Indiana
|
0-11487
|
35-1559596
|
(State or Other Jurisdiction
|
(Commission File Number)
|
(IRS Employer
|
of Incorporation or Organization)
|
Identification No.)
|
Page Number
|
||
Item 1.
|
1
|
|
Item 2.
|
||
40
|
||
Item 3.
|
56
|
|
Item 4.
|
56
|
Page Number
|
||
Item 1.
|
57
|
|
Item 1A.
|
57
|
|
Item 2.
|
57
|
|
Item 3.
|
57
|
|
Item 4.
|
58
|
|
Item 5.
|
58
|
|
Item 6.
|
58
|
|
Form 10-Q
|
59
|
September 30,
|
December 31,
|
||
2011
|
2010
|
||
(Unaudited)
|
|||
ASSETS
|
|||
Cash and due from banks
|
$ 54,832
|
$ 42,513
|
|
Short-term investments
|
46,446
|
17,628
|
|
Total cash and cash equivalents
|
101,278
|
60,141
|
|
Securities available for sale (carried at fair value)
|
464,072
|
442,620
|
|
Real estate mortgage loans held for sale
|
5,444
|
5,606
|
|
Loans, net of allowance for loan losses of $52,073 and $45,007
|
2,128,935
|
2,044,952
|
|
Land, premises and equipment, net
|
31,660
|
30,405
|
|
Bank owned life insurance
|
39,714
|
38,826
|
|
Accrued income receivable
|
8,895
|
9,074
|
|
Goodwill
|
4,970
|
4,970
|
|
Other intangible assets
|
112
|
153
|
|
Other assets
|
42,358
|
45,179
|
|
Total assets
|
$ 2,827,438
|
$ 2,681,926
|
September 30,
|
December 31,
|
||
2011
|
2010
|
||
(Unaudited)
|
|||
LIABILITIES AND EQUITY
|
|||
LIABILITIES
|
|||
Noninterest bearing deposits
|
$ 323,666
|
$ 305,107
|
|
Interest bearing deposits
|
2,032,693
|
1,895,918
|
|
Total deposits
|
2,356,359
|
2,201,025
|
|
Short-term borrowings
|
|||
Securities sold under agreements to repurchase
|
139,016
|
142,015
|
|
U.S. Treasury demand notes
|
2,560
|
2,037
|
|
Other short-term borrowings
|
0
|
30,000
|
|
Total short-term borrowings
|
141,576
|
174,052
|
|
Accrued expenses payable
|
12,795
|
11,476
|
|
Other liabilities
|
1,893
|
2,318
|
|
Long-term borrowings
|
15,040
|
15,041
|
|
Subordinated debentures
|
30,928
|
30,928
|
|
Total liabilities
|
2,558,591
|
2,434,840
|
|
EQUITY
|
|||
Common stock: 90,000,000 shares authorized, no par value
|
|||
16,211,319 shares issued and 16,140,533 outstanding as of September 30, 2011
|
|||
16,169,119 shares issued and 16,078,420 outstanding as of December 31, 2010
|
87,015
|
85,766
|
|
Retained earnings
|
176,154
|
161,299
|
|
Accumulated other comprehensive gain
|
6,800
|
1,350
|
|
Treasury stock, at cost (2011 - 70,786 shares, 2010 - 90,699 shares)
|
(1,211)
|
(1,418)
|
|
Total stockholders' equity
|
268,758
|
246,997
|
|
Noncontrolling interest
|
89
|
89
|
|
Total equity
|
268,847
|
247,086
|
|
Total liabilities and equity
|
$ 2,827,438
|
$ 2,681,926
|
Three Months Ended
|
Nine Months Ended
|
||||||
September 30,
|
September 30,
|
||||||
2011
|
2010
|
2011
|
2010
|
||||
NET INTEREST INCOME
|
|||||||
Interest and fees on loans
|
|||||||
Taxable
|
$ 26,390
|
$ 26,381
|
$ 78,555
|
$ 77,676
|
|||
Tax exempt
|
114
|
22
|
357
|
60
|
|||
Interest and dividends on securities
|
|||||||
Taxable
|
3,217
|
4,033
|
10,635
|
12,374
|
|||
Tax exempt
|
692
|
669
|
2,068
|
2,022
|
|||
Interest on short-term investments
|
18
|
19
|
114
|
60
|
|||
Total interest income
|
30,431
|
31,124
|
91,729
|
92,192
|
|||
Interest on deposits
|
7,090
|
7,194
|
20,868
|
20,642
|
|||
Interest on borrowings
|
|||||||
Short-term
|
159
|
150
|
477
|
587
|
|||
Long-term
|
361
|
563
|
1,084
|
1,633
|
|||
Total interest expense
|
7,610
|
7,907
|
22,429
|
22,862
|
|||
NET INTEREST INCOME
|
22,821
|
23,217
|
69,300
|
69,330
|
|||
Provision for loan losses
|
2,400
|
6,150
|
10,900
|
17,426
|
|||
NET INTEREST INCOME AFTER PROVISION FOR
|
|||||||
LOAN LOSSES
|
20,421
|
17,067
|
58,400
|
51,904
|
|||
NONINTEREST INCOME
|
|||||||
Wealth advisory fees
|
866
|
784
|
2,613
|
2,409
|
|||
Investment brokerage fees
|
741
|
676
|
2,093
|
1,692
|
|||
Service charges on deposit accounts
|
2,036
|
2,205
|
5,938
|
6,265
|
|||
Loan, insurance and service fees
|
1,259
|
1,100
|
3,595
|
3,094
|
|||
Merchant card fee income
|
253
|
263
|
775
|
846
|
|||
Other income
|
362
|
491
|
1,380
|
1,506
|
|||
Mortgage banking income
|
440
|
774
|
594
|
939
|
|||
Net securities gains (losses)
|
(1)
|
4
|
(167)
|
4
|
|||
Other than temporary impairment loss on available-for-sale securities:
|
|||||||
Total impairment losses recognized on securities
|
(33)
|
(85)
|
(154)
|
(337)
|
|||
Loss recognized in other comprehensive income
|
0
|
0
|
0
|
0
|
|||
Net impairment loss recognized in earnings
|
(33)
|
(85)
|
(154)
|
(337)
|
|||
Total noninterest income
|
5,923
|
6,212
|
16,667
|
16,418
|
Three Months Ended
|
Nine Months Ended
|
||||||
September 30,
|
September 30,
|
||||||
2011
|
2010
|
2011
|
2010
|
||||
NONINTEREST EXPENSE
|
|||||||
Salaries and employee benefits
|
8,611
|
7,659
|
24,802
|
22,729
|
|||
Occupancy expense
|
746
|
711
|
2,373
|
2,199
|
|||
Equipment costs
|
536
|
517
|
1,600
|
1,568
|
|||
Data processing fees and supplies
|
729
|
1,004
|
2,820
|
2,930
|
|||
Credit card interchange
|
0
|
31
|
2
|
144
|
|||
Other expense
|
2,857
|
3,707
|
10,023
|
10,532
|
|||
Total noninterest expense
|
13,479
|
13,629
|
41,620
|
40,102
|
|||
INCOME BEFORE INCOME TAX EXPENSE
|
12,865
|
9,650
|
33,447
|
28,220
|
|||
Income tax expense
|
4,418
|
3,129
|
11,046
|
9,459
|
|||
NET INCOME
|
$ 8,447
|
$ 6,521
|
$ 22,401
|
$ 18,761
|
|||
Dividends and accretion of discount on preferred stock
|
0
|
0
|
0
|
3,187
|
|||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
|
$ 8,447
|
$ 6,521
|
$ 22,401
|
$ 15,574
|
|||
BASIC WEIGHTED AVERAGE COMMON SHARES
|
16,208,889
|
16,138,809
|
16,201,900
|
16,112,108
|
|||
BASIC EARNINGS PER COMMON SHARE
|
$ 0.52
|
$ 0.40
|
$ 1.38
|
$ 0.97
|
|||
DILUTED WEIGHTED AVERAGE COMMON SHARES
|
16,324,058
|
16,232,254
|
16,309,814
|
16,205,133
|
|||
DILUTED EARNINGS PER COMMON SHARE
|
$ 0.52
|
$ 0.40
|
$ 1.37
|
$ 0.96
|
Accumulated
|
||||||||||||
Other
|
Total
|
|||||||||||
Preferred
|
Common
|
Retained
|
Comprehensive
|
Treasury
|
Stockholders'
|
|||||||
Stock
|
Stock
|
Earnings
|
Income (Loss)
|
Stock
|
Equity
|
|||||||
Balance at January 1, 2010
|
$ 54,095
|
$ 83,487
|
$ 149,945
|
$ (5,993)
|
$ (1,540)
|
$ 279,994
|
||||||
Comprehensive income:
|
||||||||||||
Net income
|
18,761
|
18,761
|
||||||||||
Other comprehensive income (loss), net of tax
|
9,675
|
9,675
|
||||||||||
Comprehensive income
|
28,436
|
|||||||||||
Common stock cash dividends declared, $.465 per share
|
(7,489)
|
(7,489)
|
||||||||||
Treasury shares purchased under deferred directors' plan
|
||||||||||||
(10,254 shares)
|
195
|
(195)
|
0
|
|||||||||
Treasury shares sold under deferred directors' plan
|
||||||||||||
(4,477 shares)
|
(90)
|
90
|
0
|
|||||||||
Stock activity under stock compensation plans (54,108 shares)
|
580
|
580
|
||||||||||
Stock compensation expense
|
1,212
|
1,212
|
||||||||||
Redemption of 56,044 shares preferred stock
|
(56,044)
|
(56,044)
|
||||||||||
Accretion of preferred stock discount
|
1,949
|
(1,949)
|
0
|
|||||||||
Preferred stock dividend paid and/or accrued
|
(1,251)
|
(1,251)
|
||||||||||
Balance at September 30, 2010
|
$ 0
|
$ 85,384
|
$ 158,017
|
$ 3,682
|
$ (1,645)
|
$ 245,438
|
||||||
Balance at January 1, 2011
|
$ 0
|
$ 85,766
|
$ 161,299
|
$ 1,350
|
$ (1,418)
|
$ 246,997
|
||||||
Comprehensive income:
|
||||||||||||
Net income
|
22,401
|
22,401
|
||||||||||
Other comprehensive income (loss), net of tax
|
5,450
|
5,450
|
||||||||||
Comprehensive income
|
27,851
|
|||||||||||
Common stock cash dividends declared, $.465 per share
|
(7,546)
|
(7,546)
|
||||||||||
Treasury shares purchased under deferred directors' plan
|
||||||||||||
(10,187 shares)
|
233
|
(233)
|
0
|
|||||||||
Treasury shares sold under deferred directors' plan
|
||||||||||||
(30,100 shares)
|
(440)
|
440
|
0
|
|||||||||
Stock activity under stock compensation plans (42,200 shares)
|
395
|
395
|
||||||||||
Stock compensation expense
|
1,061
|
1,061
|
||||||||||
Balance at September 30, 2011
|
$ 0
|
$ 87,015
|
$ 176,154
|
$ 6,800
|
$ (1,211)
|
$ 268,758
|
2011
|
2010
|
||
Cash flows from operating activities:
|
|||
Net income
|
$ 22,401
|
$ 18,761
|
|
Adjustments to reconcile net income to net cash from operating
|
|||
activities:
|
|||
Depreciation
|
1,660
|
1,656
|
|
Provision for loan losses
|
10,900
|
17,426
|
|
Loss on sale and write down of other real estate owned
|
358
|
118
|
|
Amortization of intangible assets
|
41
|
41
|
|
Amortization of loan servicing rights
|
427
|
463
|
|
Net change in loan servicing rights valuation allowance
|
162
|
180
|
|
Loans originated for sale
|
(48,294)
|
(56,044)
|
|
Net gain on sales of loans
|
(1,004)
|
(1,255)
|
|
Proceeds from sale of loans
|
49,086
|
53,496
|
|
Net loss on sales of premises and equipment
|
17
|
4
|
|
Net loss (gain) on sales of securities available for sale
|
167
|
(4)
|
|
Impairment on available for sale securities
|
154
|
337
|
|
Net securities amortization
|
2,255
|
1,235
|
|
Stock compensation expense
|
1,061
|
1,212
|
|
Earnings on life insurance
|
(726)
|
(763)
|
|
Tax benefit of stock option exercises
|
(96)
|
(178)
|
|
Net change:
|
|||
Accrued income receivable
|
179
|
(579)
|
|
Accrued expenses payable
|
1,259
|
(1,082)
|
|
Other assets
|
(1,565)
|
(3,028)
|
|
Other liabilities
|
(192)
|
408
|
|
Total adjustments
|
15,849
|
13,643
|
|
Net cash from operating activities
|
38,250
|
32,404
|
|
Cash flows from investing activities:
|
|||
Proceeds from sale of securities available for sale
|
73,318
|
0
|
|
Proceeds from maturities, calls and principal paydowns of
|
|||
securities available for sale
|
58,668
|
69,718
|
|
Purchases of securities available for sale
|
(147,042)
|
(87,929)
|
|
Purchase of life insurance
|
(162)
|
(21)
|
|
Net increase in total loans
|
(95,690)
|
(53,098)
|
|
Proceeds from sales of land, premises and equipment
|
33
|
0
|
|
Purchases of land, premises and equipment
|
(2,965)
|
(1,288)
|
|
Proceeds from sales of other real estate
|
1,254
|
1,403
|
|
Net cash from investing activities
|
(112,586)
|
(71,215)
|
2011
|
2010
|
||
Cash flows from financing activities:
|
|||
Net increase (decrease) in total deposits
|
155,334
|
419,162
|
|
Net increase (decrease) in short-term borrowings
|
(32,476)
|
(244,737)
|
|
Payments on long-term borrowings
|
(1)
|
(1)
|
|
Common dividends paid
|
(7,533)
|
(7,502)
|
|
Preferred dividends paid
|
(13)
|
(1,588)
|
|
Redemption of preferred stock
|
0
|
(56,044)
|
|
Proceeds from stock option exercise
|
395
|
580
|
|
Purchase of treasury stock
|
(233)
|
(195)
|
|
Net cash from financing activities
|
115,473
|
109,675
|
|
Net change in cash and cash equivalents
|
41,137
|
70,864
|
|
Cash and cash equivalents at beginning of the period
|
60,141
|
55,983
|
|
Cash and cash equivalents at end of the period
|
$ 101,278
|
$ 126,847
|
|
Cash paid during the period for:
|
|||
Interest
|
$ 22,095
|
$ 23,877
|
|
Income taxes
|
14,629
|
13,583
|
|
Supplemental non-cash disclosures:
|
|||
Loans transferred to other real estate
|
807
|
4,094
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||
2011
|
2010
|
2011
|
2010
|
|||||
Net income
|
$ 8,447
|
$ 6,521
|
$ 22,401
|
$ 18,761
|
||||
Dividends and accretion of discount on preferred stock
|
0
|
0
|
0
|
3,187
|
||||
Net income available to common shareholders
|
$ 8,447
|
$ 6,521
|
$ 22,401
|
$ 15,574
|
||||
Weighted average shares outstanding for basic earnings per common share
|
16,208,889
|
16,138,809
|
16,201,900
|
16,112,108
|
||||
Dilutive effect of stock options, awards and warrants
|
115,169
|
93,445
|
107,914
|
93,025
|
||||
Weighted average shares outstanding for diluted earnings per common share
|
16,324,058
|
16,232,254
|
16,309,814
|
16,205,133
|
||||
Basic earnings per common share
|
$ 0.52
|
$ 0.40
|
$ 1.38
|
$ 0.97
|
||||
Diluted earnings per common share
|
$ 0.52
|
$ 0.40
|
$ 1.37
|
$ 0.96
|
September 30,
|
December 31,
|
|||||
2011
|
2010
|
|||||
Commercial and industrial loans:
|
||||||
Working capital lines of credit loans
|
$ 382,202
|
17.5
|
%
|
$ 281,546
|
13.5
|
%
|
Non-working capital loans
|
380,125
|
17.4
|
384,138
|
18.4
|
||
Total commercial and industrial loans
|
762,327
|
34.9
|
665,684
|
31.8
|
||
Commercial real estate and multi-family residential loans:
|
||||||
Construction and land development loans
|
110,493
|
5.1
|
106,980
|
5.1
|
||
Owner occupied loans
|
335,514
|
15.4
|
329,760
|
15.8
|
||
Nonowner occupied loans
|
363,777
|
16.7
|
355,393
|
17.0
|
||
Multifamily loans
|
19,578
|
0.9
|
24,158
|
1.2
|
||
Total commercial real estate and multi-family residential loans
|
829,362
|
38.0
|
816,291
|
39.0
|
||
Agri-business and agricultural loans:
|
||||||
Loans secured by farmland
|
101,978
|
4.7
|
111,961
|
5.4
|
||
Loans for agricultural production
|
92,414
|
4.2
|
117,518
|
5.6
|
||
Total agri-business and agricultural loans
|
194,392
|
8.9
|
229,479
|
11.0
|
||
Other commercial loans
|
58,208
|
2.7
|
38,778
|
1.9
|
||
Total commercial loans
|
1,844,289
|
84.6
|
1,750,232
|
83.7
|
||
Consumer 1-4 family mortgage loans:
|
||||||
Closed end first mortgage loans
|
107,026
|
4.9
|
103,118
|
4.9
|
||
Open end and junior lien loans
|
177,940
|
8.2
|
182,325
|
8.7
|
||
Residential construction and land development loans
|
4,380
|
0.2
|
4,140
|
0.2
|
||
Total consumer 1-4 family mortgage loans
|
289,346
|
13.3
|
289,583
|
13.8
|
||
Other consumer loans
|
47,623
|
2.2
|
51,123
|
2.4
|
||
Total consumer loans
|
336,969
|
15.4
|
340,706
|
16.3
|
||
Subtotal
|
2,181,258
|
100.0
|
%
|
2,090,938
|
100.0
|
%
|
Less: Allowance for loan losses
|
(52,073)
|
(45,007)
|
||||
Net deferred loan fees
|
(250)
|
(979)
|
||||
Loans, net
|
$2,128,935
|
$2,044,952
|
Commercial
|
|||||||||||||||
Real Estate
|
Consumer
|
||||||||||||||
Commercial
|
and Multifamily
|
Agri-business
|
Other
|
1-4 Family
|
Other
|
||||||||||
and Industrial
|
Residential
|
and Agricultural
|
Commercial
|
Mortgage
|
Consumer
|
Unallocated
|
Total
|
||||||||
Three Months Ended September 30, 2011
|
|||||||||||||||
Balance July 1,
|
$ 22,999
|
$ 20,032
|
$ 948
|
$ 560
|
$ 2,658
|
$ 605
|
$ 3,458
|
$ 51,260
|
|||||||
Provision for loan losses
|
1,171
|
2,134
|
(194)
|
(536)
|
(272)
|
294
|
(197)
|
2,400
|
|||||||
Loans charged-off
|
(883)
|
(557)
|
(103)
|
0
|
(292)
|
(264)
|
0
|
(2,099)
|
|||||||
Recoveries
|
465
|
10
|
0
|
0
|
5
|
32
|
0
|
512
|
|||||||
Net loans charged-off
|
(418)
|
(547)
|
(103)
|
0
|
(287)
|
(232)
|
0
|
(1,587)
|
|||||||
Balance September 30,
|
$ 23,752
|
$ 21,619
|
$ 651
|
$ 24
|
$ 2,099
|
$ 667
|
$ 3,261
|
$ 52,073
|
|||||||
Nine Months Ended September 30, 2011
|
|||||||||||||||
Balance January 1,
|
$ 21,479
|
$ 15,893
|
$ 1,318
|
$ 270
|
$ 1,694
|
$ 682
|
$ 3,671
|
$ 45,007
|
|||||||
Provision for loan losses
|
3,048
|
7,362
|
(564)
|
(246)
|
1,390
|
320
|
(410)
|
10,900
|
|||||||
Loans charged-off
|
(1,470)
|
(1,973)
|
(103)
|
0
|
(1,009)
|
(493)
|
0
|
(5,048)
|
|||||||
Recoveries
|
695
|
337
|
0
|
0
|
24
|
158
|
0
|
1,214
|
|||||||
Net loans charged-off
|
(775)
|
(1,636)
|
(103)
|
0
|
(985)
|
(335)
|
0
|
(3,834)
|
|||||||
Balance September 30,
|
$ 23,752
|
$ 21,619
|
$ 651
|
$ 24
|
$ 2,099
|
$ 667
|
$ 3,261
|
$ 52,073
|
|||||||
Allowance for loan losses:
|
|||||||||||||||
Ending allowance balance attributable to loans:
|
|||||||||||||||
Individually evaluated for impairment
|
$ 9,809
|
$ 6,508
|
$ 236
|
$ 0
|
$ 158
|
$ 0
|
$ 0
|
$ 16,711
|
|||||||
Collectively evaluated for impairment
|
13,943
|
15,111
|
415
|
24
|
1,941
|
667
|
3,261
|
35,362
|
|||||||
Total ending allowance balance
|
$ 23,752
|
$ 21,619
|
$ 651
|
$ 24
|
$ 2,099
|
$ 667
|
$ 3,261
|
$ 52,073
|
|||||||
Loans:
|
|||||||||||||||
Loans individually evaluated for impairment
|
$ 25,060
|
$ 29,693
|
$ 870
|
$ 0
|
$ 2,041
|
$ 0
|
$ 0
|
$ 57,664
|
|||||||
Loans collectively evaluated for impairment
|
737,180
|
799,574
|
193,500
|
58,201
|
287,282
|
47,607
|
0
|
2,123,344
|
|||||||
Total ending loans balance
|
$ 762,240
|
$ 829,267
|
$ 194,370
|
$ 58,201
|
$ 289,323
|
$ 47,607
|
$ 0
|
$ 2,181,008
|
Commercial
|
|||||||||||||||
Real Estate
|
Consumer
|
||||||||||||||
Commercial
|
and Multifamily
|
Agri-business
|
Other
|
1-4 Family
|
Other
|
||||||||||
and Industrial
|
Residential
|
and Agricultural
|
Commercial
|
Mortgage
|
Consumer
|
Unallocated
|
Total
|
||||||||
Allowance for loan losses:
|
|||||||||||||||
Ending allowance balance attributable to loans:
|
|||||||||||||||
Individually evaluated for impairment
|
$ 6,911
|
$ 4,663
|
$ 301
|
$ 190
|
$ 76
|
$ 0
|
$ 0
|
$ 12,141
|
|||||||
Collectively evaluated for impairment
|
14,568
|
11,230
|
1,017
|
80
|
1,618
|
682
|
3,671
|
32,866
|
|||||||
Total ending allowance balance
|
$ 21,479
|
$ 15,893
|
$ 1,318
|
$ 270
|
$ 1,694
|
$ 682
|
$ 3,671
|
$ 45,007
|
|||||||
Loans:
|
|||||||||||||||
Loans individually evaluated for impairment
|
$ 20,988
|
$ 23,358
|
$ 1,259
|
$ 197
|
$ 2,204
|
$ 0
|
$ 0
|
$ 48,006
|
|||||||
Loans collectively evaluated for impairment
|
644,551
|
791,715
|
228,305
|
38,542
|
287,729
|
51,111
|
0
|
2,041,953
|
|||||||
Total ending loans balance
|
$ 665,539
|
$ 815,073
|
$ 229,564
|
$ 38,739
|
$ 289,933
|
$ 51,111
|
$ 0
|
$ 2,089,959
|
Three Months
|
Nine Months
|
|||
ended
|
ended
|
|||
September 30,
|
September 30,
|
|||
2010
|
2010
|
|||
Balance at beginning of period
|
$ 37,364
|
$ 32,073
|
||
Provision for loan losses
|
6,150
|
17,426
|
||
Loans charged-off
|
(1,720)
|
(8,097)
|
||
Recoveries
|
217
|
609
|
||
Net loans charged-off
|
(1,503)
|
(7,488)
|
||
Balance at end of period
|
$ 42,011
|
$ 42,011
|
||
Nine Months ended
|
||||
September 30,
|
||||
2011
|
2010
|
|||
Allowance for loan losses to total loans
|
2.39
|
%
|
2.05
|
%
|
Three Months Ended September 30, 2011
|
Nine Months Ended September 30, 2011
|
||||||||||||||||
Cash Basis
|
Cash Basis
|
||||||||||||||||
Unpaid
|
Allowance for
|
Average
|
Interest
|
Interest
|
Average
|
Interest
|
Interest
|
||||||||||
Principal
|
Recorded
|
Loan Losses
|
Recorded
|
Income
|
Income
|
Recorded
|
Income
|
Income
|
|||||||||
Balance
|
Investment
|
Allocated
|
Investment
|
Recognized
|
Recognized
|
Investment
|
Recognized
|
Recognized
|
|||||||||
With no related allowance recorded:
|
|||||||||||||||||
Commercial real estate and multi-family residential loans:
|
|||||||||||||||||
Nonowner occupied loans
|
$ 0
|
$ 0
|
$ 0
|
$ 0
|
$ 0
|
$ 0
|
$ 567
|
$ 0
|
$ 0
|
||||||||
With an allowance recorded:
|
|||||||||||||||||
Commercial and industrial loans:
|
|||||||||||||||||
Working capital lines of credit loans
|
6,098
|
6,097
|
3,366
|
5,466
|
4
|
3
|
5,464
|
10
|
9
|
||||||||
Non-working capital loans
|
18,958
|
18,963
|
6,443
|
18,842
|
152
|
165
|
16,857
|
442
|
456
|
||||||||
Commercial real estate and multi-family residential loans:
|
|||||||||||||||||
Construction and land development loans
|
986
|
987
|
225
|
1,935
|
0
|
0
|
1,554
|
0
|
0
|
||||||||
Owner occupied loans
|
2,904
|
2,903
|
1,074
|
2,634
|
7
|
6
|
2,942
|
19
|
18
|
||||||||
Nonowner occupied loans
|
25,801
|
25,803
|
5,209
|
26,001
|
100
|
88
|
22,270
|
135
|
123
|
||||||||
Multifamily loans
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||
Agri-business and agricultural loans:
|
|||||||||||||||||
Loans secured by farmland
|
642
|
641
|
218
|
716
|
0
|
0
|
603
|
0
|
0
|
||||||||
Loans for agricultural production
|
229
|
229
|
18
|
231
|
0
|
0
|
471
|
0
|
0
|
||||||||
Other commercial loans
|
0
|
0
|
0
|
126
|
0
|
0
|
171
|
0
|
0
|
||||||||
Consumer 1-4 family mortgage loans:
|
|||||||||||||||||
Closed end first mortgage loans
|
2,041
|
2,041
|
158
|
1,888
|
19
|
24
|
1,848
|
50
|
46
|
||||||||
Open end and junior lien loans
|
0
|
0
|
0
|
0
|
0
|
0
|
19
|
0
|
0
|
||||||||
Residential construction loans
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||
Other consumer loans
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||
Total
|
$ 57,659
|
$ 57,664
|
$ 16,711
|
$ 57,839
|
$ 282
|
$ 286
|
$ 52,766
|
$ 656
|
$ 652
|
Unpaid
|
Allowance for
|
||||
Principal
|
Recorded
|
Loan Losses
|
|||
Balance
|
Investment
|
Allocated
|
|||
With no related allowance recorded:
|
|||||
Commercial real estate and multi-family residential loans:
|
|||||
Nonowner occupied loans
|
$ 870
|
$ 869
|
$ 0
|
||
With an allowance recorded:
|
|||||
Commercial and industrial loans:
|
|||||
Working capital lines of credit loans
|
5,651
|
5,652
|
2,944
|
||
Non-working capital loans
|
15,335
|
15,336
|
3,967
|
||
Commercial real estate and multi-family residential loans:
|
|||||
Construction and land development loans
|
1,402
|
1,401
|
195
|
||
Owner occupied loans
|
2,908
|
2,909
|
948
|
||
Nonowner occupied loans
|
18,186
|
18,179
|
3,520
|
||
Multifamily loans
|
0
|
0
|
0
|
||
Agri-business and agricultural loans:
|
|||||
Loans secured by farmland
|
405
|
406
|
83
|
||
Loans for agricultural production
|
853
|
853
|
218
|
||
Other commercial loans
|
197
|
197
|
190
|
||
Consumer 1-4 family mortgage loans:
|
|||||
Closed end first mortgage loans
|
2,067
|
2,063
|
75
|
||
Open end and junior lien loans
|
141
|
141
|
1
|
||
Residential construction loans
|
0
|
0
|
0
|
||
Other consumer loans
|
0
|
0
|
0
|
||
Total
|
$ 48,015
|
$ 48,006
|
$ 12,141
|
Three Months
|
Nine Months
|
||
ended
|
ended
|
||
September 30,
|
September 30,
|
||
2010
|
2010
|
||
Average of impaired loans during the period
|
$ 39,498
|
$ 38,128
|
|
Interest income recognized during impairment
|
113
|
338
|
|
Cash-basis interest income recognized
|
116
|
349
|
September 30, 2011
|
December 31, 2010
|
||||||
Loans Past Due
|
Loans Past Due
|
||||||
Over 90 Days
|
Over 90 Days
|
||||||
Still
|
Still
|
||||||
Nonaccrual
|
Accruing
|
Nonaccrual
|
Accruing
|
||||
Commercial and industrial loans:
|
|||||||
Non-impaired watch list loans
|
$ 137
|
$ 0
|
$ 372
|
$ 0
|
|||
Working capital lines of credit loans
|
4,911
|
0
|
5,405
|
0
|
|||
Non-working capital loans
|
5,805
|
28
|
4,786
|
0
|
|||
Commercial real estate and multi-family residential loans:
|
|||||||
Non-impaired watch list loans
|
29
|
0
|
26
|
0
|
|||
Construction and land development loans
|
988
|
0
|
1,400
|
0
|
|||
Owner occupied loans
|
2,482
|
0
|
2,935
|
0
|
|||
Nonowner occupied loans
|
16,984
|
0
|
19,049
|
0
|
|||
Multifamily loans
|
0
|
0
|
0
|
0
|
|||
Agri-business and agricultural loans:
|
|||||||
Non-impaired watch list loans
|
0
|
0
|
0
|
0
|
|||
Loans secured by farmland
|
641
|
0
|
406
|
0
|
|||
Loans for agricultural production
|
230
|
0
|
878
|
0
|
|||
Other commercial loans
|
0
|
0
|
197
|
0
|
|||
Consumer 1-4 family mortgage loans:
|
|||||||
Closed end first mortgage loans
|
811
|
31
|
842
|
318
|
|||
Open end and junior lien loans
|
169
|
0
|
267
|
0
|
|||
Residential construction loans
|
0
|
0
|
0
|
0
|
|||
Other consumer loans
|
8
|
3
|
20
|
12
|
|||
Total
|
$ 33,195
|
$ 62
|
$ 36,583
|
$ 330
|
30-89
|
|||||||||
Days
|
Total
|
Loans Not
|
|||||||
Past Due
|
Nonaccrual
|
Past Due
|
Past Due
|
Total
|
|||||
Commercial and industrial loans:
|
|||||||||
Non-impaired watch list loans
|
$ 0
|
$ 137
|
$ 137
|
$ 41,811
|
$ 41,948
|
||||
Working capital lines of credit loans
|
161
|
4,911
|
5,072
|
362,976
|
368,048
|
||||
Non-working capital loans
|
121
|
5,833
|
5,954
|
346,290
|
352,244
|
||||
Commercial real estate and multi-family residential loans:
|
|||||||||
Non-impaired watch list loans
|
0
|
29
|
29
|
64,037
|
64,066
|
||||
Construction and land development loans
|
0
|
988
|
988
|
91,656
|
92,644
|
||||
Owner occupied loans
|
186
|
2,482
|
2,668
|
310,254
|
312,922
|
||||
Nonowner occupied loans
|
313
|
16,984
|
17,297
|
324,024
|
341,321
|
||||
Multifamily loans
|
0
|
0
|
0
|
18,314
|
18,314
|
||||
Agri-business and agricultural loans:
|
|||||||||
Non-impaired watch list loans
|
0
|
0
|
0
|
1,073
|
1,073
|
||||
Loans secured by farmland
|
128
|
641
|
769
|
100,124
|
100,893
|
||||
Loans for agricultural production
|
0
|
230
|
230
|
92,174
|
92,404
|
||||
Other commercial loans
|
0
|
0
|
0
|
58,201
|
58,201
|
||||
Consumer 1-4 family mortgage loans:
|
|||||||||
Closed end first mortgage loans
|
2,066
|
842
|
2,908
|
104,106
|
107,014
|
||||
Open end and junior lien loans
|
246
|
169
|
415
|
177,504
|
177,919
|
||||
Residential construction loans
|
0
|
0
|
0
|
4,390
|
4,390
|
||||
Other consumer loans
|
143
|
11
|
154
|
47,453
|
47,607
|
||||
Total
|
$ 3,364
|
$ 33,257
|
$ 36,621
|
$ 2,144,387
|
$ 2,181,008
|
30-89
|
Greater than
|
||||||||
Days
|
90 Days
|
Total
|
Loans Not
|
||||||
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Total
|
|||||
Commercial and industrial loans:
|
|||||||||
Non-impaired watch list loans
|
$ 0
|
$ 372
|
$ 372
|
$ 54,977
|
$ 55,349
|
||||
Working capital lines of credit loans
|
0
|
5,405
|
5,405
|
261,556
|
266,961
|
||||
Non-working capital loans
|
462
|
4,786
|
5,248
|
337,981
|
343,229
|
||||
Commercial real estate and multi-family residential loans:
|
|||||||||
Non-impaired watch list loans
|
0
|
26
|
26
|
60,473
|
60,499
|
||||
Construction and land development loans
|
0
|
1,400
|
1,400
|
88,089
|
89,489
|
||||
Owner occupied loans
|
27
|
2,935
|
2,962
|
304,702
|
307,664
|
||||
Nonowner occupied loans
|
0
|
19,049
|
19,049
|
314,245
|
333,294
|
||||
Multifamily loans
|
0
|
0
|
0
|
24,127
|
24,127
|
||||
Agri-business and agricultural loans:
|
|||||||||
Non-impaired watch list loans
|
0
|
0
|
0
|
4,131
|
4,131
|
||||
Loans secured by farmland
|
0
|
406
|
406
|
109,465
|
109,871
|
||||
Loans for agricultural production
|
0
|
878
|
878
|
114,684
|
115,562
|
||||
Other commercial loans
|
0
|
197
|
197
|
38,542
|
38,739
|
||||
Consumer 1-4 family mortgage loans:
|
|||||||||
Closed end first mortgage loans
|
2,333
|
1,160
|
3,493
|
99,405
|
102,898
|
||||
Open end and junior lien loans
|
237
|
267
|
504
|
182,395
|
182,899
|
||||
Residential construction loans
|
0
|
0
|
0
|
4,136
|
4,136
|
||||
Other consumer loans
|
145
|
32
|
177
|
50,934
|
51,111
|
||||
Total
|
$ 3,204
|
$ 36,913
|
$ 40,117
|
$ 2,049,842
|
$ 2,089,959
|
September 30,
|
December 31,
|
||
2011
|
2010
|
||
Accruing troubled debt restructured loans
|
$ 22,428
|
$ 8,547
|
|
Nonaccrual troubled debt restructured loans
|
9,300
|
6,091
|
|
Total troubled debt restructured loans
|
$ 31,728
|
$ 14,638
|
Modifications
|
||||||||||||||||
Nine Months Ended September 30, 2011
|
||||||||||||||||
All Modifications
|
Interest Rate Reductions
|
Modified Repayment Terms
|
||||||||||||||
Pre-Modification
|
Post-Modification
|
|||||||||||||||
Outstanding
|
Outstanding
|
Interest at
|
Interest at
|
Extension
|
||||||||||||
Number of
|
Recorded
|
Recorded
|
Number of
|
Pre-Modification
|
Post-Modification
|
Number of
|
Period or
|
|||||||||
Loans
|
Investment
|
Investment
|
Loans
|
Rate
|
Rate
|
Loans
|
Range
|
|||||||||
(in months)
|
||||||||||||||||
Troubled Debt Restructurings
|
||||||||||||||||
Commercial and industrial loans:
|
||||||||||||||||
Working capital lines of credit loans
|
3
|
$ 639
|
$ 639
|
0
|
$ 0
|
$ 0
|
3
|
11-60
|
||||||||
Non-working capital loans
|
4
|
5,551
|
5,625
|
0
|
0
|
0
|
4
|
12-36
|
||||||||
Commercial real estate and multi-family residential loans:
|
||||||||||||||||
Owner occupied loans
|
5
|
1,788
|
1,787
|
0
|
0
|
0
|
5
|
20-70
|
||||||||
Nonowner occupied loans
|
3
|
8,550
|
8,550
|
0
|
0
|
0
|
3
|
9-26
|
||||||||
Agri-business and agricultural loans:
|
||||||||||||||||
Loans secured by farmland
|
1
|
270
|
270
|
0
|
0
|
0
|
1
|
22
|
||||||||
Consumer 1-4 family loans:
|
||||||||||||||||
Closed end first mortgage loans
|
5
|
394
|
399
|
5
|
402
|
324
|
0
|
0
|
||||||||
Total
|
21
|
$ 17,192
|
$ 17,270
|
5
|
$ 402
|
$ 324
|
16
|
9-70
|
Modifications
|
||||||||||||||||
Three Months Ended September 30, 2011
|
||||||||||||||||
All Modifications
|
Interest Rate Reductions
|
Modified Repayment Terms
|
||||||||||||||
Pre-Modification
|
Post-Modification
|
|||||||||||||||
Outstanding
|
Outstanding
|
Interest at
|
Interest at
|
Extension
|
||||||||||||
Number of
|
Recorded
|
Recorded
|
Number of
|
Pre-Modification
|
Post-Modification
|
Number of
|
Period
|
|||||||||
Loans
|
Investment
|
Investment
|
Loans
|
Rate
|
Rate
|
Loans
|
Pre-Modification
|
|||||||||
Troubled Debt Restructurings
|
||||||||||||||||
Commercial and industrial loans:
|
||||||||||||||||
Non-working capital loans
|
2
|
$ 3,545
|
$ 3,546
|
0
|
$ 0
|
$ 0
|
2
|
12
|
||||||||
Commercial real estate and multi-family residential loans:
|
||||||||||||||||
Nonowner occupied loans
|
2
|
7,493
|
7,493
|
0
|
0
|
0
|
2
|
24-26
|
||||||||
Total
|
4
|
$ 11,038
|
$ 11,039
|
0
|
$ 0
|
$ 0
|
4
|
12-26
|
Modifications
|
||||||||
Three and Nine Months ended September 30, 2011
|
||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||
September 30, 2011
|
September 30, 2011
|
|||||||
Number of
|
Recorded
|
Number of
|
Recorded
|
|||||
Loans
|
Investment
|
Loans
|
Investment
|
|||||
Troubled Debt Restructurings that Subsequently Defaulted
|
||||||||
Consumer 1-4 family loans:
|
||||||||
Closed end first mortgage loans
|
3
|
$ 258
|
3
|
$ 258
|
||||
Total
|
3
|
$ 258
|
3
|
$ 258
|
Special
|
Not
|
||||||||
Pass
|
Mention
|
Substandard
|
Doubtful
|
Rated
|
|||||
Commercial and industrial loans:
|
|||||||||
Non-impaired watch list loans
|
$ 0
|
$ 14,707
|
$ 27,070
|
$ 171
|
$ 0
|
||||
Working capital lines of credit loans
|
361,935
|
0
|
5,947
|
150
|
16
|
||||
Non-working capital loans
|
331,759
|
8,758
|
10,111
|
94
|
1,522
|
||||
Commercial real estate and multi-family residential loans:
|
|||||||||
Non-impaired watch list loans
|
2
|
21,557
|
42,507
|
0
|
0
|
||||
Construction and land development loans
|
91,656
|
0
|
988
|
0
|
0
|
||||
Owner occupied loans
|
309,927
|
0
|
2,903
|
0
|
92
|
||||
Nonowner occupied loans
|
315,518
|
3,438
|
22,365
|
0
|
0
|
||||
Multifamily loans
|
18,314
|
0
|
0
|
0
|
0
|
||||
Agri-business and agricultural loans:
|
|||||||||
Non-impaired watch list loans
|
0
|
70
|
1,003
|
0
|
0
|
||||
Loans secured by farmland
|
100,231
|
0
|
641
|
0
|
21
|
||||
Loans for agricultural production
|
91,952
|
0
|
230
|
0
|
222
|
||||
Other commercial loans
|
58,116
|
85
|
0
|
0
|
0
|
||||
Consumer 1-4 family mortgage loans:
|
|||||||||
Closed end first mortgage loans
|
20,755
|
54
|
410
|
0
|
85,795
|
||||
Open end and junior lien loans
|
11,525
|
300
|
0
|
0
|
166,094
|
||||
Residential construction loans
|
0
|
0
|
0
|
0
|
4,390
|
||||
Other consumer loans
|
8,852
|
319
|
497
|
0
|
37,939
|
||||
Total
|
$ 1,720,542
|
$ 49,288
|
$ 114,672
|
$ 415
|
$ 296,091
|
Special
|
Not
|
||||||||
Pass
|
Mention
|
Substandard
|
Doubtful
|
Rated
|
|||||
Commercial and industrial loans:
|
|||||||||
Non-impaired watch list loans
|
$ 0
|
$ 22,282
|
$ 33,067
|
$ 0
|
$ 0
|
||||
Working capital lines of credit loans
|
261,210
|
0
|
5,751
|
0
|
0
|
||||
Non-working capital loans
|
325,976
|
0
|
15,327
|
0
|
1,926
|
||||
Commercial real estate and multi-family residential loans:
|
|||||||||
Non-impaired watch list loans
|
0
|
23,722
|
36,777
|
0
|
0
|
||||
Construction and land development loans
|
88,088
|
0
|
1,401
|
0
|
0
|
||||
Owner occupied loans
|
304,661
|
0
|
2,911
|
0
|
92
|
||||
Nonowner occupied loans
|
314,247
|
0
|
19,047
|
0
|
0
|
||||
Multifamily loans
|
24,127
|
0
|
0
|
0
|
0
|
||||
Agri-business and agricultural loans:
|
|||||||||
Non-impaired watch list loans
|
0
|
2,008
|
2,123
|
0
|
0
|
||||
Loans secured by farmland
|
109,444
|
0
|
405
|
0
|
22
|
||||
Loans for agricultural production
|
114,495
|
0
|
853
|
0
|
214
|
||||
Other commercial loans
|
38,400
|
0
|
339
|
0
|
0
|
||||
Consumer 1-4 family mortgage loans:
|
|||||||||
Closed end first mortgage loans
|
17,398
|
427
|
1,386
|
0
|
83,687
|
||||
Open end and junior lien loans
|
13,380
|
0
|
178
|
0
|
169,341
|
||||
Residential construction loans
|
0
|
0
|
0
|
0
|
4,136
|
||||
Other consumer loans
|
9,394
|
0
|
497
|
0
|
41,220
|
||||
Total
|
$ 1,620,820
|
$ 48,439
|
$ 120,062
|
$ 0
|
$ 300,638
|
Gross
|
Gross
|
||||||
Fair
|
Unrealized
|
Unrealized
|
Amortized
|
||||
Value
|
Gain
|
Losses
|
Cost
|
||||
September 30, 2011
|
|||||||
U.S. Treasury securities
|
$ 1,057
|
$ 54
|
$ 0
|
$ 1,003
|
|||
U.S. Government sponsored agencies
|
5,241
|
206
|
0
|
5,035
|
|||
Agency residential mortgage-backed securities
|
345,941
|
11,526
|
(366)
|
334,781
|
|||
Non-agency residential mortgage-backed securities
|
35,207
|
217
|
(2,356)
|
37,346
|
|||
State and municipal securities
|
76,626
|
4,414
|
(10)
|
72,222
|
|||
Total
|
$ 464,072
|
$ 16,417
|
$ (2,732)
|
$ 450,387
|
|||
December 31, 2010
|
|||||||
U.S. Treasury securities
|
$ 1,036
|
$ 32
|
$ 0
|
$ 1,004
|
|||
Agency residential mortgage-backed securities
|
308,851
|
10,422
|
(837)
|
299,266
|
|||
Non-agency residential mortgage-backed securities
|
62,773
|
331
|
(6,136)
|
68,578
|
|||
State and municipal securities
|
69,960
|
1,538
|
(637)
|
69,059
|
|||
Total
|
$ 442,620
|
$ 12,323
|
$ (7,610)
|
$ 437,907
|
Fair
|
Amortized
|
||
Value
|
Cost
|
||
Due in one year or less
|
$ 1,576
|
$ 1,567
|
|
Due after one year through five years
|
20,805
|
19,681
|
|
Due after five years through ten years
|
35,005
|
32,843
|
|
Due after ten years
|
25,538
|
24,169
|
|
82,924
|
78,260
|
||
Mortgage-backed securities
|
381,148
|
372,127
|
|
Total debt securities
|
$ 464,072
|
$ 450,387
|
Nine months ended September 30,
|
|||
2011
|
2010
|
||
Sales of securities available for sale
|
|||
Proceeds
|
$ 73,318
|
$ 0
|
|
Gross gains
|
4,005
|
0
|
|
Gross losses
|
(4,171)
|
0
|
|
Three months ended September 30,
|
|||
2011
|
2010
|
||
Sales of securities available for sale
|
|||
Proceeds
|
$ 0
|
$ 0
|
|
Gross gains
|
0
|
0
|
|
Gross losses
|
0
|
0
|
Less than 12 months
|
12 months or more
|
Total
|
|||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||
September 30, 2011
|
|||||||||||
U.S. Treasury securities
|
$ 0
|
$ 0
|
$ 0
|
$ 0
|
$ 0
|
$ 0
|
|||||
Agency residential mortgage-backed securities
|
60,725
|
347
|
4,874
|
19
|
65,599
|
366
|
|||||
Non-agency residential mortgage-backed securities
|
3,101
|
4
|
26,047
|
2,352
|
29,148
|
2,356
|
|||||
State and municipal securities
|
312
|
3
|
1,003
|
7
|
1,315
|
10
|
|||||
Total temporarily impaired
|
$ 64,138
|
$ 354
|
$ 31,924
|
$ 2,378
|
$ 96,062
|
$ 2,732
|
Less than 12 months
|
12 months or more
|
Total
|
|||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||
December 31, 2010
|
|||||||||||
U.S. Treasury securities
|
$ 0
|
$ 0
|
$ 0
|
$ 0
|
$ 0
|
$ 0
|
|||||
Agency residential mortgage-backed securities
|
55,193
|
821
|
4,170
|
16
|
59,363
|
837
|
|||||
Non-agency residential mortgage-backed securities
|
1,607
|
2
|
50,786
|
6,134
|
52,393
|
6,136
|
|||||
State and municipal securities
|
15,811
|
577
|
422
|
60
|
16,233
|
637
|
|||||
Total temporarily impaired
|
$ 72,611
|
$ 1,400
|
$ 55,378
|
$ 6,210
|
$ 127,989
|
$ 7,610
|
Less than
|
12 months
|
||||
12 months
|
or more
|
Total
|
|||
September 30, 2011
|
|||||
U.S. Treasury securities
|
0
|
0
|
0
|
||
Agency residential mortgage-backed securities
|
18
|
1
|
19
|
||
Non-agency residential mortgage-backed securities
|
0
|
10
|
10
|
||
State and municipal securities
|
2
|
2
|
4
|
||
Total temporarily impaired
|
20
|
13
|
33
|
||
December 31, 2010
|
|||||
U.S. Treasury securities
|
0
|
0
|
0
|
||
Agency residential mortgage-backed securities
|
13
|
1
|
14
|
||
Non-agency residential mortgage-backed securities
|
1
|
18
|
19
|
||
State and municipal securities
|
35
|
1
|
36
|
||
Total temporarily impaired
|
49
|
20
|
69
|
Accumulated
|
|
Three Months Ended September 30, 2011
|
Credit Losses
|
Balance July 1, 2011
|
$ 194
|
Sales of securities for which other-than-temporary impairment losses were previously recognized
|
0
|
Additional increases to the amount of credit loss for which other-than-temporary impairment was previously recognized
|
33
|
Balance September 30, 2011
|
$ 227
|
Accumulated
|
|
Three Months Ended September 30, 2010
|
Credit Losses
|
Balance July 1, 2010
|
$ 477
|
Additions related to other-than-temporary impairment losses not previously recognized
|
61
|
Additional increases to the amount of credit loss for which other-than-temporary impairment was previously recognized
|
24
|
Balance September 30, 2010
|
$ 562
|
Accumulated
|
|
Nine Months Ended September 30, 2011
|
Credit Losses
|
Balance January 1, 2011
|
$ 1,812
|
Sales of securities for which other-than-temporary impairment losses were previously recognized
|
(1,739)
|
Additional increases to the amount of credit loss for which other-than-temporary impairment was previously recognized
|
154
|
Balance September 30, 2011
|
$ 227
|
Accumulated
|
|
Nine Months Ended September 30, 2010
|
Credit Losses
|
Balance January 1, 2010
|
$ 225
|
Additions related to other-than-temporary impairment losses not previously recognized
|
113
|
Additional increases to the amount of credit loss for which other-than-temporary impairment was previously recognized
|
224
|
Balance September 30, 2010
|
$ 562
|
September 30, 2011
|
1-Month
|
3-Month
|
6-Month
|
||||||||
Other Than
|
September 30, 2011
|
Lowest
|
Constant
|
Constant
|
Constant
|
||||||
Temporary
|
Par
|
Amortized
|
Fair
|
Unrealized
|
Credit
|
Default
|
Default
|
Default
|
Credit
|
||
Description
|
CUSIP
|
Impairment
|
Value
|
Cost
|
Value
|
Gain/(Loss)
|
Rating
|
Rate
|
Rate
|
Rate
|
Support
|
CWHL 2006-18 2A7
|
12543WAJ7
|
$ 0
|
$ 3,110
|
$ 3,050
|
$ 2,758
|
$ (292)
|
CC
|
0.00
|
0.00
|
0.73
|
3.43
|
CWALT 2005-46CB A1
|
12667G6U2
|
0
|
3,664
|
3,493
|
3,045
|
(448)
|
CC
|
3.08
|
2.43
|
1.96
|
3.57
|
CWALT 2005-J8 1A3
|
12667GJ20
|
0
|
5,207
|
4,993
|
4,538
|
(455)
|
CC
|
0.00
|
1.74
|
3.63
|
6.86
|
CHASE 2005-S3 A4
|
16162WNE5
|
0
|
605
|
601
|
601
|
0
|
B1
|
7.73
|
4.76
|
3.39
|
3.99
|
CHASE 2006-S3 1A5
|
16162XAE7
|
0
|
1,568
|
1,565
|
1,480
|
(85)
|
CC
|
5.84
|
4.26
|
4.72
|
2.58
|
CMSI 2007-6 1A5
|
173103AE2
|
0
|
2,733
|
2,731
|
2,693
|
(38)
|
B1
|
4.56
|
2.48
|
1.78
|
6.76
|
GSR 2006-10F 1A1
|
36266WAC6
|
0
|
4,221
|
3,926
|
3,643
|
(283)
|
CC
|
6.57
|
2.24
|
1.10
|
2.92
|
MALT 2004-6 7A1
|
576434SK1
|
0
|
3,124
|
3,105
|
3,101
|
(4)
|
BB
|
0.00
|
0.00
|
0.00
|
11.25
|
MANA 2007-F1 1A1
|
59023YAA2
|
0
|
2,465
|
2,417
|
1,991
|
(426)
|
D
|
0.00
|
0.00
|
0.00
|
0.00
|
RFMSI 2006-S5 A14
|
74957EAP2
|
227
|
2,806
|
2,524
|
2,237
|
(287)
|
CC
|
4.05
|
6.03
|
4.83
|
0.00
|
$ 227
|
$ 29,503
|
$ 28,405
|
$ 26,087
|
$ (2,318)
|
Nine Months Ended September 30,
|
|||||||
Pension Benefits
|
SERP Benefits
|
||||||
2011
|
2010
|
2011
|
2010
|
||||
Interest cost
|
$ 105
|
$ 106
|
$ 46
|
$ 51
|
|||
Expected return on plan assets
|
(119)
|
(125)
|
(60)
|
(61)
|
|||
Recognized net actuarial (gain) loss
|
80
|
63
|
52
|
44
|
|||
Net pension expense (benefit)
|
$ 66
|
$ 44
|
$ 38
|
$ 34
|
Three Months Ended September 30,
|
|||||||
Pension Benefits
|
SERP Benefits
|
||||||
2011
|
2010
|
2011
|
2010
|
||||
Interest cost
|
$ 33
|
$ 38
|
$ 12
|
$ 17
|
|||
Expected return on plan assets
|
(41)
|
(47)
|
(20)
|
(19)
|
|||
Recognized net actuarial (gain) loss
|
40
|
13
|
22
|
16
|
|||
Net pension expense (benefit)
|
$ 32
|
$ 4
|
$ 14
|
$ 14
|
Level 1
|
|
Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
|
Level 2
|
|
Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
|
Level 3
|
Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
|
September 30, 2011
|
|||||||
Fair Value Measurements Using
|
Assets
|
||||||
Assets
|
Level 1
|
Level 2
|
Level 3
|
at Fair Value
|
|||
U.S. Treasury securities
|
$ 1,057
|
$ 0
|
$ 0
|
$ 1,057
|
|||
U.S. Government sponsored agencies
|
0
|
5,241
|
0
|
5,241
|
|||
Agency residential mortgage-backed securities
|
0
|
345,941
|
0
|
345,941
|
|||
Non-agency residential mortgage-backed securities
|
0
|
35,207
|
0
|
35,207
|
|||
State and municipal securities
|
0
|
76,626
|
0
|
76,626
|
|||
Total Securities
|
1,057
|
463,015
|
0
|
464,072
|
|||
Mortgage banking derivative
|
0
|
535
|
0
|
535
|
|||
Total assets
|
$ 1,057
|
$ 463,550
|
$ 0
|
$ 464,607
|
December 31, 2010
|
|||||||
Fair Value Measurements Using
|
Assets
|
||||||
Assets
|
Level 1
|
Level 2
|
Level 3
|
at Fair Value
|
|||
U.S. Treasury securities
|
$ 1,036
|
$ 0
|
$ 0
|
$ 1,036
|
|||
Agency residential mortgage-backed securities
|
0
|
308,851
|
0
|
308,851
|
|||
Non-agency residential mortgage-backed securities
|
0
|
62,773
|
0
|
62,773
|
|||
State and municipal securities
|
0
|
69,960
|
0
|
69,960
|
|||
Total Securities
|
1,036
|
441,584
|
0
|
442,620
|
|||
Mortgage banking derivative
|
0
|
357
|
0
|
357
|
|||
Total assets
|
$ 1,036
|
$ 441,941
|
$ 0
|
$ 442,977
|
September 30, 2011
|
|||||||
Fair Value Measurements Using
|
Assets
|
||||||
Assets
|
Level 1
|
Level 2
|
Level 3
|
at Fair Value
|
|||
Impaired loans:
|
|||||||
Commercial and industrial loans:
|
|||||||
Working capital lines of credit loans
|
$ 0
|
$ 0
|
$ 2,731
|
$ 2,731
|
|||
Non-working capital loans
|
0
|
0
|
11,595
|
11,595
|
|||
Commercial real estate and multi-family residential loans:
|
|||||||
Construction and land development loans
|
0
|
0
|
762
|
762
|
|||
Owner occupied loans
|
0
|
0
|
1,829
|
1,829
|
|||
Nonowner occupied loans
|
0
|
0
|
20,594
|
20,594
|
|||
Multifamily loans
|
0
|
0
|
0
|
0
|
|||
Agri-business and agricultural loans:
|
|||||||
Loans secured by farmland
|
0
|
0
|
423
|
423
|
|||
Loans for agricultural production
|
0
|
0
|
211
|
211
|
|||
Other commercial loans
|
0
|
0
|
0
|
0
|
|||
Consumer 1-4 family mortgage loans:
|
|||||||
Closed end first mortgage loans
|
0
|
0
|
1,672
|
1,672
|
|||
Open end and junior lien loans
|
0
|
0
|
0
|
0
|
|||
Residential construction loans
|
0
|
0
|
0
|
0
|
|||
Other consumer loans
|
0
|
0
|
0
|
0
|
|||
Total impaired loans
|
$ 0
|
$ 0
|
$ 39,817
|
$ 39,817
|
|||
Mortgage servicing rights
|
0
|
0
|
1,578
|
1,578
|
|||
Other real estate owned
|
0
|
0
|
58
|
58
|
|||
Total assets
|
$ 0
|
$ 0
|
$ 41,453
|
$ 41,453
|
December 31, 2010
|
|||||||
Fair Value Measurements Using
|
Assets
|
||||||
Assets
|
Level 1
|
Level 2
|
Level 3
|
at Fair Value
|
|||
Impaired loans:
|
|||||||
Commercial and industrial loans:
|
|||||||
Working capital lines of credit loans
|
$ 0
|
$ 0
|
$ 2,708
|
$ 2,708
|
|||
Non-working capital loans
|
0
|
0
|
4,990
|
4,990
|
|||
Commercial real estate and multi-family residential loans:
|
|||||||
Construction and land development loans
|
0
|
0
|
1,207
|
1,207
|
|||
Owner occupied loans
|
0
|
0
|
1,960
|
1,960
|
|||
Nonowner occupied loans
|
0
|
0
|
14,666
|
14,666
|
|||
Multifamily loans
|
0
|
0
|
0
|
0
|
|||
Agri-business and agricultural loans:
|
|||||||
Loans secured by farmland
|
0
|
0
|
322
|
322
|
|||
Loans for agricultural production
|
0
|
0
|
635
|
635
|
|||
Other commercial loans
|
0
|
0
|
7
|
7
|
|||
Consumer 1-4 family mortgage loans:
|
|||||||
Closed end first mortgage loans
|
0
|
0
|
815
|
815
|
|||
Open end and junior lien loans
|
0
|
0
|
140
|
140
|
|||
Residential construction loans
|
0
|
0
|
0
|
0
|
|||
Other consumer loans
|
0
|
0
|
0
|
0
|
|||
Total impaired loans
|
$ 0
|
$ 0
|
$ 27,450
|
$ 27,450
|
|||
Mortgage servicing rights
|
0
|
0
|
11
|
11
|
|||
Total assets
|
$ 0
|
$ 0
|
$ 27,461
|
$ 27,461
|
|||
September 30, 2011
|
December 31, 2010
|
||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
||||
Value
|
Fair Value
|
Value
|
Fair Value
|
||||
Financial Assets:
|
|||||||
Cash and cash equivalents
|
$ 101,278
|
$ 101,278
|
$ 60,141
|
$ 60,141
|
|||
Securities available for sale
|
464,072
|
464,072
|
442,620
|
442,620
|
|||
Real estate mortgages held for sale
|
5,444
|
5,512
|
5,606
|
5,661
|
|||
Loans, net
|
2,128,935
|
2,140,317
|
2,044,952
|
2,041,812
|
|||
Federal Home Loan Bank stock
|
7,313
|
N/A
|
8,511
|
N/A
|
|||
Federal Reserve Bank stock
|
3,420
|
N/A
|
3,420
|
N/A
|
|||
Accrued interest receivable
|
8,887
|
8,887
|
9,064
|
9,064
|
|||
Financial Liabilities:
|
|||||||
Certificates of deposit
|
(971,656)
|
(983,571)
|
(949,559)
|
(962,456)
|
|||
All other deposits
|
(1,384,703)
|
(1,384,703)
|
(1,251,466)
|
(1,251,466)
|
|||
Securities sold under agreements to repurchase
|
(139,016)
|
(139,016)
|
(142,015)
|
(142,015)
|
|||
Other short-term borrowings
|
(2,560)
|
(2,560)
|
(32,037)
|
(32,037)
|
|||
Long-term borrowings
|
(15,040)
|
(16,186)
|
(15,041)
|
(15,991)
|
|||
Subordinated debentures
|
(30,928)
|
(31,207)
|
(30,928)
|
(31,242)
|
|||
Standby letters of credit
|
(291)
|
(291)
|
(321)
|
(321)
|
|||
Accrued interest payable
|
(5,315)
|
(5,315)
|
(4,978)
|
(4,978)
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||
2011
|
2010
|
2011
|
2010
|
||||||
Net income
|
$ 8,447
|
$ 6,521
|
$ 22,401
|
$ 18,761
|
|||||
Other comprehensive income
|
|||||||||
Change in securities available for sale:
|
|||||||||
Unrealized holding gain on securities available for sale
|
|||||||||
arising during the period
|
4,857
|
5,092
|
8,651
|
15,731
|
|||||
Reclassification adjustment for (gains)/losses included in net income
|
1
|
(4)
|
167
|
(4)
|
|||||
Reclassification adjustment for other than temporary impairment
|
33
|
85
|
154
|
337
|
|||||
Net securities gain activity during the period
|
4,891
|
5,173
|
8,972
|
16,064
|
|||||
Tax effect
|
(1,889)
|
(2,027)
|
(3,462)
|
(6,431)
|
|||||
Net of tax amount
|
3,002
|
3,146
|
5,510
|
9,633
|
|||||
Defined benefit pension plans:
|
|||||||||
Net gain(loss) on defined benefit pension plans
|
0
|
0
|
(233)
|
(35)
|
|||||
Amortization of net actuarial loss
|
62
|
29
|
132
|
107
|
|||||
Net gain /(loss) activity during the period
|
62
|
29
|
(102)
|
72
|
|||||
Tax effect
|
(26)
|
(13)
|
41
|
(30)
|
|||||
Net of tax amount
|
36
|
16
|
(60)
|
42
|
|||||
Total other comprehensive income, net of tax
|
3,038
|
3,162
|
5,450
|
9,675
|
|||||
Comprehensive income
|
$ 11,485
|
$ 9,683
|
$ 27,851
|
$ 28,436
|
Current
|
|||||
Balance
|
Period
|
Balance
|
|||
at December 31, 2010
|
Change
|
at September 30, 2011
|
|||
Unrealized gain on securities available for sale
|
|||||
without other than temporary impairment
|
$ 4,285
|
$ 4,372
|
$ 8,657
|
||
Unrealized loss on securities available for sale
|
|||||
with other than temporary impairment
|
(1,425)
|
1,138
|
(287)
|
||
Total unrealized loss on securities available for sale
|
2,860
|
5,510
|
8,370
|
||
Unrealized loss on defined benefit pension plans
|
(1,510)
|
(60)
|
(1,570)
|
||
Total
|
$ 1,350
|
$ 5,450
|
$ 6,800
|
Current
|
|||||
Balance
|
Period
|
Balance
|
|||
at December 31, 2009
|
Change
|
at September 30, 2010
|
|||
Unrealized gain (loss) on securities available for sale
|
|||||
without other than temporary impairment
|
$ (2,814)
|
$ 9,586
|
$ 6,772
|
||
Unrealized loss on securities available for sale
|
|||||
with other than temporary impairment
|
(1,606)
|
47
|
(1,559)
|
||
Total unrealized loss on securities available for sale
|
(4,420)
|
9,633
|
5,213
|
||
Unrealized loss on defined benefit pension plans
|
(1,573)
|
42
|
(1,531)
|
||
Total
|
$ (5,993)
|
$ 9,675
|
$ 3,682
|
DISTRIBUTION OF ASSETS, LIABILITIES AND STOCKHOLDERS' EQUITY;
|
||||||||||||||||
INTEREST RATES AND INTEREST DIFFERENTIAL
|
||||||||||||||||
(in thousands of dollars)
|
||||||||||||||||
Nine Months Ended September 30,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
Average
|
Interest
|
Average
|
Interest
|
|||||||||||||
Balance
|
Income
|
Yield (1)
|
Balance
|
Income
|
Yield (1)
|
|||||||||||
ASSETS
|
||||||||||||||||
Earning assets:
|
||||||||||||||||
Loans:
|
||||||||||||||||
Taxable (2)(3)
|
$ 2,121,294
|
$ 78,555
|
4.95
|
%
|
$ 2,036,216
|
$ 77,676
|
5.10
|
%
|
||||||||
Tax exempt (1)
|
10,471
|
529
|
6.76
|
2,099
|
85
|
5.41
|
||||||||||
Investments: (1)
|
||||||||||||||||
Available for sale
|
441,771
|
13,745
|
4.16
|
426,005
|
15,390
|
4.83
|
||||||||||
Short-term investments
|
17,219
|
18
|
0.14
|
30,365
|
37
|
0.16
|
||||||||||
Interest bearing deposits
|
25,606
|
96
|
0.50
|
1,975
|
23
|
1.56
|
||||||||||
Total earning assets
|
2,616,361
|
92,943
|
4.75
|
%
|
2,496,660
|
93,211
|
4.99
|
%
|
||||||||
Nonearning assets:
|
||||||||||||||||
Cash and due from banks
|
65,115
|
0
|
47,458
|
0
|
||||||||||||
Premises and equipment
|
30,752
|
0
|
29,342
|
0
|
||||||||||||
Other nonearning assets
|
95,007
|
0
|
90,459
|
0
|
||||||||||||
Less allowance for loan losses
|
(49,469)
|
0
|
(36,684)
|
0
|
||||||||||||
Total assets
|
$ 2,757,766
|
$ 92,943
|
$ 2,627,235
|
$ 93,211
|
(1)
|
Tax exempt income was converted to a fully taxable equivalent basis at a 35 percent tax rate for 2011 and 2010. The tax equivalent rate for tax exempt loans and tax exempt securities included the TEFRA adjustment applicable to nondeductible interest expenses.
|
(2)
|
Loan fees, which are immaterial in relation to total taxable loan interest income for the nine months ended September 30, 2011 and 2010, are included as taxable loan interest income.
|
(3)
|
Nonaccrual loans are included in the average balance of taxable loans.
|
DISTRIBUTION OF ASSETS, LIABILITIES AND STOCKHOLDERS' EQUITY;
|
||||||||||||||||
INTEREST RATES AND INTEREST DIFFERENTIAL (Cont.)
|
||||||||||||||||
(in thousands of dollars)
|
||||||||||||||||
Nine Months Ended September 30,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
Average
|
Interest
|
Average
|
Interest
|
|||||||||||||
Balance
|
Expense
|
Yield
|
Balance
|
Expense
|
Yield
|
|||||||||||
LIABILITIES AND STOCKHOLDERS'
|
||||||||||||||||
EQUITY
|
||||||||||||||||
Interest bearing liabilities:
|
||||||||||||||||
Savings deposits
|
$ 166,740
|
$ 686
|
0.55
|
%
|
$ 111,605
|
$ 510
|
0.61
|
%
|
||||||||
Interest bearing checking accounts
|
844,488
|
7,994
|
1.27
|
676,549
|
6,019
|
1.19
|
||||||||||
Time deposits:
|
||||||||||||||||
In denominations under $100,000
|
348,557
|
5,125
|
1.97
|
321,180
|
5,596
|
2.33
|
||||||||||
In denominations over $100,000
|
630,820
|
7,063
|
1.50
|
720,964
|
8,517
|
1.58
|
||||||||||
Miscellaneous short-term borrowings
|
147,263
|
477
|
0.43
|
185,001
|
587
|
0.42
|
||||||||||
Long-term borrowings
|
||||||||||||||||
and subordinated debentures
|
45,968
|
1,084
|
3.15
|
70,969
|
1,633
|
3.08
|
||||||||||
Total interest bearing liabilities
|
2,183,836
|
22,429
|
1.37
|
%
|
2,086,268
|
22,862
|
1.47
|
%
|
||||||||
Noninterest bearing liabilities
|
||||||||||||||||
and stockholders' equity:
|
||||||||||||||||
Demand deposits
|
302,170
|
0
|
257,126
|
0
|
||||||||||||
Other liabilities
|
14,931
|
0
|
16,037
|
0
|
||||||||||||
Stockholders' equity
|
256,829
|
0
|
267,804
|
0
|
||||||||||||
Total liabilities and stockholders'
|
||||||||||||||||
equity
|
$ 2,757,766
|
$ 22,429
|
$ 2,627,235
|
$ 22,862
|
||||||||||||
Net interest differential - yield on
|
||||||||||||||||
average daily earning assets
|
$ 70,514
|
3.60
|
%
|
$ 70,349
|
3.77
|
%
|
DISTRIBUTION OF ASSETS, LIABILITIES AND STOCKHOLDERS' EQUITY;
|
||||||||||||||||
INTEREST RATES AND INTEREST DIFFERENTIAL
|
||||||||||||||||
(in thousands of dollars)
|
||||||||||||||||
Three Months Ended September 30,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
Average
|
Interest
|
Average
|
Interest
|
|||||||||||||
Balance
|
Income
|
Yield (1)
|
Balance
|
Income
|
Yield (1)
|
|||||||||||
ASSETS
|
||||||||||||||||
Earning assets:
|
||||||||||||||||
Loans:
|
||||||||||||||||
Taxable (2)(3)
|
$ 2,150,201
|
$ 26,390
|
4.87
|
%
|
$ 2,057,899
|
$ 26,381
|
5.09
|
%
|
||||||||
Tax exempt (1)
|
9,806
|
170
|
6.88
|
2,353
|
31
|
5.29
|
||||||||||
Investments: (1)
|
||||||||||||||||
Available for sale
|
457,360
|
4,254
|
3.69
|
436,211
|
5,036
|
4.58
|
||||||||||
Short-term investments
|
12,082
|
3
|
0.10
|
30,849
|
12
|
0.15
|
||||||||||
Interest bearing deposits
|
10,849
|
15
|
0.55
|
1,938
|
7
|
1.43
|
||||||||||
Total earning assets
|
2,640,298
|
30,832
|
4.63
|
%
|
2,529,250
|
31,467
|
4.94
|
%
|
||||||||
Nonearning assets:
|
||||||||||||||||
Cash and due from banks
|
77,111
|
0
|
49,953
|
0
|
||||||||||||
Premises and equipment
|
31,203
|
0
|
29,333
|
0
|
||||||||||||
Other nonearning assets
|
93,763
|
0
|
90,420
|
0
|
||||||||||||
Less allowance for loan losses
|
(52,184)
|
0
|
(38,961)
|
0
|
||||||||||||
Total assets
|
$ 2,790,191
|
$ 30,832
|
$ 2,659,995
|
$ 31,467
|
(1)
|
Tax exempt income was converted to a fully taxable equivalent basis at a 35 percent tax rate for 2011 and 2010. The tax equivalent rate for tax exempt loans and tax exempt securities included the TEFRA adjustment applicable to nondeductible interest expenses.
|
(2)
|
Loan fees, which are immaterial in relation to total taxable loan interest income for the three months ended September 30, 2011 and 2010, are included as taxable loan interest income.
|
(3)
|
Nonaccrual loans are included in the average balance of taxable loans.
|
DISTRIBUTION OF ASSETS, LIABILITIES AND STOCKHOLDERS' EQUITY;
|
||||||||||||||||
INTEREST RATES AND INTEREST DIFFERENTIAL (Cont.)
|
||||||||||||||||
(in thousands of dollars)
|
||||||||||||||||
Three Months Ended September 30,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
Average
|
Interest
|
Average
|
Interest
|
|||||||||||||
Balance
|
Expense
|
Yield
|
Balance
|
Expense
|
Yield
|
|||||||||||
LIABILITIES AND STOCKHOLDERS'
|
||||||||||||||||
EQUITY
|
||||||||||||||||
Interest bearing liabilities:
|
||||||||||||||||
Savings deposits
|
$ 169,281
|
$ 239
|
0.56
|
%
|
$ 127,265
|
$ 224
|
0.70
|
%
|
||||||||
Interest bearing checking accounts
|
850,343
|
2,769
|
1.29
|
706,014
|
2,265
|
1.27
|
||||||||||
Time deposits:
|
||||||||||||||||
In denominations under $100,000
|
360,060
|
1,773
|
1.95
|
321,494
|
1,720
|
2.12
|
||||||||||
In denominations over $100,000
|
618,718
|
2,309
|
1.48
|
772,085
|
2,986
|
1.53
|
||||||||||
Miscellaneous short-term borrowings
|
147,771
|
159
|
0.43
|
126,742
|
149
|
0.47
|
||||||||||
Long-term borrowings
|
||||||||||||||||
and subordinated debentures
|
45,967
|
361
|
3.12
|
70,969
|
563
|
3.15
|
||||||||||
Total interest bearing liabilities
|
2,192,140
|
7,610
|
1.38
|
%
|
2,124,569
|
7,907
|
1.48
|
%
|
||||||||
Noninterest bearing liabilities
|
||||||||||||||||
and stockholders' equity:
|
||||||||||||||||
Demand deposits
|
317,921
|
0
|
277,261
|
0
|
||||||||||||
Other liabilities
|
15,670
|
0
|
15,468
|
0
|
||||||||||||
Stockholders' equity
|
264,460
|
0
|
242,697
|
0
|
||||||||||||
Total liabilities and stockholders'
|
||||||||||||||||
equity
|
$ 2,790,191
|
$ 7,610
|
$ 2,659,995
|
$ 7,907
|
||||||||||||
Net interest differential - yield on
|
||||||||||||||||
average daily earning assets
|
$ 23,222
|
3.48
|
%
|
$ 23,560
|
3.70
|
%
|
Nine Months Ended
|
||||||
September 30,
|
||||||
Percent
|
||||||
2011
|
2010
|
Change
|
||||
Wealth advisory fees
|
$ 2,613
|
$ 2,409
|
8.5
|
%
|
||
Investment brokerage fees
|
2,093
|
1,692
|
23.7
|
|||
Service charges on deposit accounts
|
5,938
|
6,265
|
(5.2)
|
|||
Loan, insurance and service fees
|
3,595
|
3,094
|
16.2
|
|||
Merchant card fee income
|
775
|
846
|
(8.4)
|
|||
Other income
|
1,380
|
1,506
|
(8.4)
|
|||
Mortgage banking income
|
594
|
939
|
(36.7)
|
|||
Net securities gains (losses)
|
(167)
|
4
|
(4,275.0)
|
|||
Impairment on available-for-sale securities (includes total losses of $154 and $357,
|
||||||
both net of $0 recognized in other comprehensive income, pre-tax)
|
(154)
|
(337)
|
(54.3)
|
|||
Total noninterest income
|
$ 16,667
|
$ 16,418
|
1.5
|
%
|
Three Months Ended
|
||||||
September 30,
|
||||||
Percent
|
||||||
2011
|
2010
|
Change
|
||||
Wealth advisory fees
|
$ 866
|
$ 784
|
10.5
|
%
|
||
Investment brokerage fees
|
741
|
676
|
9.6
|
|||
Service charges on deposit accounts
|
2,036
|
2,205
|
(7.7)
|
|||
Loan, insurance and service fees
|
1,259
|
1,100
|
14.5
|
|||
Merchant card fee income
|
253
|
263
|
(3.8)
|
|||
Other income
|
362
|
491
|
(26.3)
|
|||
Mortgage banking income
|
440
|
774
|
(43.2)
|
|||
Net securities gains (losses)
|
(1)
|
4
|
(125.0)
|
|||
Impairment on available-for-sale securities (includes total losses of $33 and $85,
|
||||||
both net of $0 recognized in other comprehensive income, pre-tax)
|
(33)
|
(85)
|
(61.2)
|
|||
Total noninterest income
|
$ 5,923
|
$ 6,212
|
(4.7)
|
%
|
Nine Months Ended
|
||||||
September 30,
|
||||||
Percent
|
||||||
2011
|
2010
|
Change
|
||||
Salaries and employee benefits
|
$ 24,802
|
$ 22,729
|
9.1
|
%
|
||
Occupancy expense
|
2,373
|
2,199
|
7.9
|
|||
Equipment costs
|
1,600
|
1,568
|
2.0
|
|||
Data processing fees and supplies
|
2,820
|
2,930
|
(3.8)
|
|||
Credit card interchange
|
2
|
144
|
(98.6)
|
|||
Other expense
|
10,023
|
10,532
|
(4.8)
|
|||
Total noninterest expense
|
$ 41,620
|
$ 40,102
|
3.8
|
%
|
Three Months Ended
|
||||||
September 30,
|
||||||
Percent
|
||||||
2011
|
2010
|
Change
|
||||
Salaries and employee benefits
|
$ 8,611
|
$ 7,659
|
12.4
|
%
|
||
Occupancy expense
|
746
|
711
|
4.9
|
|||
Equipment costs
|
536
|
517
|
3.7
|
|||
Data processing fees and supplies
|
729
|
1,004
|
(27.4)
|
|||
Credit card interchange
|
0
|
31
|
N/A
|
|||
Other expense
|
2,857
|
3,707
|
(22.9)
|
|||
Total noninterest expense
|
$ 13,479
|
$ 13,629
|
(1.1)
|
%
|
September 30,
|
December 31,
|
||
2011
|
2010
|
||
Accruing troubled debt restructured loans
|
$ 22,428
|
$ 8,547
|
|
Nonaccrual troubled debt restructured loans
|
9,300
|
6,091
|
|
Total troubled debt restructured loans
|
$ 31,728
|
$ 14,638
|
September 30,
|
December 31,
|
|
2011
|
2010
|
|
(in thousands)
|
||
NONPERFORMING ASSETS:
|
||
Nonaccrual loans including nonaccrual troubled debt restructured loans
|
$ 33,190
|
$ 36,591
|
Loans past due over 90 days and still accruing
|
61
|
330
|
Total nonperforming loans
|
$ 33,251
|
$ 36,921
|
Other real estate owned
|
2,889
|
3,695
|
Repossessions
|
25
|
42
|
Total nonperforming assets
|
$ 36,165
|
$ 40,659
|
Impaired loans including troubled debt restructurings
|
$ 57,659
|
$ 48,015
|
Nonperforming loans to total loans
|
1.52%
|
1.77%
|
Nonperforming assets to total assets
|
1.28%
|
1.52%
|
Nonperforming troubled debt restructured loans (included in nonaccrual loans)
|
$ 9,300
|
$ 6,091
|
Performing troubled debt restructured loans
|
22,428
|
8,547
|
Total troubled debt restructured loans
|
$ 31,728
|
$ 14,638
|
·
|
Legislative or regulatory changes or actions, including the “Dodd-Frank Wall Street Reform and Consumer Protection Act” and the regulations required to be promulgated there under, which may adversely affect the business of the Company and its subsidiaries.
|
·
|
The costs, effects and outcomes of existing or future litigation.
|
·
|
Changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission and the Public Company Accounting Oversight Board.
|
·
|
The ability of the Company to manage risks associated with the foregoing as well as anticipated.
|
Maximum Number (or
|
|||||||
Total Number of
|
Appropriate Dollar
|
||||||
Shares Purchased as
|
Value) of Shares that
|
||||||
Part of Publicly
|
May Yet Be Purchased
|
||||||
Total Number of
|
Average Price
|
Announced Plans or
|
Under the Plans or
|
||||
Period
|
Shares Purchased
|
Paid per Share
|
Programs
|
Programs
|
|||
July 1-31
|
4,656
|
$ 23.46
|
0
|
$ 0
|
|||
August 1-31
|
473
|
23.03
|
0
|
0
|
|||
September 1-30
|
0
|
0
|
0
|
0
|
|||
Total
|
5,129
|
$ 23.42
|
0
|
$ 0
|
(a)
|
The shares purchased during the periods were credited to the deferred share accounts of
|
non-employee directors under the Company’s directors’ deferred compensation plan. These
shares were purchased in the ordinary course of business and consistent with past practice.
|
31.1
|
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a)
|
31.2
|
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a)
|
32.1
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
Date: November 9, 2011
|
/s/ Michael L. Kubacki
|
Michael L. Kubacki – Chief Executive Officer
|
|
Date: November 9, 2011
|
/s/ David M. Findlay
|
David M. Findlay –President
|
|
and Chief Financial Officer
|
Date: November 9, 2011
|
/s/ Teresa A. Bartman
|
Teresa A. Bartman – Senior Vice President-
|
|
Finance and Controller
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting, and;
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: November 9, 2011
|
/s/Michael L. Kubacki
|
Michael L. Kubacki
|
|
Chief Executive Officer
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting, and;
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: November 9, 2011
|
/s/ David M. Findlay
|
David M. Findlay
|
|
Chief Financial Officer
|
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EMPLOYEE BENEFIT PLANS | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | NOTE 6. EMPLOYEE BENEFIT PLANS Components of net periodic benefit cost
The Company previously disclosed in its financial statements for the year ended December 31, 2010 that it did not expect to contribute to its pension in 2011 and did expect to contribute $90,000 to its SERP plan in 2011. No contributions were made to the pension plan and $90,000 was contributed to the SERP plan as of September 30, 2011. |
RECLASSIFICATIONS | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Notes to Financial Statements [Abstract] | |
RECLASSIFICATIONS | NOTE 11. RECLASSIFICATIONS Certain amounts appearing in the financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassification had no effect on net income or stockholders’ equity as previously reported. |
EARNINGS PER SHARE | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes to Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | NOTE 2. EARNINGS PER SHARE Basic earnings per common share is net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options, stock awards and warrants.
8 Stock options for 70,000 and 95,000 shares for the three-month periods ended September 30, 2011 and September 30, 2010, respectively, were not considered in computing diluted earnings per common share because they were antidilutive. Stock options for 70,000 and 109,000 shares for the nine-month periods ended September 30, 2011 and September 30, 2010, respectively, were not considered in computing diluted earnings per common share because they were antidilutive. In addition, warrants for 198,269 shares for the three-month and nine-month periods ended September 30, 2010, were not considered in computing diluted earnings per share because they were antidilutive. |
FAIR VALUE DISCLOSURES | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Notes to Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE DISCLOSURES | NOTE 8. FAIR VALUE DISCLOSURES Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:
The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Securities: Securities available for sale are valued primarily by a third party pricing service. The fair values of securities available for sale are determined on a recurring basis by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or pricing models utilizing significant observable inputs such as matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). These models utilize the market approach with standard inputs that include, but are not limited to benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. There were no transfers from or into Level 1, Level 2 or Level 3 during the first nine months of 2011. Mortgage banking derivatives: The fair value of derivatives are based on observable market data as of the measurement date (Level 2). Impaired loans: Impaired loans with specific allocations of the allowance for loan losses are generally assessed against higher than normal discounted advance ratios of collateral as approved at the time of funding, with consideration given for any supplemental credit support from guarantors. Consideration is given for the type and nature of collateral, as well as the anticipated liquidation value to develop a discount for the advance ratios on each credit. Commercial real estate is generally discounted from its appraised value by 20-50% after various considerations including age of the appraisal, current net operating income realized, general market conditions where the property is located, type of property and potential buyer base. The appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant. Raw and finished inventory is discounted from its cost or book value by 35-65%, depending on the marketability of the goods. Finished goods are generally discounted by 30-60%, depending on the ease of marketability, cost of transportation or scope of use of the finished good. Work in process inventory is typically discounted by 50-100%, depending on the length of manufacturing time, types of components used in the completion process, and the breadth of the user base. Equipment is valued at a percentage of depreciated book value or recent appraised value, if available, and is typically discounted at 30-70% after various considerations including age and condition of the equipment, marketability, breadth of use, and whether the equipment includes unique components or add-ons. Marketable securities are discounted by 10-30%, depending on the type of investment, age of valuation report and general market conditions. This methodology is based on a market approach and typically results in a Level 3 classification of the inputs for determining fair value. 33 Mortgage servicing rights: As of September 30, 2011 the fair value of the Company’s Level 3 servicing assets for residential mortgage loans was $1.9 million, some of which are not currently impaired and therefore carried at amortized cost. These residential mortgage loans have a weighted average interest rate of 5.08%, a weighted average maturity of 20 years and are secured by homes generally within the Company’s market area of Northern Indiana. A valuation model is used to estimate fair value, which is based on an income approach. The inputs used include estimates of prepayment speeds, discount rate, cost to service, escrow account earnings, contractual servicing fee income, ancillary income, late fees, and float income. The most significant assumption used to value mortgage servicing rights is prepayment rate. Prepayment rates are estimated based on published industry consensus prepayment rates. At September 30, 2011 the constant prepayment speed (PSA) used was 420 and the discount rate used was 9.2%. At September 30, 2010 the constant prepayment speed (PSA) used was 433 and the discount rate used was 9.5%. Other real estate owned: Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Real estate mortgage loans held for sale: Real estate mortgage loans held for sale are carried at the lower of cost or fair value, as determined by outstanding commitments, from third party investors. The table below presents the balances of assets measured at fair value on a recurring basis:
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The table below presents the balances of assets measured at fair value on a nonrecurring basis:
35
Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a gross carrying amount of $56.4 million, with a valuation allowance of $16.6 million, resulting in additional provision for loan losses of $5.3 million and $1.8 million, respectively, for the nine months and three months ended September 30, 2011. In addition, $162,000 and $169,000, respectively, in impairment of mortgage servicing rights, measured using Level 3 inputs within the fair value hierarchy, was recognized during the nine months and three months ended September 30, 2011. The Company also recognized $76,000 and $56,000, respectively, in reduction in the value of other real estate owned during the nine months and three months ended September 30, 2011. 36 The following table contains the estimated fair values and the related carrying values of the Company’s financial instruments. Items which are not financial instruments are not included.
For purposes of the above disclosures of estimated fair value, the following assumptions were used as of September 30, 2011 and December 31, 2010. The estimated fair value for cash and cash equivalents, demand and savings deposits, variable rate loans, variable rate short term borrowings and accrued interest is considered to approximate cost. The fair value of Federal Home Loan Bank and Federal Reserve Bank stock is not determinable as there are restrictions on its transferability. The estimated fair value for fixed rate loans, certificates of deposit and fixed rate borrowings is based on discounted cash flows using current market rates applied to the estimated life. Real estate mortgages held for sale are based upon the actual contracted price for those loans sold but not yet delivered, or the current Federal Home Loan Mortgage Corporation price for normal delivery of mortgages with similar coupons and maturities at year-end. The fair value of subordinated debentures is based on the rates currently available to the Company with similar term and remaining maturity and credit spread. The fair value of off-balance sheet items is based on the current fees or costs that would be charged to enter into or terminate such arrangements. The estimated fair value of other financial instruments approximate cost and are not considered significant to this presentation. |
Entity Information (USD $) | 9 Months Ended | ||
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Sep. 30, 2011 | Oct. 31, 2011 | Jun. 30, 2010 | |
Entity Registrant Name | Lakeland Financial Corp | ||
Entity Central Index Key | 0000721994 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 303,117,060 | ||
Entity Common Stock, Shares Outstanding | 16,214,019 | ||
Document Fiscal Year Focus | 2011 | ||
Document Fiscal Period Focus | Q3 |
COMPREHENSIVE INCOME | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Notes to Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE INCOME | NOTE 9. COMPREHENSIVE INCOME Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available-for-sale and changes in the funded status of pension plans which are also recognized as separate components of equity. Following is a summary of other comprehensive income for the three months and nine months ended September 30, 2011 and 2010:
The following table summarizes the changes within each classification of accumulated other comprehensive income for the nine months ended September 30, 2011 and 2010:
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NEW ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
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Sep. 30, 2011 | |
Notes to Financial Statements [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NOTE 7. NEW ACCOUNTING PRONOUNCEMENTS In January 2011, the FASB issued ASU No. 2011-01, “Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in Update No. 2010-20.” The provisions of ASU No. 2010-20 required the disclosure of more granular information on the nature and extent of troubled debt restructurings and their effect on the allowance for loan and lease losses effective for the Company’s reporting period ended March 31, 2011. The amendments in ASU No. 2011-01 defer the effective date related to these disclosures, enabling creditors to provide such disclosures after the FASB completes their project clarifying the guidance for determining what constitutes a troubled debt restructuring. As the provisions of this ASU only deferred the effective date of disclosure requirements related to troubled debt restructurings, the adoption of this ASU did not have a material impact on the Company’s statements of income and condition. 31 In April 2011, the FASB issued ASU No. 2011-02, “A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring.” The provisions of ASU No. 2011-02 provide additional guidance related to determining whether a creditor has granted a concession, include factors and examples for creditors to consider in evaluating whether a restructuring results in a delay in payment that is insignificant, prohibit creditors from using the borrower’s effective rate test to evaluate whether a concession has been granted to the borrower, and add factors for creditors to use in determining whether a borrower is experiencing financial difficulties. A provision in ASU No. 2011-02 also ends the FASB’s deferral of the additional disclosures about troubled debt restructurings as required by ASU No. 2010-20. The provisions of ASU No. 2011-02 were effective for the Company’s reporting period ending September 30, 2011. The adoption of ASU No. 2011-02 did not have a material impact on the Company’s statements of income and condition. In May 2011, the FASB issued ASU No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” ASU No. 2011-04 results in a consistent definition of fair value and common requirements for measurement of and disclosure about fair value between U.S. GAAP and International Financial Reporting Standards (“IFRS”). The changes to U.S. GAAP as a result of ASU No. 2011-04 are as follows: (1) The concepts of highest and best use and valuation premise are only relevant when measuring the fair value of nonfinancial assets (that is, it does not apply to financial assets or any liabilities); (2) U.S. GAAP currently prohibits application of a blockage factor in valuing financial instruments with quoted prices in active markets. ASU No. 2011-04 extends that prohibition to all fair value measurements; (3) An exception is provided to the basic fair value measurement principles for an entity that holds a group of financial assets and financial liabilities with offsetting positions in market risks or counterparty credit risk that are managed on the basis of the entity’s net exposure to either of those risks. This exception allows the entity, if certain criteria are met, to measure the fair value of the net asset or liability position in a manner consistent with how market participants would price the net risk position; (4) Aligns the fair value measurement of instruments classified within an entity’s shareholders’ equity with the guidance for liabilities; and (5) Disclosure requirements have been enhanced for recurring Level 3 fair value measurements to disclose quantitative information about unobservable inputs and assumptions used, to describe the valuation processes used by the entity, and to describe the sensitivity of fair value measurements to changes in unobservable inputs and interrelationships between those inputs. In addition, entities must report the level in the fair value hierarchy of items that are not measured at fair value in the statement of condition but whose fair value must be disclosed. The provisions of ASU No. 2011-04 are effective for the Company’s interim and annual periods beginning on or after December 15, 2011. The adoption of ASU No. 2011-04 is not expected to have a material impact on the Company’s statements of income and condition. In September 2011, the FASB issued ASU No. 2011-08, “Testing Goodwill for Impairment.” The provisions of ASU No. 2011-08 permits an entity an option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity believes, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further impairment testing is required. ASU No. 2011-08 includes examples of events and circumstances that may indicate that a reporting unit’s fair value is less than its carrying amount. The provisions of ASU No. 2011-08 are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of ASU No. 2011-08 is not expected to have a material impact on the Company’s statements of income and condition. |
LOANS | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Notes to Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS | NOTE 3. LOANS
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ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Notes to Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY | NOTE 4. ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2011:
The recorded investment in loans does not include accrued interest. 10 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2010:
The recorded investment in loans does not include accrued interest. 11 The following is an analysis of the allowance for loan losses for the three months and nine months ended September 30, 2010:
12 The following table presents loans individually evaluated for impairment as of and for the three-month and nine-month periods ended September 30, 2011:
The recorded investment in loans does not include accrued interest. 13 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2010:
The recorded investment in loans does not include accrued interest. The following table presents information on impaired loans for the three and nine months ended September 30, 2010.
14 The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of September 30, 2011 and December 31, 2010:
The recorded investment in loans does not include accrued interest. 15 The following table presents the aging of the recorded investment in past due loans as of September 30, 2011 by class of loans:
The recorded investment in loans does not include accrued interest. 16 The following table presents the aging of the recorded investment in past due loans as of December 31, 2010 by class of loans:
The recorded investment in loans does not include accrued interest. 17 Troubled Debt Restructurings: Troubled debt restructured loans are included in the totals for impaired loans. The Company has allocated $9.5 million and $4.1 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of September 30, 2011 and December 31, 2010. The Company is not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring.
During the three and nine month periods ending September 30, 2011, the terms of certain loans were modified as troubled debt restructurings. The modified terms of these loans included one or a combination of the following: a reduction of the stated interest rate of the loan; a modification of repayment terms that delays principal repayment for some period; or inadequate compensation for the terms of the restructure. Renegotiated interest rates include loans with a reduction in rate for a short-term (part of the remaining life of the loan) or long-term (life of loan). Included are modifications to borrowers at a rate that is readily available in the market, but to borrowers who would not have qualified for the terms offered in the modification without a concession being granted. Also included are borrowers who received interest rate concessions that are below market rates. Delays in principal repayment include loans which were intended to be amortizing during the period, but due to financial hardship these borrowers were unable to meet the original or intended repayment terms. These include loans with principal deferrals for a prolonged period or those with modified payments which are an exception to bank policy. The following tables present loans by class modified as troubled debt restructurings that occurred during the three and nine month periods ending September 30, 2011: 18
19
All of the commercial and industrial loan troubled debt restructurings described above also had inadequate compensation of additional collateral as part of the restructuring. For the three month period ending September 30, 2011 the commercial and industrial loan troubled debt restructurings described above increased the allowance for loan losses by $76,000, the commercial real estate and multi-family residential loan troubled debt restructurings described above increased the allowance for loan losses by $378,000, the agri-business and agricultural loan troubled debt restructurings described above increased the allowance for loan losses by $2,000 and the consumer 1-4 family loan troubled debt restructurings described above increased the allowance for loan losses by $58,000. For the nine month period ending September 30, 2011 the commercial and industrial loan troubled debt restructurings described above increased the allowance for loan losses by $124,000, the commercial real estate and multi-family residential loan troubled debt restructurings described above increased the allowance for loan losses by $674,000, the agri-business and agricultural loan troubled debt restructurings described above increased the allowance for loan losses by $9,000 and the consumer 1-4 family loan troubled debt restructurings described above increased the allowance for loan losses by $88,000. The commercial real estate and multi-family residential loan troubled debt restructurings described above also resulted in charge offs of $0 and $487,000 during the three and nine month periods ending September 30, 2011. No charge offs resulted from any other troubled debt restructurings described above during the three and nine month periods ending September 30, 2011 . 20 The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the three and nine month periods ending September 30, 2011:
A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. The troubled debt restructurings that subsequently defaulted described above increased the allowance for loan losses by $6,000 and did not result in any charge offs during the three and nine month periods ending September 30, 2011. 21 Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $250,000. The Company uses the following definitions for risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. 22 Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans with the exception of consumer troubled debt restructurings which are evaluated and listed with Substandard commercial grade loans. Loans listed as not rated are consumer loans included in groups of homogenous loans. As of September 30, 2011 and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
The recorded investment in loans does not include accrued interest. 23 As of December 31, 2010 the risk category of loans by class of loans is as follows:
The recorded investment in loans does not include accrued interest. |
Document Information | 9 Months Ended |
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Sep. 30, 2011 | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2011 |
SECURITIES | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Notes to Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SECURITIES | NOTE 5. SECURITIES Information related to the fair value and amortized cost of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) is provided in the tables below.
Information regarding the fair value and amortized cost of available for sale debt securities by maturity as of September 30, 2011 is presented below. Maturity information is based on contractual maturity for all securities other than mortgage-backed securities. Actual maturities of securities may differ from contractual maturities because borrowers may have the right to prepay the obligation without prepayment penalty.
25 Information regarding security proceeds, gross gains and gross losses are presented below.
The Company sold 36 securities with a total book value of $73.5 million and a total fair value of $73.3 million during the first nine months of 2011. The sales were related to a strategic realignment of the securities portfolio, and included six of the seven non-agency residential mortgage backed securities on which the Company had previously recognized other-than-temporary impairment. There were no securities sales during the first nine months of 2010. Purchase premiums or discounts are recognized in interest income using the interest method over the terms of the securities or over estimated lives for mortgage-backed securities. Gains and losses on sales are based on the amortized cost of the security sold and recorded on the trade date. Securities with carrying values of $249.8 million and $243.9 million were pledged as of September 30, 2011 and 2010, as collateral for deposits of public funds, securities sold under agreements to repurchase, borrowings from the FHLB and for other purposes as permitted or required by law. Information regarding securities with unrealized losses as of September 30, 2011 and December 31, 2010 is presented below. The tables distribute the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more.
26
The number of securities with unrealized losses as of September 30, 2011 and December 31, 2010 is presented below.
All of the following are considered to determine whether or not the impairment of these securities is other-than-temporary. Ninety-four percent of the securities are backed by the U.S. Government, government agencies, government sponsored agencies or are A rated or better, except for certain non-local municipal securities which are not rated. Mortgage-backed securities which are not issued by the U.S. Government or government sponsored agencies (non-agency residential mortgage-backed securities) met specific criteria set by the Asset Liability Management Committee at their time of purchase, including having the highest rating available by either Moody’s or S&P. None of the securities have call provisions (with the exception of the municipal securities) and payments as originally agreed have been received. For the government, government-sponsored agency and municipal securities, management did not have concerns of credit losses and there was nothing to indicate that full principal will not be received. Management considered the unrealized losses on these securities to be primarily interest rate driven and does not expect material losses given current market conditions unless the securities are sold, which at this time management does not have the intent to sell nor will it more likely than not be required to sell these securities before the recovery of their amortized cost basis. 27 As of September 30, 2011, the Company had $35.2 million of collateralized mortgage obligations which were not issued by the federal government or government sponsored agencies, but were rated AAA by S&P and/or Aaa by Moody’s at the time of purchase. At December 31, 2010, the Company had $62.8 million of these collateralized mortgage obligations. During the first quarter of 2011, the Company sold eight of the non-agency residential mortgage backed securities as part of a strategic realignment of the investment portfolio. The securities sold had a book value of $21.9 million and a fair value of $17.7 million. The sales included six of the seven non-agency residential mortgage backed securities on which the Company had previously recognized other-than-temporary impairment. Two of the 15 remaining non-agency residential mortgage backed securities were still rated AAA/Aaa as of September 30, 2011, but 13 were downgraded by S&P, Fitch and/or Moody’s, including 10 which were ranked below investment grade by one or more rating agencies. Of the five securities rated AAA/Aaa at December 31, 2010, three have been downgraded, but were still rated as investment grade. Of the 10 that were below AAA/Aaa at December 31, 2010, three incurred further downgrades. For these non-agency residential mortgage-backed securities, additional analysis is performed to determine if the impairment is temporary or other-than-temporary in which case impairment would need to be recorded for these securities. The Company performs an independent analysis of the cash flows of the individual securities based upon assumptions as to collateral defaults, prepayment speeds, expected losses and the severity of potential losses. Based upon the initial review, securities may be identified for further analysis computing the net present value using an appropriate discount rate (the current accounting yield) and comparing it to the book value of the security to determine if there is any other-than-temporary impairment that must be recorded. Based on this analysis of the non-agency residential mortgage-backed securities, the Company recorded an other-than-temporary impairment of $33,000 and $154,000, respectively, relating to one security in the three-months and nine-months ended September 30, 2011, which is equal to the credit loss, establishing a new, lower amortized cost basis. Because management did not have the intent to sell these securities nor did management believe that it was more likely than not they would be required to sell these securities before the recovery of their new, lower amortized cost basis, management did not consider the remaining unrealized losses of the investment securities to be other-than-temporarily impaired at September 30, 2011. The following table provides information about debt securities for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income. The table represents the three months and nine months ended September 30, 2011 and 2010. 28
29 Information on securities with at least one rating below investment grade as of September 30, 2011 is presented below.
All of these securities are super senior or senior tranche non-agency residential mortgage-backed securities. The credit support is the credit support percentage for a tranche from other subordinated tranches, which is the amount of principal in the subordinated tranches expressed as a percentage of the remaining principal in the super senior/senior tranche. The super senior/senior tranches receive the prepayments and the subordinate tranches absorb the losses. The super senior/senior tranches do not absorb losses until the subordinate tranches are gone. 30 The Company does not have a history of actively trading securities, but keeps the securities available for sale should liquidity or other needs develop that would warrant the sale of securities. While these securities are held in the available for sale portfolio, it is management’s current intent and ability to hold them until a recovery in fair value or maturity. |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 9 Months Ended | |
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Sep. 30, 2011 | Sep. 30, 2010 | |
Statement of Stockholders Equity [Abstract] | ||
Common stock cash dividends declared, per share (in dollars per share) | $ 0.465 | $ 0.465 |
Treasury shares purchased under deferred directors' plan (in shares) | 10,187 | 10,254 |
Treasury stock sold and distributed under deferred directors' plan (in shares) | 30,100 | 4,477 |
Stock activity under stock compensation plans (in shares) | 42,200 | 54,108 |
Redemption of shares of preferred stock (in shares) | 0 | 56,044 |
BASIS OF PRESENTATION | 9 Months Ended |
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Sep. 30, 2011 | |
Notes to Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 1. BASIS OF PRESENTATION This report is filed for Lakeland Financial Corporation (the “Company”) and its wholly owned subsidiary, Lake City Bank (the “Bank”). All significant inter-company balances and transactions have been eliminated in consolidation. Also included is the Bank’s wholly owned subsidiary, LCB Investments II, Inc. (“LCB Investments”). LCB Investments also owns LCB Funding, Inc. (“LCB Funding”), a real estate investment trust. The unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (all of which are normal and recurring in nature) considered necessary for a fair presentation have been included. Operating results for the three-month and nine-month periods ending September 30, 2011 are not necessarily indicative of the results that may be expected for the year ending December 31, 2011. The 2010 Lakeland Financial Corporation Annual Report on Form 10-K should be read in conjunction with these statements. |
SUBSEQUENT EVENTS | 9 Months Ended |
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Sep. 30, 2011 | |
Notes to Financial Statements [Abstract] | |
SUBSEQUENT EVENTS | NOTE 10. SUBSEQUENT EVENTS There were no subsequent events that would have a material impact to the financial statements presented in this Form 10-Q. |
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data | Sep. 30, 2011 | Dec. 31, 2010 |
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ASSETS | ||
Loans, allowance for loan losses | $ 52,073 | $ 45,007 |
EQUITY | ||
Common stock: shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock: no par value (in dollars per share) | $ 0 | $ 0 |
Common stock: shares issued (in shares) | 16,211,319 | 16,169,119 |
Common stock: shares outstanding (in shares) | 16,140,533 | 16,078,420 |
Treasury stock, shares (in shares) | 70,786 | 90,699 |