Michigan | 61-1511150 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
2301 West Big Beaver Rd, Suite 525 Troy, Michigan | 48084 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer x | Accelerated filer o | |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Page | ||
• | general economic conditions (both generally and in our markets) may be less favorable than expected, which could result in, among other things, a deterioration in credit quality, a reduction in demand for credit and a decline in real estate values; |
• | a general decline in the real estate and lending markets, particularly in our market areas, may negatively affect our financial results; |
• | the possibility that the previously announced merger with Chemical does not close when expected or at all because required regulatory or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all; |
• | the diversion of management time from core banking functions due to merger-related issues; |
• | potential difficulty in maintaining relationships with clients, employees or business partners as a result of our previously announced merger with Chemical; |
• | risks associated with income taxes including the potential for adverse adjustments and the inability to fully realize deferred tax benefits; |
• | fraud committed by third parties, including cybersecurity risks; |
• | our ability to raise additional capital may be impaired if current levels of market disruption and volatility continue or worsen; |
• | costs or difficulties related to the integration of the banks we acquired may be greater than expected; |
• | restrictions or conditions imposed by our regulators on our operations may make it more difficult for us to achieve our goals; |
• | legislative or regulatory changes, including changes in accounting standards and compliance requirements, may adversely affect us; |
• | competitive pressures among depository and other financial institutions may increase significantly; |
• | changes in the interest rate environment may reduce margins or the volumes or values of the loans we make or have acquired; |
• | other financial institutions have greater financial resources and may be able to develop or acquire products that enable them to compete more successfully than we can; |
• | our ability to attract and retain key personnel can be affected by the increased competition for experienced employees in the banking industry; |
• | adverse changes may occur in the bond and equity markets; |
• | war or terrorist activities may cause further deterioration in the economy or cause instability in credit markets; and |
• | economic, governmental or other factors may prevent the projected population, residential and commercial growth in the markets in which we operate. |
(Dollars in thousands, except per share data) | June 30, 2016 | December 31, 2015 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 86,571 | $ | 74,734 | ||||
Interest-bearing deposits with other banks | 185,160 | 137,589 | ||||||
Federal funds sold and other short-term investments | 188,503 | 175,000 | ||||||
Total cash and cash equivalents | 460,234 | 387,323 | ||||||
Investment securities: | ||||||||
Securities available-for-sale | 918,777 | 890,770 | ||||||
Held-to-maturity | 1,655 | 1,678 | ||||||
Total investment securities | 920,432 | 892,448 | ||||||
Federal Home Loan Bank stock | 29,621 | 29,621 | ||||||
Loans held for sale, at fair value | 38,770 | 58,223 | ||||||
Loans: | ||||||||
Commercial real estate | 1,661,790 | 1,568,097 | ||||||
Residential real estate (includes $23.6 million and $22.2 million respectively, measured at fair value) (1) | 1,674,615 | 1,547,799 | ||||||
Commercial and industrial | 1,282,641 | 1,257,406 | ||||||
Real estate construction | 257,111 | 241,603 | ||||||
Consumer | 171,957 | 191,795 | ||||||
Total loans | 5,048,114 | 4,806,700 | ||||||
Less: Allowance for loan losses | (51,586 | ) | (53,953 | ) | ||||
Net total loans | 4,996,528 | 4,752,747 | ||||||
Premises and equipment | 41,070 | 43,570 | ||||||
Other real estate owned and repossessed assets | 20,563 | 28,259 | ||||||
Loan servicing rights | 47,696 | 58,113 | ||||||
Core deposit intangible | 11,593 | 12,808 | ||||||
Goodwill | 3,524 | 3,524 | ||||||
Company-owned life insurance | 109,984 | 107,065 | ||||||
Income tax benefit | 165,948 | 177,183 | ||||||
Other assets | 66,759 | 45,006 | ||||||
Total assets | $ | 6,912,722 | $ | 6,595,890 | ||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand deposits | $ | 1,148,558 | $ | 1,011,414 | ||||
Interest-bearing demand deposits | 911,509 | 849,599 | ||||||
Money market and savings deposits | 1,263,599 | 1,314,909 | ||||||
Time deposits | 1,554,946 | 1,609,895 | ||||||
Other brokered funds | 388,596 | 228,764 | ||||||
Total deposits | 5,267,208 | 5,014,581 | ||||||
Short-term borrowings | 525,960 | 348,998 | ||||||
Long-term debt | 296,656 | 464,057 | ||||||
Other liabilities | 53,923 | 43,039 | ||||||
Total liabilities | 6,143,747 | 5,870,675 | ||||||
Commitments and Contingencies (2) | ||||||||
Shareholders’ equity | ||||||||
Preferred stock - $1.00 par value | ||||||||
Authorized - 20,000,000 shares at 6/30/2016 and 12/31/2015 | ||||||||
Issued and outstanding - 0 shares at 6/30/2016 and 12/31/2015 | — | — | ||||||
Common stock: | ||||||||
Class A Voting Common Stock - $1.00 par value | ||||||||
Authorized - 198,000,000 shares at 6/30/2016 and at 12/31/2015 | ||||||||
Issued and outstanding - 67,194,703 shares at 6/30/2016 and 66,114,798 shares at 12/31/2015 | 67,195 | 66,115 | ||||||
Class B Non-Voting Common Stock - $1.00 par value | ||||||||
Authorized - 2,000,000 shares at 6/30/2016 and 12/31/2015 | ||||||||
Issued and outstanding - 0 shares at 6/30/2016 and 12/31/2015 | — | — | ||||||
Additional paid-in-capital | 316,616 | 316,571 | ||||||
Retained earnings | 373,762 | 339,130 | ||||||
Accumulated other comprehensive income, net of tax | 11,402 | 3,399 | ||||||
Total shareholders’ equity | 768,975 | 725,215 | ||||||
Total liabilities and shareholders’ equity | $ | 6,912,722 | $ | 6,595,890 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars and shares in thousands, except per share data) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Interest income | ||||||||||||||||
Interest and fees on loans | $ | 57,915 | $ | 58,319 | $ | 114,275 | $ | 118,257 | ||||||||
Interest on investments | ||||||||||||||||
Taxable | 3,414 | 2,375 | 6,654 | 4,698 | ||||||||||||
Tax-exempt | 2,053 | 1,658 | 4,044 | 3,273 | ||||||||||||
Total interest on securities | 5,467 | 4,033 | 10,698 | 7,971 | ||||||||||||
Interest on interest-earning cash balances | 82 | 117 | 266 | 203 | ||||||||||||
Interest on federal funds and other short-term investments | 600 | 269 | 1,068 | 434 | ||||||||||||
Dividends on FHLB stock | 312 | 224 | 624 | 469 | ||||||||||||
FDIC indemnification asset | — | (8,548 | ) | — | (17,798 | ) | ||||||||||
Total interest income | 64,376 | 54,414 | 126,931 | 109,536 | ||||||||||||
Interest Expense | ||||||||||||||||
Interest-bearing demand deposits | 675 | 382 | 1,076 | 672 | ||||||||||||
Money market and savings deposits | 650 | 562 | 1,317 | 1,033 | ||||||||||||
Time deposits | 3,296 | 2,131 | 6,410 | 3,958 | ||||||||||||
Other brokered funds | 841 | 607 | 1,459 | 1,230 | ||||||||||||
Interest on short-term borrowings | 678 | 209 | 1,335 | 288 | ||||||||||||
Interest on long-term debt | 842 | 914 | 1,842 | 1,714 | ||||||||||||
Total interest expense | 6,982 | 4,805 | 13,439 | 8,895 | ||||||||||||
Net interest income | 57,394 | 49,609 | 113,492 | 100,641 | ||||||||||||
Provision (benefit) for loan losses | 3,208 | (7,313 | ) | 2,097 | (5,320 | ) | ||||||||||
Net interest income after provision for loan losses | 54,186 | 56,922 | 111,395 | 105,961 | ||||||||||||
Noninterest income | ||||||||||||||||
Deposit fee income | 2,420 | 2,561 | 4,817 | 4,881 | ||||||||||||
Mortgage banking and other loan fees | (2,365 | ) | 4,698 | (6,245 | ) | 3,437 | ||||||||||
Net gain on sales of loans | 7,588 | 8,748 | 12,826 | 17,366 | ||||||||||||
Accelerated discount on acquired loans | 5,076 | 7,444 | 10,128 | 15,642 | ||||||||||||
Net gain (loss) on sales of securities | — | 6 | 333 | (101 | ) | |||||||||||
Company-owned life insurance | 795 | 856 | 1,545 | 1,596 | ||||||||||||
FDIC loss share income | — | (5,928 | ) | — | (6,996 | ) | ||||||||||
Other income | 3,726 | 3,713 | 7,460 | 7,703 | ||||||||||||
Total noninterest income | 17,240 | 22,098 | 30,864 | 43,528 | ||||||||||||
Noninterest expense | ||||||||||||||||
Salary and employee benefits | 26,913 | 28,685 | 52,726 | 57,897 | ||||||||||||
Occupancy and equipment expense | 6,039 | 8,415 | 12,046 | 16,081 | ||||||||||||
Data processing fees | 1,909 | 1,805 | 3,652 | 3,659 | ||||||||||||
Professional service fees | 2,547 | 3,275 | 5,837 | 6,818 | ||||||||||||
Merger and acquisition expense | 312 | 419 | 3,186 | 1,831 | ||||||||||||
Marketing expense | 1,158 | 1,483 | 2,687 | 2,578 | ||||||||||||
Other employee expense | 579 | 826 | 1,387 | 1,760 | ||||||||||||
Insurance expense | 1,485 | 1,527 | 3,035 | 3,057 | ||||||||||||
FDIC loss share expense | — | 133 | — | 1,082 | ||||||||||||
Other expense | 4,987 | 6,725 | 9,643 | 15,125 | ||||||||||||
Total noninterest expense | 45,929 | 53,293 | 94,199 | 109,888 | ||||||||||||
Income before income taxes | 25,497 | 25,727 | 48,060 | 39,601 | ||||||||||||
Income tax provision | 5,344 | 8,179 | 6,752 | 12,620 | ||||||||||||
Net income | $ | 20,153 | $ | 17,548 | $ | 41,308 | $ | 26,981 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.30 | $ | 0.25 | $ | 0.62 | $ | 0.38 | ||||||||
Diluted | $ | 0.28 | $ | 0.23 | $ | 0.58 | $ | 0.36 | ||||||||
Average common shares outstanding - basic | 66,011 | 70,301 | 65,824 | 70,259 | ||||||||||||
Average common shares outstanding - diluted | 70,026 | 74,900 | 69,889 | 75,046 | ||||||||||||
Cash dividends declared on common stock | $ | 3,356 | $ | 709 | $ | 6,676 | $ | 1,415 | ||||||||
Cash dividends declared per common share | $ | 0.05 | $ | 0.01 | $ | 0.10 | $ | 0.02 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 20,153 | $ | 17,548 | $ | 41,308 | $ | 26,981 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Unrealized holding gains (losses) on securities available-for-sale arising during the period | 7,332 | (7,431 | ) | 14,931 | (3,008 | ) | ||||||||||
Reclassification adjustment for (gains) losses on realized income | — | (6 | ) | (333 | ) | 101 | ||||||||||
Tax effect | (2,566 | ) | 2,603 | (5,109 | ) | 1,017 | ||||||||||
Net unrealized gains (losses) on securities available-for-sale, net of tax | 4,766 | (4,834 | ) | 9,489 | (1,890 | ) | ||||||||||
Unrealized gains (losses) on interest rate swaps designated as cash flow hedges | (900 | ) | 558 | (2,581 | ) | 233 | ||||||||||
Reclassification adjustment for losses included in net income | 147 | 104 | 295 | 192 | ||||||||||||
Tax effect | 263 | (232 | ) | 800 | (149 | ) | ||||||||||
Net unrealized gains (losses) on interest rate swaps designated as cash flow hedges, net of tax | (490 | ) | 430 | (1,486 | ) | 276 | ||||||||||
Other comprehensive income (loss), net of tax | 4,276 | (4,404 | ) | 8,003 | (1,614 | ) | ||||||||||
Total comprehensive income, net of tax | $ | 24,429 | $ | 13,144 | $ | 49,311 | $ | 25,367 |
Additional | Accumulated Other | Total | |||||||||||||||||||||
Common Stock | Paid in | Retained | Comprehensive | Shareholders’ | |||||||||||||||||||
(In thousands) | Shares | Amount | Capital | Earnings | Income (Loss) | Equity | |||||||||||||||||
Balance at December 31, 2014 | 70,532 | $ | 70,532 | $ | 405,436 | $ | 281,789 | $ | 3,850 | $ | 761,607 | ||||||||||||
Net income | — | — | — | 26,981 | — | 26,981 | |||||||||||||||||
Other comprehensive loss | — | — | — | — | (1,614 | ) | (1,614 | ) | |||||||||||||||
Stock-based compensation expense | — | — | 866 | — | — | 866 | |||||||||||||||||
Restricted stock awards, including tax benefit | 352 | 352 | (336 | ) | — | — | 16 | ||||||||||||||||
Issuance of common shares, including tax benefit, net of stock option exercises | 245 | 245 | (388 | ) | — | — | (143 | ) | |||||||||||||||
Repurchase of warrants to purchase 2.5 million shares, at fair value | — | — | (19,892 | ) | — | — | (19,892 | ) | |||||||||||||||
Cash dividends paid on common stock ($0.02 per share) | — | — | — | (1,415 | ) | (1,415 | ) | ||||||||||||||||
Balance at June 30, 2015 | 71,129 | $ | 71,129 | $ | 385,686 | $ | 307,355 | $ | 2,236 | $ | 766,406 | ||||||||||||
Balance at December 31, 2015 | 66,115 | $ | 66,115 | $ | 316,571 | $ | 339,130 | $ | 3,399 | $ | 725,215 | ||||||||||||
Net income | — | — | — | 41,308 | — | 41,308 | |||||||||||||||||
Other comprehensive income | — | — | — | — | 8,003 | 8,003 | |||||||||||||||||
Stock-based compensation expense | — | — | 1,543 | — | — | 1,543 | |||||||||||||||||
Restricted stock awards | 303 | 303 | (303 | ) | — | — | — | ||||||||||||||||
Issuance of common shares, net of stock option exercises | 777 | 777 | (1,195 | ) | — | — | (418 | ) | |||||||||||||||
Cash dividends paid on common stock ($0.10 per share) | — | — | — | (6,676 | ) | — | (6,676 | ) | |||||||||||||||
Balance at June 30, 2016 | 67,195 | $ | 67,195 | $ | 316,616 | $ | 373,762 | $ | 11,402 | $ | 768,975 |
Six months ended June 30, | ||||||||
(Dollars in thousands) | 2016 | 2015 | ||||||
Cash flows from operating activities | ||||||||
Net income | $ | 41,308 | $ | 26,981 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 3,119 | 3,730 | ||||||
Amortization of core deposit intangibles | 1,215 | 1,314 | ||||||
Stock-based compensation expense | 1,543 | 866 | ||||||
Provision (benefit) for loan losses | 2,097 | (5,320 | ) | |||||
Originations of loans held for sale | (340,088 | ) | (664,111 | ) | ||||
Proceeds from sales of loans | 369,940 | 653,291 | ||||||
Net gain from sales of loans | (12,826 | ) | (17,366 | ) | ||||
Net (gain) loss on sales of securities | (333 | ) | 101 | |||||
Valuation allowance and writedowns on other real estate and other repossessed assets | 2,246 | 5,017 | ||||||
Valuation change in Company-owned life insurance | (1,584 | ) | (1,596 | ) | ||||
Valuation change in loan servicing rights | 14,592 | 4,850 | ||||||
Additions to loan servicing rights | (4,175 | ) | (5,848 | ) | ||||
Net decrease in FDIC indemnification asset and receivable other than payments received | — | 27,428 | ||||||
Net gain on sales of other real estate owned and repossessed assets | (2,534 | ) | (2,780 | ) | ||||
Net (increase) decrease in accrued interest receivable and other assets | (12,555 | ) | 2,399 | |||||
Net increase (decrease) in accrued expenses and other liabilities | 8,598 | (1,286 | ) | |||||
Net securities premium amortization | 4,058 | 3,535 | ||||||
Deferred income tax benefit | (1,754 | ) | (8,543 | ) | ||||
Change in valuation allowance of deferred income tax asset | (495 | ) | — | |||||
Other, net | 325 | 2,333 | ||||||
Net cash from operating activities | 72,697 | 24,995 | ||||||
Cash flows from investing activities | ||||||||
Net increase in loans | (245,031 | ) | (143,829 | ) | ||||
Purchases of loans | (10,162 | ) | (30,793 | ) | ||||
Purchases of FHLB stock | — | (6,716 | ) | |||||
Purchases of securities available-for-sale | (156,046 | ) | (187,009 | ) | ||||
New investments in Company-owned life insurance | (1,335 | ) | (875 | ) | ||||
Purchases of premises and equipment | (978 | ) | (1,907 | ) | ||||
Payments received from FDIC under loss sharing agreements | — | 3,120 | ||||||
Proceeds from: | ||||||||
Maturities and redemptions of securities available-for-sale | 123,935 | 85,238 | ||||||
Redemption of FHLB Stock | — | 2,384 | ||||||
Sale of securities available-for-sale | 14,977 | 24,750 | ||||||
Sale of loan servicing rights | — | 12,702 | ||||||
Sale of loans | 5,581 | 49,839 | ||||||
Sale of other real estate owned and repossessed assets | 14,179 | 20,428 | ||||||
Sale of premises and equipment | — | 2,737 | ||||||
Net cash provided from acquisition | — | 810 | ||||||
Net cash from (used in) investing activities | (254,880 | ) | (169,121 | ) | ||||
Cash flows from financing activities | ||||||||
Net increase in deposits | 252,627 | 157,757 | ||||||
Draw on senior unsecured line of credit | 7,500 | 30,000 | ||||||
Net increase in short-term borrowings | 169,462 | 88,202 | ||||||
Issuances of long-term FHLB advances | — | 200,000 | ||||||
Repayments of long-term FHLB advances | (165,700 | ) | (147,870 | ) | ||||
Repayments of subordinated debt | — | (3,500 | ) | |||||
Other changes in long-term debt | (1,701 | ) | (741 | ) | ||||
Repurchase of warrants to purchase 2.5 million shares, at fair value | — | (19,892 | ) | |||||
Issuance of common stock and restricted stock awards | 1,727 | 574 | ||||||
Cash paid for payroll taxes upon exercise of stock options | (2,145 | ) | (2,167 | ) | ||||
Cash dividends paid on common stock ($0.10 and $0.02 per share, respectively) | (6,676 | ) | (1,415 | ) | ||||
Net cash from financing activities | 255,094 | 300,948 | ||||||
Net change in cash and cash equivalents | 72,911 | 156,822 | ||||||
Beginning cash and cash equivalents | 387,323 | 253,736 | ||||||
Ending cash and cash equivalents | $ | 460,234 | $ | 410,558 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Interest paid | $ | 13,368 | $ | 8,292 | ||||
Income taxes paid (received) | (172 | ) | 16,745 | |||||
Transfer from loans to other real estate owned and repossessed assets | 6,667 | 18,753 | ||||||
Net transfer of loans held for sale to loans held for investment | (1,896 | ) | (3,983 | ) | ||||
Transfer from premises and equipment to other real estate owned | — | 455 | ||||||
Non-cash transactions: | ||||||||
Increase in assets and liabilities of acquisitions: | ||||||||
Securities | — | 34,022 | ||||||
FHLB stock | — | 874 | ||||||
Uncovered loans | — | 162,265 | ||||||
Premises and equipment | — | 2,077 | ||||||
Company-owned life insurance | — | 4,719 | ||||||
Other real estate owned and repossessed assets | — | 1,260 | ||||||
Core deposit intangible | — | 2,410 | ||||||
Other assets | — | 6,462 | ||||||
Deposits | — | 201,453 | ||||||
Long-term debt | — | 13,086 | ||||||
Other liabilities | — | 3,884 |
(Dollars in thousands) | |||
Consideration paid: | |||
Cash | $ | 13,395 | |
Fair value of identifiable assets acquired: | |||
Cash and cash equivalents | 14,205 | ||
Investment securities | 34,022 | ||
Federal Home Loan Bank stock | 874 | ||
Loans | 162,265 | ||
Premises and equipment | 2,077 | ||
Company-owned life insurance | 4,719 | ||
Other real estate owned and repossessed assets | 1,260 | ||
Core deposit intangible | 2,410 | ||
Other assets | 6,462 | ||
Total identifiable assets acquired | 228,294 | ||
Fair value of liabilities assumed: | |||
Deposits | 201,453 | ||
Long-term debt | 13,086 | ||
Other liabilities | 3,884 | ||
Total liabilities assumed | 218,423 | ||
Fair value of net identifiable assets acquired | 9,871 | ||
Goodwill recognized in the acquisition | $ | 3,524 |
(Dollars in thousands) | |||
Accounted for under ASC 310-30: | |||
Contractual cash flows | $ | 53,807 | |
Contractual cash flows not expected to be collected (nonaccretable difference) | 8,084 | ||
Expected cash flows | 45,723 | ||
Interest component of expected cash flows (accretable yield) | 5,268 | ||
Fair value at acquisition | $ | 40,455 | |
Excluded from ASC 310-30 accounting: | |||
Unpaid principal balance | $ | 124,538 | |
Fair value discount | (2,728 | ) | |
Fair value at acquisition | 121,810 | ||
Total fair value at acquisition | $ | 162,265 |
(Dollars in thousands) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
June 30, 2016 | ||||||||||||||||
Securities available-for-sale: | ||||||||||||||||
U.S. government sponsored agency obligations | $ | 52,072 | $ | — | $ | 52,072 | $ | — | ||||||||
Obligations of state and political subdivisions: | ||||||||||||||||
Taxable | 4,385 | — | 4,146 | 239 | ||||||||||||
Tax-exempt | 310,798 | — | 310,798 | — | ||||||||||||
Small Business Administration (“SBA”) Pools | 25,729 | — | 25,729 | — | ||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 298,861 | — | 298,861 | — | ||||||||||||
Privately issued | 90,369 | — | 90,369 | — | ||||||||||||
Privately issued commercial mortgage-backed securities | 23,852 | — | 23,852 | — | ||||||||||||
Corporate debt securities | 112,711 | — | 112,711 | — | ||||||||||||
Total securities available-for-sale | 918,777 | — | 918,538 | 239 | ||||||||||||
Loans measured at fair value: | ||||||||||||||||
Residential real estate | 23,648 | — | — | 23,648 | ||||||||||||
Loans held for sale | 38,770 | — | 38,770 | — | ||||||||||||
Loan servicing rights | 47,696 | — | — | 47,696 | ||||||||||||
Derivative assets: | ||||||||||||||||
Interest rate lock commitments | 3,482 | — | 3,482 | — | ||||||||||||
Customer-initiated derivatives | 13,310 | — | 13,310 | — | ||||||||||||
Total derivatives | 16,792 | — | 16,792 | — | ||||||||||||
Total assets at fair value | $ | 1,045,683 | $ | — | $ | 974,100 | $ | 71,583 | ||||||||
Derivative liabilities: | ||||||||||||||||
Forward contracts related to mortgage loans to be delivered for sale | 1,303 | — | 1,303 | — | ||||||||||||
Customer-initiated derivatives | 13,845 | — | 13,845 | — | ||||||||||||
Risk management derivatives | 2,578 | — | 2,578 | — | ||||||||||||
Total derivatives | 17,726 | — | 17,726 | — | ||||||||||||
Total liabilities at fair value | $ | 17,726 | $ | — | $ | 17,726 | $ | — | ||||||||
December 31, 2015 | ||||||||||||||||
Securities available-for-sale: | ||||||||||||||||
U.S. government sponsored agency obligations | $ | 60,022 | $ | — | $ | 60,022 | $ | — | ||||||||
Obligations of state and political subdivisions: | ||||||||||||||||
Taxable | 1,321 | — | 1,003 | 318 | ||||||||||||
Tax-exempt | 287,208 | — | 287,208 | — | ||||||||||||
SBA Pools | 27,925 | — | 27,925 | — | ||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 309,306 | — | 309,306 | — | ||||||||||||
Privately issued | 89,450 | — | 89,450 | — | ||||||||||||
Privately issued commercial mortgage-backed securities | 13,705 | — | 13,705 | — | ||||||||||||
Corporate debt securities | 101,833 | — | 101,833 | — | ||||||||||||
Total securities available-for-sale | 890,770 | — | 890,452 | 318 | ||||||||||||
Loans measured at fair value: | ||||||||||||||||
Residential real estate | 22,233 | — | — | 22,233 | ||||||||||||
Loans held for sale | 58,223 | — | 58,223 | — | ||||||||||||
Loan servicing rights | 58,113 | — | — | 58,113 | ||||||||||||
Derivative assets: | ||||||||||||||||
Interest rate lock commitments | 1,220 | — | 1,220 | — | ||||||||||||
Customer-initiated derivatives | 4,143 | — | 4,143 | — | ||||||||||||
Risk management derivatives | 105 | — | 105 | — | ||||||||||||
Total derivatives | 5,468 | — | 5,468 | — | ||||||||||||
Total assets at fair value | $ | 1,034,807 | $ | — | $ | 954,143 | $ | 80,664 | ||||||||
Derivative liabilities: |
Forward contracts related to mortgage loans to be delivered for sale | 38 | — | 38 | — | ||||||||||||
Customer-initiated derivatives | 4,144 | — | 4,144 | — | ||||||||||||
Risk management derivatives | 397 | — | 397 | — | ||||||||||||
Total derivatives | 4,579 | — | 4,579 | — | ||||||||||||
Total liabilities at fair value | $ | 4,579 | $ | — | $ | 4,579 | $ | — |
Three months ended June 30, 2016 | ||||||||||||
Securities available-for-sale | ||||||||||||
(Dollars in thousands) | Taxable obligations of state and political subdivisions | Loans held for investment | Loan servicing rights | |||||||||
Balance, beginning of period | $ | 318 | $ | 24,377 | $ | 51,348 | ||||||
Transfers from loans held for sale | — | 62 | — | |||||||||
Gains (losses): | ||||||||||||
Recorded in earnings (realized): | ||||||||||||
Recorded in “Interest on investments” | 1 | — | — | |||||||||
Recorded in “Net gain on sales of loans” | — | 1 | — | |||||||||
Recorded in “Mortgage banking and other loan fees” | — | (100 | ) | (6,127 | ) | |||||||
New originations | — | — | 2,475 | |||||||||
Repayments | (80 | ) | (692 | ) | — | |||||||
Balance, end of period | $ | 239 | $ | 23,648 | $ | 47,696 |
Three months ended June 30, 2015 | ||||||||||||||||
Securities available-for-sale | ||||||||||||||||
(Dollars in thousands) | Taxable obligations of state and political subdivisions | Corporate debt securities | Loans held for investment | Loan servicing rights | ||||||||||||
Balance, beginning of period | $ | 397 | $ | 430 | $ | 22,158 | $ | 54,409 | ||||||||
Transfers from loans held for sale | — | — | 764 | — | ||||||||||||
Gains (losses): | ||||||||||||||||
Recorded in earnings (realized): | ||||||||||||||||
Recorded in “Interest on investments” | 1 | 1 | — | — | ||||||||||||
Recorded in “Net gain on sales of loans” | — | — | 12 | — | ||||||||||||
Recorded in “Mortgage banking and other loan fees” | — | — | (347 | ) | 1,552 | |||||||||||
Recorded in OCI (pre-tax) | — | 17 | — | — | ||||||||||||
New originations | — | — | — | 2,933 | ||||||||||||
Repayments | (80 | ) | — | (1,680 | ) | — | ||||||||||
Balance, end of period | $ | 318 | $ | 448 | $ | 20,907 | $ | 58,894 |
Six months ended June 30, 2016 | |||||||||||||
Securities available-for-sale | |||||||||||||
(Dollars in thousands) | Taxable obligations of state and political subdivisions | Loans held for investment | Loan servicing rights | ||||||||||
Balance, beginning of period | $ | 318 | $ | 22,233 | $ | 58,113 | |||||||
Transfers from loans held for sale | — | 1,896 | — | ||||||||||
Gains (losses): | |||||||||||||
Recorded in earnings (realized): | |||||||||||||
Recorded in “Interest on investments” | 1 | — | — | ||||||||||
Recorded in “Net gain on sales of loans” | — | 83 | — | ||||||||||
Recorded in “Mortgage banking and other loan fees” | — | 423 | (14,592 | ) | |||||||||
New originations | — | — | 4,175 | ||||||||||
Repayments | (80 | ) | (987 | ) | — | ||||||||
Balance, end of period | $ | 239 | $ | 23,648 | $ | 47,696 |
Six months ended June 30, 2015 | ||||||||||||||||
Securities available-for-sale | ||||||||||||||||
(Dollars in thousands) | Taxable obligations of state and political subdivisions | Corporate debt securities | Loans held for investment | Loan servicing rights | ||||||||||||
Balance, beginning of period | $ | 397 | $ | 3,425 | $ | 19,526 | $ | 70,598 | ||||||||
Transfer between levels within fair value hierarchy | — | (3,000 | ) | — | — | |||||||||||
Transfers from loans held for sale | — | — | 3,983 | — | ||||||||||||
Gains (losses): | ||||||||||||||||
Recorded in earnings (realized): | ||||||||||||||||
Recorded in “Interest on investments” | 1 | 2 | — | — | ||||||||||||
Recorded in “Net gain on sales of loans” | — | — | 139 | — | ||||||||||||
Recorded in “Mortgage banking and other loan fees” | — | — | (239 | ) | (4,850 | ) | ||||||||||
Recorded in OCI (pre-tax) | — | 21 | — | — | ||||||||||||
New originations | — | — | — | 5,848 | ||||||||||||
Reduction from servicing rights sold | — | — | — | (12,702 | ) | |||||||||||
Repayments | (80 | ) | — | (2,502 | ) | — | ||||||||||
Balance, end of period | $ | 318 | $ | 448 | $ | 20,907 | $ | 58,894 |
(Dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||
Aggregate fair value | $ | 23,648 | $ | 22,233 | ||||
Contractual balance | 22,819 | 21,910 | ||||||
Fair value gain | 829 | 323 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Change in fair value: | ||||||||||||||||
Included in “Net gain on sales of loans” | $ | 1 | $ | 12 | $ | 83 | $ | 139 | ||||||||
Included in “Mortgage banking and other loan fees” | (100 | ) | (347 | ) | 423 | (239 | ) |
(Dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||
Aggregate fair value | $ | 38,770 | $ | 58,223 | ||||
Contractual balance | 36,796 | 55,911 | ||||||
Unrealized gain | 1,974 | 2,312 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Interest income(1) | $ | 341 | $ | 878 | $ | 670 | $ | 1,948 | ||||||||
Change in fair value(2) | 814 | 417 | (338 | ) | (1,124 | ) | ||||||||||
Total included in earnings | $ | 1,155 | $ | 1,295 | $ | 332 | $ | 824 |
(Dollars in thousands) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
June 30, 2016 | ||||||||||||||||
Impaired loans:(1) | ||||||||||||||||
Commercial real estate | $ | 2,549 | $ | — | $ | — | $ | 2,549 | ||||||||
Residential real estate | 4,009 | — | — | 4,009 | ||||||||||||
Commercial and industrial | 1,456 | — | — | 1,456 | ||||||||||||
Real estate construction | 80 | — | — | 80 | ||||||||||||
Consumer | 61 | — | — | 61 | ||||||||||||
Total impaired loans | 8,155 | — | — | 8,155 | ||||||||||||
Other real estate owned(2) | 3,652 | — | — | 3,652 | ||||||||||||
Repossessed assets(3) | 4,751 | — | — | 4,751 | ||||||||||||
Total | $ | 16,558 | $ | — | $ | — | $ | 16,558 | ||||||||
December 31, 2015 | ||||||||||||||||
Impaired loans:(1) | ||||||||||||||||
Commercial real estate | $ | 2,960 | $ | — | $ | — | $ | 2,960 | ||||||||
Residential real estate | 5,381 | — | — | 5,381 | ||||||||||||
Commercial and industrial | 11,522 | — | — | 11,522 | ||||||||||||
Real estate construction | 195 | — | — | 195 | ||||||||||||
Consumer | 18 | — | — | 18 | ||||||||||||
Total impaired loans | 20,076 | — | — | 20,076 | ||||||||||||
Other real estate owned(2) | 4,562 | — | — | 4,562 | ||||||||||||
Repossessed assets(3) | 5,038 | — | — | 5,038 | ||||||||||||
Premises and equipment(4) | 1,575 | — | — | 1,575 | ||||||||||||
Total | $ | 31,251 | $ | — | $ | — | $ | 31,251 |
(1) | Specific reserves of $1.7 million and $4.4 million were provided to reduce the fair value of these loans at June 30, 2016 and December 31, 2015, respectively, based on the estimated fair value of the underlying collateral. In addition, net charge-offs of $6 thousand and $31 thousand reduced the fair value of these loans for the three months ended June 30, 2016 and 2015, respectively and $325 thousand and $67 thousand for the six months ended June 30, 2016 and 2015, respectively. |
(2) | The Company charged $755 thousand and $585 million through other noninterest expense during the three months ended June 30, 2016 and 2015, respectively, and $2.0 million and $1.9 million during the six months ended June 30, 2016 and 2015, respectively, to reduce the fair value of these properties. There was no valuation allowance at June 30, 2016 and $325 thousand of valuation allowance was provided to reduce the fair value of these properties and December 31, 2015, based on the estimated fair value as of each respective date. |
(3) | The Company charged $296 thousand and $274 thousand through other noninterest expense during the three months ended June 30, 2016 and 2015, respectively, and $607 thousand and $468 thousand during the six months ended June 30, 2016 and 2015, respectively, to reduce the fair value of these assets. A valuation allowance of $5.1 million was provided to reduce the fair value of these repossessed assets at both June 30, 2016 and December 31, 2015, based on the estimated fair value as of each respective date. |
Estimated Fair Value | ||||||||||||||||||||
(Dollars in thousands) | Carrying Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
June 30, 2016 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 460,234 | $ | 460,234 | $ | 86,571 | $ | 373,663 | $ | — | ||||||||||
Federal Home Loan Bank stock | 29,621 | N/A | ||||||||||||||||||
Net loans(1) | 4,996,528 | 5,097,843 | — | — | 5,097,843 | |||||||||||||||
Accrued interest receivable | 16,651 | 16,651 | — | 16,651 | — | |||||||||||||||
Company-owned life insurance | 109,984 | 109,984 | — | 109,984 | — | |||||||||||||||
Securities held-to-maturity | 1,655 | 1,655 | — | — | 1,655 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Savings and demand deposits | $ | 3,483,838 | $ | 3,483,838 | $ | — | $ | 3,483,838 | $ | — | ||||||||||
Time deposits(2) | 1,783,370 | 1,785,208 | — | 1,785,208 | — | |||||||||||||||
Total deposits | 5,267,208 | 5,269,046 | — | 5,269,046 | — | |||||||||||||||
Short-term borrowings | 525,960 | 525,960 | — | 525,960 | — | |||||||||||||||
Long-term debt | 296,656 | 293,157 | — | 293,157 | — | |||||||||||||||
Accrued interest payable | 3,639 | 3,639 | — | 3,639 | — | |||||||||||||||
Deferred compensation plan liabilities | 3,442 | 3,442 | — | 3,442 | — |
(1) | Included $8.2 million of impaired loans recorded at fair value on a nonrecurring basis and $23.6 million of loans recorded at fair value on a recurring basis. |
(2) | Includes $228.4 million of other brokered funds. |
Estimated Fair Value | ||||||||||||||||||||
(Dollars in thousands) | Carrying Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
December 31, 2015 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 387,323 | $ | 387,323 | $ | 74,734 | $ | 312,589 | $ | — | ||||||||||
Federal Home Loan Bank stock | 29,621 | N/A | ||||||||||||||||||
Net loans(1) | 4,752,747 | 4,827,556 | — | — | 4,827,556 | |||||||||||||||
Accrued interest receivable | 15,646 | 15,646 | — | 15,646 | — | |||||||||||||||
Company-owned life insurance | 107,065 | 107,065 | — | 107,065 | — | |||||||||||||||
Securities held-to-maturity | 1,678 | 1,678 | — | — | 1,678 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Savings and demand deposits | $ | 3,343,478 | $ | 3,343,478 | $ | — | $ | 3,343,478 | $ | — | ||||||||||
Time deposits(2) | 1,671,103 | 1,670,058 | — | 1,670,058 | — | |||||||||||||||
Total deposits | 5,014,581 | 5,013,536 | — | 5,013,536 | — | |||||||||||||||
Short-term borrowings | 348,998 | 348,998 | — | 348,998 | — | |||||||||||||||
Long-term debt | 464,057 | 456,746 | — | 456,746 | — | |||||||||||||||
Accrued interest payable | 3,568 | 3,568 | — | 3,568 | — | |||||||||||||||
Deferred compensation plan liabilities | 1,982 | 1,982 | — | 1,982 | — |
(1) | Included $20.1 million of impaired loans recorded at fair value on a nonrecurring basis and $22.2 million of loans recorded at fair value on a recurring basis. |
(2) | Includes $61.2 million of other brokered funds. |
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
June 30, 2016 | ||||||||||||||||
Securities available-for-sale: | ||||||||||||||||
U.S. government sponsored agency obligations | $ | 51,867 | $ | 205 | $ | — | $ | 52,072 | ||||||||
Obligations of state and political subdivisions: | ||||||||||||||||
Taxable | 4,279 | 106 | — | 4,385 | ||||||||||||
Tax-exempt | 299,292 | 11,835 | (329 | ) | 310,798 | |||||||||||
SBA Pools | 25,262 | 467 | — | 25,729 | ||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 292,618 | 6,250 | (7 | ) | 298,861 | |||||||||||
Privately issued | 89,942 | 509 | (82 | ) | 90,369 | |||||||||||
Privately issued commercial mortgage-backed securities | 23,840 | 35 | (23 | ) | 23,852 | |||||||||||
Corporate debt securities | 111,558 | 1,482 | (329 | ) | 112,711 | |||||||||||
Total securities available-for-sale | $ | 898,658 | $ | 20,889 | $ | (770 | ) | $ | 918,777 |
Amortized Cost | Gross Unrecognized Gains | Gross Unrecognized Losses | Fair Value | |||||||||||||
Securities held-to-maturity | $ | 1,655 | $ | — | $ | — | $ | 1,655 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
December 31, 2015 | ||||||||||||||||
Securities available-for-sale: | ||||||||||||||||
U.S. government sponsored agency obligations | $ | 59,414 | $ | 614 | $ | (6 | ) | $ | 60,022 | |||||||
Obligations of state and political subdivisions: | ||||||||||||||||
Taxable | 1,318 | 3 | — | 1,321 | ||||||||||||
Tax-exempt | 282,366 | 5,312 | (470 | ) | 287,208 | |||||||||||
SBA Pools | 27,561 | 368 | (4 | ) | 27,925 | |||||||||||
Residential mortgage-backed securities: | ||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 308,396 | 2,014 | (1,104 | ) | 309,306 | |||||||||||
Privately issued | 90,084 | — | (634 | ) | 89,450 | |||||||||||
Privately issued commercial mortgage-backed securities | 13,826 | — | (121 | ) | 13,705 | |||||||||||
Corporate debt securities | 102,284 | 127 | (578 | ) | 101,833 | |||||||||||
Total securities available-for-sale | $ | 885,249 | $ | 8,438 | $ | (2,917 | ) | $ | 890,770 |
Amortized Cost | Gross Unrecognized Gains | Gross Unrecognized Losses | Fair Value | |||||||||||||
Securities held-to-maturity | $ | 1,678 | $ | — | $ | — | $ | 1,678 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Proceeds | $ | — | $ | 135 | $ | 14,977 | $ | 24,750 | ||||||||
Gross gains | — | 6 | 333 | 9 | ||||||||||||
Gross losses | — | — | — | (110 | ) |
June 30, 2016 | ||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | ||||||
Securities with contractual maturities: | ||||||||
Within one year | $ | 3,383 | $ | 3,392 | ||||
After one year through five years | 165,956 | 168,557 | ||||||
After five years through ten years | 186,887 | 192,193 | ||||||
After ten years | 542,432 | 554,635 | ||||||
Total securities available-for-sale | $ | 898,658 | $ | 918,777 | ||||
Securities held-to-maturity: | ||||||||
After one year through five years | 1,655 | 1,655 | ||||||
Total securities held-to-maturity | $ | 1,655 | $ | 1,655 |
Less than 12 Months | More than 12 Months | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized losses | Fair Value | Unrealized losses | Fair Value | Unrealized losses | ||||||||||||||||||
June 30, 2016 | ||||||||||||||||||||||||
Obligations of state and political subdivisions: | ||||||||||||||||||||||||
Tax-exempt | $ | 13,221 | $ | (95 | ) | $ | 17,148 | $ | (234 | ) | $ | 30,369 | $ | (329 | ) | |||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 3,520 | (7 | ) | — | — | 3,520 | (7 | ) | ||||||||||||||||
Privately issued | 11,197 | (82 | ) | — | — | 11,197 | (82 | ) | ||||||||||||||||
Privately issued commercial mortgage-backed securities | 4,418 | (16 | ) | 776 | (7 | ) | 5,194 | (23 | ) | |||||||||||||||
Corporate debt securities | 11,382 | (310 | ) | 435 | (19 | ) | 11,817 | (329 | ) | |||||||||||||||
Total securities available-for-sale | $ | 43,738 | $ | (510 | ) | $ | 18,359 | $ | (260 | ) | $ | 62,097 | $ | (770 | ) | |||||||||
December 31, 2015 | ||||||||||||||||||||||||
U.S. government sponsored agency obligations | $ | 9,994 | $ | (6 | ) | $ | — | $ | — | $ | 9,994 | $ | (6 | ) | ||||||||||
Obligations of state and political subdivisions: | ||||||||||||||||||||||||
Tax-exempt | 46,062 | (357 | ) | 6,957 | (113 | ) | 53,019 | (470 | ) | |||||||||||||||
SBA Pools | 1,521 | (4 | ) | — | — | 1,521 | (4 | ) | ||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 118,509 | (1,104 | ) | — | — | 118,509 | (1,104 | ) | ||||||||||||||||
Privately issued | 89,450 | (634 | ) | — | — | 89,450 | (634 | ) | ||||||||||||||||
Privately issued commercial mortgage-backed securities | 13,706 | (121 | ) | — | — | 13,706 | (121 | ) | ||||||||||||||||
Corporate debt securities | 74,494 | (558 | ) | 431 | (20 | ) | 74,925 | (578 | ) | |||||||||||||||
Total securities available-for-sale | $ | 353,736 | $ | (2,784 | ) | $ | 7,388 | $ | (133 | ) | $ | 361,124 | $ | (2,917 | ) |
(Dollars in thousands) | Accounted for under ASC 310-30 | Excluded from ASC 310-30 accounting | Total loans | |||||||||
June 30, 2016 | ||||||||||||
Commercial real estate | $ | 213,727 | $ | 1,448,063 | $ | 1,661,790 | ||||||
Residential real estate | 242,025 | 1,432,590 | 1,674,615 | |||||||||
Commercial and industrial | 20,809 | 1,261,832 | 1,282,641 | |||||||||
Real estate construction | 7,879 | 249,232 | 257,111 | |||||||||
Consumer | 8,279 | 163,678 | 171,957 | |||||||||
Total | $ | 492,719 | $ | 4,555,395 | $ | 5,048,114 | (1) | |||||
December 31, 2015 | ||||||||||||
Commercial real estate | $ | 250,497 | $ | 1,317,600 | $ | 1,568,097 | ||||||
Residential real estate | 273,845 | 1,273,954 | 1,547,799 | |||||||||
Commercial and industrial | 24,724 | 1,232,682 | 1,257,406 | |||||||||
Real estate construction | 10,783 | 230,820 | 241,603 | |||||||||
Consumer | 9,417 | 182,378 | 191,795 | |||||||||
Total | $ | 569,266 | $ | 4,237,434 | $ | 4,806,700 | (1) |
(1) | Includes net deferred costs totaling $5.6 million and $1.9 million at June 30, 2016 and December 31, 2015, respectively. |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Balance at beginning of period | $ | 211,467 | $ | 278,825 | $ | 223,214 | $ | 277,058 | ||||||||
Additions due to acquisitions | — | — | — | 5,268 | ||||||||||||
Discount accretion | (14,281 | ) | (19,242 | ) | (29,154 | ) | (40,206 | ) | ||||||||
Reclassifications from nonaccretable discount and other additions to accretable discount due to results of cash flow re-estimations | 9,645 | 21,642 | 25,370 | 51,073 | ||||||||||||
Other activity, net (1) | (10,023 | ) | (21,161 | ) | (22,622 | ) | (33,129 | ) | ||||||||
Balance at end of period | $ | 196,808 | $ | 260,064 | $ | 196,808 | $ | 260,064 |
(1) | Primarily includes changes in the accretable discount due to loan payoffs, foreclosures and charge-offs. |
(Dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||
Contractual cash flows | $ | 911,735 | $ | 1,019,407 | ||||
Non-accretable difference | (222,208 | ) | (226,927 | ) | ||||
Accretable yield | (196,808 | ) | (223,214 | ) | ||||
Loans accounted for under ASC 310-30 | $ | 492,719 | $ | 569,266 |
(Dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||
Nonperforming assets | ||||||||
Nonaccrual loans | ||||||||
Commercial real estate | $ | 12,525 | $ | 16,798 | ||||
Residential real estate | 15,846 | 18,390 | ||||||
Commercial and industrial | 17,282 | 21,668 | ||||||
Real estate construction | 203 | 413 | ||||||
Consumer | 98 | 206 | ||||||
Total nonaccrual loans | 45,954 | 57,475 | ||||||
Other real estate owned and repossessed assets (1) | 20,461 | 28,157 | ||||||
Total nonperforming assets | 66,415 | 85,632 | ||||||
Loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 | ||||||||
Commercial real estate | $ | 686 | $ | — | ||||
Residential real estate | 63 | 58 | ||||||
Commercial and industrial | — | 14 | ||||||
Consumer | 74 | 225 | ||||||
Total loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 | $ | 823 | $ | 297 |
(1) | Excludes closed branches and operating facilities. |
June 30, 2016 | ||||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 days past due | 60-89 days past due | 90 days or more past due | Total past due | Current | Total loans | 90 days or more past due and still accruing | |||||||||||||||||||||
Loans, excluding loans accounted for under ASC 310-30 | ||||||||||||||||||||||||||||
Commercial real estate | $ | 2,717 | $ | 704 | $ | 9,803 | $ | 13,224 | $ | 1,434,839 | $ | 1,448,063 | $ | 686 | ||||||||||||||
Residential real estate | 3,781 | 1,710 | 5,697 | 11,188 | 1,421,402 | 1,432,590 | 63 | |||||||||||||||||||||
Commercial and industrial | 1,182 | 85 | 10,852 | 12,119 | 1,249,713 | 1,261,832 | — | |||||||||||||||||||||
Real estate construction | — | — | 37 | 37 | 249,195 | 249,232 | — | |||||||||||||||||||||
Consumer | 1,128 | 317 | 103 | 1,548 | 162,130 | 163,678 | 74 | |||||||||||||||||||||
Total | $ | 8,808 | $ | 2,816 | $ | 26,492 | $ | 38,116 | $ | 4,517,279 | $ | 4,555,395 | $ | 823 |
December 31, 2015 | ||||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 days past due | 60-89 days past due | 90 days or more past due | Total past due | Current | Total loans | 90 days or more past due and still accruing | |||||||||||||||||||||
Loans, excluding loans accounted for under ASC 310-30 | ||||||||||||||||||||||||||||
Commercial real estate | $ | 2,662 | $ | 1,378 | $ | 13,520 | $ | 17,560 | $ | 1,300,040 | $ | 1,317,600 | $ | — | ||||||||||||||
Residential real estate | 10,582 | 2,539 | 7,377 | 20,498 | 1,253,456 | 1,273,954 | 58 | |||||||||||||||||||||
Commercial and industrial | 9,079 | 2,099 | 4,955 | 16,133 | 1,216,549 | 1,232,682 | 14 | |||||||||||||||||||||
Real estate construction | 2,046 | — | 304 | 2,350 | 228,470 | 230,820 | — | |||||||||||||||||||||
Consumer | 1,287 | 402 | 287 | 1,976 | 180,402 | 182,378 | 225 | |||||||||||||||||||||
Total | $ | 25,656 | $ | 6,418 | $ | 26,443 | $ | 58,517 | $ | 4,178,917 | $ | 4,237,434 | $ | 297 |
(Dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||
Nonaccrual loans | $ | 45,954 | $ | 57,475 | ||||
Performing troubled debt restructurings: | ||||||||
Commercial real estate | 19,102 | 15,340 | ||||||
Residential real estate | 8,468 | 5,749 | ||||||
Commercial and industrial | 3,319 | 3,438 | ||||||
Real estate construction | 266 | 420 | ||||||
Consumer | 318 | 242 | ||||||
Total performing troubled debt restructurings | 31,473 | 25,189 | ||||||
Total impaired loans | $ | 77,427 | $ | 82,664 |
Concession type | Financial effects of modification | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Principal deferral | Principal reduction (1) | Interest rate | Forbearance agreement | Total number of loans | Total recorded investment at June 30, 2016 | Net charge-offs (recoveries) | Provision (benefit) for loan losses | |||||||||||||||||||||||
For the three months ended June 30, 2016 | |||||||||||||||||||||||||||||||
Commercial real estate | $ | 1,178 | $ | — | $ | 1,129 | $ | 1,596 | 11 | $ | 3,903 | $ | — | $ | (12 | ) | |||||||||||||||
Residential real estate | 566 | 521 | 1,248 | 202 | 25 | 2,537 | 2 | 46 | |||||||||||||||||||||||
Commercial and industrial | 83 | — | 62 | 69 | 5 | 214 | — | 1 | |||||||||||||||||||||||
Consumer | 18 | — | — | — | 1 | 18 | — | — | |||||||||||||||||||||||
Total loans | $ | 1,845 | $ | 521 | $ | 2,439 | $ | 1,867 | 42 | $ | 6,672 | $ | 2 | $ | 35 | ||||||||||||||||
For the six months ended June 30, 2016 | |||||||||||||||||||||||||||||||
Commercial real estate | $ | 1,178 | $ | — | $ | 1,552 | $ | 1,596 | 16 | $ | 4,326 | $ | — | $ | (199 | ) | |||||||||||||||
Residential real estate | 790 | 642 | 1,902 | 254 | 39 | 3,588 | 57 | 137 | |||||||||||||||||||||||
Commercial and industrial | 2,400 | — | 166 | 475 | 14 | 3,041 | — | (140 | ) | ||||||||||||||||||||||
Consumer | 24 | — | — | — | 2 | 24 | — | — | |||||||||||||||||||||||
Total loans | $ | 4,392 | $ | 642 | $ | 3,620 | $ | 2,325 | 71 | $ | 10,979 | $ | 57 | $ | (202 | ) |
(1) | Loan forgiveness related to loans modified in TDRs for the three and six months ended June 30, 2016 totaled $608 thousand and $750 thousand, respectively. |
Concession type (1) | Financial effects of modification | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Principal deferral | Principal reduction (1) | Interest rate | Forbearance agreement | Total number of loans | Total recorded investment at June 30, 2015 | Net charge-offs (recoveries) | Provision (benefit) for loan losses | |||||||||||||||||||||||
For the three months ended June 30, 2015 | |||||||||||||||||||||||||||||||
Commercial real estate | $ | 93 | $ | — | $ | 3,746 | $ | 532 | 17 | $ | 4,371 | $ | — | $ | 2 | ||||||||||||||||
Residential real estate | 1,150 | 114 | 336 | — | 23 | 1,600 | — | 167 | |||||||||||||||||||||||
Commercial and industrial | 231 | — | 542 | 152 | 14 | 925 | 192 | 232 | |||||||||||||||||||||||
Real estate construction | 90 | — | 148 | — | 4 | 238 | 30 | 30 | |||||||||||||||||||||||
Consumer | 17 | — | — | — | 1 | 17 | — | — | |||||||||||||||||||||||
Total loans | $ | 1,581 | $ | 114 | $ | 4,772 | $ | 684 | 59 | $ | 7,151 | $ | 222 | $ | 431 | ||||||||||||||||
For the six months ended June 30, 2015 | |||||||||||||||||||||||||||||||
Commercial real estate | $ | 93 | $ | — | $ | 4,096 | $ | 1,639 | 22 | $ | 5,828 | $ | 37 | $ | 210 | ||||||||||||||||
Residential real estate | 2,098 | 114 | 972 | — | 35 | 3,184 | 6 | 269 | |||||||||||||||||||||||
Commercial and industrial | 567 | — | 1,349 | 178 | 23 | 2,094 | 192 | 372 | |||||||||||||||||||||||
Real estate construction | 90 | — | 148 | 130 | 5 | 368 | (8 | ) | (8 | ) | |||||||||||||||||||||
Consumer | 32 | — | — | — | 2 | 32 | — | — | |||||||||||||||||||||||
Total loans | $ | 2,880 | $ | 114 | $ | 6,565 | $ | 1,947 | 87 | $ | 11,506 | $ | 227 | $ | 843 |
(1) | Loan forgiveness related to loans modified in TDRs for both the three and six months ended June 30, 2015 totaled $187 thousand. |
For the three months ended June 30, 2016 | For the six months ended June 30, 2016 | |||||||||||||||||||||
(Dollars in thousands) | Total number of loans | Total recorded investment at June 30, 2016 | Charged off following a subsequent default | Total number of loans | Total recorded investment at June 30, 2016 | Charged off following a subsequent default | ||||||||||||||||
Commercial real estate | 4 | $ | 202 | $ | — | 5 | $ | 520 | $ | — | ||||||||||||
Residential real estate | 9 | 920 | 2 | 11 | 952 | 2 | ||||||||||||||||
Commercial and industrial | 2 | 219 | — | 2 | 219 | — | ||||||||||||||||
Consumer | 3 | 29 | — | 3 | 29 | 3 | ||||||||||||||||
Total loans | 18 | $ | 1,370 | $ | 2 | 21 | $ | 1,720 | $ | 5 |
For the three months ended June 30, 2015 | For the six months ended June 30, 2015 | |||||||||||||||||||||
(Dollars in thousands) | Total number of loans | Total recorded investment at June 30, 2015 | Charged off following a subsequent default | Total number of loans | Total recorded investment at June 30, 2015 | Charged off following a subsequent default | ||||||||||||||||
Commercial real estate | 12 | $ | 2,942 | $ | 144 | 12 | $ | 2,942 | $ | 218 | ||||||||||||
Residential real estate | 17 | 1,812 | — | 21 | 1,986 | 29 | ||||||||||||||||
Commercial and industrial | 4 | 125 | — | 4 | 125 | — | ||||||||||||||||
Total loans | 33 | $ | 4,879 | $ | 144 | 37 | $ | 5,053 | $ | 247 |
(Dollars in thousands) | Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
June 30, 2016 | ||||||||||||||||||||
Commercial real estate | $ | 1,523,429 | $ | 67,230 | $ | 71,131 | $ | — | $ | 1,661,790 | ||||||||||
Commercial and industrial | 1,183,709 | 47,053 | 51,879 | — | 1,282,641 | |||||||||||||||
Real estate construction | 253,944 | 367 | 2,800 | — | 257,111 | |||||||||||||||
Total | $ | 2,961,082 | $ | 114,650 | $ | 125,810 | $ | — | $ | 3,201,542 | ||||||||||
December 31, 2015 | ||||||||||||||||||||
Commercial real estate | $ | 1,408,238 | $ | 60,130 | $ | 99,343 | $ | 386 | $ | 1,568,097 | ||||||||||
Commercial and industrial | 1,177,354 | 24,129 | 55,923 | — | 1,257,406 | |||||||||||||||
Real estate construction | 235,479 | 259 | 5,865 | — | 241,603 | |||||||||||||||
Total | $ | 2,821,071 | $ | 84,518 | $ | 161,131 | $ | 386 | $ | 3,067,106 |
(Dollars in thousands) | Performing | Nonperforming | Total | |||||||||
June 30, 2016 | ||||||||||||
Residential real estate | $ | 1,658,769 | $ | 15,846 | $ | 1,674,615 | ||||||
Consumer | 171,859 | 98 | 171,957 | |||||||||
Total | $ | 1,830,628 | $ | 15,944 | $ | 1,846,572 | ||||||
December 31, 2015 | ||||||||||||
Residential real estate | $ | 1,529,409 | $ | 18,390 | $ | 1,547,799 | ||||||
Consumer | 191,589 | 206 | 191,795 | |||||||||
Total | $ | 1,720,998 | $ | 18,596 | $ | 1,739,594 |
(Dollars in thousands) | Recorded investment with no related allowance | Recorded investment with related allowance | Total recorded investment | Contractual principal balance | Related allowance | |||||||||||||||
June 30, 2016 | ||||||||||||||||||||
Loans individually evaluated for impairment | ||||||||||||||||||||
Commercial real estate | $ | 9,930 | $ | 21,697 | $ | 31,627 | $ | 48,806 | $ | 2,595 | ||||||||||
Residential real estate | 13,984 | 10,330 | 24,314 | 31,474 | 2,168 | |||||||||||||||
Commercial and industrial | 16,890 | 3,711 | 20,601 | 28,840 | 554 | |||||||||||||||
Real estate construction | 180 | 289 | 469 | 1,140 | 68 | |||||||||||||||
Consumer | 258 | 158 | 416 | 655 | 63 | |||||||||||||||
Total loans individually evaluated for impairment | $ | 41,242 | $ | 36,185 | $ | 77,427 | $ | 110,915 | $ | 5,448 | ||||||||||
December 31, 2015 | ||||||||||||||||||||
Loans individually evaluated for impairment | ||||||||||||||||||||
Commercial real estate | $ | 12,506 | $ | 19,632 | $ | 32,138 | $ | 46,099 | $ | 2,647 | ||||||||||
Residential real estate | 13,304 | 10,835 | 24,139 | 30,409 | 2,729 | |||||||||||||||
Commercial and industrial | 11,661 | 13,445 | 25,106 | 27,883 | 2,577 | |||||||||||||||
Real estate construction | 402 | 431 | 833 | 1,369 | 158 | |||||||||||||||
Consumer | 319 | 129 | 448 | 789 | 36 | |||||||||||||||
Total loans individually evaluated for impairment | $ | 38,192 | $ | 44,472 | $ | 82,664 | $ | 106,549 | $ | 8,147 |
For the three months ended June 30, 2016 | For the six months ended June 30, 2016 | |||||||||||||||
(Dollars in thousands) | Average recorded investment | Interest income recognized | Average recorded investment | Interest income recognized | ||||||||||||
Loans individually evaluated for impairment | ||||||||||||||||
Commercial real estate | $ | 33,145 | $ | 842 | $ | 34,228 | $ | 1,541 | ||||||||
Residential real estate | 24,775 | 326 | 25,220 | 663 | ||||||||||||
Commercial and industrial | 22,502 | 350 | 23,528 | 537 | ||||||||||||
Real estate construction | 474 | 9 | 552 | 18 | ||||||||||||
Consumer | 427 | 10 | 439 | 20 | ||||||||||||
Total loans individually evaluated for impairment | $ | 81,323 | $ | 1,537 | $ | 83,967 | $ | 2,779 |
For the three months ended June 30, 2015 | For the six months ended June 30, 2015 | |||||||||||||||
(Dollars in thousands) | Average recorded investment | Interest income recognized | Average recorded investment | Interest income recognized | ||||||||||||
Loans individually evaluated for impairment | ||||||||||||||||
Commercial real estate | $ | 38,208 | $ | 1,067 | $ | 38,774 | $ | 1,779 | ||||||||
Residential real estate | 28,903 | 400 | 29,080 | 674 | ||||||||||||
Commercial and industrial | 9,036 | 182 | 10,117 | 443 | ||||||||||||
Real estate construction | 1,422 | 76 | 1,474 | 104 | ||||||||||||
Consumer | 597 | 11 | 617 | 22 | ||||||||||||
Total loans individually evaluated for impairment | $ | 78,166 | $ | 1,736 | $ | 80,062 | $ | 3,022 |
(Dollars in thousands) | Commercial real estate | Residential real estate | Commercial and industrial | Real estate construction | Consumer | Total | ||||||||||||||||||
For the three months ended June 30, 2016 | ||||||||||||||||||||||||
Allowance for loan losses - loans accounted for under ASC 310-30: | ||||||||||||||||||||||||
Balance at beginning of period | $ | 8,352 | $ | 7,253 | $ | 1,078 | $ | 1,065 | $ | 101 | $ | 17,849 | ||||||||||||
Transfer to loans excluded from ASC 310-30 accounting (1) | (459 | ) | (8 | ) | (3 | ) | (98 | ) | — | (568 | ) | |||||||||||||
Provision (benefit) for loan losses | (834 | ) | 152 | 90 | (208 | ) | (44 | ) | (844 | ) | ||||||||||||||
Gross charge-offs | (655 | ) | (875 | ) | (668 | ) | (246 | ) | (5 | ) | (2,449 | ) | ||||||||||||
Recoveries | 1,117 | 393 | 463 | 116 | 15 | 2,104 | ||||||||||||||||||
Net (charge-offs) recoveries | 462 | (482 | ) | (205 | ) | (130 | ) | 10 | (345 | ) | ||||||||||||||
Ending allowance for loan losses | $ | 7,521 | $ | 6,915 | $ | 960 | $ | 629 | $ | 67 | $ | 16,092 | ||||||||||||
For the six months ended June 30, 2016 | ||||||||||||||||||||||||
Allowance for loan losses - loans accounted for under ASC 310-30: | ||||||||||||||||||||||||
Balance at beginning of period | $ | 11,030 | $ | 7,947 | $ | 1,487 | $ | 1,678 | $ | 124 | $ | 22,266 | ||||||||||||
Transfer to loans excluded from ASC 310-30 accounting (1) | (542 | ) | (66 | ) | (27 | ) | (325 | ) | — | (960 | ) | |||||||||||||
Provision (benefit) for loan losses | (2,091 | ) | (1,361 | ) | 54 | (589 | ) | (80 | ) | (4,067 | ) | |||||||||||||
Gross charge-offs | (2,419 | ) | (1,610 | ) | (1,402 | ) | (319 | ) | (11 | ) | (5,761 | ) | ||||||||||||
Recoveries | 1,543 | 2,005 | 848 | 184 | 34 | 4,614 | ||||||||||||||||||
Net (charge-offs) recoveries | (876 | ) | 395 | (554 | ) | (135 | ) | 23 | (1,147 | ) | ||||||||||||||
Ending allowance for loan losses | $ | 7,521 | $ | 6,915 | $ | 960 | $ | 629 | $ | 67 | $ | 16,092 | ||||||||||||
For the three months ended June 30, 2015 | ||||||||||||||||||||||||
Allowance for loan losses - loans accounted for under ASC 310-30: | ||||||||||||||||||||||||
Balance at beginning of period | $ | 14,281 | $ | 9,260 | $ | 3,119 | $ | 2,232 | $ | 168 | $ | 29,060 | ||||||||||||
Transfer to loans excluded from ASC 310-30 accounting (1) | (295 | ) | (68 | ) | (215 | ) | — | — | (578 | ) | ||||||||||||||
Provision (benefit) for loan losses | (1,924 | ) | (660 | ) | (2,296 | ) | 80 | (54 | ) | (4,854 | ) | |||||||||||||
Gross charge-offs | (3,241 | ) | (593 | ) | (723 | ) | (695 | ) | (19 | ) | (5,271 | ) | ||||||||||||
Recoveries | 3,937 | 660 | 2,616 | 134 | 50 | 7,397 | ||||||||||||||||||
Net (charge-offs) recoveries | 696 | 67 | 1,893 | (561 | ) | 31 | 2,126 | |||||||||||||||||
Ending allowance for loan losses | $ | 12,758 | $ | 8,599 | $ | 2,501 | $ | 1,751 | $ | 145 | $ | 25,754 | ||||||||||||
For the six months ended June 30, 2015 | ||||||||||||||||||||||||
Allowance for loan losses - loans accounted for under ASC 310-30: | ||||||||||||||||||||||||
Balance at beginning of period | $ | 17,558 | $ | 9,674 | $ | 3,264 | $ | 2,030 | $ | 206 | $ | 32,732 | ||||||||||||
Transfer to loans excluded from ASC 310-30 accounting (1) | (325 | ) | (116 | ) | (215 | ) | — | — | (656 | ) | ||||||||||||||
Provision (benefit) for loan losses | (4,471 | ) | 290 | (2,128 | ) | 311 | 64 | (5,934 | ) | |||||||||||||||
Gross charge-offs | (7,512 | ) | (2,157 | ) | (1,401 | ) | (1,226 | ) | (214 | ) | (12,510 | ) | ||||||||||||
Recoveries | 7,508 | 908 | 2,981 | 636 | 89 | 12,122 | ||||||||||||||||||
Net (charge-offs) recoveries | (4 | ) | (1,249 | ) | 1,580 | (590 | ) | (125 | ) | (388 | ) | |||||||||||||
Ending allowance for loan losses | $ | 12,758 | $ | 8,599 | $ | 2,501 | $ | 1,751 | $ | 145 | $ | 25,754 |
(Dollars in thousands) | Commercial real estate | Residential real estate | Commercial and industrial | Real estate construction | Consumer | Total | ||||||||||||||||||
For the three months ended June 30, 2016 | ||||||||||||||||||||||||
Allowance for loan losses - loans excluded from ASC 310-30 accounting: | ||||||||||||||||||||||||
Balance at beginning of period | $ | 9,552 | $ | 6,289 | $ | 16,502 | $ | 1,210 | $ | 976 | $ | 34,529 | ||||||||||||
Transfer in (1) | 459 | 8 | 3 | 98 | — | 568 | ||||||||||||||||||
Provision (benefit) for loan losses | 2,305 | 2,702 | (2,871 | ) | 418 | 1,498 | 4,052 | |||||||||||||||||
Gross charge-offs | (1,738 | ) | (759 | ) | (2,399 | ) | (171 | ) | (380 | ) | (5,447 | ) | ||||||||||||
Recoveries | 680 | 781 | 245 | 30 | 56 | 1,792 | ||||||||||||||||||
Net (charge-offs) recoveries | (1,058 | ) | 22 | (2,154 | ) | (141 | ) | (324 | ) | (3,655 | ) | |||||||||||||
Ending allowance for loan losses | $ | 11,258 | $ | 9,021 | $ | 11,480 | $ | 1,585 | $ | 2,150 | $ | 35,494 | ||||||||||||
For the six months ended June 30, 2016 | ||||||||||||||||||||||||
Allowance for loan losses - loans excluded from ASC 310-30 accounting: | ||||||||||||||||||||||||
Balance at beginning of period | $ | 8,388 | $ | 6,485 | $ | 14,831 | $ | 1,021 | $ | 962 | $ | 31,687 | ||||||||||||
Transfer in (1) | 542 | 66 | 27 | 325 | — | 960 | ||||||||||||||||||
Provision (benefit) for loan losses | 2,832 | 2,371 | (1,198 | ) | 208 | 1,951 | 6,164 | |||||||||||||||||
Gross charge-offs | (2,148 | ) | (1,314 | ) | (2,643 | ) | (198 | ) | (884 | ) | (7,187 | ) | ||||||||||||
Recoveries | 1,644 | 1,413 | 463 | 229 | 121 | 3,870 | ||||||||||||||||||
Net (charge-offs) recoveries | (504 | ) | 99 | (2,180 | ) | 31 | (763 | ) | (3,317 | ) | ||||||||||||||
Ending allowance for loan losses | $ | 11,258 | $ | 9,021 | $ | 11,480 | $ | 1,585 | $ | 2,150 | $ | 35,494 | ||||||||||||
For the three months ended June 30, 2015 | ||||||||||||||||||||||||
Allowance for loan losses - loans excluded from ASC 310-30 accounting: | ||||||||||||||||||||||||
Balance at beginning of period | $ | 6,784 | $ | 5,777 | $ | 9,168 | $ | 528 | $ | 1,148 | $ | 23,405 | ||||||||||||
Transfer in (1) | 295 | 68 | 215 | — | — | 578 | ||||||||||||||||||
Provision (benefit) for loan losses | (4,192 | ) | 782 | 894 | 34 | 23 | (2,459 | ) | ||||||||||||||||
Gross charge-offs | (462 | ) | (642 | ) | (1,287 | ) | (31 | ) | (244 | ) | (2,666 | ) | ||||||||||||
Recoveries | 6,165 | 600 | 1,347 | 120 | 62 | 8,294 | ||||||||||||||||||
Net (charge-offs) recoveries | 5,703 | (42 | ) | 60 | 89 | (182 | ) | 5,628 | ||||||||||||||||
Ending allowance for loan losses | $ | 8,590 | $ | 6,585 | $ | 10,337 | $ | 651 | $ | 989 | $ | 27,152 | ||||||||||||
For the six months ended June 30, 2015 | ||||||||||||||||||||||||
Allowance for loan losses - loans excluded from ASC 310-30 accounting: | ||||||||||||||||||||||||
Balance at beginning of period | $ | 7,234 | $ | 6,498 | $ | 7,149 | $ | 655 | $ | 904 | $ | 22,440 | ||||||||||||
Transfer in (1) | 325 | 116 | 215 | — | — | 656 | ||||||||||||||||||
Provision (benefit) for loan losses | (4,187 | ) | 523 | 3,937 | (113 | ) | 454 | 614 | ||||||||||||||||
Gross charge-offs | (1,620 | ) | (1,539 | ) | (2,693 | ) | (43 | ) | (530 | ) | (6,425 | ) | ||||||||||||
Recoveries | 6,838 | 987 | 1,729 | 152 | 161 | 9,867 | ||||||||||||||||||
Net (charge-offs) recoveries | 5,218 | (552 | ) | (964 | ) | 109 | (369 | ) | 3,442 | |||||||||||||||
Ending allowance for loan losses | $ | 8,590 | $ | 6,585 | $ | 10,337 | $ | 651 | $ | 989 | $ | 27,152 |
(Dollars in thousands) | Commercial real estate | Residential real estate | Commercial and industrial | Real estate construction | Consumer | Total | ||||||||||||||||||
As of June 30, 2016 | ||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,595 | $ | 2,168 | $ | 554 | $ | 68 | $ | 63 | $ | 5,448 | ||||||||||||
Collectively evaluated for impairment | 8,663 | 6,853 | 10,926 | 1,517 | 2,087 | 30,046 | ||||||||||||||||||
Accounted for under ASC 310-30 | 7,521 | 6,915 | 960 | 629 | 67 | 16,092 | ||||||||||||||||||
Total allowance for loan losses | $ | 18,779 | $ | 15,936 | $ | 12,440 | $ | 2,214 | $ | 2,217 | $ | 51,586 | ||||||||||||
Balance of loans: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 31,627 | $ | 24,314 | $ | 20,601 | $ | 469 | $ | 416 | $ | 77,427 | ||||||||||||
Collectively evaluated for impairment | 1,416,436 | 1,408,276 | 1,241,231 | 248,763 | 163,262 | 4,477,968 | ||||||||||||||||||
Accounted for under ASC 310-30 | 213,727 | 242,025 | 20,809 | 7,879 | 8,279 | 492,719 | ||||||||||||||||||
Total loans | $ | 1,661,790 | $ | 1,674,615 | $ | 1,282,641 | $ | 257,111 | $ | 171,957 | $ | 5,048,114 | ||||||||||||
As of December 31, 2015 | ||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,647 | $ | 2,729 | $ | 2,577 | $ | 158 | $ | 36 | $ | 8,147 | ||||||||||||
Collectively evaluated for impairment | 5,741 | 3,756 | 12,254 | 863 | 926 | 23,540 | ||||||||||||||||||
Accounted for under ASC 310-30 | 11,030 | 7,947 | 1,487 | 1,678 | 124 | 22,266 | ||||||||||||||||||
Total allowance for loan losses | $ | 19,418 | $ | 14,432 | $ | 16,318 | $ | 2,699 | $ | 1,086 | $ | 53,953 | ||||||||||||
Balance of loans: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 32,138 | $ | 24,139 | $ | 25,106 | $ | 833 | $ | 448 | $ | 82,664 | ||||||||||||
Collectively evaluated for impairment | 1,285,462 | 1,249,815 | 1,207,576 | 229,987 | 181,930 | 4,154,770 | ||||||||||||||||||
Accounted for under ASC 310-30 | 250,497 | 273,845 | 24,724 | 10,783 | 9,417 | 569,266 | ||||||||||||||||||
Total loans | $ | 1,568,097 | $ | 1,547,799 | $ | 1,257,406 | $ | 241,603 | $ | 191,795 | $ | 4,806,700 |
(Dollars in thousands) | Other real estate owned | Repossessed assets | ||||||
Balance at January 1, 2016 | $ | 22,930 | $ | 5,329 | ||||
Transfers in (1) | 5,148 | 1,519 | ||||||
Capitalized expenditures | — | 229 | ||||||
Payments received | — | (701 | ) | |||||
Disposals | (10,774 | ) | (871 | ) | ||||
Write-downs | (1,964 | ) | (607 | ) | ||||
Change in valuation allowance | 325 | — | ||||||
Balance at June 30, 2016 | $ | 15,665 | $ | 4,898 | ||||
Balance at January 1, 2015 | $ | 38,908 | $ | 9,835 | ||||
Additions due to acquisitions | 1,260 | — | ||||||
Additions due to the adoption of ASU 2014-04 (2) | 540 | — | ||||||
Transfers in (1) | 17,821 | 847 | ||||||
Capitalized expenditures | — | 2,681 | ||||||
Payments received | — | (2,854 | ) | |||||
Disposals | (17,330 | ) | (318 | ) | ||||
Write-downs | (1,947 | ) | (468 | ) | ||||
Change in valuation allowance | — | (2,602 | ) | |||||
Balance at June 30, 2015 | $ | 39,252 | $ | 7,121 |
(1) | Includes loans transferred to other real estate owned and other repossessed assets and transfers to other real estate owned due to branch or building operation closings/consolidations. |
(2) | The Company adopted the provisions of FASB ASU No. 2014-04, “Reclassification of Residential Real Estate Collaterized Consumer Mortgage Loans Upon Foreclosure” (“ASU 2014-04”) utilizing the prospective transition method. |
Valuation allowance | ||||||||
(Dollars in thousands) | Other real estate owned | Repossessed assets | ||||||
For the three months ended June 30, 2016 | ||||||||
Beginning balance | $ | — | $ | 5,104 | ||||
Write-downs | — | — | ||||||
Ending Balance | $ | — | $ | 5,104 | ||||
For the six months ended June 30, 2016 | ||||||||
Beginning balance | $ | 325 | $ | 5,104 | ||||
Write-downs | (325 | ) | — | |||||
Ending Balance | $ | — | $ | 5,104 | ||||
For the three months ended June 30, 2015 | ||||||||
Beginning balance | $ | — | $ | 2,819 | ||||
Provision for valuation allowance | — | 243 | ||||||
Ending Balance | $ | — | $ | 3,062 | ||||
For the six months ended June 30, 2015 | ||||||||
Beginning balance | $ | — | $ | 460 | ||||
Provision for valuation allowance | — | 2,602 | ||||||
Ending Balance | $ | — | $ | 3,062 |
(Dollars in thousands) | Other real estate owned | Repossessed assets | ||||||
For the three months ended June 30, 2016 | ||||||||
Net gain (loss) on sale | $ | 1,132 | $ | (89 | ) | |||
Write-downs | (755 | ) | (296 | ) | ||||
Net operating expenses | (276 | ) | (72 | ) | ||||
Total | $ | 101 | $ | (457 | ) | |||
For the six months ended June 30, 2016 | ||||||||
Net gain (loss) on sale | $ | 2,687 | $ | (153 | ) | |||
Write-downs | (1,964 | ) | (607 | ) | ||||
Relief of valuation allowance | 325 | — | ||||||
Net operating expenses | (652 | ) | (156 | ) | ||||
Total | $ | 396 | $ | (916 | ) | |||
For the three months ended June 30, 2015 | ||||||||
Net gain (loss) on sale | $ | 1,405 | $ | (26 | ) | |||
Write-downs | (585 | ) | (274 | ) | ||||
Provision for valuation allowance | — | (243 | ) | |||||
Net operating expenses | (713 | ) | (38 | ) | ||||
Total | $ | 107 | $ | (581 | ) | |||
For the six months ended June 30, 2015 | ||||||||
Net gain (loss) on sale | $ | 2,820 | $ | (40 | ) | |||
Write-downs | (1,947 | ) | (468 | ) | ||||
Provision for valuation allowance | — | (2,602 | ) | |||||
Net operating expenses | $ | (1,008 | ) | $ | (63 | ) | ||
Total | $ | (135 | ) | $ | (3,173 | ) |
(Dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||
Gross carrying amount | $ | 23,068 | $ | 23,068 | ||||
Accumulated amortization | (11,475 | ) | (10,260 | ) | ||||
Net carrying amount | $ | 11,593 | $ | 12,808 |
(Dollars in thousands) | Commercial Real Estate | Mortgage | Total | |||||||||
For the three months ended June 30, 2016 | ||||||||||||
Fair value, beginning of period | $ | 431 | $ | 50,917 | $ | 51,348 | ||||||
Additions from loans sold with servicing retained | 4 | 2,471 | 2,475 | |||||||||
Changes in fair value due to: | ||||||||||||
Reductions from loans paid off during the period | (11 | ) | (2,617 | ) | (2,628 | ) | ||||||
Changes due to valuation inputs or assumptions(1) | (30 | ) | (3,469 | ) | (3,499 | ) | ||||||
Fair value, end of period | $ | 394 | $ | 47,302 | $ | 47,696 | ||||||
For the six months June 30, 2016 | ||||||||||||
Fair value, beginning of period | $ | 475 | $ | 57,638 | $ | 58,113 | ||||||
Additions from loans sold with servicing retained | 4 | 4,171 | 4,175 | |||||||||
Changes in fair value due to: | ||||||||||||
Reductions from loans paid off during the period | (25 | ) | (4,443 | ) | (4,468 | ) | ||||||
Changes due to valuation inputs or assumptions (1) | (60 | ) | (10,064 | ) | (10,124 | ) | ||||||
Fair value, end of period | $ | 394 | $ | 47,302 | $ | 47,696 | ||||||
Principal balance of loans serviced | $ | 93,162 | $ | 5,636,916 | $ | 5,730,078 | ||||||
For the three months ended June 30, 2015 | ||||||||||||
Fair value, beginning of period | $ | 621 | $ | 53,788 | $ | 54,409 | ||||||
Additions from loans sold with servicing retained | — | 2,933 | 2,933 | |||||||||
Changes in fair value due to: | ||||||||||||
Reductions from loans paid off during the period | (24 | ) | (1,570 | ) | (1,594 | ) | ||||||
Changes due to valuation inputs or assumptions(1) | (17 | ) | 3,163 | 3,146 | ||||||||
Fair value, end of period | $ | 580 | $ | 58,314 | $ | 58,894 | ||||||
For the six months ended June 30, 2015 | ||||||||||||
Fair value, beginning of period | $ | 691 | $ | 69,907 | $ | 70,598 | ||||||
Additions from loans sold with servicing retained | — | 5,848 | 5,848 | |||||||||
Reduction from loans sold and servicing rights sold(2) | (12,702 | ) | (12,702 | ) | ||||||||
Changes in fair value due to: | ||||||||||||
Reductions from loans paid off during the period | (53 | ) | (3,859 | ) | (3,912 | ) | ||||||
Changes due to valuation inputs or assumptions (1) | (58 | ) | (880 | ) | (938 | ) | ||||||
Fair value, end of period | $ | 580 | $ | 58,314 | $ | 58,894 | ||||||
Principal balance of loans serviced | $ | 187,948 | $ | 5,835,932 | $ | 6,023,880 |
(1) | Represents estimated fair value changes primarily due to prepayment speeds and market-driven changes in interest rates. |
(2) | $12.7 million of servicing rights were sold during the six months ended June 30, 2015 in connection with the sale of $1.2 billion of principal balance of loans serviced. |
Commercial Real Estate | Mortgage | |||||||
As of June 30, 2016 | ||||||||
Prepayment speed | 0.00 - 50.00% | 0.00-40.30% | ||||||
Weighted average (“WA”) discount rate | 18.48 | % | 9.13 | % | ||||
WA cost to service/per year | $ | 477 | $ | 61 | ||||
WA ancillary income/per year | N/A | 36 | ||||||
WA float range | 0.56 | % | 0.56-1.01% | |||||
As of December 31, 2015 | ||||||||
Prepayment speed | 0.00 - 50.00% | 0.00 - 34.56% | ||||||
WA discount rate | 19.18 | % | 9.13 | % | ||||
WA cost to service/per year | $ | 472 | $ | 61 | ||||
WA ancillary income/per year | N/A | 36 | ||||||
WA float range | 0.56 | % | 0.56 - 1.68% |
June 30, 2016 | December 31, 2015 | |||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||
(Dollars in thousands) | Notional Amount (1) | Gross Derivative Assets (2) | Gross Derivative Liabilities (2) | Notional Amount (1) | Gross Derivative Assets (2) | Gross Derivative Liabilities (2) | ||||||||||||||||||
Risk management purposes: | ||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||
Interest rate swaps | $ | 37,000 | $ | — | $ | 2,578 | $ | 37,000 | $ | 105 | $ | 397 | ||||||||||||
Total risk management purposes | 37,000 | — | 2,578 | 37,000 | 105 | 397 | ||||||||||||||||||
Customer-initiated and mortgage banking activities: | ||||||||||||||||||||||||
Forward contracts related to mortgage loans to be delivered for sale | 135,027 | — | 1,303 | 105,711 | — | 38 | ||||||||||||||||||
Interest rate lock commitments | 121,893 | 3,482 | — | 62,081 | 1,220 | — | ||||||||||||||||||
Customer-initiated derivatives | 492,834 | 13,310 | 13,845 | 354,699 | 4,143 | 4,144 | ||||||||||||||||||
Total customer-initiated and mortgage banking activities | 749,754 | 16,792 | 15,148 | 522,491 | 5,363 | 4,182 | ||||||||||||||||||
Total gross derivatives | $ | 786,754 | $ | 16,792 | $ | 17,726 | $ | 559,491 | $ | 5,468 | $ | 4,579 |
(1) | Notional or contract amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the Consolidated Balance Sheets. |
(2) | Derivative assets are included within “Other assets” and derivative liabilities are included within “Other liabilities” on the Consolidated Balance Sheets. Included in the fair value of the derivative assets are credit valuation adjustments for counterparty credit risk totaling $758 thousand at June 30, 2016 and $208 thousand at December 31, 2015. |
For the three months ended June 30, | For the the six months ended June 30, | |||||||||||||||||
(Dollars in thousands) | Location of Gain (Loss) | 2016 | 2015 | 2016 | 2015 | |||||||||||||
Forward contracts related to mortgage loans to be delivered for sale | Net gain on sale of loans | $ | (693 | ) | $ | 1,473 | $ | (1,265 | ) | $ | 1,666 | |||||||
Interest rate lock commitments | Net gain on sale of loans | 574 | (1,620 | ) | 2,262 | 542 | ||||||||||||
Customer-initiated derivatives | Other noninterest income | (298 | ) | (122 | ) | (534 | ) | (38 | ) | |||||||||
Total gain (loss) recognized in income | $ | (417 | ) | $ | (269 | ) | $ | 463 | $ | 2,170 |
(Dollars in thousands) | Amount of gain (loss) recognized in other comprehensive income (Effective portion) | Amount of gain (loss) reclassified from other comprehensive income to interest income or expense (Effective portion) | Amount of gain (loss) recognized in other non interest income (Ineffective portion) | |||||||||
For the three months ended June 30, 2016 | ||||||||||||
Interest rate swaps designated as cash flow hedges | $ | (900 | ) | $ | (147 | ) | $ | — | ||||
For the three months ended June 30, 2015 | ||||||||||||
Interest rate swaps designated as cash flow hedges | $ | 558 | $ | (104 | ) | $ | — | |||||
For the six months ended June 30, 2016 | ||||||||||||
Interest rate swaps designated as cash flow hedges | $ | (2,581 | ) | $ | (295 | ) | $ | — | ||||
For the six months ended June 30, 2015 | ||||||||||||
Interest rate swaps designated as cash flow hedges | $ | 233 | $ | (192 | ) | $ | — |
Gross amounts not offset in the statement of financial position | ||||||||||||||||||||||||
(Dollars in thousands) | Gross amounts recognized | Gross amounts offset in the statement of financial condition | Net amounts presented in the statement of financial position | Financial instruments | Collateral (received)/posted | Net Amount | ||||||||||||||||||
June 30, 2016 | ||||||||||||||||||||||||
Offsetting derivative assets | ||||||||||||||||||||||||
Derivative assets | $ | 13,310 | $ | — | $ | 13,310 | $ | (13,310 | ) | $ | 13,467 | $ | 13,467 | |||||||||||
Offsetting derivative liabilities | ||||||||||||||||||||||||
Derivative liabilities | 16,423 | — | 16,423 | (13,310 | ) | 3,113 | — | |||||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||
Offsetting derivative assets | ||||||||||||||||||||||||
Derivative assets | $ | 4,248 | $ | — | $ | 4,248 | $ | (4,248 | ) | $ | 5,887 | $ | 5,887 | |||||||||||
Offsetting derivative liabilities | ||||||||||||||||||||||||
Derivative liabilities | 4,541 | — | 4,541 | (4,248 | ) | 293 | — |
June 30, 2016 | December 31, 2015 | |||||||||||||||||||||||
(Dollars in thousands) | Fixed Rate | Variable Rate | Total | Fixed Rate | Variable Rate | Total | ||||||||||||||||||
Commitments to extend credit | $ | 595,921 | $ | 750,086 | $ | 1,346,007 | $ | 658,268 | $ | 489,102 | $ | 1,147,370 | ||||||||||||
Standby letters of credit | 61,423 | 3,969 | 65,392 | 61,300 | 4,801 | 66,101 | ||||||||||||||||||
Total commitments | $ | 657,344 | $ | 754,055 | $ | 1,411,399 | $ | 719,568 | $ | 493,903 | $ | 1,213,471 |
June 30, 2016 | December 31, 2015 | |||||||||||||
(Dollars in thousands) | Amount | Weighted Average Rate (1) | Amount | Weighted Average Rate (1) | ||||||||||
Short-term borrowings: | ||||||||||||||
FHLB advances: 0.47% - 0.81% fixed-rate notes | $ | 425,000 | 0.53 | % | $ | 300,000 | 0.58 | % | ||||||
FHLB advances: 0.21% variable-rate notes | 50,000 | 0.21 | — | — | ||||||||||
Securities sold under agreements to repurchase: 0.10% variable-rate notes | 13,460 | 0.10 | 18,998 | 0.10 | ||||||||||
Holding company line of credit: floating-rate based on one-month LIBOR plus 1.75% | 37,500 | 2.21 | 30,000 | 2.18 | ||||||||||
Total short-term borrowings | 525,960 | 0.61 | 348,998 | 0.69 | ||||||||||
Long-term debt: | ||||||||||||||
FHLB advances: 0.59% - 7.44% fixed-rate notes due 2016 to 2027 (2) | 227,190 | 1.65 | 393,851 | 1.34 | ||||||||||
Securities sold under agreements to repurchase: 4.11% - 4.30% fixed-rate notes due 2016 to 2037 (3) | 53,975 | 4.19 | 54,800 | 4.19 | ||||||||||
Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 1.45% - 2.85% due 2034 to 2035 (4) | 10,938 | 2.88 | 10,865 | 2.65 | ||||||||||
Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 3.25% due in 2032 (5) | 4,553 | 3.88 | 4,541 | 3.58 | ||||||||||
Total long-term debt | 296,656 | 2.19 | 464,057 | 1.73 | ||||||||||
Total short-term borrowings and long-term debt | $ | 822,616 | 1.18 | % | $ | 813,055 | 1.28 | % |
(1) | Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. |
(2) | The June 30, 2016 balance includes advances payable of $223.9 million and purchase accounting premiums of $3.3 million. The December 31, 2015 balance includes advances payable of $389.6 million and purchase accounting premiums of $4.3 million. |
(3) | The June 30, 2016 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $4.0 million. The December 31, 2015 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $4.8 million. |
(4) | The June 30, 2016 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.1 million. The December 31, 2015 balance includes subordinated notes related to trust preferred securities of $15.0 million and purchase accounting discounts of $4.1 million. |
(5) | The June 30, 2016 balance includes subordinated notes related to trust preferred securities of $5.0 million and purchase accounting discounts of $447 thousand. The December 31, 2015 balance includes subordinated notes related to trust preferred securities of $5.0 million and purchase accounting discounts of $459 thousand. |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
FHLB advances: | ||||||||||||||||
Average daily balance | $ | 366,483 | $ | 33,517 | $ | 331,181 | $ | 26,022 | ||||||||
Average interest rate during the period | 0.53 | % | 0.27 | % | 0.59 | % | 0.27 | % | ||||||||
Maximum month-end balance | $ | 475,000 | $ | 200,000 | $ | 475,000 | $ | 200,000 | ||||||||
Securities sold under agreement to repurchase: | ||||||||||||||||
Average daily balance | $ | 19,166 | $ | 19,390 | $ | 19,526 | $ | 19,911 | ||||||||
Average interest rate during the period | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | ||||||||
Maximum month-end balance | $ | 21,661 | $ | 23,945 | $ | 21,980 | $ | 23,945 | ||||||||
Federal funds purchased: | ||||||||||||||||
Average daily balance | $ | — | $ | — | $ | — | $ | 696 | ||||||||
Average interest rate during the period | N/A | N/A | N/A | 0.31 | % | |||||||||||
Maximum month-end balance | $ | — | $ | — | $ | — | $ | 126,000 | ||||||||
Holding company line of credit: | ||||||||||||||||
Average daily balance | $ | 37,500 | $ | 22,912 | $ | 33,832 | $ | 16,271 | ||||||||
Average interest rate during the period | 2.19 | % | 3.18 | % | 2.19 | % | 3.18 | % | ||||||||
Maximum month-end balance | $ | 37,500 | $ | 30,000 | $ | 37,500 | $ | 30,000 |
June 30, 2016 | |||||||||||||||||||
Remaining Contractual Maturities of the Agreements | |||||||||||||||||||
(Dollars in thousands) | Overnight and continuous | Up to 30 Days | 30-90 Days | Greater than 90 Days | Total | ||||||||||||||
Securities sold under agreements to repurchase | $ | 13,460 | $ | — | $ | 10,000 | $ | 40,000 | $ | 63,460 | |||||||||
Total borrowings | $ | 13,460 | $ | — | $ | 10,000 | $ | 40,000 | $ | 63,460 | |||||||||
Amounts related to securities sold under agreements to repurchase not included in offsetting disclosure in Footnote 10 | $ | 63,460 |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||
(Dollars in thousands) | Amount | Rate | Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||||||
Tax based on federal statutory rate | $ | 8,924 | 35.0 | % | $ | 9,004 | 35.0 | % | $ | 16,821 | 35.0 | % | $ | 13,860 | 35.0 | % | |||||||||||
Effect of: | |||||||||||||||||||||||||||
Tax exempt income | (787 | ) | (3.1 | ) | (644 | ) | (2.6 | ) | (1,549 | ) | (3.2 | ) | (1,275 | ) | (3.2 | ) | |||||||||||
State taxes, net of federal benefit | 204 | 0.8 | 194 | 0.8 | 384 | 0.8 | 460 | 1.2 | |||||||||||||||||||
Change in valuation allowance | (225 | ) | (0.9 | ) | — | — | (495 | ) | (1.0 | ) | — | — | |||||||||||||||
Tax settlement with the Internal Revenue Service | — | — | — | — | (4,306 | ) | (9.0 | ) | — | — | |||||||||||||||||
Excess tax benefits (1) | (2,612 | ) | (10.2 | ) | — | — | (4,084 | ) | (8.5 | ) | — | — | |||||||||||||||
Transaction costs | 209 | 0.8 | 18 | 0.1 | 475 | 1.0 | 47 | 0.1 | |||||||||||||||||||
Other, net | (369 | ) | (1.4 | ) | (393 | ) | (1.5 | ) | (494 | ) | (1.1 | ) | (472 | ) | (1.2 | ) | |||||||||||
Income tax expense | $ | 5,344 | 21.0 | % | $ | 8,179 | 31.8 | % | $ | 6,752 | 14.0 | % | $ | 12,620 | 31.9 | % |
Weighted average | |||||||||||||
Number of shares (in thousands) | Exercise price per share | Remaining contractual life (in years) | Aggregate intrinsic value (in thousands) | ||||||||||
Outstanding at January 1, 2016 | 7,235 | $ | 6.97 | ||||||||||
Exercised (1) | (1,271 | ) | 6.98 | ||||||||||
Outstanding at June 30, 2016 | 5,964 | 6.97 | 5.20 | $ | 72,763 | ||||||||
Options fully vested | 5,964 | 6.97 | 5.20 | 72,763 | |||||||||
Exercisable at June 30, 2016 | 5,964 | 6.97 | 5.20 | 72,763 |
(1) | Options exercised during the six months ended June 30, 2016 had a weighted average fair value of $18.13, at respective exercise dates. |
Nonvested restricted stock awards | Shares (in thousands) | Weighted-average grant-date fair value | |||||
Nonvested at January 1, 2016 | 726 | $ | 14.82 | ||||
Granted | 326 | 16.65 | |||||
Vested | (17 | ) | 16.56 | ||||
Forfeited | (23 | ) | 15.37 | ||||
Nonvested at June 30, 2016 | 1,012 | $ | 15.36 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Restricted stock expense related to employees (1) | $ | 792 | $ | 441 | $ | 1,419 | $ | 739 | ||||||||
Restricted stock expense related to directors (2) | 53 | 74 | 124 | 127 | ||||||||||||
Total restricted stock expense | $ | 845 | $ | 515 | $ | 1,543 | $ | 866 |
Actual | For Capital Adequacy Purposes | For Capital Adequacy Purposes Plus Capital Conservation Buffer | To Be Well Capitalized Under Prompt Corrective Action Provisions | |||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
June 30, 2016 | ||||||||||||||||||||||||||||
Total capital to risk-weighted assets | ||||||||||||||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | $ | 753,175 | 13.3 | % | $ | 453,001 | 8.0 | % | $ | 488,392 | 8.6 | % | N/A | N/A | ||||||||||||||
Talmer Bank and Trust | 783,093 | 13.9 | 452,253 | 8.0 | 487,585 | 8.6 | $ | 565,316 | 10.0 | % | ||||||||||||||||||
Common equity tier 1 capital | ||||||||||||||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | 699,266 | 12.4 | 254,813 | 4.5 | 290,204 | 5.1 | N/A | N/A | ||||||||||||||||||||
Talmer Bank and Trust | 729,184 | 12.9 | 254,392 | 4.5 | 289,724 | 5.1 | 367,455 | 6.5 | ||||||||||||||||||||
Tier 1 capital to risk-weighted assets | ||||||||||||||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | 699,266 | 12.4 | 339,751 | 6.0 | 375,142 | 6.6 | N/A | N/A | ||||||||||||||||||||
Talmer Bank and Trust | 729,184 | 12.9 | 339,189 | 6.0 | 374,522 | 6.6 | 452,253 | 8.0 | ||||||||||||||||||||
Tier 1 leverage ratio | ||||||||||||||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | 699,266 | 10.6 | 265,150 | 4.0 | 265,150 | 4.0 | N/A | N/A | ||||||||||||||||||||
Talmer Bank and Trust | 729,184 | 10.9 | 267,869 | 4.0 | 267,869 | 4.0 | 334,837 | 5.0 | ||||||||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||||||
Total capital to risk-weighted assets | ||||||||||||||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | $ | 718,666 | 13.0 | % | $ | 442,170 | 8.0 | % | N/A | N/A | N/A | N/A | ||||||||||||||||
Talmer Bank and Trust | 740,338 | 13.5 | 439,255 | 8.0 | N/A | N/A | $ | 549,068 | 10.0 | % | ||||||||||||||||||
Common equity tier 1 capital | ||||||||||||||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | 662,668 | 12.0 | 248,721 | 4.5 | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Talmer Bank and Trust | 684,340 | 12.5 | 247,081 | 4.5 | N/A | N/A | 356,894 | 6.5 | ||||||||||||||||||||
Tier 1 capital to risk-weighted assets | ||||||||||||||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | 662,668 | 12.0 | 331,628 | 6.0 | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Talmer Bank and Trust | 684,340 | 12.5 | 329,441 | 6.0 | N/A | N/A | 439,255 | 8.0 | ||||||||||||||||||||
Tier 1 leverage ratio | ||||||||||||||||||||||||||||
Talmer Bancorp, Inc. (Consolidated) | 662,668 | 10.2 | 259,694 | 4.0 | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Talmer Bank and Trust | 684,340 | 10.5 | 259,784 | 4.0 | N/A | N/A | 324,730 | 5.0 |
(Dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 10,762 | $ | 12,581 | ||||
Investment in subsidiary | 802,483 | 750,713 | ||||||
Income tax benefit | 10,189 | 8,504 | ||||||
Other assets | 2,493 | 994 | ||||||
Total assets | $ | 825,927 | $ | 772,792 | ||||
Liabilities | ||||||||
Short-term borrowings | $ | 37,500 | $ | 30,000 | ||||
Long-term debt | 15,491 | 15,406 | ||||||
Accrued expenses and other liabilities | 3,961 | 2,171 | ||||||
Total liabilities | 56,952 | 47,577 | ||||||
Shareholders’ equity | 768,975 | 725,215 | ||||||
Total liabilities and shareholders’ equity | $ | 825,927 | $ | 772,792 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Income | ||||||||||||||||
Dividend income from subsidiary | $ | — | $ | — | $ | — | $ | 15,000 | ||||||||
Other noninterest income | 21 | 4 | 26 | 9 | ||||||||||||
Total income | 21 | 4 | 26 | 15,009 | ||||||||||||
Expenses | ||||||||||||||||
Salary and employee benefits | 1,927 | 1,671 | 3,615 | 2,892 | ||||||||||||
Merger and acquisition expense | 308 | 159 | 3,182 | 1,155 | ||||||||||||
Professional service fees | 287 | 491 | 802 | 868 | ||||||||||||
Insurance expense | 114 | 33 | 229 | 113 | ||||||||||||
Marketing expense | 32 | 35 | 47 | 49 | ||||||||||||
Interest on short-term borrowings | 208 | 187 | 375 | 261 | ||||||||||||
Interest on long-term debt | 202 | 182 | 400 | 344 | ||||||||||||
Other | 39 | 59 | 92 | 173 | ||||||||||||
Total expenses | 3,117 | 2,817 | 8,742 | 5,855 | ||||||||||||
Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries | (3,096 | ) | (2,813 | ) | (8,716 | ) | 9,154 | |||||||||
Income tax benefit | 3,812 | 1,082 | 7,098 | 1,735 | ||||||||||||
Equity in undistributed earnings of subsidiaries | 19,437 | 19,279 | 42,926 | 16,092 | ||||||||||||
Net income | $ | 20,153 | $ | 17,548 | $ | 41,308 | $ | 26,981 | ||||||||
Total comprehensive income, net of tax | $ | 24,429 | $ | 13,144 | $ | 49,311 | $ | 25,367 |
For the six months ended June 30, | ||||||||
(Dollars in thousands) | 2016 | 2015 | ||||||
Cash flows from operating activities | ||||||||
Net income | $ | 41,308 | $ | 26,981 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Equity in undistributed earnings of subsidiaries | (42,926 | ) | (16,092 | ) | ||||
Stock-based compensation expense | 702 | 371 | ||||||
Increase in income tax benefit | (1,685 | ) | (71 | ) | ||||
(Increase) decrease in other assets, net | (1,499 | ) | 168 | |||||
Increase (decrease) in accrued expenses and other liabilities, net | 1,875 | (4,194 | ) | |||||
Net cash from operating activities | (2,225 | ) | 7,163 | |||||
Cash flows from investing activities | ||||||||
Cash used in acquisitions | — | (13,323 | ) | |||||
Refund of investment | — | 2,225 | ||||||
Net cash used in investing activities | — | (11,098 | ) | |||||
Cash flows from financing activities | ||||||||
Issuance of common stock and restricted stock awards | (418 | ) | (127 | ) | ||||
Repurchase of warrants to repurchase 2.5 million shares, at fair value | — | (19,892 | ) | |||||
Cash dividends paid on common stock(1) | (6,676 | ) | (1,415 | ) | ||||
Draw on senior unsecured line of credit | 7,500 | 30,000 | ||||||
Repayment of long-term debt | — | (3,500 | ) | |||||
Net cash from financing activities | 406 | 5,066 | ||||||
Net increase (decrease) in cash and cash equivalents | (1,819 | ) | 1,131 | |||||
Beginning cash and cash equivalents | 12,581 | 9,497 | ||||||
Ending cash and cash equivalents | $ | 10,762 | $ | 10,628 |
(1) | $0.10 per share and $0.02 per share for the six months ended June 30, 2016 and 2015, respectively. |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
(In thousands, except per share data) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 20,153 | $ | 17,548 | $ | 41,308 | $ | 26,981 | ||||||||
Net income allocated to participating securities | 313 | 174 | 583 | 211 | ||||||||||||
Net income allocated to common shareholders (1) | $ | 19,840 | $ | 17,374 | $ | 40,725 | $ | 26,770 | ||||||||
Weighted average common shares - issued | 67,050 | 71,006 | 66,776 | 70,814 | ||||||||||||
Average unvested restricted share awards | (1,039 | ) | (705 | ) | (952 | ) | (555 | ) | ||||||||
Weighted average common shares outstanding - basic | 66,011 | 70,301 | 65,824 | 70,259 | ||||||||||||
Effect of dilutive securities | ||||||||||||||||
Employee and director stock options | 3,996 | 4,339 | 4,048 | 4,174 | ||||||||||||
Warrants | 19 | 260 | 17 | 613 | ||||||||||||
Weighted average common shares outstanding - diluted | 70,026 | 74,900 | 69,889 | 75,046 | ||||||||||||
EPS available to common shareholders | ||||||||||||||||
Basic | $ | 0.30 | $ | 0.25 | $ | 0.62 | $ | 0.38 | ||||||||
Diluted | $ | 0.28 | $ | 0.23 | $ | 0.58 | $ | 0.36 |
(1) | Net income allocated to common shareholders for basic and diluted earnings per share may differ under the two-class method as a result of adding common share equivalents for options and warrants to dilutive shares outstanding, which alters the ratio used to allocate net income to common shareholders and participating securities for the purposes of calculating diluted earnings per share. |
(Dollars in thousands) | Unrealized gains (losses) on securities available-for-sale, net of tax | Unrealized gains (losses) on cash flow hedges, net of tax | Total unrealized gains (losses), net of tax | |||||||||
For the three months ended June 30, 2016 | ||||||||||||
Beginning balance | $ | 8,312 | $ | (1,186 | ) | $ | 7,126 | |||||
Other comprehensive income (loss) before reclassifications | 4,766 | (585 | ) | 4,181 | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | (1) | 95 | (2) | 95 | |||||||
Net current period other comprehensive income (loss) | 4,766 | (490 | ) | 4,276 | ||||||||
Ending balance | $ | 13,078 | $ | (1,676 | ) | $ | 11,402 | |||||
For the three months ended June 30, 2015 | ||||||||||||
Beginning balance | $ | 6,939 | $ | (299 | ) | $ | 6,640 | |||||
Other comprehensive income (loss) before reclassifications | (4,831 | ) | 362 | (4,469 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | (3 | ) | (1) | 68 | (2) | 65 | ||||||
Net current period other comprehensive income (loss) | (4,834 | ) | 430 | (4,404 | ) | |||||||
Ending balance | $ | 2,105 | $ | 131 | $ | 2,236 | ||||||
For the six months ended June 30, 2016 | ||||||||||||
Beginning balance | $ | 3,589 | $ | (190 | ) | $ | 3,399 | |||||
Other comprehensive income (loss) before reclassifications | 9,705 | (1,677 | ) | 8,028 | ||||||||
Amounts reclassified from accumulated other comprehensive income | (216 | ) | (1) | 191 | (2) | (25 | ) | |||||
Net current period other comprehensive income (loss) | 9,489 | (1,486 | ) | 8,003 | ||||||||
Ending balance | $ | 13,078 | $ | (1,676 | ) | $ | 11,402 | |||||
For the six months ended June 30, 2015 | ||||||||||||
Beginning balance | $ | 3,995 | $ | (145 | ) | $ | 3,850 | |||||
Other comprehensive income before reclassifications | (1,956 | ) | 151 | (1,805 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | 66 | (1) | 125 | (2) | 191 | |||||||
Net current period other comprehensive income (loss) | (1,890 | ) | 276 | (1,614 | ) | |||||||
Ending balance | $ | 2,105 | $ | 131 | $ | 2,236 |
(1) | Amounts are included in “Net gain (loss) on sales of securities” in the Consolidated Statements of Income within total noninterest income, and were net gains of $0 thousand and $6 thousand for the three months ended June 30, 2016 and 2015, respectively, and net gains of $333 thousand and net losses of $101 thousand for the six months ended June 30, 2016 and 2015, respectively. Income tax expense associated with the reclassification adjustments for the three months ended June 30, 2016 and 2015 was an expense of $0 thousand and $3 thousand, respectively, and for the six months ended June 30, 2016 and 2015 was an expense of $117 thousand and a benefit of $35 thousand, respectively, and are included in “Income tax provision” in the Consolidated Statements of Income. |
(2) | Amounts are included in “Other brokered funds” in the Consolidated Statements of Income within total interest expense and were $147 thousand and $104 thousand for the three months ended June 30, 2016 and 2015, respectively, and $295 thousand and $192 thousand for the six months ended June 30, 2016 and 2015, respectively. Income tax benefit associated with the reclassification adjustment for the three months ended ended June 30, 2016 and 2015 was $52 thousand and $36 thousand, respectively, and $104 thousand and $67 thousand for the six months ended June 30, 2016 and 2015, respectively, and were included in “Income tax provision” in the Consolidated Statements of Income. |
For the three months ended June 30, | ||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest (1) | Average Rate (2) | Average Balance | Interest (1) | Average Rate (2) | ||||||||||||||||
Earning assets: | ||||||||||||||||||||||
Interest-earning balances | $ | 77,778 | $ | 82 | 0.42 | % | $ | 195,874 | $ | 117 | 0.24 | % | ||||||||||
Federal funds sold and other short-term investments | 225,555 | 600 | 1.07 | 152,593 | 269 | 0.71 | ||||||||||||||||
Investment securities (3): | ||||||||||||||||||||||
Taxable | 618,994 | 3,414 | 2.22 | 527,632 | 2,375 | 1.81 | ||||||||||||||||
Tax-exempt | 296,355 | 2,053 | 3.64 | 250,765 | 1,658 | 3.52 | ||||||||||||||||
Federal Home Loan Bank stock | 29,621 | 312 | 4.23 | 20,380 | 224 | 4.40 | ||||||||||||||||
Gross loans (4) | 5,000,439 | 57,915 | 4.66 | 4,552,481 | 58,319 | 5.14 | ||||||||||||||||
FDIC indemnification asset | — | — | — | 46,971 | (8,548 | ) | (73.00 | ) | ||||||||||||||
Total earning assets | 6,248,742 | 64,376 | 4.18 | % | 5,746,696 | 54,414 | 3.84 | % | ||||||||||||||
Non-earning assets: | ||||||||||||||||||||||
Cash and due from banks | 81,868 | 86,290 | ||||||||||||||||||||
Allowance for loan losses | (51,471 | ) | (51,033 | ) | ||||||||||||||||||
Premises and equipment | 41,774 | 47,775 | ||||||||||||||||||||
Core deposit intangible | 11,886 | 14,465 | ||||||||||||||||||||
Goodwill | 3,524 | 3,524 | ||||||||||||||||||||
Other real estate owned and repossessed assets | 23,618 | 44,888 | ||||||||||||||||||||
Loan servicing rights | 51,580 | 55,986 | ||||||||||||||||||||
FDIC receivable | — | 6,830 | ||||||||||||||||||||
Company-owned life insurance | 109,354 | 104,327 | ||||||||||||||||||||
Other non-earning assets | 243,381 | 236,881 | ||||||||||||||||||||
Total assets | $ | 6,764,256 | $ | 6,296,629 | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Interest-bearing demand deposits | $ | 846,243 | $ | 675 | 0.32 | % | $ | 828,482 | $ | 382 | 0.19 | % | ||||||||||
Money market and savings deposits | 1,268,058 | 650 | 0.21 | 1,267,347 | 562 | 0.18 | ||||||||||||||||
Time deposits | 1,587,128 | 3,296 | 0.84 | 1,353,226 | 2,131 | 0.63 | ||||||||||||||||
Other brokered funds | 385,794 | 841 | 0.88 | 483,716 | 607 | 0.50 | ||||||||||||||||
Short-term borrowings | 423,149 | 678 | 0.64 | 75,819 | 209 | 1.10 | ||||||||||||||||
Long-term debt | 327,332 | 842 | 1.03 | 463,210 | 914 | 0.79 | ||||||||||||||||
Total interest-bearing liabilities | 4,837,704 | 6,982 | 0.58 | % | 4,471,800 | 4,805 | 0.43 | % | ||||||||||||||
Noninterest-bearing liabilities and shareholders’ equity: | ||||||||||||||||||||||
Noninterest-bearing demand deposits | 1,111,039 | 976,044 | ||||||||||||||||||||
FDIC clawback liability | — | 28,087 | ||||||||||||||||||||
Other liabilities | 56,409 | 62,414 | ||||||||||||||||||||
Shareholders’ equity | 759,104 | 758,284 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,764,256 | $ | 6,296,629 | ||||||||||||||||||
Net interest income | $ | 57,394 | $ | 49,609 | ||||||||||||||||||
Interest spread | 3.60 | % | 3.41 | % | ||||||||||||||||||
Tax equivalent effect | 0.04 | % | 0.04 | % | ||||||||||||||||||
Net interest margin on a fully tax equivalent basis | 3.73 | % | 3.50 | % |
(1) | Interest income is shown on an actual basis and does not include taxable equivalent adjustments. |
(2) | Average rates are presented on an annual basis and include a taxable equivalent adjustment to interest income of $625 thousand and $540 thousand on tax-exempt securities for the three months ended June 30, 2016 and 2015, respectively, using the statutory tax rate of 35%. |
(3) | For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts. |
(4) | Includes nonaccrual loans. |
For the six months ended June 30, | ||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest (1) | Average Rate (2) | Average Balance | Interest (1) | Average Rate (2) | ||||||||||||||||
Earning assets: | ||||||||||||||||||||||
Interest earning balances | $ | 110,435 | $ | 266 | 0.48 | % | $ | 176,459 | $ | 203 | 0.23 | % | ||||||||||
Federal funds sold and other short-term investments | 206,035 | 1,068 | 1.04 | 125,159 | 434 | 0.70 | ||||||||||||||||
Investment securities (3): | ||||||||||||||||||||||
Taxable | 612,951 | 6,654 | 2.18 | 510,948 | 4,698 | 1.85 | ||||||||||||||||
Tax-exempt | 289,840 | 4,044 | 3.67 | 243,657 | 3,273 | 3.54 | ||||||||||||||||
Federal Home Loan Bank stock | 29,621 | 624 | 4.24 | 20,529 | 469 | 4.61 | ||||||||||||||||
Gross loans (4) | 4,932,520 | 114,275 | 4.66 | 4,491,749 | 118,257 | 5.31 | ||||||||||||||||
FDIC indemnification asset | — | — | — | 54,685 | (17,798 | ) | (65.63 | ) | ||||||||||||||
Total earning assets | 6,181,402 | 126,931 | 4.17 | % | 5,623,186 | 109,536 | 3.96 | % | ||||||||||||||
Non-earning assets: | 0 | 0 | 0 | |||||||||||||||||||
Cash and due from banks | 84,771 | 88,729 | ||||||||||||||||||||
Allowance for loan losses | (53,174 | ) | (52,145 | ) | ||||||||||||||||||
Premises and equipment | 42,518 | 48,074 | ||||||||||||||||||||
Core deposit intangible | 12,202 | 14,334 | ||||||||||||||||||||
Goodwill | 3,524 | 2,803 | ||||||||||||||||||||
Other real estate owned and repossessed assets | 25,443 | 46,715 | ||||||||||||||||||||
Loan servicing rights | 53,891 | 58,074 | ||||||||||||||||||||
FDIC receivable | — | 6,155 | ||||||||||||||||||||
Company-owned life insurance | 108,491 | 102,634 | ||||||||||||||||||||
Other non-earning assets | 242,862 | 235,798 | ||||||||||||||||||||
Total assets | $ | 6,701,930 | $ | 6,174,357 | ||||||||||||||||||
Interest-bearing liabilities: | 0 | 0 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Interest-bearing demand deposits | $ | 850,599 | $ | 1,076 | 0.25 | % | $ | 800,487 | $ | 672 | 0.17 | % | ||||||||||
Money market and savings deposits | 1,281,169 | 1,317 | 0.21 | 1,239,805 | 1,033 | 0.17 | ||||||||||||||||
Time deposits | 1,598,384 | 6,410 | 0.81 | 1,308,911 | 3,958 | 0.61 | ||||||||||||||||
Other brokered funds | 341,173 | 1,459 | 0.86 | 536,186 | 1,230 | 0.46 | ||||||||||||||||
Short-term borrowings | 384,539 | 1,335 | 0.70 | 62,900 | 288 | 0.92 | ||||||||||||||||
Long-term debt | 372,272 | 1,842 | 1.00 | 432,786 | 1,714 | 0.80 | ||||||||||||||||
Total interest-bearing liabilities | 4,828,136 | 13,439 | 0.56 | % | 4,381,075 | 8,895 | 0.41 | % | ||||||||||||||
Noninterest-bearing liabilities and shareholders’ equity: | 0 | 0 | ||||||||||||||||||||
Noninterest-bearing demand deposits | 1,068,818 | 948,856 | ||||||||||||||||||||
FDIC clawback liability | — | 27,600 | ||||||||||||||||||||
Other liabilities | 57,234 | 58,004 | ||||||||||||||||||||
Shareholders’ equity | 747,742 | 758,822 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,701,930 | $ | 6,174,357 | ||||||||||||||||||
Net interest income | $ | 113,492 | 0 | $ | 100,641 | |||||||||||||||||
Interest spread | 3.61 | % | 0 | 3.55 | % | |||||||||||||||||
Tax equivalent effect | 0.04 | % | 0.03 | % | ||||||||||||||||||
Net interest margin on a fully tax equivalent basis | 3.73 | % | 3.64 | % |
(1) | Interest income is shown on an actual basis and does not include taxable equivalent adjustments. |
(2) | Average rates are presented on an annual basis and include a taxable equivalent adjustment to interest income of $1.2 million and $1.0 million on tax-exempt securities for the six months ended June 30, 2016 and 2015, respectively, using the statutory tax rate of 35%. |
(3) | For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts. |
(4) | Includes nonaccrual loans. |
For the three months ended June 30, 2016 vs. 2015 | ||||||||||||
Increase (Decrease) Due to: | Net Increase | |||||||||||
(Dollars in thousands) | Rate | Volume | (Decrease) | |||||||||
Interest-earning assets | ||||||||||||
Interest-earning balances | $ | 59 | $ | (94 | ) | $ | (35 | ) | ||||
Federal funds sold and other short-term investments | 171 | 160 | 331 | |||||||||
Investment securities: | ||||||||||||
Taxable | 587 | 452 | 1,039 | |||||||||
Tax-exempt | 82 | 313 | 395 | |||||||||
FHLB stock | (10 | ) | 98 | 88 | ||||||||
Gross loans | (5,864 | ) | 5,460 | (404 | ) | |||||||
FDIC indemnification asset (1) | — | 8,548 | 8,548 | |||||||||
Total interest income | (4,975 | ) | 14,937 | 9,962 | ||||||||
Interest-bearing liabilities | ||||||||||||
Interest-bearing demand deposits | 285 | 8 | 293 | |||||||||
Money market and savings deposits | 88 | — | 88 | |||||||||
Time deposits | 755 | 410 | 1,165 | |||||||||
Other brokered funds | 376 | (142 | ) | 234 | ||||||||
Short-term borrowings | (121 | ) | 590 | 469 | ||||||||
Long-term debt | 236 | (308 | ) | (72 | ) | |||||||
Total interest expense | 1,619 | 558 | 2,177 | |||||||||
Change in net interest income | $ | (6,594 | ) | $ | 14,379 | $ | 7,785 |
For the six months ended June 30, 2016 vs. 2015 | ||||||||||||
Increase (Decrease) Due to: | Net Increase | |||||||||||
(Dollars in thousands) | Rate | Volume | (Decrease) | |||||||||
Interest earning assets | ||||||||||||
Interest earning balances | $ | 160 | $ | (97 | ) | $ | 63 | |||||
Federal funds sold and other short-term investments | 275 | 359 | 634 | |||||||||
Investment securities: | ||||||||||||
Taxable | 929 | 1,027 | 1,956 | |||||||||
Tax-exempt | 131 | 640 | 771 | |||||||||
FHLB stock | (39 | ) | 194 | 155 | ||||||||
Gross loans | (14,960 | ) | 10,978 | (3,982 | ) | |||||||
FDIC indemnification asset (1) | — | 17,798 | 17,798 | |||||||||
Total interest income | (13,504 | ) | 30,899 | 17,395 | ||||||||
Interest-bearing liabilities | ||||||||||||
Interest-bearing demand deposits | 360 | 44 | 404 | |||||||||
Money market and savings deposits | 249 | 35 | 284 | |||||||||
Time deposits | 1,461 | 991 | 2,452 | |||||||||
Other brokered funds | 791 | (562 | ) | 229 | ||||||||
Short-term borrowings | (86 | ) | 1,133 | 1,047 | ||||||||
Long-term debt | 389 | (261 | ) | 128 | ||||||||
Total interest expense | 3,164 | 1,380 | 4,544 | |||||||||
Change in net interest income | $ | (16,668 | ) | $ | 29,519 | $ | 12,851 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Noninterest income | ||||||||||||||||
Deposit fee income | $ | 2,420 | $ | 2,561 | $ | 4,817 | $ | 4,881 | ||||||||
Mortgage banking and other loan fees: | ||||||||||||||||
Changes in loan servicing rights fair value due to valuation inputs or assumptions (1) | (3,499 | ) | 3,146 | (10,124 | ) | (938 | ) | |||||||||
Other | 1,134 | 1,552 | 3,879 | 4,375 | ||||||||||||
Total mortgage banking and other loans fees | (2,365 | ) | 4,698 | (6,245 | ) | 3,437 | ||||||||||
Net gain on sales of loans | 7,588 | 8,748 | 12,826 | 17,366 | ||||||||||||
Accelerated discount on acquired loans | 5,076 | 7,444 | 10,128 | 15,642 | ||||||||||||
Net gain (loss) on sales of securities | — | 6 | 333 | (101 | ) | |||||||||||
Company-owned life insurance | 795 | 856 | 1,545 | 1,596 | ||||||||||||
FDIC loss share income (2) | — | (5,928 | ) | — | (6,996 | ) | ||||||||||
Other income | 3,726 | 3,713 | 7,460 | 7,703 | ||||||||||||
Total noninterest income | $ | 17,240 | $ | 22,098 | $ | 30,864 | $ | 43,528 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Noninterest expense | ||||||||||||||||
Salary and employee benefits | $ | 26,913 | $ | 28,685 | $ | 52,726 | $ | 57,897 | ||||||||
Occupancy and equipment expense | 6,039 | 8,415 | 12,046 | 16,081 | ||||||||||||
Data processing fees | 1,909 | 1,805 | 3,652 | 3,659 | ||||||||||||
Professional service fees | 2,547 | 3,275 | 5,837 | 6,818 | ||||||||||||
Merger and acquisition expense | 312 | 419 | 3,186 | 1,831 | ||||||||||||
Marketing expense | 1,158 | 1,483 | 2,687 | 2,578 | ||||||||||||
Other employee expense | 579 | 826 | 1,387 | 1,760 | ||||||||||||
Insurance expense | 1,485 | 1,527 | 3,035 | 3,057 | ||||||||||||
FDIC loss share expense (1) | — | 133 | — | 1,082 | ||||||||||||
Other expense | 4,987 | 6,725 | 9,643 | 15,125 | ||||||||||||
Total noninterest expense | $ | 45,929 | $ | 53,293 | $ | 94,199 | $ | 109,888 |
For the six months ended June 30, 2016 | ||||||||||||
(Dollars in thousands) | Actual | Transaction and integration related expenses | Excluding transaction and integration related expenses | |||||||||
Noninterest expense | ||||||||||||
Salary and employee benefits | $ | 52,726 | $ | — | $ | 52,726 | ||||||
Occupancy and equipment expense | 12,046 | — | 12,046 | |||||||||
Data processing fees | 3,652 | — | 3,652 | |||||||||
Professional service fees | 5,837 | — | 5,837 | |||||||||
Merger and acquisition expense | 3,186 | 3,186 | — | |||||||||
Marketing expense | 2,687 | — | 2,687 | |||||||||
Other employee expense | 1,387 | — | 1,387 | |||||||||
Insurance expense | 3,035 | — | 3,035 | |||||||||
Other expense | 9,643 | — | 9,643 | |||||||||
Total noninterest expense | $ | 94,199 | $ | 3,186 | $ | 91,013 |
For the six months ended June 30, 2015 | ||||||||||||
(Dollars in thousands) | Actual | Transaction and integration related expenses | Excluding transaction and integration related expenses | |||||||||
Noninterest expense | ||||||||||||
Salary and employee benefits | $ | 57,897 | $ | 972 | $ | 56,925 | ||||||
Occupancy and equipment expense | 16,081 | — | 16,081 | |||||||||
Data processing fees | 3,659 | 875 | 2,784 | |||||||||
Professional service fees | 6,818 | 88 | 6,730 | |||||||||
Merger and acquisition expense | 1,831 | 1,831 | — | |||||||||
Marketing expense | 2,578 | — | 2,578 | |||||||||
Other employee expense | 1,760 | — | 1,760 | |||||||||
Insurance expense | 3,057 | — | 3,057 | |||||||||
FDIC loss share expense | 1,082 | — | 1,082 | |||||||||
Other expense | 15,125 | — | 15,125 | |||||||||
Total noninterest expense | $ | 109,888 | $ | 3,766 | $ | 106,122 |
(Dollars in thousands) | Michigan | Ohio | Illinois | Indiana | Wisconsin | Nevada | Maryland | New Mexico | Other | Total | ||||||||||||||||||||||||||||||
June 30, 2016 | ||||||||||||||||||||||||||||||||||||||||
Commercial real estate (1)(2) | $ | 932,383 | $ | 312,375 | $ | 168,813 | $ | 44,993 | $ | 42,124 | $ | 39,570 | $ | 4,633 | $ | 2,820 | $ | 114,079 | $ | 1,661,790 | ||||||||||||||||||||
Residential real estate (3)(4) | 841,029 | 494,978 | 46,118 | 91,856 | 28,311 | 11,143 | 35,006 | 51 | 126,123 | 1,674,615 | ||||||||||||||||||||||||||||||
Commercial and industrial (5) | 465,912 | 195,242 | 178,338 | 24,752 | 32,855 | 12,692 | 3,190 | 317 | 369,343 | 1,282,641 | ||||||||||||||||||||||||||||||
Real estate construction | 148,749 | 64,146 | 19,845 | 405 | 10,688 | 1,793 | 483 | 267 | 10,735 | 257,111 | ||||||||||||||||||||||||||||||
Consumer | 18,420 | 3,287 | 3,048 | 2,200 | 840 | 2,210 | 3,341 | 272 | 138,339 | 171,957 | ||||||||||||||||||||||||||||||
Total loans | $ | 2,406,493 | $ | 1,070,028 | $ | 416,162 | $ | 164,206 | $ | 114,818 | $ | 67,408 | $ | 46,653 | $ | 3,727 | $ | 758,619 | $ | 5,048,114 |
(1) | Commercial real estate loans to borrowers in the Detroit-Warren-Dearborn MSA totaled $670.8 million. The Detroit-Warren-Dearborn MSA includes borrowers located in Wayne, Oakland, Macomb, Livingston, St. Clair and Lapeer counties in the State of Michigan. |
(2) | Commercial real estate loans to borrowers in the Cleveland-Elyria-Mentor metropolitan statistical area (Cleveland MSA) totaled $169.8 million. The Cleveland MSA includes borrowers located in Cuyahoga, Geauga Lake, Lorain, and Medina counties in the State of Ohio. |
(3) | Residential real estate loans to borrowers in the Detroit-Warren-Dearborn MSA totaled $630.0 million. |
(4) | Residential real estate loans to borrowers in the Cleveland MSA totaled $109.6 million. |
(5) | Commercial and industrial loans to borrowers in the Detroit-Warren-Dearborn MSA totaled $292.3 million. |
(Dollars in thousands) | Michigan | Ohio | Illinois | Indiana | Wisconsin | Nevada | Maryland | New Mexico | Other | Total | ||||||||||||||||||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||||||||||||||||||
Commercial real estate (1)(2) | $ | 859,483 | $ | 280,605 | $ | 157,979 | $ | 46,452 | $ | 44,365 | $ | 55,933 | $ | 4,685 | $ | 3,057 | $ | 115,538 | $ | 1,568,097 | ||||||||||||||||||||
Residential real estate (3)(4) | 743,817 | 470,892 | 46,208 | 91,559 | 31,046 | 10,594 | 37,551 | 42 | 116,090 | 1,547,799 | ||||||||||||||||||||||||||||||
Commercial and industrial (5) | 423,212 | 196,839 | 192,360 | 27,587 | 26,959 | 14,665 | 3,318 | 381 | 372,085 | 1,257,406 | ||||||||||||||||||||||||||||||
Real estate construction | 136,685 | 59,545 | 16,787 | 7,164 | 11,353 | 2,358 | 185 | 395 | 7,131 | 241,603 | ||||||||||||||||||||||||||||||
Consumer | 17,024 | 4,117 | 3,605 | 2,588 | 1,011 | 2,751 | 6,761 | 307 | 153,631 | 191,795 | ||||||||||||||||||||||||||||||
Total loans | $ | 2,180,221 | $ | 1,011,998 | $ | 416,939 | $ | 175,350 | $ | 114,734 | $ | 86,301 | $ | 52,500 | $ | 4,182 | $ | 764,475 | $ | 4,806,700 |
(1) | Commercial real estate loans to borrowers in the Detroit-Warren-Dearborn MSA totaled $595.3 million. The Detroit-Warren-Dearborn MSA includes borrowers located in Wayne, Oakland, Macomb, Livingston, St. Clair and Lapeer counties in the State of Michigan. |
(2) | Commercial real estate loans to borrowers in the Cleveland-Elyria-Mentor metropolitan statistical area (Cleveland MSA) totaled $156.5 million. The Cleveland MSA includes borrowers located in Cuyahoga, Geauga Lake, Lorain, and Medina counties in the State of Ohio. |
(3) | Residential real estate loans to borrowers in the Detroit-Warren-Dearborn MSA totaled $532.0 million. |
(4) | Residential real estate loans to borrowers in the Cleveland MSA totaled $114.5 million. |
(5) | Commercial and industrial loans to borrowers in the Detroit-Warren-Dearborn MSA totaled $269.3 million. |
(Dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||
Commercial real estate | ||||||||
Non-owner occupied | $ | 1,080,132 | $ | 1,039,305 | ||||
Owner-occupied | 554,950 | 503,814 | ||||||
Farmland | 26,708 | 24,978 | ||||||
Total commercial real estate | 1,661,790 | 1,568,097 | ||||||
Residential real estate | 1,674,615 | 1,547,799 | ||||||
Commercial and industrial | 1,282,641 | 1,257,406 | ||||||
Real estate construction | 257,111 | 241,603 | ||||||
Consumer | 171,957 | 191,795 | ||||||
Total loans | $ | 5,048,114 | $ | 4,806,700 |
Loans Maturing | ||||||||||||||||
(Dollars in thousands) | One year or less | After one but within five years | After five years | Total | ||||||||||||
June 30, 2016 | ||||||||||||||||
Loans: | ||||||||||||||||
Commercial real estate | $ | 244,201 | $ | 938,701 | $ | 478,888 | $ | 1,661,790 | ||||||||
Residential real estate | 58,548 | 163,203 | 1,452,864 | 1,674,615 | ||||||||||||
Commercial and industrial | 341,302 | 781,385 | 159,954 | 1,282,641 | ||||||||||||
Real estate construction | 76,326 | 89,495 | 91,290 | 257,111 | ||||||||||||
Consumer | 3,606 | 73,141 | 95,210 | 171,957 | ||||||||||||
Total loans | $ | 723,983 | $ | 2,045,925 | $ | 2,278,206 | $ | 5,048,114 | ||||||||
Sensitivity of loans to changes in interest rates: | ||||||||||||||||
Predetermined (fixed) interest rates | 1,273,784 | 946,869 | ||||||||||||||
Floating interest rates | 772,141 | 1,331,337 | ||||||||||||||
Total | $ | 2,045,925 | $ | 2,278,206 |
Loans Maturing | ||||||||||||||||
(Dollars in thousands) | One year or less | After one but within five years | After five years | Total | ||||||||||||
December 31, 2015 | ||||||||||||||||
Loans: | ||||||||||||||||
Commercial real estate | $ | 227,709 | $ | 932,991 | $ | 407,397 | $ | 1,568,097 | ||||||||
Residential real estate | 55,876 | 186,409 | 1,305,514 | 1,547,799 | ||||||||||||
Commercial and industrial | 307,476 | 763,476 | 186,454 | 1,257,406 | ||||||||||||
Real estate construction | 77,434 | 69,485 | 94,684 | 241,603 | ||||||||||||
Consumer | 2,749 | 87,104 | 101,942 | 191,795 | ||||||||||||
Total loans | $ | 671,244 | $ | 2,039,465 | $ | 2,095,991 | $ | 4,806,700 | ||||||||
Sensitivity of loans to changes in interest rates: | ||||||||||||||||
Predetermined (fixed) interest rates | 1,359,329 | 931,350 | ||||||||||||||
Floating interest rates | 680,136 | 1,164,641 | ||||||||||||||
Total | $ | 2,039,465 | $ | 2,095,991 |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Balance at beginning of period | $ | 17,849 | $ | 29,060 | $ | 22,266 | $ | 32,732 | ||||||||
Transfer to loans not accounted for under ASC 310-30 (1) | (568 | ) | (578 | ) | (960 | ) | (656 | ) | ||||||||
Loan charge-offs: | ||||||||||||||||
Commercial real estate | (655 | ) | (3,241 | ) | (2,419 | ) | (7,512 | ) | ||||||||
Residential real estate | (875 | ) | (593 | ) | (1,610 | ) | (2,157 | ) | ||||||||
Commercial and industrial | (668 | ) | (723 | ) | (1,402 | ) | (1,401 | ) | ||||||||
Real estate construction | (246 | ) | (695 | ) | (319 | ) | (1,226 | ) | ||||||||
Consumer | (5 | ) | (19 | ) | (11 | ) | (214 | ) | ||||||||
Total loan charge-offs | (2,449 | ) | (5,271 | ) | (5,761 | ) | (12,510 | ) | ||||||||
Recoveries of loans previously charged-off: | ||||||||||||||||
Commercial real estate | 1,117 | 3,937 | 1,543 | 7,508 | ||||||||||||
Residential real estate | 393 | 660 | 2,005 | 908 | ||||||||||||
Commercial and industrial | 463 | 2,616 | 848 | 2,981 | ||||||||||||
Real estate construction | 116 | 134 | 184 | 636 | ||||||||||||
Consumer | 15 | 50 | 34 | 89 | ||||||||||||
Total loan recoveries | 2,104 | 7,397 | 4,614 | 12,122 | ||||||||||||
Net (charge-offs) recoveries | (345 | ) | 2,126 | (1,147 | ) | (388 | ) | |||||||||
Benefit for loan losses | (844 | ) | (4,854 | ) | (4,067 | ) | (5,934 | ) | ||||||||
Balance at end of period | $ | 16,092 | $ | 25,754 | $ | 16,092 | $ | 25,754 | ||||||||
Allowance for loan losses as a percentage of total ASC 310-30 loans at period end | 3.27 | % | 3.84 | % | 3.27 | % | 3.84 | % |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Balance at beginning of period | $ | 34,529 | $ | 23,405 | $ | 31,687 | $ | 22,440 | ||||||||
Transfer in (1) | 568 | 578 | 960 | 656 | ||||||||||||
Loan charge-offs: | ||||||||||||||||
Commercial real estate | (1,738 | ) | (462 | ) | (2,148 | ) | (1,620 | ) | ||||||||
Residential real estate | (759 | ) | (642 | ) | (1,314 | ) | (1,539 | ) | ||||||||
Commercial and industrial | (2,399 | ) | (1,287 | ) | (2,643 | ) | (2,693 | ) | ||||||||
Real estate construction | (171 | ) | (31 | ) | (198 | ) | (43 | ) | ||||||||
Consumer | (380 | ) | (244 | ) | (884 | ) | (530 | ) | ||||||||
Total loan charge-offs | (5,447 | ) | (2,666 | ) | (7,187 | ) | (6,425 | ) | ||||||||
Recoveries of loans previously charged-off: | ||||||||||||||||
Commercial real estate | 680 | 6,165 | 1,644 | 6,838 | ||||||||||||
Residential real estate | 781 | 600 | 1,413 | 987 | ||||||||||||
Commercial and industrial | 245 | 1,347 | 463 | 1,729 | ||||||||||||
Real estate construction | 30 | 120 | 229 | 152 | ||||||||||||
Consumer | 56 | 62 | 121 | 161 | ||||||||||||
Total loan recoveries | 1,792 | 8,294 | 3,870 | 9,867 | ||||||||||||
Net (charge-offs) recoveries | (3,655 | ) | 5,628 | (3,317 | ) | 3,442 | ||||||||||
Provision (benefit) for loan losses | 4,052 | (2,459 | ) | 6,164 | 614 | |||||||||||
Balance at end of period | $ | 35,494 | $ | 27,152 | $ | 35,494 | $ | 27,152 | ||||||||
Allowance for loan losses as a percentage of total loans excluded from ASC 310-30 accounting at period end | 0.78 | % | 0.70 | % | 0.78 | % | 0.70 | % |
Accounted for under ASC 310-30 | Excluded from ASC 310-30 accounting | |||||||||||||||||||
(Dollars in thousands) | Allocated Allowance | Allowance Ratio (1) | Percent of loans in each category to total loans | Allocated Allowance | Allowance Ratio (1) | Percent of loans in each category to total loans | ||||||||||||||
June 30, 2016 | ||||||||||||||||||||
Balance at end of period applicable to: | ||||||||||||||||||||
Commercial real estate | $ | 7,521 | 3.52 | % | 43.4 | % | $ | 11,258 | 0.78 | % | 31.8 | % | ||||||||
Residential real estate | 6,915 | 2.86 | 49.1 | 9,021 | 0.63 | 31.4 | ||||||||||||||
Commercial and industrial | 960 | 4.61 | 4.2 | 11,480 | 0.91 | 27.7 | ||||||||||||||
Real estate construction | 629 | 7.98 | 1.6 | 1,585 | 0.64 | 5.5 | ||||||||||||||
Consumer | 67 | 0.81 | 1.7 | 2,150 | 1.31 | 3.6 | ||||||||||||||
Total loans | $ | 16,092 | 3.27 | % | 100.0 | % | $ | 35,494 | 0.78 | % | 100.0 | % | ||||||||
December 31, 2015 | ||||||||||||||||||||
Balance at end of period applicable to: | ||||||||||||||||||||
Commercial real estate | $ | 11,030 | 4.40 | % | 44.0 | % | $ | 8,388 | 0.64 | % | 31.1 | % | ||||||||
Residential real estate | 7,947 | 2.90 | 48.1 | 6,485 | 0.51 | 30.1 | ||||||||||||||
Commercial and industrial | 1,487 | 6.01 | 4.3 | 14,831 | 1.20 | 29.1 | ||||||||||||||
Real estate construction | 1,678 | 15.56 | 1.9 | 1,021 | 0.44 | 5.4 | ||||||||||||||
Consumer | 124 | 1.32 | 1.7 | 962 | 0.53 | 4.3 | ||||||||||||||
Total loans | $ | 22,266 | 3.91 | % | 100.0 | % | $ | 31,687 | 0.75 | % | 100.0 | % |
(1) | Allocated allowance as a percentage of related loans outstanding. |
(Dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||
Nonperforming troubled debt restructurings | ||||||||
Commercial real estate | $ | 4,840 | $ | 7,485 | ||||
Residential real estate | 5,090 | 5,485 | ||||||
Commercial and industrial | 3,555 | 1,167 | ||||||
Real estate construction | 172 | 187 | ||||||
Consumer | 34 | 127 | ||||||
Total nonperforming troubled debt restructurings | 13,691 | 14,451 | ||||||
Nonaccrual loans other than nonperforming troubled debt restructurings | ||||||||
Commercial real estate | $ | 7,685 | $ | 9,313 | ||||
Residential real estate | 10,756 | 12,905 | ||||||
Commercial and industrial | 13,727 | 20,501 | ||||||
Real estate construction | 31 | 226 | ||||||
Consumer | 64 | 79 | ||||||
Total nonaccrual loans other than nonperforming troubled debt restructurings | 32,263 | 43,024 | ||||||
Total nonaccrual loans | 45,954 | 57,475 | ||||||
Other real estate and repossessed assets (1) | 20,461 | 28,157 | ||||||
Total nonperforming assets | 66,415 | 85,632 | ||||||
Performing troubled debt restructurings | ||||||||
Commercial real estate | 19,102 | 15,340 | ||||||
Residential real estate | 8,468 | 5,749 | ||||||
Commercial and industrial | 3,319 | 3,438 | ||||||
Real estate construction | 266 | 420 | ||||||
Consumer | 318 | 242 | ||||||
Total performing troubled debt restructurings | 31,473 | 25,189 | ||||||
Total impaired assets | $ | 97,888 | $ | 110,821 | ||||
Loans 90 days or more past due and still accruing, excluding loans accounted for under ASC 310-30 | $ | 823 | $ | 297 |
(1) | Excludes closed branches and operating facilities. |
June 30, | December 31, | |||||||
(Dollars in thousands) | 2016 | 2015 | ||||||
Securities available-for-sale: | ||||||||
U.S. government sponsored agency obligations | $ | 52,072 | $ | 60,022 | ||||
Obligations of state and political subdivisions: | ||||||||
Taxable | 4,385 | 1,321 | ||||||
Tax exempt | 310,798 | 287,208 | ||||||
Small Business Administration (SBA) Pools | 25,729 | 27,925 | ||||||
Residential mortgage-backed securities: | ||||||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | 298,861 | 309,306 | ||||||
Privately issued | 90,369 | 89,450 | ||||||
Privately issued commercial mortgage backed securities | 23,852 | 13,705 | ||||||
Corporate debt securities: | ||||||||
Senior debt | 81,988 | 71,365 | ||||||
Subordinated debt | 30,723 | 30,468 | ||||||
Total securities available-for-sale | $ | 918,777 | $ | 890,770 | ||||
Securities held-to-maturity | 1,655 | 1,678 | ||||||
Total investment securities | $ | 920,432 | $ | 892,448 |
Maturity as of June 30, 2016 | ||||||||||||||||||||||||||||
One Year or Less | One to Five Years | Five to Ten Years | After Ten Years | |||||||||||||||||||||||||
Amortized | Average | Amortized | Average | Amortized | Average | Amortized | Average | |||||||||||||||||||||
(Dollars in thousands) | Cost | Yield (1) | Cost | Yield (1) | Cost | Yield (1) | Cost | Yield (1) | ||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||||||||||
U.S. government sponsored agency obligations (1) | $ | — | — | % | $ | 31,870 | 1.28 | % | $ | 19,997 | 2.03 | % | $ | — | — | % | ||||||||||||
Obligations of state and political subdivisions: | ||||||||||||||||||||||||||||
Taxable | — | — | 3,279 | 1.89 | 1,000 | 3.27 | — | — | ||||||||||||||||||||
Tax exempt (2) | 3,383 | 4.74 | 53,359 | 3.85 | 127,356 | 4.04 | 115,194 | 4.36 | ||||||||||||||||||||
SBA Pools (3) (4) | — | — | 1,210 | 1.73 | 24,052 | 1.10 | — | — | ||||||||||||||||||||
Residential mortgage-backed securities (3): | ||||||||||||||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or sponsored enterprises | 13,334 | 2.09 | 256,717 | 2.42 | 22,567 | 2.74 | — | — | ||||||||||||||||||||
Privately issued (1) | 30,280 | 2.66 | 59,662 | 2.39 | — | — | — | — | ||||||||||||||||||||
Commercial mortgage-backed securities (3) | 23,840 | 2.01 | — | — | — | — | — | — | ||||||||||||||||||||
Corporate debt securities (5) | — | — | 69,668 | 2.10 | 29,878 | 4.21 | 12,012 | 2.67 | ||||||||||||||||||||
Total securities available-for-sale | 70,837 | 1.30 | 475,765 | 2.45 | 224,850 | 3.44 | 127,206 | 4.20 | ||||||||||||||||||||
Securities held-to-maturity | — | — | 1,655 | — | — | — | — | — | ||||||||||||||||||||
Total investment securities | $ | 70,837 | 1.30 | % | $ | 477,420 | 2.44 | % | $ | 224,850 | 3.44 | % | $ | 127,206 | 4.20 | % |
(1) | Average yields assume a yield to call approach where embedded call options exist, such as in certain callable U.S. government sponsored agency obligations and non-agency mortgage-backed securities. $10.0 million of U.S. government sponsored agency obligations maturing beyond five years contain step-up coupon structures which, if were not to be called prior to stated maturities, would positively impact average yields for balances maturing in the five-to-ten years bucket by 51 basis points, or resulting in average yield of 2.54%. |
(2) | Average yields on tax-exempt obligations have been computed on a tax equivalent basis, based on a 35% federal tax rate. |
(3) | Maturity distributions for SBA pools, residential mortgage-backed securities and commercial mortgage backed securities are based on estimated average lives. |
(4) | All indicated balances in the one-to-five years bucket and five-to-ten years bucket encompass floating rate holdings indexed to Prime, which are contractually adjustable on a quarterly basis, in which the current June 30, 2016 indexed coupon rates are assumed to remain constant until maturity. |
(5) | Average yields on corporate debt securities in the one-to-five year maturity bucket and after ten year maturity bucket includes yields on $8.2 million and $12.0 million, respectively, of floating rate holdings indexed to 3-month LIBOR, in which the current June 30, 2016 indexed coupon rates are assumed to remain constant until maturity. |
Maturity as of December 31, 2015 | ||||||||||||||||||||||||||||
One Year or Less | One to Five Years | Five to Ten Years | After Ten Years | |||||||||||||||||||||||||
Amortized | Average | Amortized | Average | Amortized | Average | Amortized | Average | |||||||||||||||||||||
(Dollars in thousands) | Cost | Yield (1) | Cost | Yield (1) | Cost | Yield (1) | Cost | Yield (1) | ||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||||||||||
U.S. government sponsored agency obligations (1) | $ | — | — | % | $ | 29,896 | 1.81 | % | $ | 29,518 | 1.99 | % | $ | — | — | % | ||||||||||||
Obligations of state and political subdivisions: | ||||||||||||||||||||||||||||
Taxable | — | — | 318 | 6.19 | 1,000 | 3.27 | — | — | ||||||||||||||||||||
Tax exempt (2) | 3,216 | 4.27 | 51,201 | 3.79 | 126,575 | 4.20 | 101,374 | 4.43 | ||||||||||||||||||||
SBA Pools (3) (4) | — | — | 1,352 | 1.36 | 26,209 | 0.86 | — | — | ||||||||||||||||||||
Residential mortgage-backed securities (3): | ||||||||||||||||||||||||||||
Issued and/or guaranteed by U.S. government agencies or sponsored enterprises | 1,681 | 2.13 | 195,465 | 2.40 | 111,250 | 2.66 | — | — | ||||||||||||||||||||
Privately issued (1) | — | — | 73,631 | 2.70 | 16,453 | 2.50 | — | — | ||||||||||||||||||||
Commercial mortgage-backed securities (3) | 8,755 | 1.62 | 5,071 | 2.20 | — | — | — | — | ||||||||||||||||||||
Corporate debt securities (5) | 3,032 | 1.60 | 55,079 | 2.14 | 32,236 | 4.07 | 11,937 | 2.35 | ||||||||||||||||||||
Total securities available-for-sale | 16,684 | 2.18 | 412,013 | 2.55 | 343,241 | 3.16 | 113,311 | 4.21 | ||||||||||||||||||||
Securities held-to-maturity | — | — | 1,678 | — | — | — | — | — | ||||||||||||||||||||
Total investment securities | $ | 16,684 | 2.18 | % | $ | 413,691 | 2.54 | % | $ | 343,241 | 3.16 | % | $ | 113,311 | 4.21 | % |
(1) | Average yields assume a yield to call approach where embedded call options exist, such as in certain callable U.S. government sponsored agency obligations and non-agency mortgage-backed securities. $20.0 million of U.S. government sponsored agency obligations maturing beyond five years contain step-up coupon structures which, if were not to be called prior to stated maturities, would positively impact average yields for balances maturing in the five-to-ten years bucket by 98 basis points, or resulting in an average yield of 2.97%. |
(2) | Average yields on tax-exempt obligations have been computed on a tax equivalent basis, based on a 35% federal tax rate. |
(3) | Maturity distributions for SBA pools, residential mortgage-backed securities and commercial mortgage backed securities are based on estimated average lives. |
(4) | All indicated balances in the one-to-five years bucket and five-to-ten years bucket encompass floating rate holdings indexed to Prime, which are contractually adjustable on a quarterly basis, in which the current December 31, 2015 indexed coupon rates are assumed to remain constant until maturity. |
(5) | Average yields on corporate debt securities in the one-to-five year maturity bucket, five-to-ten year maturity bucket, and after ten year maturity bucket includes yields on $5.9 million, $2.3 million and $11.9 million, respectively, of floating rate holdings indexed to 3-month LIBOR, in which the current December 31, 2015 indexed coupon rates are assumed to remain constant until maturity. |
(Dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||
Noninterest-bearing demand deposits | $ | 1,148,558 | $ | 1,011,414 | ||||
Interest-bearing demand deposits | 911,509 | 849,599 | ||||||
Money market and savings deposits | 1,263,599 | 1,314,909 | ||||||
Time deposits | 1,554,946 | 1,609,895 | ||||||
Other brokered funds | 388,596 | 228,764 | ||||||
Total deposits | $ | 5,267,208 | $ | 5,014,581 |
(Dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||
Maturing in | ||||||||
3 months or less | $ | 411,437 | $ | 374,424 | ||||
3 months to 6 months | 236,161 | 250,006 | ||||||
6 months to 1 year | 387,521 | 326,232 | ||||||
1 year or greater | 153,315 | 138,936 | ||||||
Total | $ | 1,188,434 | $ | 1,089,598 |
(Dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||
Short-term borrowings: | ||||||||
FHLB advances | $ | 475,000 | $ | 300,000 | ||||
Securities sold under agreements to repurchase | 13,460 | 18,998 | ||||||
Holding company line of credit | 37,500 | 30,000 | ||||||
Total short-term borrowings | 525,960 | 348,998 | ||||||
Long-term debt: | ||||||||
FHLB advances (1) | 227,190 | 393,851 | ||||||
Securities sold under agreements to repurchase (2) | 53,975 | 54,800 | ||||||
Subordinated notes related to trust preferred securities (3) | 15,491 | 15,406 | ||||||
Total long-term debt | 296,656 | 464,057 | ||||||
Total short-term borrowings and long-term debt: | $ | 822,616 | $ | 813,055 |
(1) | The June 30, 2016 balance includes advances payable of $223.9 million and purchase accounting premiums of $3.3 million. The December 31, 2015 balance includes advances payable of $389.6 million and purchase accounting premiums of $4.3 million. |
(2) | The June 30, 2016 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $4.0 million. The December 31, 2015 balance includes securities sold under agreements to repurchase of $50.0 million and purchase accounting premiums of $4.8 million. |
(3) | The June 30, 2016 and December 31, 2015 balances each include subordinated notes related to trust preferred securities of $20.0 million and purchase accounting discounts of $4.5 million. |
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Balance at beginning of period | $ | 748,670 | $ | 753,849 | $ | 725,215 | $ | 761,607 | ||||||||
Net income | 20,153 | 17,548 | 41,308 | 26,981 | ||||||||||||
Other comprehensive income | 4,276 | (4,404 | ) | 8,003 | (1,614 | ) | ||||||||||
Stock-based compensation expense | 845 | 515 | 1,543 | 866 | ||||||||||||
Restricted stock awards, including tax benefit | — | 16 | — | 16 | ||||||||||||
Issuance of common shares, net of stock option exercises | (1,613 | ) | (409 | ) | (418 | ) | (143 | ) | ||||||||
Repurchase of warrants to purchase 2.5 million shares, at fair value | — | — | — | (19,892 | ) | |||||||||||
Cash dividends paid on common stock (1) | (3,356 | ) | (709 | ) | (6,676 | ) | (1,415 | ) | ||||||||
Balance at end of period | $ | 768,975 | $ | 766,406 | $ | 768,975 | $ | 766,406 |
Well Capitalized Regulatory Requirement | Actual Capital Ratio | ||||
June 30, 2016 | |||||
Total risk-based capital | |||||
Consolidated | N/A | 13.3 | % | ||
Talmer Bank and Trust | 10.0 | % | 13.9 | ||
Common equity tier 1 capital | |||||
Consolidated | N/A | 12.4 | |||
Talmer Bank and Trust | 6.5 | 12.9 | |||
Tier 1 risk-based capital | |||||
Consolidated | N/A | 12.4 | |||
Talmer Bank and Trust | 8.0 | 12.9 | |||
Tier 1 leverage ratio | |||||
Consolidated | N/A | 10.6 | |||
Talmer Bank and Trust | 5.0 | 10.9 | |||
December 31, 2015 | |||||
Total risk-based capital | |||||
Consolidated | N/A | 13.0 | % | ||
Talmer Bank and Trust | 10.0 | % | 13.5 | ||
Common equity tier 1 capital | |||||
Consolidated | N/A | 12.0 | |||
Talmer Bank and Trust | 6.5 | 12.5 | |||
Tier 1 risk-based capital | |||||
Consolidated | N/A | 12.0 | |||
Talmer Bank and Trust | 8.0 | 12.5 | |||
Tier 1 leverage ratio | |||||
Consolidated | N/A | 10.2 | |||
Talmer Bank and Trust | 5.0 | 10.5 |
June 30, 2016 | December 31, 2015 | |||||||||||||||||||||||
(Dollars in thousands) | Fixed Rate | Variable Rate | Total | Fixed Rate | Variable Rate | Total | ||||||||||||||||||
Commitments to extend credit | $ | 595,921 | $ | 750,086 | $ | 1,346,007 | $ | 658,268 | $ | 489,102 | $ | 1,147,370 | ||||||||||||
Standby letters of credit | 61,423 | 3,969 | 65,392 | 61,300 | 4,801 | 66,101 | ||||||||||||||||||
Total commitments | $ | 657,344 | $ | 754,055 | $ | 1,411,399 | $ | 719,568 | $ | 493,903 | $ | 1,213,471 |
June 30, 2016 | December 31, 2015 | |||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||
(Dollars in thousands) | Notional Amount (1) | Gross Derivative Assets (2) | Gross Derivative Liabilities (2) | Notional Amount (1) | Gross Derivative Assets (2) | Gross Derivative Liabilities (2) | ||||||||||||||||||
Risk management purposes: | ||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||
Interest rate swaps | $ | 37,000 | $ | — | $ | 2,578 | $ | 37,000 | $ | 105 | $ | 397 | ||||||||||||
Total risk management purposes | 37,000 | — | 2,578 | 37,000 | 105 | 397 | ||||||||||||||||||
Customer-initiated and mortgage banking activities: | ||||||||||||||||||||||||
Forward contracts related to mortgage loans to be delivered for sale | 135,027 | — | 1,303 | 105,711 | — | 38 | ||||||||||||||||||
Interest rate lock commitments | 121,893 | 3,482 | — | 62,081 | 1,220 | — | ||||||||||||||||||
Customer-initiated derivatives | 492,834 | 13,310 | 13,845 | 354,699 | 4,143 | 4,144 | ||||||||||||||||||
Total customer-initiated and mortgage banking activities | 749,754 | 16,792 | 15,148 | 522,491 | 5,363 | 4,182 | ||||||||||||||||||
Total gross derivatives | $ | 786,754 | $ | 16,792 | $ | 17,726 | $ | 559,491 | $ | 5,468 | $ | 4,579 |
(1) | Notional or contract amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in our Consolidated Balance Sheets. |
(2) | Derivative assets are included within “Other assets” and derivative liabilities are included within “Other liabilities” on our Consolidated Balance Sheets. Included in the fair value of the derivative assets are credit valuation adjustments for counterparty credit risk totaling $758 thousand at June 30, 2016 and $208 thousand at December 31, 2015. |
For the six months ended June 30, | ||||||||
(Dollars in thousands) | 2016 | 2015 | ||||||
Reserve balance at beginning of period | $ | 1,300 | $ | 4,000 | ||||
Provision expense (benefit) | 462 | (271 | ) | |||||
Charge-offs | (212 | ) | (1,729 | ) | ||||
Ending reserve balance | $ | 1,550 | $ | 2,000 | ||||
Reserve balance | June 30, 2016 | December 31, 2015 | ||||||
Liability for specific claims | $ | 609 | $ | 380 | ||||
General allowance | 941 | 920 | ||||||
Total reserve balance | $ | 1,550 | $ | 1,300 |
(Dollars in thousands) | Total | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | |||||||||||||||
Time deposits(1) | $ | 1,783,370 | $ | 1,461,786 | $ | 220,731 | $ | 93,619 | $ | 7,234 | ||||||||||
FHLB borrowings | 698,850 | 625,000 | 62,850 | 1,000 | 10,000 | |||||||||||||||
Securities sold under agreements to repurchase | 63,460 | 63,460 | — | — | — | |||||||||||||||
Holding company line of credit | 37,500 | 37,500 | — | — | — | |||||||||||||||
Subordinated notes related to trust preferred securities | 20,000 | — | — | — | 20,000 | |||||||||||||||
Future minimum lease payments(2) | 29,392 | 6,046 | 10,341 | 7,523 | 5,482 | |||||||||||||||
Total | $ | 2,632,572 | $ | 2,193,792 | $ | 293,922 | $ | 102,142 | $ | 42,716 |
June 30, 2016 | December 31, 2015 | |||||
Investment securities available-for-sale to total deposits | 17.44 | % | 17.76 | % | ||
Loans (net of unearned income) to total deposits | 95.84 | 95.85 | ||||
Interest-earning assets to total assets | 92.71 | 92.45 | ||||
Interest-bearing deposits to total deposits | 78.19 | 79.83 |
(Dollars in thousands, except per share data) | For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Core efficiency ratio: | ||||||||||||||||
Net interest income | $ | 57,394 | $ | 49,609 | $ | 113,492 | $ | 100,641 | ||||||||
Noninterest income | 17,240 | 22,098 | 30,864 | 43,528 | ||||||||||||
Total revenue | 74,634 | 71,707 | 144,356 | 144,169 | ||||||||||||
Less: | ||||||||||||||||
Expense due to change in the fair value of loan servicing rights due to valuation inputs or assumptions | (3,499 | ) | 3,146 | (10,124 | ) | (938 | ) | |||||||||
FDIC loss share income | — | (5,928 | ) | — | (6,996 | ) | ||||||||||
Total core revenue | 78,133 | 74,489 | 154,480 | 152,103 | ||||||||||||
Total noninterest expense | 45,929 | 53,293 | 94,199 | 109,888 | ||||||||||||
Less: | ||||||||||||||||
Transaction and integration related costs | 312 | 419 | 3,186 | 3,766 | ||||||||||||
Property efficiency review | — | 1,820 | — | 1,820 | ||||||||||||
Total core noninterest expense | $ | 45,617 | $ | 51,054 | $ | 91,013 | $ | 104,302 | ||||||||
Efficiency ratio | 61.54 | % | 74.32 | % | 65.25 | % | 76.22 | % | ||||||||
Core efficiency ratio | 58.38 | 68.54 | 58.92 | 68.57 | ||||||||||||
Core earnings per diluted average common share: | ||||||||||||||||
Diluted EPS available to common shareholders | $ | 0.28 | $ | 0.23 | $ | 0.58 | $ | 0.36 | ||||||||
Net income allocated to common shareholders | 19,840 | 17,374 | 40,725 | 26,770 | ||||||||||||
Impact to pre-tax net income due to non-core items listed above | (3,811 | ) | (5,021 | ) | (13,310 | ) | (13,520 | ) | ||||||||
Estimated income tax impact of above non-core items | (1,212 | ) | (1,597 | ) | (4,234 | ) | (4,301 | ) | ||||||||
After-tax non-core items: | ||||||||||||||||
Excess tax benefits | 2,612 | — | 4,084 | — | ||||||||||||
Benefit due to finalization of a settlement with the Internal Revenue Service | — | — | 4,306 | — | ||||||||||||
After-tax impact of non-core items | 13 | (3,424 | ) | (686 | ) | (9,219 | ) | |||||||||
Portion of non-core items allocated to participating securities | — | (34 | ) | (10 | ) | (72 | ) | |||||||||
Impact of non-core items applicable to common shareholders | 13 | (3,458 | ) | (676 | ) | (9,147 | ) | |||||||||
Core earnings allocated to common shareholders | 19,827 | 20,832 | 41,401 | 35,917 | ||||||||||||
Weighted average common shares outstanding - diluted | 70,026 | 74,900 | 69,889 | 75,046 | ||||||||||||
Impact to diluted EPS of non-core items | $ | — | $ | (0.05 | ) | $ | (0.01 | ) | $ | (0.12 | ) | |||||
Core diluted EPS applicable to common shareholders | 0.28 | 0.28 | 0.59 | 0.48 |
June 30, 2016 | December 31, 2015 | |||||||||||
Following 12 months | Following 24 months | Following 12 months | Following 24 months | |||||||||
+400 basis points | 0.4 | % | 2.9 | % | (2.3 | )% | (1.4 | )% | ||||
+300 basis points | 0.3 | 2.2 | (2.0 | ) | (1.2 | ) | ||||||
+200 basis points | 0.5 | 1.9 | (1.5 | ) | (0.8 | ) | ||||||
+100 basis points | 0.5 | 1.3 | (0.8 | ) | (0.3 | ) | ||||||
-100 basis points | (2.4 | ) | (3.4 | ) | (1.9 | ) | (2.1 | ) | ||||
-200 basis points | (5.3 | ) | (6.7 | ) | (5.5 | ) | (6.6 | ) | ||||
-300 basis points | (7.7 | ) | (9.3 | ) | (7.7 | ) | (9.0 | ) | ||||
-400 basis points | (8.8 | ) | (10.6 | ) | (8.7 | ) | (10.1 | ) |
June 30, 2016 | December 31, 2015 | |||||
+400 basis points | (22.5 | )% | (21.6 | )% | ||
+300 basis points | (16.3 | ) | (16.1 | ) | ||
+200 basis points | (9.5 | ) | (10.4 | ) | ||
+100 basis points | (3.7 | ) | (5.0 | ) | ||
-100 basis points | (2.5 | ) | (0.6 | ) | ||
-200 basis points | (5.6 | ) | (4.7 | ) | ||
-300 basis points | (4.1 | ) | (6.4 | ) | ||
-400 basis points | (3.3 | ) | (5.4 | ) |
Exhibit No. | Description of Exhibit | |
31.1 | Rule 13a-14(a) Certification of the Chief Executive Officer | |
31.2 | Rule 13a-14(a) Certification of the Chief Financial Officer | |
32.1 | Section 1350 Certifications | |
101 | The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, formatted in eXtensible Business Reporting Language (XBRL); (i) Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015, (ii) Consolidated Statements of Income for the three and six months ended June 30, 2016 and 2015, (iii) Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2016 and 2015, (iv) Consolidated Statement of Changes in Shareholders’ Equity for the six months ended June 30, 2016 and 2015, (v) Consolidated Statements of Cash Flows for the six months ended June 30, 2016 and 2015, and (vi) Notes to Consolidated Financial Statements. |
† | Schedules and similar attachments have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The registrant will furnish supplementally a copy of any omitted schedules or similar attachment to the SEC upon request. |
TALMER BANCORP, INC. | ||
August 5, 2016 | By: | /s/ David T. Provost |
David T. Provost | ||
Chief Executive Officer | ||
(Principal Executive Officer) | ||
August 5, 2016 | By: | /s/ Dennis Klaeser |
Dennis Klaeser | ||
Chief Financial Officer | ||
(Principal Financial Officer and Principal Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Talmer Bancorp, Inc. |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ David T. Provost | |
David T. Provost, Chief Executive Officer | |
(Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Talmer Bancorp, Inc. |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Dennis Klaeser | |
Dennis Klaeser, Chief Financial Officer | |
(Principal Financial and Accounting Officer) |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ David T. Provost | |
David T. Provost | |
Chief Executive Officer | |
August 5, 2016 | |
/s/ Dennis Klaeser | |
Dennis Klaeser | |
Chief Financial Officer | |
August 5, 2016 |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Aug. 04, 2016 |
|
Document and Entity Information | ||
Entity Registrant Name | TALMER BANCORP, INC. | |
Entity Central Index Key | 0001360683 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 67,190,600 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Preferred stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Preferred stock, Authorized shares | 20,000,000 | 20,000,000 |
Preferred stock, Issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Residential real estate | ||
Total loans, excluding covered loans, measured at fair value (in dollars) | $ 23,648 | $ 22,200 |
Class A Voting Common Stock | ||
Common Stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Common Stock, Authorized shares | 198,000,000 | 198,000,000 |
Common Stock, Issued shares | 66,114,798 | |
Common stock, outstanding shares | 67,194,703 | 66,114,798 |
Class B Non-Voting Common Stock | ||
Common Stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Common Stock, Authorized shares | 2,000,000 | 2,000,000 |
Common Stock, Issued shares | 0 | 0 |
Common stock, outstanding shares | 0 | 0 |
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Interest income | ||||
Interest and fees on loans | $ 57,915 | $ 58,319 | $ 114,275 | $ 118,257 |
Interest on investments | ||||
Taxable | 3,414 | 2,375 | 6,654 | 4,698 |
Tax-exempt | 2,053 | 1,658 | 4,044 | 3,273 |
Total interest on securities | 5,467 | 4,033 | 10,698 | 7,971 |
Interest on interest-earning cash balances | 82 | 117 | 266 | 203 |
Interest on federal funds and other short-term investments | 600 | 269 | 1,068 | 434 |
Dividends on FHLB stock | 312 | 224 | 624 | 469 |
FDIC indemnification asset | 0 | (8,548) | 0 | (17,798) |
Total interest income | 64,376 | 54,414 | 126,931 | 109,536 |
Interest Expense | ||||
Interest-bearing demand deposits | 675 | 382 | 1,076 | 672 |
Money market and savings deposits | 650 | 562 | 1,317 | 1,033 |
Time deposits | 3,296 | 2,131 | 6,410 | 3,958 |
Other brokered funds | 841 | 607 | 1,459 | 1,230 |
Interest on short-term borrowings | 678 | 209 | 1,335 | 288 |
Interest on long-term debt | 842 | 914 | 1,842 | 1,714 |
Total interest expense | 6,982 | 4,805 | 13,439 | 8,895 |
Net interest income | 57,394 | 49,609 | 113,492 | 100,641 |
Provision (benefit) for loan losses | 3,208 | (7,313) | 2,097 | (5,320) |
Net interest income after provision for loan losses | 54,186 | 56,922 | 111,395 | 105,961 |
Noninterest income | ||||
Deposit fee income | 2,420 | 2,561 | 4,817 | 4,881 |
Mortgage banking and other loan fees | (2,365) | 4,698 | (6,245) | 3,437 |
Net gain on sales of loans | 7,588 | 8,748 | 12,826 | 17,366 |
Accelerated discount on acquired loans | 5,076 | 7,444 | 10,128 | 15,642 |
Net gain (loss) on sales of securities | 0 | 6 | 333 | (101) |
Company-owned life insurance | 795 | 856 | 1,545 | 1,596 |
FDIC loss share income | 0 | (5,928) | 0 | (6,996) |
Other income | 3,726 | 3,713 | 7,460 | 7,703 |
Total noninterest income | 17,240 | 22,098 | 30,864 | 43,528 |
Noninterest expense | ||||
Salary and employee benefits | 26,913 | 28,685 | 52,726 | 57,897 |
Occupancy and equipment expense | 6,039 | 8,415 | 12,046 | 16,081 |
Data processing fees | 1,909 | 1,805 | 3,652 | 3,659 |
Professional service fees | 2,547 | 3,275 | 5,837 | 6,818 |
Merger and acquisition expense | 312 | 419 | 3,186 | 1,831 |
Marketing expense | 1,158 | 1,483 | 2,687 | 2,578 |
Other employee expense | 579 | 826 | 1,387 | 1,760 |
Insurance expense | 1,485 | 1,527 | 3,035 | 3,057 |
FDIC loss share expense | 0 | 133 | 0 | 1,082 |
Other expense | 4,987 | 6,725 | 9,643 | 15,125 |
Total noninterest expense | 45,929 | 53,293 | 94,199 | 109,888 |
Income before income taxes | 25,497 | 25,727 | 48,060 | 39,601 |
Income tax provision | 5,344 | 8,179 | 6,752 | 12,620 |
Net income | $ 20,153 | $ 17,548 | $ 41,308 | $ 26,981 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.30 | $ 0.25 | $ 0.62 | $ 0.38 |
Diluted (in dollars per share) | $ 0.28 | $ 0.23 | $ 0.58 | $ 0.36 |
Average common shares outstanding - basic (in shares) | 66,011 | 70,301 | 65,824 | 70,259 |
Average common shares outstanding - diluted (in shares) | 70,026 | 74,900 | 69,889 | 75,046 |
Cash dividends declared on common stock | $ 3,356 | $ 709 | $ 6,676 | $ 1,415 |
Cash dividends declared per common share (in dollars per share) | $ 0.05 | $ 0.01 | $ 0.10 | $ 0.02 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 20,153 | $ 17,548 | $ 41,308 | $ 26,981 |
Other comprehensive income: | ||||
Unrealized holding gains (losses) on securities available-for-sale arising during the period | 7,332 | (7,431) | 14,931 | (3,008) |
Reclassification adjustment for (gains) losses on realized income | 0 | (6) | (333) | 101 |
Tax effect | (2,566) | 2,603 | (5,109) | 1,017 |
Net unrealized gains (losses) on securities available-for-sale, net of tax | 4,766 | (4,834) | 9,489 | (1,890) |
Unrealized gains (losses) on interest rate swaps designated as cash flow hedges | (900) | 558 | (2,581) | 233 |
Reclassification adjustment for losses included in net income | 147 | 104 | 295 | 192 |
Tax effect | 263 | (232) | 800 | (149) |
Net unrealized gains (losses) on interest rate swaps designated as cash flow hedges, net of tax | (490) | 430 | (1,486) | 276 |
Other comprehensive income (loss), net of tax | 4,276 | (4,404) | 8,003 | (1,614) |
Total comprehensive income, net of tax | $ 24,429 | $ 13,144 | $ 49,311 | $ 25,367 |
Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands |
Total |
Common Stock |
Additional Paid in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
---|---|---|---|---|---|
Beginning balance at Dec. 31, 2014 | $ 761,607 | $ 70,532 | $ 405,436 | $ 281,789 | $ 3,850 |
Balance (in shares) at Dec. 31, 2014 | 70,532 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 26,981 | 26,981 | |||
Other comprehensive loss | (1,614) | (1,614) | |||
Stock-based compensation expense | 866 | 866 | |||
Restricted stock awards | 16 | $ 352 | (336) | ||
Restricted stock awards (in shares) | 352 | ||||
Issuance of common shares, net of stock option exercises | (143) | $ 245 | (388) | ||
Issuance of common shares, net of stock option exercises (in shares) | 245 | ||||
Repurchase of warrants to purchase 2.5 million shares, at fair value | (19,892) | (19,892) | |||
Cash dividends paid on common stock | (1,415) | (1,415) | |||
Ending balance at Jun. 30, 2015 | 766,406 | $ 71,129 | 385,686 | 307,355 | 2,236 |
Balance (in shares) at Jun. 30, 2015 | 71,129 | ||||
Beginning balance at Mar. 31, 2015 | 6,640 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 17,548 | ||||
Other comprehensive loss | (4,404) | ||||
Cash dividends paid on common stock | (709) | ||||
Ending balance at Jun. 30, 2015 | 766,406 | $ 71,129 | 385,686 | 307,355 | 2,236 |
Balance (in shares) at Jun. 30, 2015 | 71,129 | ||||
Beginning balance at Dec. 31, 2015 | 725,215 | $ 66,115 | 316,571 | 339,130 | 3,399 |
Balance (in shares) at Dec. 31, 2015 | 66,115 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 41,308 | 41,308 | |||
Other comprehensive loss | 8,003 | 8,003 | |||
Stock-based compensation expense | 1,543 | 1,543 | |||
Restricted stock awards | 0 | $ 303 | (303) | ||
Restricted stock awards (in shares) | 303 | ||||
Issuance of common shares, net of stock option exercises | (418) | $ 777 | (1,195) | ||
Issuance of common shares, net of stock option exercises (in shares) | 777 | ||||
Cash dividends paid on common stock | (6,676) | (6,676) | |||
Ending balance at Jun. 30, 2016 | 768,975 | $ 67,195 | 316,616 | 373,762 | 11,402 |
Balance (in shares) at Jun. 30, 2016 | 67,195 | ||||
Beginning balance at Mar. 31, 2016 | 7,126 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 20,153 | ||||
Other comprehensive loss | 4,276 | ||||
Cash dividends paid on common stock | (3,356) | ||||
Ending balance at Jun. 30, 2016 | $ 768,975 | $ 67,195 | $ 316,616 | $ 373,762 | $ 11,402 |
Balance (in shares) at Jun. 30, 2016 | 67,195 |
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares shares in Millions |
6 Months Ended | |
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Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Stockholders' Equity [Abstract] | ||
Dividend paid (in dollars per share) | $ 0.10 | $ 0.02 |
Common Stock | ||
Repurchase of 2.5 million warrants, at fair value (in shares) | 0.0 | 2.5 |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
6 Months Ended | |
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Jun. 30, 2016 |
Jun. 30, 2015 |
|
Cash flows from operating activities | ||
Net income | $ 41,308 | $ 26,981 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,119 | 3,730 |
Amortization of core deposit intangibles | 1,215 | 1,314 |
Stock-based compensation expense | 1,543 | 866 |
Provision (benefit) for loan losses | 2,097 | (5,320) |
Originations of loans held for sale | (340,088) | (664,111) |
Proceeds from sales of loans | 369,940 | 653,291 |
Net gain from sales of loans | (12,826) | (17,366) |
Net (gain) loss on sales of securities | (333) | 101 |
Valuation allowance and writedowns on other real estate and other repossessed assets | 2,246 | 5,017 |
Valuation change in Company-owned life insurance | (1,584) | (1,596) |
Valuation change in loan servicing rights | 14,592 | 4,850 |
Additions to loan servicing rights | (4,175) | (5,848) |
Net decrease in FDIC indemnification asset and receivable other than payments received | 0 | 27,428 |
Net gain on sales of other real estate owned and repossessed assets | (2,534) | (2,780) |
Net (increase) decrease in accrued interest receivable and other assets | (12,555) | 2,399 |
Net increase (decrease) in accrued expenses and other liabilities | 8,598 | (1,286) |
Net securities premium amortization | 4,058 | 3,535 |
Deferred income tax benefit | (1,754) | (8,543) |
Change in valuation allowance of deferred income tax asset | (495) | 0 |
Other, net | 325 | 2,333 |
Net cash from operating activities | 72,697 | 24,995 |
Cash flows from investing activities | ||
Net increase in loans | (245,031) | (143,829) |
Purchases of loans | (10,162) | (30,793) |
Purchases of FHLB stock | 0 | (6,716) |
Purchases of securities available-for-sale | (156,046) | (187,009) |
New investments in Company-owned life insurance | (1,335) | (875) |
Purchases of premises and equipment | (978) | (1,907) |
Payments received from FDIC under loss sharing agreements | 0 | 3,120 |
Proceeds from: | ||
Maturities and redemptions of securities available-for-sale | 123,935 | 85,238 |
Redemption of FHLB Stock | 0 | 2,384 |
Sale of securities available-for-sale | 14,977 | 24,750 |
Sale of loan servicing rights | 0 | 12,702 |
Sale of loans | 5,581 | 49,839 |
Sale of other real estate owned and repossessed assets | 14,179 | 20,428 |
Sale of premises and equipment | 0 | 2,737 |
Net cash provided from acquisition | 0 | 810 |
Net cash from (used in) investing activities | (254,880) | (169,121) |
Cash flows from financing activities | ||
Net increase in deposits | 252,627 | 157,757 |
Draw on senior unsecured line of credit | 7,500 | 30,000 |
Net increase in short-term borrowings | 169,462 | 88,202 |
Issuances of long-term FHLB advances | 0 | 200,000 |
Repayments of long-term FHLB advances | (165,700) | (147,870) |
Repayments of subordinated debt | 0 | (3,500) |
Other changes in long-term debt | (1,701) | (741) |
Repurchase of warrants to repurchase 2.5 million shares, at fair value | 0 | (19,892) |
Issuance of common stock and restricted stock awards | 1,727 | 574 |
Cash paid for payroll taxes upon exercise of stock options | (2,145) | (2,167) |
Cash dividends paid on common stock ($0.10 and $0.02 per share, respectively) | (6,676) | (1,415) |
Net cash from financing activities | 255,094 | 300,948 |
Net change in cash and cash equivalents | 72,911 | 156,822 |
Beginning cash and cash equivalents | 387,323 | 253,736 |
Ending cash and cash equivalents | 460,234 | 410,558 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 13,368 | 8,292 |
Income taxes paid | (172) | 16,745 |
Transfer from mortgage loans to other real estate owned and repossessed assets | 6,667 | 18,753 |
Net transfer of loans held for sale to loans held for investment | (1,896) | (3,983) |
Transfer from premises and equipment to other real estate owned | 0 | 455 |
Increase in assets and liabilities of acquisitions: | ||
Securities | 0 | 34,022 |
FHLB stock | 0 | 874 |
Uncovered loans | 0 | 162,265 |
Premises and equipment | 0 | 2,077 |
Company-owned life insurance | 0 | 4,719 |
Other real estate owned and repossessed assets | 0 | 1,260 |
Core deposit intangible | 0 | 2,410 |
Other assets | 0 | 6,462 |
Deposits | 0 | 201,453 |
Long-term debt | 0 | 13,086 |
Other liabilities | $ 0 | $ 3,884 |
Consolidated Statements of Cash Flows (Parenthetical) - $ / shares shares in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Cash dividends declared on common stock (in dollars per share) | $ 0.10 | $ 0.02 |
Common Stock | ||
Number of shares repurchased (in share) | 0.0 | 2.5 |
BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS |
6 Months Ended |
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Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS | BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS The accompanying unaudited consolidated financial statements of Talmer Bancorp, Inc. (“the Company”), and its wholly-owned subsidiary have been prepared in accordance with United States (U.S.) generally accepted accounting principles (“GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the Consolidated Financial Statements, primarily consisting of normal recurring adjustments, have been included. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year or for any other interim period. Certain items in prior periods were reclassified to conform to the current presentation. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s consolidated financial statements and footnotes included in the Annual Report of Talmer Bancorp, Inc. on Form 10-K for the year ended December 31, 2015. Subsequent Event On July 29, 2016, Talmer Bank and Trust, the wholly-owned subsidiary of Talmer Bancorp, Inc., entered into an agreement to sell its single branch office in Chicago, Illinois to Old Second National Bank, a wholly owned subsidiary of Old Second Bancorp, Inc. Old Second National Bank is expected to assume approximately $82.0 million of deposits and purchase approximately $238.0 million of loans, and will pay a $6.5 million premium in the transaction. The acquisition is expected to close in the fourth quarter of 2016, subject to regulatory approval, the completion of Talmer Bancorp's pending merger with Chemical Financial Corporation and other customary closing conditions. Recently Adopted and Issued Accounting Standards The following provides a description of recently adopted or newly issued not yet effective accounting standards that had or could have a material effect on the Company's financial statements. Adopted Accounting Pronouncements In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), which simplifies the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification on the statement of cash flows. ASU 2016-09 is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted for any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company has elected to early adopt ASU 2016-09 during the second quarter of 2016. Prior to adoption of ASU 2016-09, all excess tax benefits resulting from the exercise or settlement of share-based payment transactions were recognized in additional paid-in-capital (APIC) and accumulated in an APIC pool, while tax deficiencies were either offset against the APIC pool or recognized in the income statement if no APIC pool was available. The new guidance eliminates the APIC pool and all excess tax benefits and deficiencies are recognized as an income tax benefit or expense in the income statement prospectively. Accordingly, periods prior to January 1, 2016 have not been adjusted. During the three and six months ended June 30, 2016, $2.6 million and $4.1 million of excess tax benefits were recognized as income tax benefit, respectively. ASU 2016-09 amends existing guidance to allow forfeitures of share-based awards to be recognized as they occur. Previous guidance required that share-based compensation expense include an estimate of forfeitures. The Company has made a policy election to continue to estimate forfeitures. Pending Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU is intended to clarify and converge the revenue recognition principles under GAAP and International Financial Reporting Standards and to streamline revenue recognition requirements in addition to expanding required revenue recognition disclosures. In March 2016, the FASB issued ASU 2016-08, "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)", ("ASU 2016-08"), which further clarifies ASU 2014-09 by providing implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, "Identifying Performance Obligations and Licensing", ("ASU 2016-10"), which provides additional clarification of ASU 2014-09 by amending guidance related to the identification of performance obligations and licensing implementation. ASU 2016-08 and ASU 2016-10 do not change the core principal of ASU 2014-09, but are intended to improve the operations and understanding of principal versus agent considerations, performance obligation identification and licensing implementation. In May 2016, the FASB issued ASU 2016-12 "Narrow-Scope Improvements and Practical Expedients", ("ASU 2016-12"), which amends certain aspects of ASU 2014-09, which include collectibility, presentation of sales taxes and other taxes collected from customers, noncash consideration and transition technical corrections. ASU 2016-12 completes the FASB deliberations of clarifications to ASU 2014-09 that have been conducted over the last year. In August 2015, the FASB issued ASU 2015-14, "Deferral of the Effective Date" ("ASU 2015-14"), which provides a one year deferral to the effective date, therefore, ASU 2014-09 is effective for public companies for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2017. As such, the Company will adopt ASU 2014-09 as of January 1, 2018. Under the provision, the Company will have the option to adopt the guidance using either a full retrospective method or a modified transition approach. The Company is currently evaluating the provisions of ASU 2014-09. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which amends the accounting guidance related to the classification and measurement of financial instruments. While ASU 2016-01 retains many current requirements, it revises the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. ASU 2016-01 requires entities to carry investments in equity securities at fair value through net income, with exceptions for investments that qualify for the equity method of accounting, investments resulting in investee consolidation, or investments in which the practicability exception to fair value measurement has been elected. The ASU also provides a new requirement to separately present in other comprehensive income the fair value change of instrument-specific credit risk, with exceptions to derivative liabilities which will continue to be presented in net income. ASU 2016-01 is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. As such, the Company will adopt ASU 2016-01 as of January 1, 2018. Under the provision, the Company will be required to make a cumulative-effect adjustment to retained earnings as of the beginning of the year in which the guidance is effective. Exceptions exist for equity securities without readily determinable fair values and the use of the exit price to measure fair value for disclosure purposes, which will both be applied prospectively as of the date of adoption. The Company is currently evaluating the provisions of ASU 2016-01. In February 2016, the FASB issued ASU 2016-02, "Leases" ("ASU 2016-02"), which improves the lease recognition process and increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing agreements. In addition, the ASU defines a lease and simplifies a number of the requirements provided in the current lease model. ASU 2016-02 is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. As such, the Company will adopt ASU 2016-02 as of January 1, 2019. Under the provision, the Company will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the provisions of ASU 2016-02. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"), which amends the accounting guidance on the impairment of financial instruments. ASU 2016-13 adds to GAAP a current expected credit loss (CECL) impairment model that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is believed by the FASB to result in more timely recognition of such losses. ASU 2016-13 is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. As such, the Company will adopt ASU 2016-13 as of January 1, 2020. Under the provision, the Company will be required to make a cumulative-effect adjustment to retained earnings as of the beginning of the year in which the guidance is effective related to most debt instruments. The Company is currently evaluating the provisions of ASU 2016-13. Pending Merger with Chemical Financial Corporation On January 26, 2016, the board of directors of Chemical Financial Corporation (Nasdaq: CHFC), the holding company for Chemical Bank, and the Company announced the execution of a definitive agreement for Chemical Financial Corporation to partner with the Company in a cash and common stock merger transaction. Under the terms of the agreements, the Company will be merged with and into Chemical Financial Corporation, with Chemical Financial Corporation as the surviving corporation. The merger has been approved by both Chemical Financial Corporation and the Company's shareholders. The completion of the merger remains subject to receipt of regulatory approvals and satisfaction of other customary closing conditions. |
BUSINESS COMBINATIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS The Company has determined that the acquisition of First of Huron Corp. (“First Huron”), and its subsidiary bank, Signature Bank, constitutes a business combination as defined by FASB ASC Topic 805, “Business Combinations.” Accordingly, the assets acquired and liabilities assumed were recorded at their fair values on the date of acquisition, as required. Fair values were determined based on the requirements of FASB ASC Topic 820, “Fair Value Measurement.” In many cases the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. On February 6, 2015, the Company acquired First Huron for aggregate cash consideration of $13.4 million. In connection with the merger, First Huron merged with the Company, with the Company as the surviving entity in the merger. Immediately following the merger, Signature Bank, a Michigan state-chartered bank and wholly owned subsidiary of First Huron, merged with and into Talmer Bank and Trust ("Talmer Bank"), with Talmer Bank as the surviving bank. The Company assumed $3.5 million in subordinated notes issued to First Huron and $1.4 million of related interest. The subordinated debt was immediately retired and the interest was paid in full in accordance with the provision of the purchase agreement. The Company also received First Huron’s common securities issued by trust preferred issuers and assumed $876 thousand of outstanding interest. The outstanding interest on the trust preferred securities was immediately paid off in accordance with the provisions of the purchase agreement. The Company received certain tax assets and all cash and cash equivalents held by First Huron. The Company incurred $144 thousand and $1.2 million of acquisition related expenses during the three and six months ended June 30, 2015, related to the acquisition of First Huron, included within “Merger and acquisition expense” in the Consolidated Statements of Income. The Company recorded $4.8 million in net deferred tax assets related to the acquisition. Upon acquisition, First Huron incurred an ownership change within the meaning of Section 382 of the Internal Revenue Code, but the acquisition did not result in built-in losses within the meaning of Section 382. At February 6, 2015, First Huron had an estimated $1.7 million in gross federal net operating loss carry forwards expiring in 2030, 2032 and 2033 and $303 thousand in federal alternative minimum tax credits with an indefinite life. As a result of the ownership change, the Company’s ability to benefit from the use of First Huron’s pre-ownership change net operating loss and tax credit carry forwards will be limited to approximately $366 thousand per year. No valuation allowance was established against the deferred tax assets associated with First Huron’s pre-change net operating losses and tax credit carry forwards based on management’s estimate that none of the amounts will expire unused. The assets and liabilities associated with the acquisition of First Huron were recorded in the Consolidated Balance Sheets at estimated fair value as of the acquisition date as presented in the following table.
The First Huron acquisition resulted in recognition of $3.5 million of goodwill which is the excess of the consideration paid over the fair value of net assets acquired, and is the result of expected operational synergies and other factors. Loans acquired in the First Huron acquisition were initially recorded at fair value with no separate allowance for loan losses. The Company reviewed the loans at acquisition to determine which should be considered purchased credit impaired loans (i.e. loans accounted for under FASB ASC Subtopic 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality” (“ASC 310-30”)) defining impaired loans as those that were either not accruing interest or exhibited credit risk factors consistent with nonperforming loans at the acquisition date. Fair values for purchased loans are based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of the loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Larger purchased loans are individually evaluated while smaller purchased loans are grouped together according to similar characteristics and were treated in the aggregate when applying various valuation techniques. The Company accounts for purchased credit impaired loans in accordance with the provisions of ASC 310-30. The cash flows expected to be collected on purchased loans are estimated based upon the expected remaining life of the underlying loans, which includes the effects of estimated prepayments. Purchased loans are considered purchased credit impaired loans if there is evidence of credit deterioration at the date of purchase and if it is probable that not all contractually required payments will be collected. Under ASC 310-30, interest income is recognized on purchased credit impaired loans through accretion of the difference between the carrying value of the loans and the expected cash flows. Purchased loans outside the scope of ASC 310-30 are accounted for under FASB ASC Subtopic 310-20, “Receivables - Nonrefundable Fees and Costs” ("ASC 310-20"). Premiums and discounts created when the loans were recorded at their fair values at acquisition are amortized over the remaining terms of the loans as an adjustment to the related loan’s yield. The core deposit intangible is being amortized on an accelerated basis over the estimated life, currently expected to be 10 years from the date of acquisition. Information regarding acquired loans accounted for under ASC 310-30 as well as those excluded from ASC 310-30 accounting at acquisition date is as follows:
First Huron’s results of operations have been included in the Company’s financial results since the February 6, 2015 acquisition date. The acquisition was not considered material to the Company’s financial statements; therefore pro forma financial data and related disclosures are not included. |
FAIR VALUE |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE | FAIR VALUE The fair value framework as detailed by FASB ASC Topic 820, “Fair Value Measurement” requires the categorization of assets and liabilities recorded at fair value into a three-level hierarchy based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. A brief description of each level follows. Level 1 — Valuation is based upon quoted prices (unadjusted) for identical instruments in active markets. Level 2 — Valuation is based upon quoted prices for identical or similar instruments in markets that are not active; quoted prices for similar instruments in active markets; or model-based valuation techniques for which all significant assumptions are observable or can be corroborated by observable market data. Level 3 — Valuation is measured through utilization of model-based techniques that rely on at least one significant assumption not observable in the market. Any necessary unobservable assumptions used reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of discounted cash flow models and similar techniques. Fair value estimates are based on existing financial instruments and, in accordance with GAAP, do not attempt to estimate the value of anticipated future business or the value of assets and liabilities that are not considered financial instruments. In addition, tax ramifications related to the recognition of unrealized gains and losses, such as those within the investment securities portfolio, can have a significant effect on estimated fair values and, in accordance with GAAP, have not been considered in the estimates. For these reasons, the aggregate fair value should not be considered an indication of the value of the Company. Following is a description of the valuation methodologies and key inputs used to measure assets and liabilities recorded at fair value, as well as a description of the methods and any significant assumptions used to estimate fair value disclosures for financial assets and liabilities not recorded at fair value in their entirety on a recurring basis. For assets and liabilities recorded at fair value, the description includes the level of the fair value hierarchy in which the assets or liabilities are classified. Transfers of assets or liabilities between levels of the fair value hierarchy are recognized at the beginning of the reporting period, when applicable. Cash and cash equivalents: Due to the short-term nature, the carrying amount of these assets approximates the estimated fair value. The Company classifies cash and due from banks as Level 1 and interest-bearing deposits with other banks and federal funds and other short-term investments as Level 2. Investment securities: Investment securities classified as available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available or the market is deemed to be inactive at the measurement date, fair values are measured utilizing independent valuation techniques of identical or similar investment securities. Third-party vendors compile prices from various sources and may apply such techniques as matrix pricing to determine the value of identical or similar investment securities. Management reviews the methodologies and assumptions used by the third-party pricing services and evaluates the values provided, principally by comparison with other available market quotes for similar instruments and/or analysis based on internal models using available third-party market data. Level 2 securities include obligations issued by U.S. government-sponsored enterprises, state and municipal obligations, mortgage-backed securities issued by both U.S. government-sponsored enterprises and non-agency enterprises, corporate debt securities, Small Business Administration Pools and privately issued commercial mortgage-backed securities that have active markets at the measurement date. The fair value of Level 2 securities was determined using quoted prices of securities with similar characteristics or pricing models based on observable market data inputs, primarily interest rates, spreads and prepayment information. Level 3 securities included an obligation of a political subdivision as of June 30, 2016 and December 31, 2015, representative of a security in less liquid markets requiring significant management assumptions when determining fair value. The fair value of this investment security represents less than one percent of the total available-for-sale securities at both June 30, 2016 and December 31, 2015. The fair value of the political subdivision obligation has been determined to be equal to the carrying cost since the securities were acquired. The issuer has continued to pay their obligation without fail and the Company has not received any information to question future payments. Since the purchase of this security, no credit related concerns have come to the Company’s attention, therefore no adjustment for credit loss assumptions were made. Investment securities classified as held-to-maturity are carried at amortized cost. Due to limited liquidity of these securities, held-to-maturity securities are classified as Level 3. The fair value of the held-to-maturity security is determined to be equal to the carrying value. No credit related concerns have come to the Company’s attention; therefore, no credit loss assumptions were made. Federal Home Loan Bank (“FHLB”) Stock: Restricted equity securities are not readily marketable and are recorded at cost and evaluated for impairment based on the ultimate recoverability of initial cost. No significant observable market data is available for these instruments. The Company considers the profitability and asset quality of the issuer, dividend payment history and recent redemption experience, when determining the ultimate recoverability of cost. The Company believes its investments in FHLB stock are ultimately recoverable at cost. Loans held for sale: Loans held for sale are carried at fair value based on the Company’s election of the fair value option. These loans currently consist of one-to-four family residential real estate loans originated for sale to qualified third parties. The fair value is determined based on quoted market rates and other market conditions considered relevant. The Company classifies loans held for sale as recurring Level 2. Loans measured at fair value: During the normal course of business, loans originated with the initial intention to sell but not ultimately sold, are transferred from held for sale to our portfolio of loans held for investment at fair value as the Company adopted the fair value option at origination. The fair value of these loans is estimated using discounted cash flows, taking into consideration current market interest rates, loan repricing characteristics and expected loan prepayment speeds, while also taking into consideration other significant unobservable inputs such as the payment history and credit quality characteristic of each individual loan and an illiquidity discount reflecting the relative illiquidity of the market. Due to the adjustments made relating to unobservable inputs, the Company classifies the loans transferred from loans held for sale as recurring Level 3. Loans: The Company does not record loans at fair value on a recurring basis other than those discussed in “Loans measured at fair value” above. However, periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements. Loans, outside the scope of ASC 310-30, are considered impaired when, based on current information and events; it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreements. Impaired loans, which include all nonaccrual loans and troubled debt restructurings, are disclosed as nonrecurring fair value measurements when an allowance is established based on the fair value of the underlying collateral. Appraisals for collateral-dependent impaired loans are prepared by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties). These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. The comparable sales approach evaluates the sales price of similar properties in the same market area. This approach is inherently subjective due to the wide range of comparable sale dates. The income approach considers net operating income generated by the property and the investor’s required return. This approach utilizes various inputs including lease rates and cap rates which are subject to judgment. Adjustments are routinely made in the appraisal process by the appraisers to account for differences between the comparable sales and income data available. These adjustments generally range from 0% to 40% depending on the property type, as well as various sales and property characteristics including but not limited to: date of sale, size and condition of facility, quality of construction and proximity to the subject property. Once received, management reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics to determine if additional downward adjustments should be made. Property values are typically adjusted when management is aware of circumstances, economic changes or other conditions, since the date of the appraisal that would impact the expected selling price. Such adjustments are usually significant and result in a nonrecurring Level 3 classification. Estimated fair values for loans accounted for under ASC 310-30 are based on a discounted cash flow methodology that considers factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Cash flows expected to be collected on these loans are estimated based upon the expected remaining life of the underlying loans, which includes the effects of estimated prepayments. The Company classifies the estimated fair value of loans accounted for under ASC 310-30 as Level 3. For loans excluded from ASC 310-30 accounting that are not individually evaluated for impairment, fair value is estimated using a discounted cash flow model. The cash flows take into consideration current portfolio interest rates and repricing characteristics as well as assumptions relating to prepayment speeds. The discount rates take into consideration the current market interest rate environment, a credit risk component based on the credit characteristics of each loan portfolio, and a liquidity premium reflecting the liquidity or illiquidity of the market. The Company classifies the estimated fair value of non-collateral dependent loans excluded from ASC 310-30 accounting as Level 3. Premises and equipment: Premises and equipment are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. As of June 30, 2016, there was no premises and equipment considered impaired. Impaired premises and equipment at December 31, 2015 was recorded at fair value based on a recent appraisal through a valuation allowance. The Company classifies impaired premises and equipment as nonrecurring Level 3. Other real estate owned and repossessed assets: Other real estate owned and repossessed assets represent property acquired by the Company as part of an acquisition, through the loan foreclosure or repossession process, or any other resolution activity that results in partial or total satisfaction of problem loans, or by closing of branches or operating facilities. Properties are initially recorded at fair value, less estimated costs to sell, establishing a new cost basis. Subsequently, the assets are valued at the lower of cost or fair value, less estimated costs to sell, based on periodic valuations performed. Fair value is based upon independent market prices, appraised value or management’s estimate of the value, using a single valuation approach or a combination of approaches including comparable sales, the income approach and existing offers. The comparable sales approach evaluates the sales price of similar properties in the same market area. This approach is inherently subjective due to the wide range of comparable sale dates. The income approach considers net operating income generated by the property and the investor’s required return. This approach utilizes various inputs including lease rates and cap rates which are subject to judgment. Adjustments are routinely made in the appraisal process by the appraisers to account for differences between the comparable sales and income data available. These adjustments generally range from 0% to 40% depending on the property type, as well as various sales and property characteristics including but not limited to: date of sale, size and condition of facility, quality of construction and proximity to the subject property. Adjustments are typically significant and result in a Level 3 classification. Loan servicing rights: Loan servicing rights are accounted for under the fair value measurement method based on accounting election. A third party valuation model is used to determine the fair value at the end of each reporting period utilizing a discounted cash flow analysis using interest rates and prepayment speed assumptions currently quoted for comparable instruments and a discount rate determined by management. Changes in fair value of loan servicing rights are recorded in “Mortgage banking and other loan fees”. Because of the nature of the valuation inputs, the company classifies loan servicing rights as Level 3. Refer to Note 9, “Loan Servicing Rights”, for assumptions included in the valuation of loan servicing rights. Company-owned life insurance and deferred compensation plan liabilities: Life insurance policies are held on certain officers, both for investment purposes and for the Company’s deferred compensation plan. The carrying value of these policies approximates fair value as it is based on the cash surrender value adjusted for other charges or amounts due that are probable at settlement. As such, the Company classifies the estimated fair value of Company-owned life insurance as Level 2. Deferred compensation plan liabilities represent the fair value of the obligation to the employee, which corresponds to the fair value of the invested assets. Deferred compensation plan liabilities are recorded with “other liabilities” and are classified by the Company as Level 2. Derivative instruments: The Company enters into interest rate lock commitments with prospective borrowers to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors, which are carried at fair value on a recurring basis. The fair value of these commitments is based on the fair value of related mortgage loans determined using observable market data. Interest rate lock commitments are adjusted for expectations of exercise and funding. This adjustment is not considered to be a material input. The Company classifies interest rate lock commitments and forward contracts related to mortgage loans to be delivered for sale as recurring Level 2. Derivative instruments held or issued for risk management or customer-initiated activities are traded in over-the counter markets where quoted market prices are not readily available. Fair value for over-the-counter derivative instruments is measured on a recurring basis using third party models that use primarily market observable inputs, such as yield curves and option volatilities. The fair value for these derivatives may include a credit valuation adjustment that is determined by applying a credit spread for the counterparty or the Company, as appropriate, to the total expected exposure of the derivative after considering collateral and other master netting arrangements. These adjustments, which are considered Level 3 inputs, are based on estimates of current credit spreads to evaluate the likelihood of default. The Company assesses the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and at both June 30, 2016 and December 31, 2015 it was determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. As a result, the company classifies its risk management interest rate swaps designated as cash flow hedges and customer-initiated derivatives valuations in Level 2 of the fair value hierarchy. Accrued interest receivable and payable: Due to their short term nature, the carrying amount of these instruments approximates the estimated fair value; therefore, the Company classifies the estimated fair value of accrued interest receivable and payable as Level 2. Deposits: The estimated fair value of demand deposits (e.g., noninterest and interest-bearing demand, savings, other brokered funds and certain types of money market accounts) is, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for certificates of deposit are based on the discounted value of contractual cash flows at current interest rates. The estimated fair value of deposits does not take into account the value of the Company’s long-term relationships with depositors, commonly known as core deposit intangibles, which are not considered financial instruments. The Company classifies the estimated fair value of deposits as Level 2. Short-term borrowings: Short-term borrowings represent federal funds purchased, a senior unsecured line of credit and certain short-term FHLB advances. Due to their short term nature, the carrying amount of these instruments approximates the estimated fair value. The Company classifies the estimated fair value of short-term borrowings as Level 2. Long-term debt: Long-term debt includes securities sold under agreements to repurchase, FHLB advances and subordinated notes related to trust preferred securities. The estimated fair value is based on current rates for similar financing or market quotes to settle those liabilities. The Company classifies the estimated fair value of long-term debt as Level 2. The following tables present the recorded amount of assets and liabilities measured at fair value, including financial assets and liabilities for which the Company has elected the fair value option, on a recurring basis:
There were no transfers between levels within the fair value hierarchy during the six months ended June 30, 2016. During the six months ended June 30, 2015, a privately issued subordinated debt security (included within “Corporate debt securities”) was transferred from Level 3 in the fair value hierarchy to Level 2 due to the market for this security becoming active during the period. The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis.
The aggregate fair value, contractual balance (including accrued interest), and gain or loss position for loans held for investment measured and recorded at fair value was as follows:
There were no gains (losses) included in the aggregate fair value above that were associated with instrument specific credit risk. The aggregate fair value and contractual principal balance of loans held for investment measured and recorded at fair value that were 90 days or more past due as of June 30, 2016 was $151 thousand and $206 thousand, respectively, all of which were on nonaccrual status. The aggregate fair value and contractual principal balance of loans held for investment measured and recorded at fair value that were 90 days or more past due as of December 31, 2015 was $275 thousand and $364 thousand, respectively, all of which were on nonaccrual status. Interest income is recorded based on the contractual terms of the loans in accordance with the Company’s policy on loans held for investment and is recorded in “Interest and fees on loans” in the Consolidated Statements of Income. For the three months ended June 30, 2016 and 2015, there was $220 thousand and $208 thousand, respectively, and $442 thousand and $413 thousand for the six months ended June 30, 2016 and 2015, respectively, of interest income earned on loans transferred from loans held for sale to loans held for investment. The total amount of gains (losses) from changes in fair value of loans held for investment measured at fair value in the Consolidated Statements of Income were as follows:
The Company has elected the fair value option for loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loans in accordance with the Company's policy on loans held for investment in “Interest and fees on loans” in the Consolidated Statements of Income. There were no loans held for sale that were 90 days past due and on accrual status as of June 30, 2016. The aggregated fair value of loans held for sale that were 90 days past due and on nonaccrual status as of December 31, 2015 was $7 thousand. The aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held for sale carried at fair value was as follows:
The total amount of gains (losses) from loans held for sale included in the Consolidated Statements of Income were as follows:
(1) Included in "Interest and fees on loans" in the Consolidated Statements of Income. (2) Included in "Net gain on sales of loans" in the Consolidated Statements of Income. Certain financial assets and liabilities are measured at fair value on a nonrecurring basis. These include assets that are recorded at the lower of cost or fair value that were recognized at fair value below cost at the end of the period. The following table presents the recorded amount of assets and liabilities measured at fair value on a non-recurring basis:
(4) There was no impairment charges on premises and equipment during the three and six months ended June 30, 2016. The Company charged $1.1 million through other noninterest expense during both the three and six months ended June 30, 2015 to reduce the value of premises and equipment deemed impaired during the period. The Company typically holds the majority of its financial instruments until maturity and thus does not expect to realize many of the estimated fair value amounts disclosed. The disclosures also do not include estimated fair value amounts for items that are not defined as financial instruments, but which have significant value. These include such items as core deposit intangibles, the future earnings potential of significant customer relationships and the value of fee generating businesses. The Company believes the imprecision of an estimate could be significant. The following tables present the carrying amount and estimated fair values of financial instruments not recorded at fair value in their entirety on a recurring basis on the Company’s Consolidated Balance Sheets.
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SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SECURITIES | SECURITIES The following summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses.
Proceeds from sales of securities and the associated gains and losses recorded in earnings are listed below:
The amortized cost and fair value of debt securities by contractual maturity at June 30, 2016 are shown below. Contractual maturity is utilized for U.S. Government sponsored agency obligations, obligations of state and political subdivisions and corporate debt securities. Securities with multiple maturity dates are classified in the period of final maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
Securities with a carrying value of $430.8 million and $390.5 million were pledged at June 30, 2016 and December 31, 2015, respectively, to secure borrowings and deposits. At June 30, 2016 and December 31, 2015, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity. A summary of the Company’s investment securities available-for-sale in an unrealized loss position is as follows:
As of June 30, 2016, the Company’s security portfolio consisted of 335 securities, 40 of which were in an unrealized loss position. The unrealized losses for these securities resulted primarily from changes in benchmark U.S. Treasury interest rates and/or widening of fair value credit and liquidity spreads versus benchmark U.S. Treasury interest rates. The Company expects full collection of the carrying amount of these securities and does not intend to sell the securities in an unrealized loss position nor does it believe it will be required to sell securities in an unrealized loss position before the value is recovered. The Company does not consider these securities to be other-than-temporarily impaired at June 30, 2016. The unrealized losses are spread across asset classes, primarily in those securities carrying fixed interest rates. At June 30, 2016, the combination of these security asset class holdings in an unrealized loss position had an estimated fair value of $62.1 million with gross unrealized losses of $770 thousand. Unrealized losses in these security holdings were mainly impacted by increases in benchmark U.S. Treasury rates and, to a lesser extent, widened liquidity spreads since their respective acquisition dates. |
LOANS |
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Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS | LOANS Commercial real estate loans consist of term loans secured by a mortgage lien on the real property such as apartment buildings, office and industrial buildings, retail shopping centers, and farmland. The credit underwriting for both owner-occupied and non-owner occupied commercial real estate loans includes detailed market analysis, historical and projected cash flow analysis, appropriate equity margins, assessment of lessees and lessors, type of real estate and other analysis. Risk of loss is managed by adherence to standard loan policies that establish certain levels of performance prior to the extension of a loan to the borrower. Geographic diversification, as well as diversification across industries, are other means by which the risk of loss is managed by the Company. Residential real estate loans represent loans to consumers for the purchase or refinance of a residence. These loans are generally financed over a 15- to 30-year term, and in most cases, are extended to borrowers to finance their primary residence with both fixed-rate and adjustable-rate terms. The majority of these loans originated by the Company conform to secondary market underwriting standards and are sold within a short timeframe to unaffiliated third parties. As such, the credit underwriting standards adhere to the underwriting standards and documentation requirements established by the respective investor or correspondent bank. Residential real estate loans also include home equity loans and lines of credit that are secured by a first or second lien on the borrower’s residence. Home equity lines of credit consist mainly of revolving lines of credit secured by residential real estate. Home equity lines of credit are generally governed by the same lending policies and subject to the same credit risk as described previously for residential real estate loans. Commercial and industrial loans include financing for commercial purposes in various lines of business, including manufacturing, service industry, professional service areas and agricultural. The Company works with businesses to meet their short-term working capital needs while also providing long-term financing for their business plans. Credit risk is managed through standardized loan policies, established and authorized credit limits, centralized portfolio management and the diversification of market area and industries. The overall strength of the borrower is evaluated through the credit underwriting process and includes a variety of analytical activities including the review of historical and projected cash flows, historical financial performance, financial strength of the principals and guarantors, and collateral values, where applicable. Commercial and industrial loans are generally secured with the assets of the company and/or the personal guarantee of the business owners. Real estate construction loans are term loans to individuals, companies or developers used for the construction of a commercial or residential property for which repayment will be generated by the sale or permanent financing of the property. Generally, these loans are for construction projects that have been either pre-sold, pre-leased, or have secured permanent financing, as well as loans to real estate companies with significant equity invested in the project. Consumer loans include loans made to individuals not secured by real estate, including loans secured by automobiles or watercraft, and personal unsecured loans. Risk elements in the consumer loan portfolio are primarily focused on the borrower’s cash flow and credit history, key indicators of the ability to repay and borrower credit scores. A certain level of security is provided through liens on automobile or watercraft titles, where applicable. Economic conditions that affect consumers in the Company’s markets have a direct impact on the credit quality of these loans. Higher levels of unemployment, lower levels of income growth and weaker economic growth are factors that may adversely impact consumer loan credit quality. Loans at June 30, 2016 and December 31, 2015 were as follows:
We recorded our acquired loans at fair value as of the acquisition date, which includes loans we acquired in our acquisitions of CF Bancorp, First Banking Center, Peoples State Bank, Community Central Bank, First Place Bank, Talmer West Bank and First Huron. At the acquisition date, where a loan exhibits evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all principal and interest payments in accordance with the terms of the loan agreement, which we refer to as purchased credit impaired loans, the Company accounts for these loans under ASC 310-30 and recognizes the expected shortfall of expected future cash flows, as compared to the contractual amount due, as a nonaccretable discount. Any excess of the net present value of expected future cash flows over the acquisition date fair value is recognized as the accretable discount, or accretable yield. We recognize accretion of the accretable discount as interest income over the expected remaining life of the purchased credit impaired loan. Acquired loans that are not purchased credit impaired loans are accounted for under ASC 310-20 and fair value discounts/premiums are accreted/amortized into interest income over the remaining term of the loan as an adjustment to the related loans yield. Changes in the carrying amount of accretable discount for purchased loans accounted for under ASC 310-30 were as follows:
For purchased credit impaired loans accounted for under ASC 310-30, the Company remeasures expected cash flows on a quarterly basis. For loans where the remeasurement process results in a decline in expected cash flows, impairment is recorded. Alternatively, when a loan’s remeasurement results in an increase in expected cash flows, the effective yield of the related loan is increased through an addition to the accretable discount. The total identified improvement in the cash flow expectations resulting in yield adjustments on a prospective basis during the three months ended June 30, 2016 and 2015 for purchased credit impaired loans was $9.6 million and $21.6 million, respectively. During the six months ended June 30, 2016 and 2015, the total identified improvement in cash flow expectations was $25.4 million and $51.1 million, respectively. The Company also identified declines in the cash flow expectations of certain purchased credit impaired loans. A decline in the present value of current expected cash flows compared to the previously estimated expected cash flows, due in any part to change in credit, is referred to as credit impairment and recorded as provision for loan losses during the period. Declines in the present value of expected cash flows only from the expected timing of such cash flows is referred to as timing impairment and recognized prospectively as a decrease in the yield on the loan. Below is the composition of the recorded investment for purchased credit impaired loans accounted for under ASC 310-30 at June 30, 2016 and December 31, 2015.
Nonperforming Assets and Past Due Loans Nonperforming assets consist of loans for which the accrual of interest has been discontinued, other real estate owned acquired through acquisitions, other real estate owned obtained through foreclosure and other repossessed assets. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Loans outside of those accounted for under ASC 310-30 are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful. The accrual of interest income is discontinued when a loan is placed in nonaccrual status and any payments received reduce the carrying value of the loan. A loan may be placed back on accrual status if all contractual payments have been received and collection of future principal and interest payments are no longer doubtful. Purchased credit impaired loans accounted for under ASC 310-30 are classified as performing, even though they may be contractually past due, as any nonpayment of contractual principal or interest is considered in the quarterly re-estimation of expected cash flows and is included in the resulting recognition of current period provision for loan losses or future yield adjustments. Information as to nonperforming assets was as follows:
Loan delinquency, excluding loans accounted for under ASC 310-30 was as follows:
Impaired Loans A loan is impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans included nonperforming loans (including nonperforming troubled debt restructurings (TDRs) and performing TDRs. Impaired loans are accounted for at the lower of the present value of expected cash flows or the estimated fair value of the collateral. When the present value of expected cash flows or the fair value of the collateral of an impaired loan not accounted for under ASC 310-30 is less than the amount of unpaid principal outstanding on the loan, the recorded principal balance of the loan is reduced to its carrying value through either a specific allowance for loan loss or a partial charge-off of the loan balance. Information as to total impaired loans is as follows:
Troubled Debt Restructurings (TDRs) The Company assesses all loan modifications to determine whether a modification constitutes a TDR. For loans excluded from ASC 310-30 accounting, a modification is considered a TDR when a borrower is experiencing financial difficulties and the Company grants a concession to the borrower. For purchased credit impaired loans accounted for individually under ASC 310-30, a modification is considered a TDR when a borrower is experiencing financial difficulties and the effective yield after the modification is less than the effective yield at the time the loan was acquired in association with consideration of qualitative factors included within ASC 310-40, “Receivables — Troubled Debt Restructurings by Creditors” (“ASC 310-40”). All TDRs are considered impaired loans. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of charge off and/or allowance for loan losses. As of June 30, 2016, there were $13.7 million of nonperforming TDRs and $31.5 million of performing TDRs included in impaired loans. As of December 31, 2015, there were $14.5 million of nonperforming TDRs and $25.2 million of performing TDRs included in impaired loans. All TDRs are considered impaired loans in the calendar year of their restructuring. In subsequent years, a restructured obligation modified at a market rate and compliant with its modified terms for a minimum period of six months is no longer reported as a TDR. A loan that has been modified at a rate other than market will return to performing status if it satisfies the six month performance requirement; however, it will continue to be reported as a TDR and will be considered impaired. If a TDR is subsequently restructured under current market terms, no cumulative concession has been granted to the borrower and the borrower is not experiencing financial difficulties, which is documented by a current credit evaluation, the loan is no longer required to be reported as a TDR. The following tables present the recorded investment of loans modified in TDRs during the three and six months ended June 30, 2016 and 2015 by type of concession granted. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession.
When a modification qualifies as a TDR and the loan was initially a purchased credit impaired loan individually accounted for under ASC 310-30, the loan is required to be moved from ASC 310-30 accounting and accounted for under ASC 310-40. In order to accomplish the transfer of the accounting for the TDR from ASC 310-30 to ASC 310-40, the loan is essentially retained in the ASC 310-30 accounting model and subject to the quarterly cash flow re-estimation process. Similar to loans accounted for under ASC 310-30, deterioration in expected cash flows result in the recognition of allowance for loan losses. However, unlike loans accounted for under ASC 310-30, improvements in estimated cash flows on these loans result only in recapturing previously recognized allowance for loan losses and the yield remains at the last yield recognized under ASC 310-30. On an ongoing basis, the Company monitors the performance of TDRs to their modified terms. The following table presents the number of loans modified in TDRs during the previous 12 months for which there was payment default during the three and six months ended June 30, 2016 and 2015, including the recorded investment as of June 30, 2016 and 2015. A payment on a TDR is considered to be in default once it is greater than 30 days past due.
At June 30, 2016, commitments to lend additional funds to borrowers whose terms have been modified in TDRs totaled $172 thousand. The terms of certain other loans that were modified during the three months ended June 30, 2016 and 2015 that did not meet the definition of a TDR generally involved a modification of the terms of a loan to borrowers who were not deemed to be experiencing financial difficulties or a loan accounted for under ASC 310-30 that did not result in a lower effective yield than at the date of acquisition after the modification in association with consideration of qualitative factors included within ASC 310-40. The evaluation of whether or not a borrower is deemed to be experiencing financial difficulty is completed during loan committee meetings at the time of the loan approval. Credit Quality Indicators Credit risk monitoring and management is a continuous process to manage the quality of the loan portfolio. The Company categorizes commercial and industrial, commercial real estate and real estate construction loans into risk categories based on relevant information about the ability of borrowers to service their debt including, current financial information, historical payment experience, credit documentation and current economic trends, among other factors. The risk rating system is used as a tool to analyze and monitor loan portfolio quality. Risk ratings meeting an internally specified exposure threshold are updated annually, or more frequently upon the occurrence of a circumstance that affects the credit risk of the loan. The following describes each risk category: Pass: Includes all loans without weaknesses or potential weaknesses identified in the categories of special mention, substandard or doubtful. Special Mention: Loans with potential credit weakness or credit deficiency, which, if not corrected, pose an unwarranted financial risk that could weaken the loan by adversely impacting the future repayment ability of the borrower. Substandard: Loans with a well-defined weakness, or weaknesses, such as loans to borrowers who may be experiencing losses from operations or inadequate liquidity of a degree and duration that jeopardizes the orderly repayment of the loan. Substandard loans also are distinguished by the distinct possibility of loss in the future if these weaknesses are not corrected. Doubtful: Loans with all the characteristics of a loan classified as Substandard, with the added characteristic that credit weaknesses make collection in full highly questionable and improbable. Commercial real estate, commercial and industrial and real estate construction loans by credit risk category were as follows:
For residential real estate loans and consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity. Residential real estate loans and consumer loans secured by a residence where the debt has been discharged but the borrower continues to make payments are considered nonperforming. The following table presents residential real estate and consumer loans by credit quality:
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ALLOWANCE FOR LOAN LOSSES |
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Loans and Leases Receivable, Allowance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES The allowance for loan losses represents management’s assessment of probable, incurred credit losses in the loan portfolio. The allowance for loan losses consists of specific allowances, based on individual evaluation of certain loans, and allowances for homogeneous pools of loans with similar risk characteristics. Management’s evaluation in establishing the adequacy of the allowance includes evaluation of actual past loan loss experience, probable incurred losses in the portfolio, adverse situations that may affect a specific borrower’s ability to repay (including the timing of future payments), the estimated value of any underlying collateral, composition of the loan portfolio, economic conditions, and other pertinent factors, such as periodic internal and external evaluations of delinquent, nonaccrual, and classified loans. The evaluation is inherently subjective as it requires utilizing material estimates. The evaluation of these factors is the responsibility of certain senior officers from the credit administration, finance, and lending areas. The Company established an allowance for loan losses associated with purchased credit impaired loans (accounted for under ASC 310-30) based on credit deterioration subsequent to the acquisition date. The Company re-estimates cash flows expected to be collected for purchased credit impaired loans on a quarterly basis, with any decline in expected cash flows recorded as provision for loan losses on a discounted basis during the period. For any increases in cash flows expected to be collected, the Company first reverses any previously recorded allowance for loan loss, then adjusts the amount of accretable yield recognized on a prospective basis over the loan’s remaining life. For loans not accounted for under ASC 310-30, the Company individually assesses for impairment all nonaccrual loans and TDRs. Information as to impaired loans individually evaluated for impairment is as follows:
Changes in the allowance for loan losses and the allocation of the allowance for loans were as follows: Loans accounted for under ASC 310-30
(1) Primarily due to loans restructured that qualify as TDRs. Loans excluded from ASC 310-30 accounting
(1) Primarily due to loans restructured that qualify as TDRs. Total loans
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OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS |
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Other Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS | OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS Changes in other real estate owned and repossessed assets were as follows:
At June 30, 2016 and December 31, 2015, the Company had $465 thousand and $951 thousand, respectively, of other real estate owned and repossessed assets as a result of obtaining physical possession in accordance with ASU 2014-04. In addition, there are $6.9 million of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process, as of June 30, 2016. Activity in the valuation allowance for other real estate owned and repossessed assets during the three and six months ended June 30, 2016 and 2015 is summarized below.
Income and expenses related to other real estate owned and repossessed assets, recorded as a component of “Other expense” in the Consolidated Statements of Income, were as follows:
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INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS | INTANGIBLE ASSETS Core Deposit Intangibles The Company recorded core deposit intangibles (CDIs) associated with each of its acquisitions. CDIs are amortized on an accelerated basis over their estimated useful lives and have an estimated remaining weighted-average useful life of 6.1 years as of June 30, 2016. The table below presents the Company’s net carrying amount of CDIs.
Amortization expense recognized on CDIs was $603 thousand and $665 thousand for the three months ended June 30, 2016 and 2015, respectively, and $1.2 million and $1.3 million for the six months ended June 30, 2016 and 2015, respectively, included as a component of “Other expense” in the Consolidated Statements of Income. Goodwill The Company recorded goodwill in the amount of $3.5 million associated with the acquisition of First Huron completed on February 6, 2015. Goodwill is deemed to have an indefinite life and is not amortized but instead is subject to an annual review for impairment. The Company concluded that there was no impairment in the review completed during the year ended 2015. The next annual review for impairment will be completed in the fourth quarter of 2016. |
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LOAN SERVICING RIGHTS | LOAN SERVICING RIGHTS Loan servicing rights are created as a result of the Company’s mortgage banking origination activities, the purchase of mortgage servicing rights and the origination and purchase of commercial real estate servicing rights. Loans serviced for others are not reported as assets in the Consolidated Balance Sheets. The following table represents the activity for loan servicing rights and the related fair value changes.
Expected and actual loan prepayment speeds are the most significant factors driving the fair value of loan servicing rights. The following table presents assumptions utilized in determining the fair value of loan servicing rights as of June 30, 2016 and December 31, 2015.
The Company realized total loan servicing fee income of $2.7 million and $2.5 million for the three months ended June 30, 2016 and 2015, respectively, and $5.4 million and $5.1 million for the six months ended June 30, 2016 and 2015, respectively, recorded as a component of “Mortgage banking and other loan fees” in the Consolidated Statements of Income. |
DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING | DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING In the normal course of business, the Company enters into various transactions involving derivative instruments to manage exposure to fluctuations in interest rates and to meet the financing needs of customers (customer-initiated derivatives). These financial instruments involve, to varying degrees, elements of market and credit risk. Market and credit risk are included in the determination of fair value. Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. It is the Company’s practice to enter into forward commitments for the future delivery of mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. The Company enters into interest rate derivatives to provide a service to certain qualifying customers to help facilitate their respective risk management strategies, customer-initiated derivatives, and, therefore, are not used for interest rate risk management purposes. The Company generally takes offsetting positions with dealer counterparts to mitigate the inherent risk. Income primarily results from the spread between the customer derivative and the offsetting dealer positions. The Company additionally utilizes interest rate swaps designated as cash flow hedges for risk management purposes to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. These interest rate swaps designated as cash flow hedges are used to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to certain variable rate borrowings and/or deposits. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative instrument with the changes in cash flows of the designated hedged transactions. The interest rate swaps designated as cash flow hedges were determined to be fully effective during all periods presented. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedge no longer be considered effective. The Company expects the hedges to remain fully effective and does not expect any amounts to be reclassified from accumulated other comprehensive income due to ineffectiveness during the remaining terms of the swaps. The following table presents the notional amount and fair value of the Company’s derivative instruments held or issued for risk management purposes or in connection with customer-initiated and mortgage banking activities.
In the normal course of business, the Company may decide to settle a forward contract rather than fulfill the contract. Cash received or paid in this settlement manner is included in “Net gain on sales of loans” in the Consolidated Statements of Income and is considered a cost of executing a forward contract. The following table presents the net gains (losses) related to derivative instruments reflecting the changes in fair value.
The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income relating to interest rate swaps designated as cash flow hedges for the three and six months ended June 30, 2016 and 2015.
At June 30, 2016, the Company expected $569 thousand of unrealized losses to be reclassified as an increase to interest expense during the following 12 months. Methods and assumptions used by the Company in estimating the fair value of its forward contracts, interest rate lock commitments, customer-initiated derivatives and interest rate swaps designated as cash flow hedges are discussed in Note 3, “Fair Value”. Balance Sheet Offsetting Certain financial instruments, including derivatives (interest rate swaps designated as cash flow hedges and customer-initiated derivatives), may be eligible for offset in the Consolidated Balance Sheet and/or subject to master netting arrangements or similar agreements. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The tables below present information about the Company’s financial instruments that are eligible for offset.
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COMMITMENTS, CONTINGENCIES AND GUARANTEES |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS, CONTINGENCIES AND GUARANTEES | COMMITMENTS, CONTINGENCIES AND GUARANTEES Commitments In the normal course of business, the Company offers a variety of financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include outstanding commitments to extend credit, credit lines, commercial letters of credit and standby letters of credit. The Company’s exposure to credit loss, in the event of nonperformance by the counterparty to the financial instrument, is represented by the contractual amounts of those instruments. The credit policies used in making commitments and conditional obligations are the same as those used for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer provided there is no violation of any condition established in the commitment. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on an individual basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. The collateral held varies, but may include securities, real estate, accounts receivable, inventory, plant, or equipment. Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are included in commitments to extend credit. These lines of credit are generally uncollateralized, usually do not contain a specified maturity date and may be drawn upon only to the total extent to which the Company is committed. Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The Company’s portfolio of standby letters of credit consists primarily of performance assurances made on behalf of customers who have a contractual commitment to produce or deliver goods or services. The risk to the Company arises from its obligation to make payment in the event of the customers’ contractual default to produce the contracted good or service to a third party. The allowance for credit losses on lending-related commitments included $673 thousand and $622 thousand at June 30, 2016 and December 31, 2015, respectively, for probable credit losses inherent in the Company’s unused commitments and was recorded in “Other liabilities” in the Consolidated Balance Sheets. A summary of the contractual amounts of the Company’s exposure to off-balance sheet risk is as follows:
Contingencies and Guarantees The Company has originated and sold certain loans for which the buyer has limited recourse to us in the event the loans do not perform as specified in the agreements. These loans had an outstanding balance of $21.7 million and $25.2 million at June 30, 2016 and December 31, 2015, respectively. The maximum potential amount of undiscounted future payments that we could be required to make in the event of nonperformance by the borrower totaled $20.5 million and $19.4 million at June 30, 2016 and December 31, 2015, respectively. In the event of nonperformance, we have rights to the underlying collateral securing the loans. As of June 30, 2016 and December 31, 2015, we had recorded a liability of $100 thousand and $125 thousand, respectively, in connection with the recourse agreements, recorded in “Other liabilities” in the Consolidated Balance Sheets. We issue standby letters of credit for commercial customers to third parties to guarantee the performance of those customers to the third parties. If the customer fails to perform, we perform in their place and record the funds advanced as an interest-bearing loan. These letters of credit are underwritten using the same policies and criteria applied to commercial loans. Therefore, they represent the same risk to us as a loan to that commercial loan customer. At June 30, 2016 and December 31, 2015, our standby letters of credit totaled $65.4 million and $66.1 million, respectively. Representations and Warranties In connection with our mortgage banking loan sales, we make certain representations and warranties that the loans meet certain criteria, such as collateral type and underwriting standards. We may be required to repurchase individual loans and/or indemnify the purchaser against losses if the loan fails to meet established criteria. At June 30, 2016 and December 31, 2015, our liability recorded in connection with these representations and warranties totaled $1.6 million and $1.3 million, respectively. Legal Proceedings The Company and certain of its subsidiaries are subject to various pending or threatened legal proceedings arising out of the normal course of business and pending shareholder litigation related to the merger with Chemical Financial Corporation that is publicly available and further discussed in Part II, Item 1. Legal Proceedings of this Quarterly Report on Form 10-Q. The Company assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that the Company will incur a loss and the amount of the loss can be reasonably estimated, the Company records a liability in its consolidated financial statements. While the ultimate liability with respect to these litigation matters and claims cannot be determined at this time, in the opinion of management, any liabilities arising from pending legal proceedings would not have a material adverse effect on the Company’s financial statements. |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | SHORT-TERM BORROWINGS AND LONG-TERM DEBT The following table presents the components of the Company’s short-term borrowings and long-term debt.
Selected financial information pertaining to the components of our short-term borrowings is as follows:
Securities sold under agreements to repurchase represent funds deposited with banks by retail customers (short-term borrowings). Securities sold under agreements to repurchase are typically delivered to the counterparty when they are wholesale borrowings with brokerage firms (long-term debt). At maturity, the securities underlying the agreements are returned to the banks. Securities sold under agreements to repurchase are additionally collateralized by residential mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government sponsored enterprises with a carrying value of $60.3 million at June 30, 2016 which are not covered by FDIC insurance. The Company's securities sold under agreements to repurchase do not qualify as sales for accounting purposes. The remaining contract maturity, excluding purchase accounting adjustments, of securities sold under agreement to repurchase, both long-term and short-term, is as follows:
Talmer Bank is a member of the FHLB, which provides short- and long-term funding collateralized by mortgage-related assets to its members. Each advance is payable at its maturity date, with a prepayment penalty for fixed-rate advances. At June 30, 2016, FHLB advances were collateralized by $2.0 billion of commercial and mortgage loans, with $1.3 billion in the form of a blanket lien arrangement and $763.7 million under specific lien arrangements. Based on this collateral, the Company is eligible to borrow up to an additional $141.0 million at June 30, 2016. |
INCOME TAXES |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Provision for income taxes is computed by applying an estimated annual effective tax rate, based on our forecast of annual income from continuing operations, and then adjusting for any additional tax effects required to be recorded discreetly in the quarter to which they relate. A reconciliation of expected income tax expense at the federal statutory rate to the Company’s provision for income taxes and effective tax rate follows.
During the six months ended June 30, 2016, the Company finalized a settlement with the Internal Revenue Service regarding First Place Financial Corp.'s deduction of bad debt expense incurred prior to the Company's acquisition of First Place Bank which resulted in a tax benefit of $4.3 million. Talmer Bank, as successor to First Place Bank, was granted court approval to act as substitute agent for the First Place Financial Corp. for the purposes of amending various returns, which ultimately favorably impacted the tax filings of Talmer Bank. |
STOCK-BASED COMPENSATION |
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company’s 2009 Equity Incentive Plan (the “Plan”), along with amendments made to the Plan, limits the number of shares issued or issuable to employees, directors and certain consultants at 9.8 million shares of common stock. As of June 30, 2016, 1.5 million shares were available to be awarded under the Plan. Stock Options Options are granted with an exercise price equal to or greater than the fair market price of the Company’s Class A common stock at the date of grant. The vesting and terms of option awards are determined by the Company’s Compensation Committee of the Board of Directors. For the six months ended June 30, 2016 and 2015, there were no stock options granted. Activity in the Plan during the six months ended June 30, 2016 is summarized below:
The total intrinsic value of stock options exercised was $14.2 million and $5.4 million for the six months ended June 30, 2016 and 2015, respectively. Total cash received from option exercises during the six months ended June 30, 2016 and 2015 was $1.8 million and $210 thousand, respectively, resulting in the issuance of 259 thousand shares and 35 thousand shares, respectively. During the six months ended June 30, 2016 and 2015, there were 518 thousand shares and 210 thousand shares, respectively, issued under the net-settlement option. The tax benefit realized from option exercises during the six months ended June 30, 2016 and 2015 was $4.1 million and $1.4 million, respectively. All of the Company’s stock options were fully vested prior to January 1, 2015 and there was no unrecognized compensation cost related to nonvested stock options granted under the Plan. Restricted Stock Awards Under the Plan, the Company can grant restricted stock awards that vest upon completion of future service requirements or specified performance criteria. The fair value of these awards is equal to the market price of the common stock at the date of grant. The Company recognizes stock-based compensation expense for these awards over the vesting period, using the straight-line method, based upon the number of shares of restricted stock ultimately expected to vest. Restricted stock awards granted to employees either vest in their entirety following a five-year service period or in one-third increments over a three-year service period. Restricted stock awards granted to directors vest over a one-year service period and additionally contain performance-based vesting conditions. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. If an individual awarded restricted stock awards terminates employment prior to the end of the vesting period, the unvested portion of the stock award is forfeited, with certain exceptions. The following table provides information regarding nonvested restricted stock awards:
The following table provides information regarding total expense for restricted stock awards:
(1) Included in "Salary and employee benefits" in the Consolidated Statements of Income. (2) Included in "Professional fees" in the Consolidation Statements of Income. As of June 30, 2016, the total compensation costs related to nonvested restricted stock that has not yet been recognized totaled $12.1 million and the weighted-average period over which these costs are expected to be recognized is 3.1 years. With respect to restricted stock awards with a five-year vesting term, in the event a change in control occurs, vesting of these restricted stock awards would be accelerated to the earlier of the one-year anniversary of the change in control event or the date the individual is terminated without cause by the Company or Talmer Bank (or any of their successors), or the date the individual terminates his or her employment for good reason, during the one-year period following the change in control. With respect to restricted stock awards with a three-year vesting term, vesting of these restricted stock awards would be accelerated if the individual was terminated by the Company or Talmer Bank (or any of their successors) without cause. |
REGULATORY CAPITAL MATTERS |
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Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REGULATORY CAPITAL MATTERS | REGULATORY CAPITAL MATTERS Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believes as of June 30, 2016, the Company and its subsidiary bank met all capital adequacy requirements to which they are subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. Effective January 1, 2015, the Company adopted the new Basel III regulatory capital framework as approved by federal banking agencies, which are subject to a multi-year phase-in period. The adoption of this new framework modified the calculation of the various capital ratios, added a new ratio, common equity tier 1, and revised the adequately and well capitalized thresholds. In addition, Basel III establishes a new capital conservation buffer of 2.5% of risk-weighted assets, which is phased-in over a four-year period beginning January 1, 2016. The capital conservation buffer for 2016 is 0.625%. We have elected to opt-out of including capital in accumulated other comprehensive income in common equity tier 1 capital. At June 30, 2016 and December 31, 2015, the most recent regulatory notifications categorized Talmer Bank and Trust as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. The following is a summary of actual and required capital amounts and ratios in accordance with current regulatory standards:
The Company’s principal source of funds for dividend payments is dividends received from Talmer Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Talmer Bank cannot declare or pay a cash dividend or dividend in kind unless it will have a surplus amounting to not less than 20% of its capital after payment of the dividend. In addition, Talmer Bank may pay dividends only out of net income then on hand, after deducting its losses and bad debts. These limitations can affect Talmer Bank’s ability to pay dividends. During the three and six months ended June 30, 2016 and for the three months ended June 30, 2015, no dividends were paid, while for the six months ended June 30, 2015, $15.0 million were paid to the Company. On July 11, 2016, a cash dividend on the Company’s Class A common stock of $0.05 per share was declared. The dividend was paid on July 29, 2016, to the Company’s Class A common shareholders of record as of July 22, 2016. |
PARENT COMPANY FINANCIAL STATEMENTS |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PARENT COMPANY FINANCIAL STATEMENTS | PARENT COMPANY FINANCIAL STATEMENTS Balance Sheets - Parent Company
Statements of Income and Comprehensive Income - Parent Company
Statements of Cash Flows - Parent Company
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EARNINGS PER COMMON SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participating rights in undistributed earnings. Common shares outstanding include common stock and vested restricted stock awards, when applicable. The factors used in the earnings per share computation follow:
For the effect of dilutive securities, the average stock valuation is $19.25 per share and $16.14 per share for the three months ended June 30, 2016 and 2015, respectively, and the average stock valuation is $18.10 per share and $15.12 per share for the six months ended June 30, 2016 and 2015, respectively. There were no outstanding antidilutive options or warrants during the three and six months ended June 30, 2016 and 2015. |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows:
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BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS (Policies) |
6 Months Ended |
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Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Adopted and Issued Accounting Standards | Recently Adopted and Issued Accounting Standards The following provides a description of recently adopted or newly issued not yet effective accounting standards that had or could have a material effect on the Company's financial statements. Adopted Accounting Pronouncements In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), which simplifies the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification on the statement of cash flows. ASU 2016-09 is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted for any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company has elected to early adopt ASU 2016-09 during the second quarter of 2016. Prior to adoption of ASU 2016-09, all excess tax benefits resulting from the exercise or settlement of share-based payment transactions were recognized in additional paid-in-capital (APIC) and accumulated in an APIC pool, while tax deficiencies were either offset against the APIC pool or recognized in the income statement if no APIC pool was available. The new guidance eliminates the APIC pool and all excess tax benefits and deficiencies are recognized as an income tax benefit or expense in the income statement prospectively. Accordingly, periods prior to January 1, 2016 have not been adjusted. During the three and six months ended June 30, 2016, $2.6 million and $4.1 million of excess tax benefits were recognized as income tax benefit, respectively. ASU 2016-09 amends existing guidance to allow forfeitures of share-based awards to be recognized as they occur. Previous guidance required that share-based compensation expense include an estimate of forfeitures. The Company has made a policy election to continue to estimate forfeitures. Pending Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU is intended to clarify and converge the revenue recognition principles under GAAP and International Financial Reporting Standards and to streamline revenue recognition requirements in addition to expanding required revenue recognition disclosures. In March 2016, the FASB issued ASU 2016-08, "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)", ("ASU 2016-08"), which further clarifies ASU 2014-09 by providing implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, "Identifying Performance Obligations and Licensing", ("ASU 2016-10"), which provides additional clarification of ASU 2014-09 by amending guidance related to the identification of performance obligations and licensing implementation. ASU 2016-08 and ASU 2016-10 do not change the core principal of ASU 2014-09, but are intended to improve the operations and understanding of principal versus agent considerations, performance obligation identification and licensing implementation. In May 2016, the FASB issued ASU 2016-12 "Narrow-Scope Improvements and Practical Expedients", ("ASU 2016-12"), which amends certain aspects of ASU 2014-09, which include collectibility, presentation of sales taxes and other taxes collected from customers, noncash consideration and transition technical corrections. ASU 2016-12 completes the FASB deliberations of clarifications to ASU 2014-09 that have been conducted over the last year. In August 2015, the FASB issued ASU 2015-14, "Deferral of the Effective Date" ("ASU 2015-14"), which provides a one year deferral to the effective date, therefore, ASU 2014-09 is effective for public companies for annual periods, and interim periods within those annual periods, beginning on or after December 15, 2017. As such, the Company will adopt ASU 2014-09 as of January 1, 2018. Under the provision, the Company will have the option to adopt the guidance using either a full retrospective method or a modified transition approach. The Company is currently evaluating the provisions of ASU 2014-09. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which amends the accounting guidance related to the classification and measurement of financial instruments. While ASU 2016-01 retains many current requirements, it revises the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. ASU 2016-01 requires entities to carry investments in equity securities at fair value through net income, with exceptions for investments that qualify for the equity method of accounting, investments resulting in investee consolidation, or investments in which the practicability exception to fair value measurement has been elected. The ASU also provides a new requirement to separately present in other comprehensive income the fair value change of instrument-specific credit risk, with exceptions to derivative liabilities which will continue to be presented in net income. ASU 2016-01 is effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. As such, the Company will adopt ASU 2016-01 as of January 1, 2018. Under the provision, the Company will be required to make a cumulative-effect adjustment to retained earnings as of the beginning of the year in which the guidance is effective. Exceptions exist for equity securities without readily determinable fair values and the use of the exit price to measure fair value for disclosure purposes, which will both be applied prospectively as of the date of adoption. The Company is currently evaluating the provisions of ASU 2016-01. In February 2016, the FASB issued ASU 2016-02, "Leases" ("ASU 2016-02"), which improves the lease recognition process and increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing agreements. In addition, the ASU defines a lease and simplifies a number of the requirements provided in the current lease model. ASU 2016-02 is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. As such, the Company will adopt ASU 2016-02 as of January 1, 2019. Under the provision, the Company will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the provisions of ASU 2016-02. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"), which amends the accounting guidance on the impairment of financial instruments. ASU 2016-13 adds to GAAP a current expected credit loss (CECL) impairment model that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is believed by the FASB to result in more timely recognition of such losses. ASU 2016-13 is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. As such, the Company will adopt ASU 2016-13 as of January 1, 2020. Under the provision, the Company will be required to make a cumulative-effect adjustment to retained earnings as of the beginning of the year in which the guidance is effective related to most debt instruments. The Company is currently evaluating the provisions of ASU 2016-13. |
BUSINESS COMBINATIONS (Tables) - FHC |
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BUSINESS COMBINATIONS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the assets and liabilities purchased in acquisition recorded at fair value | The assets and liabilities associated with the acquisition of First Huron were recorded in the Consolidated Balance Sheets at estimated fair value as of the acquisition date as presented in the following table.
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Schedule of information regarding acquired loans accounted for under ASC 310-30 as well as excluded from ASC 310-30 accounting at acquisition date | Information regarding acquired loans accounted for under ASC 310-30 as well as those excluded from ASC 310-30 accounting at acquisition date is as follows:
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FAIR VALUE (Tables) |
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Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the recorded amount of assets and liabilities measured at fair value, including financial assets and liabilities for which the Company has elected the fair value option, on a recurring basis | The following tables present the recorded amount of assets and liabilities measured at fair value, including financial assets and liabilities for which the Company has elected the fair value option, on a recurring basis:
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Summary of the changes in Level 3 assets and liabilities measured at fair value on a recurring basis | The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis.
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Schedule of aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans position held for investment | The aggregate fair value, contractual balance (including accrued interest), and gain or loss position for loans held for investment measured and recorded at fair value was as follows:
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Schedule of aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held for sale | The aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held for sale carried at fair value was as follows:
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Schedule of the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis | The following table presents the recorded amount of assets and liabilities measured at fair value on a non-recurring basis:
(4) There was no impairment charges on premises and equipment during the three and six months ended June 30, 2016. The Company charged $1.1 million through other noninterest expense during both the three and six months ended June 30, 2015 to reduce the value of premises and equipment deemed impaired during the period. |
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Loans held for investment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of total amount of gains/(losses) from changes in fair value included in earnings | The total amount of gains (losses) from changes in fair value of loans held for investment measured at fair value in the Consolidated Statements of Income were as follows:
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Loans held for sale | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of total amount of gains/(losses) from changes in fair value included in earnings | The total amount of gains (losses) from loans held for sale included in the Consolidated Statements of Income were as follows:
(1) Included in "Interest and fees on loans" in the Consolidated Statements of Income. (2) Included in "Net gain on sales of loans" in the Consolidated Statements of Income. |
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Recurring basis | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the carrying amount and estimated fair values of financial instruments not recorded at fair value in their entirety on a recurring basis on the Company's consolidated balance sheets | The following tables present the carrying amount and estimated fair values of financial instruments not recorded at fair value in their entirety on a recurring basis on the Company’s Consolidated Balance Sheets.
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SECURITIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Company's investment securities available-for-sale |
The following summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses.
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Held-to-maturity securities |
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Schedule of proceeds from sales of securities and the associated gains and losses recorded in earnings | Proceeds from sales of securities and the associated gains and losses recorded in earnings are listed below:
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Schedule of amortized cost and fair value of debt securities by contractual maturity |
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Summary of the investment securities available-for-sale in an unrealized loss position | A summary of the Company’s investment securities available-for-sale in an unrealized loss position is as follows:
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LOANS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loans | Loans at June 30, 2016 and December 31, 2015 were as follows:
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Schedule of changes in the carrying amount of accretable discount for purchased loans | Changes in the carrying amount of accretable discount for purchased loans accounted for under ASC 310-30 were as follows:
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Summary of composition of the recorded investment for loans | Below is the composition of the recorded investment for purchased credit impaired loans accounted for under ASC 310-30 at June 30, 2016 and December 31, 2015.
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Schedule of information as to nonperforming assets | Information as to nonperforming assets was as follows:
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Schedule of information as to impaired loans both individually and collectively evaluated for impairment | Information as to total impaired loans is as follows:
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Schedule of the recorded investment of loans modified in TDRs during the period by type of concession granted | The following tables present the recorded investment of loans modified in TDRs during the three and six months ended June 30, 2016 and 2015 by type of concession granted. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession.
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Schedule of the number of loans modified in TDRs during the previous 12 months for which there was payment default during the period, including the recorded investment | The following table presents the number of loans modified in TDRs during the previous 12 months for which there was payment default during the three and six months ended June 30, 2016 and 2015, including the recorded investment as of June 30, 2016 and 2015. A payment on a TDR is considered to be in default once it is greater than 30 days past due.
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Commercial and industrial, commercial real estate and real estate construction | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loans by credit quality | Commercial real estate, commercial and industrial and real estate construction loans by credit risk category were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate and consumer loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loans by credit quality | The following table presents residential real estate and consumer loans by credit quality:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excluded from ASC 310-30 accounting | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loan delinquency | Loan delinquency, excluding loans accounted for under ASC 310-30 was as follows:
|
ALLOWANCE FOR LOAN LOSSES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Leases Receivable, Allowance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of information as to impaired loans individually evaluated for impairment | Information as to impaired loans individually evaluated for impairment is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule showing the average recorded investment and interest income recognized on loans |
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Schedule of changes in the allowance for loan losses and the allocation of the allowance for loans | Changes in the allowance for loan losses and the allocation of the allowance for loans were as follows: Loans accounted for under ASC 310-30
(1) Primarily due to loans restructured that qualify as TDRs. Loans excluded from ASC 310-30 accounting
(1) Primarily due to loans restructured that qualify as TDRs. Total loans
|
OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tabular disclosure of the changes in non-covered and covered other real estate on properties owned | Changes in other real estate owned and repossessed assets were as follows:
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Schedule of activity in the valuation allowance of repossessed assets | Activity in the valuation allowance for other real estate owned and repossessed assets during the three and six months ended June 30, 2016 and 2015 is summarized below.
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Schedule of income and expenses related to other real estate owned | Income and expenses related to other real estate owned and repossessed assets, recorded as a component of “Other expense” in the Consolidated Statements of Income, were as follows:
|
INTANGIBLE ASSETS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the Company's net carrying amount of CDIs | The table below presents the Company’s net carrying amount of CDIs.
|
LOAN SERVICING RIGHTS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOAN SERVICING RIGHTS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of activity for loan servicing rights and the related fair value changes | The following table represents the activity for loan servicing rights and the related fair value changes.
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Schedule of assumptions included in loan servicing rights | Expected and actual loan prepayment speeds are the most significant factors driving the fair value of loan servicing rights. The following table presents assumptions utilized in determining the fair value of loan servicing rights as of June 30, 2016 and December 31, 2015.
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DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule reflecting the amount and fair value of risk management derivatives and mortgage banking and customer initiated derivatives | The following table presents the notional amount and fair value of the Company’s derivative instruments held or issued for risk management purposes or in connection with customer-initiated and mortgage banking activities.
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Schedule reflecting the net gains (losses) relating to derivative instruments related to the changes in fair value | The following table presents the net gains (losses) related to derivative instruments reflecting the changes in fair value.
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Schedule of net gains (losses) recorded in other comprehensive income and consolidated statements of income related to the interest rate swaps | The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income relating to interest rate swaps designated as cash flow hedges for the three and six months ended June 30, 2016 and 2015.
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Schedule of the Company's financial instruments eligible for offset, offsetting assets | The tables below present information about the Company’s financial instruments that are eligible for offset.
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Schedule of the Company's financial instruments eligible for offset, offsetting liabilities | The tables below present information about the Company’s financial instruments that are eligible for offset.
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COMMITMENTS, CONTINGENCIES AND GUARANTEES (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the contractual amounts of the entity's exposure to off-balance sheet risk | A summary of the contractual amounts of the Company’s exposure to off-balance sheet risk is as follows:
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SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of short-term borrowings and long-term debt | The remaining contract maturity, excluding purchase accounting adjustments, of securities sold under agreement to repurchase, both long-term and short-term, is as follows:
The following table presents the components of the Company’s short-term borrowings and long-term debt.
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Schedule of selected financial information pertaining to the components of short-term borrowings | Selected financial information pertaining to the components of our short-term borrowings is as follows:
|
INCOME TAXES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of expected income tax expense (benefit) at the federal statutory rate to the Company’s provision for income taxes and effective tax rate | A reconciliation of expected income tax expense at the federal statutory rate to the Company’s provision for income taxes and effective tax rate follows.
|
STOCK-BASED COMPENSATION (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of activity in the Plan | Activity in the Plan during the six months ended June 30, 2016 is summarized below:
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Summary of changes in the Company's nonvested shares | The following table provides information regarding nonvested restricted stock awards:
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Information regarding total expense for restricted stock awards | The following table provides information regarding total expense for restricted stock awards:
(1) Included in "Salary and employee benefits" in the Consolidated Statements of Income. (2) Included in "Professional fees" in the Consolidation Statements of Income. |
REGULATORY CAPITAL MATTERS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of actual and required capital amounts and ratios | The following is a summary of actual and required capital amounts and ratios in accordance with current regulatory standards:
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PARENT COMPANY FINANCIAL STATEMENTS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheets | Balance Sheets - Parent Company
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Statements of Income | Statements of Income and Comprehensive Income - Parent Company
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Statements of Cash Flows | Statements of Cash Flows - Parent Company
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EARNINGS PER COMMON SHARE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of factors used in the basic and diluted earnings per share ("EPS") computation | The factors used in the earnings per share computation follow:
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in accumulated other comprehensive income (loss) by component | Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows:
|
BASIS OF PRESENTATION AND RECENTLY ADOPTED AND ISSUED ACCOUNTING STANDARDS (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 29, 2016 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Subsequent Event [Line Items] | |||||
Excess tax benefit from share-based compensation | $ 2,612 | $ 0 | $ 4,084 | $ 0 | |
Subsequent Event | Single branch office in Chicago | Held-for-sale | |||||
Subsequent Event [Line Items] | |||||
Deposits assumed in sale | $ 82,000 | ||||
Loans purchased in sale | 238,000 | ||||
Premium in sale transaction | $ 6,500 |
BUSINESS COMBINATIONS (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Feb. 06, 2015 |
Jun. 30, 2015 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Fair value of liabilities assumed: | |||||
Goodwill | $ 3,524,000 | $ 3,524,000 | |||
Accounted for under ASC 310-30 | |||||
Information regarding acquired loans | |||||
Contractual cash flows not expected to be collected (nonaccretable difference) | 222,208,000 | 226,927,000 | |||
Expected cash flows | 911,735,000 | 1,019,407,000 | |||
Interest component of expected cash flows (accretable yield) | 196,808,000 | $ 223,214,000 | |||
FHC | |||||
BUSINESS COMBINATIONS | |||||
Cash consideration | $ 13,395,000 | ||||
Subordinated notes assumed, retired immediately | 3,500,000 | ||||
Interest assumed from subordinated notes and retired | 1,400,000 | ||||
Interest assumed from Trust Preferred Securities and retired | 876,000 | ||||
Acquisition related expenses | $ 144,000 | $ 1,200,000 | |||
Net deferred tax assets at acquisition | 4,800,000 | ||||
Consideration paid: | |||||
Cash | 13,395,000 | ||||
Fair value of identifiable assets acquired: | |||||
Cash and cash equivalents | 14,205,000 | ||||
Investment securities | 34,022,000 | ||||
Federal Home Loan Bank stock | 874,000 | ||||
Loans | 162,265,000 | ||||
Premises and equipment | 2,077,000 | ||||
Company-owned life insurance | 4,719,000 | ||||
Other real estate owned and repossessed assets | 1,260,000 | ||||
Core deposit intangible | 2,410,000 | ||||
Other assets | 6,462,000 | ||||
Total identifiable assets acquired | 228,294,000 | ||||
Fair value of liabilities assumed: | |||||
Deposits | 201,453,000 | ||||
Long-term debt | 13,086,000 | ||||
Other liabilities | 3,884,000 | ||||
Total liabilities assumed | 218,423,000 | ||||
Fair value of net identifiable assets acquired | 9,871,000 | ||||
Goodwill | 3,524,000 | $ 3,500,000 | |||
Information regarding acquired loans | |||||
Fair value at acquisition | 162,265,000 | ||||
FHC | Maximum | |||||
BUSINESS COMBINATIONS | |||||
Net operating loss and tax credit carry forwards that can be used annually | 366,000 | ||||
FHC | Federal | |||||
BUSINESS COMBINATIONS | |||||
Net operating loss carryforwards | 1,700,000 | ||||
Alternative minimum tax credits | 303,000 | ||||
Valuation allowance | 0 | ||||
FHC | Accounted for under ASC 310-30 | |||||
Information regarding acquired loans | |||||
Contractual cash flows | 53,807,000 | ||||
Contractual cash flows not expected to be collected (nonaccretable difference) | 8,084,000 | ||||
Expected cash flows | 45,723,000 | ||||
Interest component of expected cash flows (accretable yield) | 5,268,000 | ||||
Fair value at acquisition | 40,455,000 | ||||
FHC | Excluded from ASC 310-30 accounting | |||||
Information regarding acquired loans | |||||
Unpaid principal balance | 124,538,000 | ||||
Fair value discount | (2,728,000) | ||||
Fair value at acquisition | $ 121,810,000 | ||||
FHC | Core deposit | |||||
Fair value of liabilities assumed: | |||||
Estimated life of asset (in years) | 10 years |
FAIR VALUE (Details) |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
General disclosure on fair value | |
Percentage of available for sale securities that are categorized as Level 3, less than | 1.00% |
Impairment of premises and equipment | $ 0 |
Minimum | |
General disclosure on fair value | |
Adjustments to loan values during the appraisal process (as a percent) | 0.00% |
Adjustments to other real estate owned values during the appraisal process (as a percent) | 0.00% |
Maximum | |
General disclosure on fair value | |
Adjustments to loan values during the appraisal process (as a percent) | 40.00% |
Adjustments to other real estate owned values during the appraisal process (as a percent) | 40.00% |
FAIR VALUE (Details 2) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|---|---|
Fair Value | ||||||
Securities available-for-sale | $ 918,777 | $ 890,770 | ||||
Loans held for sale | 38,770 | 58,223 | ||||
Loan servicing rights | 47,696 | $ 51,348 | 58,113 | $ 58,894 | $ 54,409 | $ 70,598 |
U.S. government sponsored agency obligations | ||||||
Fair Value | ||||||
Securities available-for-sale | 52,072 | 60,022 | ||||
Taxable | ||||||
Fair Value | ||||||
Securities available-for-sale | 4,385 | 1,321 | ||||
Tax exempt | ||||||
Fair Value | ||||||
Securities available-for-sale | 310,798 | 287,208 | ||||
SBA Pools | ||||||
Fair Value | ||||||
Securities available-for-sale | 25,729 | 27,925 | ||||
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ||||||
Fair Value | ||||||
Securities available-for-sale | 298,861 | 309,306 | ||||
Privately issued | ||||||
Fair Value | ||||||
Securities available-for-sale | 90,369 | 89,450 | ||||
Privately issued commercial mortgage-backed securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 23,852 | 13,705 | ||||
Corporate debt securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 112,711 | 101,833 | ||||
Recurring basis | Forward contracts related to mortgage loans to be delivered for sale | ||||||
Fair Value | ||||||
Derivative liabilities | 0 | |||||
Recurring basis | Tax exempt | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | |||||
Recurring basis | Level 1 | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Loans held for sale | 0 | 0 | ||||
Loan servicing rights | 0 | 0 | ||||
Derivative assets | 0 | 0 | ||||
Total assets at fair value | 0 | 0 | ||||
Derivative liabilities | 0 | 0 | ||||
Total liabilities at fair value | 0 | 0 | ||||
Recurring basis | Level 1 | Forward contracts related to mortgage loans to be delivered for sale | ||||||
Fair Value | ||||||
Derivative liabilities | 0 | |||||
Recurring basis | Level 1 | Interest rate lock commitments | ||||||
Fair Value | ||||||
Derivative assets | 0 | 0 | ||||
Recurring basis | Level 1 | Customer-initiated derivatives | ||||||
Fair Value | ||||||
Derivative assets | 0 | 0 | ||||
Derivative liabilities | 0 | 0 | ||||
Recurring basis | Level 1 | Risk management derivatives | ||||||
Fair Value | ||||||
Derivative assets | 0 | |||||
Derivative liabilities | 0 | 0 | ||||
Recurring basis | Level 1 | Residential real estate | ||||||
Fair Value | ||||||
Loans held for investment, recorded at fair value | 0 | 0 | ||||
Recurring basis | Level 1 | U.S. government sponsored agency obligations | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 1 | Taxable | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 1 | Tax exempt | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | |||||
Recurring basis | Level 1 | SBA Pools | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 1 | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 1 | Privately issued | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 1 | Privately issued commercial mortgage-backed securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 1 | Corporate debt securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 2 | ||||||
Fair Value | ||||||
Securities available-for-sale | 918,538 | 890,452 | ||||
Loans held for sale | 38,770 | 58,223 | ||||
Loan servicing rights | 0 | 0 | ||||
Derivative assets | 16,792 | 5,468 | ||||
Total assets at fair value | 974,100 | 954,143 | ||||
Derivative liabilities | 17,726 | 4,579 | ||||
Total liabilities at fair value | 17,726 | 4,579 | ||||
Recurring basis | Level 2 | Forward contracts related to mortgage loans to be delivered for sale | ||||||
Fair Value | ||||||
Derivative liabilities | 1,303 | 38 | ||||
Recurring basis | Level 2 | Interest rate lock commitments | ||||||
Fair Value | ||||||
Derivative assets | 3,482 | 1,220 | ||||
Recurring basis | Level 2 | Customer-initiated derivatives | ||||||
Fair Value | ||||||
Derivative assets | 13,310 | 4,143 | ||||
Derivative liabilities | 13,845 | 4,144 | ||||
Recurring basis | Level 2 | Risk management derivatives | ||||||
Fair Value | ||||||
Derivative assets | 105 | |||||
Derivative liabilities | 2,578 | 397 | ||||
Recurring basis | Level 2 | Residential real estate | ||||||
Fair Value | ||||||
Loans held for investment, recorded at fair value | 0 | 0 | ||||
Recurring basis | Level 2 | U.S. government sponsored agency obligations | ||||||
Fair Value | ||||||
Securities available-for-sale | 52,072 | 60,022 | ||||
Recurring basis | Level 2 | Taxable | ||||||
Fair Value | ||||||
Securities available-for-sale | 4,146 | 1,003 | ||||
Recurring basis | Level 2 | Tax exempt | ||||||
Fair Value | ||||||
Securities available-for-sale | 310,798 | 287,208 | ||||
Recurring basis | Level 2 | SBA Pools | ||||||
Fair Value | ||||||
Securities available-for-sale | 25,729 | 27,925 | ||||
Recurring basis | Level 2 | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ||||||
Fair Value | ||||||
Securities available-for-sale | 298,861 | 309,306 | ||||
Recurring basis | Level 2 | Privately issued | ||||||
Fair Value | ||||||
Securities available-for-sale | 90,369 | 89,450 | ||||
Recurring basis | Level 2 | Privately issued commercial mortgage-backed securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 23,852 | 13,705 | ||||
Recurring basis | Level 2 | Corporate debt securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 112,711 | 101,833 | ||||
Recurring basis | Level 3 | ||||||
Fair Value | ||||||
Securities available-for-sale | 239 | 318 | ||||
Loans held for sale | 0 | 0 | ||||
Loan servicing rights | 47,696 | 58,113 | ||||
Derivative assets | 0 | 0 | ||||
Total assets at fair value | 71,583 | 80,664 | ||||
Derivative liabilities | 0 | 0 | ||||
Total liabilities at fair value | 0 | 0 | ||||
Recurring basis | Level 3 | Forward contracts related to mortgage loans to be delivered for sale | ||||||
Fair Value | ||||||
Derivative liabilities | 0 | 0 | ||||
Recurring basis | Level 3 | Interest rate lock commitments | ||||||
Fair Value | ||||||
Derivative assets | 0 | 0 | ||||
Recurring basis | Level 3 | Customer-initiated derivatives | ||||||
Fair Value | ||||||
Derivative assets | 0 | 0 | ||||
Derivative liabilities | 0 | 0 | ||||
Recurring basis | Level 3 | Risk management derivatives | ||||||
Fair Value | ||||||
Derivative assets | 0 | |||||
Derivative liabilities | 0 | 0 | ||||
Recurring basis | Level 3 | Residential real estate | ||||||
Fair Value | ||||||
Loans held for investment, recorded at fair value | 23,648 | 22,233 | ||||
Recurring basis | Level 3 | U.S. government sponsored agency obligations | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 3 | Taxable | ||||||
Fair Value | ||||||
Securities available-for-sale | 239 | 318 | ||||
Recurring basis | Level 3 | Tax exempt | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 3 | SBA Pools | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 3 | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 3 | Privately issued | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 3 | Privately issued commercial mortgage-backed securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Level 3 | Corporate debt securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 0 | 0 | ||||
Recurring basis | Total Fair Value | ||||||
Fair Value | ||||||
Securities available-for-sale | 918,777 | 890,770 | ||||
Loans held for sale | 38,770 | 58,223 | ||||
Loan servicing rights | 47,696 | 58,113 | ||||
Derivative assets | 16,792 | 5,468 | ||||
Total assets at fair value | 1,045,683 | 1,034,807 | ||||
Derivative liabilities | 17,726 | 4,579 | ||||
Total liabilities at fair value | 17,726 | 4,579 | ||||
Recurring basis | Total Fair Value | Forward contracts related to mortgage loans to be delivered for sale | ||||||
Fair Value | ||||||
Derivative liabilities | 1,303 | 38 | ||||
Recurring basis | Total Fair Value | Interest rate lock commitments | ||||||
Fair Value | ||||||
Derivative assets | 3,482 | 1,220 | ||||
Recurring basis | Total Fair Value | Customer-initiated derivatives | ||||||
Fair Value | ||||||
Derivative assets | 13,310 | 4,143 | ||||
Derivative liabilities | 13,845 | 4,144 | ||||
Recurring basis | Total Fair Value | Risk management derivatives | ||||||
Fair Value | ||||||
Derivative assets | 105 | |||||
Derivative liabilities | 2,578 | 397 | ||||
Recurring basis | Total Fair Value | Residential real estate | ||||||
Fair Value | ||||||
Loans held for investment, recorded at fair value | 23,648 | 22,233 | ||||
Recurring basis | Total Fair Value | U.S. government sponsored agency obligations | ||||||
Fair Value | ||||||
Securities available-for-sale | 52,072 | 60,022 | ||||
Recurring basis | Total Fair Value | Taxable | ||||||
Fair Value | ||||||
Securities available-for-sale | 4,385 | 1,321 | ||||
Recurring basis | Total Fair Value | Tax exempt | ||||||
Fair Value | ||||||
Securities available-for-sale | 310,798 | 287,208 | ||||
Recurring basis | Total Fair Value | SBA Pools | ||||||
Fair Value | ||||||
Securities available-for-sale | 25,729 | 27,925 | ||||
Recurring basis | Total Fair Value | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ||||||
Fair Value | ||||||
Securities available-for-sale | 298,861 | 309,306 | ||||
Recurring basis | Total Fair Value | Privately issued | ||||||
Fair Value | ||||||
Securities available-for-sale | 90,369 | 89,450 | ||||
Recurring basis | Total Fair Value | Privately issued commercial mortgage-backed securities | ||||||
Fair Value | ||||||
Securities available-for-sale | 23,852 | 13,705 | ||||
Recurring basis | Total Fair Value | Corporate debt securities | ||||||
Fair Value | ||||||
Securities available-for-sale | $ 112,711 | $ 101,833 |
FAIR VALUE (Details 3) - Recurring basis - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Loans held for investment | ||||
Changes in Level 3 assets during period | ||||
Balance, beginning of period | $ 24,377 | $ 22,158 | $ 22,233 | $ 19,526 |
Transfer between levels within fair value hierarchy | 0 | |||
Transfers from loans held for sale | 62 | 764 | 1,896 | 3,983 |
Recorded in OCI (pre-tax) | 0 | 0 | ||
New originations | 0 | 0 | 0 | 0 |
Reduction from servicing rights sold | 0 | |||
Repayments | (692) | (1,680) | (987) | (2,502) |
Balance, end of period | 23,648 | 20,907 | 23,648 | 20,907 |
Loans held for investment | Interest on investments | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 0 | 0 | 0 | |
Loans held for investment | Net gain on sales of loans | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 1 | 12 | 83 | 139 |
Loans held for investment | Mortgage banking and other loan fees | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | (100) | (347) | 423 | (239) |
Loan servicing rights | ||||
Changes in Level 3 assets during period | ||||
Balance, beginning of period | 51,348 | 54,409 | 58,113 | 70,598 |
Transfer between levels within fair value hierarchy | 0 | |||
Transfers from loans held for sale | 0 | 0 | 0 | 0 |
Recorded in OCI (pre-tax) | 0 | 0 | ||
New originations | 2,475 | 2,933 | 4,175 | 5,848 |
Reduction from servicing rights sold | (12,702) | |||
Repayments | 0 | 0 | 0 | 0 |
Balance, end of period | 47,696 | 58,894 | 47,696 | 58,894 |
Loan servicing rights | Interest on investments | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 0 | 0 | 0 | |
Loan servicing rights | Net gain on sales of loans | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 0 | 0 | 0 | 0 |
Loan servicing rights | Mortgage banking and other loan fees | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | (6,127) | 1,552 | (14,592) | (4,850) |
Taxable | ||||
Changes in Level 3 assets during period | ||||
Balance, beginning of period | 318 | 397 | 318 | 397 |
Transfer between levels within fair value hierarchy | 0 | |||
Transfers from loans held for sale | 0 | 0 | 0 | 0 |
Recorded in OCI (pre-tax) | 0 | 0 | ||
New originations | 0 | 0 | 0 | 0 |
Reduction from servicing rights sold | 0 | |||
Repayments | (80) | (80) | (80) | (80) |
Balance, end of period | 239 | 318 | 239 | 318 |
Taxable | Interest on investments | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 1 | 1 | 1 | |
Taxable | Net gain on sales of loans | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 0 | 0 | 0 | 0 |
Taxable | Mortgage banking and other loan fees | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | $ 0 | 0 | $ 0 | 0 |
Corporate debt securities | ||||
Changes in Level 3 assets during period | ||||
Balance, beginning of period | 430 | 3,425 | ||
Transfer between levels within fair value hierarchy | (3,000) | |||
Transfers from loans held for sale | 0 | 0 | ||
Recorded in OCI (pre-tax) | 17 | 21 | ||
New originations | 0 | 0 | ||
Reduction from servicing rights sold | 0 | |||
Repayments | 0 | 0 | ||
Balance, end of period | 448 | 448 | ||
Corporate debt securities | Interest on investments | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 1 | 2 | ||
Corporate debt securities | Net gain on sales of loans | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | 0 | 0 | ||
Corporate debt securities | Mortgage banking and other loan fees | ||||
Changes in Level 3 assets during period | ||||
Total gains (losses) recorded in earnings (realized) | $ 0 | $ 0 |
FAIR VALUE (Details 4) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Loans held for investment measured and recorded at fair value | |||||
Aggregate fair value | $ 23,648,000 | $ 23,648,000 | $ 22,233,000 | ||
Contractual balance | 22,819,000 | 22,819,000 | 21,910,000 | ||
Fair value gain | 829,000 | 323,000 | |||
Gains (losses) from changes in fair value included in earnings | 0 | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Interest income earned on loans transferred from loans held for sale to loans held for investment | 220,000 | $ 208,000 | 442,000 | $ 413,000 | |
90 days or more past due | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Fair value of financing receivables on nonaccrual status | 151,000 | 151,000 | 275,000 | ||
Contractual principal balance | $ 206,000 | $ 206,000 | $ 364,000 |
FAIR VALUE (Details 5) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Gains/(losses) from changes in fair value included in earnings | $ 0 | |||
Loans held for sale | ||||
Gains/(losses) from changes in fair value included in earnings | $ 1,155,000 | $ 1,295,000 | 332,000 | $ 824,000 |
Interest income | Loans held for sale | ||||
Gains/(losses) from changes in fair value included in earnings | 341,000 | 878,000 | 670,000 | 1,948,000 |
Net gain on sales of loans | Loans held for investment | ||||
Gains/(losses) from changes in fair value included in earnings | 1,000 | 12,000 | 83,000 | 139,000 |
Net gain on sales of loans | Loans held for sale | ||||
Gains/(losses) from changes in fair value included in earnings | 814,000 | 417,000 | (338,000) | (1,124,000) |
Mortgage banking and other loan fees | Loans held for investment | ||||
Gains/(losses) from changes in fair value included in earnings | $ (100,000) | $ (347,000) | $ 423,000 | $ (239,000) |
FAIR VALUE (Details 6) - USD ($) |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Other information with respect to fair value | ||
Loans held for sale that are 90 days past due or on nonaccrual | $ 0 | $ 7,000 |
Aggregate fair value | 38,770,000 | 58,223,000 |
Contractual balance | 36,796,000 | 55,911,000 |
Unrealized gain | $ 1,974,000 | $ 2,312,000 |
FAIR VALUE (Details 7) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Fair Value | |||||
Impaired loans | $ 77,427,000 | $ 77,427,000 | $ 82,664,000 | ||
Other real estate owned | |||||
Other real estate owned | 20,563,000 | 20,563,000 | 28,259,000 | ||
Impaired loans | |||||
Specific reserves for impaired loans, nonrecurring | 5,448,000 | 5,448,000 | 8,147,000 | ||
Non-recurring basis | |||||
Fair Value | |||||
Impaired loans | 8,200,000 | 8,200,000 | 20,100,000 | ||
Impaired loans | |||||
Specific reserves for impaired loans, nonrecurring | 1,700,000 | 1,700,000 | 4,400,000 | ||
Charge-offs for impaired loans, nonrecurring | 6,000 | $ 31,000 | 325,000 | $ 67,000 | |
Amount charged through other non-interest expense to reduce the fair value of other real estate | 755,000 | 585,000,000 | 2,000,000 | 1,900,000 | |
Valuation allowance to reduce the fair value of repossessed assets | 0 | 325,000 | |||
Impairment charges on premises and equipment | 0 | 1,100,000 | 0 | 1,100,000 | |
Non-recurring basis | Repossessed assets | |||||
Impaired loans | |||||
Amount charged through other non-interest expense to reduce the fair value of repossessed assets | 296,000 | $ 274,000 | 607,000 | $ 468,000 | |
Valuation allowance to reduce the fair value of repossessed assets | 5,100,000 | 5,100,000 | |||
Non-recurring basis | Level 1 | |||||
Fair Value | |||||
Impaired loans | 0 | 0 | 0 | ||
Other real estate owned | |||||
Other real estate owned | 0 | 0 | 0 | ||
Repossessed assets | 0 | 0 | 0 | ||
Premises and equipment: | 0 | ||||
Total assets at fair value | 0 | 0 | 0 | ||
Non-recurring basis | Level 1 | Real estate construction | |||||
Fair Value | |||||
Impaired loans | 0 | 0 | 0 | ||
Non-recurring basis | Level 1 | Commercial real estate | |||||
Fair Value | |||||
Impaired loans | 0 | 0 | 0 | ||
Non-recurring basis | Level 1 | Residential real estate | |||||
Fair Value | |||||
Impaired loans | 0 | 0 | 0 | ||
Non-recurring basis | Level 1 | Commercial and industrial | |||||
Fair Value | |||||
Impaired loans | 0 | 0 | 0 | ||
Non-recurring basis | Level 1 | Consumer | |||||
Fair Value | |||||
Impaired loans | 0 | 0 | 0 | ||
Non-recurring basis | Level 2 | |||||
Fair Value | |||||
Impaired loans | 0 | 0 | 0 | ||
Other real estate owned | |||||
Other real estate owned | 0 | 0 | 0 | ||
Repossessed assets | 0 | 0 | 0 | ||
Premises and equipment: | 0 | ||||
Total assets at fair value | 0 | 0 | 0 | ||
Non-recurring basis | Level 2 | Real estate construction | |||||
Fair Value | |||||
Impaired loans | 0 | 0 | 0 | ||
Non-recurring basis | Level 2 | Commercial real estate | |||||
Fair Value | |||||
Impaired loans | 0 | 0 | 0 | ||
Non-recurring basis | Level 2 | Residential real estate | |||||
Fair Value | |||||
Impaired loans | 0 | 0 | 0 | ||
Non-recurring basis | Level 2 | Commercial and industrial | |||||
Fair Value | |||||
Impaired loans | 0 | 0 | 0 | ||
Non-recurring basis | Level 2 | Consumer | |||||
Fair Value | |||||
Impaired loans | 0 | 0 | 0 | ||
Non-recurring basis | Level 3 | |||||
Fair Value | |||||
Impaired loans | 8,155,000 | 8,155,000 | 20,076,000 | ||
Other real estate owned | |||||
Other real estate owned | 3,652,000 | 3,652,000 | 4,562,000 | ||
Repossessed assets | 4,751,000 | 4,751,000 | 5,038,000 | ||
Premises and equipment: | 1,575,000 | ||||
Total assets at fair value | 16,558,000 | 16,558,000 | 31,251,000 | ||
Non-recurring basis | Level 3 | Real estate construction | |||||
Fair Value | |||||
Impaired loans | 80,000 | 80,000 | 195,000 | ||
Non-recurring basis | Level 3 | Commercial real estate | |||||
Fair Value | |||||
Impaired loans | 2,549,000 | 2,549,000 | 2,960,000 | ||
Non-recurring basis | Level 3 | Residential real estate | |||||
Fair Value | |||||
Impaired loans | 4,009,000 | 4,009,000 | 5,381,000 | ||
Non-recurring basis | Level 3 | Commercial and industrial | |||||
Fair Value | |||||
Impaired loans | 1,456,000 | 1,456,000 | 11,522,000 | ||
Non-recurring basis | Level 3 | Consumer | |||||
Fair Value | |||||
Impaired loans | 61,000 | 61,000 | 18,000 | ||
Non-recurring basis | Total Fair Value | |||||
Fair Value | |||||
Impaired loans | 8,155,000 | 8,155,000 | 20,076,000 | ||
Other real estate owned | |||||
Other real estate owned | 3,652,000 | 3,652,000 | 4,562,000 | ||
Repossessed assets | 4,751,000 | 4,751,000 | 5,038,000 | ||
Premises and equipment: | 1,575,000 | ||||
Total assets at fair value | 16,558,000 | 16,558,000 | 31,251,000 | ||
Non-recurring basis | Total Fair Value | Real estate construction | |||||
Fair Value | |||||
Impaired loans | 80,000 | 80,000 | 195,000 | ||
Non-recurring basis | Total Fair Value | Commercial real estate | |||||
Fair Value | |||||
Impaired loans | 2,549,000 | 2,549,000 | 2,960,000 | ||
Non-recurring basis | Total Fair Value | Residential real estate | |||||
Fair Value | |||||
Impaired loans | 4,009,000 | 4,009,000 | 5,381,000 | ||
Non-recurring basis | Total Fair Value | Commercial and industrial | |||||
Fair Value | |||||
Impaired loans | 1,456,000 | 1,456,000 | 11,522,000 | ||
Non-recurring basis | Total Fair Value | Consumer | |||||
Fair Value | |||||
Impaired loans | $ 61,000 | $ 61,000 | $ 18,000 |
FAIR VALUE (Details 8) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Financial assets: | ||
Company-owned life insurance | $ 109,984 | $ 107,065 |
Held-to-maturity | 1,655 | 1,678 |
Deposits: | ||
Time deposits | 1,554,946 | 1,609,895 |
Total deposits | 5,267,208 | 5,014,581 |
Short-term borrowings | 525,960 | 348,998 |
Long-term debt | 296,656 | 464,057 |
Impaired loans | 77,427 | 82,664 |
Other brokered funds | 388,596 | 228,764 |
Recurring basis | ||
Deposits: | ||
Impaired loans | 23,600 | 22,200 |
Other brokered funds | 228,400 | 61,200 |
Non-recurring basis | ||
Deposits: | ||
Impaired loans | 8,200 | 20,100 |
Level 1 | Recurring basis | ||
Financial assets: | ||
Cash and cash equivalents | 86,571 | 74,734 |
Net loans | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Company-owned life insurance | 0 | 0 |
Held-to-maturity | 0 | 0 |
Deposits: | ||
Savings and demand deposits | 0 | 0 |
Time deposits | 0 | 0 |
Total deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Deferred compensation plan liabilities | 0 | 0 |
Level 1 | Non-recurring basis | ||
Deposits: | ||
Impaired loans | 0 | 0 |
Level 2 | Recurring basis | ||
Financial assets: | ||
Cash and cash equivalents | 373,663 | 312,589 |
Net loans | 0 | 0 |
Accrued interest receivable | 16,651 | 15,646 |
Company-owned life insurance | 109,984 | 107,065 |
Held-to-maturity | 0 | 0 |
Deposits: | ||
Savings and demand deposits | 3,483,838 | 3,343,478 |
Time deposits | 1,785,208 | 1,670,058 |
Total deposits | 5,269,046 | 5,013,536 |
Short-term borrowings | 525,960 | 348,998 |
Long-term debt | 293,157 | 456,746 |
Accrued interest payable | 3,639 | 3,568 |
Deferred compensation plan liabilities | 3,442 | 1,982 |
Level 2 | Non-recurring basis | ||
Deposits: | ||
Impaired loans | 0 | 0 |
Level 3 | Recurring basis | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Net loans | 5,097,843 | 4,827,556 |
Accrued interest receivable | 0 | 0 |
Company-owned life insurance | 0 | 0 |
Held-to-maturity | 1,655 | 1,678 |
Deposits: | ||
Savings and demand deposits | 0 | 0 |
Time deposits | 0 | 0 |
Total deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Deferred compensation plan liabilities | 0 | 0 |
Level 3 | Non-recurring basis | ||
Deposits: | ||
Impaired loans | 8,155 | 20,076 |
Carrying Value | Recurring basis | ||
Financial assets: | ||
Cash and cash equivalents | 460,234 | 387,323 |
Federal Home Loan Bank stock | 29,621 | 29,621 |
Net loans | 4,996,528 | 4,752,747 |
Accrued interest receivable | 16,651 | 15,646 |
Company-owned life insurance | 109,984 | 107,065 |
Held-to-maturity | 1,655 | 1,678 |
Deposits: | ||
Savings and demand deposits | 3,483,838 | 3,343,478 |
Time deposits | 1,783,370 | 1,671,103 |
Total deposits | 5,267,208 | 5,014,581 |
Short-term borrowings | 525,960 | 348,998 |
Long-term debt | 296,656 | 464,057 |
Accrued interest payable | 3,639 | 3,568 |
Deferred compensation plan liabilities | 3,442 | 1,982 |
Total Fair Value | Recurring basis | ||
Financial assets: | ||
Cash and cash equivalents | 460,234 | 387,323 |
Net loans | 5,097,843 | 4,827,556 |
Accrued interest receivable | 16,651 | 15,646 |
Company-owned life insurance | 109,984 | 107,065 |
Held-to-maturity | 1,655 | 1,678 |
Deposits: | ||
Savings and demand deposits | 3,483,838 | 3,343,478 |
Time deposits | 1,785,208 | 1,670,058 |
Total deposits | 5,269,046 | 5,013,536 |
Short-term borrowings | 525,960 | 348,998 |
Long-term debt | 293,157 | 456,746 |
Accrued interest payable | 3,639 | 3,568 |
Deferred compensation plan liabilities | 3,442 | 1,982 |
Total Fair Value | Non-recurring basis | ||
Deposits: | ||
Impaired loans | $ 8,155 | $ 20,076 |
SECURITIES (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities, amortized cost | $ 898,658 | $ 885,249 |
Gross Unrealized Gains | 20,889 | 8,438 |
Gross Unrealized Losses | (770) | (2,917) |
Fair Value | 918,777 | 890,770 |
Held-to-maturity: | ||
Total securities held-to-maturity, amortized cost | 1,655 | 1,678 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,655 | 1,678 |
U.S. government sponsored agency obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities, amortized cost | 51,867 | 59,414 |
Gross Unrealized Gains | 205 | 614 |
Gross Unrealized Losses | 0 | (6) |
Fair Value | 52,072 | 60,022 |
Taxable | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities, amortized cost | 4,279 | 1,318 |
Gross Unrealized Gains | 106 | 3 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 4,385 | 1,321 |
Tax exempt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities, amortized cost | 299,292 | 282,366 |
Gross Unrealized Gains | 11,835 | 5,312 |
Gross Unrealized Losses | (329) | (470) |
Fair Value | 310,798 | 287,208 |
SBA Pools | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities, amortized cost | 25,262 | 27,561 |
Gross Unrealized Gains | 467 | 368 |
Gross Unrealized Losses | 0 | (4) |
Fair Value | 25,729 | 27,925 |
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities, amortized cost | 292,618 | 308,396 |
Gross Unrealized Gains | 6,250 | 2,014 |
Gross Unrealized Losses | (7) | (1,104) |
Fair Value | 298,861 | 309,306 |
Privately issued | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities, amortized cost | 89,942 | 90,084 |
Gross Unrealized Gains | 509 | 0 |
Gross Unrealized Losses | (82) | (634) |
Fair Value | 90,369 | 89,450 |
Privately issued commercial mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities, amortized cost | 23,840 | 13,826 |
Gross Unrealized Gains | 35 | 0 |
Gross Unrealized Losses | (23) | (121) |
Fair Value | 23,852 | 13,705 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available-for-sale securities, amortized cost | 111,558 | 102,284 |
Gross Unrealized Gains | 1,482 | 127 |
Gross Unrealized Losses | (329) | (578) |
Fair Value | $ 112,711 | $ 101,833 |
SECURITIES (Details 2) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Information with respect to proceeds from sales of securities and the associated gains and losses | ||||
Proceeds | $ 0 | $ 135 | $ 14,977 | $ 24,750 |
Gross gains | 0 | 6 | 333 | 9 |
Gross losses | $ 0 | $ 0 | $ 0 | $ (110) |
SECURITIES (Details 3) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Amortized Cost - Securities with contractual maturities: | ||
Within one year | $ 3,383 | |
After one year through five years | 165,956 | |
After five years through ten years | 186,887 | |
After ten years | 542,432 | |
Total available-for-sale securities, amortized cost | 898,658 | $ 885,249 |
Fair Value - Securities with contractual maturities: | ||
Within one year | 3,392 | |
After one year through five years | 168,557 | |
After five years through ten years | 192,193 | |
After ten years | 554,635 | |
Total securities available-for-sale | 918,777 | 890,770 |
Amortized Cost - Securities held-to-maturity: | ||
After one year through five years | 1,655 | |
Total securities held-to-maturity, amortized cost | 1,655 | 1,678 |
Fair Value - Securities held-to-maturity: | ||
After one year through five years | 1,655 | |
Total securities held-to-maturity | 1,655 | 1,678 |
Available-for-sale securities pledged as collateral | ||
Securities with amortized cost pledged to secure borrowings and deposits | $ 430,800 | $ 390,500 |
SECURITIES (Details 4) |
Jun. 30, 2016
USD ($)
security
|
Dec. 31, 2015
USD ($)
|
---|---|---|
Less than 12 Months | ||
Fair Value | $ 43,738,000 | $ 353,736,000 |
Unrealized losses | (510,000) | (2,784,000) |
More than 12 Months | ||
Fair Value | 18,359,000 | 7,388,000 |
Unrealized losses | (260,000) | (133,000) |
Total | ||
Fair Value | 62,097,000 | 361,124,000 |
Unrealized losses | $ (770,000) | (2,917,000) |
Other information with respect to available-for-sale securities | ||
Number of securities in portfolio | security | 335 | |
Number of securities in an unrealized loss position | security | 40 | |
Securities of any one issuer, other than U.S. Government, greater than 10% of shareholders equity | $ 0 | 0 |
Available-for-sale securities in unrealized loss position fair value | 62,097,000 | 361,124,000 |
Available-for-sale securities, gross unrealized loss | 770,000 | 2,917,000 |
U.S. government sponsored agency obligations | ||
Less than 12 Months | ||
Fair Value | 9,994,000 | |
Unrealized losses | (6,000) | |
More than 12 Months | ||
Fair Value | 0 | |
Unrealized losses | 0 | |
Total | ||
Fair Value | 9,994,000 | |
Unrealized losses | (6,000) | |
Other information with respect to available-for-sale securities | ||
Available-for-sale securities in unrealized loss position fair value | 9,994,000 | |
Available-for-sale securities, gross unrealized loss | 0 | 6,000 |
Tax exempt | ||
Less than 12 Months | ||
Fair Value | 13,221,000 | 46,062,000 |
Unrealized losses | (95,000) | (357,000) |
More than 12 Months | ||
Fair Value | 17,148,000 | 6,957,000 |
Unrealized losses | (234,000) | (113,000) |
Total | ||
Fair Value | 30,369,000 | 53,019,000 |
Unrealized losses | (329,000) | (470,000) |
Other information with respect to available-for-sale securities | ||
Available-for-sale securities in unrealized loss position fair value | 30,369,000 | 53,019,000 |
Available-for-sale securities, gross unrealized loss | 329,000 | 470,000 |
SBA Pools | ||
Less than 12 Months | ||
Fair Value | 1,521,000 | |
Unrealized losses | (4,000) | |
More than 12 Months | ||
Fair Value | 0 | |
Unrealized losses | 0 | |
Total | ||
Fair Value | 1,521,000 | |
Unrealized losses | (4,000) | |
Other information with respect to available-for-sale securities | ||
Available-for-sale securities in unrealized loss position fair value | 1,521,000 | |
Available-for-sale securities, gross unrealized loss | 0 | 4,000 |
Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises | ||
Less than 12 Months | ||
Fair Value | 3,520,000 | 118,509,000 |
Unrealized losses | (7,000) | (1,104,000) |
More than 12 Months | ||
Fair Value | 0 | 0 |
Unrealized losses | 0 | 0 |
Total | ||
Fair Value | 3,520,000 | 118,509,000 |
Unrealized losses | (7,000) | (1,104,000) |
Other information with respect to available-for-sale securities | ||
Available-for-sale securities in unrealized loss position fair value | 3,520,000 | 118,509,000 |
Available-for-sale securities, gross unrealized loss | 7,000 | 1,104,000 |
Privately issued | ||
Less than 12 Months | ||
Fair Value | 11,197,000 | 89,450,000 |
Unrealized losses | (82,000) | (634,000) |
More than 12 Months | ||
Fair Value | 0 | 0 |
Unrealized losses | 0 | 0 |
Total | ||
Fair Value | 11,197,000 | 89,450,000 |
Unrealized losses | (82,000) | (634,000) |
Other information with respect to available-for-sale securities | ||
Available-for-sale securities in unrealized loss position fair value | 11,197,000 | 89,450,000 |
Available-for-sale securities, gross unrealized loss | 82,000 | 634,000 |
Privately issued commercial mortgage-backed securities | ||
Less than 12 Months | ||
Fair Value | 4,418,000 | 13,706,000 |
Unrealized losses | (16,000) | (121,000) |
More than 12 Months | ||
Fair Value | 776,000 | 0 |
Unrealized losses | (7,000) | 0 |
Total | ||
Fair Value | 5,194,000 | 13,706,000 |
Unrealized losses | (23,000) | (121,000) |
Other information with respect to available-for-sale securities | ||
Available-for-sale securities in unrealized loss position fair value | 5,194,000 | 13,706,000 |
Available-for-sale securities, gross unrealized loss | 23,000 | 121,000 |
Corporate debt securities | ||
Less than 12 Months | ||
Fair Value | 11,382,000 | 74,494,000 |
Unrealized losses | (310,000) | (558,000) |
More than 12 Months | ||
Fair Value | 435,000 | 431,000 |
Unrealized losses | (19,000) | (20,000) |
Total | ||
Fair Value | 11,817,000 | 74,925,000 |
Unrealized losses | (329,000) | (578,000) |
Other information with respect to available-for-sale securities | ||
Available-for-sale securities in unrealized loss position fair value | 11,817,000 | 74,925,000 |
Available-for-sale securities, gross unrealized loss | $ 329,000 | $ 578,000 |
LOANS (Details) - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|||
Loans | ||||
Total loans | $ 5,048,114 | $ 4,806,700 | ||
Deferred fees and costs | $ 5,600 | 1,900 | ||
Minimum | ||||
Loans | ||||
Term of finance | 15 years | |||
Maximum | ||||
Loans | ||||
Term of finance | 30 years | |||
Accounted for under ASC 310-30 | ||||
Loans | ||||
Total loans | $ 492,719 | 569,266 | ||
Excluded from ASC 310-30 accounting | ||||
Loans | ||||
Total loans | 4,555,395 | 4,237,434 | ||
Commercial real estate | ||||
Loans | ||||
Total loans | 1,661,790 | 1,568,097 | ||
Commercial real estate | Accounted for under ASC 310-30 | ||||
Loans | ||||
Total loans | 213,727 | 250,497 | ||
Commercial real estate | Excluded from ASC 310-30 accounting | ||||
Loans | ||||
Total loans | 1,448,063 | 1,317,600 | ||
Residential real estate | ||||
Loans | ||||
Total loans | [1] | 1,674,615 | 1,547,799 | |
Residential real estate | Accounted for under ASC 310-30 | ||||
Loans | ||||
Total loans | 242,025 | 273,845 | ||
Residential real estate | Excluded from ASC 310-30 accounting | ||||
Loans | ||||
Total loans | 1,432,590 | 1,273,954 | ||
Commercial and industrial | ||||
Loans | ||||
Total loans | 1,282,641 | 1,257,406 | ||
Commercial and industrial | Accounted for under ASC 310-30 | ||||
Loans | ||||
Total loans | 20,809 | 24,724 | ||
Commercial and industrial | Excluded from ASC 310-30 accounting | ||||
Loans | ||||
Total loans | 1,261,832 | 1,232,682 | ||
Real estate construction | ||||
Loans | ||||
Total loans | 257,111 | 241,603 | ||
Real estate construction | Accounted for under ASC 310-30 | ||||
Loans | ||||
Total loans | 7,879 | 10,783 | ||
Real estate construction | Excluded from ASC 310-30 accounting | ||||
Loans | ||||
Total loans | 249,232 | 230,820 | ||
Consumer | ||||
Loans | ||||
Total loans | 171,957 | 191,795 | ||
Consumer | Accounted for under ASC 310-30 | ||||
Loans | ||||
Total loans | 8,279 | 9,417 | ||
Consumer | Excluded from ASC 310-30 accounting | ||||
Loans | ||||
Total loans | $ 163,678 | $ 182,378 | ||
|
LOANS (Details 2) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Change in carrying amount of accretable discount | ||||
Balance at beginning of period | $ 211,467 | $ 278,825 | $ 223,214 | $ 277,058 |
Additions due to acquisitions | 0 | 0 | 0 | 5,268 |
Discount accretion | (14,281) | (19,242) | (29,154) | (40,206) |
Reclassifications from nonaccretable discount and other additions to accretable discount due to results of cash flow re-estimations | 9,645 | 21,642 | 25,370 | 51,073 |
Other activity, net | (10,023) | (21,161) | (22,622) | (33,129) |
Balance at end of period | $ 196,808 | $ 260,064 | $ 196,808 | $ 260,064 |
LOANS (Details 3) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Expected cash flows for loans | |||||
Identified improvement in the cash flow expectations | $ 9,600 | $ 21,600 | $ 25,400 | $ 51,100 | |
Accounted for under ASC 310-30 | |||||
Expected cash flows for loans | |||||
Contractual cash flows | 911,735 | 911,735 | $ 1,019,407 | ||
Non-accretable difference | (222,208) | (222,208) | (226,927) | ||
Accretable yield | (196,808) | (196,808) | (223,214) | ||
Loans accounted for under ASC 310-30 | $ 492,719 | $ 492,719 | $ 569,266 |
LOANS (Details 4) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Information on nonperforming assets | ||
Nonaccrual loans | $ 45,954 | $ 57,475 |
Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 823 | 297 |
Nonperforming assets | ||
Information on nonperforming assets | ||
Nonaccrual loans | 45,954 | 57,475 |
Other real estate owned and repossessed assets | 20,461 | 28,157 |
Total assets | 66,415 | 85,632 |
Commercial real estate | Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 686 | 0 |
Commercial real estate | Nonperforming assets | ||
Information on nonperforming assets | ||
Nonaccrual loans | 12,525 | 16,798 |
Residential real estate | Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 63 | 58 |
Residential real estate | Nonperforming assets | ||
Information on nonperforming assets | ||
Nonaccrual loans | 15,846 | 18,390 |
Commercial and industrial | Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 0 | 14 |
Commercial and industrial | Nonperforming assets | ||
Information on nonperforming assets | ||
Nonaccrual loans | 17,282 | 21,668 |
Real estate construction | Nonperforming assets | ||
Information on nonperforming assets | ||
Nonaccrual loans | 203 | 413 |
Consumer | Excluded from ASC 310-30 accounting | ||
Information on nonperforming assets | ||
90 days or more past due and still accruing | 74 | 225 |
Consumer | Nonperforming assets | ||
Information on nonperforming assets | ||
Nonaccrual loans | $ 98 | $ 206 |
LOANS (Details 5) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Loans and Allowance for Loan Losses | ||
Total loans | $ 5,048,114 | $ 4,806,700 |
Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 38,116 | 58,517 |
Current | 4,517,279 | 4,178,917 |
Total loans | 4,555,395 | 4,237,434 |
90 days or more past due and still accruing | 823 | 297 |
Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,661,790 | 1,568,097 |
Commercial real estate | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 13,224 | 17,560 |
Current | 1,434,839 | 1,300,040 |
Total loans | 1,448,063 | 1,317,600 |
90 days or more past due and still accruing | 686 | 0 |
Residential real estate | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,674,615 | 1,547,799 |
Residential real estate | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 11,188 | 20,498 |
Current | 1,421,402 | 1,253,456 |
Total loans | 1,432,590 | 1,273,954 |
90 days or more past due and still accruing | 63 | 58 |
Commercial and industrial | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,282,641 | 1,257,406 |
Commercial and industrial | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 12,119 | 16,133 |
Current | 1,249,713 | 1,216,549 |
Total loans | 1,261,832 | 1,232,682 |
90 days or more past due and still accruing | 0 | 14 |
Real estate construction | ||
Loans and Allowance for Loan Losses | ||
Total loans | 257,111 | 241,603 |
Real estate construction | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 37 | 2,350 |
Current | 249,195 | 228,470 |
Total loans | 249,232 | 230,820 |
90 days or more past due and still accruing | 0 | 0 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Total loans | 171,957 | 191,795 |
Consumer | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 1,548 | 1,976 |
Current | 162,130 | 180,402 |
Total loans | 163,678 | 182,378 |
90 days or more past due and still accruing | 74 | 225 |
30-59 days past due | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 8,808 | 25,656 |
30-59 days past due | Commercial real estate | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 2,717 | 2,662 |
30-59 days past due | Residential real estate | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 3,781 | 10,582 |
30-59 days past due | Commercial and industrial | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 1,182 | 9,079 |
30-59 days past due | Real estate construction | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 0 | 2,046 |
30-59 days past due | Consumer | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 1,128 | 1,287 |
60-89 days past due | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 2,816 | 6,418 |
60-89 days past due | Commercial real estate | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 704 | 1,378 |
60-89 days past due | Residential real estate | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 1,710 | 2,539 |
60-89 days past due | Commercial and industrial | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 85 | 2,099 |
60-89 days past due | Real estate construction | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 0 | 0 |
60-89 days past due | Consumer | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 317 | 402 |
90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Total past due | 206 | 364 |
90 days or more past due | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 26,492 | 26,443 |
90 days or more past due | Commercial real estate | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 9,803 | 13,520 |
90 days or more past due | Residential real estate | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 5,697 | 7,377 |
90 days or more past due | Commercial and industrial | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 10,852 | 4,955 |
90 days or more past due | Real estate construction | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | 37 | 304 |
90 days or more past due | Consumer | Excluded from ASC 310-30 accounting | ||
Loans and Allowance for Loan Losses | ||
Total past due | $ 103 | $ 287 |
LOANS (Details 6) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Information as to total impaired loans | ||
Nonaccrual loans | $ 45,954 | $ 57,475 |
Impaired loans, total recorded investment | 77,427 | 82,664 |
Commercial real estate | ||
Information as to total impaired loans | ||
Impaired loans, total recorded investment | 31,627 | 32,138 |
Residential real estate | ||
Information as to total impaired loans | ||
Impaired loans, total recorded investment | 24,314 | 24,139 |
Commercial and industrial | ||
Information as to total impaired loans | ||
Impaired loans, total recorded investment | 20,601 | 25,106 |
Real estate construction | ||
Information as to total impaired loans | ||
Impaired loans, total recorded investment | 469 | 833 |
Consumer | ||
Information as to total impaired loans | ||
Impaired loans, total recorded investment | 416 | 448 |
Performing assets | ||
Information as to total impaired loans | ||
Troubled debt restructurings | 31,473 | 25,189 |
Performing assets | Commercial real estate | ||
Information as to total impaired loans | ||
Troubled debt restructurings | 19,102 | 15,340 |
Performing assets | Residential real estate | ||
Information as to total impaired loans | ||
Troubled debt restructurings | 8,468 | 5,749 |
Performing assets | Commercial and industrial | ||
Information as to total impaired loans | ||
Troubled debt restructurings | 3,319 | 3,438 |
Performing assets | Real estate construction | ||
Information as to total impaired loans | ||
Troubled debt restructurings | 266 | 420 |
Performing assets | Consumer | ||
Information as to total impaired loans | ||
Troubled debt restructurings | $ 318 | $ 242 |
LOANS (Details 7) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Information as to total impaired loans | ||
Period of required compliance for restructured obligation modified at market rate for not reporting it as TDR | 6 months | |
Period of required compliance for restructured obligation modified at other than market rate for reconsidering it as performing | 6 months | |
Nonperforming assets | ||
Information as to total impaired loans | ||
Troubled debt restructurings | $ 13,700 | $ 14,500 |
Performing assets | ||
Information as to total impaired loans | ||
Troubled debt restructurings | $ 31,473 | $ 25,189 |
LOANS (Details 8) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016
USD ($)
loan
|
Jun. 30, 2015
USD ($)
loan
|
Jun. 30, 2016
USD ($)
loan
|
Jun. 30, 2015
USD ($)
loan
|
|
Troubled Debt Restructurings | ||||
Total number of loans | loan | 42 | 59 | 71 | 87 |
Total recorded investment (modified) | $ 6,672 | $ 7,151 | $ 10,979 | $ 11,506 |
Net charge-offs (recoveries) | 2 | 222 | 57 | 227 |
Provision (benefit) for loan losses | 35 | 431 | (202) | 843 |
Loan forgiven | $ 608 | $ 187 | $ 750 | $ 187 |
Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 11 | 17 | 16 | 22 |
Total recorded investment (modified) | $ 3,903 | $ 4,371 | $ 4,326 | $ 5,828 |
Net charge-offs (recoveries) | 0 | 0 | 0 | 37 |
Provision (benefit) for loan losses | $ (12) | $ 2 | $ (199) | $ 210 |
Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 25 | 23 | 39 | 35 |
Total recorded investment (modified) | $ 2,537 | $ 1,600 | $ 3,588 | $ 3,184 |
Net charge-offs (recoveries) | 2 | 0 | 57 | 6 |
Provision (benefit) for loan losses | $ 46 | $ 167 | $ 137 | $ 269 |
Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 5 | 14 | 14 | 23 |
Total recorded investment (modified) | $ 214 | $ 925 | $ 3,041 | $ 2,094 |
Net charge-offs (recoveries) | 0 | 192 | 0 | 192 |
Provision (benefit) for loan losses | $ 1 | $ 232 | $ (140) | $ 372 |
Real estate construction | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 4 | 5 | ||
Total recorded investment (modified) | $ 238 | $ 368 | ||
Net charge-offs (recoveries) | 30 | (8) | ||
Provision (benefit) for loan losses | $ 30 | $ (8) | ||
Consumer | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 1 | 1 | 2 | 2 |
Total recorded investment (modified) | $ 18 | $ 17 | $ 24 | $ 32 |
Net charge-offs (recoveries) | 0 | 0 | 0 | 0 |
Provision (benefit) for loan losses | 0 | 0 | 0 | 0 |
Principal deferral | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 1,845 | 1,581 | 4,392 | 2,880 |
Principal deferral | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 1,178 | 93 | 1,178 | 93 |
Principal deferral | Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 566 | 1,150 | 790 | 2,098 |
Principal deferral | Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 83 | 231 | 2,400 | 567 |
Principal deferral | Real estate construction | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 90 | 90 | ||
Principal deferral | Consumer | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 18 | 17 | 24 | 32 |
Principal reduction modification | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 521 | 114 | 642 | 114 |
Principal reduction modification | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 0 | 0 |
Principal reduction modification | Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 521 | 114 | 642 | 114 |
Principal reduction modification | Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 0 | 0 |
Principal reduction modification | Real estate construction | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | ||
Principal reduction modification | Consumer | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 0 | 0 |
Interest rate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 2,439 | 4,772 | 3,620 | 6,565 |
Interest rate | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 1,129 | 3,746 | 1,552 | 4,096 |
Interest rate | Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 1,248 | 336 | 1,902 | 972 |
Interest rate | Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 62 | 542 | 166 | 1,349 |
Interest rate | Real estate construction | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 148 | 148 | ||
Interest rate | Consumer | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 0 | 0 | 0 |
Forbearance agreement | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 1,867 | 684 | 2,325 | 1,947 |
Forbearance agreement | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 1,596 | 532 | 1,596 | 1,639 |
Forbearance agreement | Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 202 | 0 | 254 | 0 |
Forbearance agreement | Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 69 | 152 | 475 | 178 |
Forbearance agreement | Real estate construction | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | 0 | 130 | ||
Forbearance agreement | Consumer | ||||
Troubled Debt Restructurings | ||||
Total recorded investment (modified) | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS (Details 9) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016
USD ($)
loan
|
Jun. 30, 2015
USD ($)
loan
|
Jun. 30, 2016
USD ($)
loan
|
Jun. 30, 2015
USD ($)
loan
|
|
Troubled Debt Restructurings | ||||
Total number of loans | loan | 18 | 33 | 21 | 37 |
Total recorded investment | $ 1,370 | $ 4,879 | $ 1,720 | $ 5,053 |
Charged-off following a subsequent default | 2 | $ 144 | 5 | $ 247 |
Commitments to lend additional funds to borrowers whose terms have been modified in TDRs | $ 172 | $ 172 | ||
Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 4 | 12 | 5 | 12 |
Total recorded investment | $ 202 | $ 2,942 | $ 520 | $ 2,942 |
Charged-off following a subsequent default | $ 0 | $ 144 | $ 0 | $ 218 |
Residential real estate | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 9 | 17 | 11 | 21 |
Total recorded investment | $ 920 | $ 1,812 | $ 952 | $ 1,986 |
Charged-off following a subsequent default | $ 2 | $ 0 | $ 2 | $ 29 |
Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 2 | 4 | 2 | 4 |
Total recorded investment | $ 219 | $ 125 | $ 219 | $ 125 |
Charged-off following a subsequent default | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer | ||||
Troubled Debt Restructurings | ||||
Total number of loans | loan | 3 | 3 | ||
Total recorded investment | $ 29 | $ 29 | ||
Charged-off following a subsequent default | $ 0 | $ 3 |
LOANS (Details 10) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | $ 5,048,114 | $ 4,806,700 |
Commercial real estate | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 1,661,790 | 1,568,097 |
Commercial and industrial | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 1,282,641 | 1,257,406 |
Real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 257,111 | 241,603 |
Commercial and industrial, commercial real estate and real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 3,201,542 | 3,067,106 |
Pass | Commercial real estate | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 1,523,429 | 1,408,238 |
Pass | Commercial and industrial | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 1,183,709 | 1,177,354 |
Pass | Real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 253,944 | 235,479 |
Pass | Commercial and industrial, commercial real estate and real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 2,961,082 | 2,821,071 |
Special Mention | Commercial real estate | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 67,230 | 60,130 |
Special Mention | Commercial and industrial | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 47,053 | 24,129 |
Special Mention | Real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 367 | 259 |
Special Mention | Commercial and industrial, commercial real estate and real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 114,650 | 84,518 |
Substandard | Commercial real estate | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 71,131 | 99,343 |
Substandard | Commercial and industrial | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 51,879 | 55,923 |
Substandard | Real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 2,800 | 5,865 |
Substandard | Commercial and industrial, commercial real estate and real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 125,810 | 161,131 |
Doubtful | Commercial real estate | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 0 | 386 |
Doubtful | Commercial and industrial | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 0 | 0 |
Doubtful | Real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | 0 | 0 |
Doubtful | Commercial and industrial, commercial real estate and real estate construction | ||
Commercial and industrial, commercial real estate and real estate construction credit quality | ||
Total loans | $ 0 | $ 386 |
LOANS (Details 11) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Loans by credit quality | ||
Total loans | $ 5,048,114 | $ 4,806,700 |
Residential real estate | ||
Loans by credit quality | ||
Total loans | 1,674,615 | 1,547,799 |
Consumer | ||
Loans by credit quality | ||
Total loans | 171,957 | 191,795 |
Residential real estate and consumer loans | ||
Loans by credit quality | ||
Total loans | 1,846,572 | 1,739,594 |
Performing assets | Residential real estate | ||
Loans by credit quality | ||
Total loans | 1,658,769 | 1,529,409 |
Performing assets | Consumer | ||
Loans by credit quality | ||
Total loans | 171,859 | 191,589 |
Performing assets | Residential real estate and consumer loans | ||
Loans by credit quality | ||
Total loans | 1,830,628 | 1,720,998 |
Nonperforming assets | Residential real estate | ||
Loans by credit quality | ||
Total loans | 15,846 | 18,390 |
Nonperforming assets | Consumer | ||
Loans by credit quality | ||
Total loans | 98 | 206 |
Nonperforming assets | Residential real estate and consumer loans | ||
Loans by credit quality | ||
Total loans | $ 15,944 | $ 18,596 |
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | $ 41,242 | $ 41,242 | $ 38,192 | ||
Recorded investment with related allowance | 36,185 | 36,185 | 44,472 | ||
Impaired loans, total recorded investment | 77,427 | 77,427 | 82,664 | ||
Contractual principal balance | 110,915 | 110,915 | 106,549 | ||
Related allowance | 5,448 | 5,448 | 8,147 | ||
Average recorded investment | 81,323 | $ 78,166 | 83,967 | $ 80,062 | |
Interest income recognized | 1,537 | 1,736 | 2,779 | 3,022 | |
Commercial real estate | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | 9,930 | 9,930 | 12,506 | ||
Recorded investment with related allowance | 21,697 | 21,697 | 19,632 | ||
Impaired loans, total recorded investment | 31,627 | 31,627 | 32,138 | ||
Contractual principal balance | 48,806 | 48,806 | 46,099 | ||
Related allowance | 2,595 | 2,595 | 2,647 | ||
Average recorded investment | 33,145 | 38,208 | 34,228 | 38,774 | |
Interest income recognized | 842 | 1,067 | 1,541 | 1,779 | |
Residential real estate | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | 13,984 | 13,984 | 13,304 | ||
Recorded investment with related allowance | 10,330 | 10,330 | 10,835 | ||
Impaired loans, total recorded investment | 24,314 | 24,314 | 24,139 | ||
Contractual principal balance | 31,474 | 31,474 | 30,409 | ||
Related allowance | 2,168 | 2,168 | 2,729 | ||
Average recorded investment | 24,775 | 28,903 | 25,220 | 29,080 | |
Interest income recognized | 326 | 400 | 663 | 674 | |
Commercial and industrial | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | 16,890 | 16,890 | 11,661 | ||
Recorded investment with related allowance | 3,711 | 3,711 | 13,445 | ||
Impaired loans, total recorded investment | 20,601 | 20,601 | 25,106 | ||
Contractual principal balance | 28,840 | 28,840 | 27,883 | ||
Related allowance | 554 | 554 | 2,577 | ||
Average recorded investment | 22,502 | 9,036 | 23,528 | 10,117 | |
Interest income recognized | 350 | 182 | 537 | 443 | |
Real estate construction | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | 180 | 180 | 402 | ||
Recorded investment with related allowance | 289 | 289 | 431 | ||
Impaired loans, total recorded investment | 469 | 469 | 833 | ||
Contractual principal balance | 1,140 | 1,140 | 1,369 | ||
Related allowance | 68 | 68 | 158 | ||
Average recorded investment | 474 | 1,422 | 552 | 1,474 | |
Interest income recognized | 9 | 76 | 18 | 104 | |
Consumer | |||||
Impaired loans individually evaluated for impairment | |||||
Recorded investment with no related allowance | 258 | 258 | 319 | ||
Recorded investment with related allowance | 158 | 158 | 129 | ||
Impaired loans, total recorded investment | 416 | 416 | 448 | ||
Contractual principal balance | 655 | 655 | 789 | ||
Related allowance | 63 | 63 | $ 36 | ||
Average recorded investment | 427 | 597 | 439 | 617 | |
Interest income recognized | $ 10 | $ 11 | $ 20 | $ 22 |
ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | $ 53,953 | |||
Provision (benefit) for loan and lease losses | $ 3,208 | $ (7,313) | 2,097 | $ (5,320) |
Ending allowance for loan losses | 51,586 | 51,586 | ||
Accounted for under ASC 310-30 | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 17,849 | 29,060 | 22,266 | 32,732 |
Transfer in from covered | (568) | (578) | (960) | (656) |
Provision (benefit) for loan and lease losses | (844) | (4,854) | (4,067) | (5,934) |
Gross charge-offs | (2,449) | (5,271) | (5,761) | (12,510) |
Recoveries | 2,104 | 7,397 | 4,614 | 12,122 |
Net (charge-offs) recoveries | (345) | 2,126 | (1,147) | (388) |
Ending allowance for loan losses | 16,092 | 25,754 | 16,092 | 25,754 |
Excluded from ASC 310-30 accounting | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 34,529 | 23,405 | 31,687 | 22,440 |
Transfer in from covered | 568 | 578 | 960 | 656 |
Provision (benefit) for loan and lease losses | 4,052 | (2,459) | 6,164 | 614 |
Gross charge-offs | (5,447) | (2,666) | (7,187) | (6,425) |
Recoveries | 1,792 | 8,294 | 3,870 | 9,867 |
Net (charge-offs) recoveries | (3,655) | 5,628 | (3,317) | 3,442 |
Ending allowance for loan losses | 35,494 | 27,152 | 35,494 | 27,152 |
Commercial real estate | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 19,418 | |||
Ending allowance for loan losses | 18,779 | 18,779 | ||
Commercial real estate | Accounted for under ASC 310-30 | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 8,352 | 14,281 | 11,030 | 17,558 |
Transfer in from covered | (459) | (295) | (542) | (325) |
Provision (benefit) for loan and lease losses | (834) | (1,924) | (2,091) | (4,471) |
Gross charge-offs | (655) | (3,241) | (2,419) | (7,512) |
Recoveries | 1,117 | 3,937 | 1,543 | 7,508 |
Net (charge-offs) recoveries | 462 | 696 | (876) | (4) |
Ending allowance for loan losses | 7,521 | 12,758 | 7,521 | 12,758 |
Commercial real estate | Excluded from ASC 310-30 accounting | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 9,552 | 6,784 | 8,388 | 7,234 |
Transfer in from covered | 459 | 295 | 542 | 325 |
Provision (benefit) for loan and lease losses | 2,305 | (4,192) | 2,832 | (4,187) |
Gross charge-offs | (1,738) | (462) | (2,148) | (1,620) |
Recoveries | 680 | 6,165 | 1,644 | 6,838 |
Net (charge-offs) recoveries | (1,058) | 5,703 | (504) | 5,218 |
Ending allowance for loan losses | 11,258 | 8,590 | 11,258 | 8,590 |
Residential real estate | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 14,432 | |||
Ending allowance for loan losses | 15,936 | 15,936 | ||
Residential real estate | Accounted for under ASC 310-30 | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 7,253 | 9,260 | 7,947 | 9,674 |
Transfer in from covered | (8) | (68) | (66) | (116) |
Provision (benefit) for loan and lease losses | 152 | (660) | (1,361) | 290 |
Gross charge-offs | (875) | (593) | (1,610) | (2,157) |
Recoveries | 393 | 660 | 2,005 | 908 |
Net (charge-offs) recoveries | (482) | 67 | 395 | (1,249) |
Ending allowance for loan losses | 6,915 | 8,599 | 6,915 | 8,599 |
Residential real estate | Excluded from ASC 310-30 accounting | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 6,289 | 5,777 | 6,485 | 6,498 |
Transfer in from covered | 8 | 68 | 66 | 116 |
Provision (benefit) for loan and lease losses | 2,702 | 782 | 2,371 | 523 |
Gross charge-offs | (759) | (642) | (1,314) | (1,539) |
Recoveries | 781 | 600 | 1,413 | 987 |
Net (charge-offs) recoveries | 22 | (42) | 99 | (552) |
Ending allowance for loan losses | 9,021 | 6,585 | 9,021 | 6,585 |
Commercial and industrial | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 16,318 | |||
Ending allowance for loan losses | 12,440 | 12,440 | ||
Commercial and industrial | Accounted for under ASC 310-30 | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 1,078 | 3,119 | 1,487 | 3,264 |
Transfer in from covered | (3) | (215) | (27) | (215) |
Provision (benefit) for loan and lease losses | 90 | (2,296) | 54 | (2,128) |
Gross charge-offs | (668) | (723) | (1,402) | (1,401) |
Recoveries | 463 | 2,616 | 848 | 2,981 |
Net (charge-offs) recoveries | (205) | 1,893 | (554) | 1,580 |
Ending allowance for loan losses | 960 | 2,501 | 960 | 2,501 |
Commercial and industrial | Excluded from ASC 310-30 accounting | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 16,502 | 9,168 | 14,831 | 7,149 |
Transfer in from covered | 3 | 215 | 27 | 215 |
Provision (benefit) for loan and lease losses | (2,871) | 894 | (1,198) | 3,937 |
Gross charge-offs | (2,399) | (1,287) | (2,643) | (2,693) |
Recoveries | 245 | 1,347 | 463 | 1,729 |
Net (charge-offs) recoveries | (2,154) | 60 | (2,180) | (964) |
Ending allowance for loan losses | 11,480 | 10,337 | 11,480 | 10,337 |
Real estate construction | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 2,699 | |||
Ending allowance for loan losses | 2,214 | 2,214 | ||
Real estate construction | Accounted for under ASC 310-30 | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 1,065 | 2,232 | 1,678 | 2,030 |
Transfer in from covered | (98) | 0 | (325) | 0 |
Provision (benefit) for loan and lease losses | (208) | 80 | (589) | 311 |
Gross charge-offs | (246) | (695) | (319) | (1,226) |
Recoveries | 116 | 134 | 184 | 636 |
Net (charge-offs) recoveries | (130) | (561) | (135) | (590) |
Ending allowance for loan losses | 629 | 1,751 | 629 | 1,751 |
Real estate construction | Excluded from ASC 310-30 accounting | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 1,210 | 528 | 1,021 | 655 |
Transfer in from covered | 98 | 0 | 325 | 0 |
Provision (benefit) for loan and lease losses | 418 | 34 | 208 | (113) |
Gross charge-offs | (171) | (31) | (198) | (43) |
Recoveries | 30 | 120 | 229 | 152 |
Net (charge-offs) recoveries | (141) | 89 | 31 | 109 |
Ending allowance for loan losses | 1,585 | 651 | 1,585 | 651 |
Consumer | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 1,086 | |||
Ending allowance for loan losses | 2,217 | 2,217 | ||
Consumer | Accounted for under ASC 310-30 | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 101 | 168 | 124 | 206 |
Transfer in from covered | 0 | 0 | 0 | 0 |
Provision (benefit) for loan and lease losses | (44) | (54) | (80) | 64 |
Gross charge-offs | (5) | (19) | (11) | (214) |
Recoveries | 15 | 50 | 34 | 89 |
Net (charge-offs) recoveries | 10 | 31 | 23 | (125) |
Ending allowance for loan losses | 67 | 145 | 67 | 145 |
Consumer | Excluded from ASC 310-30 accounting | ||||
Changes in the allowance and the allocation of the allowance for loans | ||||
Balance at beginning of period | 976 | 1,148 | 962 | 904 |
Transfer in from covered | 0 | 0 | 0 | 0 |
Provision (benefit) for loan and lease losses | 1,498 | 23 | 1,951 | 454 |
Gross charge-offs | (380) | (244) | (884) | (530) |
Recoveries | 56 | 62 | 121 | 161 |
Net (charge-offs) recoveries | (324) | (182) | (763) | (369) |
Ending allowance for loan losses | $ 2,150 | $ 989 | $ 2,150 | $ 989 |
ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
||
---|---|---|---|---|---|---|---|---|
Allowance for loan losses: | ||||||||
Individually evaluated for impairment | $ 5,448 | $ 8,147 | ||||||
Collectively evaluated for impairment | 30,046 | 23,540 | ||||||
Allowance for loan losses | 51,586 | 53,953 | ||||||
Balance of loans: | ||||||||
Individually evaluated for impairment | 77,427 | 82,664 | ||||||
Collectively evaluated for impairment | 4,477,968 | 4,154,770 | ||||||
Total loans | 5,048,114 | 4,806,700 | ||||||
Accounted for under ASC 310-30 | ||||||||
Allowance for loan losses: | ||||||||
Allowance for loan losses | 16,092 | $ 17,849 | 22,266 | $ 25,754 | $ 29,060 | $ 32,732 | ||
Balance of loans: | ||||||||
Total loans | 492,719 | 569,266 | ||||||
Residential real estate | ||||||||
Allowance for loan losses: | ||||||||
Individually evaluated for impairment | 2,168 | 2,729 | ||||||
Collectively evaluated for impairment | 6,853 | 3,756 | ||||||
Allowance for loan losses | 15,936 | 14,432 | ||||||
Balance of loans: | ||||||||
Individually evaluated for impairment | 24,314 | 24,139 | ||||||
Collectively evaluated for impairment | 1,408,276 | 1,249,815 | ||||||
Total loans | [1] | 1,674,615 | 1,547,799 | |||||
Residential real estate | Accounted for under ASC 310-30 | ||||||||
Allowance for loan losses: | ||||||||
Allowance for loan losses | 6,915 | 7,253 | 7,947 | 8,599 | 9,260 | 9,674 | ||
Balance of loans: | ||||||||
Total loans | 242,025 | 273,845 | ||||||
Commercial real estate | ||||||||
Allowance for loan losses: | ||||||||
Individually evaluated for impairment | 2,595 | 2,647 | ||||||
Collectively evaluated for impairment | 8,663 | 5,741 | ||||||
Allowance for loan losses | 18,779 | 19,418 | ||||||
Balance of loans: | ||||||||
Individually evaluated for impairment | 31,627 | 32,138 | ||||||
Collectively evaluated for impairment | 1,416,436 | 1,285,462 | ||||||
Total loans | 1,661,790 | 1,568,097 | ||||||
Commercial real estate | Accounted for under ASC 310-30 | ||||||||
Allowance for loan losses: | ||||||||
Allowance for loan losses | 7,521 | 8,352 | 11,030 | 12,758 | 14,281 | 17,558 | ||
Balance of loans: | ||||||||
Total loans | 213,727 | 250,497 | ||||||
Commercial and industrial | ||||||||
Allowance for loan losses: | ||||||||
Individually evaluated for impairment | 554 | 2,577 | ||||||
Collectively evaluated for impairment | 10,926 | 12,254 | ||||||
Allowance for loan losses | 12,440 | 16,318 | ||||||
Balance of loans: | ||||||||
Individually evaluated for impairment | 20,601 | 25,106 | ||||||
Collectively evaluated for impairment | 1,241,231 | 1,207,576 | ||||||
Total loans | 1,282,641 | 1,257,406 | ||||||
Commercial and industrial | Accounted for under ASC 310-30 | ||||||||
Allowance for loan losses: | ||||||||
Allowance for loan losses | 960 | 1,078 | 1,487 | 2,501 | 3,119 | 3,264 | ||
Balance of loans: | ||||||||
Total loans | 20,809 | 24,724 | ||||||
Real estate construction | ||||||||
Allowance for loan losses: | ||||||||
Individually evaluated for impairment | 68 | 158 | ||||||
Collectively evaluated for impairment | 1,517 | 863 | ||||||
Allowance for loan losses | 2,214 | 2,699 | ||||||
Balance of loans: | ||||||||
Individually evaluated for impairment | 469 | 833 | ||||||
Collectively evaluated for impairment | 248,763 | 229,987 | ||||||
Total loans | 257,111 | 241,603 | ||||||
Real estate construction | Accounted for under ASC 310-30 | ||||||||
Allowance for loan losses: | ||||||||
Allowance for loan losses | 629 | 1,065 | 1,678 | 1,751 | 2,232 | 2,030 | ||
Balance of loans: | ||||||||
Total loans | 7,879 | 10,783 | ||||||
Consumer | ||||||||
Allowance for loan losses: | ||||||||
Individually evaluated for impairment | 63 | 36 | ||||||
Collectively evaluated for impairment | 2,087 | 926 | ||||||
Allowance for loan losses | 2,217 | 1,086 | ||||||
Balance of loans: | ||||||||
Individually evaluated for impairment | 416 | 448 | ||||||
Collectively evaluated for impairment | 163,262 | 181,930 | ||||||
Total loans | 171,957 | 191,795 | ||||||
Consumer | Accounted for under ASC 310-30 | ||||||||
Allowance for loan losses: | ||||||||
Allowance for loan losses | 67 | $ 101 | 124 | $ 145 | $ 168 | $ 206 | ||
Balance of loans: | ||||||||
Total loans | $ 8,279 | $ 9,417 | ||||||
|
OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Changes in other real estate owned | |||
Balance at the beginning of the period | $ 22,930 | $ 38,908 | |
Additions due to acquisitions | 1,260 | ||
Additions due to the adoption of ASU 2014-04 | 540 | ||
Transfers in | 5,148 | 17,821 | |
Disposals | (10,774) | (17,330) | |
Write-downs | (1,964) | (1,947) | |
Change in valuation allowance | 325 | 0 | |
Balance at the end of the period | 15,665 | 39,252 | |
Changes in repossessed assets | |||
Other real estate owned and repossessed assets acquired in accordance with ASU 2014-04 | 465 | $ 951 | |
Real estate properties for which formal foreclosure proceedings are in process | 6,900 | ||
Repossessed Assets | |||
Changes in other real estate owned | |||
Additions due to acquisitions | 0 | ||
Changes in repossessed assets | |||
Balance at the beginning of the period | 5,329 | 9,835 | |
Transfers in | 1,519 | 847 | |
Capitalized expenditures | 229 | 2,681 | |
Payments received | (701) | (2,854) | |
Disposals | (871) | (318) | |
Write-downs | (607) | (468) | |
Change in valuation allowance | 0 | (2,602) | |
Balance at the end of the period | $ 4,898 | $ 7,121 |
OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS (Details 2) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Valuation Allowance, Other Real Estate Owned | ||||
Provision for valuation allowance | $ 0 | $ 0 | ||
Repossessed Assets | ||||
Valuation Allowance, Other Real Estate Owned | ||||
Beginning balance | $ 0 | 0 | $ 325 | 0 |
Write-downs | 0 | (325) | ||
Provision for valuation allowance | 0 | 0 | ||
Ending balance | 0 | 0 | 0 | 0 |
Valuation Allowance, Repossessed Assets | ||||
Beginning balance | 5,104 | 2,819 | 5,104 | 460 |
Write-downs | 0 | 0 | ||
Provision for valuation allowance | 243 | 2,602 | ||
Ending balance | $ 5,104 | $ 3,062 | $ 5,104 | $ 3,062 |
OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS (Details 3) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Income and expenses related to other real estate owned | ||||
Net gain (loss) on sale | $ 1,132 | $ 1,405 | $ 2,687 | $ 2,820 |
Write-downs | (755) | (585) | (1,964) | (1,947) |
Relief of valuation allowance | 325 | 0 | ||
Provision for valuation allowance | 0 | 0 | ||
Net operating expenses | (276) | (713) | (652) | (1,008) |
Total | 101 | 107 | 396 | (135) |
Repossessed Assets | ||||
Income and expenses related to other real estate owned | ||||
Net gain (loss) on sale | (40) | |||
Write-downs | (468) | |||
Provision for valuation allowance | 0 | 0 | ||
Income and expenses related to repossessed assets | ||||
Net gain (loss) on sale | (89) | (26) | (153) | |
Write-downs | (296) | (274) | (607) | |
Relief of valuation allowance | 0 | 0 | ||
Provision for valuation allowance | (243) | (2,602) | ||
Net operating expenses | (72) | (38) | (156) | (63) |
Total | $ (457) | $ (581) | $ (916) | $ (3,173) |
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Feb. 06, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Net carrying amount of CDIs | ||||||
Net carrying amount | $ 11,593 | $ 11,593 | $ 12,808 | |||
Amortization expense recognized | $ 1,215 | $ 1,314 | ||||
Goodwill, Impairment Loss | 0 | |||||
FHC | ||||||
Net carrying amount of CDIs | ||||||
Increase in goodwill | $ 3,500 | |||||
Core deposit | ||||||
Intangible assets | ||||||
Estimated remaining average useful life | 6 years 1 month 20 days | |||||
Net carrying amount of CDIs | ||||||
Gross carrying amount | 23,068 | $ 23,068 | 23,068 | |||
Accumulated amortization | (11,475) | (11,475) | (10,260) | |||
Net carrying amount | 11,593 | 11,593 | $ 12,808 | |||
Amortization expense recognized | $ 603 | $ 665 | $ 1,200 | $ 1,300 |
LOAN SERVICING RIGHTS (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Activity for loan servicing rights and the related fair value changes | ||||
Fair value, beginning of period | $ 51,348 | $ 54,409 | $ 58,113 | $ 70,598 |
Additions from loans sold with servicing retained | 2,475 | 2,933 | 4,175 | 5,848 |
Reduction from loans and servicing rights sold | (12,702) | |||
Changes in fair value due to reductions from loans paid off during the period | (2,628) | (1,594) | (4,468) | (3,912) |
Changes due to valuation inputs or assumptions | (3,499) | 3,146 | (10,124) | (938) |
Fair value, end of period | 47,696 | 58,894 | 47,696 | 58,894 |
Principal balance of loans serviced | 5,730,078 | 6,023,880 | 5,730,078 | 6,023,880 |
Principal balance of loans sold that are serviced | 1,200,000 | |||
Commercial real estate | ||||
Activity for loan servicing rights and the related fair value changes | ||||
Fair value, beginning of period | 431 | 621 | 475 | 691 |
Additions from loans sold with servicing retained | 4 | 0 | 4 | 0 |
Changes in fair value due to reductions from loans paid off during the period | (11) | (24) | (25) | (53) |
Changes due to valuation inputs or assumptions | (30) | (17) | (60) | (58) |
Fair value, end of period | 394 | 580 | 394 | 580 |
Principal balance of loans serviced | 93,162 | 187,948 | 93,162 | 187,948 |
Mortgage | ||||
Activity for loan servicing rights and the related fair value changes | ||||
Fair value, beginning of period | 50,917 | 53,788 | 57,638 | 69,907 |
Additions from loans sold with servicing retained | 2,471 | 2,933 | 4,171 | 5,848 |
Reduction from loans and servicing rights sold | (12,702) | |||
Changes in fair value due to reductions from loans paid off during the period | (2,617) | (1,570) | (4,443) | (3,859) |
Changes due to valuation inputs or assumptions | (3,469) | 3,163 | (10,064) | (880) |
Fair value, end of period | 47,302 | 58,314 | 47,302 | 58,314 |
Principal balance of loans serviced | $ 5,636,916 | $ 5,835,932 | $ 5,636,916 | $ 5,835,932 |
LOAN SERVICING RIGHTS (Details 2) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Fair Value | |||||
Loan servicing fee income | $ 2,700,000 | $ 2,500,000 | $ 5,400,000 | $ 5,100,000 | |
Commercial Real Estate | |||||
Fair Value | |||||
WA discount rate (as a percent) | 18.48% | 19.18% | |||
WA cost to service/per year | $ 477 | $ 472 | |||
WA float range (as a percent) | 0.56% | 0.56% | |||
Commercial Real Estate | Minimum | |||||
Fair Value | |||||
Prepayment speed (as a percent) | 0.00% | 0.00% | |||
Commercial Real Estate | Maximum | |||||
Fair Value | |||||
Prepayment speed (as a percent) | 50.00% | 50.00% | |||
Mortgage | |||||
Fair Value | |||||
WA discount rate (as a percent) | 9.13% | 9.13% | |||
WA cost to service/per year | $ 61 | $ 61 | |||
WA ancillary income/per year | $ 36 | $ 36 | |||
Mortgage | Minimum | |||||
Fair Value | |||||
Prepayment speed (as a percent) | 0.00% | 0.00% | |||
WA float range (as a percent) | 0.56% | 0.56% | |||
Mortgage | Maximum | |||||
Fair Value | |||||
Prepayment speed (as a percent) | 40.30% | 34.56% | |||
WA float range (as a percent) | 1.01% | 1.68% |
DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Amount of ineffective interest rate swaps included in net income | $ 0 | |
Derivative instruments | ||
Notional Amount | 786,754,000 | $ 559,491,000 |
Gross Derivative Assets | 16,792,000 | 5,468,000 |
Gross Derivative Liabilities | 17,726,000 | 4,579,000 |
Credit valuation adjustments for counterparty credit risk | 758,000 | 208,000 |
Designated as hedges | ||
Derivative instruments | ||
Notional Amount | 37,000,000 | 37,000,000 |
Gross Derivative Assets | 0 | 105,000 |
Gross Derivative Liabilities | 2,578,000 | 397,000 |
Designated as hedges | Interest rate swaps | ||
Derivative instruments | ||
Notional Amount | 37,000,000 | 37,000,000 |
Gross Derivative Assets | 0 | 105,000 |
Gross Derivative Liabilities | 2,578,000 | 397,000 |
Not designated as hedging | ||
Derivative instruments | ||
Notional Amount | 749,754,000 | 522,491,000 |
Gross Derivative Assets | 16,792,000 | 5,363,000 |
Gross Derivative Liabilities | 15,148,000 | 4,182,000 |
Not designated as hedging | Forward contracts related to mortgage loans to be delivered for sale | ||
Derivative instruments | ||
Notional Amount | 135,027,000 | 105,711,000 |
Gross Derivative Assets | 0 | 0 |
Gross Derivative Liabilities | 1,303,000 | 38,000 |
Not designated as hedging | Interest rate lock commitments | ||
Derivative instruments | ||
Notional Amount | 121,893,000 | 62,081,000 |
Gross Derivative Assets | 3,482,000 | 1,220,000 |
Gross Derivative Liabilities | 0 | 0 |
Not designated as hedging | Customer-initiated derivatives | ||
Derivative instruments | ||
Notional Amount | 492,834,000 | 354,699,000 |
Gross Derivative Assets | 13,310,000 | 4,143,000 |
Gross Derivative Liabilities | $ 13,845,000 | $ 4,144,000 |
DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Details 2) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Derivative instruments | ||||
Net gains (losses) relating to derivative instruments | $ (417) | $ (269) | $ 463 | $ 2,170 |
Forward contracts related to mortgage loans to be delivered for sale | Net gain on sales of loans | ||||
Derivative instruments | ||||
Net gains (losses) relating to derivative instruments | (693) | 1,473 | (1,265) | 1,666 |
Interest rate lock commitments | Net gain on sales of loans | ||||
Derivative instruments | ||||
Net gains (losses) relating to derivative instruments | 574 | (1,620) | 2,262 | 542 |
Customer-initiated derivatives | Other noninterest income | ||||
Derivative instruments | ||||
Net gains (losses) relating to derivative instruments | $ (298) | $ (122) | $ (534) | $ (38) |
DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Details 3) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Derivative instruments | ||||
Amount of gain (loss) recognized in other comprehensive income (Effective portion) | $ (900,000) | $ 558,000 | $ (2,581,000) | $ 233,000 |
Amount of gain (loss) reclassified from other comprehensive income to interest income or expense (Effective portion) | (147,000) | (104,000) | (295,000) | (192,000) |
Amount of gain (loss) recognized in other non interest income (Ineffective portion) | 0 | |||
Interest rate swaps | Designated as hedges | Cash flow hedges | ||||
Derivative instruments | ||||
Amount of gain (loss) recognized in other comprehensive income (Effective portion) | (900,000) | 558,000 | (2,581,000) | 233,000 |
Amount of gain (loss) reclassified from other comprehensive income to interest income or expense (Effective portion) | (147,000) | (104,000) | (295,000) | (192,000) |
Amount of gain (loss) recognized in other non interest income (Ineffective portion) | 0 | $ 0 | 0 | $ 0 |
Amount of gain (loss) expected to be reclassified in the next twelve months | $ (569,000) | $ (569,000) |
DERIVATIVE INSTRUMENTS AND BALANCE SHEET OFFSETTING (Details 4) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Offsetting derivative assets | ||
Gross amounts recognized | $ 16,792 | $ 5,468 |
Offsetting derivative liabilities | ||
Gross amounts recognized | 17,726 | 4,579 |
Interest rate swaps and customer-initiated derivatives | ||
Offsetting derivative assets | ||
Gross amounts recognized | 13,310 | 4,248 |
Financial instruments | 0 | 0 |
Net amounts presented in the statement of financial position | 13,310 | 4,248 |
Gross amounts not offset in the statement of financial position | ||
Financial Instruments | (13,310) | (4,248) |
Collateral (received)/posted | 13,467 | 5,887 |
Net Amount | 13,467 | 5,887 |
Offsetting derivative liabilities | ||
Gross amounts recognized | 16,423 | 4,541 |
Financial instruments | 0 | 0 |
Net amounts presented in the statement of financial position | 16,423 | 4,541 |
Gross amounts not offset in the statement of financial position | ||
Financial Instruments | (13,310) | (4,248) |
Collateral (received)/posted | 3,113 | 293 |
Net Amount | $ 0 | $ 0 |
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Allowance for credit losses on lending-related commitments | $ 673 | $ 622 |
Contingencies and Guarantees | ||
Total commitments | 1,411,399 | 1,213,471 |
Fixed Rate | ||
Contingencies and Guarantees | ||
Total commitments | 657,344 | 719,568 |
Variable Rate | ||
Contingencies and Guarantees | ||
Total commitments | 754,055 | 493,903 |
Commitments to extend credit | ||
Contingencies and Guarantees | ||
Total commitments | 1,346,007 | 1,147,370 |
Commitments to extend credit | Fixed Rate | ||
Contingencies and Guarantees | ||
Total commitments | 595,921 | 658,268 |
Commitments to extend credit | Variable Rate | ||
Contingencies and Guarantees | ||
Total commitments | 750,086 | 489,102 |
Standby letters of credit | ||
Contingencies and Guarantees | ||
Total commitments standby letters of credit | 65,392 | 66,101 |
Standby letters of credit | Fixed Rate | ||
Contingencies and Guarantees | ||
Total commitments standby letters of credit | 61,423 | 61,300 |
Standby letters of credit | Variable Rate | ||
Contingencies and Guarantees | ||
Total commitments standby letters of credit | $ 3,969 | $ 4,801 |
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details 2) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Contingencies and Guarantees | ||
Warranty liabilities | $ 1,600 | $ 1,300 |
Performance guarantee | ||
Contingencies and Guarantees | ||
Outstanding balance of loans | 21,700 | 25,200 |
Maximum potential amount of undiscounted future payments | 20,500 | 19,400 |
Recourse liability | 100 | 125 |
Standby letters of credit | ||
Contingencies and Guarantees | ||
Standby letters of credit outstanding | $ 65,400 | $ 66,100 |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Short-term borrowings and long-term debt | ||
Amount, short-term borrowings | $ 525,960 | $ 348,998 |
Amount, long-term debt | 296,656 | 464,057 |
Amount, short-term borrowings and long-term debt | $ 822,616 | $ 813,055 |
Weighted Average Rate, short-term borrowings (as a percent) | 0.61% | 0.69% |
Weighted Average Rate, long-term debt (as a percent) | 2.19% | 1.73% |
Weighted Average Rate, short-term borrowings and long-term debt (as a percent) | 1.18% | 1.28% |
Amortized Cost | $ 898,658 | $ 885,249 |
Mortgage-backed securities | ||
Short-term borrowings and long-term debt | ||
Blanket lien arrangement | 1,300,000 | |
Specific lien arrangement | 763,700 | |
Additional maximum borrowing capacity | $ 141,000 | |
Maximum | ||
Short-term borrowings and long-term debt | ||
Interest rate (as a percent) | 0.81% | |
FHLB advances short-term fixed-rate notes: | ||
Short-term borrowings and long-term debt | ||
Amount, short-term borrowings | $ 425,000 | $ 300,000 |
Weighted Average Rate, short-term borrowings (as a percent) | 0.53% | 0.58% |
FHLB advances short-term fixed-rate notes: | Minimum | ||
Short-term borrowings and long-term debt | ||
Interest rate (as a percent) | 0.47% | |
FHLB advances: 0.75% variable-rate notes | ||
Short-term borrowings and long-term debt | ||
Amount, short-term borrowings | $ 50,000 | $ 0 |
Weighted Average Rate, short-term borrowings (as a percent) | 0.21% | 0.00% |
Interest rate (as a percent) | 0.21% | |
Securities sold under agreements to repurchase: 0.05%-0.10% variable-rate notes | ||
Short-term borrowings and long-term debt | ||
Amount, short-term borrowings | $ 13,460 | $ 18,998 |
Weighted Average Rate, short-term borrowings (as a percent) | 0.10% | 0.10% |
Interest rate (as a percent) | 0.10% | |
FHLB advances long-term fixed-rate notes | ||
Short-term borrowings and long-term debt | ||
Amount, long-term debt | $ 227,190 | $ 393,851 |
Weighted Average Rate, long-term debt (as a percent) | 1.65% | 1.34% |
Advances payable | $ 223,900 | $ 389,600 |
Purchase accounting premiums | $ 3,300 | 4,300 |
FHLB advances long-term fixed-rate notes | Minimum | ||
Short-term borrowings and long-term debt | ||
Interest rate (as a percent) | 0.59% | |
FHLB advances long-term fixed-rate notes | Maximum | ||
Short-term borrowings and long-term debt | ||
Interest rate (as a percent) | 7.44% | |
Securities sold under agreements to repurchase: 4.11%-4.30% fixed-rate notes due 2016 to 2037 | ||
Short-term borrowings and long-term debt | ||
Amount, long-term debt | $ 53,975 | $ 54,800 |
Weighted Average Rate, long-term debt (as a percent) | 4.19% | 4.19% |
Purchase accounting premiums | $ 4,000 | $ 4,800 |
Balance amount | 50,000 | 50,000 |
Securities sold under agreements to repurchase: 4.11%-4.30% fixed-rate notes due 2016 to 2037 | Mortgage-backed securities | ||
Short-term borrowings and long-term debt | ||
Amortized Cost | $ 60,300 | |
Securities sold under agreements to repurchase: 4.11%-4.30% fixed-rate notes due 2016 to 2037 | Minimum | ||
Short-term borrowings and long-term debt | ||
Interest rate (as a percent) | 4.11% | |
Securities sold under agreements to repurchase: 4.11%-4.30% fixed-rate notes due 2016 to 2037 | Maximum | ||
Short-term borrowings and long-term debt | ||
Interest rate (as a percent) | 4.30% | |
Subordinated notes related to trust preferred securities: Floating-rate based on three-month LIBOR plus 1.45% - 2.85% due 2034 to 2035 | ||
Short-term borrowings and long-term debt | ||
Amount, long-term debt | $ 10,938 | $ 10,865 |
Weighted Average Rate, long-term debt (as a percent) | 2.88% | 2.65% |
Variable rate basis | three-month LIBOR | |
Balance amount | $ 15,000 | $ 15,000 |
Purchase accounting discounts | $ 4,100 | 4,100 |
Subordinated notes related to trust preferred securities: Floating-rate based on three-month LIBOR plus 1.45% - 2.85% due 2034 to 2035 | Minimum | ||
Short-term borrowings and long-term debt | ||
Spread on variable rate (as a percent) | 1.45% | |
Subordinated notes related to trust preferred securities: Floating-rate based on three-month LIBOR plus 1.45% - 2.85% due 2034 to 2035 | Maximum | ||
Short-term borrowings and long-term debt | ||
Spread on variable rate (as a percent) | 2.85% | |
Subordinated notes related to trust preferred securities: floating-rate based on three-month LIBOR plus 3.25% due September 2032 (5) | ||
Short-term borrowings and long-term debt | ||
Amount, long-term debt | $ 4,553 | $ 4,541 |
Weighted Average Rate, long-term debt (as a percent) | 3.88% | 3.58% |
Variable rate basis | three-month LIBOR | |
Spread on variable rate (as a percent) | 3.25% | |
Balance amount | $ 5,000 | $ 5,000 |
Purchase accounting discounts | 447 | 459 |
FHLB collateralized advances for fixed rate notes: | ||
Short-term borrowings and long-term debt | ||
Amount of collateral for total borrowing capacity | 2,000,000 | |
Holding Company | ||
Short-term borrowings and long-term debt | ||
Amount, short-term borrowings | 37,500 | 30,000 |
Amount, long-term debt | 15,491 | 15,406 |
Holding Company | Line of Credit | ||
Short-term borrowings and long-term debt | ||
Amount, short-term borrowings | $ 37,500 | $ 30,000 |
Weighted Average Rate, short-term borrowings (as a percent) | 2.21% | 2.18% |
Variable rate basis | one-month Libor | |
Spread on variable rate (as a percent) | 1.75% |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Details 2) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
FHLB advances | ||||
Short-term borrowings | ||||
Average daily balance | $ 366,483 | $ 33,517 | $ 331,181 | $ 26,022 |
Average interest rate during the period (as a percent) | 0.53% | 0.27% | 0.59% | 0.27% |
Maximum month-end balance | $ 475,000 | $ 200,000 | $ 475,000 | $ 200,000 |
Securities sold under agreement to repurchase | ||||
Short-term borrowings | ||||
Average daily balance | $ 19,166 | $ 19,390 | $ 19,526 | $ 19,911 |
Average interest rate during the period (as a percent) | 0.10% | 0.10% | 0.10% | 0.10% |
Maximum month-end balance | $ 21,661 | $ 23,945 | $ 21,980 | $ 23,945 |
Federal funds purchased | ||||
Short-term borrowings | ||||
Average daily balance | 0 | 0 | 0 | $ 696 |
Average interest rate during the period (as a percent) | 0.31% | |||
Maximum month-end balance | 0 | 0 | 0 | $ 126,000 |
Line of Credit | Holding Company | ||||
Short-term borrowings | ||||
Average daily balance | $ 37,500 | $ 22,912 | $ 33,832 | $ 16,271 |
Average interest rate during the period (as a percent) | 2.19% | 3.18% | 2.19% | 3.18% |
Maximum month-end balance | $ 37,500 | $ 30,000 | $ 37,500 | $ 30,000 |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Details 3) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Remaining Contractual Maturities of the Agreements | ||
Total borrowings | $ 525,960 | $ 348,998 |
Amounts related to securities sold under agreements to repurchase not included in offsetting disclosure in Footnote 10 | 63,460 | |
Securities Sold under Agreements to Repurchase | ||
Remaining Contractual Maturities of the Agreements | ||
Overnight and continuous | 13,460 | |
Up to 30 Days | 0 | |
30-90 Days | 10,000 | |
Greater than 90 Days | 40,000 | |
Total borrowings | $ 63,460 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Amount | ||||
Tax based on federal statutory rate | $ 8,924 | $ 9,004 | $ 16,821 | $ 13,860 |
Effect of: | ||||
Tax exempt income | (787) | (644) | (1,549) | (1,275) |
State taxes, net of federal benefit | 204 | 194 | 384 | 460 |
Change in valuation allowance | (225) | 0 | (495) | 0 |
Tax settlement with the Internal Revenue Service | 0 | 0 | (4,306) | 0 |
Excess tax benefits | (2,612) | 0 | (4,084) | 0 |
Transaction costs | 209 | 18 | 475 | 47 |
Other, net | (369) | (393) | (494) | (472) |
Income tax expense | $ 5,344 | $ 8,179 | $ 6,752 | $ 12,620 |
Rate | ||||
Tax based on federal statutory rate (as a percent) | 35.00% | 35.00% | 35.00% | 35.00% |
Effect of: | ||||
Tax exempt income (as a percent) | (3.10%) | (2.60%) | (3.20%) | (3.20%) |
State taxes, net of federal benefit (as a percent) | 0.80% | 0.80% | 0.80% | 1.20% |
Change in valuation allowance (as a percent) | (0.90%) | 0.00% | (1.00%) | 0.00% |
Tax settlement with the Internal Revenue Service (as a percent) | 0.00% | 0.00% | (9.00%) | 0.00% |
Excess tax benefits (as a percent) | (10.20%) | (0.00%) | (8.50%) | (0.00%) |
Transaction costs (as a percent) | 0.80% | 0.10% | 1.00% | 0.10% |
Other, net (as a percent) | (1.40%) | (1.50%) | (1.10%) | (1.20%) |
Income tax expense (benefit) (as a percent) | 21.00% | 31.80% | 14.00% | 31.90% |
INCOME TAXES (Details 2) $ in Millions |
Jun. 30, 2016
USD ($)
|
---|---|
Domestic Tax Authority | IRS | |
Income Tax Examination [Line Items] | |
Tax Settlement with IRS | $ 4.3 |
STOCK-BASED COMPENSATION (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of common stock issued or issuable (in shares) | 9,800,000 | |
Option shares available for grant (in shares) | 1,500,000 | |
Granted (in shares) | 0 | 0 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value (in dollars per share) | $ 18.13 | |
Total intrinsic value of stock options exercised | $ 14,200,000 | $ 5,400,000 |
Cash received from exercise of options | $ 1,800,000 | $ 210,000 |
Shares issued on stock option exercises upon receipt of cash (in shares) | 259,000 | 35,000 |
Number of shares issued under the net-settlement option (in shares) | 518,000 | 210,000 |
Tax benefit realized from option exercises | $ 4,100,000 | $ 1,400,000 |
Total unrecognized compensation cost related to stock options | 0 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation cost | $ 12,100,000 | |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 3 years 1 month 1 day | |
Restricted Stock | Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Restricted Stock | Cliff Vesting | Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 5 years | |
Accelerated vesting period after change in control | 1 year | |
Restricted Stock | Incremental Vesting | Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years |
STOCK-BASED COMPENSATION (Details 2) $ / shares in Units, shares in Thousands, $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
$ / shares
shares
| |
Number of Shares | |
Outstanding at the beginning of the period (in shares) | shares | 7,235 |
Exercised (in shares) | shares | (1,271) |
Outstanding at the end of the period (in shares) | shares | 5,964 |
Options fully vested and expected to vest (in shares) | shares | 5,964 |
Exercisable at the end of the period (in shares) | shares | 5,964 |
Weighted Average Exercise Price per Share | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 6.97 |
Exercised (in dollars per share) | $ / shares | 6.98 |
Outstanding at the end of the period (in dollars per share) | $ / shares | 6.97 |
Options fully vested and expected to vest (in dollars per share) | $ / shares | 6.97 |
Exercisable at the end of the period (in dollars per share) | $ / shares | $ 6.97 |
Weighted Average Remaining Contractual Life | |
Outstanding at the end of the period | 5 years 2 months 11 days |
Options fully vested and expected to vest | 5 years 2 months 11 days |
Exercisable at the end of the period | 5 years 2 months 11 days |
Aggregate Intrinsic Value | |
Outstanding at the end of the period | $ | $ 72,763 |
Options fully vested and expected to vest | $ | 72,763 |
Exercisable at the end of the period | $ | $ 72,763 |
STOCK-BASED COMPENSATION (Details 3) - Restricted Stock shares in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2016
$ / shares
shares
| |
Shares | |
Nonvested at beginning of period (in shares) | shares | 726 |
Granted (in shares) | shares | 326 |
Vested (in shares) | shares | (17) |
Forfeited (in shares) | shares | (23) |
Nonvested at end of period (in shares) | shares | 1,012 |
Weighted-Average Grant-Date Fair Value | |
Nonvested at beginning of period (in dollars per share) | $ / shares | $ 14.82 |
Granted (in dollars per share) | $ / shares | 16.65 |
Vested (in dollars per share) | $ / shares | 16.56 |
Forfeited (in dollars per share) | $ / shares | 15.37 |
Nonvested at end of period (in dollars per share) | $ / shares | $ 15.36 |
STOCK-BASED COMPENSATION (Details 4) - Restricted Stock - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock expense | $ 845 | $ 515 | $ 1,543 | $ 866 |
Salary and Employee Benefits | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock expense | 792 | 441 | 1,419 | 739 |
Professional Fee | Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock expense | $ 53 | $ 74 | $ 124 | $ 127 |
REGULATORY CAPITAL MATTERS (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jul. 11, 2016 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
REGULATORY CAPITAL MATTERS | ||||||
Final value of the capital conservation buffer to be reached at the end of the phase-in period | 2.50% | 2.50% | ||||
Current value of the capital conservation buffer | 0.625% | 0.625% | ||||
Capital conservation buffer phase-in period | 4 years | |||||
Total capital to risk-weighted assets | ||||||
Actual Amount | $ 753,175,000 | $ 753,175,000 | $ 718,666,000 | |||
Actual Ratio | 13.30% | 13.30% | 13.00% | |||
For Capital Adequacy Purposes Amount | $ 453,001,000 | $ 453,001,000 | $ 442,170,000 | |||
For Capital Adequacy Purposes Ratio | 8.00% | 8.00% | 8.00% | |||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 488,392,000 | $ 488,392,000 | ||||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 8.60% | 8.60% | ||||
Common equity tier 1 capital | ||||||
Actual Amount | $ 699,266,000 | $ 699,266,000 | $ 662,668,000 | |||
Actual Ratio | 12.40% | 12.40% | 12.00% | |||
For Capital Adequacy Purposes Amount | $ 254,813,000 | $ 254,813,000 | $ 248,721,000 | |||
For Capital Adequacy Purposes Ratio | 4.50% | 4.50% | 4.50% | |||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 290,204,000 | $ 290,204,000 | ||||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 5.10% | 5.10% | ||||
Tier 1 capital to risk-weighted assets | ||||||
Actual Amount | $ 699,266,000 | $ 699,266,000 | $ 662,668,000 | |||
Actual Ratio | 12.40% | 12.40% | 12.00% | |||
For Capital Adequacy Purposes Amount | $ 339,751,000 | $ 339,751,000 | $ 331,628,000 | |||
For Capital Adequacy Purposes Ratio | 6.00% | 6.00% | 6.00% | |||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 375,142,000 | $ 375,142,000 | ||||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 6.60% | 6.60% | ||||
Tier 1 leverage ratio | ||||||
Actual Amount | $ 699,266,000 | $ 699,266,000 | $ 662,668,000 | |||
Actual Ratio | 10.60% | 10.60% | 10.20% | |||
For Capital Adequacy Purposes Amount | $ 265,150,000 | $ 265,150,000 | $ 259,694,000 | |||
For Capital Adequacy Purposes Ratio | 4.00% | 4.00% | 4.00% | |||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 265,150,000 | $ 265,150,000 | ||||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 4.00% | 4.00% | ||||
Dividend income from subsidiary | $ 0 | $ 0 | $ 15,000,000 | |||
Dividend declared (in dollars per share) | $ 0.05 | $ 0.01 | $ 0.10 | $ 0.02 | ||
Subsequent Event | ||||||
Tier 1 leverage ratio | ||||||
Dividend declared (in dollars per share) | $ 0.05 | |||||
Talmer Bank And Trust [Member] | ||||||
Total capital to risk-weighted assets | ||||||
Actual Amount | $ 783,093,000 | $ 783,093,000 | $ 740,338,000 | |||
Actual Ratio | 13.90% | 13.90% | 13.50% | |||
For Capital Adequacy Purposes Amount | $ 452,253,000 | $ 452,253,000 | $ 439,255,000 | |||
For Capital Adequacy Purposes Ratio | 8.00% | 8.00% | 8.00% | |||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 487,585,000 | $ 487,585,000 | ||||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 8.60% | 8.60% | ||||
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 565,316,000 | $ 565,316,000 | $ 549,068,000 | |||
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% | 10.00% | |||
Common equity tier 1 capital | ||||||
Actual Amount | $ 729,184,000 | $ 729,184,000 | $ 684,340,000 | |||
Actual Ratio | 12.90% | 12.90% | 12.50% | |||
For Capital Adequacy Purposes Amount | $ 254,392,000 | $ 254,392,000 | $ 247,081,000 | |||
For Capital Adequacy Purposes Ratio | 4.50% | 4.50% | 4.50% | |||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 289,724,000 | $ 289,724,000 | ||||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 5.10% | 5.10% | ||||
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 367,455,000 | $ 367,455,000 | $ 356,894,000 | |||
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% | 6.50% | |||
Tier 1 capital to risk-weighted assets | ||||||
Actual Amount | $ 729,184,000 | $ 729,184,000 | $ 684,340,000 | |||
Actual Ratio | 12.90% | 12.90% | 12.50% | |||
For Capital Adequacy Purposes Amount | $ 339,189,000 | $ 339,189,000 | $ 329,441,000 | |||
For Capital Adequacy Purposes Ratio | 6.00% | 6.00% | 6.00% | |||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 374,522,000 | $ 374,522,000 | ||||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 6.60% | 6.60% | ||||
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 452,253,000 | $ 452,253,000 | $ 439,255,000 | |||
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% | 8.00% | |||
Tier 1 leverage ratio | ||||||
Actual Amount | $ 729,184,000 | $ 729,184,000 | $ 684,340,000 | |||
Actual Ratio | 10.90% | 10.90% | 10.50% | |||
For Capital Adequacy Purposes Amount | $ 267,869,000 | $ 267,869,000 | $ 259,784,000 | |||
For Capital Adequacy Purposes Ratio | 4.00% | 4.00% | 4.00% | |||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Amount | $ 267,869,000 | $ 267,869,000 | ||||
For Capital Adequacy Purposes Plus Capital Conservation Buffer Ratio | 4.00% | 4.00% | ||||
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 334,837,000 | $ 334,837,000 | $ 324,730,000 | |||
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% | 5.00% | |||
Talmer Bank And Trust [Member] | Minimum | ||||||
Tier 1 leverage ratio | ||||||
Surplus required for declaration or payment of dividend as a percentage of capital remaining after dividend payment (as a percent) | 20.00% | 20.00% |
PARENT COMPANY FINANCIAL STATEMENTS (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Assets | ||||
Cash and cash equivalents | $ 460,234 | $ 387,323 | $ 410,558 | $ 253,736 |
Income tax benefit | 165,948 | 177,183 | ||
Other assets | 66,759 | 45,006 | ||
Total assets | 6,912,722 | 6,595,890 | ||
Liabilities | ||||
Short-term borrowings | 525,960 | 348,998 | ||
Long-term debt | 296,656 | 464,057 | ||
Total liabilities | 6,143,747 | 5,870,675 | ||
Shareholders’ equity | 768,975 | 725,215 | 766,406 | 761,607 |
Total liabilities and shareholders’ equity | 6,912,722 | 6,595,890 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 10,762 | 12,581 | $ 10,628 | $ 9,497 |
Investment in subsidiary | 802,483 | 750,713 | ||
Income tax benefit | 10,189 | 8,504 | ||
Other assets | 2,493 | 994 | ||
Total assets | 825,927 | 772,792 | ||
Liabilities | ||||
Short-term borrowings | 37,500 | 30,000 | ||
Long-term debt | 15,491 | 15,406 | ||
Accrued expenses and other liabilities | 3,961 | 2,171 | ||
Total liabilities | 56,952 | 47,577 | ||
Shareholders’ equity | 768,975 | 725,215 | ||
Total liabilities and shareholders’ equity | $ 825,927 | $ 772,792 |
PARENT COMPANY FINANCIAL STATEMENTS (Details 2) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Income | ||||
Dividend income from subsidiary | $ 0 | $ 0 | $ 15,000,000 | |
Other noninterest income | 3,726,000 | 3,713,000 | $ 7,460,000 | 7,703,000 |
Expenses | ||||
Salary and employee benefits | 26,913,000 | 28,685,000 | 52,726,000 | 57,897,000 |
Professional service fees | 2,547,000 | 3,275,000 | 5,837,000 | 6,818,000 |
Insurance expense | 1,485,000 | 1,527,000 | 3,035,000 | 3,057,000 |
Marketing expense | 1,158,000 | 1,483,000 | 2,687,000 | 2,578,000 |
Interest on short-term borrowings | 678,000 | 209,000 | 1,335,000 | 288,000 |
Interest on long-term debt | 842,000 | 914,000 | 1,842,000 | 1,714,000 |
Other | 4,987,000 | 6,725,000 | 9,643,000 | 15,125,000 |
Income tax benefit | (5,344,000) | (8,179,000) | (6,752,000) | (12,620,000) |
Net income | 20,153,000 | 17,548,000 | 41,308,000 | 26,981,000 |
Total comprehensive income, net of tax | 24,429,000 | 13,144,000 | 49,311,000 | 25,367,000 |
Parent Company | ||||
Income | ||||
Dividend income from subsidiary | 0 | 0 | 0 | 15,000,000 |
Other noninterest income | 21,000 | 4,000 | 26,000 | 9,000 |
Total income | 21,000 | 4,000 | 26,000 | 15,009,000 |
Expenses | ||||
Salary and employee benefits | 1,927,000 | 1,671,000 | 3,615,000 | 2,892,000 |
Merger and acquisition expense | 308,000 | 159,000 | 3,182,000 | 1,155,000 |
Professional service fees | 287,000 | 491,000 | 802,000 | 868,000 |
Insurance expense | 114,000 | 33,000 | 229,000 | 113,000 |
Marketing expense | 32,000 | 35,000 | 47,000 | 49,000 |
Interest on short-term borrowings | 208,000 | 187,000 | 375,000 | 261,000 |
Interest on long-term debt | 202,000 | 182,000 | 400,000 | 344,000 |
Other | 39,000 | 59,000 | 92,000 | 173,000 |
Total expenses | 3,117,000 | 2,817,000 | 8,742,000 | 5,855,000 |
Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries | (3,096,000) | (2,813,000) | (8,716,000) | 9,154,000 |
Income tax benefit | 3,812,000 | 1,082,000 | 7,098,000 | 1,735,000 |
Equity in undistributed earnings of subsidiaries | 19,437,000 | 19,279,000 | 42,926,000 | 16,092,000 |
Net income | 20,153,000 | 17,548,000 | 41,308,000 | 26,981,000 |
Total comprehensive income, net of tax | $ 24,429,000 | $ 13,144,000 | $ 49,311,000 | $ 25,367,000 |
PARENT COMPANY FINANCIAL STATEMENTS (Details 3) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Cash flows from operating activities | ||||
Net income | $ 20,153 | $ 17,548 | $ 41,308 | $ 26,981 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Stock-based compensation expense | 1,543 | 866 | ||
(Increase) decrease in other assets, net | (12,555) | 2,399 | ||
Increase (decrease) in accrued expenses and other liabilities, net | 8,598 | (1,286) | ||
Net cash from operating activities | 72,697 | 24,995 | ||
Cash flows from investing activities | ||||
Net cash from (used in) investing activities | (254,880) | (169,121) | ||
Cash flows from financing activities | ||||
Issuance of common stock and restricted stock awards | 1,727 | 574 | ||
Repurchase of warrants to repurchase 2.5 million shares, at fair value | 0 | (19,892) | ||
Cash dividends paid on common stock | (6,676) | (1,415) | ||
Repayment of long-term debt | 0 | (3,500) | ||
Net cash from financing activities | 255,094 | 300,948 | ||
Net change in cash and cash equivalents | 72,911 | 156,822 | ||
Beginning cash and cash equivalents | 387,323 | 253,736 | ||
Ending cash and cash equivalents | 460,234 | 410,558 | $ 460,234 | $ 410,558 |
Cash dividends declared on common stock (in dollars per share) | $ 0.10 | $ 0.02 | ||
Common Stock | ||||
Cash flows from financing activities | ||||
Number of shares repurchased (in share) | 0 | 2,500,000 | ||
Parent Company | ||||
Cash flows from operating activities | ||||
Net income | 20,153 | 17,548 | $ 41,308 | $ 26,981 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in undistributed earnings of subsidiaries | (42,926) | (16,092) | ||
Stock-based compensation expense | 702 | 371 | ||
Increase in income tax benefit | (1,685) | (71) | ||
(Increase) decrease in other assets, net | (1,499) | 168 | ||
Increase (decrease) in accrued expenses and other liabilities, net | 1,875 | (4,194) | ||
Net cash from operating activities | (2,225) | 7,163 | ||
Cash flows from investing activities | ||||
Cash used in acquisitions | 0 | (13,323) | ||
Refund of investment | 0 | 2,225 | ||
Net cash from (used in) investing activities | 0 | (11,098) | ||
Cash flows from financing activities | ||||
Issuance of common stock and restricted stock awards | (418) | (127) | ||
Repurchase of warrants to repurchase 2.5 million shares, at fair value | 0 | (19,892) | ||
Cash dividends paid on common stock | (6,676) | (1,415) | ||
Draw on senior unsecured line of credit | 7,500 | 30,000 | ||
Repayment of long-term debt | 0 | (3,500) | ||
Net cash from financing activities | 406 | 5,066 | ||
Net change in cash and cash equivalents | (1,819) | 1,131 | ||
Beginning cash and cash equivalents | 12,581 | 9,497 | ||
Ending cash and cash equivalents | $ 10,762 | $ 10,628 | $ 10,762 | $ 10,628 |
Cash dividends declared on common stock (in dollars per share) | $ 0.10 | $ 0.02 | ||
Parent Company | Common Stock | ||||
Cash flows from financing activities | ||||
Number of shares repurchased (in share) | 0 | 0 |
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Numerator for basic and diluted EPS: | ||||
Net income | $ 20,153 | $ 17,548 | $ 41,308 | $ 26,981 |
Net income allocated to participating securities | 313 | 174 | 583 | 211 |
Net income allocated to shareholders | $ 19,840 | $ 17,374 | $ 40,725 | $ 26,770 |
Weighted average common shares - issued (in shares) | 67,050,000 | 71,006,000 | 66,776,000 | 70,814,000 |
Average unvested restricted share awards (in shares) | (1,039,000) | (705,000) | (952,000) | (555,000) |
Weighted average common shares outstanding - basic (in shares) | 66,011,000 | 70,301,000 | 65,824,000 | 70,259,000 |
Effect of dilutive securities - | ||||
Employee and director stock options (in shares) | 3,996,000 | 4,339,000 | 4,048,000 | 4,174,000 |
Warrants (in shares) | 19,000 | 260,000 | 17,000 | 613,000 |
Weighted average common shares outstanding - diluted (in shares) | 70,026,000 | 74,900,000 | 69,889,000 | 75,046,000 |
EPS available to common shareholders | ||||
Basic (in dollars per share) | $ 0.30 | $ 0.25 | $ 0.62 | $ 0.38 |
Diluted (in dollars per share) | 0.28 | 0.23 | 0.58 | 0.36 |
Other information on EPS | ||||
Average stock valuation (in dollars per share) | $ 19.25 | $ 16.14 | $ 18.10 | $ 15.12 |
Warrants repurchase | ||||
Other information on EPS | ||||
Shares not included in the computation of diluted net income available to common shareholders (in shares) | 0 | 0 | 0 | 0 |
Options | ||||
Other information on EPS | ||||
Shares not included in the computation of diluted net income available to common shareholders (in shares) | 0 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Mar. 31, 2016 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 725,215 | $ 761,607 | $ 725,215 | $ 761,607 | ||
Other comprehensive income (loss) before reclassifications | $ 4,181 | $ (4,469) | 8,028 | (1,805) | ||
Amounts reclassified from accumulated other comprehensive income | 95 | 65 | (25) | 191 | ||
Other comprehensive income (loss), net of tax | 4,276 | (4,404) | 8,003 | (1,614) | ||
Ending balance | 768,975 | 766,406 | 768,975 | 766,406 | ||
Net gain (loss) on sales of securities | 0 | 0 | 6 | 6 | 333 | (101) |
Income tax expense (benefit) with the reclassification adjustments related to available-for-sale securities | 0 | 3 | 117 | (35) | ||
Other brokered funds included in total interest expense | 147 | 104 | 295 | 192 | ||
Income tax expense (benefit) associated with the reclassification adjustments related to cash flow hedges | (52) | (36) | (104) | (67) | ||
Unrealized gains (losses) on securities available-for-sale, net of tax | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | 8,312 | 3,589 | 6,939 | 3,995 | 3,589 | 3,995 |
Other comprehensive income (loss) before reclassifications | 4,766 | (4,831) | 9,705 | (1,956) | ||
Amounts reclassified from accumulated other comprehensive income | 0 | (3) | (216) | 66 | ||
Other comprehensive income (loss), net of tax | 4,766 | (4,834) | 9,489 | (1,890) | ||
Ending balance | 13,078 | 8,312 | 2,105 | 6,939 | 13,078 | 2,105 |
Unrealized gains (losses) on cash flow hedges, net of tax | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | (1,186) | (190) | (299) | (145) | (190) | (145) |
Other comprehensive income (loss) before reclassifications | (585) | 362 | (1,677) | 151 | ||
Amounts reclassified from accumulated other comprehensive income | 95 | 68 | 191 | 125 | ||
Other comprehensive income (loss), net of tax | (490) | 430 | (1,486) | 276 | ||
Ending balance | (1,676) | (1,186) | 131 | (299) | (1,676) | 131 |
Total unrealized gains (losses), net of tax | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | 7,126 | 3,399 | 6,640 | 3,850 | 3,399 | 3,850 |
Other comprehensive income (loss), net of tax | 8,003 | (1,614) | ||||
Ending balance | $ 11,402 | $ 7,126 | $ 2,236 | $ 6,640 | $ 11,402 | $ 2,236 |
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