Michigan
|
38-2032782
|
|
(State or jurisdiction of Incorporation or Organization)
|
(I.R.S. Employer Identification Number)
|
Large accelerated filer ☐
|
Accelerated filer☒
|
Non-accelerated filer☐
|
Smaller reporting company☐
|
Common stock, no par value
|
|
22,970,455
|
Class
|
Outstanding at May 5, 2015
|
Number(s)
|
||
PART I -
|
Financial Information
|
|
Item 1.
|
3 | |
4 | ||
5 | ||
6 | ||
7 | ||
8-53
|
||
Item 2.
|
54-76
|
|
Item 3.
|
77
|
|
Item 4.
|
77
|
|
PART II -
|
Other Information
|
|
Item 1A
|
78
|
|
Item 2.
|
78
|
|
Item 6.
|
79
|
• | economic, market, operational, liquidity, credit, and interest rate risks associated with our business; |
• | economic conditions generally and in the financial services industry, particularly economic conditions within Michigan and the regional and local real estate markets in which our bank operates; |
• | the failure of assumptions underlying the establishment of, and provisions made to, our allowance for loan losses; |
• | the failure of assumptions underlying our estimate of probable incurred losses from vehicle service contract payment plan counterparty contingencies, including our assumptions regarding future cancellations of vehicle service contracts, the value to us of collateral that may be available to recover funds due from our counterparties, and our ability to enforce the contractual obligations of our counterparties to pay amounts owing to us; |
• | increased competition in the financial services industry, either nationally or regionally; |
• | our ability to achieve loan and deposit growth; |
• | volatility and direction of market interest rates; |
• | the continued services of our management team; and |
• | implementation of new legislation, which may have significant effects on us and the financial services industry. |
Part I | Item 1. |
March 31,
2015
|
December 31,
2014
|
|||||||
(unaudited)
|
||||||||
(In thousands, except share amounts)
|
||||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
46,435
|
$
|
48,326
|
||||
Interest bearing deposits
|
55,117
|
25,690
|
||||||
Cash and Cash Equivalents
|
101,552
|
74,016
|
||||||
Interest bearing deposits - time
|
11,575
|
13,561
|
||||||
Trading securities
|
213
|
203
|
||||||
Securities available for sale
|
571,762
|
533,178
|
||||||
Federal Home Loan Bank and Federal Reserve Bank stock, at cost
|
20,051
|
19,919
|
||||||
Loans held for sale, carried at fair value
|
30,932
|
23,662
|
||||||
Loans
|
||||||||
Commercial
|
710,323
|
690,955
|
||||||
Mortgage
|
465,907
|
472,628
|
||||||
Installment
|
207,962
|
206,378
|
||||||
Payment plan receivables
|
38,767
|
40,001
|
||||||
Total Loans
|
1,422,959
|
1,409,962
|
||||||
Allowance for loan losses
|
(24,679
|
)
|
(25,990
|
)
|
||||
Net Loans
|
1,398,280
|
1,383,972
|
||||||
Other real estate and repossessed assets
|
5,662
|
6,454
|
||||||
Property and equipment, net
|
45,220
|
45,948
|
||||||
Bank-owned life insurance
|
53,975
|
53,625
|
||||||
Deferred tax assets, net
|
46,190
|
48,632
|
||||||
Capitalized mortgage loan servicing rights
|
11,318
|
12,106
|
||||||
Vehicle service contract counterparty receivables, net
|
7,229
|
7,237
|
||||||
Other intangibles
|
2,540
|
2,627
|
||||||
Accrued income and other assets
|
22,797
|
23,590
|
||||||
Total Assets
|
$
|
2,329,296
|
$
|
2,248,730
|
||||
Liabilities and Shareholders' Equity
|
||||||||
Deposits
|
||||||||
Non-interest bearing
|
$
|
620,598
|
$
|
576,882
|
||||
Savings and interest-bearing checking
|
988,776
|
943,734
|
||||||
Reciprocal
|
58,705
|
53,668
|
||||||
Retail time
|
331,095
|
338,720
|
||||||
Brokered time
|
1,299
|
11,298
|
||||||
Total Deposits
|
2,000,473
|
1,924,302
|
||||||
Other borrowings
|
12,468
|
12,470
|
||||||
Subordinated debentures
|
35,569
|
35,569
|
||||||
Vehicle service contract counterparty payables
|
2,312
|
1,977
|
||||||
Accrued expenses and other liabilities
|
24,849
|
24,041
|
||||||
Total Liabilities
|
2,075,671
|
1,998,359
|
||||||
Shareholders’ Equity
|
||||||||
Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding
|
-
|
-
|
||||||
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 22,958,316 shares at March 31, 2015 and 22,957,323 shares at December 31, 2014
|
351,881
|
352,462
|
||||||
Accumulated deficit
|
(94,054
|
)
|
(96,455
|
)
|
||||
Accumulated other comprehensive loss
|
(4,202
|
)
|
(5,636
|
)
|
||||
Total Shareholders’ Equity
|
253,625
|
250,371
|
||||||
Total Liabilities and Shareholders’ Equity
|
$
|
2,329,296
|
$
|
2,248,730
|
Three months ended
March 31, |
||||||||
2015
|
2014
|
|||||||
(unaudited) | ||||||||
(In thousands, except per share amounts)
|
||||||||
Interest Income
|
||||||||
Interest and fees on loans
|
$
|
17,239
|
$
|
18,215
|
||||
Interest on securities
|
||||||||
Taxable
|
1,758
|
1,383
|
||||||
Tax-exempt
|
217
|
262
|
||||||
Other investments
|
338
|
423
|
||||||
Total Interest Income
|
19,552
|
20,283
|
||||||
Interest Expense
|
||||||||
Deposits
|
1,007
|
1,293
|
||||||
Other borrowings
|
454
|
512
|
||||||
Total Interest Expense
|
1,461
|
1,805
|
||||||
Net Interest Income
|
18,091
|
18,478
|
||||||
Provision for loan losses
|
(659
|
)
|
428
|
|||||
Net Interest Income After Provision for Loan Losses
|
18,750
|
18,050
|
||||||
Non-interest Income
|
||||||||
Service charges on deposit accounts
|
2,850
|
3,055
|
||||||
Interchange income
|
2,142
|
1,941
|
||||||
Net gains on assets
|
||||||||
Mortgage loans
|
2,139
|
1,144
|
||||||
Securities
|
85
|
112
|
||||||
Mortgage loan servicing
|
(420
|
)
|
264
|
|||||
Title insurance fees
|
256
|
274
|
||||||
Other
|
1,910
|
2,165
|
||||||
Total Non-interest Income
|
8,962
|
8,955
|
||||||
Non-Interest Expense
|
||||||||
Compensation and employee benefits
|
11,785
|
11,238
|
||||||
Occupancy, net
|
2,419
|
2,483
|
||||||
Data processing
|
1,930
|
2,086
|
||||||
Loan and collection
|
1,155
|
1,465
|
||||||
Furniture, fixtures and equipment
|
952
|
1,069
|
||||||
Communications
|
736
|
789
|
||||||
Advertising
|
484
|
519
|
||||||
Legal and professional
|
380
|
401
|
||||||
FDIC deposit insurance
|
343
|
417
|
||||||
Interchange expense
|
291
|
402
|
||||||
Credit card and bank service fees
|
202
|
263
|
||||||
Vehicle service contract counterparty contingencies
|
29
|
68
|
||||||
Costs related to unfunded lending commitments
|
16
|
10
|
||||||
Provision for loss reimbursement on sold loans
|
(69
|
)
|
(481
|
)
|
||||
Net gains on other real estate and repossessed assets
|
(39
|
)
|
(87
|
)
|
||||
Other
|
1,537
|
1,758
|
||||||
Total Non-interest Expense
|
22,151
|
22,400
|
||||||
Income Before Income Tax
|
5,561
|
4,605
|
||||||
Income tax expense
|
1,780
|
1,467
|
||||||
Net Income
|
$
|
3,781
|
$
|
3,138
|
||||
Net Income Per Common Share
|
||||||||
Basic
|
$
|
0.16
|
$
|
0.14
|
||||
Diluted
|
$
|
0.16
|
$
|
0.13
|
||||
Dividends Per Common Share
|
||||||||
Declared
|
$
|
0.06
|
$
|
-
|
||||
Paid
|
$
|
0.06
|
$
|
-
|
Three months ended
March 31, |
||||||||
2015
|
2014
|
|||||||
(unaudited)
|
||||||||
(In thousands)
|
||||||||
Net income
|
$
|
3,781
|
$
|
3,138
|
||||
Other comprehensive income, before tax
|
||||||||
Available for sale securities
|
||||||||
Unrealized gain arising during period
|
2,270
|
2,250
|
||||||
Change in unrealized losses for which a portion of other than temporary impairment has been recognized in earnings
|
11
|
119
|
||||||
Reclassification adjustments for gains included in earnings
|
(75
|
)
|
-
|
|||||
Unrealized gains recognized in other comprehensive income on available for sale securities
|
2,206
|
2,369
|
||||||
Income tax expense
|
772
|
830
|
||||||
Unrealized gains recognized in other comprehensive income on available for sale securities, net of tax
|
1,434 | 1,539 | ||||||
Derivative instruments
|
|
|||||||
Reclassification adjustment for accretion on settled derivatives
|
-
|
95 | ||||||
Unrealized gains recognized in other comprehensive income on derivative instruments
|
-
|
95
|
||||||
Income tax expense
|
-
|
33
|
||||||
Unrealized gains recognized in other comprehensive income on derivative instruments, net of tax
|
-
|
62
|
||||||
Other comprehensive income
|
1,434
|
1,601
|
||||||
Comprehensive income
|
$
|
5,215
|
$
|
4,739
|
Three months ended March 31,
|
||||||||
2015
|
2014
|
|||||||
(unaudited - In thousands)
|
||||||||
Net Income
|
$
|
3,781
|
$
|
3,138
|
||||
Adjustments to Reconcile Net Income to Net Cash From (Used in) Operating Activities
|
||||||||
Proceeds from sales of loans held for sale
|
70,657
|
48,232
|
||||||
Disbursements for loans held for sale
|
(75,788
|
)
|
(41,398
|
)
|
||||
Provision for loan losses
|
(659
|
)
|
428
|
|||||
Deferred federal income tax expense
|
2,442
|
2,302
|
||||||
Deferred loan fees
|
(193
|
)
|
(5
|
)
|
||||
Depreciation, amortization of intangible assets and premiums and accretion of discounts on securities and loans
|
1,179
|
373
|
||||||
Net gains on mortgage loans
|
(2,139
|
)
|
(1,144
|
)
|
||||
Net gains on securities
|
(85
|
)
|
(112
|
)
|
||||
Net gains on other real estate and repossessed assets
|
(39
|
)
|
(87
|
)
|
||||
Vehicle service contract counterparty contingencies
|
29
|
68
|
||||||
Share based compensation
|
373
|
255
|
||||||
(Increase) decrease in accrued income and other assets
|
517
|
(176
|
)
|
|||||
Decrease in accrued expenses and other liabilities
|
(2,385
|
)
|
(4,513
|
)
|
||||
Total Adjustments
|
(6,091
|
)
|
4,223
|
|||||
Net Cash From (Used in) Operating Activities
|
(2,310
|
)
|
7,361
|
|||||
Cash Flow Used in Investing Activities
|
||||||||
Proceeds from the sale of securities available for sale
|
11,786
|
-
|
||||||
Proceeds from the maturity of securities available for sale
|
6,785
|
15,030
|
||||||
Principal payments received on securities available for sale
|
25,103
|
17,852
|
||||||
Purchases of securities available for sale
|
(77,534
|
)
|
(91,556
|
)
|
||||
Purchases of interest bearing deposits
|
(246
|
)
|
-
|
|||||
Proceeds from the maturity of interest bearing deposits
|
2,211
|
1,090
|
||||||
Purchase of Federal Reserve Bank stock
|
(132
|
)
|
-
|
|||||
Net (increase) decrease in portfolio loans (loans originated, net of principal payments)
|
(13,170
|
)
|
13,221
|
|||||
Proceeds from the collection of vehicle service contract counterparty receivables
|
-
|
256
|
||||||
Proceeds from the sale of other real estate and repossessed assets
|
1,848
|
1,195
|
||||||
Capital expenditures
|
(975
|
)
|
(964
|
)
|
||||
Net Cash Used in Investing Activities
|
(44,324
|
)
|
(43,876
|
)
|
||||
Cash Flow From Financing Activities
|
||||||||
Net increase in total deposits
|
76,171
|
53,936
|
||||||
Net decrease in other borrowings
|
(2
|
)
|
(5
|
)
|
||||
Payments of Federal Home Loan Bank advances
|
-
|
(4,240
|
)
|
|||||
Net increase (decrease) in vehicle service contract counterparty payables
|
335
|
(328
|
)
|
|||||
Dividends paid
|
(1,382
|
)
|
-
|
|||||
Proceeds from issuance of common stock
|
16
|
11
|
||||||
Repurchase of common stock
|
(902
|
)
|
-
|
|||||
Share based compensation withholding obligation
|
(66
|
)
|
-
|
|||||
Net Cash From Financing Activities
|
74,170
|
49,374
|
||||||
Net Increase in Cash and Cash Equivalents
|
27,536
|
12,859
|
||||||
Cash and Cash Equivalents at Beginning of Period
|
74,016
|
119,081
|
||||||
Cash and Cash Equivalents at End of Period
|
$
|
101,552
|
$
|
131,940
|
||||
Cash paid during the period for
|
||||||||
Interest
|
$
|
1,477
|
$
|
1,821
|
||||
Income taxes
|
55
|
1
|
||||||
Transfers to other real estate and repossessed assets
|
1,017
|
827
|
||||||
Transfer of payment plan receivables to vehicle service contract counterparty receivables
|
21
|
131
|
||||||
Purchase of securities available for sale not yet settled
|
3,154
|
-
|
Three months ended
March 31, |
||||||||
2015
|
2014
|
|||||||
(unaudited)
|
||||||||
(In thousands)
|
||||||||
Balance at beginning of period
|
$
|
250,371
|
$
|
231,581
|
||||
Net income
|
3,781
|
3,138
|
||||||
Cash dividends declared
|
(1,382
|
)
|
-
|
|||||
Issuance of common stock
|
16
|
11
|
||||||
Share based compensation
|
373
|
255
|
||||||
Share based compensation withholding obligation
|
(66
|
)
|
-
|
|||||
Repurchase of common stock
|
(902
|
)
|
-
|
|||||
Net change in accumulated other comprehensive loss, net of related tax effect
|
1,434
|
1,601
|
||||||
Balance at end of period
|
$
|
253,625
|
$
|
236,586
|
1.
|
Preparation of Financial Statements
|
2.
|
New Accounting Standards
|
3.
|
Securities
|
Amortized
|
Unrealized
|
Fair Value
|
||||||||||||||
Cost
|
Gains
|
Losses
|
||||||||||||||
(In thousands) | ||||||||||||||||
March 31, 2015
|
||||||||||||||||
U.S. agency
|
$
|
35,308
|
$
|
255
|
$
|
34
|
$
|
35,529
|
||||||||
U.S. agency residential mortgage-backed
|
232,286
|
2,162
|
194
|
234,254
|
||||||||||||
U.S. agency commercial mortgage-backed
|
32,846
|
270
|
35
|
33,081
|
||||||||||||
Private label residential mortgage-backed
|
5,992
|
195
|
367
|
5,820
|
||||||||||||
Other asset backed
|
95,197
|
110
|
116
|
95,191
|
||||||||||||
Obligations of states and political subdivisions
|
142,133
|
1,469
|
814
|
142,788
|
||||||||||||
Corporate
|
22,636
|
83
|
58
|
22,661
|
||||||||||||
Trust preferred
|
2,910
|
-
|
472
|
2,438
|
||||||||||||
Total
|
$
|
569,308
|
$
|
4,544
|
$
|
2,090
|
$
|
571,762
|
||||||||
December 31, 2014
|
||||||||||||||||
U.S. agency
|
$
|
34,936
|
$
|
133
|
$
|
63
|
$
|
35,006
|
||||||||
U.S. agency residential mortgage-backed
|
256,387
|
1,838
|
667
|
257,558
|
||||||||||||
U.S. agency commercial mortgage-backed
|
33,779
|
68
|
119
|
33,728
|
||||||||||||
Private label residential mortgage-backed
|
6,216
|
187
|
390
|
6,013
|
||||||||||||
Other asset backed
|
32,314
|
77
|
38
|
32,353
|
||||||||||||
Obligations of states and political subdivisions
|
143,698
|
961
|
1,244
|
143,415
|
||||||||||||
Corporate
|
22,690
|
53
|
79
|
22,664
|
||||||||||||
Trust preferred
|
2,910
|
-
|
469
|
2,441
|
||||||||||||
Total
|
$
|
532,930
|
$
|
3,317
|
$
|
3,069
|
$
|
533,178
|
Less Than Twelve Months
|
Twelve Months or More
|
Total
|
||||||||||||||||||||||
Fair Value
|
Unrealized
Losses |
Fair Value
|
Unrealized
Losses |
Fair Value
|
Unrealized
Losses |
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
March 31, 2015
|
||||||||||||||||||||||||
U.S. agency
|
$
|
12,822
|
$
|
29
|
$
|
775
|
$
|
5
|
$
|
13,597
|
$
|
34
|
||||||||||||
U.S. agency residential mortgage-backed
|
29,496
|
119
|
11,171
|
75
|
40,667
|
194
|
||||||||||||||||||
U.S. agency commercial mortgage-backed
|
7,999
|
28
|
2,600
|
7
|
10,599
|
35
|
||||||||||||||||||
Private label residential mortgage-backed
|
202
|
1
|
3,883
|
366
|
4,085
|
367
|
||||||||||||||||||
Other asset backed
|
28,970
|
46
|
7,232
|
70
|
36,202
|
116
|
||||||||||||||||||
Obligations of states and political subdivisions
|
24,722
|
70
|
28,979
|
744
|
53,701
|
814
|
||||||||||||||||||
Corporate
|
3,208
|
58
|
-
|
-
|
3,208
|
58
|
||||||||||||||||||
Trust preferred
|
-
|
-
|
2,438
|
472
|
2,438
|
472
|
||||||||||||||||||
Total
|
$
|
107,419
|
$
|
351
|
$
|
57,078
|
$
|
1,739
|
$
|
164,497
|
$
|
2,090
|
December 31, 2014
|
||||||||||||||||||||||||
U.S. agency
|
$
|
12,851
|
$
|
58
|
$
|
606
|
$
|
5
|
$
|
13,457
|
$
|
63
|
||||||||||||
U.S. agency residential mortgage-backed
|
89,547
|
531
|
15,793
|
136
|
105,340
|
667
|
||||||||||||||||||
U.S. agency commercial mortgage-backed
|
21,325
|
119
|
-
|
-
|
21,325
|
119
|
||||||||||||||||||
Private label residential mortgage-backed
|
208
|
1
|
4,013
|
389
|
4,221
|
390
|
||||||||||||||||||
Other asset backed
|
2,960
|
15
|
8,729
|
23
|
11,689
|
38
|
||||||||||||||||||
Obligations of states and political subdivisions
|
28,114
|
106
|
37,540
|
1,138
|
65,654
|
1,244
|
||||||||||||||||||
Corporate
|
8,660
|
79
|
-
|
-
|
8,660
|
79
|
||||||||||||||||||
Trust preferred
|
-
|
-
|
2,441
|
469
|
2,441
|
469
|
||||||||||||||||||
Total
|
$
|
163,665
|
$
|
909
|
$
|
69,122
|
$
|
2,160
|
$
|
232,787
|
$
|
3,069
|
March 31, 2015
|
December 31, 2014
|
|||||||||||||||
Fair
Value |
Net
Unrealized |
Fair
Value |
Net
Unrealized |
|||||||||||||
(In thousands)
|
||||||||||||||||
Trust preferred securities
|
||||||||||||||||
Rated issues
|
$
|
1,674
|
$
|
(236
|
)
|
$
|
1,643
|
$
|
(267
|
)
|
||||||
Unrated issues
|
764
|
(236
|
)
|
798
|
(202
|
)
|
Senior
Security |
Super
Senior |
Senior
Support |
Total
|
|||||||||||||
(In thousands)
|
||||||||||||||||
As of March 31, 2015
|
||||||||||||||||
Fair value
|
$
|
2,053
|
$
|
1,524
|
$
|
96
|
$
|
3,673
|
||||||||
Amortized cost
|
2,092
|
1,426
|
-
|
3,518
|
||||||||||||
Non-credit unrealized loss
|
39
|
-
|
-
|
39
|
||||||||||||
Unrealized gain
|
-
|
98
|
96
|
194
|
||||||||||||
Cumulative credit related OTTI
|
757
|
457
|
380
|
1,594
|
||||||||||||
Credit related OTTI recognized in our Condensed Consolidated Statements of Operations
|
||||||||||||||||
For the three months ended March 31,
|
||||||||||||||||
2015
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
2014
|
-
|
-
|
-
|
-
|
2015
|
2014
|
|||||||
(In thousands)
|
||||||||
Balance at beginning of year
|
$
|
1,844
|
$
|
1,835
|
||||
Additions to credit losses on securities for which no previous OTTI was recognized
|
-
|
-
|
||||||
Increases to credit losses on securities for which OTTI was previously recognized
|
-
|
-
|
||||||
Total
|
$
|
1,844
|
$
|
1,835
|
Amortized
Cost |
Fair
Value |
|||||||
(In thousands)
|
||||||||
Maturing within one year
|
$
|
28,410
|
$
|
28,419
|
||||
Maturing after one year but within five years
|
61,845
|
62,190
|
||||||
Maturing after five years but within ten years
|
36,871
|
37,377
|
||||||
Maturing after ten years
|
75,861
|
75,430
|
||||||
202,987
|
203,416
|
|||||||
U.S. agency residential mortgage-backed
|
232,286
|
234,254
|
||||||
U.S. agency commercial mortgage-backed
|
32,846
|
33,081
|
||||||
Private label residential mortgage-backed
|
5,992
|
5,820
|
||||||
Other asset backed
|
95,197
|
95,191
|
||||||
Total
|
$
|
569,308
|
$
|
571,762
|
Proceeds
|
Realized
Gains |
Losses
|
||||||||||
(In thousands)
|
||||||||||||
2015
|
$
|
11,786
|
$
|
75
|
$
|
-
|
||||||
2014
|
-
|
-
|
-
|
4.
|
Loans
|
Commercial
|
Mortgage
|
Installment
|
Payment
Plan |
Unallocated
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
2015
|
||||||||||||||||||||||||
Balance at beginning of period
|
$
|
5,445
|
$
|
13,444
|
$
|
1,814
|
$
|
64
|
$
|
5,223
|
$
|
25,990
|
||||||||||||
Additions (deductions)
|
||||||||||||||||||||||||
Provision for loan losses
|
328
|
(733
|
)
|
(85
|
)
|
(2
|
)
|
(167
|
)
|
(659
|
)
|
|||||||||||||
Recoveries credited to allowance
|
433
|
238
|
319
|
-
|
-
|
990
|
||||||||||||||||||
Loans charged against the allowance
|
(290
|
)
|
(868
|
)
|
(484
|
)
|
-
|
-
|
(1,642
|
)
|
||||||||||||||
Balance at end of period
|
$
|
5,916
|
$
|
12,081
|
$
|
1,564
|
$
|
62
|
$
|
5,056
|
$
|
24,679
|
||||||||||||
2014
|
||||||||||||||||||||||||
Balance at beginning of period
|
$
|
6,827
|
$
|
17,195
|
$
|
2,246
|
$
|
97
|
$
|
5,960
|
$
|
32,325
|
||||||||||||
Additions (deductions)
|
||||||||||||||||||||||||
Provision for loan losses
|
507
|
193
|
176
|
(14
|
)
|
(434
|
)
|
428
|
||||||||||||||||
Recoveries credited to allowance
|
355
|
458
|
251
|
4
|
-
|
1,068
|
||||||||||||||||||
Loans charged against the allowance
|
(1,926
|
)
|
(846
|
)
|
(612
|
)
|
-
|
-
|
(3,384
|
)
|
||||||||||||||
Balance at end of period
|
$
|
5,763
|
$
|
17,000
|
$
|
2,061
|
$
|
87
|
$
|
5,526
|
$
|
30,437
|
Commercial
|
Mortgage
|
Installment
|
Payment
Plan
Receivables |
Unallocated
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
March 31, 2015
|
||||||||||||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
3,214
|
$
|
8,612
|
$
|
654
|
$
|
-
|
$
|
-
|
$
|
12,480
|
||||||||||||
Collectively evaluated for impairment
|
2,702
|
3,469
|
910
|
62
|
5,056
|
12,199
|
||||||||||||||||||
Total ending allowance balance
|
$
|
5,916
|
$
|
12,081
|
$
|
1,564
|
$
|
62
|
$
|
5,056
|
$
|
24,679
|
||||||||||||
Loans
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
32,633
|
$
|
70,478
|
$
|
6,461
|
$
|
-
|
$
|
109,572
|
||||||||||||||
Collectively evaluated for impairment
|
679,319
|
397,551
|
202,158
|
38,767
|
1,317,795
|
|||||||||||||||||||
Total loans recorded investment
|
711,952
|
468,029
|
208,619
|
38,767
|
1,427,367
|
|||||||||||||||||||
Accrued interest included in recorded investment
|
1,629
|
2,122
|
657
|
-
|
4,408
|
|||||||||||||||||||
Total loans
|
$
|
710,323
|
$
|
465,907
|
$
|
207,962
|
$
|
38,767
|
$
|
1,422,959
|
||||||||||||||
December 31, 2014
|
||||||||||||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
3,194
|
$
|
9,311
|
$
|
728
|
$
|
-
|
$
|
-
|
$
|
13,233
|
||||||||||||
Collectively evaluated for impairment
|
2,251
|
4,133
|
1,086
|
64
|
5,223
|
12,757
|
||||||||||||||||||
Total ending allowance balance
|
$
|
5,445
|
$
|
13,444
|
$
|
1,814
|
$
|
64
|
$
|
5,223
|
$
|
25,990
|
||||||||||||
Loans
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
34,147
|
$
|
72,340
|
$
|
6,679
|
$
|
-
|
$
|
113,166
|
||||||||||||||
Collectively evaluated for impairment
|
658,423
|
402,458
|
200,368
|
40,001
|
1,301,250
|
|||||||||||||||||||
Total loans recorded investment
|
692,570
|
474,798
|
207,047
|
40,001
|
1,414,416
|
|||||||||||||||||||
Accrued interest included in recorded investment
|
1,615
|
2,170
|
669
|
-
|
4,454
|
|||||||||||||||||||
Total loans
|
$
|
690,955
|
$
|
472,628
|
$
|
206,378
|
$
|
40,001
|
$
|
1,409,962
|
90+ and
Still |
Non-
Accrual |
Total Non-
Performing
Loans |
||||||||||
(In thousands)
|
||||||||||||
March 31, 2015
|
||||||||||||
Commercial
|
||||||||||||
Income producing - real estate
|
$
|
-
|
$
|
1,187
|
$
|
1,187
|
||||||
Land, land development and construction - real estate
|
-
|
575
|
575
|
|||||||||
Commercial and industrial
|
197
|
2,749
|
2,946
|
|||||||||
Mortgage
|
|
|||||||||||
1-4 family
|
-
|
6,235
|
6,235
|
|||||||||
Resort lending
|
-
|
1,815
|
1,815
|
|||||||||
Home equity - 1st lien
|
-
|
267
|
267
|
|||||||||
Home equity - 2nd lien
|
-
|
366
|
366
|
|||||||||
Installment
|
||||||||||||
Home equity - 1st lien
|
-
|
290
|
290
|
|||||||||
Home equity - 2nd lien
|
-
|
528
|
528
|
|||||||||
Loans not secured by real estate
|
-
|
562
|
562
|
|||||||||
Other
|
-
|
8
|
8
|
|||||||||
Payment plan receivables
|
||||||||||||
Full refund
|
-
|
7
|
7
|
|||||||||
Partial refund
|
-
|
1
|
1
|
|||||||||
Other
|
-
|
3
|
3
|
|||||||||
Total recorded investment
|
$
|
197
|
$
|
14,593
|
$
|
14,790
|
||||||
Accrued interest included in recorded investment
|
$
|
3
|
$
|
-
|
$
|
3
|
||||||
December 31, 2014
|
||||||||||||
Commercial
|
||||||||||||
Income producing - real estate
|
$
|
-
|
$
|
1,233
|
$
|
1,233
|
||||||
Land, land development and construction - real estate
|
-
|
594
|
594
|
|||||||||
Commercial and industrial
|
-
|
2,746
|
2,746
|
|||||||||
Mortgage
|
||||||||||||
1-4 family
|
7
|
5,945
|
5,952
|
|||||||||
Resort lending
|
-
|
2,168
|
2,168
|
|||||||||
Home equity - 1st lien
|
-
|
331
|
331
|
|||||||||
Home equity - 2nd lien
|
-
|
605
|
605
|
|||||||||
Installment
|
||||||||||||
Home equity - 1st lien
|
-
|
576
|
576
|
|||||||||
Home equity - 2nd lien
|
-
|
517
|
517
|
|||||||||
Loans not secured by real estate
|
-
|
454
|
454
|
|||||||||
Other
|
-
|
48
|
48
|
|||||||||
Payment plan receivables
|
||||||||||||
Full refund
|
-
|
2
|
2
|
|||||||||
Partial refund
|
-
|
12
|
12
|
|||||||||
Other
|
-
|
-
|
-
|
|||||||||
Total recorded investment
|
$
|
7
|
$
|
15,231
|
$
|
15,238
|
||||||
Accrued interest included in recorded investment
|
$
|
-
|
$
|
-
|
$
|
-
|
Loans Past Due
|
Loans not
Past Due
|
Total
Loans
|
||||||||||||||||||||||
30-59 days
|
60-89 days
|
90+ days
|
Total
|
|||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
March 31, 2015
|
||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Income producing - real estate
|
$
|
268
|
$
|
-
|
$
|
214
|
$
|
482
|
$
|
271,395
|
$
|
271,877
|
||||||||||||
Land, land development and construction - real estate
|
124
|
-
|
217
|
341
|
32,150
|
32,491
|
||||||||||||||||||
Commercial and industrial
|
288
|
278
|
1,101
|
1,667
|
405,917
|
407,584
|
||||||||||||||||||
Mortgage
|
||||||||||||||||||||||||
1-4 family
|
2,390
|
468
|
6,235
|
9,093
|
267,027
|
276,120
|
||||||||||||||||||
Resort lending
|
865
|
283
|
1,815
|
2,963
|
121,834
|
124,797
|
||||||||||||||||||
Home equity - 1st lien
|
41
|
113
|
267
|
421
|
20,238
|
20,659
|
||||||||||||||||||
Home equity - 2nd lien
|
396
|
111
|
366
|
873
|
45,580
|
46,453
|
||||||||||||||||||
Installment
|
||||||||||||||||||||||||
Home equity - 1st lien
|
186
|
12
|
290
|
488
|
20,562
|
21,050
|
||||||||||||||||||
Home equity - 2nd lien
|
193
|
115
|
528
|
836
|
26,078
|
26,914
|
||||||||||||||||||
Loans not secured by real estate
|
355
|
21
|
562
|
938
|
157,516
|
158,454
|
||||||||||||||||||
Other
|
1
|
18
|
8
|
27
|
2,174
|
2,201
|
||||||||||||||||||
Payment plan receivables
|
||||||||||||||||||||||||
Full refund
|
596
|
113
|
7
|
716
|
23,941
|
24,657
|
||||||||||||||||||
Partial refund
|
376
|
63
|
1
|
440
|
8,577
|
9,017
|
||||||||||||||||||
Other
|
120
|
22
|
3
|
145
|
4,948
|
5,093
|
||||||||||||||||||
Total recorded investment
|
$
|
6,199
|
$
|
1,617
|
$
|
11,614
|
$
|
19,430
|
$
|
1,407,937
|
$
|
1,427,367
|
||||||||||||
Accrued interest included in recorded investment
|
$
|
50
|
$
|
20
|
$
|
3
|
$
|
73
|
$
|
4,335
|
$
|
4,408
|
||||||||||||
December 31, 2014
|
||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Income producing - real estate
|
$
|
89
|
$
|
-
|
$
|
214
|
$
|
303
|
$
|
252,763
|
$
|
253,066
|
||||||||||||
Land, land development and construction - real estate
|
131
|
-
|
223
|
354
|
33,984
|
34,338
|
||||||||||||||||||
Commercial and industrial
|
2,391
|
279
|
209
|
2,879
|
402,287
|
405,166
|
||||||||||||||||||
Mortgage
|
||||||||||||||||||||||||
1-4 family
|
1,877
|
1,638
|
5,952
|
9,467
|
269,719
|
279,186
|
||||||||||||||||||
Resort lending
|
226
|
-
|
2,168
|
2,394
|
126,342
|
128,736
|
||||||||||||||||||
Home equity - 1st lien
|
39
|
50
|
331
|
420
|
19,782
|
20,202
|
||||||||||||||||||
Home equity - 2nd lien
|
711
|
89
|
605
|
1,405
|
45,269
|
46,674
|
||||||||||||||||||
Installment
|
||||||||||||||||||||||||
Home equity - 1st lien
|
466
|
37
|
576
|
1,079
|
20,995
|
22,074
|
||||||||||||||||||
Home equity - 2nd lien
|
369
|
81
|
517
|
967
|
28,125
|
29,092
|
||||||||||||||||||
Loans not secured by real estate
|
589
|
231
|
454
|
1,274
|
152,115
|
153,389
|
||||||||||||||||||
Other
|
15
|
3
|
48
|
66
|
2,426
|
2,492
|
||||||||||||||||||
Payment plan receivables
|
||||||||||||||||||||||||
Full refund
|
838
|
214
|
2
|
1,054
|
26,799
|
27,853
|
||||||||||||||||||
Partial refund
|
409
|
123
|
12
|
544
|
6,550
|
7,094
|
||||||||||||||||||
Other
|
96
|
24
|
-
|
120
|
4,934
|
5,054
|
||||||||||||||||||
Total recorded investment
|
$
|
8,246
|
$
|
2,769
|
$
|
11,311
|
$
|
22,326
|
$
|
1,392,090
|
$
|
1,414,416
|
||||||||||||
Accrued interest included in recorded investment
|
$
|
55
|
$
|
29
|
$
|
-
|
$
|
84
|
$
|
4,370
|
$
|
4,454
|
March 31,
2015 |
December 31,
2014 |
|||||||
Impaired loans with no allocated allowance
|
(In thousands)
|
|||||||
TDR
|
$
|
9,402
|
$
|
9,325
|
||||
Non - TDR
|
316
|
299
|
||||||
Impaired loans with an allocated allowance
|
||||||||
TDR - allowance based on collateral
|
5,184
|
5,879
|
||||||
TDR - allowance based on present value cash flow
|
91,924
|
94,970
|
||||||
Non - TDR - allowance based on collateral
|
2,387
|
2,296
|
||||||
Non - TDR - allowance based on present value cash flow
|
-
|
-
|
||||||
Total impaired loans
|
$
|
109,213
|
$
|
112,769
|
||||
Amount of allowance for loan losses allocated
|
||||||||
TDR - allowance based on collateral
|
$
|
1,707
|
$
|
2,025
|
||||
TDR - allowance based on present value cash flow
|
9,704
|
10,188
|
||||||
Non - TDR - allowance based on collateral
|
1,069
|
1,020
|
||||||
Non - TDR - allowance based on present value cash flow
|
-
|
-
|
||||||
Total amount of allowance for loan losses allocated
|
$
|
12,480
|
$
|
13,233
|
March 31, 2015
|
December 31, 2014
|
|||||||||||||||||||||||
Recorded
Investment |
Unpaid
Principal |
Related
Allowance |
Recorded
Investment |
Unpaid
Principal
Balance
|
Related
Allowance |
|||||||||||||||||||
With no related allowance recorded:
|
(In thousands)
|
|||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Income producing - real estate
|
$
|
5,827
|
$
|
6,046
|
$
|
-
|
$
|
5,868
|
$
|
6,077
|
$
|
-
|
||||||||||||
Land, land development & construction-real estate
|
1,030
|
1,591
|
-
|
1,051
|
1,606
|
-
|
||||||||||||||||||
Commercial and industrial
|
2,851
|
2,843
|
-
|
2,685
|
2,667
|
-
|
||||||||||||||||||
Mortgage
|
||||||||||||||||||||||||
1-4 family
|
25
|
66
|
-
|
-
|
49
|
-
|
||||||||||||||||||
Resort lending
|
13
|
96
|
-
|
48
|
397
|
-
|
||||||||||||||||||
Home equity - 1st lien
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Home equity - 2nd lien
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Installment
|
||||||||||||||||||||||||
Home equity - 1st lien
|
-
|
39
|
-
|
-
|
40
|
-
|
||||||||||||||||||
Home equity - 2nd lien
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Loans not secured by real estate
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Other
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
9,746
|
10,681
|
-
|
9,652
|
10,836
|
-
|
|||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Income producing - real estate
|
12,861
|
13,842
|
733
|
12,836
|
13,797
|
689
|
||||||||||||||||||
Land, land development & construction-real estate
|
1,961
|
2,043
|
394
|
3,456
|
3,528
|
499
|
||||||||||||||||||
Commercial and industrial
|
8,103
|
8,361
|
2,087
|
8,251
|
8,486
|
2,006
|
||||||||||||||||||
Mortgage
|
||||||||||||||||||||||||
1-4 family
|
51,695
|
54,501
|
5,753
|
53,206
|
56,063
|
6,195
|
||||||||||||||||||
Resort lending
|
18,464
|
18,629
|
2,835
|
18,799
|
18,963
|
3,075
|
||||||||||||||||||
Home equity - 1st lien
|
161
|
177
|
13
|
162
|
177
|
14
|
||||||||||||||||||
Home equity - 2nd lien
|
120
|
202
|
11
|
125
|
205
|
27
|
||||||||||||||||||
Installment
|
||||||||||||||||||||||||
Home equity - 1st lien
|
2,637
|
2,864
|
179
|
2,744
|
2,930
|
219
|
||||||||||||||||||
Home equity - 2nd lien
|
3,136
|
3,145
|
425
|
3,212
|
3,215
|
419
|
||||||||||||||||||
Loans not secured by real estate
|
677
|
784
|
49
|
711
|
835
|
89
|
||||||||||||||||||
Other
|
11
|
11
|
1
|
12
|
12
|
1
|
||||||||||||||||||
99,826
|
104,559
|
12,480
|
103,514
|
108,211
|
13,233
|
|||||||||||||||||||
Total
|
||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Income producing - real estate
|
18,688
|
19,888
|
733
|
18,704
|
19,874
|
689
|
||||||||||||||||||
Land, land development & construction-real estate
|
2,991
|
3,634
|
394
|
4,507
|
5,134
|
499
|
||||||||||||||||||
Commercial and industrial
|
10,954
|
11,204
|
2,087
|
10,936
|
11,153
|
2,006
|
||||||||||||||||||
Mortgage
|
||||||||||||||||||||||||
1-4 family
|
51,720
|
54,567
|
5,753
|
53,206
|
56,112
|
6,195
|
||||||||||||||||||
Resort lending
|
18,477
|
18,725
|
2,835
|
18,847
|
19,360
|
3,075
|
||||||||||||||||||
Home equity - 1st lien
|
161
|
177
|
13
|
162
|
177
|
14
|
||||||||||||||||||
Home equity - 2nd lien
|
120
|
202
|
11
|
125
|
205
|
27
|
||||||||||||||||||
Installment
|
||||||||||||||||||||||||
Home equity - 1st lien
|
2,637
|
2,903
|
179
|
2,744
|
2,970
|
219
|
||||||||||||||||||
Home equity - 2nd lien
|
3,136
|
3,145
|
425
|
3,212
|
3,215
|
419
|
||||||||||||||||||
Loans not secured by real estate
|
677
|
784
|
49
|
711
|
835
|
89
|
||||||||||||||||||
Other
|
11
|
11
|
1
|
12
|
12
|
1
|
||||||||||||||||||
Total
|
$
|
109,572
|
$
|
115,240
|
$
|
12,480
|
$
|
113,166
|
$
|
119,047
|
$
|
13,233
|
||||||||||||
Accrued interest included in recorded investment
|
$
|
359
|
$
|
397
|
(1)
|
There were no impaired payment plan receivables at March 31, 2015 or December 31, 2014.
|
2015
|
2014
|
|||||||||||||||
Average
Recorded |
Interest
Income
Recognized
|
Average
Recorded |
Interest
Income |
|||||||||||||
With no related allowance recorded:
|
(In thousands)
|
|||||||||||||||
Commercial
|
||||||||||||||||
Income producing - real estate
|
$
|
5,848
|
$
|
53
|
$
|
7,963
|
$
|
175
|
||||||||
Land, land development & construction-real estate
|
1,041
|
34
|
1,478
|
43
|
||||||||||||
Commercial and industrial
|
2,768
|
37
|
3,638
|
93
|
||||||||||||
Mortgage
|
||||||||||||||||
1-4 family
|
13
|
-
|
8
|
-
|
||||||||||||
Resort lending
|
31
|
-
|
35
|
-
|
||||||||||||
Home equity - 1st lien
|
-
|
-
|
-
|
-
|
||||||||||||
Home equity - 2nd lien
|
-
|
-
|
-
|
-
|
||||||||||||
Installment
|
||||||||||||||||
Home equity - 1st lien
|
-
|
-
|
-
|
-
|
||||||||||||
Home equity - 2nd lien
|
-
|
-
|
-
|
-
|
||||||||||||
Loans not secured by real estate
|
-
|
-
|
-
|
-
|
||||||||||||
Other
|
-
|
-
|
-
|
-
|
||||||||||||
9,701
|
124
|
13,122
|
311
|
|||||||||||||
With an allowance recorded:
|
||||||||||||||||
Commercial
|
||||||||||||||||
Income producing - real estate
|
12,849
|
157
|
14,026
|
66
|
||||||||||||
Land, land development & construction-real estate
|
2,709
|
14
|
4,027
|
12
|
||||||||||||
Commercial and industrial
|
8,177
|
66
|
9,188
|
26
|
||||||||||||
Mortgage
|
||||||||||||||||
1-4 family
|
52,451
|
551
|
57,457
|
630
|
||||||||||||
Resort lending
|
18,632
|
171
|
19,896
|
191
|
||||||||||||
Home equity - 1st lien
|
162
|
2
|
154
|
1
|
||||||||||||
Home equity - 2nd lien
|
123
|
2
|
42
|
1
|
||||||||||||
Installment
|
||||||||||||||||
Home equity - 1st lien
|
2,691
|
50
|
2,920
|
45
|
||||||||||||
Home equity - 2nd lien
|
3,174
|
51
|
3,418
|
49
|
||||||||||||
Loans not secured by real estate
|
694
|
10
|
744
|
10
|
||||||||||||
Other
|
12
|
-
|
16
|
-
|
||||||||||||
101,674
|
1,074
|
111,888
|
1,031
|
|||||||||||||
Total
|
||||||||||||||||
Commercial
|
||||||||||||||||
Income producing - real estate
|
18,697
|
210
|
21,989
|
241
|
||||||||||||
Land, land development & construction-real estate
|
3,750
|
48
|
5,505
|
55
|
||||||||||||
Commercial and industrial
|
10,945
|
103
|
12,826
|
119
|
||||||||||||
Mortgage
|
||||||||||||||||
1-4 family
|
52,464
|
551
|
57,465
|
630
|
||||||||||||
Resort lending
|
18,663
|
171
|
19,931
|
191
|
||||||||||||
Home equity - 1st lien
|
162
|
2
|
154
|
1
|
||||||||||||
Home equity - 2nd lien
|
123
|
2
|
42
|
1
|
||||||||||||
Installment
|
||||||||||||||||
Home equity - 1st lien
|
2,691
|
50
|
2,920
|
45
|
||||||||||||
Home equity - 2nd lien
|
3,174
|
51
|
3,418
|
49
|
||||||||||||
Loans not secured by real estate
|
694
|
10
|
744
|
10
|
||||||||||||
Other
|
12
|
-
|
16
|
-
|
||||||||||||
Total
|
$
|
111,375
|
$
|
1,198
|
$
|
125,010
|
$
|
1,342
|
(1)
|
There were no impaired payment plan receivables during the three month periods ended March 31, 2015 and 2014, respectively.
|
March 31, 2015
|
||||||||||||
Commercial
|
Retail
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Performing TDRs
|
$
|
27,904
|
$
|
71,477
|
$
|
99,381
|
||||||
Non-performing TDRs(1)
|
1,935
|
5,194
|
(2) |
7,129
|
||||||||
Total
|
$
|
29,839
|
$
|
76,671
|
$
|
106,510
|
||||||
December 31, 2014
|
||||||||||||
Commercial
|
Retail
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Performing TDRs
|
$
|
29,475
|
$
|
73,496
|
$
|
102,971
|
||||||
Non-performing TDRs(1)
|
1,978
|
5,225
|
(2) |
7,203
|
||||||||
Total
|
$
|
31,453
|
$
|
78,721
|
$
|
110,174
|
(1)
|
Included in non-performing loans table above.
|
(2)
|
Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.
|
Number of
Contracts |
Pre-modification
Recorded Balance |
Post-modification
Recorded |
||||||||||
(Dollars in thousands)
|
||||||||||||
2015
|
||||||||||||
Commercial
|
||||||||||||
Income producing - real estate
|
1
|
$
|
156
|
$
|
164
|
|||||||
Land, land development & construction-real estate
|
-
|
-
|
-
|
|||||||||
Commercial and industrial
|
2
|
236
|
234
|
|||||||||
Mortgage
|
||||||||||||
1-4 family
|
5
|
1,005
|
805
|
|||||||||
Resort lending
|
-
|
-
|
-
|
|||||||||
Home equity - 1st lien
|
-
|
-
|
-
|
|||||||||
Home equity - 2nd lien
|
-
|
-
|
-
|
|||||||||
Installment
|
||||||||||||
Home equity - 1st lien
|
4
|
167
|
140
|
|||||||||
Home equity - 2nd lien
|
-
|
-
|
-
|
|||||||||
Loans not secured by real estate
|
-
|
-
|
-
|
|||||||||
Other
|
-
|
-
|
-
|
|||||||||
Total
|
12
|
$
|
1,564
|
$
|
1,343
|
|||||||
2014
|
||||||||||||
Commercial
|
||||||||||||
Income producing - real estate
|
2
|
$
|
213
|
$
|
210
|
|||||||
Land, land development & construction-real estate
|
-
|
-
|
-
|
|||||||||
Commercial and industrial
|
4
|
190
|
189
|
|||||||||
Mortgage
|
||||||||||||
1-4 family
|
4
|
724
|
739
|
|||||||||
Resort lending
|
2
|
294
|
293
|
|||||||||
Home equity - 1st lien
|
-
|
-
|
-
|
|||||||||
Home equity - 2nd lien
|
-
|
-
|
-
|
|||||||||
Installment
|
||||||||||||
Home equity - 1st lien
|
3
|
106
|
78
|
|||||||||
Home equity - 2nd lien
|
3
|
221
|
220
|
|||||||||
Loans not secured by real estate
|
2
|
33
|
29
|
|||||||||
Other
|
-
|
-
|
-
|
|||||||||
Total
|
20
|
$
|
1,781
|
$
|
1,758
|
Number of
Contracts
|
Recorded
Balance |
|||||||
(Dollars in thousands)
|
||||||||
2015
|
||||||||
Commercial
|
||||||||
Income producing - real estate
|
-
|
$
|
-
|
|||||
Land, land development & construction-real estate
|
-
|
-
|
||||||
Commercial and industrial
|
1
|
91
|
||||||
Mortgage
|
||||||||
1-4 family
|
-
|
-
|
||||||
Resort lending
|
-
|
-
|
||||||
Home equity - 1st lien
|
-
|
-
|
||||||
Home equity - 2nd lien
|
-
|
-
|
||||||
Installment
|
||||||||
Home equity - 1st lien
|
-
|
-
|
||||||
Home equity - 2nd lien
|
-
|
-
|
||||||
Loans not secured by real estate
|
-
|
-
|
||||||
Other
|
-
|
-
|
||||||
1
|
$
|
91
|
||||||
2014
|
||||||||
Commercial
|
||||||||
Income producing - real estate
|
-
|
$
|
-
|
|||||
Land, land development & construction-real estate
|
-
|
-
|
||||||
Commercial and industrial
|
-
|
-
|
||||||
Mortgage
|
||||||||
1-4 family
|
-
|
-
|
||||||
Resort lending
|
-
|
-
|
||||||
Home equity - 1st lien
|
-
|
-
|
||||||
Home equity - 2nd lien
|
-
|
-
|
||||||
Installment
|
||||||||
Home equity - 1st lien
|
-
|
-
|
||||||
Home equity - 2nd lien
|
-
|
-
|
||||||
Loans not secured by real estate
|
-
|
-
|
||||||
Other
|
-
|
-
|
||||||
-
|
$
|
-
|
Commercial
|
||||||||||||||||||||
Non-watch
1-6 |
Watch
7-8 |
Substandard
Accrual |
Non-
Accrual |
Total
|
||||||||||||||||
(In thousands) | ||||||||||||||||||||
March 31, 2015
|
||||||||||||||||||||
Income producing - real estate
|
$
|
260,434
|
$
|
8,304
|
$
|
1,952
|
$
|
1,187
|
$
|
271,877
|
||||||||||
Land, land development and construction - real estate
|
29,394
|
2,268
|
255
|
574
|
32,491
|
|||||||||||||||
Commercial and industrial
|
373,166
|
26,594
|
5,074
|
2,750
|
407,584
|
|||||||||||||||
Total
|
$
|
662,994
|
$
|
37,166
|
$
|
7,281
|
$
|
4,511
|
$
|
711,952
|
||||||||||
Accrued interest included in total
|
$
|
1,491
|
$
|
113
|
$
|
25
|
$
|
-
|
$
|
1,629
|
||||||||||
December 31, 2014
|
||||||||||||||||||||
Income producing - real estate
|
$
|
241,266
|
$
|
8,649
|
$
|
1,918
|
$
|
1,233
|
$
|
253,066
|
||||||||||
Land, land development and construction - real estate
|
30,869
|
2,485
|
390
|
594
|
34,338
|
|||||||||||||||
Commercial and industrial
|
372,947
|
23,475
|
5,998
|
2,746
|
405,166
|
|||||||||||||||
Total
|
$
|
645,082
|
$
|
34,609
|
$
|
8,306
|
$
|
4,573
|
$
|
692,570
|
||||||||||
Accrued interest included in total
|
$
|
1,479
|
$
|
111
|
$
|
25
|
$
|
-
|
$
|
1,615
|
Mortgage (1)
|
||||||||||||||||||||
1-4 Family
|
Resort
Lending |
Home
Equity |
Home
Equity |
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
March 31, 2015
|
||||||||||||||||||||
800 and above
|
$
|
26,878
|
$
|
14,188
|
$
|
3,995
|
$
|
5,937
|
$
|
50,998
|
||||||||||
750-799
|
71,729
|
44,161
|
6,102
|
14,865
|
136,857
|
|||||||||||||||
700-749
|
52,139
|
31,539
|
3,307
|
9,958
|
96,943
|
|||||||||||||||
650-699
|
51,460
|
19,931
|
3,408
|
8,144
|
82,943
|
|||||||||||||||
600-649
|
27,520
|
6,295
|
1,716
|
3,768
|
39,299
|
|||||||||||||||
550-599
|
20,748
|
3,529
|
1,016
|
1,676
|
26,969
|
|||||||||||||||
500-549
|
14,367
|
2,117
|
603
|
1,286
|
18,373
|
|||||||||||||||
Under 500
|
6,207
|
873
|
269
|
627
|
7,976
|
|||||||||||||||
Unknown
|
5,072
|
2,164
|
243
|
192
|
7,671
|
|||||||||||||||
Total
|
$
|
276,120
|
$
|
124,797
|
$
|
20,659
|
$
|
46,453
|
$
|
468,029
|
||||||||||
Accrued interest included in total
|
$
|
1,293
|
$
|
540
|
$
|
91
|
$
|
198
|
$
|
2,122
|
||||||||||
December 31, 2014
|
||||||||||||||||||||
800 and above
|
$
|
27,918
|
$
|
14,484
|
$
|
3,863
|
$
|
6,225
|
$
|
52,490
|
||||||||||
750-799
|
72,674
|
45,950
|
6,128
|
14,323
|
139,075
|
|||||||||||||||
700-749
|
52,843
|
32,660
|
3,054
|
9,642
|
98,199
|
|||||||||||||||
650-699
|
51,664
|
20,250
|
3,257
|
8,194
|
83,365
|
|||||||||||||||
600-649
|
27,770
|
6,538
|
1,704
|
3,862
|
39,874
|
|||||||||||||||
550-599
|
21,361
|
3,639
|
994
|
1,721
|
27,715
|
|||||||||||||||
500-549
|
14,575
|
2,156
|
699
|
1,401
|
18,831
|
|||||||||||||||
Under 500
|
6,306
|
875
|
261
|
632
|
8,074
|
|||||||||||||||
Unknown
|
4,075
|
2,184
|
242
|
674
|
7,175
|
|||||||||||||||
Total
|
$
|
279,186
|
$
|
128,736
|
$
|
20,202
|
$
|
46,674
|
$
|
474,798
|
||||||||||
Accrued interest included in total
|
$
|
1,311
|
$
|
562
|
$
|
88
|
$
|
209
|
$
|
2,170
|
(1)
|
Credit scores have been updated within the last twelve months.
|
Installment(1)
|
||||||||||||||||||||
Home
Equity |
Home
Equity |
Loans not
Secured by |
Other
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
March 31, 2015
|
||||||||||||||||||||
800 and above
|
$
|
2,108
|
$
|
2,653
|
$
|
32,402
|
$
|
60
|
$
|
37,223
|
||||||||||
750-799
|
5,471
|
7,843
|
70,089
|
491
|
83,894
|
|||||||||||||||
700-749
|
2,960
|
5,712
|
29,787
|
620
|
39,079
|
|||||||||||||||
650-699
|
3,801
|
5,135
|
15,699
|
529
|
25,164
|
|||||||||||||||
600-649
|
3,276
|
2,281
|
4,755
|
236
|
10,548
|
|||||||||||||||
550-599
|
1,942
|
1,864
|
1,703
|
128
|
5,637
|
|||||||||||||||
500-549
|
1,040
|
981
|
1,503
|
77
|
3,601
|
|||||||||||||||
Under 500
|
385
|
408
|
408
|
27
|
1,228
|
|||||||||||||||
Unknown
|
67
|
37
|
2,108
|
33
|
2,245
|
|||||||||||||||
Total
|
$
|
21,050
|
$
|
26,914
|
$
|
158,454
|
$
|
2,201
|
$
|
208,619
|
||||||||||
Accrued interest included in total
|
$
|
84
|
$
|
100
|
$
|
456
|
$
|
17
|
$
|
657
|
||||||||||
December 31, 2014
|
||||||||||||||||||||
800 and above
|
$
|
2,272
|
$
|
2,835
|
$
|
31,507
|
$
|
60
|
$
|
36,674
|
||||||||||
750-799
|
5,677
|
8,557
|
66,558
|
583
|
81,375
|
|||||||||||||||
700-749
|
3,111
|
6,358
|
28,179
|
689
|
38,337
|
|||||||||||||||
650-699
|
3,963
|
5,477
|
16,152
|
615
|
26,207
|
|||||||||||||||
600-649
|
3,434
|
2,408
|
5,128
|
255
|
11,225
|
|||||||||||||||
550-599
|
2,019
|
1,913
|
1,896
|
134
|
5,962
|
|||||||||||||||
500-549
|
1,128
|
1,036
|
1,672
|
84
|
3,920
|
|||||||||||||||
Under 500
|
393
|
427
|
455
|
28
|
1,303
|
|||||||||||||||
Unknown
|
77
|
81
|
1,842
|
44
|
2,044
|
|||||||||||||||
Total
|
$
|
22,074
|
$
|
29,092
|
$
|
153,389
|
$
|
2,492
|
$
|
207,047
|
||||||||||
Accrued interest included in total
|
$
|
93
|
$
|
112
|
$
|
445
|
$
|
19
|
$
|
669
|
(1)
|
Credit scores have been updated within the last twelve months.
|
Payment Plan Receivables
|
||||||||||||||||
Full
Refund |
Partial
Refund |
Other
|
Total
|
|||||||||||||
(In thousands)
|
||||||||||||||||
March 31, 2015
|
||||||||||||||||
AM Best rating
|
||||||||||||||||
A+
|
$
|
-
|
$
|
28
|
$
|
-
|
$
|
28
|
||||||||
A
|
6,710
|
8,163
|
-
|
14,873
|
||||||||||||
A-
|
2,354
|
687
|
5,093
|
8,134
|
||||||||||||
Not rated
|
15,593
|
139
|
-
|
15,732
|
||||||||||||
Total
|
$
|
24,657
|
$
|
9,017
|
$
|
5,093
|
$
|
38,767
|
||||||||
December 31, 2014
|
||||||||||||||||
AM Best rating
|
||||||||||||||||
A+
|
$
|
-
|
$
|
43
|
$
|
-
|
$
|
43
|
||||||||
A
|
10,007
|
6,190
|
-
|
16,197
|
||||||||||||
A-
|
1,989
|
685
|
5,054
|
7,728
|
||||||||||||
Not rated
|
15,857
|
176
|
-
|
16,033
|
||||||||||||
Total
|
$
|
27,853
|
$
|
7,094
|
$
|
5,054
|
$
|
40,001
|
5.
|
Segments
|
IB
|
Mepco
|
Other(1)
|
Elimination(2)
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Total assets
|
||||||||||||||||||||
March 31, 2015
|
$
|
2,256,469
|
$
|
61,891
|
$
|
289,132
|
$
|
(278,196
|
)
|
$
|
2,329,296
|
|||||||||
December 31, 2014
|
2,174,536
|
63,378
|
286,158
|
(275,342
|
)
|
2,248,730
|
||||||||||||||
|
||||||||||||||||||||
For the three months ended March 31,
|
||||||||||||||||||||
2015 | ||||||||||||||||||||
Interest income
|
$
|
18,221
|
$
|
1,331
|
$
|
20
|
$
|
(20
|
)
|
$
|
19,552
|
|||||||||
Net interest income
|
17,183
|
1,135
|
(227
|
)
|
-
|
18,091
|
||||||||||||||
Provision for loan losses
|
(656
|
)
|
(3
|
)
|
-
|
-
|
(659
|
)
|
||||||||||||
Income (loss) before income tax
|
6,259
|
(291
|
)
|
(383
|
)
|
(24
|
)
|
5,561
|
||||||||||||
Net income (loss)
|
4,233
|
(192
|
)
|
(244
|
)
|
(16
|
)
|
3,781
|
||||||||||||
2014
|
||||||||||||||||||||
Interest income
|
$
|
18,198
|
$
|
2,085
|
$
|
-
|
$
|
-
|
$
|
20,283
|
||||||||||
Net interest income
|
17,083
|
1,682
|
(287
|
)
|
-
|
18,478
|
||||||||||||||
Provision for loan losses
|
443
|
(15
|
)
|
-
|
-
|
428
|
||||||||||||||
Income (loss) before income tax
|
4,678
|
356
|
(405
|
)
|
(24
|
)
|
4,605
|
|||||||||||||
Net income (loss)
|
3,182
|
243
|
(263
|
)
|
(24
|
)
|
3,138
|
(1)
|
Includes amounts relating to our parent company and certain insignificant operations.
|
(2)
|
Includes parent company's investment in subsidiaries and cash balances maintained at subsidiary.
|
6.
|
Shareholders’ Equity and Earnings Per Common Share
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2015
|
2014
|
|||||||
Net income
|
$
|
3,781
|
$
|
3,138
|
||||
Weighted average shares outstanding (1)
|
22,997
|
22,888
|
||||||
Restricted stock units
|
309
|
304
|
||||||
Effect of stock options
|
121
|
124
|
||||||
Stock units for deferred compensation plan for non-employee directors
|
111
|
120
|
||||||
Weighted average shares outstanding for calculation of diluted earnings per share
|
23,538
|
23,436
|
||||||
Net income per common share
|
||||||||
Basic (1)
|
$
|
0.16
|
$
|
0.14
|
||||
Diluted
|
$
|
0.16
|
$
|
0.13
|
(1)
|
Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards.
|
7. | Derivative Financial Instruments |
March 31, 2015
|
||||||||||||
Notional
Amount
|
Average
Maturity
(years)
|
Fair
Value
|
||||||||||
(Dollars in thousands)
|
||||||||||||
No hedge designation
|
||||||||||||
Rate-lock mortgage loan commitments
|
$
|
28,413
|
0.1
|
$
|
825
|
|||||||
Mandatory commitments to sell mortgage loans
|
59,126
|
0.1
|
(223
|
)
|
||||||||
Pay-fixed interest rate swap agreements
|
15,482
|
7.1
|
(443
|
)
|
||||||||
Pay-variable interest rate swap agreements
|
15,482
|
7.1
|
443
|
|||||||||
Total
|
$
|
118,503
|
1.9
|
$
|
602
|
December 31, 2014
|
||||||||||||
Notional
Amount
|
Average
Maturity
(years)
|
Fair
Value
|
||||||||||
(Dollars in thousands)
|
||||||||||||
No hedge designation
|
||||||||||||
Rate-lock mortgage loan commitments
|
$
|
16,759
|
0.1
|
$
|
437
|
|||||||
Mandatory commitments to sell mortgage loans
|
38,600
|
0.1
|
(184
|
)
|
||||||||
Pay-fixed interest rate swap agreements
|
3,300
|
9.4
|
(182
|
)
|
||||||||
Pay-variable interest rate swap agreements
|
3,300
|
9.4
|
182
|
|||||||||
Total
|
$
|
61,959
|
1.1
|
$
|
253
|
Asset Derivatives
|
Liability Derivatives
|
|||||||||||||||||||
March 31,
2015
|
December 31,
2014
|
March 31,
2015
|
December 31,
2014
|
|||||||||||||||||
Balance
Sheet
Location
|
Fair
Value
|
Balance
Sheet
Location
|
Fair
Value
|
Balance
Sheet
Location
|
Fair
Value
|
Balance
Sheet
Location
|
Fair
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||||||
Derivatives not designated as hedging instruments
|
||||||||||||||||||||
Rate-lock mortgage loan commitments
|
Other assets
|
$
|
825
|
Other assets
|
$
|
437
|
Other liabilities
|
$
|
-
|
Other liabilities
|
$
|
-
|
||||||||
Mandatory commitments to sell mortgage loans
|
Other assets
|
-
|
Other assets
|
-
|
Other liabilities
|
223
|
Other liabilities
|
184
|
||||||||||||
Pay-fixed interest rate swap agreements
|
Other assets
|
-
|
Other assets
|
-
|
Other liabilities
|
443
|
Other liabilities
|
182
|
||||||||||||
Pay-variable interest rate swap agreements
|
Other assets
|
443
|
Other assets
|
182
|
Other liabilities
|
-
|
Other liabilities
|
-
|
||||||||||||
Total derivatives
|
$
|
1,268
|
$
|
619
|
$
|
666
|
$
|
366
|
Three Month Periods Ended March 31,
|
||||||||||||||||||||||||||
Gain (Loss)
Recognized in Other
Comprehensive
Income (Loss)
(Effective Portion)
|
Location of
Gain (Loss)
Reclassified
from
Accumulated
Other
Comprehensive
Income into
Income
(Effective
Portion)
|
Gain (Loss)
Reclassified from
Accumulated Other
Comprehensive
Loss into Income
(Effective Portion)
|
Location of
Gain (Loss)
Recognized
in Income (1)
|
Gain (Loss)
Recognized
in Income
|
||||||||||||||||||||||
2015
|
2014
|
2015
|
2014
|
2015
|
2014
|
|||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||
Cash Flow Hedges
|
||||||||||||||||||||||||||
Pay-fixed interest rate swap agreements (2)
|
$
|
-
|
$
|
-
|
Interest expense
|
$
|
-
|
$
|
(95
|
)
|
$
|
-
|
$
|
-
|
||||||||||||
Total
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(95
|
)
|
$
|
-
|
$
|
-
|
|||||||||||||
No hedge designation
|
||||||||||||||||||||||||||
Rate-lock mortgage loan commitments
|
Net mortgage loan gains
|
$
|
388
|
$
|
(14
|
)
|
||||||||||||||||||||
Mandatory commitments to sell mortgage loans
|
Net mortgage loan gains
|
(39
|
)
|
(83
|
)
|
|||||||||||||||||||||
Pay-fixed interest rate swap agreements
|
Interest income
|
(261
|
)
|
-
|
||||||||||||||||||||||
Pay-variable interest rate swap agreements
|
Interest income
|
261
|
-
|
|||||||||||||||||||||||
Total
|
$
|
349
|
$
|
(97
|
)
|
(1) | For cash flow hedges, this location and amount refers to the ineffective portion. |
(2) | Relates to a terminated pay-fixed interest rate swap whose termination fee was included in accumulated other comprehensive income and was being amortized into earnings through December 31, 2014. |
8. | Intangible Assets |
March 31, 2015
|
December 31, 2014
|
|||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Amortized intangible assets - core deposits
|
$
|
6,118
|
$
|
3,578
|
$
|
6,118
|
$
|
3,491
|
(In thousands)
|
||||
Nine months ending December 31, 2015
|
$
|
260
|
||
2016
|
347
|
|||
2017
|
346
|
|||
2018
|
346
|
|||
2019
|
346
|
|||
2020 and thereafter
|
895
|
|||
Total
|
$
|
2,540
|
9. | Share Based Compensation |
Number of
Shares
|
Average
Exercise
Price
|
Weighted-
Average
Remaining
Contractual
Term (Years)
|
Aggregated
Intrinsic
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Outstanding at January 1, 2015
|
281,820
|
$
|
4.69
|
|||||||||||||
Granted
|
-
|
|||||||||||||||
Exercised
|
(5,764
|
)
|
2.65
|
|||||||||||||
Forfeited
|
(1,132
|
)
|
4.89
|
|||||||||||||
Expired
|
(167
|
)
|
6.42
|
|||||||||||||
Outstanding at March 31, 2015
|
274,757
|
$
|
4.73
|
6.87
|
$
|
2,306
|
||||||||||
Vested and expected to vest at March 31, 2015
|
271,678
|
$
|
4.73
|
6.85
|
$
|
2,283
|
||||||||||
Exercisable at March 31, 2015
|
195,452
|
$
|
4.68
|
6.46
|
$
|
1,675
|
Number
of Shares
|
Weighted-
AverageGrant Date
Fair Value
|
|||||||
Outstanding at January 1, 2015
|
407,130
|
$
|
6.31
|
|||||
Granted
|
105,757
|
13.04
|
||||||
Vested
|
(22,119
|
)
|
12.78
|
|||||
Forfeited
|
(2,198
|
)
|
13.05
|
|||||
Outstanding at March 31, 2015
|
488,570
|
$
|
7.45
|
Three Months Ended
March 31,
|
||||||||
2015
|
2014
|
|||||||
(In thousands)
|
||||||||
Intrinsic value
|
$
|
56
|
$
|
15
|
||||
Cash proceeds received
|
$
|
15
|
$
|
10
|
||||
Tax benefit realized
|
$
|
20
|
$
|
5
|
10. | Income Tax |
11. | Regulatory Matters |
Actual
|
Minimum for
Adequately Capitalized
Institutions
|
Minimum for
Well-Capitalized
Institutions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
March 31, 2015
|
||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||
Consolidated
|
$
|
271,391
|
17.28
|
%
|
$
|
125,611
|
8.00
|
%
|
NA
|
NA
|
||||||||||||||
Independent Bank
|
237,073
|
15.12
|
125,456
|
8.00
|
$
|
156,820
|
10.00
|
%
|
||||||||||||||||
Tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Consolidated
|
$
|
251,443
|
16.01
|
%
|
$
|
94,208
|
6.00
|
%
|
NA
|
NA
|
||||||||||||||
Independent Bank
|
217,216
|
13.85
|
94,092
|
6.00
|
$
|
125,456
|
8.00
|
%
|
||||||||||||||||
Common equity tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Consolidated
|
$
|
237,386
|
15.12
|
%
|
$
|
62,806
|
4.50
|
%
|
NA
|
NA
|
||||||||||||||
Independent Bank
|
217,216
|
13.85
|
70,569
|
4.50
|
$
|
101,933
|
6.50
|
%
|
||||||||||||||||
Tier 1 capital to average assets
|
||||||||||||||||||||||||
Consolidated
|
$
|
251,443
|
11.22
|
%
|
$
|
89,647
|
4.00
|
%
|
NA
|
NA
|
||||||||||||||
Independent Bank
|
217,216
|
9.70
|
89,576
|
4.00
|
$
|
111,970
|
5.00
|
%
|
||||||||||||||||
December 31, 2014
|
||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||
Consolidated
|
$
|
265,163
|
18.06
|
%
|
$
|
117,427
|
8.00
|
%
|
NA
|
NA
|
||||||||||||||
Independent Bank
|
247,883
|
16.90
|
117,374
|
8.00
|
$
|
146,718
|
10.00
|
%
|
||||||||||||||||
Tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Consolidated
|
$
|
246,628
|
16.80
|
%
|
$
|
58,714
|
4.00
|
%
|
NA
|
NA
|
||||||||||||||
Independent Bank
|
229,361
|
15.63
|
58,687
|
4.00
|
$
|
88,031
|
6.00
|
%
|
||||||||||||||||
Tier 1 capital to average assets
|
||||||||||||||||||||||||
Consolidated
|
$
|
246,628
|
11.18
|
%
|
$
|
88,206
|
4.00
|
%
|
NA
|
NA
|
||||||||||||||
Independent Bank
|
229,361
|
10.46
|
87,687
|
4.00
|
$
|
109,609
|
5.00
|
%
|
||||||||||||||||
NA - Not applicable |
Consolidated
|
Independent Bank
|
|||||||||||||||
March 31,
2015
|
December 31,
2014
|
March 31,
2015
|
December 31,
2014
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Total shareholders' equity
|
$
|
253,625
|
$
|
250,371
|
$
|
244,807
|
$
|
257,832
|
||||||||
Add (deduct)
|
||||||||||||||||
Accumulated other comprehensive (gain) loss for regulatory purposes
|
(1,596
|
)
|
5,636
|
(1,596
|
)
|
5,636
|
||||||||||
Intangible assets
|
(1,016
|
)
|
(2,627
|
)
|
(1,016
|
)
|
(2,627
|
)
|
||||||||
Disallowed deferred tax assets
|
(13,627
|
)
|
(40,500
|
)
|
(24,979
|
)
|
(30,728
|
)
|
||||||||
Disallowed capitalized mortgage loan servicing rights
|
-
|
(752
|
)
|
-
|
(752
|
)
|
||||||||||
Common equity tier 1 capital
|
237,386
|
212,128
|
217,216
|
229,361
|
||||||||||||
Qualifying trust preferred securities
|
34,500
|
34,500
|
-
|
-
|
||||||||||||
Disallowed deferred tax assets
|
(20,443
|
)
|
-
|
-
|
-
|
|||||||||||
Tier 1 capital
|
251,443
|
246,628
|
217,216
|
229,361
|
||||||||||||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets
|
19,948
|
18,535
|
19,857
|
18,522
|
||||||||||||
Total risk-based capital
|
$
|
271,391
|
$
|
265,163
|
$
|
237,073
|
$
|
247,883
|
12. | Fair Value Disclosures |
Fair Value Measurements Using
|
||||||||||||||||
Fair Value
Measure-
ments
|
Quoted
Prices
in Active
Markets
for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Un-
observable
Inputs
(Level 3)
|
|||||||||||||
(In thousands)
|
||||||||||||||||
March 31, 2015:
|
||||||||||||||||
Measured at Fair Value on a Recurring Basis:
|
||||||||||||||||
Assets
|
||||||||||||||||
Trading securities
|
$
|
213
|
$
|
213
|
$
|
-
|
$
|
-
|
||||||||
Securities available for sale
|
||||||||||||||||
U.S. agency
|
35,529
|
-
|
35,529
|
-
|
||||||||||||
U.S. agency residential mortgage-backed
|
234,254
|
-
|
234,254
|
-
|
||||||||||||
U.S. agency commercial mortgage-backed
|
33,081
|
-
|
33,081
|
-
|
||||||||||||
Private label residential mortgage-backed
|
5,820
|
-
|
5,820
|
-
|
||||||||||||
Other asset backed
|
95,191
|
-
|
95,191
|
-
|
||||||||||||
Obligations of states and political subdivisions
|
142,788
|
-
|
142,788
|
-
|
||||||||||||
Corporate
|
22,661
|
-
|
22,661
|
-
|
||||||||||||
Trust preferred
|
2,438
|
-
|
2,438
|
-
|
||||||||||||
Loans held for sale
|
30,932
|
-
|
30,932
|
-
|
||||||||||||
Derivatives (1)
|
1,268
|
-
|
1,268
|
-
|
||||||||||||
Liabilities
|
||||||||||||||||
Derivatives (2)
|
666
|
-
|
666
|
-
|
||||||||||||
Measured at Fair Value on a Non-recurring basis:
|
||||||||||||||||
Assets
|
||||||||||||||||
Capitalized mortgage loan servicing rights (3)
|
8,129
|
-
|
-
|
8,129
|
||||||||||||
Impaired loans (4)
|
||||||||||||||||
Commercial
|
||||||||||||||||
Income producing - real estate
|
786
|
-
|
-
|
786
|
||||||||||||
Land, land development & construction-real estate
|
142
|
-
|
-
|
142
|
||||||||||||
Commercial and industrial
|
2,511
|
-
|
-
|
2,511
|
||||||||||||
Mortgage
|
||||||||||||||||
1-4 Family
|
1,217
|
-
|
-
|
1,217
|
||||||||||||
Resort Lending
|
139
|
-
|
-
|
139
|
||||||||||||
Other real estate (5)
|
||||||||||||||||
Commercial
|
||||||||||||||||
Land, land development & construction-real estate
|
677
|
-
|
-
|
677
|
||||||||||||
Mortgage
|
||||||||||||||||
1-4 Family
|
102
|
-
|
-
|
102
|
||||||||||||
Resort Lending
|
427
|
-
|
-
|
427
|
(1)
|
Included in accrued income and other assets
|
(2)
|
Included in accrued expenses and other liabilities
|
(3)
|
Only includes servicing rights that are carried at fair value due to recognition of a valuation allowance.
|
(4)
|
Only includes impaired loans with specific loss allocations based on collateral value.
|
(5)
|
Only includes other real estate with subsequent write downs to fair value.
|
Fair Value Measurements Using
|
||||||||||||||||
Fair Value
Measure-
ments
|
Quoted
Prices
in Active
Markets
for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Un-
observable
Inputs
(Level 3)
|
|||||||||||||
(In thousands)
|
||||||||||||||||
December 31, 2014:
|
||||||||||||||||
Measured at Fair Value on a Recurring Basis:
|
||||||||||||||||
Assets
|
||||||||||||||||
Trading securities
|
$
|
203
|
$
|
203
|
$
|
-
|
$
|
-
|
||||||||
Securities available for sale
|
||||||||||||||||
U.S. agency
|
35,006
|
-
|
35,006
|
-
|
||||||||||||
U.S. agency residential mortgage-backed
|
257,558
|
-
|
257,558
|
-
|
||||||||||||
U.S. agency commercial mortgage-backed
|
33,728
|
-
|
33,728
|
-
|
||||||||||||
Private label residential mortgage-backed
|
6,013
|
-
|
6,013
|
-
|
||||||||||||
Other asset backed
|
32,353
|
-
|
32,353
|
-
|
||||||||||||
Obligations of states and political subdivisions
|
143,415
|
-
|
143,415
|
-
|
||||||||||||
Corporate
|
22,664
|
-
|
22,664
|
-
|
||||||||||||
Trust preferred
|
2,441
|
-
|
2,441
|
-
|
||||||||||||
Loans held for sale
|
23,662
|
-
|
23,662
|
-
|
||||||||||||
Derivatives (1)
|
619
|
-
|
619
|
-
|
||||||||||||
Liabilities
|
||||||||||||||||
Derivatives (2)
|
366
|
-
|
366
|
-
|
||||||||||||
Measured at Fair Value on a Non-recurring basis:
|
||||||||||||||||
Assets
|
||||||||||||||||
Capitalized mortgage loan servicing rights (3)
|
9,197
|
-
|
-
|
9,197
|
||||||||||||
Impaired loans (4)
|
||||||||||||||||
Commercial
|
||||||||||||||||
Income producing - real estate
|
869
|
-
|
-
|
869
|
||||||||||||
Land, land development & construction-real estate
|
354
|
-
|
-
|
354
|
||||||||||||
Commercial and industrial
|
2,601
|
-
|
-
|
2,601
|
||||||||||||
Mortgage
|
||||||||||||||||
1-4 Family
|
1,306
|
-
|
-
|
1,306
|
||||||||||||
Other real estate (5)
|
||||||||||||||||
Commercial
|
||||||||||||||||
Income producing - real estate
|
479
|
-
|
-
|
479
|
||||||||||||
Land, land development & construction-real estate
|
737
|
-
|
-
|
737
|
||||||||||||
Mortgage
|
||||||||||||||||
1-4 Family
|
102
|
-
|
-
|
102
|
||||||||||||
Resort Lending
|
575
|
-
|
-
|
575
|
||||||||||||
Installment
|
||||||||||||||||
Home equity - 1st lien
|
13
|
-
|
-
|
13
|
(1)
|
Included in accrued income and other assets
|
(2)
|
Included in accrued expenses and other liabilities
|
(3)
|
Only includes servicing rights that are carried at fair value due to recognition of a valuation allowance.
|
(4)
|
Only includes impaired loans with specific loss allocations based on collateral value.
|
(5)
|
Only includes other real estate with subsequent write downs to fair value.
|
Changes in Fair Values for the Three-Month
Periods Ended March 31 for Items Measured at
Fair Value Pursuant to Election of the Fair Value Option
|
||||||||||||||||||||||||
2015
|
2014
|
|||||||||||||||||||||||
Net Gains (Losses)
on Assets
|
Total
Change
in Fair
Values
Included
in Current
Period
|
Net Gains (Losses)
on Assets
|
Total
Change
in Fair
Values
Included
in Current
Period
|
|||||||||||||||||||||
Securities
|
Loans
|
Earnings
|
Securities
|
Loans
|
Earnings
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Trading securities
|
$
|
10
|
$
|
-
|
$
|
10
|
$
|
112
|
$
|
-
|
$
|
112
|
||||||||||||
Loans held for sale
|
-
|
209
|
209
|
-
|
30
|
30
|
· | Capitalized mortgage loan servicing rights, whose individual strata are measured at fair value, had a carrying amount of $8.1 million which is net of a valuation allowance of $4.5 million at March 31, 2015 and had a carrying amount of $9.2 million which is net of a valuation allowance of $3.8 million at December 31, 2014. An additional charge relating to capitalized mortgage loan servicing rights measured at fair value of $0.7 million and $0.3 million was included in our results of operations for the three month periods ending March 31, 2015 and 2014, respectively. |
· | Loans which are measured for impairment using the fair value of collateral for collateral dependent loans, had a carrying amount of $7.6 million, with a valuation allowance of $2.8 million at March 31, 2015 and had a carrying amount of $8.2 million, with a valuation allowance of $3.1 million at December 31, 2014. The provision for loan losses included in our results of operations relating to impaired loans was an expense of $0.6 million and an expense of $1.5 million for the three month periods ending March 31, 2015 and 2014, respectively. |
· | Other real estate, which is measured using the fair value of the property, had a carrying amount of $1.2 million which is net of a valuation allowance of $2.5 million at March 31, 2015 and a carrying amount of $1.9 million which is net of a valuation allowance of $2.5 million at December 31, 2014. An additional charge relating to ORE measured at fair value of $0.2 million and $0.1 million was included in our results of operations during the three month periods ended March 31, 2015 and 2014, respectively. |
Asset
(Liability)
Fair
Value
|
Valuation
Technique
|
Unobservable
Inputs
|
Weighted
Average
|
||||||||
(In thousands)
|
|||||||||||
March 31, 2015
|
|||||||||||
Capitalized mortgage loan servicing rights
|
$
|
8,129
|
Present value of net servicing revenue
|
Discount rate
|
10.02
|
%
|
|||||
Cost to service
|
$
|
80
|
|||||||||
Ancillary income
|
25
|
||||||||||
Float rate
|
1.53
|
%
|
|||||||||
Impaired loans
|
|||||||||||
Commercial (1)
|
2,406
|
Sales comparison approach
|
Adjustment for differences between comparable sales
|
(3.7
|
)%
|
||||||
Income approach
|
Capitalization rate
|
9.3
|
|||||||||
Mortgage
|
1,356
|
Sales comparison approach
|
Adjustment for differences between comparable sales
|
9.1
|
|||||||
Other real estate
|
|||||||||||
Commercial
|
677
|
Sales comparison approach
|
Adjustment for differences between comparable sales
|
(5.3
|
)
|
||||||
Mortgage
|
529
|
Sales comparison approach
|
Adjustment for differences between comparable sales
|
16.0
|
|||||||
December 31, 2014
|
|||||||||||
Capitalized mortgage loan servicing rights
|
$
|
9,197
|
Present value of net servicing revenue
|
Discount rate
|
10.07
|
%
|
|||||
Cost to service
|
$
|
82
|
|||||||||
Ancillary income
|
25
|
||||||||||
Float rate
|
1.77
|
%
|
|||||||||
Impaired loans
|
|||||||||||
Commercial (1)
|
2,751
|
Sales comparison approach
|
Adjustment for differences between comparable sales
|
(3.8
|
)%
|
||||||
Income approach
|
Capitalization rate
|
9.3
|
|||||||||
Mortgage
|
1,306
|
Sales comparison approach
|
Adjustment for differences between comparable sales
|
8.6
|
|||||||
Other real estate
|
|||||||||||
Commercial
|
1,216
|
Sales comparison approach
|
Adjustment for differences between comparable sales
|
(9.0
|
)
|
||||||
Mortgage and installment
|
690
|
Sales comparison approach
|
Adjustment for differences between comparable sales
|
34.3
|
(1)
|
In addition to the valuation techniques and unobservable inputs discussed above, at March 31, 2015 and December 31, 2014 we had an impaired collateral dependent commercial relationship that totaled $1.0 million and $1.1 million, respectively that was primarily secured by collateral other than real estate. Collateral securing this relationship primarily included machinery and equipment, accounts receivable, inventory and company stock. Valuation techniques at March 31, 2015 included discounting restructuring firm valuations based on estimates of value recovery of each particular asset type. Discount rates used ranged from 20% to 100% of stated values while valuation techniques at December 31, 2014 included discounting cost and financial statement value approaches based on estimates of value recovery of each particular asset type. Discount rates used ranged from 35% to 100% of stated values.
|
Aggregate
Fair Value
|
Difference
|
Contractual
Principal
|
||||||||||
(In thousands)
|
||||||||||||
Loans held for sale
|
||||||||||||
March 31, 2015
|
$
|
30,932
|
$
|
833
|
$
|
30,099
|
||||||
December 31, 2014
|
23,662
|
624
|
23,038
|
13. | Fair Values of Financial Instruments |
Fair Value Using
|
||||||||||||||||||||
Recorded
Book
Balance
|
Fair Value
|
Quoted
Prices
in Active
Markets
for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Un-
observable
Inputs
(Level 3)
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
March 31, 2015
|
||||||||||||||||||||
Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
46,435
|
$
|
46,435
|
$
|
46,435
|
$
|
-
|
$
|
-
|
||||||||||
Interest bearing deposits
|
55,117
|
55,117
|
55,117
|
-
|
-
|
|||||||||||||||
Interest bearing deposits - time
|
11,575
|
11,575
|
-
|
11,575
|
-
|
|||||||||||||||
Trading securities
|
213
|
213
|
213
|
-
|
-
|
|||||||||||||||
Securities available for sale
|
571,762
|
571,762
|
-
|
571,762
|
-
|
|||||||||||||||
Federal Home Loan Bank and Federal
|
||||||||||||||||||||
Reserve Bank Stock
|
20,051
|
NA
|
|
NA
|
NA
|
|
NA
|
|||||||||||||
Net loans and loans held for sale
|
1,429,212
|
1,416,980
|
-
|
30,932
|
1,386,048
|
|||||||||||||||
Accrued interest receivable
|
6,250
|
6,250
|
5
|
1,808
|
4,437
|
|||||||||||||||
Derivative financial instruments
|
1,268
|
1,268
|
-
|
1,268
|
-
|
|||||||||||||||
Liabilities
|
||||||||||||||||||||
Deposits with no stated maturity (1)
|
$
|
1,626,558
|
$
|
1,626,558
|
$
|
1,626,558
|
$
|
-
|
$
|
-
|
||||||||||
Deposits with stated maturity (1)
|
373,915
|
373,144
|
-
|
373,144
|
-
|
|||||||||||||||
Other borrowings
|
12,468
|
14,508
|
-
|
14,508
|
-
|
|||||||||||||||
Subordinated debentures
|
35,569
|
21,974
|
-
|
21,974
|
-
|
|||||||||||||||
Accrued interest payable
|
364
|
364
|
20
|
344
|
-
|
|||||||||||||||
Derivative financial instruments
|
666
|
666
|
-
|
666
|
-
|
|||||||||||||||
December 31, 2014
|
||||||||||||||||||||
Assets
|
||||||||||||||||||||
Cash and due from banks
|
$
|
48,326
|
$
|
48,326
|
$
|
48,326
|
$
|
-
|
$
|
-
|
||||||||||
Interest bearing deposits
|
25,690
|
25,690
|
25,690
|
-
|
-
|
|||||||||||||||
Interest bearing deposits - time
|
13,561
|
13,585
|
-
|
13,585
|
-
|
|||||||||||||||
Trading securities
|
203
|
203
|
203
|
-
|
-
|
|||||||||||||||
Securities available for sale
|
533,178
|
533,178
|
-
|
533,178
|
-
|
|||||||||||||||
Federal Home Loan Bank and Federal
|
||||||||||||||||||||
Reserve Bank Stock
|
19,919
|
|
NA
|
|
NA
|
|
NA
|
NA
|
||||||||||||
Net loans and loans held for sale
|
1,407,634
|
1,394,424
|
-
|
23,662
|
1,370,762
|
|||||||||||||||
Accrued interest receivable
|
5,995
|
5,995
|
2
|
1,599
|
4,394
|
|||||||||||||||
Derivative financial instruments
|
619
|
619
|
-
|
619
|
-
|
|||||||||||||||
Liabilities
|
||||||||||||||||||||
Deposits with no stated maturity (1)
|
$
|
1,534,175
|
$
|
1,534,175
|
$
|
1,534,175
|
$
|
-
|
$
|
-
|
||||||||||
Deposits with stated maturity (1)
|
390,127
|
389,139
|
-
|
389,139
|
-
|
|||||||||||||||
Other borrowings
|
12,470
|
14,560
|
-
|
14,560
|
-
|
|||||||||||||||
Subordinated debentures
|
35,569
|
23,328
|
-
|
23,328
|
-
|
|||||||||||||||
Accrued interest payable
|
380
|
380
|
21
|
359
|
-
|
|||||||||||||||
Derivative financial instruments
|
366
|
366
|
-
|
366
|
-
|
(1)
|
Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $17.2 million and $13.6 million at March 31, 2015 and December 31, 2014, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $41.5 million and $40.1 million at March 31, 2015 and December 31, 2014, respectively.
|
14. | Contingent Liabilities |
15. | Accumulated Other Comprehensive Loss (“AOCL”) |
Unrealized
Gains
(Losses) on
Available
for Sale
Securities
|
Dispropor-
tionate
Tax Effects
from
Securities
Available
for Sale
|
Unrealized
Losses on
Settled
Derivatives
|
Total
|
|||||||||||||
For the three months ended March 31, 2015
|
||||||||||||||||
Balances at beginning of period
|
$
|
162
|
$
|
(5,798
|
)
|
$
|
-
|
$
|
(5,636
|
)
|
||||||
Other comprehensive income before reclassifications
|
1,483
|
-
|
-
|
1,483
|
||||||||||||
Amounts reclassified from AOCL
|
(49
|
)
|
-
|
-
|
(49
|
)
|
||||||||||
Net current period other comprehensive income
|
1,434
|
-
|
-
|
1,434
|
||||||||||||
Balances at end of period
|
$
|
1,596
|
$
|
(5,798
|
)
|
$
|
-
|
$
|
(4,202
|
)
|
||||||
For the three months ended March 31, 2014
|
||||||||||||||||
Balances at beginning of period
|
$
|
(3,200
|
)
|
$
|
(5,798
|
)
|
$
|
(247
|
)
|
$
|
(9,245
|
)
|
||||
Other comprehensive income before reclassifications
|
1,539
|
-
|
-
|
1,539
|
||||||||||||
Amounts reclassified from AOCL
|
-
|
-
|
62
|
62
|
||||||||||||
Net current period other comprehensive income
|
1,539
|
-
|
62
|
1,601
|
||||||||||||
Balances at end of period
|
$
|
(1,661
|
)
|
$
|
(5,798
|
)
|
$
|
(185
|
)
|
$
|
(7,644
|
)
|
AOCL Component
|
Amount
Reclassified
From
AOCL
|
Affected Line Item in Condensed
Consolidated Statements of Operations
|
|||
(In thousands)
|
|||||
2015
|
|||||
Unrealized gains on available for sale securities
|
|||||
$
|
75
|
Net gains on securities
|
|||
-
|
Net impairment loss recognized in earnings
|
||||
75
|
Total reclassifications before tax
|
||||
26
|
Tax expense
|
||||
$
|
49
|
Reclassifications, net of tax
|
|||
2014
|
|||||
Unrealized gains on settled derivatives
|
|||||
$
|
(95
|
)
|
Interest expense
|
||
(33
|
)
|
Tax benefit
|
|||
$
|
(62
|
)
|
Reclassification, net of tax
|
Key performance ratios
|
||||||||
Three months ended
March 31,
|
||||||||
2015
|
2014
|
|||||||
Net income (annualized) to
|
||||||||
Average assets
|
0.67
|
%
|
0.57
|
%
|
||||
Average common shareholders’ equity
|
6.05
|
5.41
|
||||||
Net income per common share
|
||||||||
Basic
|
$
|
0.16
|
$
|
0.14
|
||||
Diluted
|
0.16
|
0.13
|
Average Balances and Rates
|
||||||||||||||||||||||||
Three Months Ended
March 31, |
||||||||||||||||||||||||
2015
|
2014
|
|||||||||||||||||||||||
Average
Balance |
Interest
|
Rate(3)
|
Average
Balance |
Interest
|
Rate(3)
|
|||||||||||||||||||
Assets (1)
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Taxable loans
|
$
|
1,420,272
|
$
|
17,195
|
4.88
|
%
|
$
|
1,369,065
|
$
|
18,162
|
5.36
|
%
|
||||||||||||
Tax-exempt loans(2)
|
4,360
|
68
|
6.33
|
5,193
|
82
|
6.40
|
||||||||||||||||||
Taxable securities
|
506,411
|
1,758
|
1.39
|
441,783
|
1,383
|
1.27
|
||||||||||||||||||
Tax-exempt securities(2)
|
33,877
|
333
|
3.93
|
41,023
|
399
|
3.94
|
||||||||||||||||||
Cash – interest bearing
|
75,171
|
70
|
0.38
|
108,855
|
91
|
0.34
|
||||||||||||||||||
Other investments
|
19,991
|
268
|
5.44
|
23,419
|
332
|
5.75
|
||||||||||||||||||
Interest Earning Assets
|
2,060,082
|
19,692
|
3.86
|
1,989,338
|
20,449
|
4.16
|
||||||||||||||||||
Cash and due from banks
|
46,035
|
45,439
|
||||||||||||||||||||||
Other assets, net
|
171,878
|
188,246
|
||||||||||||||||||||||
Total Assets
|
$
|
2,277,995
|
$
|
2,223,023
|
||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||
Savings and interest-bearing checking
|
$
|
985,482
|
266
|
0.11
|
$
|
946,295
|
263
|
0.11
|
||||||||||||||||
Time deposits
|
376,958
|
741
|
0.80
|
443,630
|
1,030
|
0.94
|
||||||||||||||||||
Other borrowings
|
48,038
|
454
|
3.83
|
54,329
|
512
|
3.82
|
||||||||||||||||||
Interest Bearing Liabilities
|
1,410,478
|
1,461
|
0.42
|
1,444,254
|
1,805
|
0.51
|
||||||||||||||||||
Non-interest bearing deposits
|
590,088
|
511,463
|
||||||||||||||||||||||
Other liabilities
|
23,955
|
32,284
|
||||||||||||||||||||||
Shareholders’ equity
|
253,474
|
235,022
|
||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
2,277,995
|
$
|
2,223,023
|
||||||||||||||||||||
Net Interest Income
|
$
|
18,231
|
$
|
18,644
|
||||||||||||||||||||
Net Interest Income as a Percent of Average Interest Earning Assets
|
3.57
|
%
|
3.79
|
%
|
(1) | All domestic. |
(2) | Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 35%. |
(3) | Annualized. |
Non-Interest Income
|
||||||||
Three months ended
March 31,
|
||||||||
2015
|
2014
|
|||||||
(In thousands)
|
||||||||
Service charges on deposit accounts
|
$
|
2,850
|
$
|
3,055
|
||||
Interchange income
|
2,142
|
1,941
|
||||||
Net gains on assets
|
||||||||
Mortgage loans
|
2,139
|
1,144
|
||||||
Securities
|
85
|
112
|
||||||
Mortgage loan servicing
|
(420
|
)
|
264
|
|||||
Investment and insurance commissions
|
446
|
402
|
||||||
Bank owned life insurance
|
350
|
319
|
||||||
Title insurance fees
|
256
|
274
|
||||||
Other
|
1,114
|
1,444
|
||||||
Total non-interest income
|
$
|
8,962
|
$
|
8,955
|
Mortgage Loan Activity
|
||||||||
Three months ended
March 31,
|
||||||||
2015
|
2014
|
|||||||
(Dollars in thousands)
|
||||||||
Mortgage loans originated
|
$
|
79,790
|
$
|
44,241
|
||||
Mortgage loans sold
|
68,727
|
47,118
|
||||||
Mortgage loans sold with servicing rights released
|
2,669
|
7,861
|
||||||
Net gains on the sale of mortgage loans
|
2,139
|
1,144
|
||||||
Net gains as a percentage of mortgage loans sold (“Loan Sales Margin”)
|
3.11
|
%
|
2.43
|
%
|
||||
Fair value adjustments included in the Loan Sales Margin
|
0.81
|
(0.14
|
)
|
Capitalized Mortgage Loan Servicing Rights
|
||||||||
Three months ended
March 31,
|
||||||||
2015
|
2014
|
|||||||
(In thousands)
|
||||||||
Balance at beginning of period
|
$
|
12,106
|
$
|
13,710
|
||||
Originated servicing rights capitalized
|
663
|
382
|
||||||
Amortization
|
(759
|
)
|
(534
|
)
|
||||
(Increase) decrease in valuation allowance
|
(692
|
)
|
(285
|
)
|
||||
Balance at end of period
|
$
|
11,318
|
$
|
13,273
|
||||
Valuation allowance at end of period
|
$
|
4,465
|
$
|
3,140
|
Non-Interest Expense
|
||||||||
Three months ended
March 31,
|
||||||||
2015
|
2014
|
|||||||
(In thousands)
|
||||||||
Compensation
|
$
|
8,330
|
$
|
8,308
|
||||
Performance-based compensation
|
1,288
|
912
|
||||||
Payroll taxes and employee benefits
|
2,167
|
2,018
|
||||||
Compensation and employee benefits
|
11,785
|
11,238
|
||||||
Occupancy, net
|
2,419
|
2,483
|
||||||
Data processing
|
1,930
|
2,086
|
||||||
Loan and collection
|
1,155
|
1,465
|
||||||
Furniture, fixtures and equipment
|
952
|
1,069
|
||||||
Communications
|
736
|
789
|
||||||
Advertising
|
484
|
519
|
||||||
Legal and professional fees
|
380
|
401
|
||||||
FDIC deposit insurance
|
343
|
417
|
||||||
Interchange expense
|
291
|
402
|
||||||
Supplies
|
213
|
239
|
||||||
Credit card and bank service fees
|
202
|
263
|
||||||
Amortization of intangible assets
|
87
|
134
|
||||||
Vehicle service contract counterparty contingencies
|
29
|
68
|
||||||
Costs related to unfunded lending commitments
|
16
|
10
|
||||||
Net gains on other real estate and repossessed assets
|
(39
|
)
|
(87
|
)
|
||||
Provision for loss reimbursement on sold loans
|
(69
|
)
|
(481
|
)
|
||||
Other
|
1,237
|
1,385
|
||||||
Total non-interest expense
|
$
|
22,151
|
$
|
22,400
|
Business Segments
|
||||||||
Three months ended
March 31,
|
||||||||
2015
|
2014
|
|||||||
(In thousands)
|
||||||||
Independent Bank
|
$
|
4,233
|
$
|
3,182
|
||||
Mepco
|
(192
|
)
|
243
|
|||||
Other(1)
|
(244
|
)
|
(263
|
)
|
||||
Elimination
|
(16
|
)
|
(24
|
)
|
||||
Net income
|
$
|
3,781
|
$
|
3,138
|
(1) | Includes amounts relating to our parent company and certain insignificant operations. |
Securities
|
||||||||||||||||
Unrealized
|
||||||||||||||||
Amortized Cost
|
Gains
|
Losses
|
Fair
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Securities available for sale
|
||||||||||||||||
March 31, 2015
|
$
|
569,308
|
$
|
4,544
|
$
|
2,090
|
$
|
571,762
|
||||||||
December 31, 2014
|
532,930
|
3,317
|
3,069
|
533,178
|
||||||||||||
Three months ended
March 31,
|
||||||||
2015
|
2014
|
|||||||
(In thousands)
|
||||||||
Proceeds
|
$
|
11,786
|
$
|
-
|
||||
Gross gains
|
$
|
75
|
$
|
-
|
||||
Gross losses
|
-
|
-
|
||||||
Net impairment charges
|
-
|
-
|
||||||
Fair value adjustments
|
10
|
112
|
||||||
Net gains
|
$
|
85
|
$
|
112
|
Non-performing assets(1)
|
||||||||
March 31,
2015
|
December 31,
2014
|
|||||||
(Dollars in thousands)
|
||||||||
Non-accrual loans
|
$
|
14,593
|
$
|
15,231
|
||||
Loans 90 days or more past due and still accruing interest
|
194
|
7
|
||||||
Total non-performing loans
|
14,787
|
15,238
|
||||||
Other real estate and repossessed assets
|
5,662
|
6,454
|
||||||
Total non-performing assets
|
$
|
20,449
|
$
|
21,692
|
||||
As a percent of Portfolio Loans
|
||||||||
Non-performing loans
|
1.04
|
%
|
1.08
|
%
|
||||
Allowance for loan losses
|
1.73
|
1.84
|
||||||
Non-performing assets to total assets
|
0.88
|
0.96
|
||||||
Allowance for loan losses as a percent of non-performing loans
|
166.90
|
170.56
|
(1)
|
Excludes loans classified as “troubled debt restructured” that are not past due and vehicle service contract counterparty receivables, net.
|
Troubled debt restructurings (“TDR”)
|
||||||||||||
March 31, 2015
|
||||||||||||
Commercial
|
Retail
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Performing TDRs
|
$
|
27,904
|
$
|
71,477
|
$
|
99,381
|
||||||
Non-performing TDRs (1)
|
1,935
|
5,194
|
(2)
|
7,129
|
||||||||
Total
|
$
|
29,839
|
$
|
76,671
|
$
|
106,510
|
December 31, 2014
|
||||||||||||
Commercial
|
Retail
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Performing TDRs
|
$
|
29,475
|
$
|
73,496
|
$
|
102,971
|
||||||
Non-performing TDRs (1)
|
1,978
|
5,225
|
(2)
|
7,203
|
||||||||
Total
|
$
|
31,453
|
$
|
78,721
|
$
|
110,174
|
(1) | Included in the “Non-performing assets” table above. |
(2) | Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. |
Allowance for loan losses
|
Three months ended
March 31,
|
|||||||||||||||
2015
|
2014
|
|||||||||||||||
Loans
|
Unfunded
Commitments
|
Loans
|
Unfunded
Commitments
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Balance at beginning of period
|
$
|
25,990
|
$
|
539
|
$
|
32,325
|
$
|
508
|
||||||||
Additions (deduction)
|
||||||||||||||||
Provision for loan losses
|
(659
|
)
|
-
|
428
|
-
|
|||||||||||
Recoveries credited to allowance
|
990
|
-
|
1,068
|
-
|
||||||||||||
Loans charged against the allowance
|
(1,642
|
)
|
-
|
(3,384
|
)
|
-
|
||||||||||
Additions (deductions) included in non-interest expense
|
-
|
16
|
-
|
10
|
||||||||||||
Balance at end of period
|
$
|
24,679
|
$
|
555
|
$
|
30,437
|
$
|
518
|
||||||||
Net loans charged against the allowance to average Portfolio Loans (annualized)
|
0.19
|
%
|
0.69
|
%
|
Allocation of the Allowance for Loan Losses
|
||||||||
March 31,
2015
|
December 31,
2014
|
|||||||
(In thousands)
|
||||||||
Specific allocations
|
$
|
12,480
|
$
|
13,233
|
||||
Other adversely rated commercial loans
|
1,033
|
761
|
||||||
Historical loss allocations
|
6,110
|
6,773
|
||||||
Additional allocations based on subjective factors
|
5,056
|
5,223
|
||||||
Total
|
$
|
24,679
|
$
|
25,990
|
Capitalization
|
||||||||
March 31,
2015
|
December 31,
2014
|
|||||||
(In thousands)
|
||||||||
Subordinated debentures
|
$
|
35,569
|
$
|
35,569
|
||||
Amount not qualifying as regulatory capital
|
(1,069
|
)
|
(1,069
|
)
|
||||
Amount qualifying as regulatory capital
|
34,500
|
34,500
|
||||||
Shareholders’ equity
|
||||||||
Common stock
|
351,881
|
352,462
|
||||||
Accumulated deficit
|
(94,054
|
)
|
(96,455
|
)
|
||||
Accumulated other comprehensive loss
|
(4,202
|
)
|
(5,636
|
)
|
||||
Total shareholders’ equity
|
253,625
|
250,371
|
||||||
Total capitalization
|
$
|
288,125
|
$
|
284,871
|
Changes in Market Value of Portfolio Equity and Net Interest Income
|
||||||||||||||||
Change in Interest
Rates
|
Market Value
Of Portfolio |
Percent
Change |
Net Interest
Income(2) |
Percent
Change |
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
March 31, 2015
|
||||||||||||||||
200 basis point rise
|
$
|
425,300
|
10.96
|
%
|
$
|
78,500
|
7.68
|
%
|
||||||||
100 basis point rise
|
408,100
|
6.47
|
75,900
|
4.12
|
||||||||||||
Base-rate scenario
|
383,300
|
-
|
72,900
|
-
|
||||||||||||
100 basis point decline
|
350,100
|
(8.66
|
)
|
70,300
|
(3.57
|
)
|
||||||||||
December 31, 2014
|
||||||||||||||||
200 basis point rise
|
$
|
421,700
|
9.56
|
%
|
$
|
75,600
|
6.03
|
%
|
||||||||
100 basis point rise
|
406,800
|
5.69
|
73,600
|
3.23
|
||||||||||||
Base-rate scenario
|
384,900
|
-
|
71,300
|
-
|
||||||||||||
100 basis point decline
|
355,000
|
(7.77
|
)
|
69,200
|
(2.95
|
)
|
(1) | Simulation analyses calculate the change in the net present value of our assets and liabilities, including debt and related financial derivative instruments, under parallel shifts in interest rates by discounting the estimated future cash flows using a market-based discount rate. Cash flow estimates incorporate anticipated changes in prepayment speeds and other embedded options. |
(2) | Simulation analyses calculate the change in net interest income under immediate parallel shifts in interest rates over the next twelve months, based upon a static statement of financial condition, which includes debt and related financial derivative instruments, and do not consider loan fees. |
(a) | Evaluation of Disclosure Controls and Procedures. |
(b) | Changes in Internal Controls. |
Period
|
Total Number of
Shares Purchased (1) |
Average Price
Paid Per Share |
Total Number of
Shares Purchased |
Remaining
Number of |
||||||||||||
January 2015
|
-
|
$
|
-
|
-
|
1,147,930
|
|||||||||||
February 2015
|
66,669
|
12.93
|
10,900
|
1,137,030
|
||||||||||||
March 2015
|
59,743
|
12.80
|
59,743
|
1,077,287
|
||||||||||||
Total
|
126,412
|
$
|
12.87
|
70,643
|
1,077,287
|
(1) | Represents (i) 50,568 shares of our common stock purchased in the open market by the Independent Bank Corporation Employee Stock Ownership Trust as part of our employee stock ownership plan, (ii) 5,201 shares withheld from the shares that would otherwise have been issued to certain officers in order to satisfy tax withholding obligations resulting from vesting of restricted stock and (iii) 70,643 shares purchased in the open market pursuant to a publicly announced plan. |
(a) | The following exhibits (listed by number corresponding to the Exhibit Table as Item 601 in Regulation S-K) are filed with this report: |
11. | Computation of Earnings Per Share. |
31.1 | Certificate of the Chief Executive Officer of Independent Bank Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350). |
31.2 | Certificate of the Chief Financial Officer of Independent Bank Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350). |
32.1 | Certificate of the Chief Executive Officer of Independent Bank Corporation pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350). |
32.2 | Certificate of the Chief Financial Officer of Independent Bank Corporation pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350). |
101.INS
|
Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
Date
|
May 6, 2015
|
By
|
/s/ Robert N. Shuster
|
|
Robert N. Shuster, Principal Financial Officer
|
||||
Date
|
May 6, 2015
|
By
|
/s/ James J. Twarozynski
|
|
James J. Twarozynski, Principal Accounting Officer
|
1. | I have reviewed this quarterly report on Form 10-Q of Independent Bank Corporation; |
2. | Based on my knowledge, this quarterly 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 quarterly report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly 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 we 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 quarterly 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 quarterly 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; |
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 controls over financial reporting. |
INDEPENDENT BANK CORPORATION
|
|
Date: May 6, 2015
|
/s/ William B. Kessel
William B. Kessel
President and Chief Executive Officer
|
1. | I have reviewed this quarterly report on Form 10-Q of Independent Bank Corporation; |
2. | Based on my knowledge, this quarterly 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 quarterly report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly 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 we 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 quarterly 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 quarterly 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; |
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 controls over financial reporting. |
INDEPENDENT BANK CORPORATION
|
|
Date: May 6, 2015
|
/s/ Robert N. Shuster
Robert N. Shuster
Chief Financial Officer
|
INDEPENDENT BANK CORPORATION
|
|
Date: May 6, 2015
|
/s/ William B. Kessel
William B. Kessel
President and Chief Executive Officer
|
INDEPENDENT BANK CORPORATION
|
|
Date: May 6, 2015
|
/s/ Robert N. Shuster
Robert N. Shuster
Chief Financial Officer
|
Contingent Liabilities (Details) (USD $)
|
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2015
|
Mar. 31, 2014
|
Dec. 31, 2009
|
Dec. 31, 2014
|
|
Loss Contingencies [Line Items] | ||||
Aggregate amount of counterparty obligations | $ 7,229,000 | $ 7,237,000 | ||
VSC counterparty contingency expense | 29,000 | 68,000 | ||
Loss reimbursement on sold loans | 60,000 | |||
Provision for loss reimbursement on sold loans | (69,000) | (481,000) | ||
Reserve For Loss Reimbursement On Sold Loans | 700,000 | |||
Pending Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Maximum range of reasonably possible loss | $ 500,000 | |||
Accounts Receivables Due to Mepco [Member] | ||||
Loss Contingencies [Line Items] | ||||
Installment payments period for service contract, minimum | 12 months | |||
Installment payments period for service contract, maximum | 24 months |
Regulatory Matters (Details) (USD $)
|
0 Months Ended | 3 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jan. 31, 2015
|
Mar. 31, 2014
|
Mar. 31, 2015
|
Feb. 17, 2015
|
Dec. 31, 2014
|
Apr. 09, 2014
|
Dec. 31, 2013
|
Jul. 02, 2013
|
|
Regulatory Matters [Abstract] | ||||||||
Undivided profits | $ (27,100,000) | |||||||
Common Equity Tier One Risk Based Capital To Risk Weighted Assets Required (in hundredths) | 4.50% | |||||||
Common Equity Tier One Risk Based Capital To Risk Weighted Assets Conservation Buffer Required (in hundredths) | 2.50% | |||||||
Minimum leverage ratio (in hundredths) | 4.00% | |||||||
Subsequent Event [Line Items] | ||||||||
Request for approval to transfer capital from bank to parent entity | 18,500,000 | 15,000,000 | ||||||
Transfer of capital from bank to the parent company | 18,500,000 | 15,000,000 | ||||||
Components of regulatory capital [Abstract] | ||||||||
Total shareholders' equity | 236,586,000 | 253,625,000 | 250,371,000 | 231,581,000 | ||||
Add (deduct) [Abstract] | ||||||||
Accumulated other comprehensive loss | (7,644,000) | (4,202,000) | (5,636,000) | (9,245,000) | ||||
Intangible assets | (2,540,000) | (2,627,000) | ||||||
Minimum [Member] | ||||||||
Tier 1 capital to risk-weighted assets [Abstract] | ||||||||
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | 4.00% | |||||||
Add (deduct) [Abstract] | ||||||||
Minimum ratio of tier 1 capital to risk weighted assets (in hundredths) | 4.00% | |||||||
Maximum [Member] | ||||||||
Tier 1 capital to risk-weighted assets [Abstract] | ||||||||
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | 6.00% | |||||||
Add (deduct) [Abstract] | ||||||||
Minimum ratio of tier 1 capital to risk weighted assets (in hundredths) | 6.00% | |||||||
Consolidated [Member] | ||||||||
Total capital to risk-weighted assets [Abstract] | ||||||||
Total risk-based capital | 271,391,000 | 265,163,000 | ||||||
Minimum for Adequately Capitalized Institutions, Amount | 125,611,000 | 117,427,000 | ||||||
Actual, Ratio (in hundredths) | 17.28% | 18.06% | ||||||
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | 8.00% | 8.00% | ||||||
Tier 1 capital to risk-weighted assets [Abstract] | ||||||||
Actual, Amount | 251,443,000 | 246,628,000 | ||||||
Minimum for Adequately Capitalized Institutions, Amount | 94,208,000 | 58,714,000 | ||||||
Actual, Ratio (in hundredths) | 16.01% | 16.80% | ||||||
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | 6.00% | 4.00% | ||||||
Common equity tier 1 capital to risk-weighted assets [Abstract] | ||||||||
Actual, Amount | 237,386,000 | 212,128,000 | ||||||
Minimum for Adequately Capitalized Institutions, Amount | 62,806,000 | |||||||
Actual, Ratio (in hundredths) | 15.12% | |||||||
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | 4.50% | |||||||
Tier 1 capital to average assets [Abstract] | ||||||||
Tier 1 capital | 251,443,000 | 246,628,000 | ||||||
Minimum for Adequately Capitalized Institutions, Amount | 89,647,000 | 88,206,000 | ||||||
Actual, Ratio (in hundredths) | 11.22% | 11.18% | ||||||
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | 4.00% | 4.00% | ||||||
Components of regulatory capital [Abstract] | ||||||||
Total shareholders' equity | 253,625,000 | 250,371,000 | ||||||
Add (deduct) [Abstract] | ||||||||
Accumulated other comprehensive loss | (1,596,000) | 5,636,000 | ||||||
Intangible assets | (1,016,000) | (2,627,000) | ||||||
Disallowed deferred tax assets | (13,627,000) | (40,500,000) | ||||||
Disallowed capitalized mortgage loan servicing rights | 0 | (752,000) | ||||||
Common equity tier 1 capital | 237,386,000 | 212,128,000 | ||||||
Qualifying trust preferred securities | 34,500,000 | 34,500,000 | ||||||
Disallowed deferred tax assets | (20,443,000) | 0 | ||||||
Tier 1 capital | 251,443,000 | 246,628,000 | ||||||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets | 19,948,000 | 18,535,000 | ||||||
Total risk-based capital | 271,391,000 | 265,163,000 | ||||||
Minimum ratio of tier 1 capital to risk weighted assets (in hundredths) | 6.00% | 4.00% | ||||||
Independent Bank [Member] | ||||||||
Total capital to risk-weighted assets [Abstract] | ||||||||
Total risk-based capital | 237,073,000 | 247,883,000 | ||||||
Minimum for Adequately Capitalized Institutions, Amount | 125,456,000 | 117,374,000 | ||||||
Minimum for Well Capitalized Institutions, Amount | 156,820,000 | 146,718,000 | ||||||
Actual, Ratio (in hundredths) | 15.12% | 16.90% | ||||||
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | 8.00% | 8.00% | ||||||
Minimum for Well-Capitalized Institutions, Ratio (in hundredths) | 10.00% | 10.00% | ||||||
Tier 1 capital to risk-weighted assets [Abstract] | ||||||||
Actual, Amount | 217,216,000 | 229,361,000 | ||||||
Minimum for Adequately Capitalized Institutions, Amount | 94,092,000 | 58,687,000 | ||||||
Minimum for Well-Capitalized Institutions, Amount | 125,456,000 | 88,031,000 | ||||||
Actual, Ratio (in hundredths) | 13.85% | 15.63% | ||||||
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | 6.00% | 4.00% | ||||||
Minimum for Well Capitalized Institutions, Ratio (in hundredths) | 8.00% | 6.00% | ||||||
Common equity tier 1 capital to risk-weighted assets [Abstract] | ||||||||
Actual, Amount | 217,216,000 | 229,361,000 | ||||||
Minimum for Adequately Capitalized Institutions, Amount | 70,569,000 | |||||||
Minimum for Well-Capitalized Institutions, Amount | 101,933,000 | |||||||
Actual, Ratio (in hundredths) | 13.85% | |||||||
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | 4.50% | |||||||
Minimum for Well Capitalized Institutions, Ratio (in hundredths) | 6.50% | |||||||
Tier 1 capital to average assets [Abstract] | ||||||||
Tier 1 capital | 217,216,000 | 229,361,000 | ||||||
Minimum for Adequately Capitalized Institutions, Amount | 89,576,000 | 87,687,000 | ||||||
Minimum for Well-Capitalized Institutions, Amount | 111,970,000 | 109,609,000 | ||||||
Actual, Ratio (in hundredths) | 9.70% | 10.46% | ||||||
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | 4.00% | 4.00% | ||||||
Minimum for Well-Capitalized Institutions, Ratio (in hundredths) | 5.00% | 5.00% | ||||||
Components of regulatory capital [Abstract] | ||||||||
Total shareholders' equity | 244,807,000 | 257,832,000 | ||||||
Add (deduct) [Abstract] | ||||||||
Accumulated other comprehensive loss | (1,596,000) | 5,636,000 | ||||||
Intangible assets | (1,016,000) | (2,627,000) | ||||||
Disallowed deferred tax assets | (24,979,000) | (30,728,000) | ||||||
Disallowed capitalized mortgage loan servicing rights | 0 | (752,000) | ||||||
Common equity tier 1 capital | 217,216,000 | 229,361,000 | ||||||
Qualifying trust preferred securities | 0 | 0 | ||||||
Disallowed deferred tax assets | 0 | 0 | ||||||
Tier 1 capital | 217,216,000 | 229,361,000 | ||||||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets | 19,857,000 | 18,522,000 | ||||||
Total risk-based capital | $ 237,073,000 | $ 247,883,000 | ||||||
Minimum ratio of tier 1 capital to risk weighted assets (in hundredths) | 6.00% | 4.00% |
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