended June
30, 2014
|
Six Months
Ended June
30, 2013
|
|||||||||||||
With an allowance recorded:
|
||||||||||||||||
Commercial non-owner occupied
|
$ | 1,735 | $ | 3,387 | $ | 4,570 | $ | 6,761 | ||||||||
Commercial owner occupied
|
713 | 1,913 | 1,795 | 3,876 | ||||||||||||
Construction
|
10 | 15 | 25 | 30 | ||||||||||||
Commercial and industrial
|
13 | 9 | 36 | 52 | ||||||||||||
First lien mortgages
|
183 | 482 | 472 | 1,017 | ||||||||||||
Junior lien mortgages
|
16 | 62 | 34 | 160 | ||||||||||||
Other
|
- | 217 | 1 | 465 | ||||||||||||
Total
|
$ | 2,670 | $ | 6,085 | $ | 6,933 | $ | 12,361 |
Non Covered Loans
|
Covered Loans
|
|||||||||||||||
Loans Past
|
Loans Past
|
|||||||||||||||
Due Over
|
Due Over
|
|||||||||||||||
89 Days
|
89 Days
|
|||||||||||||||
Nonaccrual
|
Still Accruing
|
Nonaccrual
|
Still Accruing
|
|||||||||||||
June 30, 2014
|
||||||||||||||||
Commercial non-owner occupied
|
$ | 18,997 | $ | - | $ | - | $ | 28,919 | ||||||||
Commercial owner occupied
|
34,496 | - | - | 35,500 | ||||||||||||
Construction
|
- | - | - | 1,093 | ||||||||||||
Commercial and industrial
|
510 | - | - | 4,280 | ||||||||||||
First lien mortgages
|
18 | - | - | 9,047 | ||||||||||||
Junior lien mortgages
|
- | - | - | 6,775 | ||||||||||||
Other
|
35 | - | - | 7 | ||||||||||||
Total
|
$ | 54,056 | $ | - | $ | - | $ | 85,621 | ||||||||
Non Covered Loans
|
Covered Loans
|
|||||||||||||||
Loans Past
|
Loans Past
|
|||||||||||||||
Due Over
|
Due Over
|
|||||||||||||||
89 Days
|
89 Days
|
|||||||||||||||
Nonaccrual
|
Still Accruing
|
Nonaccrual
|
Still Accruing
|
|||||||||||||
December 31, 2013
|
||||||||||||||||
Commercial non-owner occupied
|
$ | 66,258 | $ | - | $ | - | $ | 51,079 | ||||||||
Commercial owner occupied
|
41,831 | - | - | 91,107 | ||||||||||||
Construction
|
- | - | - | 631 | ||||||||||||
Commercial and industrial
|
482 | - | - | 4,949 | ||||||||||||
First lien mortgages
|
155 | - | - | 13,461 | ||||||||||||
Junior lien mortgages
|
- | - | - | 8,421 | ||||||||||||
Other
|
37 | - | - | 815 | ||||||||||||
Total
|
$ | 108,763 | $ | - | $ | - | $ | 170,463 |
30 - 59 | 60 - 89 | Greater
than
|
||||||||||||||||||||||
Days
|
Days
|
89 Days
|
Total
|
Loans Not
|
||||||||||||||||||||
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Total
|
|||||||||||||||||||
June 30, 2014
|
||||||||||||||||||||||||
Non-covered loans:
|
||||||||||||||||||||||||
Commercial non-owner occupied
|
$ | 48 | $ | - | $ | 18,997 | $ | 19,045 | $ | 112,292 | $ | 131,337 | ||||||||||||
Commercial owner occupied
|
212 | 4,412 | 34,496 | 39,120 | 119,214 | 158,334 | ||||||||||||||||||
Construction
|
- | - | - | - | 1,621 | 1,621 | ||||||||||||||||||
Commercial and industrial
|
115 | 17 | 510 | 642 | 6,094 | 6,736 | ||||||||||||||||||
First lien mortgages
|
- | - | 18 | 18 | 444 | 462 | ||||||||||||||||||
Junior lien mortgages
|
- | - | - | - | - | - | ||||||||||||||||||
Other
|
5 | - | 35 | 40 | 596 | 636 | ||||||||||||||||||
Total non-covered loans
|
$ | 380 | $ | 4,429 | $ | 54,056 | $ | 58,865 | $ | 240,261 | $ | 299,126 | ||||||||||||
30 - 59 | 60 - 89 | Greater
than
|
||||||||||||||||||||||
Days
|
Days
|
89 Days
|
Total
|
Loans Not
|
||||||||||||||||||||
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Total
|
|||||||||||||||||||
June 30, 2014
|
||||||||||||||||||||||||
Covered loans:
|
||||||||||||||||||||||||
Commercial non-owner occupied
|
$ | 568 | $ | 798 | $ | 28,919 | $ | 30,285 | $ | 18,423 | $ | 48,708 | ||||||||||||
Commercial owner occupied
|
639 | 891 | 35,500 | 37,030 | 392 | 37,422 | ||||||||||||||||||
Construction
|
- | - | 1,093 | 1,093 | - | 1,093 | ||||||||||||||||||
Commercial and industrial
|
- | - | 4,280 | 4,280 | 101 | 4,381 | ||||||||||||||||||
First lien mortgages
|
60 | - | 9,047 | 9,107 | 2,415 | 11,522 | ||||||||||||||||||
Junior lien mortgages
|
- | 109 | 6,775 | 6,884 | 226 | 7,110 | ||||||||||||||||||
Other
|
- | - | 7 | 7 | 4 | 11 | ||||||||||||||||||
Total covered loans
|
1,267 | 1,798 | 85,621 | 88,686 | 21,561 | 110,247 | ||||||||||||||||||
Total
|
$ | 1,647 | $ | 6,227 | $ | 139,677 | $ | 147,551 | $ | 261,822 | $ | 409,373 |
30 - 59 | 60 - 89 | Greater than | ||||||||||||||||||||||
Days
|
Days
|
89 Days
|
Total
|
Loans Not
|
||||||||||||||||||||
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Total
|
|||||||||||||||||||
December 31, 2013
|
||||||||||||||||||||||||
Non-covered loans:
|
||||||||||||||||||||||||
Commercial non-owner occupied
|
$ | 2,470 | $ | 3,424 | $ | 66,258 | $ | 72,152 | $ | 148,183 | $ | 220,335 | ||||||||||||
Commercial owner occupied
|
4,120 | 5,147 | 41,831 | 51,098 | 135,624 | 186,722 | ||||||||||||||||||
Construction
|
268 | - | - | 268 | 1,276 | 1,544 | ||||||||||||||||||
Commercial and industrial
|
140 | 50 | 482 | 672 | 7,208 | 7,880 | ||||||||||||||||||
First lien mortgages
|
- | - | 155 | 155 | 184 | 339 | ||||||||||||||||||
Junior lien mortgages
|
- | - | - | - | 159 | 159 | ||||||||||||||||||
Other
|
- | - | 37 | 37 | 648 | 685 | ||||||||||||||||||
Total non-covered loans
|
$ | 6,998 | $ | 8,621 | $ | 108,763 | $ | 124,382 | $ | 293,282 | $ | 417,664 | ||||||||||||
30 - 59 | 60 - 89 |
Greater than
|
||||||||||||||||||||||
Days
|
Days
|
89 Days
|
Total
|
Loans Not
|
||||||||||||||||||||
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Total
|
|||||||||||||||||||
December 31, 2013
|
||||||||||||||||||||||||
Covered loans:
|
||||||||||||||||||||||||
Commercial non-owner occupied
|
$ | - | $ | 74 | $ | 51,079 | $ | 51,153 | $ | 5,602 | $ | 56,755 | ||||||||||||
Commercial owner occupied
|
- | 2,438 | 91,107 | 93,545 | 43,044 | 136,589 | ||||||||||||||||||
Construction
|
- | - | 631 | 631 | 680 | 1,311 | ||||||||||||||||||
Commercial and industrial
|
- | - | 4,949 | 4,949 | - | 4,949 | ||||||||||||||||||
First lien mortgages
|
- | - | 13,461 | 13,461 | 2,328 | 15,789 | ||||||||||||||||||
Junior lien mortgages
|
- | - | 8,421 | 8,421 | 590 | 9,011 | ||||||||||||||||||
Other
|
- | - | 815 | 815 | - | 815 | ||||||||||||||||||
Total covered loans
|
- | 2,512 | 170,463 | 172,975 | 52,244 | 225,219 | ||||||||||||||||||
Total
|
$ | 6,998 | $ | 11,133 | $ | 279,226 | $ | 297,357 | $ | 345,526 | $ | 642,883 |
Pre-Modification
|
Post-Modification
|
|||||||||||
Outstanding
|
Outstanding
|
|||||||||||
Number
|
Recorded
|
Recorded
|
||||||||||
Six-months ended
|
of Loans
|
Investment
|
Investment
|
|||||||||
June 30, 2014
|
||||||||||||
Commercial non-owner occupied
|
1 | $ | 49 | $ | 49 | |||||||
Commercial owner occupied
|
- | - | - | |||||||||
Other
|
- | - | - | |||||||||
Total
|
1 | $ | 49 | $ | 49 | |||||||
Year-ended
|
||||||||||||
December 31, 2013
|
||||||||||||
Commercial non-owner occupied
|
2 | $ | 11,857 | $ | 11,857 | |||||||
Commercial owner occupied
|
1 | 1,275 | 1,275 | |||||||||
Other
|
2 | 933 | 933 | |||||||||
Total
|
5 | $ | 14,065 | $ | 14,065 |
June 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
Accruing TDRs
|
||||||||
Commercial non-owner occupied
|
$ | 3,976 | $ | 29,027 | ||||
Commercial owner occupied
|
1,773 | 10,106 | ||||||
Commercial and industrial
|
2 | 8 | ||||||
First lien mortgages
|
- | - | ||||||
Other
|
19 | 933 | ||||||
5,770 | 40,074 | |||||||
Nonaccrual TDRs:
|
||||||||
Commercial non-owner occupied
|
6,760 | 15,298 | ||||||
Commercial owner occupied
|
3,819 | 4,986 | ||||||
Commercial and industrial
|
184 | 246 | ||||||
10,763 | 20,530 | |||||||
Total
|
$ | 16,533 | $ | 60,604 |
Number
|
Recorded
|
|||||||
of Loans
|
Investment
|
|||||||
December 31, 2013
|
||||||||
Subsequently defaulted:
|
||||||||
Commercial non-owner occupied
|
1 | $ | 4,206 | |||||
Commercial owner occupied
|
1 | 1,275 | ||||||
Other
|
1 | 912 | ||||||
Total
|
3 | $ | 6,393 |
Watch/Special
|
||||||||||||||||||||
Pass
|
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
June 30, 2014
|
||||||||||||||||||||
Commercial non-owner occupied
|
$ | 58,033 | $ | 19,329 | $ | 53,591 | $ | 386 | 131,337 | |||||||||||
Commercial owner occupied
|
82,104 | 43,391 | 32,839 | - | 158,334 | |||||||||||||||
Construction
|
1,621 | - | - | - | 1,621 | |||||||||||||||
Commercial and industrial
|
5,473 | 224 | 997 | 42 | 6,736 | |||||||||||||||
First lien mortgages
|
444 | - | 18 | - | 462 | |||||||||||||||
Junior lien mortgages
|
- | - | - | - | - | |||||||||||||||
Other
|
582 | - | 19 | 35 | 636 | |||||||||||||||
Total non-covered
|
$ | 148,257 | $ | 62,944 | $ | 87,464 | $ | 463 | 299,126 | |||||||||||
Watch/Special
|
||||||||||||||||||||
Pass
|
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
December 31, 2013
|
||||||||||||||||||||
Commercial non-owner occupied
|
$ | 40,046 | $ | 60,285 | $ | 120,004 | $ | - | 220,335 | |||||||||||
Commercial owner occupied
|
73,307 | 50,826 | 61,434 | 1,155 | 186,722 | |||||||||||||||
Construction
|
- | 268 | 1,276 | - | 1,544 | |||||||||||||||
Commercial and industrial
|
5,804 | 889 | 1,187 | - | 7,880 | |||||||||||||||
First lien mortgages
|
134 | - | 205 | - | 339 | |||||||||||||||
Junior lien mortgages
|
105 | 54 | - | - | 159 | |||||||||||||||
Other
|
627 | - | 21 | 37 | 685 | |||||||||||||||
Total non-covered
|
$ | 120,023 | $ | 112,322 | $ | 184,127 | $ | 1,192 | 417,664 |
June 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
Commercial real estate
|
$ | 87,223 | $ | 194,547 | ||||
Commercial and industrial
|
4,381 | 4,949 | ||||||
Residential real estate
|
18,632 | 24,800 | ||||||
Other
|
11 | 923 | ||||||
Total covered loans
|
110,247 | 225,219 | ||||||
Allowance for loan losses
|
(32,377 | ) | (47,751 | ) | ||||
Net carrying value
|
$ | 77,870 | $ | 177,468 | ||||
Outstanding contractual principal balance
|
$ | 489,965 | $ | 602,587 |
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
|||||||
Beginning balance, January 1
|
$ | 70,188 | $ | 111,323 | ||||
Accretion of income
|
(8,998 | ) | (17,003 | ) | ||||
Reclassification to non-accretable from accretable yield
|
(22,426 | ) | (3,603 | ) | ||||
Removals/disposals
|
(6,426 | ) | (6,849 | ) | ||||
Ending balance, June 30
|
$ | 32,338 | $ | 83,868 |
June 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
Submitted claims (outstanding less than 90 days)
|
$ | 232 | $ | 1,810 | ||||
Submitted claims (outstanding more than 90 days)
|
2,564 | 2,981 | ||||||
Losses incurred but not yet submitted for claims
|
7,450 | 9,468 | ||||||
Gross submitted and not yet submitted claims
|
10,246 | 14,259 | ||||||
Valuation allowance
|
(3,328 | ) | (1,570 | ) | ||||
Carrying balance, net
|
$ | 6,918 | $ | 12,689 |
Total Other
|
||||||||||||
Covered
|
Non-Covered
|
Real Estate
|
||||||||||
Assets
|
Assets
|
Owned
|
||||||||||
January 1, 2013
|
$ | 48,048 | $ | 19,459 | $ | 67,507 | ||||||
Additions
|
13,099 | 8,430 | 21,529 | |||||||||
Valuation allowances, net
|
(490 | ) | (1,514 | ) | (2,004 | ) | ||||||
Property disposals, losses on sales and
|
||||||||||||
reclassifications to SBA receivable
|
(36,296 | ) | (16,387 | ) | (52,683 | ) | ||||||
December 31, 2013
|
$ | 24,361 | $ | 9,988 | $ | 34,349 | ||||||
Additions
|
9,079 | 2,572 | 11,651 | |||||||||
Valuation allowances, net
|
554 | (137 | ) | 417 | ||||||||
Property disposals, losses on sales and
|
||||||||||||
reclassifications to SBA receivable
|
(13,575 | ) | (3,365 | ) | (16,940 | ) | ||||||
June 30, 2014
|
$ | 20,419 | $ | 9,058 | $ | 29,477 |
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
|||||||
Current expense (benefit)
|
||||||||
Federal
|
$ | 9,303 | $ | (6,797 | ) | |||
State
|
90 | 4,770 | ||||||
Deferred expense (benefit)
|
||||||||
Federal
|
(10,007 | ) | 4,174 | |||||
State
|
(1 | ) | (1,008 | ) | ||||
Valuation allowance
|
130 | 1,008 | ||||||
Total income tax expense (benefit)
|
$ | (485 | ) | $ | 2,147 |
June 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
Deferred tax assets
|
||||||||
Allowance for loan losses
|
$ | 18,343 | $ | 25,391 | ||||
Deferred compensation and SERP
|
1,589 | 1,803 | ||||||
Other
|
6,587 | 6,843 | ||||||
Net unrealized loss on available for sale securities
|
- | 442 | ||||||
Bank premises and equipment
|
266 | 182 | ||||||
State net operating losses
|
4,610 | 5,655 | ||||||
Total deferred tax assets
|
31,395 | 40,316 | ||||||
Deferred tax liabilities
|
||||||||
Deferred gain on acquisition (Section 597)
|
0 | (14,503 | ) | |||||
Indemnified assets (Section 597)
|
(16,487 | ) | (20,361 | ) | ||||
Net unrealized gain on available for sale securities
|
(2,055 | ) | - | |||||
Bank premises and equipment
|
- | - | ||||||
Other
|
(242 | ) | (351 | ) | ||||
Total deferred tax liabilities
|
(18,784 | ) | (35,215 | ) | ||||
Valuation allowance
|
(5,411 | ) | (5,281 | ) | ||||
Net deferred tax asset (liability)
|
$ | 7,200 | $ | (180 | ) |
June 30,
|
June 30,
|
|||||||
2014
|
2013
|
|||||||
Tax at statutory effective tax rate
|
$ | (984 | ) | $ | 1,553 | |||
State and local taxes, net of federal income tax benefit
|
58 | 1,362 | ||||||
Bank owned life insurance
|
(14 | ) | (42 | ) | ||||
Non-deductible meals and entertainment
|
3 | 3 | ||||||
Non-deductible transaction costs
|
120 | 196 | ||||||
Other
|
202 | (1,933 | ) | |||||
Valuation allowance
|
130 | 1,008 | ||||||
$ | (485 | ) | $ | 2,147 |
·
|
Develop a capital plan including the maintenance of tier 1 capital ratio to average assets equal to or greater than 9.00% and maintain total capital to risk weighted assets of 15.00%.
|
·
|
Have and retain qualified management;
|
·
|
Develop a plan to reduce classified asset levels; and
|
·
|
Develop a liquidity plan.
|
·
|
Taking dividends from the Bank;
|
·
|
Paying dividends on shares of stock;
|
·
|
Making payments on its subordinated debentures;
|
·
|
Incurring, increasing, or guarantying any debt; and
|
·
|
Purchasing or redeeming any shares of stock.
|
For Capital
|
To Be Well
|
United
|
||||||||||||||||||||||||||||||
Adequacy
|
Capitalized
|
Central Bank
|
||||||||||||||||||||||||||||||
Actual
|
Purposes
|
Under the PCA
|
Consent Order
|
|||||||||||||||||||||||||||||
June 30, 2014
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||||||||
Total capital to risk
|
||||||||||||||||||||||||||||||||
weighted assets
|
||||||||||||||||||||||||||||||||
Consolidated
|
$ | 120,824 | 28.82 | % | $ | 33,534 | 8.0 | % | $ | N/A | N/A | $ | N/A | N/A | ||||||||||||||||||
Bank only
|
138,653 | 33.14 | 33,471 | 8.0 | 41,838 | 10.0 | % | 62,757 | 15.0 | % | ||||||||||||||||||||||
Tier 1 capital to risk
|
||||||||||||||||||||||||||||||||
weighted assets
|
||||||||||||||||||||||||||||||||
Consolidated
|
115,067 | 27.45 | % | 16,767 | 4.0 | % | N/A | N/A | N/A | N/A | ||||||||||||||||||||||
Bank only
|
132,906 | 31.77 | 16,735 | 4.0 | 25,103 | 6.0 | % | N/A | N/A | |||||||||||||||||||||||
Tier 1 capital to average assets
|
||||||||||||||||||||||||||||||||
Consolidated
|
115,067 | 8.78 | % | 52,422 | 4.0 | % | N/A | N/A | N/A | N/A | ||||||||||||||||||||||
Bank only
|
132,906 | 10.22 | 52,005 | 4.0 | 65,006 | 5.0 | % | 117,010 | 9.0 | % |
December 31, 2013
|
||||||||||||||||||||||||||||||||
Total capital to risk
|
||||||||||||||||||||||||||||||||
weighted assets
|
||||||||||||||||||||||||||||||||
Consolidated
|
$ | 126,474 | 21.85 | % | $ | 46,303 | 8.0 | % | $ | N/A | N/A | $ | N/A |
NA
|
||||||||||||||||||
Bank only
|
141,993 | 24.53 | 46,303 | 8.0 | 57,878 | 10.0 | % | 85,415 | 15.0 | % | ||||||||||||||||||||||
Tier 1 capital to risk
|
||||||||||||||||||||||||||||||||
weighted assets
|
||||||||||||||||||||||||||||||||
Consolidated
|
118,523 | 20.48 | % | 23,151 | 4.0 | % | N/A | N/A | N/A |
NA
|
||||||||||||||||||||||
Bank only
|
134,042 | 23.16 | 23,151 | 4.0 | 34,727 | 6.0 | % | N/A |
NA
|
|||||||||||||||||||||||
Tier 1 capital to average assets
|
||||||||||||||||||||||||||||||||
Consolidated
|
118,523 | 7.97 | % | 59,518 | 4.0 | % | N/A | N/A | N/A |
NA
|
||||||||||||||||||||||
Bank only
|
134,042 | 9.08 | 59,059 | 4.0 | 73,824 | 5.0 | % | 132,877 | 9.0 | % |
Level 1
|
Level 2
|
Level 3
|
||||||||||
June 30, 2014
|
||||||||||||
Available for sale
|
||||||||||||
U.S. Treasuries
|
$ | 165 | $ | - | $ | - | ||||||
Govt Agency
|
- | 205,742 | - | |||||||||
Residential Mortgage-backed securities
|
||||||||||||
FNMA
|
- | 123,282 | - | |||||||||
FHLMC
|
- | 33,724 | - | |||||||||
GNMA
|
- | 286,900 | - | |||||||||
CRA fund
|
19,831 | - | - | |||||||||
Other securities
|
- | 100 | - | |||||||||
Total
|
$ | 19,996 | $ | 649,748 | $ | - | ||||||
Level 1
|
Level 2
|
Level 3
|
||||||||||
December 31, 2013
|
||||||||||||
Available for sale
|
||||||||||||
U.S. Treasuries
|
$ | 166 | $ | - | $ | - | ||||||
Govt Agency
|
- | 72,517 | - | |||||||||
Residential Mortgage-backed securities
|
||||||||||||
FNMA
|
- | 132,413 | - | |||||||||
FHLMC
|
- | 52,036 | - | |||||||||
GNMA
|
- | 45,133 | - | |||||||||
CRA fund
|
19,460 | - | - | |||||||||
Other securities
|
- | 100 | - | |||||||||
Total
|
$ | 19,626 | $ | 302,199 | $ | - |
Level 1
|
Level 2
|
Level 3
|
||||||||||
June 30, 2014
|
||||||||||||
Impaired loans
|
||||||||||||
Commercial real estate
|
$ | - | $ | - | $ | 91,774 | ||||||
Commercial and industrial
|
- | - | 334 | |||||||||
Residential real estate and other
|
- | - | 5,202 | |||||||||
Other real estate owned-
|
||||||||||||
Commercial real estate
|
- | - | 11,427 | |||||||||
Total
|
$ | - | $ | - | $ | 108,737 | ||||||
Level 1
|
Level 2
|
Level 3
|
||||||||||
December 31, 2013
|
||||||||||||
Impaired loans
|
||||||||||||
Commercial real estate
|
$ | - | $ | - | $ | 107,332 | ||||||
Commercial and industrial
|
- | - | 429 | |||||||||
Residential real estate and other
|
- | - | 10,599 | |||||||||
Other real estate owned-
|
||||||||||||
Commercial real estate
|
- | - | 18,614 | |||||||||
Total
|
$ | - | $ | - | $ | 136,974 |
Fair Value at
|
Fair Value at
|
|||||||||
Description
|
June 30, 2014
|
December 31, 2013
|
Technique
|
Unobservable Inputs
|
||||||
Impaired loans –
|
||||||||||
Commercial Real Estate
|
$ | 91,774 | $ | 107,332 |
Sales comparison approach
|
1. Management discount based on underlying
|
||||
and income approach
|
collateral characteristics and market conditions
|
|||||||||
2. Life of loan
|
||||||||||
Impaired loans –
|
||||||||||
Commercial and Industrial
|
$ | 334 | $ | 429 |
Sales comparison approach
|
1. Management discount based on underlying
|
||||
and income approach
|
collateral characteristics and market conditions
|
|||||||||
2. Life of loan
|
||||||||||
Impaired loans –
|
||||||||||
Residential and Other
|
$ | 5,202 | $ | 10,599 |
Sales comparison approach
|
1. Management discount based on underlying
|
||||
and income approach
|
collateral characteristics and market conditions
|
|||||||||
2. Life of loan
|
||||||||||
Other real estate owned –
|
||||||||||
Commercial real estate
|
$ | 11,427 | $ | 18,614 |
Sales comparison approach
|
1. Management discount based on underlying
|
||||
and income approach
|
collateral characteristics and market conditions
|
|||||||||
2. Discount rate
|
||||||||||
3. Holding period
|
June 30, 2014
|
December 31, 2013
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
Amount
|
Fair Value
|
Amount
|
Fair Value
|
|||||||||||||
Financial Assets
|
||||||||||||||||
Cash and cash equivalents
|
$ | 116,703 | $ | 116,703 | $ | 305,163 | $ | 305,163 | ||||||||
Securities available for sale
|
669,744 | 669,744 | 321,825 | 321,825 | ||||||||||||
Loans, net of allowance
|
361,623 | 343,161 | 576,226 | 537,701 | ||||||||||||
Loss share receivable and
|
||||||||||||||||
indemnification asset, net
|
17,865 | 17,865 | 92,660 | N/A | ||||||||||||
Accrued interest receivable
|
2,947 | 2,947 | 3,691 | 3,691 | ||||||||||||
FHLB stock
|
1,193 | N/A | 1,189 | N/A |
June 30, 2014
|
December 31, 2013
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
Amount
|
Fair Value
|
Amount
|
Fair Value
|
|||||||||||||
Financial Liabilities
|
||||||||||||||||
Deposits
|
$ | 1,107,298 | $ | 1,128,167 | $ | 1,251,106 | $ | 1,276,975 | ||||||||
Accrued interest payable
|
1,963 | 1,963 | 1,783 | 1,783 | ||||||||||||
Rescinded stock obligation
|
20,501 | 20,501 | 19,963 | 19,963 | ||||||||||||
FHLB advances
|
10,000 | 10,000 | 10,000 | 10,000 | ||||||||||||
Subordinated debentures
|
26,805 | 18,473 | 26,805 | 2,738 |
·
|
As a result of the acquisition, the Bank is a party to numerous litigation matters involving the foreclosure and collection of loans and assets related to the acquisition. Many of these litigation matters involve counterclaims by borrowers against the Bank as a result of certain actions taken by Mutual Bank prior to the Bank’s acquisition of such assets. The Bank has also been named as a defendant in several litigation matters arising out of actions taken by Mutual Bank with regard to such assets prior to the acquisition of such assets by the Bank as well as with regard to the management of other real estate owned previously held by Mutual Bank. To the extent the Bank remains in compliance with the SLAs, the Bank believes many of these matters are covered by SLAs.
|
·
|
During 2013, the Company and the Bank were named as defendants in a lawsuit initiated by a group of individuals alleging that that the Plaintiffs purchased shares of CBI’s stock that were misrepresented to be authorized by CBI. The Plaintiffs seek rescission of their purchase and actual damages of $2,790, plus an unspecified amount of consequential and exemplary damages for statutory fraud, fraud by non-disclosure, common law fraud, negligence and breach of fiduciary duties, interest, attorneys’ fees and costs. Discovery is ongoing.
|
·
|
In 2014, the Company and the Bank were named as defendant in additional lawsuits. The lawsuits allege that the Plaintiffs purchased shares of the Company’s stock that were misrepresented to be authorized by the Company. The Plaintiffs seek rescission of their purchase and actual damages in excess of $835, plus an unspecified amount of consequential and exemplary damages for statutory fraud, fraud by non-disclosure, common law fraud, negligence and breach of fiduciary duties, interest, attorneys’ fees and costs. As of November 7, 2014, neither the Company nor the Bank had been served in the proceeding.
|
INDEPENDENT AUDITOR’S REPORT
|
1
|
|
FINANCIAL STATEMENTS
|
||
CONSOLIDATED BALANCE SHEETS
|
3
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
4
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
|
5
|
|
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
|
6
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
7
|
|
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|
9
|
![]() |
Crowe Horwath LLP
Independent Member Crowe Horwath International
|
2013
|
2012
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$ | 15,499 | $ | 18,309 | ||||
Interest bearing deposits in other banks
|
289,664 | 490,124 | ||||||
Total cash and cash equivalents
|
305,163 | 508,433 | ||||||
Securities available for sale
|
321,825 | 127,969 | ||||||
Loans, net of allowance of $65,097 and $78,120
|
576,226 | 930,346 | ||||||
Loss share receivable and indemnification asset
|
92,660 | 100,215 | ||||||
Accrued interest receivable
|
3,691 | 3,997 | ||||||
Small Business Administration receivable, net
|
12,689 | 16,949 | ||||||
Bank owned life insurance
|
18,254 | 18,013 | ||||||
Federal Home Loan Bank stock
|
1,189 | 4,919 | ||||||
Other real estate owned, net of valuation reserve
|
34,349 | 67,507 | ||||||
Premises and equipment, net
|
23,388 | 25,783 | ||||||
Core deposit intangible
|
1,255 | 1,741 | ||||||
Deferred tax assets
|
- | 5,962 | ||||||
Federal income tax receivable
|
34,193 | 25,106 | ||||||
State income tax receivable
|
- | 621 | ||||||
Other assets
|
4,562 | 4,092 | ||||||
Total assets
|
$ | 1,429,444 | $ | 1,841,653 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Noninterest bearing deposits
|
$ | 135,848 | $ | 140,776 | ||||
Interest bearing deposits
|
1,115,258 | 1,491,760 | ||||||
Total deposits
|
1,251,106 | 1,632,536 | ||||||
Rescinded stock obligation
|
19,963 | 18,882 | ||||||
Federal Home Loan Bank advances
|
10,000 | 35,000 | ||||||
Accrued interest payable
|
1,783 | 1,547 | ||||||
Subordinated debentures
|
26,805 | 26,805 | ||||||
Deferred compensation
|
380 | 1,010 | ||||||
Supplemental executive retirement plan
|
3,784 | 4,247 | ||||||
State income tax payable
|
4,318 | - | ||||||
Deferred tax liability
|
180 | - | ||||||
Accrued expenses and other liabilities
|
18,548 | 16,272 | ||||||
Total liabilities
|
1,336,867 | 1,736,299 | ||||||
Preferred stock
|
23,585 | 23,353 | ||||||
(liquidation preference of $23,625 as of December 31, 2013 and 2012)
|
||||||||
Common stock
|
||||||||
($1.00 par, 2,843,065 outstanding at December 31, 2013 and 2012)
|
2,843 | 2,843 | ||||||
Additional paid-in capital
|
9,315 | 9,315 | ||||||
Retained earnings
|
57,852 | 67,605 | ||||||
Accumulated other comprehensive income
|
(820 | ) | 2,436 | |||||
Treasury stock, 8,983 shares at December 31, 2013 and 2012
|
(198 | ) | (198 | ) | ||||
Total stockholders’ equity
|
92,577 | 105,354 | ||||||
Total liabilities and stockholders’ equity
|
$ | 1,429,444 | $ | 1,841,653 |
2013
|
2012
|
|||||||
Interest income:
|
||||||||
Loans
|
$ | 61,659 | $ | 87,233 | ||||
Securities
|
3,160 | 3,271 | ||||||
Deposits in other banks
|
1,335 | 1,043 | ||||||
Other
|
14 | 23 | ||||||
Total interest income
|
66,168 | 91,570 | ||||||
Interest expense:
|
||||||||
Deposits
|
16,391 | 22,313 | ||||||
Federal Home Loan Bank advances
|
401 | 1,157 | ||||||
Subordinated debentures
|
472 | 523 | ||||||
Rescinded stock obligation
|
1,076 | 1,069 | ||||||
Total interest expense
|
18,340 | 25,062 | ||||||
Net interest income
|
47,828 | 66,508 | ||||||
Provision (credit) for loan losses
|
428 | (509 | ) | |||||
Net interest income (loss) after provision (credit) for loan losses
|
47,400 | 67,017 | ||||||
Noninterest income:
|
||||||||
Net loss on assets covered by FDIC loss share agreements
|
(9,793 | ) | (18,188 | ) | ||||
Gain on purchased credit impaired loans
|
10,449 | 6,445 | ||||||
Service charges on deposit accounts
|
5,395 | 4,579 | ||||||
Net servicing fees
|
1,867 | 1,971 | ||||||
Gain on sale of loans
|
- | 1,478 | ||||||
Loss on disposal of premises and equipment
|
(650 | ) | (1,967 | ) | ||||
Other
|
1,127 | 2,677 | ||||||
Total noninterest income (loss)
|
8,395 | (3,005 | ) | |||||
Noninterest expense:
|
||||||||
Salaries and employee benefits
|
24,693 | 26,297 | ||||||
Occupancy and equipment
|
7,003 | 9,192 | ||||||
Professional fees
|
13,331 | 8,377 | ||||||
Data processing services
|
2,086 | 1,651 | ||||||
Regulatory fees
|
3,587 | 4,532 | ||||||
Loan and collection fees
|
7,827 | 14,222 | ||||||
Other real estate owned
|
(771 | ) | 17,919 | |||||
Amortization of core deposit intangible
|
486 | 565 | ||||||
Advertising
|
48 | 76 | ||||||
Other
|
6,251 | 4,947 | ||||||
Total non-interest expense
|
64,541 | 87,778 | ||||||
Loss before income tax benefits
|
(8,746 | ) | (23,766 | ) | ||||
Income tax benefits
|
(606 | ) | (6,020 | ) | ||||
Net loss
|
(8,140 | ) | (17,746 | ) | ||||
Dividends and amortization on preferred stock
|
(1,613 | ) | (1,484 | ) | ||||
Net loss allocable to common stockholders
|
$ | (9,753 | ) | $ | (19,230 | ) |
2013
|
2012
|
|||||||
Net loss
|
$ | (8,140 | ) | $ | (17,746 | ) | ||
Other comprehensive income (loss):
|
||||||||
Unrealized gains/losses on securities:
|
||||||||
Holding gains on available for sale securities
|
(6,206 | ) | 861 | |||||
SERP net actuarial gain
|
1,197 | 150 | ||||||
Other comprehensive income (loss) before tax
|
(5,009 | ) | 1,011 | |||||
Tax effect
|
1,753 | (354 | ) | |||||
Total other comprehensive income (loss)
|
(3,256 | ) | 657 | |||||
Comprehensive loss
|
$ | (11,396 | ) | $ | (17,089 | ) |
|
Accumulated
|
|||||||||||||||||||||||||||||||
Common
|
Additional
|
Other
|
||||||||||||||||||||||||||||||
Shares
|
Preferred
|
Common
|
Treasury
|
Paid-in
|
Retained
|
Comprehensive | ||||||||||||||||||||||||||
Issued
|
Stock
|
Stock
|
Stock
|
Capital
|
Earnings
|
Income/(Loss) | Total | |||||||||||||||||||||||||
Balance, January 1, 2012
|
2,843,065 | 23,124 | 2,843 | (198 | ) | 9,315 | 86,835 | 1,779 | 123,698 | |||||||||||||||||||||||
Net loss
|
- | - | - | - | - | (17,746 | ) | - | (17,746 | ) | ||||||||||||||||||||||
Other comprehensive income
|
- | - | - | - | - | - | 657 | 657 | ||||||||||||||||||||||||
Cash dividends declared or accrued on preferred stock
|
- | - | - | - | - | (1,255 | ) | - | (1,255 | ) | ||||||||||||||||||||||
Amortization on preferred stock
|
- | 229 | - | - | - | (229 | ) | - | - | |||||||||||||||||||||||
Balance, December 31, 2012
|
2,843,065 | 23,353 | 2,843 | (198 | ) | 9,315 | 67,605 | 2,436 | 105,354 | |||||||||||||||||||||||
Net loss
|
- | - | - | - | - | (8,140 | ) | - | (8,140 | ) | ||||||||||||||||||||||
Other comprehensive income
|
- | - | - | - | - | - | (3,256 | ) | (3,256 | ) | ||||||||||||||||||||||
Cash dividends declared or accrued on preferred stock
|
- | - | - | - | - | (1,381 | ) | - | (1,381 | ) | ||||||||||||||||||||||
Amortization on preferred stock
|
- | 232 | - | - | - | (232 | ) | - | - | |||||||||||||||||||||||
Balance, December 31, 2013
|
2,843,065 | $ | 23,585 | $ | 2,843 | $ | (198 | ) | $ | 9,315 | $ | 57,852 | $ | (820 | ) | $ | 92,577 |
2013
|
2012
|
|||||||
Operating activities
|
||||||||
Net loss
|
$ | (8,140 | ) | $ | (17,746 | ) | ||
Adjustments to reconcile net loss to net cash
|
||||||||
provided by operating activities:
|
||||||||
Depreciation and amortization
|
1,663 | 1,904 | ||||||
Acquisition related accretion
|
(16,257 | ) | (26,723 | ) | ||||
Securities (accretion) amortization
|
1,392 | 2,445 | ||||||
Prepaid regulatory assessment
|
- | 1,133 | ||||||
Provision (credit) for loan losses
|
428 | (509 | ) | |||||
Loss on disposal of premises and equipment
|
650 | 1,967 | ||||||
Increase in indemnification asset
|
(4,367 | ) | (922 | ) | ||||
Valuation allowance on other real estate owned
|
1,881 | 18,890 | ||||||
Deferred taxes
|
9,091 | (3,343 | ) | |||||
Valuation allowance on Small Business Administration receivable
|
353 | 2,731 | ||||||
Bank owned life insurance
|
(241 | ) | (346 | ) | ||||
Amortization of core deposit intangible
|
486 | 565 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Change in accrued interest receivable
|
306 | 1,195 | ||||||
Change in other assets
|
(9,083 | ) | (25,411 | ) | ||||
Change in accrued interest payable
|
1,317 | 1,047 | ||||||
Change in accrued expenses and other liabilities
|
5,215 | (709 | ) | |||||
Change in deferred compensation and retirement plan
|
(1,093 | ) | (2,623 | ) | ||||
Net cash used in operating activities
|
(16,399 | ) | (46,455 | ) | ||||
Investing activities
|
||||||||
Maturities and sales of securities available for sale
|
33,738 | 41,849 | ||||||
Purchases of securities available for sale
|
(235,191 | ) | - | |||||
Net decrease in loans
|
360,599 | 375,712 | ||||||
Proceeds from sale of other real estate owned
|
52,520 | 28,458 | ||||||
Proceeds from sale of premises and equipment
|
10 | 71 | ||||||
Proceeds from SBA Receivable
|
880 | 49 | ||||||
Loss share receivable and indemnification asset payments received
|
4,377 | 177,730 | ||||||
Net change in loss share receivable and indemnification asset
|
(6,615 | ) | (6,310 | ) | ||||
Purchases of premises and equipment
|
72 | (824 | ) | |||||
Redemption (purchase) of Federal Home Loan Bank stock
|
3,730 | (18 | ) | |||||
Small Business Administration receivable payments
|
5,439 | 2,375 | ||||||
Net cash provided by investing activities
|
219,559 | 619,092 | ||||||
Financing activities
|
||||||||
Net change in deposits
|
(381,430 | ) | (418,493 | ) | ||||
Repayments on Federal Home Loan Bank advances, net
|
(25,000 | ) | (48,000 | ) | ||||
Net cash used in financing activities
|
(406,430 | ) | (466,493 | ) |
2013
|
2012
|
|||||||
Net increase (decrease) in cash and cash equivalents
|
$ | (203,270 | ) | $ | 106,144 | |||
Cash and cash equivalents, beginning of year
|
508,433 | 402,289 | ||||||
Cash and cash equivalents, end of year
|
$ | 305,163 | $ | 508,433 | ||||
Supplemental cash flow information:
|
||||||||
Interest paid
|
$ | 17,023 | $ | 24,015 | ||||
Income taxes paid
|
$ | (351 | ) | $ | (23,098 | ) | ||
Supplemental non-cash flow information:
|
||||||||
Transfers from loans to other real estate owned
|
$ | 21,529 | $ | 50,897 | ||||
Transfers from premises and equipment to other real estate owned
|
- | 1,362 | ||||||
Transfers from loans and other real estate owned to Small Business
|
||||||||
Administration receivable
|
2,144 | 7,412 | ||||||
Preferred stock dividends payable at year end
|
3,788 | 2,346 |
Type
|
Years
|
|
Building
|
10-30
|
|
Building improvements
|
7-10
|
|
Furniture, fixtures and equipment
|
3-10
|
|
Automobiles
|
5
|
2013
|
2012
|
|||||||
Loss share receivable and indemnification asset, January 1
|
$ | 100,215 | $ | 289,823 | ||||
Cash collected from FDIC
|
(4,377 | ) | (177,730 | ) | ||||
Increases attributable to projected credit losses
|
4,367 | 922 | ||||||
Discount accretion (amortization)
|
(14,160 | ) | (19,110 | ) | ||||
Reimbursable expenses and other claims
|
6,615 | 6,310 | ||||||
Loss share receivable and indemnification asset, December 31
|
$ | 92,660 | $ | 100,215 |
Charge-offs, net
|
$ | 457,176 | ||
Reimbursable lost accrued interest
|
6,773 | |||
Reimbursable expenses
|
58,789 | |||
Offsetting income
|
(3,261 | ) | ||
Total claims made to the FDIC
|
519,477 | |||
Current reimbursable loss share percentage
|
80 | % | ||
Total reimbursable claims made to the FDIC
|
$ | 415,581 |
2009
|
$ | - | ||
2010
|
233,474 | |||
2011
|
- | |||
2012
|
177,730 | |||
2013
|
4,377 | |||
Total
|
$ | 415,581 |
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
December 31, 2013
|
||||||||||||||||
US Treasuries
|
$ | 151 | 15 | $ | - | $ | 166 | |||||||||
US Agencies
|
73,174 | 96 | (753 | ) | 72,517 | |||||||||||
Residential Mortgage-backed:
|
||||||||||||||||
FNMA
|
133,783 | 1,157 | (2,527 | ) | 132,413 | |||||||||||
FHLMC
|
51,532 | 970 | (466 | ) | 52,036 | |||||||||||
GNMA
|
44,346 | 787 | - | 45,133 | ||||||||||||
CRA Fund
|
20,001 | (541 | ) | 19,460 | ||||||||||||
Other
|
100 | - | - | 100 | ||||||||||||
Total
|
$ | 323,087 | $ | 3,025 | $ | (4,287 | ) | $ | 321,825 |
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
December 31, 2012
|
||||||||||||||||
US Treasuries
|
$ | 150 | $ | 23 | $ | - | $ | 173 | ||||||||
Residential Mortgage-backed:
|
||||||||||||||||
FNMA
|
35,757 | 1,568 | - | 37,325 | ||||||||||||
FHLMC
|
46,717 | 1,339 | - | 48,056 | ||||||||||||
GNMA
|
19,793 | 1,345 | - | 21,138 | ||||||||||||
Municipals
|
507 | 6 | - | 513 | ||||||||||||
CRA Fund
|
20,001 | 663 | - | 20,664 | ||||||||||||
Other
|
100 | - | - | 100 | ||||||||||||
Total
|
$ | 123,025 | $ | 4,944 | $ | - | $ | 127,969 |
Amortized
|
Fair
|
|||||||
Cost
|
Value
|
|||||||
Securities available for sale
|
||||||||
Due in one year or less
|
$ | 10,000 | $ | 9,998 | ||||
Due after one year through five years
|
31,285 | 31,100 | ||||||
Due after five years through ten years
|
22,566 | 22,143 | ||||||
Due after ten years
|
9,474 | 9,442 | ||||||
Mortgage-backed Securities
|
229,661 | 229,582 | ||||||
CRA fund and other (no contractual maturity)
|
20,101 | 19,560 | ||||||
Total
|
$ | 323,087 | $ | 321,825 |
2013
|
2012
|
|||||||
Non-covered loans:
|
||||||||
Commercial non-owner occupied
|
$ | 220,335 | $ | 304,944 | ||||
Commercial owner occupied
|
186,722 | 305,979 | ||||||
Construction
|
1,544 | 21,478 | ||||||
Commercial and industrial
|
7,880 | 18,684 | ||||||
First lien mortgages
|
339 | 560 | ||||||
Junior lien mortgages
|
159 | 278 | ||||||
Other
|
685 | 1,017 | ||||||
Total non-covered loans
|
417,664 | 652,940 | ||||||
Deferred loan fees and origination costs, net
|
(1,560 | ) | (2,877 | ) | ||||
Allowance for loan losses on non-covered loans
|
(17,346 | ) | (32,295 | ) | ||||
Non-covered loans, net
|
398,758 | 617,768 | ||||||
Covered loans:
|
||||||||
Commercial non-owner occupied
|
$ | 56,755 | $ | 122,966 | ||||
Commercial owner occupied
|
136,589 | 187,767 | ||||||
Construction
|
1,311 | 1,310 | ||||||
Commercial and industrial
|
4,949 | 6,342 | ||||||
First lien mortgages
|
15,789 | 26,513 | ||||||
Junior lien mortgages
|
9,011 | 10,254 | ||||||
Other
|
815 | 3,251 | ||||||
Total covered loans
|
225,219 | 358,403 | ||||||
Allowance for loan losses on covered loans
|
(47,751 | ) | (45,825 | ) | ||||
Covered loans, net
|
177,468 | 312,578 | ||||||
Loans, net
|
$ | 576,226 | $ | 930,346 |
Percentage
|
||||||||
Carrying
|
of Bank
|
|||||||
Balance
|
Tier 1 Capital
|
|||||||
Non-covered loans:
|
||||||||
Hotel/motel
|
$ | 135,503 | 101 | % | ||||
Gas station
|
128,382 | 96 | ||||||
Shopping center
|
40,590 | 30 | ||||||
Real estate - other
|
38,566 | 29 | ||||||
Office building
|
16,430 | 12 | ||||||
Restaurant
|
16,409 | 12 | ||||||
Raw land
|
13,872 | 10 | ||||||
Convenience store
|
10,295 | 8 | ||||||
Grocery store
|
7,010 | 5 | ||||||
Covered loans:
|
||||||||
Hotel/motel
|
$ | 59,669 | 44 | % | ||||
Gas station
|
33,714 | 25 | ||||||
Apartments
|
21,836 | 16 | ||||||
Raw land
|
19,540 | 15 | ||||||
Real estate - other
|
14,922 | 11 | ||||||
Retail
|
14,756 | 11 | ||||||
Service industry
|
11,882 | 9 | ||||||
RE Developer/Builder/Lessor
|
9,718 | 7 | ||||||
Restaurant
|
7,307 | 5 |
Commercial
|
Commercial
|
|||||||||||||||||||||||||||||||
Non-owner
|
Owner
|
Commercial
|
First Lien
|
Junior Lien
|
Other and
|
|||||||||||||||||||||||||||
December 31, 2013
|
Occupied
|
Occupied
|
Construction
|
and Industrial
|
Mortgages
|
Mortgages
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Beginning balance
|
$ | 14,147 | $ | 42,520 | $ | 1,550 | $ | 4,685 | $ | 6,554 | $ | 8,212 | $ | 452 | $ | 78,120 | ||||||||||||||||
Provision (credit) for loan losses
|
(10,714 | ) | (4,033 | ) | (590 | ) | 3,078 | 5,745 | 328 | 6,614 | 428 | |||||||||||||||||||||
Loans charged-off
|
(5,942 | ) | (8,978 | ) | - | (3,535 | ) | (7,001 | ) | (89 | ) | (32 | ) | (25,577 | ) | |||||||||||||||||
Recoveries
|
7,986 | 2,569 | 7 | 1,028 | 470 | 56 | 10 | 12,126 | ||||||||||||||||||||||||
Ending balance
|
$ | 5,477 | $ | 32,078 | $ | 967 | $ | 5,256 | $ | 5,768 | $ | 8,507 | $ | 7,044 | $ | 65,097 |
Commercial
|
Commercial
|
|||||||||||||||||||||||||||||||
Non-owner
|
Owner
|
Commercial
|
First Lien
|
Junior Lien
|
||||||||||||||||||||||||||||
December 31, 2012
|
Occupied
|
Occupied
|
Construction
|
and industrial
|
Mortgages
|
Mortgages
|
Other
|
Total
|
||||||||||||||||||||||||
Beginning balance
|
$ | 34,019 | $ | 52,044 | $ | 7,526 | $ | 7,461 | $ | 167 | $ | 141 | $ | 71 | $ | 101,429 | ||||||||||||||||
Provision (credit) for loan losses
|
(5,772 | ) | (2,878 | ) | (5,821 | ) | (1,083 | ) | 6,693 | 7,947 | 405 | (509 | ) | |||||||||||||||||||
Loans charged-off
|
(16,604 | ) | (9,068 | ) | (218 | ) | (2,144 | ) | (365 | ) | (257 | ) | (28 | ) | (28,684 | ) | ||||||||||||||||
Recoveries
|
2,504 | 2,422 | 63 | 451 | 59 | 381 | 4 | 5,884 | ||||||||||||||||||||||||
Ending balance
|
$ | 14,147 | $ | 42,520 | $ | 1,550 | $ | 4,685 | $ | 6,554 | $ | 8,212 | $ | 452 | $ | 78,120 |
Commercial
|
Commercial
|
|||||||||||||||||||||||||||||||
Non-owner
|
Owner
|
Commercial
|
First Lien
|
Junior Lien
|
Other and
|
|||||||||||||||||||||||||||
December 31, 2013
|
Occupied
|
Occupied
|
Construction
|
and Industrial
|
Mortgages
|
Mortgages
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 387 | $ | 1,161 | $ | 242 | $ | 509 | - | $ | - | $ | - | $ | 2,299 | |||||||||||||||||
Collectively evaluated for impairment
|
3,873 | 4,389 | 39 | 552 | - | - | 6,194 | 15,047 | ||||||||||||||||||||||||
Acquired with deteriorated credit quality
|
1,217 | 26,528 | 686 | 4,195 | 5,768 | 8,507 | 850 | 47,751 | ||||||||||||||||||||||||
Total ending allowance balance
|
$ | 5,477 | $ | 32,078 | $ | 967 | $ | 5,256 | $ | 5,768 | $ | 8,507 | $ | 7,044 | $ | 65,097 | ||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 75,150 | $ | 37,486 | $ | 1,277 | $ | 517 | $ | 155 | $ | - | $ | - | $ | 114,585 | ||||||||||||||||
Collectively evaluated for impairment
|
145,185 | 149,236 | 267 | 7,363 | 184 | 159 | 685 | 303,079 | ||||||||||||||||||||||||
Acquired with deteriorated credit quality
|
56,755 | 136,589 | 1,311 | 4,949 | 15,789 | 9,011 | 815 | 225,219 | ||||||||||||||||||||||||
Total ending loan balance
|
$ | 277,090 | $ | 323,311 | $ | 2,855 | $ | 12,829 | $ | 16,128 | $ | 9,170 | $ | 1,150 | $ | 642,883 |
Commercial
|
Commercial
|
|||||||||||||||||||||||||||||||
Non-owner
|
Owner
|
Commercial
|
First Lien
|
Junior Lien
|
||||||||||||||||||||||||||||
December 31, 2012
|
Occupied
|
Occupied
|
Construction
|
and Industrial
|
Mortgages
|
Mortgages
|
Other
|
Total
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 9,559 | $ | 5,304 | $ | - | $ | 1,109 | $ | - | $ | - | $ | - | $ | 15,972 | ||||||||||||||||
Collectively evaluated for impairment
|
6,882 | 7,986 | 793 | 402 | 224 | - | 36 | 16,323 | ||||||||||||||||||||||||
Acquired with deteriorated credit quality
|
(2,294 | ) | 29,230 | 757 | 3,174 | 6,330 | 8,212 | 416 | 45,825 | |||||||||||||||||||||||
Total ending allowance balance
|
$ | 14,147 | $ | 42,520 | $ | 1,550 | $ | 4,685 | $ | 6,554 | $ | 8,212 | $ | 452 | $ | 78,120 | ||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 170,621 | $ | 75,631 | $ | 5,914 | $ | 2,198 | $ | - | $ | - | $ | - | $ | 254,364 | ||||||||||||||||
Collectively evaluated for impairment
|
134,323 | 230,348 | 15,564 | 16,486 | 560 | 278 | 1,017 | 398,576 | ||||||||||||||||||||||||
Acquired with deteriorated credit quality
|
122,966 | 187,767 | 1,310 | 6,342 | 26,513 | 10,254 | 3,251 | 358,403 | ||||||||||||||||||||||||
Total ending loan balance
|
$ | 427,910 | $ | 493,746 | $ | 22,788 | $ | 25,026 | $ | 27,073 | $ | 10,531 | $ | 4,268 | $ | 1,011,343 |
Unpaid
|
|
Allowance for
|
Average
|
Interest
|
||||||||||||||||
Principal
|
Recorded
|
Loan Losses |
Recorded
|
Income
|
||||||||||||||||
December 31, 2013
|
Balance
|
Investment
|
Allocated
|
Investment
|
Recognized
|
|||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial non-owner occupied
|
$ | 109,642 | $ | 71,853 | $ | - | $ | 117,530 | $ | 3,683 | ||||||||||
Commercial owner occupied
|
54,906 | 31,381 | - | 53,930 | 2,575 | |||||||||||||||
Construction
|
- | - | - | - | - | |||||||||||||||
Commercial and industrial
|
219 | - | - | 391 | 21 | |||||||||||||||
First lien mortgages
|
158 | 155 | - | 186 | 13 | |||||||||||||||
Junior lien mortgages
|
- | - | - | - | - | |||||||||||||||
Other
|
- | - | - | - | - | |||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial non-owner occupied
|
6,471 | 3,297 | 387 | 10,286 | 551 | |||||||||||||||
Commercial owner occupied
|
12,485 | 6,105 | 1,161 | 11,360 | 484 | |||||||||||||||
Construction
|
1,277 | 1,277 | 242 | 1,296 | 92 | |||||||||||||||
Commercial and industrial
|
1,881 | 517 | 509 | 2,027 | 119 | |||||||||||||||
First lien mortgages
|
- | - | - | - | - | |||||||||||||||
Junior lien mortgages
|
- | - | - | - | - | |||||||||||||||
Other
|
- | - | - | - | - | |||||||||||||||
Total
|
$ | 187,039 | $ | 114,585 | $ | 2,299 | $ | 197,006 | $ | 7,538 |
Unpaid
|
|
Allowance for
|
Average |
Interest
|
||||||||||||||||
Principal
|
Recorded
|
Loan Losses
|
Recorded
|
Income
|
||||||||||||||||
December 31, 2012
|
Balance
|
Investment
|
Allocated
|
Investment
|
Recognized
|
|||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||
Commercial non-owner occupied
|
$ | 159,305 | $ | 130,698 | $ | - | $ | 174,649 | $ | 8,831 | ||||||||||
Commercial owner occupied
|
63,576 | 54,268 | - | 67,352 | 2,834 | |||||||||||||||
Construction
|
5,914 | 5,914 | - | 5,682 | 404 | |||||||||||||||
Commercial and industrial
|
615 | 530 | - | 705 | 37 | |||||||||||||||
First lien mortgages
|
- | - | - | - | - | |||||||||||||||
Junior lien mortgages
|
- | - | - | - | - | |||||||||||||||
Other
|
- | - | - | - | - | |||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial non-owner occupied
|
40,321 | 39,923 | 9,559 | 47,306 | 2,253 | |||||||||||||||
Commercial owner occupied
|
22,167 | 21,363 | 5,304 | 25,390 | 1,253 | |||||||||||||||
Construction
|
- | - | - | - | - | |||||||||||||||
Commercial and industrial
|
1,719 | 1,668 | 1,109 | 2,465 | 163 | |||||||||||||||
First lien mortgages
|
- | - | - | - | - | |||||||||||||||
Junior lien mortgages
|
- | - | - | - | - | |||||||||||||||
Other
|
- | - | - | - | - | |||||||||||||||
Total
|
$ | 293,617 | $ | 254,364 | $ | 15,972 | $ | 323,549 | $ | 15,775 |
Unpaid
|
|
Allowance for
|
Average
|
Interest
|
||||||||||||||||
Principal
|
Recorded
|
Loan Losses |
Recorded
|
Income
|
||||||||||||||||
December 31, 2013
|
Balance
|
Investment
|
Allocated
|
Investment
|
Recognized | |||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial non-owner occupied
|
$ | 72,018 | $ | 61,652 | $ | 1,217 | $ | 73,977 | $ | 5,728 | ||||||||||
Commercial owner occupied
|
46,771 | 63,816 | 26,528 | 74,099 | 5,278 | |||||||||||||||
Construction
|
679 | 1,311 | 687 | 1,304 | 44 | |||||||||||||||
Commercial and Industrial
|
191 | 4,650 | 4,196 | 5,185 | 62 | |||||||||||||||
First lien mortgages
|
12,188 | 15,851 | 5,768 | 17,042 | 1,673 | |||||||||||||||
Junior lien mortgages
|
530 | 9,011 | 8,507 | 9,570 | 140 | |||||||||||||||
Other
|
220 | 923 | 848 | 2,900 | 736 | |||||||||||||||
Total
|
$ | 132,597 | $ | 157,214 | $ | 47,751 | $ | 184,077 | $ | 13,661 |
Unpaid
|
Allowance for
|
Average
|
Interest
|
|||||||||||||||||
|
Principal
|
Recorded
|
Loan Losses
|
Recorded
|
Income
|
|||||||||||||||
December 31, 2012
|
Balance
|
Investment
|
Allocated
|
Investment
|
Recognized
|
|||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial owner occupied
|
$ | 343,435 | $ | 170,716 | $ | 29,230 | $ | 214,409 | $ | 21,243 | ||||||||||
Construction
|
2,720 | 1,320 | 757 | 1,325 | 47 | |||||||||||||||
Commercial and Industrial
|
28,116 | 5,543 | 3,174 | 5,310 | 872 | |||||||||||||||
First lien mortgages
|
54,529 | 26,083 | 6,330 | 29,782 | 2,555 | |||||||||||||||
Junior lien mortgages
|
21,583 | 10,264 | 8,212 | 10,753 | 662 | |||||||||||||||
Other
|
12,594 | 3,164 | 416 | 2,799 | 765 | |||||||||||||||
Total
|
$ | 462,977 | $ | 217,090 | $ | 48,119 | $ | 264,378 | $ | 26,144 |
Non Covered Loans
|
Covered Loans | |||||||||||||||
Loans Past
|
Loans Past
|
|||||||||||||||
Due Over
|
Due Over
|
|||||||||||||||
89 Days
|
89 Days
|
|||||||||||||||
Nonaccrual
|
Still Accruing
|
Nonaccrual
|
Still Accruing
|
|||||||||||||
December 31, 2013
|
||||||||||||||||
Commercial non-owner occupied
|
$ | 66,258 | $ | - | $ | - | $ | 51,079 | ||||||||
Commercial owner occupied
|
41,831 | - | - | 91,107 | ||||||||||||
Construction
|
- | - | - | 631 | ||||||||||||
Commercial and industrial
|
482 | - | - | 4,949 | ||||||||||||
First lien mortgages
|
155 | - | - | 13,461 | ||||||||||||
Junior lien mortgages
|
- | - | - | 8,421 | ||||||||||||
Other
|
37 | - | - | 815 | ||||||||||||
Total
|
$ | 108,763 | $ | - | $ | - | $ | 170,463 |
Non Covered Loans
|
Covered Loans | |||||||||||||||
Loans Past
|
Loans Past
|
|||||||||||||||
Due Over
|
Due Over
|
|||||||||||||||
89 Days
|
89 Days
|
|||||||||||||||
Nonaccrual
|
Still Accruing
|
Nonaccrual
|
Still Accruing
|
|||||||||||||
December 31, 2012
|
||||||||||||||||
Commercial non-owner occupied
|
$ | 106,912 | $ | - | $ | - | $ | 106,662 | ||||||||
Commercial owner occupied
|
58,128 | - | - | 122,703 | ||||||||||||
Construction
|
- | - | - | 640 | ||||||||||||
Commercial and industrial
|
3,946 | - | - | 6,342 | ||||||||||||
First lien mortgages
|
160 | - | - | 15,050 | ||||||||||||
Junior lien mortgages
|
77 | - | - | 2,817 | ||||||||||||
Other
|
53 | - | - | 3,154 | ||||||||||||
Total
|
$ | 169,276 | $ | - | $ | - | $ | 257,368 |
30 - 59 | 60 - 89 |
Greater than
|
||||||||||||||||||||||
Days
|
Days
|
89 Days
|
Total
|
Loans Not
|
||||||||||||||||||||
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Total
|
|||||||||||||||||||
December 31, 2013
|
||||||||||||||||||||||||
Non-covered loans:
|
||||||||||||||||||||||||
Commercial non-owner
|
||||||||||||||||||||||||
occupied
|
$ | 2,470 | $ | 3,424 | $ | 66,258 | $ | 72,152 | $ | 148,183 | $ | 220,335 | ||||||||||||
Commercial owner
|
||||||||||||||||||||||||
occupied
|
4,120 | 5,147 | 41,831 | 51,098 | 135,624 | 186,722 | ||||||||||||||||||
Construction
|
268 | - | - | 268 | 1,276 | 1,544 | ||||||||||||||||||
Commercial and industrial
|
140 | 50 | 482 | 672 | 7,208 | 7,880 | ||||||||||||||||||
First lien mortgages
|
- | - | 155 | 155 | 184 | 339 | ||||||||||||||||||
Junior lien mortgages
|
- | - | - | - | 159 | 159 | ||||||||||||||||||
Other
|
- | - | 37 | 37 | 648 | 685 | ||||||||||||||||||
Total non-covered loans
|
6,998 | 8,621 | 108,763 | 124,382 | 293,282 | 417,664 | ||||||||||||||||||
December 31, 2013
|
||||||||||||||||||||||||
Covered loans:
|
||||||||||||||||||||||||
Commercial non-owner
|
||||||||||||||||||||||||
occupied
|
- | 74 | 51,079 | 51,153 | 5,602 | 56,755 | ||||||||||||||||||
Commercial owner
|
||||||||||||||||||||||||
occupied
|
- | 2,438 | 91,107 | 93,545 | 43,044 | 136,589 | ||||||||||||||||||
Construction
|
- | - | 631 | 631 | 680 | 1,311 | ||||||||||||||||||
Commercial and industrial
|
- | - | 4,949 | 4,949 | - | 4,949 | ||||||||||||||||||
First lien mortgages
|
- | - | 13,461 | 13,461 | 2,328 | 15,789 | ||||||||||||||||||
Junior lien mortgages
|
- | - | 8,421 | 8,421 | 590 | 9,011 | ||||||||||||||||||
Other
|
- | - | 815 | 815 | - | 815 | ||||||||||||||||||
Total covered loans
|
- | 2,512 | 170,463 | 172,975 | 52,244 | 225,219 | ||||||||||||||||||
Total
|
$ | 6,998 | $ | 11,133 | $ | 279,226 | $ | 297,357 | $ | 345,526 | $ | 642,883 | ||||||||||||
December 31, 2012
|
||||||||||||||||||||||||
Non-covered loans:
|
||||||||||||||||||||||||
Commercial non-owner
|
||||||||||||||||||||||||
occupied
|
$ | 9,382 | $ | 4,212 | $ | 49,348 | $ | 62,942 | $ | 242,002 | $ | 304,944 | ||||||||||||
Commercial owner
|
||||||||||||||||||||||||
occupied
|
11,148 | 4,470 | 43,256 | 58,874 | 247,105 | 305,979 | ||||||||||||||||||
Construction
|
2,117 | - | - | 2,117 | 19,361 | 21,478 | ||||||||||||||||||
Commercial and industrial
|
951 | 501 | 2,526 | 3,978 | 14,706 | 18,684 | ||||||||||||||||||
First lien mortgages
|
- | - | 160 | 160 | 400 | 560 | ||||||||||||||||||
Junior lien mortgages
|
- | - | 77 | 77 | 201 | 278 | ||||||||||||||||||
Other
|
12 | 23 | - | 35 | 982 | 1,017 | ||||||||||||||||||
Total non-covered loans
|
23,610 | 9,206 | 95,367 | 128,183 | 524,757 | 652,940 |
30 - 59 | 60 - 89 |
Greater than
|
||||||||||||||||||||||
Days
|
Days
|
89 Days
|
Total
|
Loans Not
|
||||||||||||||||||||
December 31, 2012
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Total
|
||||||||||||||||||
Covered loans:
|
||||||||||||||||||||||||
Commercial non-owner
|
||||||||||||||||||||||||
occupied
|
- | 80 | 106,662 | 106,742 | 16,224 | 122,966 | ||||||||||||||||||
Commercial owner
|
||||||||||||||||||||||||
occupied
|
20,210 | 426 | 122,703 | 143,339 | 44,428 | 187,767 | ||||||||||||||||||
Construction
|
- | - | 640 | 640 | 670 | 1,310 | ||||||||||||||||||
Commercial and industrial
|
- | - | 6,342 | 6,342 | - | 6,342 | ||||||||||||||||||
First lien mortgages
|
- | 567 | 15,050 | 15,617 | 10,896 | 26,513 | ||||||||||||||||||
Junior lien mortgages
|
- | - | 2,817 | 2,817 | 7,437 | 10,254 | ||||||||||||||||||
Other
|
- | - | 3,154 | 3,154 | 97 | 3,251 | ||||||||||||||||||
Total covered loans
|
20,210 | 1,073 | 257,368 | 278,651 | 79,752 | 358,403 | ||||||||||||||||||
Total
|
$ | 43,820 | $ | 10,279 | $ | 352,735 | $ | 406,834 | $ | 604,509 | $ | 1,011,343 |
Pre-Modification
|
Post-Modification | |||||||||||
Outstanding
|
Outstanding
|
|||||||||||
Recorded
|
Recorded
|
|||||||||||
Number of Loans
|
Investment
|
Investment
|
||||||||||
December 31, 2013
|
||||||||||||
Commercial non-owner occupied
|
2 | $ | 11,857 | $ | 11,857 | |||||||
Commercial owner occupied
|
1 | 1,275 | 1,275 | |||||||||
Other
|
2 | 933 | 933 | |||||||||
Total
|
5 | $ | 14,065 | $ | 14,065 | |||||||
December 31, 2012
|
||||||||||||
Commercial non-owner occupied
|
8 | $ | 23,292 | $ | 23,292 | |||||||
Commercial owner occupied
|
8 | 21,027 | 21,027 | |||||||||
Commercial and industrial
|
4 | 376 | 376 | |||||||||
First lien mortgages
|
1 | 8,183 | 8,183 | |||||||||
Total
|
21 | $ | 52,878 | $ | 52,878 |
2013
|
2012
|
|||||||
Accruing TDRs
|
||||||||
Commercial non-owner occupied
|
$ | 29,027 | $ | 15,615 | ||||
Commercial owner occupied
|
10,106 | 24,363 | ||||||
Commercial and industrial
|
8 | 76 | ||||||
First lien mortgages
|
- | 8,145 | ||||||
Other
|
933 | - | ||||||
40,074 | 48,199 | |||||||
Nonaccrual TDRs:
|
||||||||
Commercial non-owner occupied
|
15,298 | 44,329 | ||||||
Commercial owner occupied
|
4,986 | 16,379 | ||||||
Commercial and industrial
|
246 | 688 | ||||||
20,530 | 61,396 | |||||||
Total
|
$ | 60,604 | $ | 109,595 |
December 31, 2013
|
||||||||
Subsequently Defaulted:
|
Number
|
Recorded
|
||||||
of Loans
|
Investment
|
|||||||
Commercial non-owner occupied
|
1 | $ | 4,206 | |||||
Commercial owner occupied
|
1 | 1,275 | ||||||
Other
|
1 | 912 | ||||||
Total
|
3 | $ | 6,393 |
December 31, 2012
|
||||||||
Subsequently Defaulted:
|
Number
|
Recorded
|
||||||
of Loans
|
Investment
|
|||||||
Commercial non-owner occupied
|
2 | $ | 3,981 | |||||
Commercial and industrial
|
1 | 198 | ||||||
Total
|
3 | $ | 4,179 |
Watch/Special
|
||||||||||||||||||||
Pass
|
Mention
|
Substandard | Doubtful |
Total
|
||||||||||||||||
December 31, 2013
|
||||||||||||||||||||
Commercial non-owner occupied
|
$ | 40,046 | $ | 60,285 | $ | 120,004 | $ | - | $ | 220,335 | ||||||||||
Commercial owner occupied
|
73,307 | 50,826 | 61,434 | 1,155 | 186,722 | |||||||||||||||
Construction
|
- | 268 | 1,276 | - | 1,544 | |||||||||||||||
Commercial and industrial
|
5,804 | 889 | 1,187 | - | 7,880 | |||||||||||||||
First lien mortgages
|
134 | - | 205 | - | 339 | |||||||||||||||
Junior lien mortgages
|
105 | 54 | - | - | 159 | |||||||||||||||
Other
|
627 | - | 21 | 37 | 685 | |||||||||||||||
Total non-covered
|
$ | 120,023 | $ | 112,322 | $ | 184,127 | $ | 1,192 | $ | 417,664 |
Watch/Special
|
||||||||||||||||||||
Pass
|
Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
December 31, 2012
|
||||||||||||||||||||
Commercial non-owner occupied
|
$ | 89,378 | $ | 43,526 | $ | 172,040 | $ | - | $ | 304,944 | ||||||||||
Commercial owner occupied
|
149,983 | 71,643 | 82,178 | 2,175 | 305,979 | |||||||||||||||
Construction
|
9,093 | 6,040 | 6,345 | - | 21,478 | |||||||||||||||
Commercial and industrial
|
11,671 | 1,817 | 3,809 | 1,387 | 18,684 | |||||||||||||||
First lien mortgages
|
342 | - | 218 | - | 560 | |||||||||||||||
Junior lien mortgages
|
133 | 68 | 77 | - | 278 | |||||||||||||||
Other
|
957 | - | 18 | 42 | 1,017 | |||||||||||||||
Total non-covered
|
$ | 261,557 | $ | 123,094 | $ | 264,685 | $ | 3,604 | $ | 652,940 |
2013
|
2012
|
|||||||
Commercial real estate
|
$ | 194,547 | $ | 312,043 | ||||
Commercial and industrial
|
4,949 | 6,342 | ||||||
Residential real estate
|
24,800 | 36,767 | ||||||
Other
|
923 | 3,251 | ||||||
Total covered loans
|
225,219 | 358,403 | ||||||
Allowance for loan losses
|
(47,751 | ) | (45,825 | ) | ||||
Net carrying value
|
$ | 177,468 | $ | 312,578 |
2013
|
2012
|
|||||||
Contractual principal
|
$ | 602,857 | $ | 784,862 | ||||
Accretable balance
|
(70,188 | ) | (111,323 | ) | ||||
Non-accretable balance
|
(307,450 | ) | (315,136 | ) | ||||
Allowance for loan losses
|
(47,751 | ) | (45,825 | ) | ||||
Net carrying value
|
$ | 177,468 | $ | 312,578 |
2013
|
2012
|
|||||||
Beginning balance, January 1
|
$ | 111,323 | $ | 135,420 | ||||
Accretion of income
|
(30,417 | ) | (45,833 | ) | ||||
Reclassification from non-accretable to accretable yield
|
7,116 | 44,139 | ||||||
Removals/disposals
|
(17,834 | ) | (22,403 | ) | ||||
Ending balance, December 31
|
$ | 70,188 | $ | 111,323 |
2013
|
2012
|
|||||||
|
||||||||
Submitted claims (outstanding less than 90 days)
|
$ | 1,810 | $ | 944 | ||||
Submitted claims (outstanding more than 90 days)
|
2,981 | 4,168 | ||||||
Losses incurred but not yet submitted for claims
|
9,468 | 14,568 | ||||||
Gross submitted and not yet submitted claims
|
14,259 | 19,680 | ||||||
Valuation allowance
|
(1,570 | ) | (2,731 | ) | ||||
Carrying balance, net
|
$ | 12,689 | $ | 16,949 |
Total Other
|
||||||||||||
Covered
|
Non-Covered
|
Real Estate
|
||||||||||
Assets
|
Assets
|
Owned
|
||||||||||
January 1, 2012
|
$ | 38,140 | 25,446 | 63,586 | ||||||||
Additions
|
33,500 | 17,877 | 51,377 | |||||||||
Valuation Allowances, net
|
(7,538 | ) | (11,352 | ) | (18,890 | ) | ||||||
Property disposals, losses on sales
|
||||||||||||
and reclassifications to SBA receivable
|
(16,054 | ) | (12,512 | ) | (28,566 | ) | ||||||
December 31, 2012
|
$ | 48,048 | $ | 19,459 | $ | 67,507 | ||||||
Additions
|
13,099 | 8,430 | 21,529 | |||||||||
Valuation Allowances, net
|
(490 | ) | (1,514 | ) | (2,004 | ) | ||||||
Property disposals, losses on sales
|
||||||||||||
and reclassifications to SBA receivable
|
(36,296 | ) | (16,387 | ) | (52,683 | ) | ||||||
December 31, 2013
|
$ | 24,361 | $ | 9,988 | $ | 34,349 |
2013
|
2012
|
|||||||
Land
|
$ | 5,328 | $ | 5,328 | ||||
Buildings and improvements
|
22,350 | 23,110 | ||||||
Construction in progress
|
- | 195 | ||||||
Furniture, fixtures and equipment
|
8,841 | 8,840 | ||||||
Automobiles
|
24 | 24 | ||||||
Subtotal
|
36,543 | 37,497 | ||||||
Accumulated depreciation
|
(13,155 | ) | (11,714 | ) | ||||
Total
|
$ | 23,388 | $ | 25,783 |
Amount
|
||||||||||||
Due
|
Amount
|
|||||||||||
Related
|
Due
|
Total
|
||||||||||
Year
|
Parties
|
Others
|
Amount
|
|||||||||
2014
|
$ | 225 | $ | 912 | $ | 1,137 | ||||||
2015
|
225 | 886 | 1,111 | |||||||||
2016
|
225 | 780 | 1,005 | |||||||||
2017
|
225 | 438 | 663 | |||||||||
Thereafter
|
225 | 1,362 | 1,587 | |||||||||
Total
|
$ | 1,125 | $ | 4,378 | $ | 5,503 |
Year
|
Amount
|
|||
2014
|
$ | 407 | ||
2015
|
327 | |||
2016
|
248 | |||
2017
|
169 | |||
2018
|
89 | |||
Thereafter
|
15 | |||
$ | 1,255 |
2013
|
2012
|
|||||||||||||||
Amount
|
Percentage
|
Amount | Percentage | |||||||||||||
Noninterest bearing demand accounts
|
$ | 135,848 | 10.9 | % | $ | 140,776 | 8.6 | % | ||||||||
Interest bearing demand accounts
|
32,040 | 2.6 | 29,252 | 1.8 | ||||||||||||
Savings accounts
|
17,763 | 1.4 | 18,361 | 1.1 | ||||||||||||
Limited access money market accounts
|
313,611 | 25.1 | 433,381 | 26.5 | ||||||||||||
Certificates of deposit, less than $100,000
|
344,978 | 27.6 | 441,735 | 27.1 | ||||||||||||
Certificates of deposit, $100,000 and greater
|
406,866 | 32.5 | 569,031 | 34.9 | ||||||||||||
$ | 1,251,106 | $ | 1,632,536 |
Year
|
Total
|
|||
2014
|
$ | 216,868 | ||
2015
|
184,387 | |||
2016
|
251,037 | |||
2017
|
44,832 | |||
2018
|
54,720 | |||
Total
|
$ | 751,844 |
December 31, 2013
|
December 31, 2012 | ||||||||||||
|
Weighted
|
Weighted
|
|||||||||||
Maturity
|
Amount
|
Average Rate |
Balance
|
Average Rate
|
|||||||||
2013
|
$ | - | - | $ | 25,000 |
1.565% fixed
|
|||||||
2014
|
10,000 |
0.953% fixed
|
10,000 |
0.953% fixed
|
|||||||||
$ | 10,000 | $ | 35,000 |
Year
|
Amount
|
|||
2014
|
$ | 232 | ||
2015
|
232 | |||
2016
|
232 | |||
2017
|
232 | |||
2018
|
232 | |||
2019 - 2023
|
1,613 |
2013
|
2012
|
|||||||
Service cost
|
$ | 36 | $ | 48 | ||||
Interest cost
|
330 | 146 | ||||||
Prior service cost
|
164 | 284 | ||||||
Net loss (gain)
|
16 | 47 | ||||||
$ | 546 | $ | 525 |
2013
|
2012
|
|||||||
Current expense
|
||||||||
Federal
|
$ | (13,142 | ) | $ | (2,620 | ) | ||
State
|
4,189 | 1,702 | ||||||
Deferred expense
|
||||||||
Federal
|
8,347 | (6,606 | ) | |||||
State
|
(2,016 | ) | (1,761 | ) | ||||
Valuation allowance
|
2,016 | 3,265 | ||||||
Total
|
$ | (606 | ) | $ | (6,020 | ) |
2013
|
2012
|
|||||||
Deferred tax assets
|
||||||||
Allowance for loan losses
|
$ | 25,391 | $ | 31,068 | ||||
Deferred compensation and SERP
|
1,803 | 2,023 | ||||||
Other
|
6,843 | 15,808 | ||||||
Net unrealized loss on available for sale securities
|
442 | - | ||||||
Bank premises and equipment
|
182 | - | ||||||
State net operating losses
|
5,655 | 2,389 | ||||||
Total deferred tax assets
|
40,316 | 51,288 | ||||||
Deferred tax liabilities
|
||||||||
Deferred gain on acquisition (Section 597)
|
(14,503 | ) | (29,575 | ) | ||||
Indemnified assets (Section 597)
|
(20,361 | ) | (9,598 | ) | ||||
Net unrealized gain on available for sale securities
|
- | (1,730 | ) | |||||
Bank premises and equipment
|
- | (798 | ) | |||||
Other
|
(351 | ) | (360 | ) | ||||
Total deferred tax liabilities
|
(35,215 | ) | (42,061 | ) | ||||
Valuation allowance
|
(5,281 | ) | (3,265 | ) | ||||
Net deferred tax asset
|
$ | (180 | ) | $ | 5,962 |
2013
|
2012
|
|||||||
Tax at statutory effective tax rate
|
$ | (3,061 | ) | $ | (8,318 | ) | ||
State and local taxes, net of federal income tax benefit
|
2,723 | (1,181 | ) | |||||
Bank owned life insurance
|
(84 | ) | (121 | ) | ||||
Non-deductible meals and entertainment
|
6 | 6 | ||||||
Non-deductible transaction costs
|
391 | - | ||||||
Other
|
(2,597 | ) | 329 | |||||
Valuation Allowance
|
2,016 | 3,265 | ||||||
$ | (606 | ) | $ | (6,020 | ) |
2013
|
2012
|
|||||||
Financial instruments whose contract amounts represent credit risk:
|
||||||||
Commitments to extend credit
|
$ | 4,665 | $ | 6,241 | ||||
Standby and commercial letters of credit
|
2,651 | 3,190 | ||||||
$ | 7,316 | $ | 9,431 |
·
|
Develop a capital plan including the maintenance of tier 1 capital ratio to average assets equal to or greater than 9.00% and maintain total capital to risk weighted assets of 15.00.
|
·
|
Have and retain qualified management;
|
·
|
Develop a plan to reduce classified asset levels; and
|
·
|
Develop a liquidity plan.
|
·
|
Taking dividends from the Bank;
|
·
|
Paying dividends on shares of stock;
|
·
|
Making payments on its subordinated debentures;
|
·
|
Incurring, increasing, or guarantying any debt; and
|
·
|
Purchasing or redeeming any shares of stock.
|
Actual
|
For Capital
Adequacy
Purposes
|
To Be Well
Capitalized
Under the PCA
|
United
Central Bank
Consent Order
|
|||||||||||||||||||||||||||||
December 31, 2013
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount |
Ratio
|
||||||||||||||||||||||||
Total capital to risk weighted assets
|
||||||||||||||||||||||||||||||||
Consolidated
|
$ | 126,474 | 21.85 | % | $ | 46,303 | 8.0 | % | $ | N/A | $ | |||||||||||||||||||||
Bank only
|
141,993 | 24.53 | 46,303 | 8.0 | 57,878 | 10.0 | % | 85,415 | 15.0 | % | ||||||||||||||||||||||
Tier 1 capital to risk weighted assets
|
||||||||||||||||||||||||||||||||
Consolidated
|
118,523 | 20.48 | % | 23,151 | 4.0 | % | N/A | |||||||||||||||||||||||||
Bank only
|
134,042 | 23.16 | 23,151 | 4.0 | 34,727 | 6.0 | % | |||||||||||||||||||||||||
Tier 1 capital to average assets
|
||||||||||||||||||||||||||||||||
Consolidated
|
118,523 | 7.97 | % | 59,518 | 4.0 | % | N/A | |||||||||||||||||||||||||
Bank only
|
134,042 | 9.08 | 59,059 | 4.0 | 73,824 | 5.0 | % | 132,877 | 9.0 | % | ||||||||||||||||||||||
December 31, 2012
|
||||||||||||||||||||||||||||||||
Total capital to risk weighted assets
|
||||||||||||||||||||||||||||||||
Consolidated
|
$ | 139,286 | 16.8 | % | $ | 65,795 | 8.0 | % | $ | N/A | N/A | $ | N/A | N/A | ||||||||||||||||||
Bank only
|
148,876 | 18.0 | 65,552 | 8.0 | 81,940 | 10.0 | % | 122,910 | 15.0 | % | ||||||||||||||||||||||
Tier 1 capital to risk weighted assets
|
||||||||||||||||||||||||||||||||
Consolidated
|
104,705 | 12.6 | % | 32,897 | 4.0 | % | N/A | N/A | N/A | N/A | ||||||||||||||||||||||
Bank only
|
137,493 | 16.6 | 32,776 | 4.0 | 49,164 | 6.0 | % | N/A | N/A | |||||||||||||||||||||||
Tier 1 capital to average assets
|
||||||||||||||||||||||||||||||||
Consolidated
|
104,705 | 5.5 | % | 76,005 | 4.0 | % | N/A | N/A | N/A | N/A | ||||||||||||||||||||||
Bank only
|
137,493 | 7.3 | 75,491 | 4.0 | 94,364 | 5.0 | % | 169,854 | 9.0 | % |
Level 1
|
Level 2
|
Level 3
|
||||||||||
December 31, 2013
|
||||||||||||
Available for sale
|
||||||||||||
U.S. Treasuries
|
$ | 166 | $ | - | $ | - | ||||||
Govt Agency
|
72,517 | - | - | |||||||||
Residential Mortgage-backed securities
|
||||||||||||
FNMA
|
- | 132,413 | - | |||||||||
FHLMC
|
- | 52,036 | - | |||||||||
GNMA
|
- | 45,133 | - | |||||||||
CRA fund
|
19,460 | - | - | |||||||||
Other securities
|
- | 100 | - | |||||||||
Total
|
$ | 92,143 | $ | 229,682 | $ | - |
Level 1
|
Level 2
|
Level 3
|
||||||||||
December 31, 2012
|
||||||||||||
Available for sale
|
||||||||||||
U.S. Treasuries
|
$ | 173 | $ | - | $ | - | ||||||
Residential Mortgage-backed securities
|
||||||||||||
FNMA
|
- | 37,325 | - | |||||||||
FHLMC
|
- | 48,056 | - | |||||||||
GNMA
|
- | 21,138 | - | |||||||||
Municipals
|
- | 513 | - | |||||||||
CRA fund
|
20,664 | - | - | |||||||||
Other securities
|
- | 100 | - | |||||||||
Total
|
$ | 20,837 | $ | 107,132 | $ | - |
Level 1
|
Level 2
|
Level 3
|
||||||||||
December 31, 2013
|
||||||||||||
Impaired loans
|
||||||||||||
Commercial real estate
|
$ | - | $ | - | $ | 107,332 | ||||||
Commercial and industrial
|
- | - | 429 | |||||||||
Residential real estate and other
|
- | - | 10,599 | |||||||||
Other real estate owned-
|
||||||||||||
Commercial real estate
|
- | - | 18,614 | |||||||||
Total
|
$ | - | $ | - | $ | 136,974 | ||||||
December 31, 2012
|
||||||||||||
Impaired loans
|
||||||||||||
Commercial real estate
|
$ | - | $ | - | $ | 188,472 | ||||||
Commercial and industrial
|
- | - | 2,928 | |||||||||
Residential real estate and other
|
- | - | 24,553 | |||||||||
Other real estate owned
|
||||||||||||
Commercial real estate
|
- | - | 32,146 | |||||||||
Total
|
$ | - | $ | - | $ | 248,099 |
Fair Value at
|
Fair Value at
|
||||||||||||
Description
|
December 31, 2013
|
December 31, 2012
|
Technique
|
Unobservable Inputs | |||||||||
|
|
||||||||||||
Impaired loans –
|
|||||||||||||
Commercial Real Estate
|
$ | 107,332 | $ | 188,472 |
Sales comparison approach and income approach
|
1. |
Management discount based on underlying collateral characteristics and market conditions
|
||||||
2. |
Life of loan
|
||||||||||||
Impaired loans –
|
|||||||||||||
Commercial and Industrial
|
$ | 429 | $ | 2,928 |
Sales comparison approach and income approach
|
1. |
Management discount based on underlying collateral characteristics and market conditions
|
||||||
2. |
Life of loan
|
||||||||||||
Impaired loans –
|
|||||||||||||
Residential and Other.
|
$ | 10,599 | $ | 24,553 |
Sales comparison approach and income approach
|
1. |
Management discount based on underlying collateral characteristics and market conditions
|
||||||
2. |
Life of loan
|
||||||||||||
Other real estate owned –
|
|||||||||||||
Commercial real estate
|
$ | 18,614 | $ | 32,146 |
Sales comparison approach and income approach r
|
1. |
Management discount based on underlying collateral characteristics and market conditions
|
||||||
2. |
Discount rate
|
||||||||||||
3. |
Holding period
|
December 31, 2013
|
December 31, 2012
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
Amount
|
Fair Value
|
Amount
|
Fair Value
|
|||||||||||||
Financial Assets
|
||||||||||||||||
Cash and cash equivalents
|
$ | 305,163 | $ | 305,163 | $ | 508,433 | $ | 508,433 | ||||||||
Securities available for sale
|
321,825 | 321,825 | 127,969 | 127,969 | ||||||||||||
Loans, net of allowance
|
576,226 | 537,701 | 930,346 | 921,888 | ||||||||||||
Loss share receivable and
|
||||||||||||||||
indemnification asset, net
|
92,660 | N/A | 100,215 | N/A | ||||||||||||
Accrued Interest receivable
|
3,691 | 3,691 | 3,997 | 3,997 | ||||||||||||
Federal Home Loan Bank stock
|
1,189 | N/A | 4,919 | N/A | ||||||||||||
Financial Liabilities
|
||||||||||||||||
Deposits
|
$ | 1,251,106 | $ | 1,276,975 | $ | 1,632,537 | $ | 1,667,318 | ||||||||
Accrued interest payable
|
1,783 | 1,783 | 1,547 | 1,547 | ||||||||||||
Rescinded stock obligation
|
19,963 | 19,963 | 18,882 | 18,882 | ||||||||||||
Federal Home Loan Bank advances
|
10,000 | 10,000 | 35,000 | 35,411 | ||||||||||||
Subordinated debentures
|
26,805 | 2,738 | 26,805 | 5,554 |
·
|
As a result of the acquisition, the Bank is a party to numerous litigation matters involving the foreclosure and collection of loans and assets related to the acquisition. Many of these litigation matters involve counterclaims by borrowers against the Bank as a result of certain actions taken by Mutual Bank prior to the Bank’s acquisition of such assets. The Bank has also been named as a defendant in several litigation matters arising out of actions taken by Mutual Bank with regard to such assets prior to the acquisition of such assets by the Bank as well as with regard to the management of other real estate owned previously held by Mutual Bank. To the extent the Bank remains in compliance with the SLAs, the Bank believes many of these matters are covered by SLAs.
|
·
|
During 2013, the Company and the Bank were named as defendants in a lawsuit initiated by a group of individuals alleging that that the Plaintiffs purchased shares of CBI’s stock that were misrepresented to be authorized by CBI. The Plaintiffs seek rescission of their purchase and actual damages of $2,790,000, plus an unspecified amount of consequential and exemplary damages for statutory fraud, fraud by non-disclosure, common law fraud, negligence and breach of fiduciary duties, interest, attorneys’ fees and costs. Discovery is ongoing.
|
·
|
In 2014, the Company and the Bank were named as defendant in a lawsuit. The lawsuit alleges that the Plaintiffs purchased shares of CBI’s stock that were misrepresented to be authorized by CBI. The Plaintiffs seek rescission of their purchase and actual damages in excess of $100,000, plus an unspecified amount of consequential and exemplary damages for statutory fraud, fraud by non-disclosure, common law fraud, negligence and breach of fiduciary duties, interest, attorneys’ fees and costs. As of May 9, 2014, neither UCB nor CBI had been served in the proceeding.
|
Historical
|
||||||||||||||||||
Hanmi | CBI | Pro Forma Adjustments | Pro Forma Combined | |||||||||||||||
Assets
|
||||||||||||||||||
Cash and cash equivalents
|
$ | 123,782 | $ | 116,703 | $ | (80,009 | ) | A | $ | 160,476 | ||||||||
Securities available for sale, at fair value
|
505,977 | 669,744 | 100 | B | 1,175,821 | |||||||||||||
Loans held for sale, at the lower of cost or fair value
|
3,842 | - | - | 3,842 | ||||||||||||||
Loans receivable, net of allowance for loan losses
|
2,300,810 | 361,623 | (15,819 | ) | C | 2,646,614 | ||||||||||||
Premises and equipment, net
|
13,929 | 22,629 | (4,744 | ) | D | 31,814 | ||||||||||||
Other real estate owned, net
|
1,714 | 29,477 | 2,518 | E | 33,709 | |||||||||||||
Servicing assets
|
6,355 | 544 | 1,458 | F | 8,357 | |||||||||||||
FDIC loss sharing asset, net
|
- | 17,865 | - | 17,865 | ||||||||||||||
Other intangible assets, net
|
- | 1,042 | 1,238 | G | 2,280 | |||||||||||||
Investment in federal home loan bank stock, at cost
|
16,385 | 1,193 | - | 17,578 | ||||||||||||||
Investment in federal reserve bank stock, at cost
|
11,514 | - | - | 11,514 | ||||||||||||||
Income tax assets, net
|
53,160 | 24,981 | (1) | 10,114 | H | 88,255 | ||||||||||||
Bank-owned life insurance
|
30,147 | 18,294 | - | 48,441 | ||||||||||||||
Other assets
|
27,160 | 13,534 | (1,259 | ) | I | 39,435 | ||||||||||||
Total assets
|
$ | 3,094,775 | $ | 1,277,629 | $ | (86,403 | ) | $ | 4,286,001 | |||||||||
Liabilities and Stockholders' Equity
|
||||||||||||||||||
Liabilities:
|
||||||||||||||||||
Deposits
|
$ | 2,544,849 | $ | 1,107,298 | $ | 11,321 | J | $ | 3,663,468 | |||||||||
Federal home loan bank advances
|
97,000 | 10,000 | - | 107,000 | ||||||||||||||
Subordinated debentures
|
- | 26,805 | (8,332 | ) | K | 18,473 | ||||||||||||
Rescinded stock obligation
|
- | 20,501 | - | 20,501 | ||||||||||||||
Accrued expenses and other liabilities
|
26,578 | 19,260 | (1,801 | ) | L | 44,037 | ||||||||||||
Total liabilities
|
2,668,427 | 1,183,864 | 1,188 | 3,853,479 | ||||||||||||||
Stockholders' equity
|
426,348 | 93,765 | (87,591 | ) | M | 432,522 | ||||||||||||
Total liabilities and stockholders' equity
|
$ | 3,094,775 | $ | 1,277,629 | $ | (86,403 | ) | $ | 4,286,001 |
(1)
|
Income tax assets, net includes federal income taxes receivable of $21.9 million and deferred tax asset of $7.2 million, offset by state income taxes payable of $4.1 million.
|
Historical
|
||||||||||||||||||
Hanmi | CBI | Pro Forma Adjustments | Pro Forma Combined | |||||||||||||||
Interest and dividend income:
|
||||||||||||||||||
Interest and fees on loans
|
$ | 56,545 | $ | 21,143 | $ | 4,028 | N | $ | 81,716 | |||||||||
Taxable interest on investment securities
|
4,912 | 5,237 | - | 10,149 | ||||||||||||||
Others
|
946 | 251 | - | 1,197 | ||||||||||||||
Total interest and dividend income
|
62,403 | 26,631 | 4,028 | 93,062 | ||||||||||||||
Interest expense
|
6,453 | 6,716 | (2,334 | ) | O | 10,835 | ||||||||||||
Net interest income before provision for credit losses
|
55,950 | 19,915 | 6,362 | 82,227 | ||||||||||||||
Negative provision for credit losses
|
7,166 | 8,930 | - | 16,096 | ||||||||||||||
Net interest income after provision for credit losses
|
63,116 | 28,845 | 6,362 | 98,323 | ||||||||||||||
Noninterest income:
|
||||||||||||||||||
Service charges on deposit accounts
|
5,041 | 2,247 | - | 7,288 | ||||||||||||||
Gain on purchased credit impaired loans
|
- | 10,929 | - | 10,929 | ||||||||||||||
Gain on sales of SBA loans guaranteed portion
|
1,045 | - | - | 1,045 | ||||||||||||||
Loss on assets covered by FDIC loss share agreements
|
- | (20,985 | ) | - | (20,985 | ) | ||||||||||||
Others
|
4,815 | 2,292 | - | 7,107 | ||||||||||||||
Total non-interest income
|
10,901 | (5,517 | ) | - | 5,384 | |||||||||||||
Noninterest expense:
|
||||||||||||||||||
Salaries and employee benefits
|
20,539 | 12,471 | - | 33,010 | ||||||||||||||
Occupancy and equipment
|
4,866 | 3,514 | - | 8,380 | ||||||||||||||
Professional fees
|
1,557 | 3,334 | (318 | ) | P | 4,573 | ||||||||||||
Others
|
9,868 | 6,821 | 1,093 | Q | 17,782 | |||||||||||||
Total noninterest expense
|
36,830 | 26,140 | 775 | 63,745 | ||||||||||||||
Income (loss) from continuting operations before provision for income taxes
|
37,187 | (2,812 | ) | 5,587 | 39,962 | |||||||||||||
Provision (benefit) for income taxes
|
14,710 | (485 | ) | 2,349 | R | 16,574 | ||||||||||||
Income (loss) from continuting operations, net of taxes
|
$ | 22,477 | $ | (2,327 | ) | $ | 3,238 | $ | 23,388 | |||||||||
Loss from discontinued operations
|
444 | - | - | 444 | ||||||||||||||
Net income (loss)
|
$ | 22,033 | $ | (2,327 | ) | $ | 3,238 | $ | 22,944 | |||||||||
Dividends and amortization on preferred stock
|
- | (1,162 | ) | 1,162 | S | - | ||||||||||||
Net income (loss) available to commom shareholders
|
$ | 22,033 | $ | (3,489 | ) | $ | 4,400 | $ | 22,944 | |||||||||
Basic earnings (loss) per share:
|
||||||||||||||||||
Income (loss) from continuing operations, net of taxes
|
$ | 0.71 | $ | (1.23 | ) | $ | 0.14 | $ | 0.74 | |||||||||
Loss from discontinued operations, net of taxes
|
(0.01 | ) | - | - | (0.01 | ) | ||||||||||||
Basic earnings (loss) per share
|
$ | 0.70 | $ | (1.23 | ) | $ | 0.14 | $ | 0.72 | |||||||||
Diluted earnings (loss) per share:
|
||||||||||||||||||
Income (loss) from continuing operations, net of taxes
|
$ | 0.70 | $ | (1.23 | ) | $ | 0.14 | $ | 0.73 | |||||||||
Loss from discontinued operations, net of taxes
|
(0.01 | ) | - | - | (0.01 | ) | ||||||||||||
Diluted earnings (loss) per share
|
$ | 0.69 | $ | (1.23 | ) | $ | 0.14 | $ | 0.72 | |||||||||
Weighted-average shares outstanding:
|
||||||||||||||||||
Basic
|
31,670,436 | 2,843,065 | (2,843,065 | ) | 31,670,436 | |||||||||||||
Diluted
|
31,950,313 | 2,843,065 | (2,843,065 | ) | 31,950,313 |
Historical
|
||||||||||||||||||
Hanmi | CBI | Pro Forma Adjustments | Pro Forma Combined | |||||||||||||||
Interest and dividend income:
|
||||||||||||||||||
Interest and fees on loans
|
$ | 111,992 | $ | 61,659 | $ | 10,856 | N | $ | 184,507 | |||||||||
Taxable interest on investment securities
|
8,434 | 3,160 | - | 11,594 | ||||||||||||||
Others
|
1,902 | 1,349 | - | 3,251 | ||||||||||||||
Total interest and dividend income
|
122,328 | 66,168 | 10,856 | 199,352 | ||||||||||||||
Interest expense
|
13,507 | 18,340 | (6,475 | ) | O | 25,372 | ||||||||||||
Net interest income before provision for credit losses
|
108,821 | 47,828 | 17,331 | 173,980 | ||||||||||||||
Provision for credit losses
|
- | 428 | - | 428 | ||||||||||||||
Net interest income after provision for credit losses
|
108,821 | 47,400 | 17,331 | 173,552 | ||||||||||||||
Noninterest income:
|
||||||||||||||||||
Service charges on deposit accounts
|
11,307 | 5,395 | - | 16,702 | ||||||||||||||
Gain on purchased credit impaired loans
|
- | 10,449 | - | 10,449 | ||||||||||||||
Gain on sales of SBA loans guaranteed portion
|
8,000 | - | - | 8,000 | ||||||||||||||
Loss on assets covred by FDIC loss share agreements
|
- | (9,793 | ) | - | (9,793 | ) | ||||||||||||
Others
|
6,880 | 2,344 | - | 9,224 | ||||||||||||||
Total non-interest income
|
26,187 | 8,395 | - | 34,582 | ||||||||||||||
Noninterest expense:
|
||||||||||||||||||
Salaries and employee benefits
|
35,129 | 24,693 | - | 59,822 | ||||||||||||||
Occupancy and equipment
|
10,017 | 7,003 | - | 17,020 | ||||||||||||||
Professional fees
|
7,396 | 13,331 | (3,580 | ) | P | 17,147 | ||||||||||||
Others
|
19,950 | 19,514 | 2,218 | Q | 41,682 | |||||||||||||
Total noninterest expense
|
72,492 | 64,541 | (1,362 | ) | 135,671 | |||||||||||||
Income (loss) from continuting operations before provision for income taxes
|
62,516 | (8,746 | ) | 18,693 | 72,463 | |||||||||||||
Provision (benefit) for income taxes
|
22,732 | (606 | ) | 7,860 | R | 29,986 | ||||||||||||
Income (loss) from continuting operations, net of taxes
|
$ | 39,784 | $ | (8,140 | ) | $ | 10,833 | $ | 42,477 | |||||||||
Income from discontinued operations
|
74 | - | - | 74 | ||||||||||||||
Net income (loss)
|
$ | 39,858 | $ | (8,140 | ) | $ | 10,833 | $ | 42,551 | |||||||||
Dividends and amortization on preferred stock
|
- | (1,613 | ) | 1,613 | S | - | ||||||||||||
Net income (loss) available to commom shareholders
|
$ | 39,858 | $ | (9,753 | ) | $ | 12,446 | $ | 42,551 | |||||||||
Basic earnings (loss) per share:
|
||||||||||||||||||
Income (loss) from continuing operations, net of taxes
|
$ | 1.26 | $ | (3.43 | ) | $ | 0.39 | $ | 1.35 | |||||||||
Income from discontinued operations, net of taxes
|
- | - | - | - | ||||||||||||||
Basic earnings (loss) per share
|
$ | 1.26 | $ | (3.43 | ) | $ | 0.39 | $ | 1.35 | |||||||||
Diluted earnings (loss) per share:
|
||||||||||||||||||
Income (loss) from continuing operations, net of taxes
|
$ | 1.26 | $ | (3.43 | ) | $ | 0.39 | $ | 1.34 | |||||||||
Income from discontinued operations, net of taxes
|
- | - | - | - | ||||||||||||||
Diluted earnings (loss) per share
|
$ | 1.26 | $ | (3.43 | ) | $ | 0.39 | $ | 1.34 | |||||||||
Weighted-average shares outstanding:
|
||||||||||||||||||
Basic
|
31,598,913 | 2,843,065 | (2,843,065 | ) | 31,598,913 | |||||||||||||
Diluted
|
31,696,520 | 2,843,065 | (2,843,065 | ) | 31,696,520 |
A.
|
Represent cash consideration of $50.0 million to CBI shareholders, preferred stock liquidation of $23.6 million, accrued dividend of $4.9 million for preferred stock holders and accrued interest of $1.5 million for subordinated debentures.
|
B.
|
Represents the estimated fair value adjustment to investment securities available for sale.
|
C.
|
Represents the estimated fair value adjustments to the acquired loans. Accordingly, the existing CBI allowance for loan losses of $47.0 million was not carried over.
|
D.
|
Represents the estimated fair value adjustment to the acquired premises and equipment.
|
E.
|
Represents the estimated fair value adjustments to the acquired other real estate owned.
|
F.
|
Represents the estimated fair value adjustment of servicing assets.
|
G.
|
Represents the recognition of the fair value of the core deposit intangible asset and the elimination of CBI’s historical intangible assets. Core deposits exclude time deposits.
|
H.
|
Represents the estimated deferred tax assets related to the fair value adjustments for acquired assets and assumed liabilities using a combined federal and state tax rate of 42 percent.
|
I.
|
Represents the write-off of prepaid items and other assets that have no value to the combined company.
|
J.
|
Represents the fair value adjustment to time deposits.
|
K.
|
Represents the fair value adjustment to subordinated debentures.
|
L.
|
Represents fair value adjustments primarily related to contingent liabilities at the date of the acquisition, accrued dividend on preferred stock and accrued interest on subordinated debentures.
|
M.
|
Represents the elimination of CBI common equity of $70.1 million, preferred stock of $23.6 million and the recognition of a $6.2 million bargain purchase gain resulting from purchase price being less than the fair value of net assets acquired.
|
N.
|
Represents the accretion of discount on loans over the estimated weighted average remaining life of the loan portfolio of 34 months.
|
O.
|
Represents the accretions of the time deposit fair value adjustment using a level yield method over approximately 5 years and the amortization of the subordinated debentures fair value adjustment using a level yield method over approximately 21 years.
|
P.
|
Represents non-recurring acquisition costs mainly consisting of legal and investment advisory fees.
|
Q.
|
Represents the amortizations of core deposit intangible using an accelerated method over 10 years and other assets fair value adjustment.
|
R.
|
Represents the tax impact of the pro forma merger adjustments using a combined federal and state tax rate of 42 percent.
|
S.
|
Represents the elimination of dividends and amortization on preferred stock.
|
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