Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Mar. 11, 2014 | Jun. 30, 2013 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'FIRST BUSEY CORP /NV/ | ' | ' |
Entity Central Index Key | '0000314489 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $349 |
Entity Common Stock, Shares Outstanding | ' | 86,811,171 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks (interest-bearing 2013 $118,228; 2012 $235,428) | $231,603 | $351,255 |
Securities available for sale, at fair value | 841,310 | 1,001,497 |
Securities held to maturity, at amortized cost | 834 | ' |
Loans held for sale | 13,840 | 40,003 |
Loans (net of allowance for loan losses 2013 $47,567; 2012 $48,012) | 2,233,893 | 1,985,095 |
Premises and equipment | 65,827 | 71,067 |
Goodwill | 20,686 | 20,686 |
Other intangible assets | 9,571 | 12,703 |
Cash surrender value of bank owned life insurance | 40,674 | 39,485 |
Other real estate owned (OREO) | 2,133 | 3,450 |
Deferred tax assets, net | 35,642 | 39,373 |
Other assets | 43,562 | 53,442 |
Total assets | 3,539,575 | 3,618,056 |
Deposits: | ' | ' |
Noninterest-bearing | 547,531 | 611,043 |
Interest-bearing | 2,321,607 | 2,369,249 |
Total deposits | 2,869,138 | 2,980,292 |
Securities sold under agreements to repurchase | 172,348 | 139,024 |
Long-term debt | ' | 7,000 |
Junior subordinated debt owed to unconsolidated trusts | 55,000 | 55,000 |
Other liabilities | 27,725 | 27,943 |
Total liabilities | 3,124,211 | 3,209,259 |
Commitments and contingencies (see Note 18 - Commitments, Contingencies and Credit Risk) | ' | ' |
Stockholders' Equity | ' | ' |
Series C Preferred stock, $.001 par value, 72,664 shares authorized, issued and outstanding, $1,000.00 liquidation value | 72,664 | 72,664 |
Common stock, $.001 par value, authorized 200,000,000 shares; issued 88,287,132 shares | 88 | 88 |
Surplus | 593,144 | 594,411 |
Retained earnings (deficit) | -225,722 | -240,321 |
Accumulated other comprehensive income | 4,456 | 13,542 |
Total stockholders' equity before treasury stock | 444,630 | 440,384 |
Common stock shares held in treasury at cost - 2013 1,482,777 2012 1,616,282 | -29,266 | -31,587 |
Total stockholders' equity | 415,364 | 408,797 |
Total liabilities and stockholders' equity | $3,539,575 | $3,618,056 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Cash and due from banks, interest-bearing (in dollars) | $118,225 | $235,428 |
Loans, allowance for loan losses (in dollars) | $47,567 | $48,012 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 72,664 | 72,664 |
Preferred stock, shares issued | 72,664 | 72,664 |
Preferred stock, shares outstanding | 72,664 | 72,664 |
Preferred stock, liquidation value (in dollars per share) | $1,000 | $1,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 88,287,132 | 88,287,132 |
Common stock shares held in treasury | 1,482,777 | 1,616,282 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest income: | ' | ' | ' |
Interest and fees on loans | $92,233 | $98,614 | $114,791 |
Interest and dividends on investment securities: | ' | ' | ' |
Taxable interest income | 12,570 | 14,626 | 15,192 |
Non-taxable interest income | 3,893 | 3,676 | 2,836 |
Total interest income | 108,696 | 116,916 | 132,819 |
Interest expense: | ' | ' | ' |
Deposits | 7,099 | 12,496 | 18,660 |
Securities sold under agreements to repurchase | 186 | 279 | 367 |
Short-term borrowings | 15 | 35 | 38 |
Long-term debt | 125 | 648 | 1,442 |
Junior subordinated debt owed to unconsolidated trusts | 1,206 | 1,312 | 1,919 |
Total interest expense | 8,631 | 14,770 | 22,426 |
Net interest income | 100,065 | 102,146 | 110,393 |
Provision for loan losses | 7,500 | 16,500 | 20,000 |
Net interest income after provision for loan losses | 92,565 | 85,646 | 90,393 |
Other income: | ' | ' | ' |
Trust fees | 18,521 | 17,592 | 15,657 |
Commissions and brokers' fees, net | 2,416 | 2,102 | 1,858 |
Remittance processing | 8,354 | 8,426 | 9,196 |
Service charges on deposit accounts | 11,947 | 11,646 | 12,616 |
Other service charges and fees | 5,961 | 5,717 | 5,298 |
Gain on sales of loans | 10,227 | 12,535 | 10,945 |
Security gains, net | 553 | 1,597 | 170 |
Other | 4,604 | 7,237 | 3,275 |
Total other income | 62,583 | 66,852 | 59,015 |
Other expense: | ' | ' | ' |
Salaries and wages | 52,891 | 53,668 | 43,344 |
Employee benefits | 10,922 | 11,124 | 9,896 |
Net occupancy expense of premises | 8,489 | 8,899 | 8,897 |
Furniture and equipment expenses | 4,848 | 5,146 | 5,277 |
Data processing | 10,465 | 11,061 | 8,635 |
Amortization of intangible assets | 3,132 | 3,315 | 3,538 |
Regulatory expense | 2,290 | 2,543 | 4,109 |
OREO expense | 503 | 1,303 | 1,192 |
Other | 18,771 | 22,585 | 19,677 |
Total other expense | 112,311 | 119,644 | 104,565 |
Income before income taxes | 42,837 | 32,854 | 44,843 |
Income taxes | 14,111 | 10,497 | 14,970 |
Net income | 28,726 | 22,357 | 29,873 |
Preferred stock dividends and discount accretion | 3,633 | 3,633 | 5,342 |
Net income available for common stockholders | $25,093 | $18,724 | $24,531 |
Basic earnings per common share (in dollars per share) | $0.29 | $0.22 | $0.29 |
Diluted earnings per common share (in dollars per share) | $0.29 | $0.22 | $0.29 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Net income | $28,726 | $22,357 | $29,873 |
Unrealized net (losses) gains on securities: | ' | ' | ' |
Unrealized net holding (losses) gains arising during period | -14,892 | 2,307 | 7,490 |
Reclassification adjustment for (gains) included in net income | -553 | -1,597 | -170 |
Other comprehensive (loss) income, before tax | -15,445 | 710 | 7,320 |
Income tax (benefit) expense related to items of other comprehensive income | -6,359 | 292 | 3,228 |
Other comprehensive (loss) income, net of tax | -9,086 | 418 | 4,092 |
Comprehensive income | $19,640 | $22,775 | $33,965 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Preferred Stock | Common Stock | Surplus | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income | Treasury Stock | Unearned ESOP Shares |
In Thousands, unless otherwise specified | ||||||||
Balance at Dec. 31, 2010 | $420,505 | $131,452 | $81 | $562,375 | ($249,418) | $9,032 | ($32,183) | ($834) |
Increase (decrease) in shareholders' equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 29,873 | ' | ' | ' | 29,873 | ' | ' | ' |
Other comprehensive income (loss) | 4,092 | ' | ' | ' | ' | 4,092 | ' | ' |
Conversion of 318.6225 shares of Series B preferred stock to 7,497,000 shares of common stock | ' | -31,862 | 7 | 31,855 | ' | ' | ' | ' |
Repurchase of 100,000 shares of Series T preferred stock | -100,000 | -99,590 | ' | -410 | ' | ' | ' | ' |
Issuance of 72,664 shares of Series C preferred stock | 72,664 | 72,664 | ' | ' | ' | ' | ' | ' |
Net issuance of 111,012, 6,804 and 3,879 shares of treasury stock for restricted stock unit vesting and related tax benefit for the years 2013, 2012 and 2011, respectively | 18 | ' | ' | -49 | ' | ' | 67 | ' |
Cash dividends common stock at $0.12, 0.24 and 0.16 per share for the years 2013, 2012 and 2011, respectively | -13,555 | ' | ' | ' | -13,555 | ' | ' | ' |
Stock dividend equivalents restricted stock units at $0.12, 0.24 and 0.16 per share for the years 2013, 2012 and 2011, respectively | 15 | ' | ' | 68 | -53 | ' | ' | ' |
Employee stock ownership plan shares allocated | 99 | ' | ' | -318 | ' | ' | ' | 417 |
Stock based employee compensation | 488 | ' | ' | 488 | ' | ' | ' | ' |
Preferred stock dividends | -4,932 | ' | ' | ' | -4,932 | ' | ' | ' |
Balance at Dec. 31, 2011 | 409,267 | 72,664 | 88 | 594,009 | -238,085 | 13,124 | -32,116 | -417 |
Increase (decrease) in shareholders' equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 22,357 | ' | ' | ' | 22,357 | ' | ' | ' |
Other comprehensive income (loss) | 418 | ' | ' | ' | ' | 418 | ' | ' |
Issuance of 22,493 and 23,640 shares of treasury stock for employee stock purchase plan for the years 2013 and 2012, respectively | 109 | ' | ' | -302 | ' | ' | 411 | ' |
Net issuance of 111,012, 6,804 and 3,879 shares of treasury stock for restricted stock unit vesting and related tax benefit for the years 2013, 2012 and 2011, respectively | -13 | ' | ' | -131 | ' | ' | 118 | ' |
Cash dividends common stock at $0.12, 0.24 and 0.16 per share for the years 2013, 2012 and 2011, respectively | -20,794 | ' | ' | ' | -20,794 | ' | ' | ' |
Stock dividend equivalents restricted stock units at $0.12, 0.24 and 0.16 per share for the years 2013, 2012 and 2011, respectively | ' | ' | ' | 166 | -166 | ' | ' | ' |
Employee stock ownership plan shares allocated | 95 | ' | ' | -322 | ' | ' | ' | 417 |
Stock based employee compensation | 991 | ' | ' | 991 | ' | ' | ' | ' |
Preferred stock dividends | -3,633 | ' | ' | ' | -3,633 | ' | ' | ' |
Balance at Dec. 31, 2012 | 408,797 | 72,664 | 88 | 594,411 | -240,321 | 13,542 | -31,587 | ' |
Increase (decrease) in shareholders' equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 28,726 | ' | ' | ' | 28,726 | ' | ' | ' |
Other comprehensive income (loss) | -9,086 | ' | ' | ' | ' | -9,086 | ' | ' |
Issuance of 22,493 and 23,640 shares of treasury stock for employee stock purchase plan for the years 2013 and 2012, respectively | 106 | ' | ' | -288 | ' | ' | 394 | ' |
Net issuance of 111,012, 6,804 and 3,879 shares of treasury stock for restricted stock unit vesting and related tax benefit for the years 2013, 2012 and 2011, respectively | -218 | ' | ' | -2,145 | ' | ' | 1,927 | ' |
Cash dividends common stock at $0.12, 0.24 and 0.16 per share for the years 2013, 2012 and 2011, respectively | -10,407 | ' | ' | ' | -10,407 | ' | ' | ' |
Stock dividend equivalents restricted stock units at $0.12, 0.24 and 0.16 per share for the years 2013, 2012 and 2011, respectively | ' | ' | ' | 87 | -87 | ' | ' | ' |
Stock based employee compensation | 1,079 | ' | ' | 1,079 | ' | ' | ' | ' |
Preferred stock dividends | -3,633 | ' | ' | ' | -3,633 | ' | ' | ' |
Balance at Dec. 31, 2013 | $415,364 | $72,664 | $88 | $593,144 | ($225,722) | $4,456 | ($29,266) | ' |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ' | ' | ' |
Conversion of Series B preferred stock to common stock, preferred stock shares converted | ' | ' | 318.6225 |
Conversion of Series B preferred stock to common stock, common stock shares obtained | ' | ' | 7,497,000 |
Repurchase of Series T preferred stock | ' | ' | 100,000 |
Issuance of Series C preferred stock | ' | ' | 72,664 |
Issuance of shares of treasury stock for employee stock purchase plan | 22,493 | 23,640 | ' |
Issuance of shares of treasury stock for restricted stock unit vesting and related tax benefit | 111,012 | 6,804 | 3,879 |
Cash dividends, common stock (in dollars per share) | $0.12 | $0.24 | $0.16 |
Stock dividends, restricted stock units (in dollars per share) | $0.12 | $0.24 | $0.16 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows from Operating Activities | ' | ' | ' |
Net income | $28,726 | $22,357 | $29,873 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Stock-based and non-cash compensation | 1,079 | 991 | 488 |
Depreciation and amortization | 8,598 | 8,759 | 9,063 |
Fixed asset impairment | ' | 1,421 | ' |
Provision for loan losses | 7,500 | 16,500 | 20,000 |
Fair value adjustment on employee stock ownership plan shares allocated | ' | -322 | -318 |
Provision for deferred income taxes | 10,110 | 8,571 | 12,776 |
Amortization of security premiums and discounts, net | 8,744 | 9,730 | 6,625 |
Net security gains | -553 | -1,597 | -170 |
Gain on sales of loans, net | -10,227 | -12,535 | -10,945 |
Increase in cash surrender value of bank owned life insurance | -1,189 | -1,603 | -457 |
Net gains on disposition of premises and equipment | -533 | ' | ' |
Net gains on disposition of OREO properties | -260 | -274 | -197 |
Increase (decrease) in deferred compensation | -49 | -70 | 48 |
Change in assets and liabilities: | ' | ' | ' |
Decrease in other assets | 9,880 | 8,368 | 7,745 |
(Decrease) increase in other liabilities | -63 | 992 | -4,033 |
Net cash provided by operating activities before activities for loans originated for sale | 61,763 | 61,288 | 70,498 |
Loans originated for sale | -450,226 | -576,862 | -521,970 |
Proceeds from sales of loans | 486,616 | 564,643 | 567,350 |
Net cash provided by operating activities | 98,153 | 49,069 | 115,878 |
Securities: | ' | ' | ' |
Purchases of securities classified available for sale | -83,718 | -454,538 | -374,297 |
Purchases of securities classified held to maturity | -839 | ' | ' |
Proceeds from sales of securities classified available for sale | 16,365 | 59,570 | 12,754 |
Proceeds from maturities of securities classified available for sale | 203,908 | 217,797 | 127,757 |
Net (increase) decrease in loans | -258,366 | -33,680 | 233,901 |
Purchases of premises and equipment | -2,549 | -8,611 | -2,748 |
Proceeds from sales of premises and equipment | 2,856 | 77 | 1,043 |
Proceeds from sale of OREO properties | 3,645 | 14,950 | 14,831 |
Net cash (used in) provided by investing activities | -118,698 | -204,435 | 13,241 |
Cash Flows from Financing Activities | ' | ' | ' |
Net decrease in certificates of deposit | -108,828 | -116,287 | -202,709 |
Net (decrease) increase in demand deposits, money market and savings accounts | -2,326 | 333,125 | 49,797 |
Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase | 33,324 | 11,157 | -11,115 |
Principal payments on long-term debt | -7,000 | -12,000 | -23,325 |
Repurchase of Series T Preferred stock | ' | ' | -100,000 |
Proceeds from issuance of Series C Preferred stock | ' | ' | 72,664 |
Shares surrendered upon vesting of restricted stock units to cover tax obligations | -237 | ' | ' |
Cash dividends paid | -14,040 | -24,427 | -18,343 |
Net cash (used in) provided by financing activities | -99,107 | 191,568 | -233,031 |
Net (decrease) increase in cash and due from banks | -119,652 | 36,202 | -103,912 |
Cash and due from banks, beginning | 351,255 | 315,053 | 418,965 |
Cash and due from banks, ending | 231,603 | 351,255 | 315,053 |
Cash Payments for: | ' | ' | ' |
Interest | 9,086 | 15,523 | 23,953 |
Income taxes | 4,749 | 1,045 | 2,756 |
Non-cash Investing and Financing Activities: | ' | ' | ' |
Other real estate acquired in settlement of loans | 2,068 | 9,674 | 13,926 |
Conversion of Series B Preferred stock to Common stock | ' | ' | 31,862 |
Employee stock ownership plan shares allocated | ' | 417 | 417 |
Securities available for sale transferred to loans | ' | ' | $2,361 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Significant Accounting Policies | ' | ||||||||||
Significant Accounting Policies | ' | ||||||||||
Note 1. Significant Accounting Policies | |||||||||||
Description of business | |||||||||||
First Busey Corporation (the “Company”) is a Nevada corporation and a financial holding company whose subsidiaries provide retail and commercial banking services, and remittance processing, and offer a full range of financial products and services, including depository, lending, security brokerage services, investment management and fiduciary services, to individual, corporate, institutional and governmental customers through its locations in downstate Illinois, Indianapolis, Indiana and southwest Florida. The Company and its subsidiaries are subject to competition from other financial institutions and non-financial institutions providing financial products and services. The Company and its subsidiaries are also subject to the regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies. | |||||||||||
The significant accounting and reporting policies for the Company and its subsidiaries follow: | |||||||||||
Basis of consolidation | |||||||||||
The Consolidated Financial Statements include the accounts of the Company and its subsidiaries: Busey Bank and its wholly-owned subsidiary FirsTech, Inc.; and Busey Wealth Management, Inc. and its wholly-owned subsidiaries Busey Trust Company and Busey Capital Management, Inc. The Company and its subsidiaries maintain various LLCs that hold specific assets for risk mitigation purposes and are consolidated into these financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||
The Consolidated Financial Statements also exclude the following wholly-owned variable interest entities: First Busey Statutory Trust II, First Busey Statutory Trust III and First Busey Statutory Trust IV because the Company is not the primary beneficiary. | |||||||||||
The Consolidated Financial Statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America and conform to predominant practice within the banking industry. | |||||||||||
Use of estimates | |||||||||||
In preparing the accompanying Consolidated Financial Statements, the Company’s management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near-term relate to the fair value of investment securities, the determination of the allowance for loan losses and the ability to realize its deferred tax assets. | |||||||||||
Comprehensive income | |||||||||||
Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. | |||||||||||
Trust assets | |||||||||||
Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit at the Company’s bank subsidiary, are not assets of the Company and, accordingly, are not included in the accompanying Consolidated Financial Statements. Busey Trust Company had assets under care of $5.0 billion and $4.2 billion at December 31, 2013 and 2012, respectively. | |||||||||||
Cash flows | |||||||||||
For purposes of the consolidated statement of cash flows, cash and due from banks includes cash on hand and amounts due from banks. Cash flows from federal funds purchased and sold, short-term borrowings, and securities sold under agreements to repurchase are reported net, since their original maturities are less than three months. Cash flows from loans and deposits are also reported net. | |||||||||||
Securities | |||||||||||
Securities classified as available for sale are those debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, and marketable equity securities. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Securities available for sale are carried at fair value, with temporary unrealized gains and losses excluded from earnings and reported in other comprehensive income. | |||||||||||
Declines in the fair value of debt securities below their amortized cost are evaluated to determine whether the loss is temporary or other-than-temporary. If the Company (a) has the intent to sell a debt security or (b) more likely than not will be required to sell the debt security before its anticipated recovery, then the Company recognizes the entire unrealized loss in earnings as an other-than-temporary loss. If neither of these conditions are met, the Company evaluates whether a credit loss exists. The impairment is separated into (x) the amount of the total impairment related to the credit loss and (y) the amount of total impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings and the amount related to all other factors is recognized in other comprehensive income. | |||||||||||
The Company also evaluates whether the decline in fair value of an equity security is temporary or other-than-temporary. In determining whether an unrealized loss on an equity security is temporary or other-than-temporary, management considers various factors, including the magnitude and duration of the impairment, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to hold the equity security to forecasted recovery. | |||||||||||
Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. | |||||||||||
Securities classified as held to maturity are those debt securities that the Company intends to hold to maturity. Securities held to maturity are carried at cost, adjusted for amortization of premiums and accretion of discounts. | |||||||||||
Loans held for sale | |||||||||||
Loans held for sale are those loans the Company has the intent to sell in the foreseeable future. They consist of mortgage loans conforming to established guidelines and held for sale to investors and the secondary mortgage market. Loans held for sale are carried at the lower of aggregate cost or estimated fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Gains and losses on sales of loans are recognized at settlement dates and are determined by the difference between the sales proceeds and the carrying amount of the loans after allocating cost to servicing rights retained. | |||||||||||
The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. To avoid interest rate risk, the Company also enters into mortgage loan sales commitments at the time it makes the interest rate lock commitment. Accordingly, such commitments along with any related fees received from potential borrowers are recorded at fair value, with changes in fair value recorded in the net gain or loss on sale of mortgage loans. Fair value is based on the change in estimated fair value of the underlying mortgage loan. The fair value is subject to change primarily due to changes in interest rates and is considered immaterial to the Consolidated Financial Statements. | |||||||||||
Loan servicing | |||||||||||
Servicing assets are recognized as separate assets when rights are acquired or retained through the sale of mortgage loans. Mortgage servicing rights are initially recorded at fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. Capitalized servicing rights are reported in other assets and are amortized into other income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. | |||||||||||
Mortgage servicing rights are periodically evaluated for impairment based on the fair value of those rights as compared to book value. Fair values are estimated using discounted cash flows based on current expected future prepayment rates. For purposes of measuring impairment, the rights must be stratified by one or more predominant risk characteristics of the underlying loans. The Company stratifies its capitalized mortgage servicing rights based on the origination date, interest rate, and type of the underlying loans. The amount of impairment recognized is the amount, if any, by which the amortized cost of the rights for each stratum exceeds its fair value. If the Company later determines that all or a portion of the impairment no longer exists for a particular group of loans, a reduction of the allowance may be recorded as an increase to income. | |||||||||||
Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. | |||||||||||
Loans | |||||||||||
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at the amount of outstanding unpaid principal, adjusted for chargeoffs, the allowance for loan losses, and any deferred origination fees or costs on loans. | |||||||||||
Loan origination fees, net of certain direct loan origination costs, are deferred and the net amount is amortized as an adjustment of the related loan’s yield. The Company is generally amortizing these amounts over the contractual life. However, for long-term, fixed-rate residential mortgages, the Company has anticipated prepayments and assumes an estimated economic life of 5 years or less. Commitment fees and costs are generally based upon a percentage of a customer’s maximum line of credit or fees related to standby letters of credit and are recognized as collected. | |||||||||||
Interest is accrued daily on the outstanding balances. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. Past due status is based on the contractual terms of the loan. | |||||||||||
Interest accrued in the current year but not collected for loans that are placed on non-accrual status or charged-off is reversed against interest income. Interest accrued during the prior year but not collected for loans that are placed on non-accrual status or charged-off is charged against the allowance for loan losses. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |||||||||||
Allowance for loan losses | |||||||||||
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance for loan losses when management believes the uncollectibility of the loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. | |||||||||||
The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | |||||||||||
In addition, regulatory agencies, as an integral part of their examination process, periodically review the allowance for loan losses, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. | |||||||||||
The allowance consists of specific and general components. The specific component considers loans that are classified as impaired. For such loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying amount of that loan. The general component covers non-classified loans and classified loans not considered impaired, and is based on historical loss experience adjusted for qualitative factors. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss experience. | |||||||||||
Premises and equipment | |||||||||||
Land is stated at cost less accumulated depreciation of depreciable land improvements. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. The estimated useful lives for premises and equipment are: | |||||||||||
Asset Description | Estimated Useful Life | ||||||||||
Buildings and improvements | 3 – 40 years | ||||||||||
Furniture and equipment | 3 – 10 years | ||||||||||
Long-lived assets | |||||||||||
Long-lived assets, including premises and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows from operations of the asset are less than the carrying value of the asset. The cash flows used for this analysis are those directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the asset. An impairment loss would be measured by the amount by which the carrying value of the asset exceeds its fair value. | |||||||||||
Other real estate owned | |||||||||||
Other real estate owned (“OREO”) represents properties acquired through foreclosure or other proceedings in settlement of loans. OREO is held for sale and is recorded at the date of foreclosure at the fair value of the properties less estimated costs of disposal, which establishes a new cost basis. Any adjustment to fair value at the time of transfer to OREO is charged to the allowance for loan losses. Property is evaluated regularly to ensure the recorded amount is supported by its current fair value, and valuation allowances to reduce the carrying amount to fair value less estimated costs to dispose are recorded as necessary. Revenue, expense, gains and losses from the operations of foreclosed assets are included in operations. | |||||||||||
Goodwill | |||||||||||
Goodwill represents the excess of the cost of a business acquired over the fair value of the new assets acquired. Goodwill is not amortized, but is subject to at least annual impairment assessments. The Company has established December 31 as the annual impairment assessment date. Accounting standards allow for goodwill to be tested for impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, then the reporting unit’s carrying value is compared to its fair value. The Company estimates the fair value of its reporting units as of the measurement date utilizing valuation methodologies including the comparable transactions approach and the control premium approach. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. There was no impairment determined at December 31, 2013 and 2012. It is possible the Company will evaluate its goodwill for impairment on a more frequent basis than annually. Future evaluations may result in impairment. | |||||||||||
See Note 7 — Goodwill and Other Intangible Assets for further discussion. | |||||||||||
Cash surrender value of bank-owned life insurance | |||||||||||
The Company has purchased life insurance policies on certain executives and senior officers. Life insurance is recorded at its cash surrender value. | |||||||||||
ASC Topic 715, “Compensation—Retirement Benefits” requires an employer to recognize a liability for post-employment benefits promised to an employee based on an arrangement between an employer and an employee. In an endorsement split-dollar arrangement, the employer owns and controls the policy, and the employer and employee split the life insurance policy’s cash surrender value and/or death benefits. If the employer agrees to maintain a life insurance policy during the employee’s retirement, the present value of the cost of maintaining the insurance policy would be accrued over the employee’s active service period. Similarly, if the employer agrees to provide the employee with a death benefit, the present value of the death benefit would be accrued over the employee’s active service period. | |||||||||||
Transfers of financial assets | |||||||||||
Transfers of financial assets are accounted for as sales only when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the assets it received, and no condition both constrains the transferee from taking advantage of its right to pledge or exchange and provides more than a modest benefit to the transferor, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. | |||||||||||
Income taxes | |||||||||||
The Company is subject to income taxes in the U.S. federal and various state jurisdictions. The Company and its subsidiaries file consolidated federal and state income tax returns with each subsidiary computing its taxes on a separate entity basis. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state or local tax examinations by tax authorities for the years before 2009. The provision for income taxes is based on income as reported in the Consolidated Financial Statements. | |||||||||||
The Company has maintained significant net deferred tax assets for deductible temporary differences, the largest of which relates to the net operating loss carryforward and the allowance for loan losses. For income tax return purposes, only actual charge-offs are deductible, not the provision for loan losses. Under generally accepted accounting principles, a valuation allowance is required to be recognized if it is “more likely than not” that the deferred tax assets will not be realized. The determination of the recoverability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, the forecasts of future income, applicable tax planning strategies, and assessments of the current and future economic and business conditions. The Company considers both positive and negative evidence regarding the ultimate recoverability of its deferred tax assets. Positive evidence includes available tax planning strategies and the probability that taxable income will continue to be generated in future periods, as it was in periods since March 31, 2010, while negative evidence includes a cumulative loss in 2009 and 2008 and certain business and economic trends. The Company evaluated the recoverability of its net deferred tax assets and established a valuation allowance for certain state net operating loss and credit carryforwards that are not expected to be fully realized. Management believes that it is more likely than not that the other deferred tax assets included in the accompanying Consolidated Financial Statements will be fully realized. The Company determined that no valuation allowance was required for any other deferred tax assets as of December 31, 2013, although there is no guarantee that those assets will be recognizable in future periods. | |||||||||||
The Company must assess the likelihood that any deferred tax assets will be realized through the reduction of taxes in future periods and establish a valuation allowance for those assets for which recovery is not more likely than not. In making this assessment, the Company must make judgments and estimates regarding the ability to realize the asset through the future reversal of existing taxable temporary differences, future taxable income, and the possible application of future tax planning strategies. The Company’s evaluation gave consideration to the fact that all net operating loss carrybacks have been utilized. Therefore, utilization of net operating loss carryforwards are dependent on implementation of tax strategies and continued profitability. | |||||||||||
Positions taken in tax returns may be subject to challenge upon examination by the taxing authorities. Uncertain tax positions are initially recognized in the Financial Statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are both initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with the tax authority, assuming full knowledge of the position and all relevant facts. When applicable, the Company recognizes interest accrued related to unrecognized tax benefits and penalties in operating expenses. The Company had no accruals for payments of interest and penalties at December 31, 2013 and 2012. | |||||||||||
At December 31, 2013, the Company was not under examination by any tax authority; however, the Company has received notice that the Illinois Department of Revenue intends to audit the Company’s 2011 income tax filing beginning in the first quarter of 2014. | |||||||||||
Reclassifications | |||||||||||
Reclassifications have been made to certain prior year account balances, with no effect on net income or stockholders’ equity, to be consistent with the classifications adopted as of and for the year ended December 31, 2013. | |||||||||||
Stock-based employee compensation | |||||||||||
During the second quarter of 2010, the Company adopted the First Busey Corporation 2010 Equity Incentive Plan (“2010 Equity Plan”), which was approved at the annual stockholders meeting on May 19, 2010. The Company will no longer make any additional grants under prior plans. | |||||||||||
The Company’s equity incentive plans are designed to encourage ownership of its common stock by its employees and directors, to provide additional incentive for them to promote the success of the Company’s business, and to attract and retain talented personnel. All of the Company’s employees and directors and those of its subsidiaries are eligible to receive awards under the plans. See Note 16 — Stock Incentive Plans for further discussion. | |||||||||||
The Company calculates the compensation cost of its non-vested stock awards (restricted stock units) based on the Company’s stock price on the grant date multiplied by the number of units granted. This cost is recorded over a specified requisite service period (i.e. vesting period) ranging from one to five years. As the units cliff vest and are subject only to a service condition, the cost is recorded using straight-line amortization. No compensation cost is recognized for unvested awards that are forfeited. | |||||||||||
Segment disclosure | |||||||||||
Operating segments are components of a business that (i) engage in business activities from which it may earn revenues and incur expenses; (ii) have operating results that are reviewed regularly by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance; and (iii) for which discrete financial information is available. The Company’s segments are its three primary operating subsidiaries Busey Bank, FirsTech and Busey Wealth Management. | |||||||||||
Earnings per share | |||||||||||
Basic earnings per share are computed by dividing net income available to common stockholders for the year by the weighted average number of shares outstanding. | |||||||||||
Diluted earnings per share are determined by dividing net income available to common stockholders for the period by the weighted average number of shares of common stock and common stock equivalents outstanding. Common stock equivalents assume exercise of stock options, warrants and vesting of restricted stock units and use of proceeds to purchase treasury stock at the average market price for the period. If the average market price for the period is less than the strike price of a stock option or warrant, that option or warrant is considered anti-dilutive and is excluded from the calculation of common stock equivalents. If the total employee proceeds of a restricted stock unit exceed the average market price for the period, that restricted stock unit is considered anti-dilutive and is excluded from the calculation of common stock equivalents. At December 31, 2013, 643,879 outstanding options, 573,833 warrants, and 347,253 restricted stock units were anti-dilutive and excluded from the calculation of common stock equivalents. At December 31, 2012, 804,968 outstanding options, 573,833 warrants, and 793,332 restricted stock units were anti-dilutive and excluded from the calculation of common stock equivalents. | |||||||||||
The following reflects net income per share calculations for basic and diluted methods: | |||||||||||
For the Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands, except per share data) | |||||||||||
Net income available to common stockholders | $ | 25,093 | $ | 18,724 | $ | 24,531 | |||||
Weighted average common shares outstanding | 86,765 | 86,643 | 85,304 | ||||||||
Dilutive effect of outstanding options, warrants and restricted stock units as determined by the application of the treasury stock method | 299 | 9 | 8 | ||||||||
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation | 87,064 | 86,652 | 85,312 | ||||||||
Basic earnings per common share | $ | 0.29 | $ | 0.22 | $ | 0.29 | |||||
Diluted earnings per common share | $ | 0.29 | $ | 0.22 | $ | 0.29 | |||||
Subsequent events | |||||||||||
The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the Consolidated Financial Statements included in this Annual Report on Form 10-K were issued. There were no significant subsequent events for the year ended December 31, 2013 through the date of these Consolidated Financial Statements. | |||||||||||
Impact of new financial accounting standards | |||||||||||
ASU 2011-11, “Balance Sheet (Topic 210) — Disclosures about Offsetting Assets and Liabilities.” ASU 2011-11 amends Topic 210, “Balance Sheet,” to require an entity to disclose both gross and net information about financial instruments, such as sales and repurchase agreements and reverse sale and repurchase agreements. ASU 2011-11 became effective for the Company on January 1, 2013 and did not have a significant impact of the Company’s financial statements. | |||||||||||
ASU 2013-02, “Comprehensive Income (Topic 220) — Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU 2013-02 amends guidance related to the reporting of comprehensive income to enhance the reporting of reclassifications out of accumulated other comprehensive income. ASU 2013-02 became effective for the Company on January 1, 2013 and did not have a significant impact on the Company’s financial statements. | |||||||||||
ASU 2013-12, “Definition of a Public Business Entity - An Addition to the Master Glossary.” ASU 2013-12 amends the Master Glossary of the FASB Accounting Standards Codification to include a single definition of public business entity for use in future financial and reporting guidance. ASU 2013-12 did not have an impact on the Company’s financial statements. | |||||||||||
ASU 2014-04, “Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” ASU 2014-14 clarifies when an in-substance repossession or foreclosure occurs and requires interim and annual disclosures. The new authoritative guidance will be for reporting periods after January 1, 2015 and is not expected to have a significant impact on the Company’s financial statements. | |||||||||||
Cash_and_Due_from_Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2013 | |
Cash and Due from Banks | ' |
Cash and Due from Banks | ' |
Note 2. Cash and Due from Banks | |
The Bank is required to maintain certain cash reserve balances with the Federal Reserve Bank of Chicago, which may be offset by cash on hand. The required reserve balances as of December 31, 2013 and 2012 were approximately $5.3 million and $4.3 million, respectively. | |
Effective July 12, 2012, the contractual clearing balance program was eliminated by the Federal Reserve Bank. Prior to that, the Bank had established a clearing balance requirement with the Federal Reserve Bank of Chicago to use Federal Reserve Bank services. | |
The Company maintains its cash in deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Management believes the Company is not exposed to any significant credit risk on cash and cash equivalents. | |
Securities
Securities | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Securities | ' | |||||||||||||||||||
Securities | ' | |||||||||||||||||||
Note 3. Securities | ||||||||||||||||||||
The amortized cost, unrealized gains and losses and fair values of securities classified as available for sale and held to maturity are summarized as follows: | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
December 31, 2013: | Cost | Gains | Losses | Value | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||
U.S. Treasury securities | $ | 102,463 | $ | 244 | $ | (67 | ) | $ | 102,640 | |||||||||||
Obligations of U.S. government corporations and agencies | 254,998 | 2,741 | (328 | ) | 257,411 | |||||||||||||||
Obligations of states and political subdivisions | 272,077 | 2,887 | (2,812 | ) | 272,152 | |||||||||||||||
Residential mortgage-backed securities | 174,699 | 3,571 | (535 | ) | 177,735 | |||||||||||||||
Corporate debt securities | 25,384 | 155 | (33 | ) | 25,506 | |||||||||||||||
Total debt securities | 829,621 | 9,598 | (3,775 | ) | 835,444 | |||||||||||||||
Mutual funds and other equity securities | 4,114 | 1,752 | — | 5,866 | ||||||||||||||||
Total | $ | 833,735 | $ | 11,350 | $ | (3,775 | ) | $ | 841,310 | |||||||||||
December 31, 2013: | ||||||||||||||||||||
Held to maturity | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 834 | $ | 1 | $ | (4 | ) | $ | 831 | |||||||||||
Total | $ | 834 | $ | 1 | $ | (4 | ) | $ | 831 | |||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
December 31, 2012: | Cost | Gains | Losses | Value | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||
U.S. Treasury securities | $ | 103,353 | $ | 1,303 | $ | — | $ | 104,656 | ||||||||||||
Obligations of U.S. government corporations and agencies | 363,583 | 6,616 | (5 | ) | 370,194 | |||||||||||||||
Obligations of states and political subdivisions | 274,350 | 6,176 | (238 | ) | 280,288 | |||||||||||||||
Residential mortgage-backed securities | 210,139 | 7,576 | — | 217,715 | ||||||||||||||||
Corporate debt securities | 24,601 | 139 | (26 | ) | 24,714 | |||||||||||||||
Total debt securities | 976,026 | 21,810 | (269 | ) | 997,567 | |||||||||||||||
Mutual funds and other equity securities | 2,451 | 1,479 | — | 3,930 | ||||||||||||||||
Total | $ | 978,477 | $ | 23,289 | $ | (269 | ) | $ | 1,001,497 | |||||||||||
There were no held to maturity securities at December 31, 2012. | ||||||||||||||||||||
The amortized cost and fair value of debt securities available for sale and held to maturity as of December 31, 2013, by contractual maturity, are shown below. Mutual funds and other equity securities do not have stated maturity dates and therefore are not included in the following maturity summary. Mortgages underlying the residential mortgage-backed securities may be called or prepaid without penalties; therefore, actual maturities could differ from the contractual maturities. All residential mortgage-backed securities were issued by U.S. government agencies and corporations. | ||||||||||||||||||||
Available for sale | Held to maturity | |||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||||
(dollars in thousands) | (dollars in thousands) | |||||||||||||||||||
Due in one year or less | $ | 140,414 | $ | 141,464 | $ | — | $ | — | ||||||||||||
Due after one year through five years | 451,993 | 454,381 | 321 | 322 | ||||||||||||||||
Due after five years through ten years | 163,885 | 165,378 | 513 | 509 | ||||||||||||||||
Due after ten years | 73,329 | 74,221 | — | — | ||||||||||||||||
Total | $ | 829,621 | $ | 835,444 | $ | 834 | $ | 831 | ||||||||||||
Realized gains and losses related to sales of securities available for sale are summarized as follows: | ||||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Gross security gains | $ | 599 | $ | 1,602 | $ | 174 | ||||||||||||||
Gross security (losses) | (46 | ) | (5 | ) | (4 | ) | ||||||||||||||
Net security gains | $ | 553 | $ | 1,597 | $ | 170 | ||||||||||||||
The tax provision for these net realized gains and losses was $0.2 million for the year ended December 31, 2013, and $0.6 million for the year ended December 31, 2012. It was insignificant for the year ended December 31, 2011. | ||||||||||||||||||||
Investment securities with carrying amounts of $428.7 million and $489.1 million on December 31, 2013 and 2012, respectively, were pledged as collateral on public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law. | ||||||||||||||||||||
Information pertaining to securities with gross unrealized losses at December 31, 2013 and 2012 aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: | ||||||||||||||||||||
Continuous unrealized | Continuous unrealized | Total, gross | ||||||||||||||||||
losses existing for less than | losses existing for greater | |||||||||||||||||||
12 months, gross | than 12 months, gross | |||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
December 31, 2013: | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||
U.S. Treasury securities | $ | 25,830 | $ | 67 | $ | — | $ | — | $ | 25,830 | $ | 67 | ||||||||
Obligations of U.S. government corporations and agencies | 25,946 | 328 | — | — | 25,946 | 328 | ||||||||||||||
Obligations of states and political subdivisions | 92,703 | 2,518 | 8,492 | 294 | 101,195 | 2,812 | ||||||||||||||
Residential mortgage-backed securities | 53,543 | 535 | — | — | 53,543 | 535 | ||||||||||||||
Corporate debt securities | 1,614 | 33 | — | — | 1,614 | 33 | ||||||||||||||
Total temporarily impaired securities | $ | 199,636 | $ | 3,481 | $ | 8,492 | $ | 294 | $ | 208,128 | $ | 3,775 | ||||||||
December 31, 2013: | ||||||||||||||||||||
Held to maturity | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 597 | $ | 4 | $ | — | $ | — | $ | 597 | $ | 4 | ||||||||
Total temporarily impaired securities | $ | 597 | $ | 4 | $ | — | $ | — | $ | 597 | $ | 4 | ||||||||
Continuous unrealized | Continuous unrealized | Total, gross | ||||||||||||||||||
losses existing for lessthan | losses existing for greater | |||||||||||||||||||
12 months, gross | than 12 months, gross | |||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
December 31, 2012: | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||
Obligations of U.S. government corporations and agencies | $ | 10,155 | $ | 5 | $ | — | $ | — | $ | 10,155 | $ | 5 | ||||||||
Obligations of states and political subdivisions | 37,958 | 189 | 3,311 | 49 | 41,269 | 238 | ||||||||||||||
Corporate debt securities | 15,207 | 26 | — | — | 15,207 | 26 | ||||||||||||||
Total temporarily impaired securities | $ | 63,320 | $ | 220 | $ | 3,311 | $ | 49 | $ | 66,631 | $ | 269 | ||||||||
Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the length of time and extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and whether the Company has the intent to sell the security and it is more likely than not it will have to sell the security before recovery of its cost basis. | ||||||||||||||||||||
The total number of securities in the investment portfolio in an unrealized loss position as of December 31, 2013 was 266, and represented a loss of 1.8% of the aggregate carrying value. Based upon a review of unrealized loss circumstances, the unrealized losses resulted from changes in market interest rates and liquidity, not from changes in the probability of receiving the contractual cash flows. The Company does not intend to sell the securities and it is more likely than not that the Company will recover the amortized cost prior to being required to sell the securities. Full collection of the amounts due according to the contractual terms of the securities is expected; therefore, the Company did not consider these investments to be other-than-temporarily impaired at December 31, 2013. | ||||||||||||||||||||
The Company had available for sale obligations of state and political subdivisions with a fair value of $272.2 million and 280.3 million as of December 31, 2013 and 2012, respectively. In addition, the Company had held to maturity obligations of state and political subdivisions totaling $0.8 million at December 31, 2013 and none as of December 31, 2012. | ||||||||||||||||||||
As of December 31, 2013, the Company’s obligations of state and political subdivisions portfolio was comprised of $223.5 million of general obligation and $49.5 million of revenue bonds issued by 267 issuers, primarily consisting of states, counties, cities, towns, villages and school districts. The Company held investments in general obligation bonds in twenty-five states (including the District of Columbia), including seven states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in twenty-one states, including two states where the aggregate fair value exceeded $5.0 million. | ||||||||||||||||||||
As of December 31, 2012, the Company’s obligations of state and political subdivisions portfolio was comprised of $228.6 million of general obligation and $51.7 million of revenue bonds issued by 276 issuers, primarily consisting of states, counties, cities, towns, villages and school districts. The Company held investments in general obligation bonds in twenty-six states (including the District of Columbia), including five states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in twenty-three states, including two states where the aggregate fair value exceeded $5.0 million. | ||||||||||||||||||||
The amortized cost and fair values of the Company’s portfolio of general obligation bonds are summarized in the following tables by the issuers’ state: | ||||||||||||||||||||
December 31, 2013: | ||||||||||||||||||||
Average Exposure | ||||||||||||||||||||
Number of | Per Issuer | Amortized | Fair | |||||||||||||||||
U.S. State | Issuers | (Fair Value) | Cost | Value | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois | 82 | $ | 1,022 | $ | 82,884 | $ | 83,804 | |||||||||||||
Wisconsin | 41 | 1,052 | 43,117 | 43,122 | ||||||||||||||||
Michigan | 37 | 956 | 35,350 | 35,365 | ||||||||||||||||
Pennsylvania | 11 | 1,285 | 14,132 | 14,133 | ||||||||||||||||
Ohio | 12 | 952 | 11,709 | 11,426 | ||||||||||||||||
Texas | 7 | 1,039 | 7,510 | 7,270 | ||||||||||||||||
Iowa | 3 | 2,020 | 6,126 | 6,060 | ||||||||||||||||
Other | 26 | 857 | 21,865 | 22,290 | ||||||||||||||||
Total general obligations bonds | 219 | $ | 1,020 | $ | 222,693 | $ | 223,470 | |||||||||||||
December 31, 2012: | ||||||||||||||||||||
Average Exposure | ||||||||||||||||||||
Number of | Per Issuer | Amortized | Fair | |||||||||||||||||
U.S. State | Issuers | (Fair Value) | Cost | Value | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois | 97 | $ | 1,008 | $ | 94,614 | $ | 97,812 | |||||||||||||
Wisconsin | 42 | 1,114 | 46,286 | 46,794 | ||||||||||||||||
Michigan | 35 | 949 | 32,572 | 33,200 | ||||||||||||||||
Pennsylvania | 9 | 1,332 | 11,926 | 11,987 | ||||||||||||||||
Ohio | 11 | 900 | 9,871 | 9,905 | ||||||||||||||||
Other | 33 | 876 | 27,741 | 28,908 | ||||||||||||||||
Total general obligations bonds | 227 | $ | 1,007 | $ | 223,010 | $ | 228,606 | |||||||||||||
The general obligation bonds are diversified across many issuers, with $5.0 million and $5.2 million being the largest exposure to a single issuer at December 31, 2013 and 2012, respectively. Accordingly, as of December 31, 2013 and 2012, the Company did not hold general obligation bonds of any single issuer, the aggregate book or market value of which exceeded 10% of the Company’s stockholders’ equity. Of the general obligation bonds in the Company’s portfolio, 96.4% have been rated by at least one nationally recognized statistical rating organization and 3.6% are unrated, based on the fair value as of December 31, 2013. Of the general obligation bonds in the Company’s portfolio, 94.3% have been rated by at least one nationally recognized statistical rating organization, 5.6% are unrated and 0.1% are insured by a below-investment-grade insurer without an underlying rating, based on the fair value as of December 31, 2012. | ||||||||||||||||||||
The amortized cost and fair values of the Company’s portfolio of revenue bonds are summarized in the following tables by the issuers’ state: | ||||||||||||||||||||
December 31, 2013: | ||||||||||||||||||||
Average Exposure | ||||||||||||||||||||
Number of | Per Issuer | Amortized | Fair | |||||||||||||||||
U.S. State | Issuers | (Fair Value) | Cost | Value | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois | 4 | $ | 1,780 | $ | 7,356 | $ | 7,121 | |||||||||||||
Indiana | 14 | 1,034 | 14,740 | 14,481 | ||||||||||||||||
Other | 30 | 930 | 28,122 | 27,911 | ||||||||||||||||
Total revenue bonds | 48 | $ | 1,032 | $ | 50,218 | $ | 49,513 | |||||||||||||
December 31, 2012: | ||||||||||||||||||||
Average Exposure | ||||||||||||||||||||
Number of | Per Issuer | Amortized | Fair | |||||||||||||||||
U.S. State | Issuers | (Fair Value) | Cost | Value | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois | 4 | $ | 1,961 | $ | 7,832 | $ | 7,842 | |||||||||||||
Indiana | 11 | 853 | 9,339 | 9,378 | ||||||||||||||||
Other | 34 | 1,014 | 34,169 | 34,462 | ||||||||||||||||
Total revenue bonds | 49 | $ | 1,055 | $ | 51,340 | $ | 51,682 | |||||||||||||
The revenue bonds are diversified across many issuers and revenue sources with $3.0 million and $3.5 million being the largest exposure to a single issuer at December 31, 2013 and 2012, respectively. Accordingly, as of December 31, 2013 and 2012, the Company did not hold revenue bonds of any single issuer, the aggregate book or market value of which exceeded 10% of the Company’s stockholders’ equity. All of the revenue bonds in the Company’s portfolio have been rated by at least one nationally recognized statistical rating organization. Some of the primary types of revenue bonds owned in the Company’s portfolio include: primary education or government building lease rentals secured by ad valorem taxes, utility systems secured by utility system net revenues, housing authorities secured by mortgage loans or principal receipts on mortgage loans, secondary education secured by student fees/tuitions, contracts subject to annual state appropriation, and pooled issuances (i.e. bond bank) consisting of multiple underlying municipal obligors. | ||||||||||||||||||||
Substantially all of the Company’s obligations of state and political subdivision securities are owned by Busey Bank, whose investment policy requires that state and political subdivision securities purchased be investment grade. Busey Bank’s investment policy also limits the amount of rated state and political subdivision securities to an aggregate 100% of the Bank’s Total Risk Based Capital at the time of purchase and an aggregate 15% of Total Risk Based Capital for unrated state and political subdivision securities issued by municipalities having taxing authority or located in counties/MSAs in which an office of the Bank is located. The investment policy states fixed income investments that are not OCC Type 1 securities (U.S. Treasuries, agencies, municipal government general obligation and for well-capitalized institutions, most municipal revenue bonds), should be analyzed prior to acquisition to determine that (1) the security has low risk of default by the obligor, and (2) the full and timely repayment of principal and interest is expected over the expected life of the investment. All securities in the Bank’s obligations of state and political subdivision securities portfolio are subject to such review. Factors that may be considered as part of ongoing monitoring of state and political subdivision securities include credit rating changes by nationally recognized statistical rating organizations, market valuations, third-party municipal credit analysis, which may include indicative information regarding the issuer’s capacity to pay, market and economic data and such other factors as are available and relevant to the security or the issuer such as its budgetary position and sources, strength and stability of taxes and/or other revenue. | ||||||||||||||||||||
As of December 31, 2013, the Company’s regular monitoring of its obligations of state and political subdivisions portfolio had not uncovered any facts or circumstances resulting in significantly different credit ratings than those assigned by a nationally recognized statistical rating organization. | ||||||||||||||||||||
Loans
Loans | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Loans | ' | |||||||||||||||||||
Loans | ' | |||||||||||||||||||
Note 4. Loans | ||||||||||||||||||||
Geographic distributions of loans by category were as follows: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Illinois | Florida | Indiana | Total | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Commercial | $ | 530,174 | $ | 20,536 | $ | 29,902 | $ | 580,612 | ||||||||||||
Commercial real estate | 800,568 | 160,255 | 131,450 | 1,092,273 | ||||||||||||||||
Real estate construction | 55,190 | 17,426 | 6,239 | 78,855 | ||||||||||||||||
Retail real estate | 419,801 | 103,104 | 11,588 | 534,493 | ||||||||||||||||
Retail other | 8,422 | 552 | 93 | 9,067 | ||||||||||||||||
Total | $ | 1,814,155 | $ | 301,873 | $ | 179,272 | $ | 2,295,300 | ||||||||||||
Less held for sale(1) | 13,840 | |||||||||||||||||||
$ | 2,281,460 | |||||||||||||||||||
Less allowance for loan losses | 47,567 | |||||||||||||||||||
Net loans | $ | 2,233,893 | ||||||||||||||||||
(1) Loans held for sale are included in retail real estate. | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Illinois | Florida | Indiana | Total | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Commercial | $ | 399,300 | $ | 10,861 | $ | 23,527 | $ | 433,688 | ||||||||||||
Commercial real estate | 777,752 | 138,170 | 65,210 | 981,132 | ||||||||||||||||
Real estate construction | 67,152 | 15,972 | 2,977 | 86,101 | ||||||||||||||||
Retail real estate | 435,911 | 112,052 | 11,873 | 559,836 | ||||||||||||||||
Retail other | 11,831 | 409 | 113 | 12,353 | ||||||||||||||||
Total | $ | 1,691,946 | $ | 277,464 | $ | 103,700 | $ | 2,073,110 | ||||||||||||
Less held for sale(1) | 40,003 | |||||||||||||||||||
$ | 2,033,107 | |||||||||||||||||||
Less allowance for loan losses | 48,012 | |||||||||||||||||||
Net loans | $ | 1,985,095 | ||||||||||||||||||
(1) Loans held for sale are included in retail real estate. | ||||||||||||||||||||
Net deferred loan origination costs included in the tables above was insignificant as of December 31, 2013 and $0.8 million as of December 31, 2012. | ||||||||||||||||||||
The Company believes that sound loans are a necessary and desirable means of employing funds available for investment. Recognizing the Company’s obligations to its stockholders, depositors, and to the communities it serves, authorized personnel are expected to seek to develop and make sound, profitable loans that resources permit and that opportunity affords. The Company maintains lending policies and procedures designed to focus lending efforts on the types, locations and duration of loans most appropriate for its business model and markets. While not specifically limited, the Company attempts to focus its lending on short to intermediate-term (0-7 years) loans in geographies within 125 miles of its lending offices. The Company attempts to utilize government assisted lending programs, such as the Small Business Administration and United States Department of Agriculture lending programs, when prudent. Generally, loans are collateralized by assets, primarily real estate, of the borrowers and guaranteed by individuals. The loans are expected to be repaid primarily from cash flows of the borrowers, or from proceeds from the sale of selected assets of the borrowers. | ||||||||||||||||||||
Management reviews and approves the Company’s lending policies and procedures on a routine basis. Management routinely (at least quarterly) reviews the Company’s allowance for loan losses and reports related to loan production, loan quality, concentrations of credit, loan delinquencies and non-performing and potential problem loans. The Company’s underwriting standards are designed to encourage relationship banking rather than transactional banking. Relationship banking implies a primary banking relationship with the borrower that includes, at a minimum, an active deposit banking relationship in addition to the lending relationship. The integrity and character of the borrower are significant factors in the Company’s loan underwriting. As a part of underwriting, tangible positive or negative evidence of the borrower’s integrity and character are sought out. Additional significant underwriting factors beyond location, duration, a sound and profitable cash flow basis and the borrower’s character are the quality of the borrower’s financial history, the liquidity of the underlying collateral and the reliability of the valuation of the underlying collateral. | ||||||||||||||||||||
Total borrowing relationships, including direct and indirect debt, are generally limited to $20 million, which is significantly less than the Company’s regulatory lending limit. Borrowing relationships exceeding $20 million are reviewed by the Company’s board of directors at least annually and more frequently by management. At no time is a borrower’s total borrowing relationship permitted to exceed the Company’s regulatory lending limit. Loans to related parties, including executive officers and the Company’s various directorates, are reviewed for compliance with regulatory guidelines and by the Company’s board of directors at least annually. | ||||||||||||||||||||
The Company maintains an independent loan review department that reviews the loans for compliance with the Company’s loan policy on a periodic basis. In addition to compliance with this policy, the loan review process reviews the risk assessments made by the Company’s credit department, lenders and loan committees. Results of these reviews are presented to management and the audit committee at least quarterly. | ||||||||||||||||||||
The Company’s lending can be summarized into five primary areas: commercial loans, commercial real estate loans, real estate construction loans, retail real estate loans, and retail other loans. The significant majority of the lending activity occurs in the Company’s Illinois and Indiana markets, with the remainder in the Florida market. Due to the small scale of the Indiana loan portfolio and its geographical proximity to the Illinois portfolio, the Company believes that quantitative or qualitative segregation between Illinois and Indiana is not material or warranted. | ||||||||||||||||||||
Commercial Loans | ||||||||||||||||||||
Commercial loans typically comprise working capital loans or business expansion loans, including loans for asset purchases and other business loans. Commercial loans will generally be guaranteed in full or a significant amount by the primary owners of the business. Commercial loans are made based primarily on the historical and projected cash flow of the underlying borrower and secondarily on the underlying assets pledged as collateral by the borrower. The cash flows of the underlying borrower, however, may not perform consistently with historical or projected information. Further, the collateral securing loans may fluctuate in value due to individual economic or other factors. The Company has established minimum standards and underwriting guidelines for all commercial loan types. | ||||||||||||||||||||
Commercial Real Estate Loans | ||||||||||||||||||||
The Company is primarily located in markets with significant academic presence. The academic presence in addition to the commercial environment provides for the majority of the Company’s commercial lending opportunities to be commercial real estate related, including multi-unit housing. As the majority of the Company’s loan portfolio is within the commercial real estate class, the Company’s goal is to maintain a high quality, geographically diverse portfolio of commercial real estate loans. Commercial real estate loans are subject to underwriting standards and guidelines similar to commercial loans. Commercial real estate loans will generally be guaranteed in full or a significant amount by the primary owners of the business. The repayment of these loans is primarily dependent on the cash flows of the underlying property. However, the commercial real estate loan generally must be supported by an adequate underlying collateral value. The performance and the value of the underlying property may be adversely affected by economic factors or geographical and/or industry specific factors. These loans are subject to other industry guidelines that are closely monitored by the Company. | ||||||||||||||||||||
Real Estate Construction Loans | ||||||||||||||||||||
Real estate construction loans are typically commercial in nature. The loan proceeds are controlled by the Company and distributed for the improvement of real estate in which the Company holds a mortgage. Real estate construction loans will generally be guaranteed in full or a significant amount by the developer or primary owners of the business. These loans are subject to underwriting standards and guidelines similar to commercial loans. The loan generally must be supported by an adequate “as completed” value of the underlying project. In addition to the underlying project, the financial history of the developer and business owners weighs significantly in determining approval. The repayment of these loans is typically through permanent financing following completion of the construction. Real estate construction loans are inherently more risky than loans on completed properties as the unimproved nature and the financial risks of construction significantly enhance the risks of commercial real estate loans. These loans are closely monitored and subject to other industry guidelines. | ||||||||||||||||||||
Retail Real Estate Loans | ||||||||||||||||||||
Retail real estate loans are comprised of direct consumer loans that include residential real estate, residential real estate construction loans, home equity lines of credit and home equity loans. The Company sells substantially all of its long-term (over 5 years) retail real estate loans to secondary market purchasers. The Company does retain retail real estate loans having terms typically five years or less. As retail real estate loan underwriting is subject to specific regulations, the Company typically underwrites its retail real estate loans to conform to widely accepted standards. Several factors are considered in underwriting including the value of the underlying real estate and the debt to income and credit history of the borrower. | ||||||||||||||||||||
Retail Other Loans | ||||||||||||||||||||
Retail other loans consist of installment loans to individuals, primarily automotive loans. These loans are centrally underwritten utilizing the borrower’s financial history, including the Fair Isaac Corporation (“FICO”) credit scoring and information as to the underlying collateral. Repayment is expected from the cash flow of the borrower. | ||||||||||||||||||||
The Company utilizes a loan grading scale to assign a risk grade to all of its loans. Loans are graded on a scale of 1 through 10 with grades 2, 4 & 5 unused. A description of the general characteristics of the grades is as follows: | ||||||||||||||||||||
· Grades 1, 3, 6 — These grades include loans which are all considered strong credits, with grade 1 being investment or near investment grade. A grade 3 loan is comprised of borrowers that exhibit credit fundamentals that exceed industry standards and loan policy guidelines. A grade 6 loan is comprised of borrowers that exhibit acceptable credit fundamentals. | ||||||||||||||||||||
· Grade 7- This grade includes loans on management’s “Watch List” and is intended to be utilized on a temporary basis for a pass grade borrower where a significant risk-modifying action is anticipated in the near future. | ||||||||||||||||||||
· Grade 8- This grade is for “Other Assets Especially Mentioned” loans that have potential weaknesses which may, if not checked or corrected, weaken the asset or inadequately protect the Company’s credit position at some future date. | ||||||||||||||||||||
· Grade 9- This grade includes “Substandard” loans, in accordance with regulatory guidelines, for which the accrual of interest has not been stopped. Assets so classified must have well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. | ||||||||||||||||||||
· Grade 10- This grade includes “Doubtful” loans that have all the characteristics of a substandard loan with additional factors that make collection in full highly questionable and improbable. Such loans are placed on non-accrual status and may be dependent on collateral having a value that is difficult to determine. | ||||||||||||||||||||
All loans are graded at the inception of the loan. All commercial and commercial real estate loans above $0.5 million with a grading of 7 are reviewed annually and grade changes are made as necessary. All real estate construction loans above $0.5 million, regardless of the grade, are reviewed annually and grade changes are made as necessary. Interim grade reviews may take place if circumstances of the borrower warrant a more timely review. All loans above $0.5 million which are graded 8 are reviewed quarterly. Further, all loans graded 9 or 10 are reviewed at least quarterly. | ||||||||||||||||||||
Loans in the highest grades, represented by grades 1, 3, 6 and 7, totaled $2.1 billion at December 31, 2013 and grew by $314.0 million from $1.8 billion at December 31, 2012. Loans in the lowest grades, represented by grades 8, 9 and 10, totaled $161.9 million at December 31, 2013 and declined by $66.2 million from $228.1 million at December 31, 2012. The positive change in mix of loan grades began in 2012 and suggests a declining level of overall risk in the total loan portfolio. | ||||||||||||||||||||
The following table presents weighted average risk grades segregated by class of loans (excluding held-for-sale, non- posted and clearings) and geography: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Weighted Avg. | Grades | Grade | Grade | Grade | Grade | |||||||||||||||
Risk Grade | 1,3,6 | 7 | 8 | 9 | 10 | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | 4.66 | $ | 487,587 | $ | 46,992 | $ | 15,986 | $ | 8,536 | $ | 975 | |||||||||
Commercial real estate | 5.55 | 799,117 | 79,371 | 19,327 | 29,606 | 4,597 | ||||||||||||||
Real estate construction | 7.11 | 21,585 | 16,376 | 11,920 | 7,686 | 3,862 | ||||||||||||||
Retail real estate | 3.53 | 393,299 | 9,285 | 5,392 | 4,408 | 3,936 | ||||||||||||||
Retail other | 2.64 | 8,451 | 60 | — | 4 | — | ||||||||||||||
Total Illinois/Indiana | $ | 1,710,039 | $ | 152,084 | $ | 52,625 | $ | 50,240 | $ | 13,370 | ||||||||||
Florida | ||||||||||||||||||||
Commercial | 5.89 | $ | 16,460 | $ | 174 | $ | 3,218 | $ | 684 | $ | — | |||||||||
Commercial real estate | 6.02 | 116,741 | 16,470 | 11,250 | 12,721 | 3,073 | ||||||||||||||
Real estate construction | 6.64 | 7,886 | 7,961 | 743 | 836 | — | ||||||||||||||
Retail real estate | 3.85 | 77,116 | 12,052 | 9,417 | 3,050 | 721 | ||||||||||||||
Retail other | 1.72 | 552 | — | — | — | — | ||||||||||||||
Total Florida | $ | 218,755 | $ | 36,657 | $ | 24,628 | $ | 17,291 | $ | 3,794 | ||||||||||
Total | $ | 1,928,794 | $ | 188,741 | $ | 77,253 | $ | 67,531 | $ | 17,164 | ||||||||||
December 31, 2012 | ||||||||||||||||||||
Weighted Avg. | Grades | Grade | Grade | Grade | Grade | |||||||||||||||
Risk Grade | 1,3,6 | 7 | 8 | 9 | 10 | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | 4.68 | $ | 346,536 | $ | 46,201 | $ | 12,374 | $ | 15,677 | $ | 2,039 | |||||||||
Commercial real estate | 5.53 | 644,695 | 110,012 | 50,305 | 28,655 | 9,295 | ||||||||||||||
Real estate construction | 7.21 | 30,710 | 7,809 | 14,162 | 14,084 | 3,364 | ||||||||||||||
Retail real estate | 3.62 | 385,949 | 6,729 | 7,806 | 5,874 | 2,855 | ||||||||||||||
Retail other | 3.34 | 11,563 | 372 | — | 9 | — | ||||||||||||||
Total Illinois/Indiana | $ | 1,419,453 | $ | 171,123 | $ | 84,647 | $ | 64,299 | $ | 17,553 | ||||||||||
Florida | ||||||||||||||||||||
Commercial | 5.91 | $ | 6,359 | $ | 3,544 | $ | 162 | $ | 796 | $ | — | |||||||||
Commercial real estate | 6.36 | 80,232 | 20,667 | 13,238 | 19,279 | 4,754 | ||||||||||||||
Real estate construction | 6.97 | 4,137 | 7,721 | 3,172 | 942 | — | ||||||||||||||
Retail real estate | 3.98 | 83,578 | 6,369 | 13,225 | 3,265 | 2,797 | ||||||||||||||
Retail other | 2.8 | 391 | — | 18 | — | — | ||||||||||||||
Total Florida | $ | 174,697 | $ | 38,301 | $ | 29,815 | $ | 24,282 | $ | 7,551 | ||||||||||
Total | $ | 1,594,150 | $ | 209,424 | $ | 114,462 | $ | 88,581 | $ | 25,104 | ||||||||||
Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of the principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | ||||||||||||||||||||
An age analysis of past due loans still accruing and non-accrual loans is as follows: | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Loans past due, still accruing | Non-accrual | |||||||||||||||||||
30-59 Days | 60-89 Days | 90+Days | Loans | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | $ | 906 | $ | 279 | $ | 92 | $ | 975 | ||||||||||||
Commercial real estate | 567 | 3,736 | — | 4,597 | ||||||||||||||||
Real estate construction | — | — | — | 3,862 | ||||||||||||||||
Retail real estate | 483 | 123 | 103 | 3,936 | ||||||||||||||||
Retail other | 20 | — | — | — | ||||||||||||||||
Total Illinois/Indiana | $ | 1,976 | $ | 4,138 | $ | 195 | $ | 13,370 | ||||||||||||
Florida | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Commercial real estate | — | — | — | 3,073 | ||||||||||||||||
Real estate construction | — | — | — | — | ||||||||||||||||
Retail real estate | — | — | — | 721 | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Florida | $ | — | $ | — | $ | — | $ | 3,794 | ||||||||||||
Total | $ | 1,976 | $ | 4,138 | $ | 195 | $ | 17,164 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||
Loans past due, still accruing | Non-accrual | |||||||||||||||||||
30-59 Days | 60-89 Days | 90+Days | Loans | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | $ | 111 | $ | 80 | $ | 19 | $ | 2,039 | ||||||||||||
Commercial real estate | 216 | 59 | 139 | 9,295 | ||||||||||||||||
Real estate construction | — | — | — | 3,364 | ||||||||||||||||
Retail real estate | 1,154 | 294 | 46 | 2,855 | ||||||||||||||||
Retail other | 2 | 2 | — | — | ||||||||||||||||
Total Illinois/Indiana | $ | 1,483 | $ | 435 | $ | 204 | $ | 17,553 | ||||||||||||
Florida | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Commercial real estate | — | — | — | 4,754 | ||||||||||||||||
Real estate construction | — | — | — | — | ||||||||||||||||
Retail real estate | 364 | — | 52 | 2,797 | ||||||||||||||||
Retail other | — | 3 | — | — | ||||||||||||||||
Total Florida | $ | 364 | $ | 3 | $ | 52 | $ | 7,551 | ||||||||||||
Total | $ | 1,847 | $ | 438 | $ | 256 | $ | 25,104 | ||||||||||||
A loan is impaired when, based on current information and events, it is probable the Company will be unable to collect scheduled principal and interest payments when due according to the terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The following loans are assessed for impairment by the Company: loans 60 days or more past due and over $0.25 million, loans graded 8 over $0.5 million and loans graded 9 or below. | ||||||||||||||||||||
Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogenous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment disclosures unless such loans are the subject of a restructuring agreement. | ||||||||||||||||||||
The Company actively seeks to reduce its investment in impaired loans. The primary tools to work through impaired loans are settlement with the borrowers or guarantors, foreclosure of the underlying collateral, loan sales to outside parties or restructuring. During the years ended December 31, 2013 and 2012, the Company sold problem loans from its portfolio, net of charge-offs, of $7.6 million and $22.1 million, respectively. | ||||||||||||||||||||
The gross interest income that would have been recorded in the years ended December 31, 2013, 2012 and 2011 if impaired loans had been current in accordance with their original terms was $1.3 million, $3.4 million, and $6.0 million, respectively. The amount of interest collected on those loans and recognized on a cash basis that was included in interest income was insignificant in 2013 and 2012 and $1.0 million for the year ended December 31, 2011. | ||||||||||||||||||||
The Company’s loan portfolio includes certain loans that have been modified in a troubled debt restructuring (“TDR”), where concessions have been granted to borrowers who have experienced financial difficulties. The Company will restructure loans for its customers who appear to be able to meet the terms of their loan over the long term, but who may be unable to meet the terms of the loan in the near term due to individual circumstances. | ||||||||||||||||||||
The Company considers the customer’s past performance, previous and current credit history, the individual circumstances surrounding the current difficulties and the customer’s plan to meet the terms of the loan in the future prior to restructuring the terms of the loan. Generally, all five primary areas of lending are restructured through short-term interest rate relief, short-term principal payment relief, short-term principal and interest payment relief, or forbearance (debt forgiveness). Once a restructured loan has gone 90+ days past due or is placed on non-accrual status, it is included in the non-performing loan totals. A summary of restructured loans as of December 31, 2013 and December 31, 2012 is as follows: | ||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Restructured loans: | ||||||||||||||||||||
In compliance with modified terms | $ | 11,511 | $ | 22,023 | ||||||||||||||||
30 — 89 days past due | 380 | 28 | ||||||||||||||||||
Included in non-performing loans | 5,919 | 6,458 | ||||||||||||||||||
Total | $ | 17,810 | $ | 28,509 | ||||||||||||||||
All TDRs are considered to be impaired for purposes of assessing the adequacy of the allowance for loan losses and for financial reporting purposes. When the Company modifies a loan in a TDR, it evaluates any possible impairment similar to other impaired loans based on present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. If the Company determines that the value of the TDR is less than the recorded investment in the loan, impairment is recognized through an allowance estimate in the period of the modification and in periods subsequent to the modification. | ||||||||||||||||||||
The following table shows performing loans, segregated by class and geography, modified as TDRs that occurred during the three and twelve months ended December 31, 2013 and 2012: | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, 2013 | December 31, 2013 | |||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||
contracts | investment | contracts | investment | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | 1 | $ | 98 | 1 | $ | 98 | ||||||||||||||
Commercial real estate | 1 | 246 | 2 | 465 | ||||||||||||||||
Real estate construction | — | — | — | — | ||||||||||||||||
Retail real estate | 1 | 16 | 1 | 16 | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Illinois/Indiana | 3 | $ | 360 | 4 | $ | 579 | ||||||||||||||
Florida | ||||||||||||||||||||
Commercial | — | $ | — | — | $ | — | ||||||||||||||
Commercial real estate | — | — | 1 | 87 | ||||||||||||||||
Real estate construction | — | — | — | — | ||||||||||||||||
Retail real estate | — | — | — | — | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Florida | — | $ | — | 1 | $ | 87 | ||||||||||||||
Total | 3 | $ | 360 | 5 | $ | 666 | ||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, 2012 | December 31, 2012 | |||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||
contracts | investment | contracts | investment | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | 1 | $ | 752 | 4 | $ | 2,032 | ||||||||||||||
Commercial real estate | 1 | 600 | 2 | 2,669 | ||||||||||||||||
Real estate construction | — | — | 2 | 3,029 | ||||||||||||||||
Retail real estate | — | — | 9 | 1,476 | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Illinois/Indiana | 2 | $ | 1,352 | 17 | $ | 9,206 | ||||||||||||||
Florida | ||||||||||||||||||||
Commercial | — | $ | — | — | $ | — | ||||||||||||||
Commercial real estate | 1 | 571 | 1 | 571 | ||||||||||||||||
Real estate construction | — | — | — | — | ||||||||||||||||
Retail real estate | 1 | 178 | 3 | 880 | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Florida | 2 | $ | 749 | 4 | $ | 1,451 | ||||||||||||||
Total | 4 | $ | 2,101 | 21 | $ | 10,657 | ||||||||||||||
The commercial TDR for the three and twelve months ended December 31, 2013 consisted of a short-term principal payment relief modification. The commercial real estate TDR for the three months ended December 31, 2013 consisted of a modification for short-term principal payment relief. The commercial real estate TDRs for the twelve months ended December 31, 2013 consisted of two modifications for short-term principal payment relief totaling $0.5 million and one modification for short-term interest rate relief totaling $0.1 million. The retail real estate TDR for the three and twelve months ended December 31, 2013 consisted of a modification for short-term interest rate relief. | ||||||||||||||||||||
The commercial TDRs for the three and twelve months ended December 31, 2012 consisted of short-term principal payment relief modifications. The commercial real estate TDRs for the three months ended December 31, 2012 consisted of two modifications for short-term principal payment relief. The commercial real estate TDRs for the twelve months ended December 31, 2012 consisted of one modification for short-term interest rate relief totaling $2.0 million and two modifications for short-term principal payment relief totaling $1.2 million. The real estate construction TDRs for the twelve months ended December 31, 2012 were a short-term principal payment relief modification totaling $0.2 million and a modification for a forbearance agreement totaling $2.8 million. The retail real estate TDR for the three months ended December 31, 2012 consisted of a modification for short-term interest rate relief. The retail real estate TDRs for the twelve months ended December 31, 2012 consisted of four modification for short-term interest rate relief totaling $1.0 million and eight modifications for short-term principal payment relief totaling $1.4 million. | ||||||||||||||||||||
The gross interest income that would have been recorded in the three and twelve months ended December 31, 2013 and 2012 if performing TDRs had been in accordance with their original terms instead of modified terms was insignificant. | ||||||||||||||||||||
TDRs that were classified as non-performing and had payment defaults (a default occurs when a loan is 90 days or more past due or transferred to non-accrual), segregated by class and geography, are shown below: | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, 2013 | December 31, 2013 | |||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||
contracts | investment | contracts | investment | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | — | $ | — | — | $ | — | ||||||||||||||
Commercial real estate | — | — | 1 | 1,650 | ||||||||||||||||
Real estate construction | — | — | 1 | 222 | ||||||||||||||||
Retail real estate | — | — | 1 | 548 | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Illinois/Indiana | — | $ | — | 3 | $ | 2,420 | ||||||||||||||
Florida | ||||||||||||||||||||
Commercial | — | $ | — | — | $ | — | ||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||
Real estate construction | — | — | — | — | ||||||||||||||||
Retail real estate | — | — | — | — | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Florida | — | $ | — | — | $ | — | ||||||||||||||
Total | — | $ | — | 3 | $ | 2,420 | ||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, 2012 | December 31, 2012 | |||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||
contracts | investment | contracts | investment | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | — | $ | — | 5 | $ | 309 | ||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||
Real estate construction | — | — | — | — | ||||||||||||||||
Retail real estate | 1 | 232 | 1 | 232 | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Illinois/Indiana | 1 | $ | 232 | 6 | $ | 541 | ||||||||||||||
Florida | ||||||||||||||||||||
Commercial | — | $ | — | — | $ | — | ||||||||||||||
Commercial real estate | — | — | 3 | 1,287 | ||||||||||||||||
Real estate construction | — | — | — | — | ||||||||||||||||
Retail real estate | 1 | 142 | 4 | 778 | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Florida | 1 | $ | 142 | 7 | $ | 2,065 | ||||||||||||||
Total | 2 | $ | 374 | 13 | $ | 2,606 | ||||||||||||||
The following tables provide details of impaired loans, segregated by category and geography. The unpaid contractual principal balance represents the recorded balance prior to any partial charge-offs. The recorded investment represents customer balances net of any partial charge-offs recognized on the loan. The average recorded investment is calculated using the most recent four quarters. | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Unpaid | Recorded | |||||||||||||||||||
Contractual | Investment | Recorded | Total | Average | ||||||||||||||||
Principal | with No | Investment | Recorded | Related | Recorded | |||||||||||||||
Balance | Allowance | with Allowance | Investment | Allowance | Investment | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | $ | 2,825 | $ | 1,684 | $ | 602 | $ | 2,286 | $ | 485 | $ | 4,169 | ||||||||
Commercial real estate | 8,866 | 3,671 | 3,740 | 7,411 | 1,977 | 10,335 | ||||||||||||||
Real estate construction | 4,932 | 2,292 | 1,570 | 3,862 | 468 | 5,889 | ||||||||||||||
Retail real estate | 5,583 | 3,267 | 2,010 | 5,277 | 604 | 5,296 | ||||||||||||||
Retail other | — | — | — | — | — | — | ||||||||||||||
Total Illinois/Indiana | $ | 22,206 | $ | 10,914 | $ | 7,922 | $ | 18,836 | $ | 3,534 | $ | 25,689 | ||||||||
Florida | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Commercial real estate | 7,108 | 3,946 | 1,319 | 5,265 | 416 | 6,662 | ||||||||||||||
Real estate construction | 417 | 417 | — | 417 | — | 1,294 | ||||||||||||||
Retail real estate | 10,346 | 9,005 | 537 | 9,542 | 337 | 11,079 | ||||||||||||||
Retail other | — | — | — | — | — | — | ||||||||||||||
Total Florida | $ | 17,871 | $ | 13,368 | $ | 1,856 | $ | 15,224 | $ | 753 | $ | 19,035 | ||||||||
Total | $ | 40,077 | $ | 24,282 | $ | 9,778 | $ | 34,060 | $ | 4,287 | $ | 44,724 | ||||||||
December 31, 2012 | ||||||||||||||||||||
Unpaid | Recorded | |||||||||||||||||||
Contractual | Investment | Recorded | Total | Average | ||||||||||||||||
Principal | with No | Investment | Recorded | Related | Recorded | |||||||||||||||
Balance | Allowance | with Allowance | Investment | Allowance | Investment | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | $ | 11,557 | $ | 7,214 | $ | 265 | $ | 7,479 | $ | 265 | $ | 10,109 | ||||||||
Commercial real estate | 17,656 | 12,020 | 1,288 | 13,308 | 634 | 14,607 | ||||||||||||||
Real estate construction | 6,851 | 6,394 | — | 6,394 | — | 8,625 | ||||||||||||||
Retail real estate | 6,251 | 4,666 | 530 | 5,196 | 140 | 5,206 | ||||||||||||||
Retail other | — | — | — | — | — | 24 | ||||||||||||||
Total Illinois/Indiana | $ | 42,315 | $ | 30,294 | $ | 2,083 | $ | 32,377 | $ | 1,039 | $ | 38,571 | ||||||||
Florida | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 271 | ||||||||
Commercial real estate | 9,533 | 5,988 | 585 | 6,573 | 235 | 6,506 | ||||||||||||||
Real estate construction | 2,597 | 2,597 | — | 2,597 | — | 3,989 | ||||||||||||||
Retail real estate | 16,518 | 12,673 | 1,373 | 14,046 | 483 | 15,254 | ||||||||||||||
Retail other | — | — | — | — | — | — | ||||||||||||||
Total Florida | $ | 28,648 | $ | 21,258 | $ | 1,958 | $ | 23,216 | $ | 718 | $ | 26,020 | ||||||||
Total | $ | 70,963 | $ | 51,552 | $ | 4,041 | $ | 55,593 | $ | 1,757 | $ | 64,591 | ||||||||
Management’s opinion as to the ultimate collectability of loans is subject to estimates regarding future cash flows from operations and the value of property, real and personal, pledged as collateral. These estimates are affected by changing economic conditions and the economic prospects of borrowers. | ||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||
The allowance for loan losses represents an estimate of the amount of losses believed inherent in the Company’s loan portfolio at the balance sheet date. The allowance for loan losses is evaluated geographically, by class of loans. The allowance calculation involves a high degree of estimation that management attempts to mitigate through the use of objective historical data where available. Loan losses are charged against the allowance for loan losses when management believes the uncollectibility of the loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Overall, the Company believes the allowance methodology is consistent with prior periods and the balance was adequate to cover the estimated losses in the Company’s loan portfolio at December 31, 2013 and December 31, 2012. | ||||||||||||||||||||
The general portion of the Company’s allowance contains two components: (i) a component for historical loss ratios, and (ii) a component for adversely graded loans. The historical loss ratio component is an annualized loss rate calculated using a sum-of-years digits weighted 20 quarter historical average. | ||||||||||||||||||||
The Company’s component for adversely graded loans attempts to quantify the additional risk of loss inherent in the grade 8 and grade 9 portfolios. The grade 9 portfolio has an additional allocation placed on those loans determined by a one-year charge-off percentage for the respective loan type/geography. The minimum additional reserve on a grade 9 loan was 3.00% as of December 31, 2013 and 2012, which is an estimate of the additional loss inherent in these loan grades based upon a review of overall historical charge-offs. As of December 31, 2013, the Company believed this minimum reserve remained adequate. | ||||||||||||||||||||
Grade 8 loans have an additional allocation placed on them determined by the trend difference of the respective loan type/geography’s rolling 12 and 20 quarter historical loss trends. If the rolling 12 quarter average is higher (more current information) than the rolling 20 quarter average, the Company adds the additional amount to the allocation. The minimum additional amount for grade 8 loans was 1.00% as of December 31, 2013 and 2012, based upon a review of the differences between the rolling 12 and 20 quarter historical loss averages by region. As of December 31, 2013, the Company believed this minimum additional amount remained adequate. | ||||||||||||||||||||
The specific portion of the Company’s allowance relates to loans that are impaired, which includes non-performing loans, TDRs and other loans determined to be impaired. The impaired loans are subtracted from the general loans and are allocated specific reserves as discussed above. | ||||||||||||||||||||
Impaired loans are reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Collateral values are estimated using a combination of observable inputs, including recent appraisals discounted for collateral specific changes and current market conditions, and unobservable inputs based on customized discounting criteria. | ||||||||||||||||||||
The general quantitative allocation based upon historical charge off rates is adjusted for qualitative factors based on current general economic conditions and other qualitative risk factors both internal and external to the Company. In general, such valuation allowances are determined by evaluating, among other things: (i) Management & Staff; (ii) Loan Underwriting, Policy and Procedures; (iii) Internal/External Audit & Loan Review; (iv) Valuation of Underlying Collateral; (v) Macro and Local Economic Factor; (vi) Impact of Competition, Legal & Regulatory Issues; (vii) Nature and Volume of Loan Portfolio; (viii) Concentrations of Credit; (ix) Net Charge-Off Trend; and (x) Non-Accrual, Past Due and Classified Trend. Management evaluates the degree of risk that each one of these components has on the quality of the loan portfolio on a quarterly basis. Based on each component’s risk factor, a qualitative adjustment to the reserve may be applied to the appropriate loan categories. | ||||||||||||||||||||
During the fourth quarter of 2013, the Company adjusted Illinois/Indiana and Florida qualitative factors relating to Management & Staff, Loan Underwriting, Policy and Procedures, Impact of Competition, Legal & Regulatory Issues, Nature and Volume of Loan Portfolio and Net Charge-Off Trend. Adjustments to increase qualitative factors were made to offset decreasing quantitative factors and represent managements evaluation of risk in a period of loan growth and economic stability. The adjustment of the qualitative factors increased our allowance requirements by $5.0 million at December 31, 2013 compared to the method used for September 30, 2013. The Company will continue to monitor its qualitative factors on a quarterly basis. | ||||||||||||||||||||
Changes in the allowance for loan losses were as follows: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Balance, beginning of year | $ | 48,012 | $ | 58,506 | $ | 76,038 | ||||||||||||||
Provision for loan losses | 7,500 | 16,500 | 20,000 | |||||||||||||||||
Recoveries applicable to loan balances previously charged-off | 2,724 | 3,069 | 7,881 | |||||||||||||||||
Loan balances charged-off | (10,669 | ) | (30,063 | ) | (45,413 | ) | ||||||||||||||
Balance, end of year | $ | 47,567 | $ | 48,012 | $ | 58,506 | ||||||||||||||
The following table details activity on the allowance for loan losses. Allocation of a portion of the allowance to one category does not preclude its availability to absorb losses in other categories. | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Commercial | Real Estate | Retail Real | ||||||||||||||||||
Commercial | Real Estate | Construction | Estate | Retail Other | Total | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Beginning balance | $ | 6,597 | $ | 15,023 | $ | 2,527 | $ | 8,110 | $ | 322 | $ | 32,579 | ||||||||
Provision for loan loss | 2,681 | 2,143 | 847 | 616 | 63 | 6,350 | ||||||||||||||
Charged-off | (964 | ) | (1,361 | ) | (1,212 | ) | (2,187 | ) | (511 | ) | (6,235 | ) | ||||||||
Recoveries | 138 | 574 | 378 | 323 | 342 | 1,755 | ||||||||||||||
Ending Balance | $ | 8,452 | $ | 16,379 | $ | 2,540 | $ | 6,862 | $ | 216 | $ | 34,449 | ||||||||
Florida | ||||||||||||||||||||
Beginning balance | $ | 1,437 | $ | 6,062 | $ | 2,315 | $ | 5,614 | $ | 5 | $ | 15,433 | ||||||||
Provision for loan loss | 414 | 2,225 | (1,419 | ) | (51 | ) | (19 | ) | 1,150 | |||||||||||
Charged-off | — | (2,543 | ) | (56 | ) | (1,828 | ) | (7 | ) | (4,434 | ) | |||||||||
Recoveries | 75 | (11 | ) | 328 | 552 | 25 | 969 | |||||||||||||
Ending Balance | $ | 1,926 | $ | 5,733 | $ | 1,168 | $ | 4,287 | $ | 4 | $ | 13,118 | ||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Commercial | Real Estate | Retail Real | ||||||||||||||||||
Commercial | Real Estate | Construction | Estate | Retail Other | Total | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Beginning balance | $ | 9,143 | $ | 18,605 | $ | 4,352 | $ | 6,473 | $ | 464 | $ | 39,037 | ||||||||
Provision for loan loss | 1,428 | 10,058 | (270 | ) | 4,397 | 278 | 15,891 | |||||||||||||
Charged-off | (4,176 | ) | (14,016 | ) | (1,883 | ) | (3,264 | ) | (636 | ) | (23,975 | ) | ||||||||
Recoveries | 202 | 376 | 328 | 504 | 216 | 1,626 | ||||||||||||||
Ending Balance | $ | 6,597 | $ | 15,023 | $ | 2,527 | $ | 8,110 | $ | 322 | $ | 32,579 | ||||||||
Florida | ||||||||||||||||||||
Beginning balance | $ | 1,939 | $ | 8,413 | $ | 2,936 | $ | 6,160 | $ | 21 | $ | 19,469 | ||||||||
Provision for loan loss | (811 | ) | (619 | ) | (555 | ) | 2,626 | (32 | ) | 609 | ||||||||||
Charged-off | (246 | ) | (1,858 | ) | (336 | ) | (3,646 | ) | (2 | ) | (6,088 | ) | ||||||||
Recoveries | 555 | 126 | 270 | 474 | 18 | 1,443 | ||||||||||||||
Ending Balance | $ | 1,437 | $ | 6,062 | $ | 2,315 | $ | 5,614 | $ | 5 | $ | 15,433 | ||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||
Commercial | Commercial | Real Estate | Retail Real | Retail Other | Total | |||||||||||||||
Real Estate | Construction | Estate | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Beginning balance | $ | 11,827 | $ | 19,504 | $ | 7,186 | $ | 5,199 | $ | 2,473 | $ | 46,189 | ||||||||
Provision for loan loss | 2,565 | 9,604 | 1,478 | 4,463 | (2,743 | ) | 15,367 | |||||||||||||
Charged-off | (6,779 | ) | (10,643 | ) | (4,983 | ) | (3,973 | ) | (634 | ) | (27,012 | ) | ||||||||
Recoveries | 1,530 | 140 | 671 | 784 | 1,368 | 4,493 | ||||||||||||||
Ending Balance | $ | 9,143 | $ | 18,605 | $ | 4,352 | $ | 6,473 | $ | 464 | $ | 39,037 | ||||||||
Florida | ||||||||||||||||||||
Beginning balance | $ | 2,013 | $ | 13,291 | $ | 4,717 | $ | 9,748 | $ | 80 | $ | 29,849 | ||||||||
Provision for loan loss | 3,841 | (2,130 | ) | 195 | 2,773 | (46 | ) | 4,633 | ||||||||||||
Charged-off | (3,947 | ) | (3,655 | ) | (2,573 | ) | (8,192 | ) | (34 | ) | (18,401 | ) | ||||||||
Recoveries | 32 | 907 | 597 | 1,831 | 21 | 3,388 | ||||||||||||||
Ending Balance | $ | 1,939 | $ | 8,413 | $ | 2,936 | $ | 6,160 | $ | 21 | $ | 19,469 | ||||||||
The following table presents the allowance for loan losses and recorded investments in loans by category and geography: | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Commercial | Commercial | Real Estate | Retail Real | Retail Other | Total | |||||||||||||||
Real Estate | Construction | Estate | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Amount allocated to: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | 485 | $ | 1,977 | $ | 468 | $ | 604 | $ | — | $ | 3,534 | ||||||||
Loans collectively evaluated for impairment | 7,967 | 14,402 | 2,072 | 6,258 | 216 | 30,915 | ||||||||||||||
Ending Balance | $ | 8,452 | $ | 16,379 | $ | 2,540 | $ | 6,862 | $ | 216 | $ | 34,449 | ||||||||
Loans: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | 2,286 | $ | 7,411 | $ | 3,862 | $ | 5,277 | $ | — | $ | 18,836 | ||||||||
Loans collectively evaluated for impairment | 557,790 | 924,607 | 57,567 | 413,020 | 8,515 | 1,961,499 | ||||||||||||||
Ending Balance | $ | 560,076 | $ | 932,018 | $ | 61,429 | $ | 418,297 | $ | 8,515 | $ | 1,980,335 | ||||||||
Florida | ||||||||||||||||||||
Amount allocated to: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | — | $ | 416 | $ | — | $ | 337 | $ | — | $ | 753 | ||||||||
Loans collectively evaluated for impairment | 1,926 | 5,317 | 1,168 | 3,950 | 4 | 12,365 | ||||||||||||||
Ending Balance | $ | 1,926 | $ | 5,733 | $ | 1,168 | $ | 4,287 | $ | 4 | $ | 13,118 | ||||||||
Loans: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | — | $ | 5,265 | $ | 417 | $ | 9,542 | $ | — | $ | 15,224 | ||||||||
Loans collectively evaluated for impairment | 20,536 | 154,990 | 17,009 | 92,814 | 552 | 285,901 | ||||||||||||||
Ending Balance | $ | 20,536 | $ | 160,255 | $ | 17,426 | $ | 102,356 | $ | 552 | $ | 301,125 | ||||||||
As of December 31, 2012 | ||||||||||||||||||||
Commercial | Commercial | Real Estate | Retail Real | Retail Other | Total | |||||||||||||||
Real Estate | Construction | Estate | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Amount allocated to: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | 265 | $ | 634 | $ | — | $ | 140 | $ | — | $ | 1,039 | ||||||||
Loans collectively evaluated for impairment | 6,332 | 14,389 | 2,527 | 7,970 | 322 | 31,540 | ||||||||||||||
Ending Balance | $ | 6,597 | $ | 15,023 | $ | 2,527 | $ | 8,110 | $ | 322 | $ | 32,579 | ||||||||
Loans: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | 7,479 | $ | 13,308 | $ | 6,394 | $ | 5,196 | $ | — | $ | 32,377 | ||||||||
Loans collectively evaluated for impairment | 415,348 | 829,654 | 63,735 | 404,867 | 11,944 | 1,725,548 | ||||||||||||||
Ending Balance | $ | 422,827 | $ | 842,962 | $ | 70,129 | $ | 410,063 | $ | 11,944 | $ | 1,757,925 | ||||||||
Florida | ||||||||||||||||||||
Amount allocated to: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | — | $ | 235 | $ | — | $ | 483 | $ | — | $ | 718 | ||||||||
Loans collectively evaluated for impairment | 1,437 | 5,827 | 2,315 | 5,131 | 5 | 14,715 | ||||||||||||||
Ending Balance | $ | 1,437 | $ | 6,062 | $ | 2,315 | $ | 5,614 | $ | 5 | $ | 15,433 | ||||||||
Loans: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | — | $ | 6,573 | $ | 2,597 | $ | 14,046 | $ | — | $ | 23,216 | ||||||||
Loans collectively evaluated for impairment | 10,861 | 131,597 | 13,375 | 95,724 | 409 | 251,966 | ||||||||||||||
Ending Balance | $ | 10,861 | $ | 138,170 | $ | 15,972 | $ | 109,770 | $ | 409 | $ | 275,182 | ||||||||
Loan_Servicing
Loan Servicing | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Loan Servicing | ' | ||||||||||
Loan Servicing | ' | ||||||||||
Note 5. Loan Servicing | |||||||||||
The unpaid principal balances of loans serviced by the Company for the benefit of others are not included in the accompanying Consolidated Balance Sheets. These unpaid principal balances were $1.44 billion and $1.34 billion as of December 31, 2013 and 2012, respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and collection and foreclosure processing. Loan servicing income is recorded on the accrual basis and includes servicing fees from investors and certain charges collected from borrowers, such as late payment fees, and is net of amortization of capitalized mortgage servicing rights. | |||||||||||
The balance of capitalized servicing rights included in other assets at December 31, 2013 and 2012, was $5.1 million and $5.3 million, respectively. The fair values of these servicing rights were $6.4 million and $8.6 million, respectively, at December 31, 2013 and 2012. The following summarizes mortgage servicing rights capitalized and amortized: | |||||||||||
For the Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(dollars in thousands) | |||||||||||
Mortgage servicing rights capitalized | $ | 2,490 | $ | 2,794 | $ | 2,741 | |||||
Mortgage servicing rights amortized | $ | 2,650 | $ | 2,972 | $ | 2,530 | |||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Premises and Equipment | ' | |||||||
Premises and Equipment | ' | |||||||
Note 6. Premises and Equipment | ||||||||
Premises and equipment are summarized as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(dollars in thousands) | ||||||||
Land and improvements | $ | 21,532 | $ | 22,732 | ||||
Buildings and improvements | 62,159 | 65,099 | ||||||
Furniture and equipment | 33,622 | 41,626 | ||||||
117,313 | 129,457 | |||||||
Less accumulated depreciation | 51,486 | 58,390 | ||||||
Total premises and equipment | $ | 65,827 | $ | 71,067 | ||||
Depreciation expense was $5.5 million, $5.4 million, and $5.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||
Note 7: Goodwill and Other Intangible Assets | |||||||||||
Other than goodwill, the Company does not have any other intangible assets that are not amortized. Accounting standards allow for goodwill to be tested for impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, then the reporting unit’s carrying value is compared to its fair value. | |||||||||||
The Company’s remaining goodwill is associated with the operations of Busey Wealth Management and FirsTech. Based upon interim impairment testing in the third quarter of 2009, the $208.2 million of goodwill associated with Busey Bank and the parent company was determined to be impaired and written off. | |||||||||||
Based on the impairment testing performed at December 31, 2013, Busey Wealth Management and FirsTech did not have indicators of potential impairment based on the estimated fair value of those operating segments. Busey Wealth Management and FirsTech have sustained quarterly and annual profits. However, it is possible we will evaluate our goodwill for impairment on a more frequent basis than annually. The evaluation may result in further impairment. | |||||||||||
There were no changes in the carrying amount of goodwill by operating segment during 2013 or 2012. The carrying amount of goodwill by operating segment, in thousands, at December 31, 2013 and 2012 is as follows: | |||||||||||
Goodwill: | |||||||||||
FirsTech | $ | 8,992 | |||||||||
Busey Wealth Management | 11,694 | ||||||||||
Total Goodwill | $ | 20,686 | |||||||||
Core deposit and customer relationship intangible assets are amortized on an accelerated or straight-line basis over the estimated period benefited up to 10 years. Other intangible asset disclosures are as follows: | |||||||||||
Balance at | Amortization | Balance at | |||||||||
December 31, | December 31, | ||||||||||
2012 | 2013 | ||||||||||
(dollars in thousands) | |||||||||||
Amortized intangible assets: | |||||||||||
Core deposit intangible assets | $ | 8,174 | $ | 2,050 | $ | 6,124 | |||||
Customer relationship intangible assets | 4,529 | 1,082 | 3,447 | ||||||||
$ | 12,703 | $ | 3,132 | $ | 9,571 | ||||||
Core deposit | Customer | ||||||||||
intangible | relationship | ||||||||||
intangible | |||||||||||
(dollars in thousands) | |||||||||||
As of December 31, 2013: | |||||||||||
Gross carrying amount | $ | 34,836 | $ | 11,320 | |||||||
Accumulated amortization | 28,712 | 7,873 | |||||||||
$ | 6,124 | $ | 3,447 | ||||||||
Estimated amortization expense: | |||||||||||
2014 | $ | 1,870 | $ | 1,014 | |||||||
2015 | 1,719 | 972 | |||||||||
2016 | 1,644 | 929 | |||||||||
2017 | 891 | 532 | |||||||||
$ | 6,124 | $ | 3,447 | ||||||||
Deposits
Deposits | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deposits | ' | |||||||
Deposits | ' | |||||||
Note 8. Deposits | ||||||||
The composition of deposits is as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(dollars in thousands) | ||||||||
Demand deposits, non-interest-bearing | $ | 547,531 | $ | 611,043 | ||||
Interest-bearing transaction deposits | 61,384 | 66,295 | ||||||
Savings deposits | 206,587 | 202,263 | ||||||
Money market deposits | 1,471,265 | 1,409,492 | ||||||
Time deposits | 582,371 | 691,199 | ||||||
Total | $ | 2,869,138 | $ | 2,980,292 | ||||
The aggregate amount of time deposits with a minimum denomination of $100,000 was approximately $163.7 million and $202.4 million at December 31, 2013 and 2012, respectively. National deposits of $0.5 million and $0.7 million are included in the balance of time deposits as of December 31, 2013 and 2012, respectively. The Company did not have any brokered deposits at December 31, 2013 or 2012. | ||||||||
As of December 31, 2013, the scheduled maturities of time deposits, in thousands, are as follows: | ||||||||
2014 | $ | 349,128 | ||||||
2015 | 112,585 | |||||||
2016 | 60,553 | |||||||
2017 | 41,076 | |||||||
2018 | 19,025 | |||||||
Thereafter | 4 | |||||||
$ | 582,371 | |||||||
Securities_Sold_Under_Agreemen
Securities Sold Under Agreements to Repurchase | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Securities Sold Under Agreements to Repurchase | ' | |||||||
Securities Sold Under Agreements to Repurchase | ' | |||||||
Note 9. Securities Sold Under Agreements to Repurchase | ||||||||
Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature either daily or within one year from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The underlying securities are held by the Company’s safekeeping agent. The Company may be required to provide additional collateral based on the fair value of the underlying securities. The following table sets forth the distribution of securities sold under agreements to repurchase and weighted average interest rates: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(dollars in thousands) | ||||||||
Balance | $ | 172,348 | $ | 139,024 | ||||
Weighted average interest rate at end of period | 0.13 | % | 0.15 | % | ||||
Maximum outstanding at any month end | $ | 172,348 | $ | 146,710 | ||||
Average daily balance | $ | 137,777 | $ | 132,150 | ||||
Weighted average interest rate during period (1) | 0.14 | % | 0.21 | % | ||||
(1)The weighted average interest rate is computed by dividing total interest for the period by the average daily balance outstanding. | ||||||||
Shortterm_Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2013 | |
Short-term Borrowings | ' |
Short-term Borrowings | ' |
Note 10. Short-term Borrowings | |
Short-term borrowings consist of advances which mature in less than one year from date of origination. At December 31, 2012, the Company had an operating line in the amount of $20.0 million from its primary correspondent bank. The Company had no outstanding amounts on its operating line at December 31, 2012. The line, which was collateralized by the outstanding shares of the Bank, matured on May 31, 2013 and was not renewed. | |
Longterm_Debt
Long-term Debt | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Long-term Debt | ' | |||||||
Long-term Debt | ' | |||||||
Note 11. Long-term Debt | ||||||||
Long-term debt is summarized as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(dollars in thousands) | ||||||||
Notes payable, Federal Home Loan Bank of Chicago, collateralized by all otherwise unpledged U.S. Treasury securities and obligations of U.S. government corporations and agencies, first mortgages on 1-4 family residential real estate loans and Federal Home Loan Bank stock. | $ | — | $ | 7,000 | ||||
As of December 31, 2012, funds borrowed from the Federal Home Loan Bank, listed above, consisted of fixed-rate advances maturing through May 2013, with interest rates ranging from 4.68% to 5.39%. The weighted average rate on these long-term advances was 5.29% as of December 31, 2012. | ||||||||
Junior_Subordinated_Debt_Owed_
Junior Subordinated Debt Owed to Unconsolidated Trusts | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Junior Subordinated Debt Owed to Unconsolidated Trusts | ' | ||||||
Junior Subordinated Debt Owed to Unconsolidated Trusts | ' | ||||||
Note 12. Junior Subordinated Debt Owed to Unconsolidated Trusts | |||||||
First Busey Corporation has established statutory trusts for the sole purpose of issuing trust preferred securities and related trust common securities. The proceeds from such issuances were used by the trusts to purchase junior subordinated notes of the Company, which are the sole assets of each trust. Concurrent with the issuance of the trust preferred securities, the Company issued guarantees for the benefit of the holders of the trust preferred securities. The trust preferred securities are issues that qualify, and are treated by the Company, as Tier I regulatory capital. The Company owns all of the common securities of each trust. The trust preferred securities issued by each trust rank equally with the common securities in right of payment, except that if an event of default under the indenture governing the notes has occurred and is continuing, the preferred securities will rank senior to the common securities in right of payment. | |||||||
The table below summarizes the outstanding junior subordinated notes and the related trust preferred securities issued by each trust as of December 31, 2013: | |||||||
First Busey Statutory Trust II | First Busey Statutory Trust III | First Busey Statutory Trust IV | |||||
Junior Subordinated Notes: | |||||||
Principal balance | $15,000,000 | $10,000,000 | $30,000,000 | ||||
Annual interest rate(1) | 3-mo LIBOR + 2.65% | 3-mo LIBOR + 1.75% | 3-mo LIBOR + 1.55% | ||||
Stated maturity date | June 17, 2034 | June 15, 2035 | June 15, 2036 | ||||
Trust Preferred Securities: | |||||||
Face value | $15,000,000 | $10,000,000 | $30,000,000 | ||||
Annual distribution rate(1) | 3-mo LIBOR + 2.65% | 3-mo LIBOR + 1.75% | 3-mo LIBOR + 1.55% | ||||
Issuance date | April 30, 2004 | June 15, 2005 | June 15, 2006 | ||||
Distribution dates(2) | Quarterly | Quarterly | Quarterly | ||||
(1) First Busey Statutory Trust IV maintained a 5-year fixed coupon of 6.94% through June 10, 2011, subsequently converting to a floating 3-month LIBOR +1.55%. | |||||||
(2) All cash distributions are cumulative. | |||||||
The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated notes at par value at the stated maturity date or upon redemption. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated notes. The Company’s obligations under the junior subordinated notes and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each trust’s obligations under the trust preferred securities issued by each trust. The Company has the right to defer payment of interest on the notes, in which case the distributions on the trust preferred securities will also be deferred, for up to five years, but not beyond the stated maturity date in the table above. The Company does not expect to exercise this right. | |||||||
In March 2005, the Board of Governors of the Federal Reserve System issued a final rule allowing bank holding companies to continue to include qualifying trust preferred securities in their Tier I Capital for regulatory capital purposes, subject to a 25% limitation to all core (Tier I) capital elements, net of goodwill and other intangible assets less any associated deferred tax liability. The final rule provided a five-year transition period, which was extended to March 31, 2011, for applications of the aforementioned quantitative limitation. As of December 31, 2013, 100% of the trust preferred securities noted in the table above qualified as Tier I capital under the final rule adopted in March 2005. | |||||||
The Dodd-Frank Act required the Board of Governors of the Federal Reserve System to establish minimum capital levels for bank holding companies on a consolidated basis that are as stringent as those required for insured depository institutions. The components of Tier 1 capital will be restricted to capital instruments that are currently considered to be Tier 1 capital for insured depository institutions. As a result, the proceeds of trust preferred securities will be excluded from Tier 1 capital unless such securities were issued prior to May 19, 2010 by bank holding companies with less than $15 billion of assets. As the Company has assets of less than $15 billion, it will be able to maintain its trust preferred proceeds as Tier 1 capital but it will have to comply with new capital mandates in other respects, and it will not be able to raise Tier 1 capital in the future through the issuance of trust preferred securities. | |||||||
Capital
Capital | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Capital | ' | ||||||||||||||||
Capital | ' | ||||||||||||||||
Note 13. Capital | |||||||||||||||||
Issuance of Preferred Stock Under Small Business Lending Fund | |||||||||||||||||
On August 25, 2011, the Company entered into the Purchase Agreement with the Treasury, pursuant to which the Company issued and sold to the Treasury 72,664 shares of its Series C Preferred Stock, having a liquidation preference of $1,000 per share, for aggregate proceeds of $72.7 million (which were used to partially finance the Company’s redemption of Series T Preferred Stock as described below). The SBLF is a Treasury lending program that encourages qualified community banks to partner with small businesses and entrepreneurs to create jobs and promote economic development in local communities. | |||||||||||||||||
The Series C Preferred Stock qualifies as Tier 1 capital for the Company. Non-cumulative dividends are payable quarterly on the Series C Preferred Stock, which began October 1, 2011. The dividend rate is calculated as a percentage of the aggregate “Liquidation Amount” of the outstanding Series C Preferred Stock and will be based on changes in the level of “Qualified Small Business Lending” or “QSBL” (as such terms are defined in the Purchase Agreement) by the Bank. Based upon the lack of increase in the Bank’s level of QSBL over the baseline level calculated under the terms of the Purchase Agreement, the dividend rate for the initial dividend period, which was from the date of issuance through September 30, 2011, was set at 5%. For the 2nd through 10th calendar quarters, which ended December 31, 2013, the annual dividend rate also remained at 5%. For the 11th calendar quarter, beginning January 1, 2014 through 4.5 years after issuance, the dividend rate will be fixed at between 1% and 7% based upon the level of QSBL as compared to the baseline. In the third quarter of 2013, the Company had meaningful progress in commercial loan growth which led to the successful attainment of targets under the SBLF program. The achievement of this important milestone under SBLF will yield a lower dividend rate in 2014 of 1%. After 4.5 years from issuance, the dividend rate will increase to 9%. | |||||||||||||||||
The Series C Preferred Stock is non-voting, except in limited circumstances. The Company may redeem the shares of Series C Preferred Stock, in whole or in part, at any time at a redemption price equal to the sum of the Liquidation Amount per share and the per share amount of any unpaid dividends for the then-current period, subject to any required prior approval by the Company’s primary federal banking regulator. | |||||||||||||||||
Redemption of Series T Preferred Stock | |||||||||||||||||
The Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series T (the “Series T Preferred Stock”), was issued to the Treasury on March 6, 2009 in connection with the Company’s participation in the TARP Capital Purchase Program (“CPP”). On August 25, 2011, the Company entered into and consummated the transactions contemplated by a letter agreement (the “Repurchase Document”) with the Treasury. Under the Repurchase Document, the Company redeemed from the Treasury, in part using the proceeds from the issuance of the Series C Preferred Stock, all 100,000 outstanding shares of its Series T Preferred Stock, for a redemption price of approximately $100.1 million, including accrued but unpaid dividends to the date of redemption. | |||||||||||||||||
In connection with the Company’s participation in the CPP, the Company also issued to Treasury a warrant to purchase 1,147,666 shares of the Company’s common stock. Subsequent to the date of the Company’s participation in the CPP, it raised additional capital through a public offering of common stock and, as a result of that offering, the number of shares of common stock subject to the warrant were reduced by 50% to 573,833. On November 23, 2011 the Treasury completed an auction to sell to an unrelated party its warrant in a private transaction. At December 31, 2013, this warrant to purchase 573,833 shares of the Company’s common stock remained outstanding. | |||||||||||||||||
Series B Convertible Cumulative Preferred Stock Issuance and Subsequent Conversion | |||||||||||||||||
On December 28, 2010, the Company completed a registered direct offering, issuing 318.6225 shares of Series B Convertible Cumulative Preferred Stock (the “Series B Preferred Stock”) at a price of $100,000 per share, or $31.9 million in the aggregate. The Series B Preferred Stock had a liquidation preference of $100,000 per share and annual dividend of 9.0%. | |||||||||||||||||
On March 1, 2011, the Company’s stockholders approved the conversion of the shares of the Series B Preferred Stock issued December 28, 2010, at $4.25 per share, the same price at which shares of common stock had been issued in a common stock issuance contemporaneous with the offering of Series B Preferred Stock, resulting in an additional 7,497,000 common shares outstanding. Following the conversion, no shares of Series B Preferred Stock remained outstanding. | |||||||||||||||||
Regulatory Capital | |||||||||||||||||
The ability of the Company to pay cash dividends to its stockholders and to service its debt historically was dependent on the receipt of cash dividends from its subsidiaries. However, Busey Bank sustained significant losses during 2008 and 2009 resulting in pressure on capital, which has been enhanced through injections by the Company. State chartered banks have certain statutory and regulatory restrictions on the amount of cash dividends they may pay. Due to the significant retained earnings deficit and the Company’s desire to maintain a strong capital position at Busey Bank, dividends were not paid out of Busey Bank in 2011, 2012 or 2013. Until such time as retained earnings have been restored, Busey Bank will not be permitted to pay dividends and we will need to request permission from Busey Bank’s primary regulator to receive any capital out of Busey Bank. On January 22, 2013, with the approval of its primary regulator, Busey Bank transferred $50.0 million to the Company representing a return of capital and associated surplus as a result of an amendment to Busey Bank’s charter. | |||||||||||||||||
The Company and the Bank are subject to regulatory capital requirements administered by federal and state banking agencies that involve the quantitative measure of their assets, liabilities, and certain off-balance-sheet items, as calculated under regulatory accounting practices. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined in the regulations), and, for the Bank, Tier 1 capital (as defined) to average assets (as defined in the regulations). Failure to meet minimum capital requirements may cause regulatory bodies to initiate certain discretionary and/or mandatory actions that, if undertaken, may have a direct material effect on the Company’s financial statements. The Company, as a financial holding company, is required to be “well-capitalized” in the two capital categories based on risk-weighted assets, as shown in the table below. The Company believes, as of December 31, 2013, that it and the Bank met all capital adequacy requirements to which they were subject, including the guidelines to be considered “well-capitalized.” | |||||||||||||||||
Minimum | Minimum | ||||||||||||||||
Capital | To Be Well | ||||||||||||||||
Actual | Requirement | Capitalized | |||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
(dollars in thousands) | |||||||||||||||||
As of December 31, 2013: | |||||||||||||||||
Total Capital (to Risk Weighted Assets) | |||||||||||||||||
Consolidated | $ | 449,407 | 18.21 | % | $ | 197,422 | 8 | % | $ | 246,777 | 10 | % | |||||
Busey Bank | $ | 396,248 | 16.17 | % | $ | 196,002 | 8 | % | $ | 245,002 | 10 | % | |||||
Tier I Capital (to Risk Weighted Assets) | |||||||||||||||||
Consolidated | $ | 417,564 | 16.92 | % | $ | 98,711 | 4 | % | $ | 148,067 | 6 | % | |||||
Busey Bank | $ | 364,625 | 14.88 | % | $ | 98,001 | 4 | % | $ | 147,001 | 6 | % | |||||
Tier I Capital (to Average Assets) | |||||||||||||||||
Consolidated | $ | 417,564 | 12.02 | % | $ | 138,896 | 4 | % | N/A | N/A | |||||||
Busey Bank | $ | 364,625 | 10.66 | % | $ | 136,818 | 4 | % | $ | 171,023 | 5 | % | |||||
As of December 31, 2012: | |||||||||||||||||
Total Capital (to Risk Weighted Assets) | |||||||||||||||||
Consolidated | $ | 419,343 | 18.63 | % | $ | 180,026 | 8 | % | $ | 225,033 | 10 | % | |||||
Busey Bank | $ | 406,597 | 18.14 | % | $ | 179,278 | 8 | % | $ | 224,097 | 10 | % | |||||
Tier I Capital (to Risk Weighted Assets) | |||||||||||||||||
Consolidated | $ | 390,304 | 17.34 | % | $ | 90,013 | 4 | % | $ | 135,020 | 6 | % | |||||
Busey Bank | $ | 377,673 | 16.85 | % | $ | 89,639 | 4 | % | $ | 134,458 | 6 | % | |||||
Tier I Capital (to Average Assets) | |||||||||||||||||
Consolidated | $ | 390,304 | 11.3 | % | $ | 138,151 | 4 | % | N/A | N/A | |||||||
Busey Bank | $ | 377,673 | 10.99 | % | $ | 137,488 | 4 | % | $ | 171,859 | 5 | % | |||||
The Dodd-Frank Act required the Board of Governors of the Federal Reserve System to establish minimum capital levels for bank holding companies on a consolidated basis that are as stringent as those required for insured depository institutions. The components of Tier 1 capital will be restricted to capital instruments that are currently considered to be Tier 1 capital for insured depository institutions. As a result, the proceeds of trust preferred securities will be excluded from Tier 1 capital unless such securities were issued prior to May 19, 2010 by bank holding companies with less than $15 billion of assets. As the Company has assets of less than $15 billion, it will be able to maintain its trust preferred proceeds as Tier 1 capital but it will have to comply with new capital mandates in other respects, and it will not be able to raise Tier 1 capital in the future through the issuance of trust preferred securities. | |||||||||||||||||
In July 2013, the U.S. federal banking authorities approved the implementation of the Basel III regulatory capital reforms and issued rules effecting certain changes required by the Dodd-Frank Act (the “Basel III Rules”). The Basel III Rules are applicable to all U.S. banks that are subject to minimum capital requirements, as well as to bank and savings and loan holding companies other than “small bank holding companies” (generally bank holding companies with consolidated assets of less than $500 million). The Basel III Rules not only increase most of the required minimum regulatory capital ratios, but they introduce a new Common Equity Tier 1 Capital ratio and the concept of a capital conservation buffer. The Basel III Rules also expand the definition of capital as in effect currently by establishing criteria that instruments must meet to be considered Additional Tier 1 Capital (Tier 1 Capital in addition to Common Equity) and Tier 2 Capital. A number of instruments that now generally qualify as Tier 1 Capital will not qualify, or their qualifications will change when the Basel III Rules are fully implemented. The Basel III Rules also permit banking organizations with less than $15.0 billion in assets to retain, through a one-time election, the existing treatment for accumulated other comprehensive income, which currently does not affect regulatory capital. The Basel III Rules have maintained the general structure of the current prompt corrective action framework, while incorporating the increased requirements. The prompt corrective action guidelines were also revised to add the Common Equity Tier 1 Capital ratio. In order to be a “well-capitalized” depository institution under the new regime, a bank and holding company must maintain a Common Equity Tier 1 Capital ratio of 6.5% or more; a Tier 1 Capital ratio of 8% or more; a Total Capital ratio of 10% or more; and a leverage ratio of 5% or more. Generally, financial institutions become subject to the new Basel III Rules on January 1, 2015, with phase-in periods for many of the changes. Management is in the process of assessing the effect the Basel III Rules may have on the Company’s and the Bank’s capital positions and will monitor developments in this area. | |||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
Note 14. Income Taxes | |||||||||||
The components of income taxes consist of: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(dollars in thousands) | |||||||||||
Current | $ | 4,020 | $ | 1,926 | $ | 2,194 | |||||
Deferred | 10,091 | 8,571 | 12,776 | ||||||||
Total income tax expense | $ | 14,111 | $ | 10,497 | $ | 14,970 | |||||
A reconciliation of federal and state income taxes at statutory rates to the income taxes included in the statements of income is as follows: | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
% of | % of | % of | |||||||||
Pretax | Pretax | Pretax | |||||||||
Income | Income | Loss | |||||||||
Income tax at statutory rate | 35 | % | 35 | % | 35 | % | |||||
Effect of: | |||||||||||
Tax-exempt interest, net | (3.5 | )% | (4.5 | )% | (2.6 | )% | |||||
State income taxes, net | 4.5 | % | 3.5 | % | 2.1 | % | |||||
Income on bank owned life insurance | (0.9 | )% | (1.8 | )% | (1.0 | )% | |||||
Other, net | (2.2 | )% | (0.3 | )% | (0.1 | )% | |||||
32.9 | % | 31.9 | % | 33.4 | % | ||||||
Net deferred taxes at December 31, 2013 and 2012 in the accompanying Consolidated Balance Sheets, include the following amounts of deferred tax assets and liabilities: | |||||||||||
2013 | 2012 | ||||||||||
(dollars in thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Allowance for loan losses | $ | 19,416 | $ | 19,597 | |||||||
Stock-based compensation | 1,319 | 1,183 | |||||||||
Loan adjustments | 108 | 396 | |||||||||
Deferred compensation | 2,015 | 1,993 | |||||||||
Accrued vacation | 545 | 576 | |||||||||
Employee costs | 1,264 | 616 | |||||||||
Other | 1,780 | 1,423 | |||||||||
$ | 26,447 | $ | 25,784 | ||||||||
Deferred tax liabilities: | |||||||||||
Investment securities: | |||||||||||
Unrealized gains on securities available for sale | $ | (3,119 | ) | $ | (9,479 | ) | |||||
Other | (2,450 | ) | (2,273 | ) | |||||||
Basis in premises and equipment | (2,590 | ) | (2,215 | ) | |||||||
Mortgage servicing assets | (2,097 | ) | (2,159 | ) | |||||||
Basis in core deposit and customer intangible assets | (3,908 | ) | (5,185 | ) | |||||||
Deferred loan origination costs | (20 | ) | (303 | ) | |||||||
$ | (14,184 | ) | $ | (21,614 | ) | ||||||
Net operating loss carryforward, net of valuation allowance | 23,379 | 35,203 | |||||||||
Net deferred tax assets | $ | 35,642 | $ | 39,373 | |||||||
At December 31, 2013 and December 31, 2012, the Company had federal and Illinois net operating loss carryforwards of $23.4 million and $35.2 million, respectively. These net operating loss carryforwards will expire in 2030. | |||||||||||
At December 31, 2013, the Company also had Indiana and Florida net operating loss carryforwards of $1.5 million, which will begin to expire in 2030. Due to the uncertainty as to whether the Company will be able to realize the Indiana and Florida carryforwards, the Company has a full valuation allowance of $1.5 million related to these net operating loss carryforwards. | |||||||||||
Management believes that it is more likely than not that the other deferred tax assets included in the accompanying Consolidated Balance Sheets will be fully realized. The Company has determined that no valuation allowance is required for any other deferred tax assets as of December 31, 2013, although there is no guarantee that those assets will be recognizable in future periods. | |||||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Employee Benefit Plans | ' | |||||||||||
Employee Benefit Plans | ' | |||||||||||
Note 15. Employee Benefit Plans | ||||||||||||
Employees’ Stock Ownership Plan | ||||||||||||
The First Busey Corporation Employees’ Stock Ownership Plan (“ESOP”) is available to all full-time employees who meet certain age and length of service requirements. The ESOP trust fund is able to purchase common shares of the Company using the proceeds of bank borrowings which are generally secured by the common shares. As of December 31, 2013 and 2012, the ESOP trust had no outstanding bank borrowings or debt. Allocations of contributions and forfeitures are based on the eligible compensation of each participant. Dividends on allocated shares of common stock are distributed directly to the participants. All shares held by the ESOP, which were acquired prior to the issuance of FASB ASC Topic 718-40, “Employee Stock Ownership Plans” (ASC 718-40), are included in the computation of average common shares and common share equivalents. This accounting treatment is grandfathered under ASC 718-40 for shares purchased prior to December 31, 1992. | ||||||||||||
In applicable years, as the ESOP made payments of principal on borrowings an appropriate percentage of stock was allocated to eligible employees’ accounts in accordance with appropriate regulations under the Internal Revenue Code. Compensation expense for shares released was equal to the fair market value of the shares when released. During 2012 and 2011, $0.1 million of compensation expense was recognized for the ESOP, releasing 20,000 shares to participant accounts in each year. Compensation expense related to the ESOP is included in the chart below under “Employee Benefits.” | ||||||||||||
All shares held in the ESOP which were acquired prior to December 31, 1992 were allocated as of December 31, 2006. The number of shares and associated fair values were 543,471 worth $3.2 million and 594,504 worth $2.8 million at December 31, 2013 and 2012, respectively. | ||||||||||||
Shares held in the ESOP which were acquired after December 31, 1992 and their fair values were as follows: | ||||||||||||
2013 | 2012 | |||||||||||
Fair | Fair | |||||||||||
Shares | Value | Shares | Value | |||||||||
(dollars in thousands) | ||||||||||||
Allocated shares | 192,171 | $ | 1,115 | 212,146 | $ | 986 | ||||||
Profit Sharing Plan | ||||||||||||
All full-time employees who meet certain age and service requirements are eligible to participate in the Company’s profit-sharing plan. The contributions, if any, are determined solely by the boards of directors of the Company and its subsidiaries, and in no case may the annual contributions be greater than the amounts deductible for federal income tax purposes for that year. | ||||||||||||
The rights of the participants vest ratably over a five-year period, except for the 401(k) match portion, which vests immediately. Expenses related to the employee benefit plans are included in the statements of income as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(dollars in thousands) | ||||||||||||
Employee benefits | $ | 2,975 | $ | 3,024 | $ | 2,985 | ||||||
Interest on employee stock ownership plan debt | — | 5 | 11 | |||||||||
Total employer contributions | $ | 2,975 | $ | 3,029 | $ | 2,996 | ||||||
The Company sponsors deferred compensation plans for executive officers for deferral of compensation. The deferred compensation expense reported was $0.2 million for the years ended December 31, 2013, December 31, 2012 and 2011. The deferred compensation liability was $4.8 million at December 31, 2013, $4.5 million at December 31, 2012, and $4.3 million at December 31, 2011. | ||||||||||||
Stock_Incentive_Plans
Stock Incentive Plans | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Stock Incentive Plans | ' | |||||||||||||||||
Stock Incentive Plans | ' | |||||||||||||||||
Note 16. Stock Incentive Plans | ||||||||||||||||||
Overview | ||||||||||||||||||
During the second quarter of 2010, the Company adopted the 2010 Equity Plan, which was approved at the annual stockholders meeting on May 19, 2010. The Company no longer makes any additional grants under prior plans. The prior plans include: the First Busey Corporation 1993 Restricted Stock Award Plan, the First Busey Corporation 1999 Stock Option Plan, the Main Street Trust, Inc. 2000 Stock Incentive Plan, and the First Busey Corporation 2004 Stock Option Plan. | ||||||||||||||||||
Subject to permitted adjustments for certain corporate transactions, the maximum number of shares that may be delivered to participants, or their beneficiaries, under the 2010 Equity Plan is 4,000,000 shares of First Busey common stock. To the extent that any shares of stock covered by an award (including non-vested stock awards) under the 2010 Equity Plan, or the prior plans, are not delivered for any reason, including because the award is forfeited, canceled, settled in cash or shares are withheld to satisfy tax withholding requirements, such shares will not be deemed to have been delivered for purposes of determining the maximum number of shares of stock available for delivery and will again become available for usage under the 2010 Equity Plan. If any option granted under the 2010 Equity Plan is exercised by tendering shares of stock, only the number of shares of stock issued net of the shares of stock tendered shall be counted for purposes of these limitations. | ||||||||||||||||||
The 2010 Equity Plan’s effective date was May 19, 2010. The 2010 Equity Plan will continue in effect until terminated by the board of directors; provided that no awards may be granted under the 2010 Equity Plan after the ten-year anniversary of the effective date. Any awards that are outstanding after the tenth anniversary of the effective date will remain subject to the terms of the 2010 Equity Plan. | ||||||||||||||||||
The following additional limits apply to awards under the 2010 Equity Plan: | ||||||||||||||||||
· the maximum number of shares of stock that may be covered by options that are intended to be “performance-based compensation” which are granted to any one participant during any calendar year is 400,000 shares; | ||||||||||||||||||
· the maximum number of shares of stock that may be covered by stock awards that are intended to be “performance-based compensation” which are granted to any one participant during any calendar year is 200,000 shares; and | ||||||||||||||||||
· the maximum dollar amount of cash incentive awards or cash-settled stock awards intended to be “performance-based compensation” payable to any one participant with respect to any calendar year is $1,000,000. | ||||||||||||||||||
The Company grants share-based compensation awards to its employees and members of its board of directors as provided for under the Company’s 2010 Equity Incentive Plan. The Company currently grants share-based compensation in the form of restricted stock units and deferred stock units (considered non-vested stock awards under ASC Topic 718). The Company also has outstanding stock options granted prior to 2011. The Company’s 2010 Equity Incentive Plan is designed to encourage ownership of its common stock by its employees and directors, to provide additional incentive for them to promote the success of its business, and to attract and retain talented personnel. All of the Company’s employees and directors, and those of its subsidiaries, are eligible to receive awards under the plan. | ||||||||||||||||||
Stock Option Plan | ||||||||||||||||||
A summary of the status of the Company’s stock option awards for the years ended December 31, 2013, 2012, and 2011, and the changes during the years ended on those dates is as follows: | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||
Average | Average | Average | ||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||
Shares | Price | Shares | Price | Shares | Price | |||||||||||||
Outstanding at beginning of year | 857,468 | $ | 17.01 | 1,017,922 | $ | 16.23 | 1,351,593 | $ | 16.09 | |||||||||
Granted | — | — | — | — | — | — | ||||||||||||
Exercised | — | — | — | — | — | — | ||||||||||||
Forfeited | (161,089 | ) | 16.1 | (160,454 | ) | 12.07 | (333,671 | ) | 15.67 | |||||||||
Outstanding at end of year | 696,379 | $ | 17.22 | 857,468 | $ | 17.01 | 1,017,922 | $ | 16.23 | |||||||||
Exercisable at end of year | 696,379 | $ | 17.22 | 857,468 | $ | 17.01 | 1,017,922 | $ | 16.23 | |||||||||
The following table summarizes information about stock options outstanding at December 31, 2013: | ||||||||||||||||||
Options | ||||||||||||||||||
Options Outstanding | Exercisable | |||||||||||||||||
Weighted- | ||||||||||||||||||
Weighted- | Average | |||||||||||||||||
Range of | Average | Remaining | ||||||||||||||||
Exercise | Exercise | Contractual | Intrinsic | Intrinsic | ||||||||||||||
Prices | Number | Price | Life | Value | Number | Value | ||||||||||||
$ | 4.49-7.53 | 105,000 | $ | 6.01 | 6 | 105,000 | ||||||||||||
17.12-19.74 | 591,379 | 19.21 | 1.38 | 591,379 | ||||||||||||||
696,379 | $ | 17.22 | 2.08 | $ | 69 | 696,379 | $ | 69 | ||||||||||
The Company did not record any stock option compensation expense during 2013 or 2012, and recorded an insignificant amount of expense during 2011. As of December 31, 2013, the Company has no unrecognized stock option expense. | ||||||||||||||||||
Restricted Stock Unit Plan | ||||||||||||||||||
The Company grants restricted stock units (“RSUs”) to members of management periodically throughout the year. Each RSU is equivalent to one share of the Company’s common stock. These units have a requisite service period ranging from one to five years. In addition, all recipients earn quarterly dividend equivalents on their respective units. These dividend equivalents are not paid out during the vesting period, but instead entitle the recipients to additional units. Therefore, dividends earned each quarter compound based upon the updated unit balances. Upon vesting/delivery, shares are issued from treasury. | ||||||||||||||||||
A summary of the changes in the Company’s restricted stock units for the years ended December 31, 2013, 2012 and 2011 is as follows: | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||
Average | Average | Average | ||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||
Shares | Fair Value | Shares | Fair Value | Shares | Fair Value | |||||||||||||
Outstanding at beginning of year | 736,412 | $ | 4.92 | 455,352 | $ | 4.98 | 194,914 | $ | 4.75 | |||||||||
Granted | 351,452 | 5.02 | 266,258 | 4.83 | 250,728 | 5.16 | ||||||||||||
Dividend equivalents earned | 17,211 | 4.86 | 32,704 | 4.79 | 9,710 | 5.2 | ||||||||||||
Vested | (156,795 | ) | 4.84 | (9,925 | ) | 4.19 | — | — | ||||||||||
Forfeited | (28,352 | ) | 5.14 | (7,977 | ) | 5.15 | — | — | ||||||||||
Outstanding at end of year | 919,928 | $ | 4.97 | 736,412 | $ | 4.92 | 455,352 | $ | 4.98 | |||||||||
The Company issued 111,012 and 6,804 treasury shares in conjunction with the vesting of RSUs in 2013 and 2012, respectively. The difference between the number of shares issued and the number of vested units is due to shares issued under a net share settlement option. | ||||||||||||||||||
On August 1, 2013, under the terms of the 2010 Equity Incentive Plan, the Company granted 338,294 RSUs to members of management. As the stock price on the grant date of August 1, 2013 was $5.04, total compensation cost to be recognized is $1,705,002. This cost will be recognized over a period of two or five years. Per the respective agreements, 14,881 RSUs vest over a requisite service period of two years and 323,413 RSUs vest over a requisite service period of five years. Subsequent to each requisite service period, the awards will vest 100%. | ||||||||||||||||||
On March 26, 2013, under the terms of the 2010 Equity Incentive Plan, the Company granted 13,158 RSUs to a certain member of management. As the stock price on the grant date of March 26, 2013 was $4.56, total compensation cost to be recognized is $60,000. This cost will be recognized over a period of one to three years. Per the respective agreements, 4,386 RSUs vest over a requisite service period of one year, 4,386 RSUs vest over a requisite service period of two years, and the remaining 4,386 RSUs vest over a requisite service period of three years. Subsequent to each requisite service period, the awards will vest 100%. | ||||||||||||||||||
A listing of RSUs granted in 2012 and 2011 under the terms of the 2010 Equity Incentive Plan can be found in the Company’s Annual Reports on Form 10-K for the years ended December 31, 2012 and December 31, 2011. | ||||||||||||||||||
Deferred Stock Unit Plan | ||||||||||||||||||
The Company annually grants share-based awards in the form of restricted stock units with a deferred settlement date (“DSUs”) to its board of directors. Each DSU is equivalent to one share of the Company’s common stock. The DSUs vest over a twelve-month period following the grant date or on the next annual shareholder’s meeting, whichever is earlier. These units generally are subject to the same terms as RSUs under the Company’s 2010 Equity Incentive Plan, except that, following vesting, settlement occurs within 30 days following the earlier of separation from the board or a change in control of the Company. Subsequent to vesting and prior to delivery, these units will continue to earn dividend equivalents. | ||||||||||||||||||
A summary of the changes in the Company’s deferred stock units for the years ended December 31, 2013, 2012 and 2011 is as follows: | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||
Average | Average | Average | ||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||
Shares | Fair Value | Shares | Fair Value | Shares | Fair Value | |||||||||||||
Non-vested at beginning of year | 32,991 | $ | 4.77 | 22,771 | $ | 5.23 | — | $ | — | |||||||||
Granted | 28,800 | 5.04 | 31,897 | 4.77 | 22,426 | 5.23 | ||||||||||||
Dividend equivalents earned | 1,636 | 5.03 | 2,252 | 4.76 | 345 | 5.22 | ||||||||||||
Vested | (34,373 | ) | 4.77 | (23,929 | ) | 5.21 | — | — | ||||||||||
Forfeited | — | — | — | — | — | — | ||||||||||||
Non-vested at end of year | 29,054 | $ | 5.05 | 32,991 | $ | 4.77 | 22,771 | $ | 5.23 | |||||||||
Outstanding at end of year | 87,356 | $ | 5.06 | 56,920 | $ | 4.96 | 22,771 | $ | 5.23 | |||||||||
On August 1, 2013, under the terms of the 2010 Equity Incentive Plan, the Company granted 28,800 DSUs to directors. As the stock price on the grant date of August 1, 2013 was $5.04, total compensation cost to be recognized is $145,152. This cost will be recognized over the requisite service period of one year from the date of grant or the next annual shareholder’s meeting; whichever is earlier. Subsequent to the requisite service period, the awards will vest 100%. | ||||||||||||||||||
A listing of DSUs granted in 2012 and 2011 under the terms of the 2010 Equity Incentive Plan can be found in the Company’s Annual Reports on Form 10-K for the years ended December 31, 2012 and December 31, 2011. | ||||||||||||||||||
The Company recognized $1.1 million, $1.0 million and $0.4 million of compensation expense related to both non-vested RSUs and DSUs for the years ended December 31, 2013, December 31, 2012 and December 31, 2011, respectively. As of December 31, 2013, there was $2.9 million of total unrecognized compensation cost related to these non-vested stock awards. This cost is expected to be recognized over a period of 3.1 years. | ||||||||||||||||||
Transactions_with_Directors_an
Transactions with Directors and Executive Officers | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Transactions with Directors and Executive Officers | ' | ||||
Transactions with Directors and Executive Officers | ' | ||||
Note 17. Transactions with Directors and Executive Officers | |||||
The Company and its subsidiaries have had, and may be expected to have in the future, banking transactions in the ordinary course of business with directors, executive officers, their immediate families and affiliated companies in which they have 10% or more beneficial ownership (commonly referred to as related parties), on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others. | |||||
The following is an analysis of the changes in loans, in thousands, to related parties during the year ended December 31, 2013: | |||||
Balance at beginning of year | $ | 29,714 | |||
Addition due to change in relationship | — | ||||
Deletion due to change in relationship | — | ||||
New loans/ advances | 24,100 | ||||
Repayments | (23,709 | ) | |||
Balance at end of year | $ | 30,105 | |||
Total unused commitments to directors and executive officers were $7.5 million at December 31, 2013. | |||||
Commitments_Contingencies_and_
Commitments, Contingencies and Credit Risk | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments, Contingencies and Credit Risk | ' | |||||||
Commitments, Contingencies and Credit Risk | ' | |||||||
Note 18. Commitments, Contingencies and Credit Risk | ||||||||
Legal Matters | ||||||||
The Company and its subsidiaries are parties to legal actions which arise in the normal course of their business activities. In the opinion of management, the ultimate resolution of these matters is not expected to have a material effect on the financial position or the results of operations of the Company and its subsidiaries. | ||||||||
Credit Commitments and Contingencies | ||||||||
The Bank is a party to credit related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance Sheets. | ||||||||
The Bank’s exposure to credit loss is represented by the contractual amount of those commitments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. | ||||||||
A summary of the contractual amount of the Bank’s exposure to off-balance-sheet risk follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(dollars in thousands) | ||||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit | $ | 527,614 | $ | 483,373 | ||||
Standby letters of credit | 10,155 | 12,305 | ||||||
Commitments to extend credit are agreements to lend to a customer as long as no condition established in the contract has been violated. These commitments are generally at variable interest rates and generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the customer. | ||||||||
Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer’s obligation to a third-party. Those guarantees are primarily issued to support public and private borrowing arrangements, including bond financing and similar transactions and primarily have terms of one year or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank holds collateral, which may include accounts receivable, inventory, property and equipment, and income producing properties, supporting those commitments if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third-party, the Bank would be required to fund the commitment. The maximum potential amount of future payments the Bank could be required to make is represented by the contractual amount shown in the summary above. If the commitment is funded, the Bank would be entitled to seek recovery from the customer. | ||||||||
As of December 31, 2013 and December 31, 2012, no amounts were recorded as liabilities for the Bank’s potential obligations under these guarantees. | ||||||||
As of December 31, 2013, the Bank had no futures, forwards, swaps or option contracts, or other financial instruments with similar characteristics with the exception of rate lock commitments on mortgage loans to be held for sale. | ||||||||
Lease Commitments | ||||||||
At December 31, 2013, the Company was obligated under noncancelable operating leases for office space and other commitments. Rent expense under operating leases, included in net occupancy and equipment expense, was approximately $1.6 million, $2.5 million, and $3.0 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||
The projected minimum rental payments under the terms of the leases at December 31, 2013 in thousands, are as follows: | ||||||||
2014 | $ | 1,274 | ||||||
2015 | 711 | |||||||
2016 | 112 | |||||||
2017 | 4 | |||||||
$ | 2,101 | |||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
Note 19 - Fair Value Measurements | ||||||||||||||
The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. FASB ASC Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: | ||||||||||||||
Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | ||||||||||||||
Level 2 Inputs - Inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. | ||||||||||||||
Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. | ||||||||||||||
A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to those Company assets and liabilities that are carried at fair value. | ||||||||||||||
Corporate debt securities were transferred to level 2 as of March 31, 2013 because the Company could no longer obtain evidence of unadjusted quoted prices. There were no additional transfers between levels during the year ended December 31, 2013. | ||||||||||||||
In general, fair value is based upon quoted market prices, when available. If such quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable data. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect, among other things, counterparty credit quality and the company’s creditworthiness as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates and, therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein. | ||||||||||||||
Securities Available for Sale. Securities classified as available for sale are reported at fair value utilizing level 1 and level 2 measurements. For mutual funds and other equity securities, unadjusted quoted prices in active markets for identical assets are utilized to determine fair value at the measurement date and have been classified as level 1 in the ASC 820 fair value hierarchy. For all other securities, the Company obtains fair value measurements from an independent pricing service. The independent pricing service evaluations are based on market data. The independent pricing service utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information. Because many fixed income securities do not trade on a daily basis, the independent pricing service evaluated pricing applications apply available information as applicable through processes such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing, to prepare evaluations. In addition, the independent pricing service uses model processes, such as the Option Adjusted Spread model to assess interest rate impact and develop prepayment scenarios. The models and processes take into account market convention. For each asset class, a team of evaluators gathers information from market sources and integrates relevant credit information, perceived market movements and sector news into the evaluated pricing applications and models. | ||||||||||||||
The market inputs that the independent pricing service normally seeks for evaluations of securities, listed in approximate order of priority, include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications. The independent pricing service also monitors market indicators, industry and economic events. Information of this nature is a trigger to acquire further market data. For certain security types, additional inputs may be used or some of the market inputs may not be applicable. Evaluators may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs listed are available for use in the evaluation process for each security evaluation on a given day. Because the data utilized was observable, the securities have been classified as level 2 in the ASC 820 fair value hierarchy. | ||||||||||||||
The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012 segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
December 31, 2013 | Inputs | Inputs | Inputs | Fair Value | ||||||||||
(dollars in thousands) | ||||||||||||||
Securities available for sale: | ||||||||||||||
U.S. Treasury securities | $ | — | $ | 102,640 | $ | — | $ | 102,640 | ||||||
Obligations of U.S. government corporations and agencies | — | 257,411 | — | 257,411 | ||||||||||
Obligations of states and political subdivisions | — | 272,152 | — | 272,152 | ||||||||||
Residential mortgage-backed securities | — | 177,735 | — | 177,735 | ||||||||||
Corporate debt securities | — | 25,506 | — | 25,506 | ||||||||||
Mutual funds and other equity securities | 5,866 | — | — | 5,866 | ||||||||||
$ | 5,866 | $ | 835,444 | $ | — | $ | 841,310 | |||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
December 31, 2012 | Inputs | Inputs | Inputs | Fair Value | ||||||||||
(dollars in thousands) | ||||||||||||||
Securities available for sale: | ||||||||||||||
U.S. Treasury securities | $ | — | $ | 104,656 | $ | — | $ | 104,656 | ||||||
Obligations of U.S. government corporations and agencies | — | 370,194 | — | 370,194 | ||||||||||
Obligations of states and political subdivisions | — | 280,288 | — | 280,288 | ||||||||||
Residential mortgage-backed securities | — | 217,715 | — | 217,715 | ||||||||||
Corporate debt securities | 24,714 | — | — | 24,714 | ||||||||||
Mutual funds and other equity securities | 3,930 | — | — | 3,930 | ||||||||||
$ | 28,644 | $ | 972,853 | $ | — | $ | 1,001,497 | |||||||
Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). | ||||||||||||||
Impaired Loans. The Company does not record loans at fair value on a recurring basis. However, periodically, a loan is considered impaired and is reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Impaired loans measured at fair value typically consist of loans on non-accrual status and restructured loans in compliance with modified terms. Collateral values are estimated using a combination of observable inputs, including recent appraisals and unobservable inputs based on customized discounting criteria. Due to the significance of the unobservable inputs, all impaired loan fair values have been classified as level 3 in the ASC 820 fair value hierarchy. | ||||||||||||||
OREO. Non-financial assets and non-financial liabilities measured at fair value include OREO (upon initial recognition or subsequent impairment). OREO properties are measured using a combination of observable inputs, including recent appraisals, and unobservable inputs based on customized discounting criteria. Due to the significance of the unobservable inputs, all OREO fair values have been classified as level 3 in the ASC 820 fair value hierarchy. | ||||||||||||||
The following table summarizes assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2013 and 2012, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
December 31, 2013 | Inputs | Inputs | Inputs | Fair Value | ||||||||||
(dollars in thousands) | ||||||||||||||
Impaired loans | $ | — | $ | — | $ | 5,491 | $ | 5,491 | ||||||
OREO | — | — | 1,134 | 1,134 | ||||||||||
December 31, 2012 | ||||||||||||||
Impaired loans | $ | — | $ | — | $ | 2,284 | $ | 2,284 | ||||||
OREO | — | — | 511 | 511 | ||||||||||
The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized level 3 inputs to determine fair value: | ||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||
Fair Value | Valuation | Unobservable | Range | |||||||||||
December 31, 2013 | Estimate | Techniques | Input | (Weighted Average) | ||||||||||
(dollars in thousands) | ||||||||||||||
Impaired loans | $ | 5,491 | Appraisal of collateral | Appraisal adjustments | -0.4% to -100.0% | |||||||||
(-36.0%) | ||||||||||||||
OREO | 1,134 | Appraisal of collateral | Appraisal adjustments | -6.6% to -100.0% | ||||||||||
(-47.9%) | ||||||||||||||
December 31, 2012 | ||||||||||||||
Impaired loans | 2,284 | Appraisal of collateral | Appraisal adjustments | -12.00% to -100.0% | ||||||||||
(-34.2%) | ||||||||||||||
OREO | 511 | Appraisal of collateral | Appraisal adjustments | -51.7% to -61.30% | ||||||||||
(-53.4%) | ||||||||||||||
FASB ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The estimated fair value approximates carrying value for cash and due from banks and accrued interest and are classified as level 2. The methodologies for other financial assets and financial liabilities are discussed below: | ||||||||||||||
Loans held for sale | ||||||||||||||
Fair value of mortgage loans held for sale are based on commitments on hand from investors or prevailing market prices. | ||||||||||||||
Fair values for on-balance-sheet commitments to originate loans held for sale are based on fees currently charged to enter into similar agreements, and for fixed-rate commitments also consider the difference between current levels of interest rates and the committed rates. The fair value of interest rate lock commitments are considered immaterial. Loans held for sale are classified as level 2. | ||||||||||||||
Loans | ||||||||||||||
Our performing loan portfolio consists of variable rate and fixed rate loans. For variable rate loans that reprice frequently with no significant change in credit risk, fair values are based on carrying amount. For certain homogeneous categories of loans, such as some residential mortgages, fair value is estimated using the quoted market prices for similar loans or securities backed by similar loans, adjusted for differences in loan characteristics. The fair value of other types of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities and are classified as level 3. | ||||||||||||||
Fair value of impaired loans is discussed above. | ||||||||||||||
Deposits and securities sold under agreements to repurchase | ||||||||||||||
The fair value of demand deposits, savings accounts, interest-bearing transaction accounts, and certain money market deposits is defined as the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using a discounted cash flow calculation that applies interest rates currently offered for deposits of similar remaining maturities. The carrying amounts reported in the balance sheet for securities sold under agreements to repurchase approximate those liabilities’ fair values. Deposits and securities sold under agreements to repurchase are classified as level 2. | ||||||||||||||
Long-term debt | ||||||||||||||
Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate fair value of existing debt and are classified as level 2. | ||||||||||||||
Junior subordinated debt owed to unconsolidated trusts | ||||||||||||||
For variable rate instruments, fair values are based on carrying values and are classified as level 2. | ||||||||||||||
Commitments to extend credit and standby letters of credit | ||||||||||||||
The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. As of December 31, 2013 and 2012, these items were insignificant. | ||||||||||||||
The estimated fair values of financial instruments that are reported at amortized cost in the Company’s Consolidated Balance Sheets, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, were as follows: | ||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
Amount | Value | Amount | Value | |||||||||||
(dollars in thousands) | ||||||||||||||
Financial assets: | ||||||||||||||
Level 2 inputs: | ||||||||||||||
Cash and due from banks | $ | 231,603 | $ | 231,603 | $ | 351,255 | $ | 351,255 | ||||||
Loans held for sale | 13,840 | 14,103 | 40,003 | 40,971 | ||||||||||
Accrued interest receivable | 11,148 | 11,148 | 12,275 | 12,275 | ||||||||||
Level 3 inputs: | ||||||||||||||
Loans, net | 2,233,893 | 2,236,841 | 1,985,095 | 2,006,588 | ||||||||||
Financial liabilities: | ||||||||||||||
Level 2 inputs: | ||||||||||||||
Deposits | $ | 2,869,138 | $ | 2,870,870 | $ | 2,980,292 | $ | 2,987,524 | ||||||
Securities sold under agreements to repurchase | 172,348 | 172,348 | 139,024 | 139,024 | ||||||||||
Long-term debt | — | — | 7,000 | 7,120 | ||||||||||
Junior subordinated debt owed to unconsolidated trusts | 55,000 | 55,000 | 55,000 | 55,000 | ||||||||||
Accrued interest payable | 673 | 673 | 1,128 | 1,128 | ||||||||||
Other assets and liabilities of the Company that are not defined as financial instruments are not included in the above disclosures, such as property and equipment. Also, nonfinancial instruments typically not recognized in financial statements nevertheless may have value but are not included in the above disclosures. These include, among other items, the estimated earning potential of core deposit accounts, the earnings potential of loan servicing rights, the earnings potential of the trust operations, customer goodwill and similar items. | ||||||||||||||
Reportable_Segments_and_Relate
Reportable Segments and Related Information | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Reportable Segments and Related Information | ' | |||||||||||||
Reportable Segments and Related Information | ' | |||||||||||||
Note 20. Reportable Segments and Related Information | ||||||||||||||
The Company has three reportable segments, Busey Bank, FirsTech and Busey Wealth Management. Busey Bank provides a full range of banking services to individual and corporate customers through its branch network in downstate Illinois, through its branch in Indianapolis, Indiana, and through its branch network in southwest Florida. FirsTech provides remittance processing for online bill payments, lockbox and walk-in payments. Busey Wealth Management is the parent company of Busey Trust Company, which provides a full range of asset management, investment and fiduciary services to individuals, businesses and foundations, tax preparation and philanthropic advisory services. | ||||||||||||||
The Company’s three reportable segments are strategic business units that are separately managed as they offer different products and services and have different marketing strategies. | ||||||||||||||
The segment financial information provided below has been derived from the internal accounting system used by management to monitor and manage the financial performance of the Company. The accounting policies of the three segments are the same as those described in the summary of significant accounting policies in Note 1. The Company accounts for intersegment revenue and transfers at current market value. | ||||||||||||||
Following is a summary of selected financial information for the Company’s business segments: | ||||||||||||||
Goodwill | Total Assets | |||||||||||||
As of December 31, | 2013 | 2012 | 2013 | 2012 | ||||||||||
(dollars in thousands) | (dollars in thousands) | |||||||||||||
Busey Bank | $ | — | $ | — | $ | 3,456,555 | $ | 3,567,637 | ||||||
FirsTech | 8,992 | 8,992 | 27,253 | 26,401 | ||||||||||
Busey Wealth Management | 11,694 | 11,694 | 28,548 | 26,653 | ||||||||||
All Other | — | — | 27,219 | (2,635 | ) | |||||||||
Totals | $ | 20,686 | $ | 20,686 | $ | 3,539,575 | $ | 3,618,056 | ||||||
Year ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
(dollars in thousands) | ||||||||||||||
Interest Income: | ||||||||||||||
Busey Bank | $ | 108,413 | $ | 116,608 | $ | 132,501 | ||||||||
FirsTech | 51 | 62 | 66 | |||||||||||
Busey Wealth Management | 242 | 251 | 255 | |||||||||||
All Other | (10 | ) | (5 | ) | (3 | ) | ||||||||
Total interest income | $ | 108,696 | $ | 116,916 | $ | 132,819 | ||||||||
Interest Expense: | ||||||||||||||
Busey Bank | $ | 7,448 | $ | 13,466 | $ | 20,514 | ||||||||
FirsTech | — | — | — | |||||||||||
Busey Wealth Management | — | — | — | |||||||||||
All Other | 1,183 | 1,304 | 1,912 | |||||||||||
Total interest expense | $ | 8,631 | $ | 14,770 | $ | 22,426 | ||||||||
Other Income: | ||||||||||||||
Busey Bank | $ | 36,774 | $ | 39,908 | $ | 35,940 | ||||||||
FirsTech | 8,541 | 8,522 | 9,287 | |||||||||||
Busey Wealth Management | 17,799 | 16,345 | 14,841 | |||||||||||
All Other | (531 | ) | 2,077 | (1,053 | ) | |||||||||
Total other income | $ | 62,583 | $ | 66,852 | $ | 59,015 | ||||||||
Net Income: | ||||||||||||||
Busey Bank | $ | 25,416 | $ | 19,162 | $ | 28,504 | ||||||||
FirsTech | 1,000 | 935 | 1,437 | |||||||||||
Busey Wealth Management | 4,242 | 3,363 | 3,095 | |||||||||||
All Other | (1,932 | ) | (1,103 | ) | (3,163 | ) | ||||||||
Total net income | $ | 28,726 | $ | 22,357 | $ | 29,873 | ||||||||
Parent_Company_Only_Financial_
Parent Company Only Financial Information | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Parent Company Only Financial Information | ' | ||||||||||
Parent Company Only Financial Information | ' | ||||||||||
Note 21. Parent Company Only Financial Information | |||||||||||
Condensed financial data for First Busey Corporation is presented below. | |||||||||||
BALANCE SHEETS | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(dollars in thousands) | |||||||||||
ASSETS | |||||||||||
Cash and due from subsidiary banks | $ | 42,645 | $ | 5,152 | |||||||
Securities available for sale | 201 | 201 | |||||||||
Loans | — | 68 | |||||||||
Investments in subsidiaries: | |||||||||||
Bank | 400,442 | 432,912 | |||||||||
Non-bank | 25,646 | 23,605 | |||||||||
Premises and equipment, net | 521 | 757 | |||||||||
Other assets | 9,450 | 9,369 | |||||||||
Total assets | $ | 478,905 | $ | 472,064 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Liabilities: | |||||||||||
Junior subordinated debentures owed to unconsolidated Trusts | 55,000 | 55,000 | |||||||||
Other liabilities | 8,541 | 8,267 | |||||||||
Total liabilities | 63,541 | 63,267 | |||||||||
Total stockholders’ equity | 415,364 | 408,797 | |||||||||
Total liabilities and stockholders’ equity | $ | 478,905 | $ | 472,064 | |||||||
STATEMENTS OF INCOME | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(dollars in thousands) | |||||||||||
Operating income: | |||||||||||
Dividends from subsidiaries: | |||||||||||
Bank | $ | — | $ | — | $ | — | |||||
Non-bank | 2,000 | 2,500 | 3,750 | ||||||||
Interest and dividend income | 46 | 49 | 63 | ||||||||
Other income | 4,669 | 6,231 | 2,424 | ||||||||
Total operating income | 6,715 | 8,780 | 6,237 | ||||||||
Expense: | |||||||||||
Salaries and employee benefits | 5,139 | 4,718 | 3,620 | ||||||||
Interest expense | 1,220 | 1,351 | 1,963 | ||||||||
Operating expense | 2,163 | 2,469 | 2,623 | ||||||||
Total expense | 8,522 | 8,538 | 8,206 | ||||||||
(Loss) income before income tax benefit and distributions (in excess of) less than net income of subsidiaries | (1,807 | ) | 242 | (1,969 | ) | ||||||
Income tax benefit | 1,875 | 1,155 | 2,556 | ||||||||
Income before distributions less than net income of subsidiaries | 68 | 1,397 | 587 | ||||||||
Distributions less than (in excess of) net income (loss) of subsidiaries: | |||||||||||
Bank | 26,416 | 20,097 | 29,941 | ||||||||
Non-bank | 2,242 | 863 | (655 | ) | |||||||
Net income | $ | 28,726 | $ | 22,357 | $ | 29,873 | |||||
STATEMENTS OF CASH FLOWS | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(dollars in thousands) | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | $ | 28,726 | $ | 22,357 | $ | 29,873 | |||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 100 | 98 | 120 | ||||||||
Distributions less than net income of subsidiaries | (28,658 | ) | (20,960 | ) | (29,286 | ) | |||||
Stock-based compensation | 1,079 | 991 | 488 | ||||||||
Fair value adjustment on employee stock ownership plan shares allocated | — | (322 | ) | (318 | ) | ||||||
Changes in assets and liabilities: | |||||||||||
(Increase) decrease in other assets | (62 | ) | 125 | 1,479 | |||||||
Increase (decrease) in other liabilities | 381 | 1,435 | (22,630 | ) | |||||||
Net cash provided by (used in) operating activities | 1,566 | 3,724 | (20,274 | ) | |||||||
Cash Flows from Investing Activities | |||||||||||
Securities purchased under agreements to resell, net | — | — | 10,909 | ||||||||
Decrease in loans | 68 | 95 | 85 | ||||||||
Proceeds from sales of premises and equipment | 226 | — | — | ||||||||
Purchases of premises and equipment | (90 | ) | (11 | ) | (5 | ) | |||||
Net cash provided by investing activities | 204 | 84 | 10,989 | ||||||||
Cash Flows from Financing Activities | |||||||||||
Proceeds from charter amendment with subsidiary bank | 50,000 | — | — | ||||||||
Repurchase of Series T Preferred Stock | — | — | (100,000 | ) | |||||||
Proceeds from issuance of Series C Preferred stock | — | — | 72,664 | ||||||||
Shares surrendered upon vesting of restricted stock units to cover tax obligations | (237 | ) | — | — | |||||||
Cash dividends paid | (14,040 | ) | (24,427 | ) | (18,343 | ) | |||||
Net cash provided by (used in) financing activities | 35,723 | (24,427 | ) | (45,679 | ) | ||||||
Net increase (decrease) in cash and due from subsidiary banks | 37,493 | (20,619 | ) | (54,964 | ) | ||||||
Cash and due from subsidiary banks, beginning | 5,152 | 25,771 | 80,735 | ||||||||
Cash and due from subsidiary banks, ending | $ | 42,645 | $ | 5,152 | $ | 25,771 | |||||
Unaudited_Interim_Financial_Da
Unaudited Interim Financial Data | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Unaudited Interim Financial Data | ' | |||||||||||||
Unaudited Interim Financial Data | ' | |||||||||||||
Note 22. Unaudited Interim Financial Data | ||||||||||||||
The following table reflects summarized quarterly data for the periods described (unaudited), in thousands, except per share data: | ||||||||||||||
2013 | ||||||||||||||
December 31 | September 30 | June 30 | March 31 | |||||||||||
Interest income | $ | 26,885 | $ | 27,236 | $ | 27,460 | $ | 27,115 | ||||||
Interest expense | 1,881 | 2,003 | 2,215 | 2,532 | ||||||||||
Net interest income | 25,004 | 25,233 | 25,245 | 24,583 | ||||||||||
Provision for loan losses | 1,500 | 2,000 | 2,000 | 2,000 | ||||||||||
Non-interest income | 14,529 | 15,630 | 15,783 | 16,641 | ||||||||||
Non-interest expense | 27,585 | 27,358 | 27,801 | 29,567 | ||||||||||
Income before income taxes | 10,448 | 11,505 | 11,227 | 9,657 | ||||||||||
Income taxes | 3,528 | 3,572 | 3,787 | 3,224 | ||||||||||
Net income | $ | 6,920 | $ | 7,933 | $ | 7,440 | $ | 6,433 | ||||||
Preferred stock dividends | 908 | 909 | 908 | 908 | ||||||||||
Net income available to common stockholders | $ | 6,012 | $ | 7,024 | $ | 6,532 | $ | 5,525 | ||||||
Basic earnings per share | $ | 0.07 | $ | 0.08 | $ | 0.08 | $ | 0.06 | ||||||
Diluted earnings per share | $ | 0.07 | $ | 0.08 | $ | 0.08 | $ | 0.06 | ||||||
2012 | ||||||||||||||
December 31 | September 30 | June 30 | March 31 | |||||||||||
Interest income | $ | 28,584 | $ | 29,011 | $ | 29,225 | $ | 30,096 | ||||||
Interest expense | 2,955 | 3,466 | 3,951 | 4,398 | ||||||||||
Net interest income | 25,629 | 25,545 | 25,274 | 25,698 | ||||||||||
Provision for loan losses | 3,500 | 3,500 | 4,500 | 5,000 | ||||||||||
Non-interest income | 17,613 | 15,589 | 15,770 | 17,880 | ||||||||||
Non-interest expense | 32,269 | 30,394 | 29,779 | 27,202 | ||||||||||
Income before income taxes | 7,473 | 7,240 | 6,765 | 11,376 | ||||||||||
Income taxes | 2,556 | 2,331 | 1,877 | 3,733 | ||||||||||
Net income | $ | 4,917 | $ | 4,909 | $ | 4,888 | $ | 7,643 | ||||||
Preferred stock dividends | 908 | 909 | 908 | 908 | ||||||||||
Net income available to common stockholders | $ | 4,009 | $ | 4,000 | $ | 3,980 | $ | 6,735 | ||||||
Basic earnings per share | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.08 | ||||||
Diluted earnings per share | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.08 |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Significant Accounting Policies | ' | ||||||||||
Basis of consolidation | ' | ||||||||||
Basis of consolidation | |||||||||||
The Consolidated Financial Statements include the accounts of the Company and its subsidiaries: Busey Bank and its wholly-owned subsidiary FirsTech, Inc.; and Busey Wealth Management, Inc. and its wholly-owned subsidiaries Busey Trust Company and Busey Capital Management, Inc. The Company and its subsidiaries maintain various LLCs that hold specific assets for risk mitigation purposes and are consolidated into these financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||
The Consolidated Financial Statements also exclude the following wholly-owned variable interest entities: First Busey Statutory Trust II, First Busey Statutory Trust III and First Busey Statutory Trust IV because the Company is not the primary beneficiary. | |||||||||||
The Consolidated Financial Statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America and conform to predominant practice within the banking industry. | |||||||||||
Use of estimates | ' | ||||||||||
Use of estimates | |||||||||||
In preparing the accompanying Consolidated Financial Statements, the Company’s management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near-term relate to the fair value of investment securities, the determination of the allowance for loan losses and the ability to realize its deferred tax assets. | |||||||||||
Comprehensive income | ' | ||||||||||
Comprehensive income | |||||||||||
Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. | |||||||||||
Trust assets | ' | ||||||||||
Trust assets | |||||||||||
Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit at the Company’s bank subsidiary, are not assets of the Company and, accordingly, are not included in the accompanying Consolidated Financial Statements. Busey Trust Company had assets under care of $5.0 billion and $4.2 billion at December 31, 2013 and 2012, respectively. | |||||||||||
Cash flows | ' | ||||||||||
Cash flows | |||||||||||
For purposes of the consolidated statement of cash flows, cash and due from banks includes cash on hand and amounts due from banks. Cash flows from federal funds purchased and sold, short-term borrowings, and securities sold under agreements to repurchase are reported net, since their original maturities are less than three months. Cash flows from loans and deposits are also reported net. | |||||||||||
Securities | ' | ||||||||||
Securities | |||||||||||
Securities classified as available for sale are those debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, and marketable equity securities. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Securities available for sale are carried at fair value, with temporary unrealized gains and losses excluded from earnings and reported in other comprehensive income. | |||||||||||
Declines in the fair value of debt securities below their amortized cost are evaluated to determine whether the loss is temporary or other-than-temporary. If the Company (a) has the intent to sell a debt security or (b) more likely than not will be required to sell the debt security before its anticipated recovery, then the Company recognizes the entire unrealized loss in earnings as an other-than-temporary loss. If neither of these conditions are met, the Company evaluates whether a credit loss exists. The impairment is separated into (x) the amount of the total impairment related to the credit loss and (y) the amount of total impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings and the amount related to all other factors is recognized in other comprehensive income. | |||||||||||
The Company also evaluates whether the decline in fair value of an equity security is temporary or other-than-temporary. In determining whether an unrealized loss on an equity security is temporary or other-than-temporary, management considers various factors, including the magnitude and duration of the impairment, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to hold the equity security to forecasted recovery. | |||||||||||
Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. | |||||||||||
Securities classified as held to maturity are those debt securities that the Company intends to hold to maturity. Securities held to maturity are carried at cost, adjusted for amortization of premiums and accretion of discounts. | |||||||||||
Loans held for sale | ' | ||||||||||
Loans held for sale | |||||||||||
Loans held for sale are those loans the Company has the intent to sell in the foreseeable future. They consist of mortgage loans conforming to established guidelines and held for sale to investors and the secondary mortgage market. Loans held for sale are carried at the lower of aggregate cost or estimated fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Gains and losses on sales of loans are recognized at settlement dates and are determined by the difference between the sales proceeds and the carrying amount of the loans after allocating cost to servicing rights retained. | |||||||||||
The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. To avoid interest rate risk, the Company also enters into mortgage loan sales commitments at the time it makes the interest rate lock commitment. Accordingly, such commitments along with any related fees received from potential borrowers are recorded at fair value, with changes in fair value recorded in the net gain or loss on sale of mortgage loans. Fair value is based on the change in estimated fair value of the underlying mortgage loan. The fair value is subject to change primarily due to changes in interest rates and is considered immaterial to the Consolidated Financial Statements. | |||||||||||
Loan servicing | ' | ||||||||||
Loan servicing | |||||||||||
Servicing assets are recognized as separate assets when rights are acquired or retained through the sale of mortgage loans. Mortgage servicing rights are initially recorded at fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. Capitalized servicing rights are reported in other assets and are amortized into other income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. | |||||||||||
Mortgage servicing rights are periodically evaluated for impairment based on the fair value of those rights as compared to book value. Fair values are estimated using discounted cash flows based on current expected future prepayment rates. For purposes of measuring impairment, the rights must be stratified by one or more predominant risk characteristics of the underlying loans. The Company stratifies its capitalized mortgage servicing rights based on the origination date, interest rate, and type of the underlying loans. The amount of impairment recognized is the amount, if any, by which the amortized cost of the rights for each stratum exceeds its fair value. If the Company later determines that all or a portion of the impairment no longer exists for a particular group of loans, a reduction of the allowance may be recorded as an increase to income. | |||||||||||
Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. | |||||||||||
Loans | ' | ||||||||||
Loans | |||||||||||
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at the amount of outstanding unpaid principal, adjusted for chargeoffs, the allowance for loan losses, and any deferred origination fees or costs on loans. | |||||||||||
Loan origination fees, net of certain direct loan origination costs, are deferred and the net amount is amortized as an adjustment of the related loan’s yield. The Company is generally amortizing these amounts over the contractual life. However, for long-term, fixed-rate residential mortgages, the Company has anticipated prepayments and assumes an estimated economic life of 5 years or less. Commitment fees and costs are generally based upon a percentage of a customer’s maximum line of credit or fees related to standby letters of credit and are recognized as collected. | |||||||||||
Interest is accrued daily on the outstanding balances. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. Past due status is based on the contractual terms of the loan. | |||||||||||
Interest accrued in the current year but not collected for loans that are placed on non-accrual status or charged-off is reversed against interest income. Interest accrued during the prior year but not collected for loans that are placed on non-accrual status or charged-off is charged against the allowance for loan losses. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |||||||||||
Allowance for loan losses | ' | ||||||||||
Allowance for loan losses | |||||||||||
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance for loan losses when management believes the uncollectibility of the loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. | |||||||||||
The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | |||||||||||
In addition, regulatory agencies, as an integral part of their examination process, periodically review the allowance for loan losses, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. | |||||||||||
The allowance consists of specific and general components. The specific component considers loans that are classified as impaired. For such loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying amount of that loan. The general component covers non-classified loans and classified loans not considered impaired, and is based on historical loss experience adjusted for qualitative factors. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss experience. | |||||||||||
Premises and equipment | ' | ||||||||||
Premises and equipment | |||||||||||
Land is stated at cost less accumulated depreciation of depreciable land improvements. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. The estimated useful lives for premises and equipment are: | |||||||||||
Asset Description | Estimated Useful Life | ||||||||||
Buildings and improvements | 3 – 40 years | ||||||||||
Furniture and equipment | 3 – 10 years | ||||||||||
Long-lived assets | ' | ||||||||||
Long-lived assets | |||||||||||
Long-lived assets, including premises and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss would be recognized when estimated undiscounted future cash flows from operations of the asset are less than the carrying value of the asset. The cash flows used for this analysis are those directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the asset. An impairment loss would be measured by the amount by which the carrying value of the asset exceeds its fair value. | |||||||||||
Other real estate owned | ' | ||||||||||
Other real estate owned | |||||||||||
Other real estate owned (“OREO”) represents properties acquired through foreclosure or other proceedings in settlement of loans. OREO is held for sale and is recorded at the date of foreclosure at the fair value of the properties less estimated costs of disposal, which establishes a new cost basis. Any adjustment to fair value at the time of transfer to OREO is charged to the allowance for loan losses. Property is evaluated regularly to ensure the recorded amount is supported by its current fair value, and valuation allowances to reduce the carrying amount to fair value less estimated costs to dispose are recorded as necessary. Revenue, expense, gains and losses from the operations of foreclosed assets are included in operations. | |||||||||||
Goodwill | ' | ||||||||||
Goodwill | |||||||||||
Goodwill represents the excess of the cost of a business acquired over the fair value of the new assets acquired. Goodwill is not amortized, but is subject to at least annual impairment assessments. The Company has established December 31 as the annual impairment assessment date. Accounting standards allow for goodwill to be tested for impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, then the reporting unit’s carrying value is compared to its fair value. The Company estimates the fair value of its reporting units as of the measurement date utilizing valuation methodologies including the comparable transactions approach and the control premium approach. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. There was no impairment determined at December 31, 2013 and 2012. It is possible the Company will evaluate its goodwill for impairment on a more frequent basis than annually. Future evaluations may result in impairment. | |||||||||||
See Note 7 — Goodwill and Other Intangible Assets for further discussion. | |||||||||||
Cash surrender value of bank-owned life insurance | ' | ||||||||||
Cash surrender value of bank-owned life insurance | |||||||||||
The Company has purchased life insurance policies on certain executives and senior officers. Life insurance is recorded at its cash surrender value. | |||||||||||
ASC Topic 715, “Compensation—Retirement Benefits” requires an employer to recognize a liability for post-employment benefits promised to an employee based on an arrangement between an employer and an employee. In an endorsement split-dollar arrangement, the employer owns and controls the policy, and the employer and employee split the life insurance policy’s cash surrender value and/or death benefits. If the employer agrees to maintain a life insurance policy during the employee’s retirement, the present value of the cost of maintaining the insurance policy would be accrued over the employee’s active service period. Similarly, if the employer agrees to provide the employee with a death benefit, the present value of the death benefit would be accrued over the employee’s active service period. | |||||||||||
Transfers of financial assets | ' | ||||||||||
Transfers of financial assets | |||||||||||
Transfers of financial assets are accounted for as sales only when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the assets it received, and no condition both constrains the transferee from taking advantage of its right to pledge or exchange and provides more than a modest benefit to the transferor, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. | |||||||||||
Income taxes | ' | ||||||||||
Income taxes | |||||||||||
The Company is subject to income taxes in the U.S. federal and various state jurisdictions. The Company and its subsidiaries file consolidated federal and state income tax returns with each subsidiary computing its taxes on a separate entity basis. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state or local tax examinations by tax authorities for the years before 2009. The provision for income taxes is based on income as reported in the Consolidated Financial Statements. | |||||||||||
The Company has maintained significant net deferred tax assets for deductible temporary differences, the largest of which relates to the net operating loss carryforward and the allowance for loan losses. For income tax return purposes, only actual charge-offs are deductible, not the provision for loan losses. Under generally accepted accounting principles, a valuation allowance is required to be recognized if it is “more likely than not” that the deferred tax assets will not be realized. The determination of the recoverability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, the forecasts of future income, applicable tax planning strategies, and assessments of the current and future economic and business conditions. The Company considers both positive and negative evidence regarding the ultimate recoverability of its deferred tax assets. Positive evidence includes available tax planning strategies and the probability that taxable income will continue to be generated in future periods, as it was in periods since March 31, 2010, while negative evidence includes a cumulative loss in 2009 and 2008 and certain business and economic trends. The Company evaluated the recoverability of its net deferred tax assets and established a valuation allowance for certain state net operating loss and credit carryforwards that are not expected to be fully realized. Management believes that it is more likely than not that the other deferred tax assets included in the accompanying Consolidated Financial Statements will be fully realized. The Company determined that no valuation allowance was required for any other deferred tax assets as of December 31, 2013, although there is no guarantee that those assets will be recognizable in future periods. | |||||||||||
The Company must assess the likelihood that any deferred tax assets will be realized through the reduction of taxes in future periods and establish a valuation allowance for those assets for which recovery is not more likely than not. In making this assessment, the Company must make judgments and estimates regarding the ability to realize the asset through the future reversal of existing taxable temporary differences, future taxable income, and the possible application of future tax planning strategies. The Company’s evaluation gave consideration to the fact that all net operating loss carrybacks have been utilized. Therefore, utilization of net operating loss carryforwards are dependent on implementation of tax strategies and continued profitability. | |||||||||||
Positions taken in tax returns may be subject to challenge upon examination by the taxing authorities. Uncertain tax positions are initially recognized in the Financial Statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are both initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with the tax authority, assuming full knowledge of the position and all relevant facts. When applicable, the Company recognizes interest accrued related to unrecognized tax benefits and penalties in operating expenses. The Company had no accruals for payments of interest and penalties at December 31, 2013 and 2012. | |||||||||||
At December 31, 2013, the Company was not under examination by any tax authority; however, the Company has received notice that the Illinois Department of Revenue intends to audit the Company’s 2011 income tax filing beginning in the first quarter of 2014. | |||||||||||
Reclassifications | ' | ||||||||||
Reclassifications | |||||||||||
Reclassifications have been made to certain prior year account balances, with no effect on net income or stockholders’ equity, to be consistent with the classifications adopted as of and for the year ended December 31, 2013. | |||||||||||
Stock-based employee compensation | ' | ||||||||||
Stock-based employee compensation | |||||||||||
During the second quarter of 2010, the Company adopted the First Busey Corporation 2010 Equity Incentive Plan (“2010 Equity Plan”), which was approved at the annual stockholders meeting on May 19, 2010. The Company will no longer make any additional grants under prior plans. | |||||||||||
The Company’s equity incentive plans are designed to encourage ownership of its common stock by its employees and directors, to provide additional incentive for them to promote the success of the Company’s business, and to attract and retain talented personnel. All of the Company’s employees and directors and those of its subsidiaries are eligible to receive awards under the plans. See Note 16 — Stock Incentive Plans for further discussion. | |||||||||||
The Company calculates the compensation cost of its non-vested stock awards (restricted stock units) based on the Company’s stock price on the grant date multiplied by the number of units granted. This cost is recorded over a specified requisite service period (i.e. vesting period) ranging from one to five years. As the units cliff vest and are subject only to a service condition, the cost is recorded using straight-line amortization. No compensation cost is recognized for unvested awards that are forfeited. | |||||||||||
Segment disclosure | ' | ||||||||||
Segment disclosure | |||||||||||
Operating segments are components of a business that (i) engage in business activities from which it may earn revenues and incur expenses; (ii) have operating results that are reviewed regularly by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance; and (iii) for which discrete financial information is available. The Company’s segments are its three primary operating subsidiaries Busey Bank, FirsTech and Busey Wealth Management. | |||||||||||
Earnings per share | ' | ||||||||||
Earnings per share | |||||||||||
Basic earnings per share are computed by dividing net income available to common stockholders for the year by the weighted average number of shares outstanding. | |||||||||||
Diluted earnings per share are determined by dividing net income available to common stockholders for the period by the weighted average number of shares of common stock and common stock equivalents outstanding. Common stock equivalents assume exercise of stock options, warrants and vesting of restricted stock units and use of proceeds to purchase treasury stock at the average market price for the period. If the average market price for the period is less than the strike price of a stock option or warrant, that option or warrant is considered anti-dilutive and is excluded from the calculation of common stock equivalents. If the total employee proceeds of a restricted stock unit exceed the average market price for the period, that restricted stock unit is considered anti-dilutive and is excluded from the calculation of common stock equivalents. At December 31, 2013, 643,879 outstanding options, 573,833 warrants, and 347,253 restricted stock units were anti-dilutive and excluded from the calculation of common stock equivalents. At December 31, 2012, 804,968 outstanding options, 573,833 warrants, and 793,332 restricted stock units were anti-dilutive and excluded from the calculation of common stock equivalents. | |||||||||||
The following reflects net income per share calculations for basic and diluted methods: | |||||||||||
For the Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands, except per share data) | |||||||||||
Net income available to common stockholders | $ | 25,093 | $ | 18,724 | $ | 24,531 | |||||
Weighted average common shares outstanding | 86,765 | 86,643 | 85,304 | ||||||||
Dilutive effect of outstanding options, warrants and restricted stock units as determined by the application of the treasury stock method | 299 | 9 | 8 | ||||||||
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation | 87,064 | 86,652 | 85,312 | ||||||||
Basic earnings per common share | $ | 0.29 | $ | 0.22 | $ | 0.29 | |||||
Diluted earnings per common share | $ | 0.29 | $ | 0.22 | $ | 0.29 | |||||
Subsequent events | ' | ||||||||||
Subsequent events | |||||||||||
The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the Consolidated Financial Statements included in this Annual Report on Form 10-K were issued. There were no significant subsequent events for the year ended December 31, 2013 through the date of these Consolidated Financial Statements. | |||||||||||
Impact of new financial accounting standards | ' | ||||||||||
Impact of new financial accounting standards | |||||||||||
ASU 2011-11, “Balance Sheet (Topic 210) — Disclosures about Offsetting Assets and Liabilities.” ASU 2011-11 amends Topic 210, “Balance Sheet,” to require an entity to disclose both gross and net information about financial instruments, such as sales and repurchase agreements and reverse sale and repurchase agreements. ASU 2011-11 became effective for the Company on January 1, 2013 and did not have a significant impact of the Company’s financial statements. | |||||||||||
ASU 2013-02, “Comprehensive Income (Topic 220) — Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU 2013-02 amends guidance related to the reporting of comprehensive income to enhance the reporting of reclassifications out of accumulated other comprehensive income. ASU 2013-02 became effective for the Company on January 1, 2013 and did not have a significant impact on the Company’s financial statements. | |||||||||||
ASU 2013-12, “Definition of a Public Business Entity - An Addition to the Master Glossary.” ASU 2013-12 amends the Master Glossary of the FASB Accounting Standards Codification to include a single definition of public business entity for use in future financial and reporting guidance. ASU 2013-12 did not have an impact on the Company’s financial statements. | |||||||||||
ASU 2014-04, “Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” ASU 2014-14 clarifies when an in-substance repossession or foreclosure occurs and requires interim and annual disclosures. The new authoritative guidance will be for reporting periods after January 1, 2015 and is not expected to have a significant impact on the Company’s financial statements. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Significant Accounting Policies | ' | ||||||||||
Schedule of estimated useful lives for premises and equipment | ' | ||||||||||
Asset Description | Estimated Useful Life | ||||||||||
Buildings and improvements | 3 – 40 years | ||||||||||
Furniture and equipment | 3 – 10 years | ||||||||||
Schedule of net income per share calculations for basic and diluted methods | ' | ||||||||||
For the Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands, except per share data) | |||||||||||
Net income available to common stockholders | $ | 25,093 | $ | 18,724 | $ | 24,531 | |||||
Weighted average common shares outstanding | 86,765 | 86,643 | 85,304 | ||||||||
Dilutive effect of outstanding options, warrants and restricted stock units as determined by the application of the treasury stock method | 299 | 9 | 8 | ||||||||
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation | 87,064 | 86,652 | 85,312 | ||||||||
Basic earnings per common share | $ | 0.29 | $ | 0.22 | $ | 0.29 | |||||
Diluted earnings per common share | $ | 0.29 | $ | 0.22 | $ | 0.29 |
Securities_Tables
Securities (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Securities | ' | |||||||||||||||||||
Schedule of amortized cost, unrealized gains and losses and fair values of securities classified available for sale and held to maturity | ' | |||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
December 31, 2013: | Cost | Gains | Losses | Value | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||
U.S. Treasury securities | $ | 102,463 | $ | 244 | $ | (67 | ) | $ | 102,640 | |||||||||||
Obligations of U.S. government corporations and agencies | 254,998 | 2,741 | (328 | ) | 257,411 | |||||||||||||||
Obligations of states and political subdivisions | 272,077 | 2,887 | (2,812 | ) | 272,152 | |||||||||||||||
Residential mortgage-backed securities | 174,699 | 3,571 | (535 | ) | 177,735 | |||||||||||||||
Corporate debt securities | 25,384 | 155 | (33 | ) | 25,506 | |||||||||||||||
Total debt securities | 829,621 | 9,598 | (3,775 | ) | 835,444 | |||||||||||||||
Mutual funds and other equity securities | 4,114 | 1,752 | — | 5,866 | ||||||||||||||||
Total | $ | 833,735 | $ | 11,350 | $ | (3,775 | ) | $ | 841,310 | |||||||||||
December 31, 2013: | ||||||||||||||||||||
Held to maturity | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 834 | $ | 1 | $ | (4 | ) | $ | 831 | |||||||||||
Total | $ | 834 | $ | 1 | $ | (4 | ) | $ | 831 | |||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
December 31, 2012: | Cost | Gains | Losses | Value | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||
U.S. Treasury securities | $ | 103,353 | $ | 1,303 | $ | — | $ | 104,656 | ||||||||||||
Obligations of U.S. government corporations and agencies | 363,583 | 6,616 | (5 | ) | 370,194 | |||||||||||||||
Obligations of states and political subdivisions | 274,350 | 6,176 | (238 | ) | 280,288 | |||||||||||||||
Residential mortgage-backed securities | 210,139 | 7,576 | — | 217,715 | ||||||||||||||||
Corporate debt securities | 24,601 | 139 | (26 | ) | 24,714 | |||||||||||||||
Total debt securities | 976,026 | 21,810 | (269 | ) | 997,567 | |||||||||||||||
Mutual funds and other equity securities | 2,451 | 1,479 | — | 3,930 | ||||||||||||||||
Total | $ | 978,477 | $ | 23,289 | $ | (269 | ) | $ | 1,001,497 | |||||||||||
Schedule of amortized cost and fair value of debt securities available for sale and held to maturity by contractual maturity | ' | |||||||||||||||||||
Available for sale | Held to maturity | |||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||||
(dollars in thousands) | (dollars in thousands) | |||||||||||||||||||
Due in one year or less | $ | 140,414 | $ | 141,464 | $ | — | $ | — | ||||||||||||
Due after one year through five years | 451,993 | 454,381 | 321 | 322 | ||||||||||||||||
Due after five years through ten years | 163,885 | 165,378 | 513 | 509 | ||||||||||||||||
Due after ten years | 73,329 | 74,221 | — | — | ||||||||||||||||
Total | $ | 829,621 | $ | 835,444 | $ | 834 | $ | 831 | ||||||||||||
Schedule of realized gains and losses related to sales of securities available for sale | ' | |||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Gross security gains | $ | 599 | $ | 1,602 | $ | 174 | ||||||||||||||
Gross security (losses) | (46 | ) | (5 | ) | (4 | ) | ||||||||||||||
Net security gains | $ | 553 | $ | 1,597 | $ | 170 | ||||||||||||||
Schedule of securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in continuous loss position | ' | |||||||||||||||||||
Continuous unrealized | Continuous unrealized | Total, gross | ||||||||||||||||||
losses existing for less than | losses existing for greater | |||||||||||||||||||
12 months, gross | than 12 months, gross | |||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
December 31, 2013: | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||
U.S. Treasury securities | $ | 25,830 | $ | 67 | $ | — | $ | — | $ | 25,830 | $ | 67 | ||||||||
Obligations of U.S. government corporations and agencies | 25,946 | 328 | — | — | 25,946 | 328 | ||||||||||||||
Obligations of states and political subdivisions | 92,703 | 2,518 | 8,492 | 294 | 101,195 | 2,812 | ||||||||||||||
Residential mortgage-backed securities | 53,543 | 535 | — | — | 53,543 | 535 | ||||||||||||||
Corporate debt securities | 1,614 | 33 | — | — | 1,614 | 33 | ||||||||||||||
Total temporarily impaired securities | $ | 199,636 | $ | 3,481 | $ | 8,492 | $ | 294 | $ | 208,128 | $ | 3,775 | ||||||||
December 31, 2013: | ||||||||||||||||||||
Held to maturity | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 597 | $ | 4 | $ | — | $ | — | $ | 597 | $ | 4 | ||||||||
Total temporarily impaired securities | $ | 597 | $ | 4 | $ | — | $ | — | $ | 597 | $ | 4 | ||||||||
Continuous unrealized | Continuous unrealized | Total, gross | ||||||||||||||||||
losses existing for lessthan | losses existing for greater | |||||||||||||||||||
12 months, gross | than 12 months, gross | |||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
December 31, 2012: | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Available for sale | ||||||||||||||||||||
Obligations of U.S. government corporations and agencies | $ | 10,155 | $ | 5 | $ | — | $ | — | $ | 10,155 | $ | 5 | ||||||||
Obligations of states and political subdivisions | 37,958 | 189 | 3,311 | 49 | 41,269 | 238 | ||||||||||||||
Corporate debt securities | 15,207 | 26 | — | — | 15,207 | 26 | ||||||||||||||
Total temporarily impaired securities | $ | 63,320 | $ | 220 | $ | 3,311 | $ | 49 | $ | 66,631 | $ | 269 | ||||||||
General obligation bonds | ' | |||||||||||||||||||
Securities | ' | |||||||||||||||||||
Summary of amortized cost and fair values of the Company's portfolio of municipal bonds by issuer state | ' | |||||||||||||||||||
December 31, 2013: | ||||||||||||||||||||
Average Exposure | ||||||||||||||||||||
Number of | Per Issuer | Amortized | Fair | |||||||||||||||||
U.S. State | Issuers | (Fair Value) | Cost | Value | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois | 82 | $ | 1,022 | $ | 82,884 | $ | 83,804 | |||||||||||||
Wisconsin | 41 | 1,052 | 43,117 | 43,122 | ||||||||||||||||
Michigan | 37 | 956 | 35,350 | 35,365 | ||||||||||||||||
Pennsylvania | 11 | 1,285 | 14,132 | 14,133 | ||||||||||||||||
Ohio | 12 | 952 | 11,709 | 11,426 | ||||||||||||||||
Texas | 7 | 1,039 | 7,510 | 7,270 | ||||||||||||||||
Iowa | 3 | 2,020 | 6,126 | 6,060 | ||||||||||||||||
Other | 26 | 857 | 21,865 | 22,290 | ||||||||||||||||
Total general obligations bonds | 219 | $ | 1,020 | $ | 222,693 | $ | 223,470 | |||||||||||||
December 31, 2012: | ||||||||||||||||||||
Average Exposure | ||||||||||||||||||||
Number of | Per Issuer | Amortized | Fair | |||||||||||||||||
U.S. State | Issuers | (Fair Value) | Cost | Value | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois | 97 | $ | 1,008 | $ | 94,614 | $ | 97,812 | |||||||||||||
Wisconsin | 42 | 1,114 | 46,286 | 46,794 | ||||||||||||||||
Michigan | 35 | 949 | 32,572 | 33,200 | ||||||||||||||||
Pennsylvania | 9 | 1,332 | 11,926 | 11,987 | ||||||||||||||||
Ohio | 11 | 900 | 9,871 | 9,905 | ||||||||||||||||
Other | 33 | 876 | 27,741 | 28,908 | ||||||||||||||||
Total general obligations bonds | 227 | $ | 1,007 | $ | 223,010 | $ | 228,606 | |||||||||||||
Revenue bonds | ' | |||||||||||||||||||
Securities | ' | |||||||||||||||||||
Summary of amortized cost and fair values of the Company's portfolio of municipal bonds by issuer state | ' | |||||||||||||||||||
December 31, 2013: | ||||||||||||||||||||
Average Exposure | ||||||||||||||||||||
Number of | Per Issuer | Amortized | Fair | |||||||||||||||||
U.S. State | Issuers | (Fair Value) | Cost | Value | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois | 4 | $ | 1,780 | $ | 7,356 | $ | 7,121 | |||||||||||||
Indiana | 14 | 1,034 | 14,740 | 14,481 | ||||||||||||||||
Other | 30 | 930 | 28,122 | 27,911 | ||||||||||||||||
Total revenue bonds | 48 | $ | 1,032 | $ | 50,218 | $ | 49,513 | |||||||||||||
December 31, 2012: | ||||||||||||||||||||
Average Exposure | ||||||||||||||||||||
Number of | Per Issuer | Amortized | Fair | |||||||||||||||||
U.S. State | Issuers | (Fair Value) | Cost | Value | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois | 4 | $ | 1,961 | $ | 7,832 | $ | 7,842 | |||||||||||||
Indiana | 11 | 853 | 9,339 | 9,378 | ||||||||||||||||
Other | 34 | 1,014 | 34,169 | 34,462 | ||||||||||||||||
Total revenue bonds | 49 | $ | 1,055 | $ | 51,340 | $ | 51,682 |
Loans_Tables
Loans (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Loans | ' | |||||||||||||||||||
Schedule of geographic distributions of loans | ' | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Illinois | Florida | Indiana | Total | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Commercial | $ | 530,174 | $ | 20,536 | $ | 29,902 | $ | 580,612 | ||||||||||||
Commercial real estate | 800,568 | 160,255 | 131,450 | 1,092,273 | ||||||||||||||||
Real estate construction | 55,190 | 17,426 | 6,239 | 78,855 | ||||||||||||||||
Retail real estate | 419,801 | 103,104 | 11,588 | 534,493 | ||||||||||||||||
Retail other | 8,422 | 552 | 93 | 9,067 | ||||||||||||||||
Total | $ | 1,814,155 | $ | 301,873 | $ | 179,272 | $ | 2,295,300 | ||||||||||||
Less held for sale(1) | 13,840 | |||||||||||||||||||
$ | 2,281,460 | |||||||||||||||||||
Less allowance for loan losses | 47,567 | |||||||||||||||||||
Net loans | $ | 2,233,893 | ||||||||||||||||||
(1) Loans held for sale are included in retail real estate. | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Illinois | Florida | Indiana | Total | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Commercial | $ | 399,300 | $ | 10,861 | $ | 23,527 | $ | 433,688 | ||||||||||||
Commercial real estate | 777,752 | 138,170 | 65,210 | 981,132 | ||||||||||||||||
Real estate construction | 67,152 | 15,972 | 2,977 | 86,101 | ||||||||||||||||
Retail real estate | 435,911 | 112,052 | 11,873 | 559,836 | ||||||||||||||||
Retail other | 11,831 | 409 | 113 | 12,353 | ||||||||||||||||
Total | $ | 1,691,946 | $ | 277,464 | $ | 103,700 | $ | 2,073,110 | ||||||||||||
Less held for sale(1) | 40,003 | |||||||||||||||||||
$ | 2,033,107 | |||||||||||||||||||
Less allowance for loan losses | 48,012 | |||||||||||||||||||
Net loans | $ | 1,985,095 | ||||||||||||||||||
(1) Loans held for sale are included in retail real estate. | ||||||||||||||||||||
Schedule of weighted average risk grades segregated by class of loans (excluding held-for-sale, non posted and clearings) | ' | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Weighted Avg. | Grades | Grade | Grade | Grade | Grade | |||||||||||||||
Risk Grade | 1,3,6 | 7 | 8 | 9 | 10 | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | 4.66 | $ | 487,587 | $ | 46,992 | $ | 15,986 | $ | 8,536 | $ | 975 | |||||||||
Commercial real estate | 5.55 | 799,117 | 79,371 | 19,327 | 29,606 | 4,597 | ||||||||||||||
Real estate construction | 7.11 | 21,585 | 16,376 | 11,920 | 7,686 | 3,862 | ||||||||||||||
Retail real estate | 3.53 | 393,299 | 9,285 | 5,392 | 4,408 | 3,936 | ||||||||||||||
Retail other | 2.64 | 8,451 | 60 | — | 4 | — | ||||||||||||||
Total Illinois/Indiana | $ | 1,710,039 | $ | 152,084 | $ | 52,625 | $ | 50,240 | $ | 13,370 | ||||||||||
Florida | ||||||||||||||||||||
Commercial | 5.89 | $ | 16,460 | $ | 174 | $ | 3,218 | $ | 684 | $ | — | |||||||||
Commercial real estate | 6.02 | 116,741 | 16,470 | 11,250 | 12,721 | 3,073 | ||||||||||||||
Real estate construction | 6.64 | 7,886 | 7,961 | 743 | 836 | — | ||||||||||||||
Retail real estate | 3.85 | 77,116 | 12,052 | 9,417 | 3,050 | 721 | ||||||||||||||
Retail other | 1.72 | 552 | — | — | — | — | ||||||||||||||
Total Florida | $ | 218,755 | $ | 36,657 | $ | 24,628 | $ | 17,291 | $ | 3,794 | ||||||||||
Total | $ | 1,928,794 | $ | 188,741 | $ | 77,253 | $ | 67,531 | $ | 17,164 | ||||||||||
December 31, 2012 | ||||||||||||||||||||
Weighted Avg. | Grades | Grade | Grade | Grade | Grade | |||||||||||||||
Risk Grade | 1,3,6 | 7 | 8 | 9 | 10 | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | 4.68 | $ | 346,536 | $ | 46,201 | $ | 12,374 | $ | 15,677 | $ | 2,039 | |||||||||
Commercial real estate | 5.53 | 644,695 | 110,012 | 50,305 | 28,655 | 9,295 | ||||||||||||||
Real estate construction | 7.21 | 30,710 | 7,809 | 14,162 | 14,084 | 3,364 | ||||||||||||||
Retail real estate | 3.62 | 385,949 | 6,729 | 7,806 | 5,874 | 2,855 | ||||||||||||||
Retail other | 3.34 | 11,563 | 372 | — | 9 | — | ||||||||||||||
Total Illinois/Indiana | $ | 1,419,453 | $ | 171,123 | $ | 84,647 | $ | 64,299 | $ | 17,553 | ||||||||||
Florida | ||||||||||||||||||||
Commercial | 5.91 | $ | 6,359 | $ | 3,544 | $ | 162 | $ | 796 | $ | — | |||||||||
Commercial real estate | 6.36 | 80,232 | 20,667 | 13,238 | 19,279 | 4,754 | ||||||||||||||
Real estate construction | 6.97 | 4,137 | 7,721 | 3,172 | 942 | — | ||||||||||||||
Retail real estate | 3.98 | 83,578 | 6,369 | 13,225 | 3,265 | 2,797 | ||||||||||||||
Retail other | 2.8 | 391 | — | 18 | — | — | ||||||||||||||
Total Florida | $ | 174,697 | $ | 38,301 | $ | 29,815 | $ | 24,282 | $ | 7,551 | ||||||||||
Total | $ | 1,594,150 | $ | 209,424 | $ | 114,462 | $ | 88,581 | $ | 25,104 | ||||||||||
Schedule of age analysis of past due loans still accruing and non-accrual loans | ' | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Loans past due, still accruing | Non-accrual | |||||||||||||||||||
30-59 Days | 60-89 Days | 90+Days | Loans | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | $ | 906 | $ | 279 | $ | 92 | $ | 975 | ||||||||||||
Commercial real estate | 567 | 3,736 | — | 4,597 | ||||||||||||||||
Real estate construction | — | — | — | 3,862 | ||||||||||||||||
Retail real estate | 483 | 123 | 103 | 3,936 | ||||||||||||||||
Retail other | 20 | — | — | — | ||||||||||||||||
Total Illinois/Indiana | $ | 1,976 | $ | 4,138 | $ | 195 | $ | 13,370 | ||||||||||||
Florida | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Commercial real estate | — | — | — | 3,073 | ||||||||||||||||
Real estate construction | — | — | — | — | ||||||||||||||||
Retail real estate | — | — | — | 721 | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Florida | $ | — | $ | — | $ | — | $ | 3,794 | ||||||||||||
Total | $ | 1,976 | $ | 4,138 | $ | 195 | $ | 17,164 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||
Loans past due, still accruing | Non-accrual | |||||||||||||||||||
30-59 Days | 60-89 Days | 90+Days | Loans | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | $ | 111 | $ | 80 | $ | 19 | $ | 2,039 | ||||||||||||
Commercial real estate | 216 | 59 | 139 | 9,295 | ||||||||||||||||
Real estate construction | — | — | — | 3,364 | ||||||||||||||||
Retail real estate | 1,154 | 294 | 46 | 2,855 | ||||||||||||||||
Retail other | 2 | 2 | — | — | ||||||||||||||||
Total Illinois/Indiana | $ | 1,483 | $ | 435 | $ | 204 | $ | 17,553 | ||||||||||||
Florida | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Commercial real estate | — | — | — | 4,754 | ||||||||||||||||
Real estate construction | — | — | — | — | ||||||||||||||||
Retail real estate | 364 | — | 52 | 2,797 | ||||||||||||||||
Retail other | — | 3 | — | — | ||||||||||||||||
Total Florida | $ | 364 | $ | 3 | $ | 52 | $ | 7,551 | ||||||||||||
Total | $ | 1,847 | $ | 438 | $ | 256 | $ | 25,104 | ||||||||||||
Schedule of restructured loans | ' | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Restructured loans: | ||||||||||||||||||||
In compliance with modified terms | $ | 11,511 | $ | 22,023 | ||||||||||||||||
30 — 89 days past due | 380 | 28 | ||||||||||||||||||
Included in non-performing loans | 5,919 | 6,458 | ||||||||||||||||||
Total | $ | 17,810 | $ | 28,509 | ||||||||||||||||
Schedule of performing loans classified as TDRs, segregated by class and geography | ' | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, 2013 | December 31, 2013 | |||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||
contracts | investment | contracts | investment | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | 1 | $ | 98 | 1 | $ | 98 | ||||||||||||||
Commercial real estate | 1 | 246 | 2 | 465 | ||||||||||||||||
Real estate construction | — | — | — | — | ||||||||||||||||
Retail real estate | 1 | 16 | 1 | 16 | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Illinois/Indiana | 3 | $ | 360 | 4 | $ | 579 | ||||||||||||||
Florida | ||||||||||||||||||||
Commercial | — | $ | — | — | $ | — | ||||||||||||||
Commercial real estate | — | — | 1 | 87 | ||||||||||||||||
Real estate construction | — | — | — | — | ||||||||||||||||
Retail real estate | — | — | — | — | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Florida | — | $ | — | 1 | $ | 87 | ||||||||||||||
Total | 3 | $ | 360 | 5 | $ | 666 | ||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, 2012 | December 31, 2012 | |||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||
contracts | investment | contracts | investment | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | 1 | $ | 752 | 4 | $ | 2,032 | ||||||||||||||
Commercial real estate | 1 | 600 | 2 | 2,669 | ||||||||||||||||
Real estate construction | — | — | 2 | 3,029 | ||||||||||||||||
Retail real estate | — | — | 9 | 1,476 | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Illinois/Indiana | 2 | $ | 1,352 | 17 | $ | 9,206 | ||||||||||||||
Florida | ||||||||||||||||||||
Commercial | — | $ | — | — | $ | — | ||||||||||||||
Commercial real estate | 1 | 571 | 1 | 571 | ||||||||||||||||
Real estate construction | — | — | — | — | ||||||||||||||||
Retail real estate | 1 | 178 | 3 | 880 | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Florida | 2 | $ | 749 | 4 | $ | 1,451 | ||||||||||||||
Total | 4 | $ | 2,101 | 21 | $ | 10,657 | ||||||||||||||
Schedule of performing loans, segregated by class and geography, modified as TDRs | ' | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, 2013 | December 31, 2013 | |||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||
contracts | investment | contracts | investment | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | — | $ | — | — | $ | — | ||||||||||||||
Commercial real estate | — | — | 1 | 1,650 | ||||||||||||||||
Real estate construction | — | — | 1 | 222 | ||||||||||||||||
Retail real estate | — | — | 1 | 548 | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Illinois/Indiana | — | $ | — | 3 | $ | 2,420 | ||||||||||||||
Florida | ||||||||||||||||||||
Commercial | — | $ | — | — | $ | — | ||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||
Real estate construction | — | — | — | — | ||||||||||||||||
Retail real estate | — | — | — | — | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Florida | — | $ | — | — | $ | — | ||||||||||||||
Total | — | $ | — | 3 | $ | 2,420 | ||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, 2012 | December 31, 2012 | |||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||
contracts | investment | contracts | investment | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | — | $ | — | 5 | $ | 309 | ||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||
Real estate construction | — | — | — | — | ||||||||||||||||
Retail real estate | 1 | 232 | 1 | 232 | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Illinois/Indiana | 1 | $ | 232 | 6 | $ | 541 | ||||||||||||||
Florida | ||||||||||||||||||||
Commercial | — | $ | — | — | $ | — | ||||||||||||||
Commercial real estate | — | — | 3 | 1,287 | ||||||||||||||||
Real estate construction | — | — | — | — | ||||||||||||||||
Retail real estate | 1 | 142 | 4 | 778 | ||||||||||||||||
Retail other | — | — | — | — | ||||||||||||||||
Total Florida | 1 | $ | 142 | 7 | $ | 2,065 | ||||||||||||||
Total | 2 | $ | 374 | 13 | $ | 2,606 | ||||||||||||||
Schedule of details of impaired loans, segregated by class and geography | ' | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Unpaid | Recorded | |||||||||||||||||||
Contractual | Investment | Recorded | Total | Average | ||||||||||||||||
Principal | with No | Investment | Recorded | Related | Recorded | |||||||||||||||
Balance | Allowance | with Allowance | Investment | Allowance | Investment | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | $ | 2,825 | $ | 1,684 | $ | 602 | $ | 2,286 | $ | 485 | $ | 4,169 | ||||||||
Commercial real estate | 8,866 | 3,671 | 3,740 | 7,411 | 1,977 | 10,335 | ||||||||||||||
Real estate construction | 4,932 | 2,292 | 1,570 | 3,862 | 468 | 5,889 | ||||||||||||||
Retail real estate | 5,583 | 3,267 | 2,010 | 5,277 | 604 | 5,296 | ||||||||||||||
Retail other | — | — | — | — | — | — | ||||||||||||||
Total Illinois/Indiana | $ | 22,206 | $ | 10,914 | $ | 7,922 | $ | 18,836 | $ | 3,534 | $ | 25,689 | ||||||||
Florida | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Commercial real estate | 7,108 | 3,946 | 1,319 | 5,265 | 416 | 6,662 | ||||||||||||||
Real estate construction | 417 | 417 | — | 417 | — | 1,294 | ||||||||||||||
Retail real estate | 10,346 | 9,005 | 537 | 9,542 | 337 | 11,079 | ||||||||||||||
Retail other | — | — | — | — | — | — | ||||||||||||||
Total Florida | $ | 17,871 | $ | 13,368 | $ | 1,856 | $ | 15,224 | $ | 753 | $ | 19,035 | ||||||||
Total | $ | 40,077 | $ | 24,282 | $ | 9,778 | $ | 34,060 | $ | 4,287 | $ | 44,724 | ||||||||
December 31, 2012 | ||||||||||||||||||||
Unpaid | Recorded | |||||||||||||||||||
Contractual | Investment | Recorded | Total | Average | ||||||||||||||||
Principal | with No | Investment | Recorded | Related | Recorded | |||||||||||||||
Balance | Allowance | with Allowance | Investment | Allowance | Investment | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Commercial | $ | 11,557 | $ | 7,214 | $ | 265 | $ | 7,479 | $ | 265 | $ | 10,109 | ||||||||
Commercial real estate | 17,656 | 12,020 | 1,288 | 13,308 | 634 | 14,607 | ||||||||||||||
Real estate construction | 6,851 | 6,394 | — | 6,394 | — | 8,625 | ||||||||||||||
Retail real estate | 6,251 | 4,666 | 530 | 5,196 | 140 | 5,206 | ||||||||||||||
Retail other | — | — | — | — | — | 24 | ||||||||||||||
Total Illinois/Indiana | $ | 42,315 | $ | 30,294 | $ | 2,083 | $ | 32,377 | $ | 1,039 | $ | 38,571 | ||||||||
Florida | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 271 | ||||||||
Commercial real estate | 9,533 | 5,988 | 585 | 6,573 | 235 | 6,506 | ||||||||||||||
Real estate construction | 2,597 | 2,597 | — | 2,597 | — | 3,989 | ||||||||||||||
Retail real estate | 16,518 | 12,673 | 1,373 | 14,046 | 483 | 15,254 | ||||||||||||||
Retail other | — | — | — | — | — | — | ||||||||||||||
Total Florida | $ | 28,648 | $ | 21,258 | $ | 1,958 | $ | 23,216 | $ | 718 | $ | 26,020 | ||||||||
Total | $ | 70,963 | $ | 51,552 | $ | 4,041 | $ | 55,593 | $ | 1,757 | $ | 64,591 | ||||||||
Schedule of changes in the allowance for loan losses | ' | |||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Balance, beginning of year | $ | 48,012 | $ | 58,506 | $ | 76,038 | ||||||||||||||
Provision for loan losses | 7,500 | 16,500 | 20,000 | |||||||||||||||||
Recoveries applicable to loan balances previously charged-off | 2,724 | 3,069 | 7,881 | |||||||||||||||||
Loan balances charged-off | (10,669 | ) | (30,063 | ) | (45,413 | ) | ||||||||||||||
Balance, end of year | $ | 47,567 | $ | 48,012 | $ | 58,506 | ||||||||||||||
Schedule of activity on the allowance for loan losses | ' | |||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Commercial | Real Estate | Retail Real | ||||||||||||||||||
Commercial | Real Estate | Construction | Estate | Retail Other | Total | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Beginning balance | $ | 6,597 | $ | 15,023 | $ | 2,527 | $ | 8,110 | $ | 322 | $ | 32,579 | ||||||||
Provision for loan loss | 2,681 | 2,143 | 847 | 616 | 63 | 6,350 | ||||||||||||||
Charged-off | (964 | ) | (1,361 | ) | (1,212 | ) | (2,187 | ) | (511 | ) | (6,235 | ) | ||||||||
Recoveries | 138 | 574 | 378 | 323 | 342 | 1,755 | ||||||||||||||
Ending Balance | $ | 8,452 | $ | 16,379 | $ | 2,540 | $ | 6,862 | $ | 216 | $ | 34,449 | ||||||||
Florida | ||||||||||||||||||||
Beginning balance | $ | 1,437 | $ | 6,062 | $ | 2,315 | $ | 5,614 | $ | 5 | $ | 15,433 | ||||||||
Provision for loan loss | 414 | 2,225 | (1,419 | ) | (51 | ) | (19 | ) | 1,150 | |||||||||||
Charged-off | — | (2,543 | ) | (56 | ) | (1,828 | ) | (7 | ) | (4,434 | ) | |||||||||
Recoveries | 75 | (11 | ) | 328 | 552 | 25 | 969 | |||||||||||||
Ending Balance | $ | 1,926 | $ | 5,733 | $ | 1,168 | $ | 4,287 | $ | 4 | $ | 13,118 | ||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Commercial | Real Estate | Retail Real | ||||||||||||||||||
Commercial | Real Estate | Construction | Estate | Retail Other | Total | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Beginning balance | $ | 9,143 | $ | 18,605 | $ | 4,352 | $ | 6,473 | $ | 464 | $ | 39,037 | ||||||||
Provision for loan loss | 1,428 | 10,058 | (270 | ) | 4,397 | 278 | 15,891 | |||||||||||||
Charged-off | (4,176 | ) | (14,016 | ) | (1,883 | ) | (3,264 | ) | (636 | ) | (23,975 | ) | ||||||||
Recoveries | 202 | 376 | 328 | 504 | 216 | 1,626 | ||||||||||||||
Ending Balance | $ | 6,597 | $ | 15,023 | $ | 2,527 | $ | 8,110 | $ | 322 | $ | 32,579 | ||||||||
Florida | ||||||||||||||||||||
Beginning balance | $ | 1,939 | $ | 8,413 | $ | 2,936 | $ | 6,160 | $ | 21 | $ | 19,469 | ||||||||
Provision for loan loss | (811 | ) | (619 | ) | (555 | ) | 2,626 | (32 | ) | 609 | ||||||||||
Charged-off | (246 | ) | (1,858 | ) | (336 | ) | (3,646 | ) | (2 | ) | (6,088 | ) | ||||||||
Recoveries | 555 | 126 | 270 | 474 | 18 | 1,443 | ||||||||||||||
Ending Balance | $ | 1,437 | $ | 6,062 | $ | 2,315 | $ | 5,614 | $ | 5 | $ | 15,433 | ||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||
Commercial | Commercial | Real Estate | Retail Real | Retail Other | Total | |||||||||||||||
Real Estate | Construction | Estate | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Beginning balance | $ | 11,827 | $ | 19,504 | $ | 7,186 | $ | 5,199 | $ | 2,473 | $ | 46,189 | ||||||||
Provision for loan loss | 2,565 | 9,604 | 1,478 | 4,463 | (2,743 | ) | 15,367 | |||||||||||||
Charged-off | (6,779 | ) | (10,643 | ) | (4,983 | ) | (3,973 | ) | (634 | ) | (27,012 | ) | ||||||||
Recoveries | 1,530 | 140 | 671 | 784 | 1,368 | 4,493 | ||||||||||||||
Ending Balance | $ | 9,143 | $ | 18,605 | $ | 4,352 | $ | 6,473 | $ | 464 | $ | 39,037 | ||||||||
Florida | ||||||||||||||||||||
Beginning balance | $ | 2,013 | $ | 13,291 | $ | 4,717 | $ | 9,748 | $ | 80 | $ | 29,849 | ||||||||
Provision for loan loss | 3,841 | (2,130 | ) | 195 | 2,773 | (46 | ) | 4,633 | ||||||||||||
Charged-off | (3,947 | ) | (3,655 | ) | (2,573 | ) | (8,192 | ) | (34 | ) | (18,401 | ) | ||||||||
Recoveries | 32 | 907 | 597 | 1,831 | 21 | 3,388 | ||||||||||||||
Ending Balance | $ | 1,939 | $ | 8,413 | $ | 2,936 | $ | 6,160 | $ | 21 | $ | 19,469 | ||||||||
Schedule of allowance for loan losses and recorded investments | ' | |||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Commercial | Commercial | Real Estate | Retail Real | Retail Other | Total | |||||||||||||||
Real Estate | Construction | Estate | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Amount allocated to: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | 485 | $ | 1,977 | $ | 468 | $ | 604 | $ | — | $ | 3,534 | ||||||||
Loans collectively evaluated for impairment | 7,967 | 14,402 | 2,072 | 6,258 | 216 | 30,915 | ||||||||||||||
Ending Balance | $ | 8,452 | $ | 16,379 | $ | 2,540 | $ | 6,862 | $ | 216 | $ | 34,449 | ||||||||
Loans: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | 2,286 | $ | 7,411 | $ | 3,862 | $ | 5,277 | $ | — | $ | 18,836 | ||||||||
Loans collectively evaluated for impairment | 557,790 | 924,607 | 57,567 | 413,020 | 8,515 | 1,961,499 | ||||||||||||||
Ending Balance | $ | 560,076 | $ | 932,018 | $ | 61,429 | $ | 418,297 | $ | 8,515 | $ | 1,980,335 | ||||||||
Florida | ||||||||||||||||||||
Amount allocated to: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | — | $ | 416 | $ | — | $ | 337 | $ | — | $ | 753 | ||||||||
Loans collectively evaluated for impairment | 1,926 | 5,317 | 1,168 | 3,950 | 4 | 12,365 | ||||||||||||||
Ending Balance | $ | 1,926 | $ | 5,733 | $ | 1,168 | $ | 4,287 | $ | 4 | $ | 13,118 | ||||||||
Loans: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | — | $ | 5,265 | $ | 417 | $ | 9,542 | $ | — | $ | 15,224 | ||||||||
Loans collectively evaluated for impairment | 20,536 | 154,990 | 17,009 | 92,814 | 552 | 285,901 | ||||||||||||||
Ending Balance | $ | 20,536 | $ | 160,255 | $ | 17,426 | $ | 102,356 | $ | 552 | $ | 301,125 | ||||||||
As of December 31, 2012 | ||||||||||||||||||||
Commercial | Commercial | Real Estate | Retail Real | Retail Other | Total | |||||||||||||||
Real Estate | Construction | Estate | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Illinois/Indiana | ||||||||||||||||||||
Amount allocated to: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | 265 | $ | 634 | $ | — | $ | 140 | $ | — | $ | 1,039 | ||||||||
Loans collectively evaluated for impairment | 6,332 | 14,389 | 2,527 | 7,970 | 322 | 31,540 | ||||||||||||||
Ending Balance | $ | 6,597 | $ | 15,023 | $ | 2,527 | $ | 8,110 | $ | 322 | $ | 32,579 | ||||||||
Loans: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | 7,479 | $ | 13,308 | $ | 6,394 | $ | 5,196 | $ | — | $ | 32,377 | ||||||||
Loans collectively evaluated for impairment | 415,348 | 829,654 | 63,735 | 404,867 | 11,944 | 1,725,548 | ||||||||||||||
Ending Balance | $ | 422,827 | $ | 842,962 | $ | 70,129 | $ | 410,063 | $ | 11,944 | $ | 1,757,925 | ||||||||
Florida | ||||||||||||||||||||
Amount allocated to: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | — | $ | 235 | $ | — | $ | 483 | $ | — | $ | 718 | ||||||||
Loans collectively evaluated for impairment | 1,437 | 5,827 | 2,315 | 5,131 | 5 | 14,715 | ||||||||||||||
Ending Balance | $ | 1,437 | $ | 6,062 | $ | 2,315 | $ | 5,614 | $ | 5 | $ | 15,433 | ||||||||
Loans: | ||||||||||||||||||||
Loans individually evaluated for impairment | $ | — | $ | 6,573 | $ | 2,597 | $ | 14,046 | $ | — | $ | 23,216 | ||||||||
Loans collectively evaluated for impairment | 10,861 | 131,597 | 13,375 | 95,724 | 409 | 251,966 | ||||||||||||||
Ending Balance | $ | 10,861 | $ | 138,170 | $ | 15,972 | $ | 109,770 | $ | 409 | $ | 275,182 |
Loan_Servicing_Tables
Loan Servicing (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Loan Servicing | ' | ||||||||||
Summary of mortgage servicing rights capitalized and amortized | ' | ||||||||||
For the Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(dollars in thousands) | |||||||||||
Mortgage servicing rights capitalized | $ | 2,490 | $ | 2,794 | $ | 2,741 | |||||
Mortgage servicing rights amortized | $ | 2,650 | $ | 2,972 | $ | 2,530 |
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Premises and Equipment | ' | |||||||
Summary of premises and equipment | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(dollars in thousands) | ||||||||
Land and improvements | $ | 21,532 | $ | 22,732 | ||||
Buildings and improvements | 62,159 | 65,099 | ||||||
Furniture and equipment | 33,622 | 41,626 | ||||||
117,313 | 129,457 | |||||||
Less accumulated depreciation | 51,486 | 58,390 | ||||||
Total premises and equipment | $ | 65,827 | $ | 71,067 |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||
Schedule of carrying amount of goodwill by operating segment | ' | ||||||||||
Goodwill: | |||||||||||
FirsTech | $ | 8,992 | |||||||||
Busey Wealth Management | 11,694 | ||||||||||
Total Goodwill | $ | 20,686 | |||||||||
Schedule of other intangible asset disclosures | ' | ||||||||||
Balance at | Amortization | Balance at | |||||||||
December 31, | December 31, | ||||||||||
2012 | 2013 | ||||||||||
(dollars in thousands) | |||||||||||
Amortized intangible assets: | |||||||||||
Core deposit intangible assets | $ | 8,174 | $ | 2,050 | $ | 6,124 | |||||
Customer relationship intangible assets | 4,529 | 1,082 | 3,447 | ||||||||
$ | 12,703 | $ | 3,132 | $ | 9,571 | ||||||
Schedule of carrying amount of amortized intangible assets | ' | ||||||||||
Core deposit | Customer | ||||||||||
intangible | relationship | ||||||||||
intangible | |||||||||||
(dollars in thousands) | |||||||||||
As of December 31, 2013: | |||||||||||
Gross carrying amount | $ | 34,836 | $ | 11,320 | |||||||
Accumulated amortization | 28,712 | 7,873 | |||||||||
$ | 6,124 | $ | 3,447 | ||||||||
Estimated amortization expense: | |||||||||||
2014 | $ | 1,870 | $ | 1,014 | |||||||
2015 | 1,719 | 972 | |||||||||
2016 | 1,644 | 929 | |||||||||
2017 | 891 | 532 | |||||||||
$ | 6,124 | $ | 3,447 |
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deposits | ' | |||||||
Schedule of composition of deposits | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(dollars in thousands) | ||||||||
Demand deposits, non-interest-bearing | $ | 547,531 | $ | 611,043 | ||||
Interest-bearing transaction deposits | 61,384 | 66,295 | ||||||
Savings deposits | 206,587 | 202,263 | ||||||
Money market deposits | 1,471,265 | 1,409,492 | ||||||
Time deposits | 582,371 | 691,199 | ||||||
Total | $ | 2,869,138 | $ | 2,980,292 | ||||
Schedule of maturities of time deposits | ' | |||||||
As of December 31, 2013, the scheduled maturities of time deposits, in thousands, are as follows: | ||||||||
2014 | $ | 349,128 | ||||||
2015 | 112,585 | |||||||
2016 | 60,553 | |||||||
2017 | 41,076 | |||||||
2018 | 19,025 | |||||||
Thereafter | 4 | |||||||
$ | 582,371 |
Securities_Sold_Under_Agreemen1
Securities Sold Under Agreements to Repurchase (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Securities Sold Under Agreements to Repurchase | ' | |||||||
Schedule of distribution of securities sold under agreements to repurchase and weighted average interest rates | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(dollars in thousands) | ||||||||
Balance | $ | 172,348 | $ | 139,024 | ||||
Weighted average interest rate at end of period | 0.13 | % | 0.15 | % | ||||
Maximum outstanding at any month end | $ | 172,348 | $ | 146,710 | ||||
Average daily balance | $ | 137,777 | $ | 132,150 | ||||
Weighted average interest rate during period (1) | 0.14 | % | 0.21 | % | ||||
(1)The weighted average interest rate is computed by dividing total interest for the period by the average daily balance outstanding. |
Longterm_Debt_Tables
Long-term Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Long-term Debt | ' | |||||||
Summary of long-term debt | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(dollars in thousands) | ||||||||
Notes payable, Federal Home Loan Bank of Chicago, collateralized by all otherwise unpledged U.S. Treasury securities and obligations of U.S. government corporations and agencies, first mortgages on 1-4 family residential real estate loans and Federal Home Loan Bank stock. | $ | — | $ | 7,000 | ||||
Junior_Subordinated_Debt_Owed_1
Junior Subordinated Debt Owed to Unconsolidated Trusts (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Junior Subordinated Debt Owed to Unconsolidated Trusts | ' | ||||||
Summary of the outstanding junior subordinated notes and the related trust preferred securities issued by each trust | ' | ||||||
First Busey Statutory Trust II | First Busey Statutory Trust III | First Busey Statutory Trust IV | |||||
Junior Subordinated Notes: | |||||||
Principal balance | $15,000,000 | $10,000,000 | $30,000,000 | ||||
Annual interest rate(1) | 3-mo LIBOR + 2.65% | 3-mo LIBOR + 1.75% | 3-mo LIBOR + 1.55% | ||||
Stated maturity date | June 17, 2034 | June 15, 2035 | June 15, 2036 | ||||
Trust Preferred Securities: | |||||||
Face value | $15,000,000 | $10,000,000 | $30,000,000 | ||||
Annual distribution rate(1) | 3-mo LIBOR + 2.65% | 3-mo LIBOR + 1.75% | 3-mo LIBOR + 1.55% | ||||
Issuance date | April 30, 2004 | June 15, 2005 | June 15, 2006 | ||||
Distribution dates(2) | Quarterly | Quarterly | Quarterly | ||||
(1) First Busey Statutory Trust IV maintained a 5-year fixed coupon of 6.94% through June 10, 2011, subsequently converting to a floating 3-month LIBOR +1.55%. | |||||||
(2) All cash distributions are cumulative. | |||||||
Capital_Tables
Capital (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Capital | ' | ||||||||||||||||
Schedule of capital adequacy requirements | ' | ||||||||||||||||
Minimum | Minimum | ||||||||||||||||
Capital | To Be Well | ||||||||||||||||
Actual | Requirement | Capitalized | |||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
(dollars in thousands) | |||||||||||||||||
As of December 31, 2013: | |||||||||||||||||
Total Capital (to Risk Weighted Assets) | |||||||||||||||||
Consolidated | $ | 449,407 | 18.21 | % | $ | 197,422 | 8 | % | $ | 246,777 | 10 | % | |||||
Busey Bank | $ | 396,248 | 16.17 | % | $ | 196,002 | 8 | % | $ | 245,002 | 10 | % | |||||
Tier I Capital (to Risk Weighted Assets) | |||||||||||||||||
Consolidated | $ | 417,564 | 16.92 | % | $ | 98,711 | 4 | % | $ | 148,067 | 6 | % | |||||
Busey Bank | $ | 364,625 | 14.88 | % | $ | 98,001 | 4 | % | $ | 147,001 | 6 | % | |||||
Tier I Capital (to Average Assets) | |||||||||||||||||
Consolidated | $ | 417,564 | 12.02 | % | $ | 138,896 | 4 | % | N/A | N/A | |||||||
Busey Bank | $ | 364,625 | 10.66 | % | $ | 136,818 | 4 | % | $ | 171,023 | 5 | % | |||||
As of December 31, 2012: | |||||||||||||||||
Total Capital (to Risk Weighted Assets) | |||||||||||||||||
Consolidated | $ | 419,343 | 18.63 | % | $ | 180,026 | 8 | % | $ | 225,033 | 10 | % | |||||
Busey Bank | $ | 406,597 | 18.14 | % | $ | 179,278 | 8 | % | $ | 224,097 | 10 | % | |||||
Tier I Capital (to Risk Weighted Assets) | |||||||||||||||||
Consolidated | $ | 390,304 | 17.34 | % | $ | 90,013 | 4 | % | $ | 135,020 | 6 | % | |||||
Busey Bank | $ | 377,673 | 16.85 | % | $ | 89,639 | 4 | % | $ | 134,458 | 6 | % | |||||
Tier I Capital (to Average Assets) | |||||||||||||||||
Consolidated | $ | 390,304 | 11.3 | % | $ | 138,151 | 4 | % | N/A | N/A | |||||||
Busey Bank | $ | 377,673 | 10.99 | % | $ | 137,488 | 4 | % | $ | 171,859 | 5 | % |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Schedule of the components of income taxes | ' | ||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(dollars in thousands) | |||||||||||
Current | $ | 4,020 | $ | 1,926 | $ | 2,194 | |||||
Deferred | 10,091 | 8,571 | 12,776 | ||||||||
Total income tax expense | $ | 14,111 | $ | 10,497 | $ | 14,970 | |||||
Schedule of the reconciliation of federal and state income taxes at statutory rates to the income taxes included in the statements of income | ' | ||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
% of | % of | % of | |||||||||
Pretax | Pretax | Pretax | |||||||||
Income | Income | Loss | |||||||||
Income tax at statutory rate | 35 | % | 35 | % | 35 | % | |||||
Effect of: | |||||||||||
Tax-exempt interest, net | (3.5 | )% | (4.5 | )% | (2.6 | )% | |||||
State income taxes, net | 4.5 | % | 3.5 | % | 2.1 | % | |||||
Income on bank owned life insurance | (0.9 | )% | (1.8 | )% | (1.0 | )% | |||||
Other, net | (2.2 | )% | (0.3 | )% | (0.1 | )% | |||||
32.9 | % | 31.9 | % | 33.4 | % | ||||||
Schedule of the deferred tax assets and liabilities | ' | ||||||||||
2013 | 2012 | ||||||||||
(dollars in thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Allowance for loan losses | $ | 19,416 | $ | 19,597 | |||||||
Stock-based compensation | 1,319 | 1,183 | |||||||||
Loan adjustments | 108 | 396 | |||||||||
Deferred compensation | 2,015 | 1,993 | |||||||||
Accrued vacation | 545 | 576 | |||||||||
Employee costs | 1,264 | 616 | |||||||||
Other | 1,780 | 1,423 | |||||||||
$ | 26,447 | $ | 25,784 | ||||||||
Deferred tax liabilities: | |||||||||||
Investment securities: | |||||||||||
Unrealized gains on securities available for sale | $ | (3,119 | ) | $ | (9,479 | ) | |||||
Other | (2,450 | ) | (2,273 | ) | |||||||
Basis in premises and equipment | (2,590 | ) | (2,215 | ) | |||||||
Mortgage servicing assets | (2,097 | ) | (2,159 | ) | |||||||
Basis in core deposit and customer intangible assets | (3,908 | ) | (5,185 | ) | |||||||
Deferred loan origination costs | (20 | ) | (303 | ) | |||||||
$ | (14,184 | ) | $ | (21,614 | ) | ||||||
Net operating loss carryforward, net of valuation allowance | 23,379 | 35,203 | |||||||||
Net deferred tax assets | $ | 35,642 | $ | 39,373 |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Employee Benefit Plans | ' | |||||||||||
Schedule of shares held in ESOP acquired after December 31, 1992 and their fair values | ' | |||||||||||
2013 | 2012 | |||||||||||
Fair | Fair | |||||||||||
Shares | Value | Shares | Value | |||||||||
(dollars in thousands) | ||||||||||||
Allocated shares | 192,171 | $ | 1,115 | 212,146 | $ | 986 | ||||||
Schedule of expenses related to the employee benefit plans | ' | |||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(dollars in thousands) | ||||||||||||
Employee benefits | $ | 2,975 | $ | 3,024 | $ | 2,985 | ||||||
Interest on employee stock ownership plan debt | — | 5 | 11 | |||||||||
Total employer contributions | $ | 2,975 | $ | 3,029 | $ | 2,996 |
Stock_Incentive_Plans_Tables
Stock Incentive Plans (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Stock Incentive Plans | ' | |||||||||||||||||
Schedule of status and changes in stock option plans | ' | |||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||
Average | Average | Average | ||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||
Shares | Price | Shares | Price | Shares | Price | |||||||||||||
Outstanding at beginning of year | 857,468 | $ | 17.01 | 1,017,922 | $ | 16.23 | 1,351,593 | $ | 16.09 | |||||||||
Granted | — | — | — | — | — | — | ||||||||||||
Exercised | — | — | — | — | — | — | ||||||||||||
Forfeited | (161,089 | ) | 16.1 | (160,454 | ) | 12.07 | (333,671 | ) | 15.67 | |||||||||
Outstanding at end of year | 696,379 | $ | 17.22 | 857,468 | $ | 17.01 | 1,017,922 | $ | 16.23 | |||||||||
Exercisable at end of year | 696,379 | $ | 17.22 | 857,468 | $ | 17.01 | 1,017,922 | $ | 16.23 | |||||||||
Summary of stock options outstanding by range of exercise prices | ' | |||||||||||||||||
Options | ||||||||||||||||||
Options Outstanding | Exercisable | |||||||||||||||||
Weighted- | ||||||||||||||||||
Weighted- | Average | |||||||||||||||||
Range of | Average | Remaining | ||||||||||||||||
Exercise | Exercise | Contractual | Intrinsic | Intrinsic | ||||||||||||||
Prices | Number | Price | Life | Value | Number | Value | ||||||||||||
$ | 4.49-7.53 | 105,000 | $ | 6.01 | 6 | 105,000 | ||||||||||||
17.12-19.74 | 591,379 | 19.21 | 1.38 | 591,379 | ||||||||||||||
696,379 | $ | 17.22 | 2.08 | $ | 69 | 696,379 | $ | 69 | ||||||||||
Schedule of changes in stock awards (restricted stock units) | ' | |||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||
Average | Average | Average | ||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||
Shares | Fair Value | Shares | Fair Value | Shares | Fair Value | |||||||||||||
Outstanding at beginning of year | 736,412 | $ | 4.92 | 455,352 | $ | 4.98 | 194,914 | $ | 4.75 | |||||||||
Granted | 351,452 | 5.02 | 266,258 | 4.83 | 250,728 | 5.16 | ||||||||||||
Dividend equivalents earned | 17,211 | 4.86 | 32,704 | 4.79 | 9,710 | 5.2 | ||||||||||||
Vested | (156,795 | ) | 4.84 | (9,925 | ) | 4.19 | — | — | ||||||||||
Forfeited | (28,352 | ) | 5.14 | (7,977 | ) | 5.15 | — | — | ||||||||||
Outstanding at end of year | 919,928 | $ | 4.97 | 736,412 | $ | 4.92 | 455,352 | $ | 4.98 | |||||||||
Summary of the changes in the company's stock unit awards | ' | |||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||
Average | Average | Average | ||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||
Shares | Fair Value | Shares | Fair Value | Shares | Fair Value | |||||||||||||
Non-vested at beginning of year | 32,991 | $ | 4.77 | 22,771 | $ | 5.23 | — | $ | — | |||||||||
Granted | 28,800 | 5.04 | 31,897 | 4.77 | 22,426 | 5.23 | ||||||||||||
Dividend equivalents earned | 1,636 | 5.03 | 2,252 | 4.76 | 345 | 5.22 | ||||||||||||
Vested | (34,373 | ) | 4.77 | (23,929 | ) | 5.21 | — | — | ||||||||||
Forfeited | — | — | — | — | — | — | ||||||||||||
Non-vested at end of year | 29,054 | $ | 5.05 | 32,991 | $ | 4.77 | 22,771 | $ | 5.23 | |||||||||
Outstanding at end of year | 87,356 | $ | 5.06 | 56,920 | $ | 4.96 | 22,771 | $ | 5.23 |
Transactions_with_Directors_an1
Transactions with Directors and Executive Officers (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Transactions with Directors and Executive Officers | ' | ||||
Schedule of the analysis of the changes in loans to related parties | ' | ||||
Balance at beginning of year | $ | 29,714 | |||
Addition due to change in relationship | — | ||||
Deletion due to change in relationship | — | ||||
New loans/ advances | 24,100 | ||||
Repayments | (23,709 | ) | |||
Balance at end of year | $ | 30,105 |
Commitments_Contingencies_and_1
Commitments, Contingencies and Credit Risk (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments, Contingencies and Credit Risk | ' | |||||||
Schedule of contractual amount of exposure to off-balance-sheet risk | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(dollars in thousands) | ||||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit | $ | 527,614 | $ | 483,373 | ||||
Standby letters of credit | 10,155 | 12,305 | ||||||
Schedule of projected minimum rental payments under the terms of the leases | ' | |||||||
The projected minimum rental payments under the terms of the leases at December 31, 2013 in thousands, are as follows: | ||||||||
2014 | $ | 1,274 | ||||||
2015 | 711 | |||||||
2016 | 112 | |||||||
2017 | 4 | |||||||
$ | 2,101 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Schedule of financial assets and financial liabilities measured at fair value on a recurring basis | ' | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
December 31, 2013 | Inputs | Inputs | Inputs | Fair Value | ||||||||||
(dollars in thousands) | ||||||||||||||
Securities available for sale: | ||||||||||||||
U.S. Treasury securities | $ | — | $ | 102,640 | $ | — | $ | 102,640 | ||||||
Obligations of U.S. government corporations and agencies | — | 257,411 | — | 257,411 | ||||||||||
Obligations of states and political subdivisions | — | 272,152 | — | 272,152 | ||||||||||
Residential mortgage-backed securities | — | 177,735 | — | 177,735 | ||||||||||
Corporate debt securities | — | 25,506 | — | 25,506 | ||||||||||
Mutual funds and other equity securities | 5,866 | — | — | 5,866 | ||||||||||
$ | 5,866 | $ | 835,444 | $ | — | $ | 841,310 | |||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
December 31, 2012 | Inputs | Inputs | Inputs | Fair Value | ||||||||||
(dollars in thousands) | ||||||||||||||
Securities available for sale: | ||||||||||||||
U.S. Treasury securities | $ | — | $ | 104,656 | $ | — | $ | 104,656 | ||||||
Obligations of U.S. government corporations and agencies | — | 370,194 | — | 370,194 | ||||||||||
Obligations of states and political subdivisions | — | 280,288 | — | 280,288 | ||||||||||
Residential mortgage-backed securities | — | 217,715 | — | 217,715 | ||||||||||
Corporate debt securities | 24,714 | — | — | 24,714 | ||||||||||
Mutual funds and other equity securities | 3,930 | — | — | 3,930 | ||||||||||
$ | 28,644 | $ | 972,853 | $ | — | $ | 1,001,497 | |||||||
Schedule of assets and liabilities measured at fair value on a non-recurring basis | ' | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
December 31, 2013 | Inputs | Inputs | Inputs | Fair Value | ||||||||||
(dollars in thousands) | ||||||||||||||
Impaired loans | $ | — | $ | — | $ | 5,491 | $ | 5,491 | ||||||
OREO | — | — | 1,134 | 1,134 | ||||||||||
December 31, 2012 | ||||||||||||||
Impaired loans | $ | — | $ | — | $ | 2,284 | $ | 2,284 | ||||||
OREO | — | — | 511 | 511 | ||||||||||
Schedule of quantitative information about Level 3 fair value measurements | ' | |||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||
Fair Value | Valuation | Unobservable | Range | |||||||||||
December 31, 2013 | Estimate | Techniques | Input | (Weighted Average) | ||||||||||
(dollars in thousands) | ||||||||||||||
Impaired loans | $ | 5,491 | Appraisal of collateral | Appraisal adjustments | -0.4% to -100.0% | |||||||||
(-36.0%) | ||||||||||||||
OREO | 1,134 | Appraisal of collateral | Appraisal adjustments | -6.6% to -100.0% | ||||||||||
(-47.9%) | ||||||||||||||
December 31, 2012 | ||||||||||||||
Impaired loans | 2,284 | Appraisal of collateral | Appraisal adjustments | -12.00% to -100.0% | ||||||||||
(-34.2%) | ||||||||||||||
OREO | 511 | Appraisal of collateral | Appraisal adjustments | -51.7% to -61.30% | ||||||||||
(-53.4%) | ||||||||||||||
Schedule of estimated fair values of financial instruments | ' | |||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
Amount | Value | Amount | Value | |||||||||||
(dollars in thousands) | ||||||||||||||
Financial assets: | ||||||||||||||
Level 2 inputs: | ||||||||||||||
Cash and due from banks | $ | 231,603 | $ | 231,603 | $ | 351,255 | $ | 351,255 | ||||||
Loans held for sale | 13,840 | 14,103 | 40,003 | 40,971 | ||||||||||
Accrued interest receivable | 11,148 | 11,148 | 12,275 | 12,275 | ||||||||||
Level 3 inputs: | ||||||||||||||
Loans, net | 2,233,893 | 2,236,841 | 1,985,095 | 2,006,588 | ||||||||||
Financial liabilities: | ||||||||||||||
Level 2 inputs: | ||||||||||||||
Deposits | $ | 2,869,138 | $ | 2,870,870 | $ | 2,980,292 | $ | 2,987,524 | ||||||
Securities sold under agreements to repurchase | 172,348 | 172,348 | 139,024 | 139,024 | ||||||||||
Long-term debt | — | — | 7,000 | 7,120 | ||||||||||
Junior subordinated debt owed to unconsolidated trusts | 55,000 | 55,000 | 55,000 | 55,000 | ||||||||||
Accrued interest payable | 673 | 673 | 1,128 | 1,128 | ||||||||||
Reportable_Segments_and_Relate1
Reportable Segments and Related Information (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Reportable Segments and Related Information | ' | |||||||||||||
Summary of information relating to reportable segments | ' | |||||||||||||
Goodwill | Total Assets | |||||||||||||
As of December 31, | 2013 | 2012 | 2013 | 2012 | ||||||||||
(dollars in thousands) | (dollars in thousands) | |||||||||||||
Busey Bank | $ | — | $ | — | $ | 3,456,555 | $ | 3,567,637 | ||||||
FirsTech | 8,992 | 8,992 | 27,253 | 26,401 | ||||||||||
Busey Wealth Management | 11,694 | 11,694 | 28,548 | 26,653 | ||||||||||
All Other | — | — | 27,219 | (2,635 | ) | |||||||||
Totals | $ | 20,686 | $ | 20,686 | $ | 3,539,575 | $ | 3,618,056 | ||||||
Year ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
(dollars in thousands) | ||||||||||||||
Interest Income: | ||||||||||||||
Busey Bank | $ | 108,413 | $ | 116,608 | $ | 132,501 | ||||||||
FirsTech | 51 | 62 | 66 | |||||||||||
Busey Wealth Management | 242 | 251 | 255 | |||||||||||
All Other | (10 | ) | (5 | ) | (3 | ) | ||||||||
Total interest income | $ | 108,696 | $ | 116,916 | $ | 132,819 | ||||||||
Interest Expense: | ||||||||||||||
Busey Bank | $ | 7,448 | $ | 13,466 | $ | 20,514 | ||||||||
FirsTech | — | — | — | |||||||||||
Busey Wealth Management | — | — | — | |||||||||||
All Other | 1,183 | 1,304 | 1,912 | |||||||||||
Total interest expense | $ | 8,631 | $ | 14,770 | $ | 22,426 | ||||||||
Other Income: | ||||||||||||||
Busey Bank | $ | 36,774 | $ | 39,908 | $ | 35,940 | ||||||||
FirsTech | 8,541 | 8,522 | 9,287 | |||||||||||
Busey Wealth Management | 17,799 | 16,345 | 14,841 | |||||||||||
All Other | (531 | ) | 2,077 | (1,053 | ) | |||||||||
Total other income | $ | 62,583 | $ | 66,852 | $ | 59,015 | ||||||||
Net Income: | ||||||||||||||
Busey Bank | $ | 25,416 | $ | 19,162 | $ | 28,504 | ||||||||
FirsTech | 1,000 | 935 | 1,437 | |||||||||||
Busey Wealth Management | 4,242 | 3,363 | 3,095 | |||||||||||
All Other | (1,932 | ) | (1,103 | ) | (3,163 | ) | ||||||||
Total net income | $ | 28,726 | $ | 22,357 | $ | 29,873 |
Parent_Company_Only_Financial_1
Parent Company Only Financial Information (Tables) (Parent) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Parent | ' | ||||||||||
Parent Company Only Financial Information | ' | ||||||||||
Balance Sheet | ' | ||||||||||
BALANCE SHEETS | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(dollars in thousands) | |||||||||||
ASSETS | |||||||||||
Cash and due from subsidiary banks | $ | 42,645 | $ | 5,152 | |||||||
Securities available for sale | 201 | 201 | |||||||||
Loans | — | 68 | |||||||||
Investments in subsidiaries: | |||||||||||
Bank | 400,442 | 432,912 | |||||||||
Non-bank | 25,646 | 23,605 | |||||||||
Premises and equipment, net | 521 | 757 | |||||||||
Other assets | 9,450 | 9,369 | |||||||||
Total assets | $ | 478,905 | $ | 472,064 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Liabilities: | |||||||||||
Junior subordinated debentures owed to unconsolidated Trusts | 55,000 | 55,000 | |||||||||
Other liabilities | 8,541 | 8,267 | |||||||||
Total liabilities | 63,541 | 63,267 | |||||||||
Total stockholders’ equity | 415,364 | 408,797 | |||||||||
Total liabilities and stockholders’ equity | $ | 478,905 | $ | 472,064 | |||||||
Statement of Operations | ' | ||||||||||
STATEMENTS OF INCOME | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(dollars in thousands) | |||||||||||
Operating income: | |||||||||||
Dividends from subsidiaries: | |||||||||||
Bank | $ | — | $ | — | $ | — | |||||
Non-bank | 2,000 | 2,500 | 3,750 | ||||||||
Interest and dividend income | 46 | 49 | 63 | ||||||||
Other income | 4,669 | 6,231 | 2,424 | ||||||||
Total operating income | 6,715 | 8,780 | 6,237 | ||||||||
Expense: | |||||||||||
Salaries and employee benefits | 5,139 | 4,718 | 3,620 | ||||||||
Interest expense | 1,220 | 1,351 | 1,963 | ||||||||
Operating expense | 2,163 | 2,469 | 2,623 | ||||||||
Total expense | 8,522 | 8,538 | 8,206 | ||||||||
(Loss) income before income tax benefit and distributions (in excess of) less than net income of subsidiaries | (1,807 | ) | 242 | (1,969 | ) | ||||||
Income tax benefit | 1,875 | 1,155 | 2,556 | ||||||||
Income before distributions less than net income of subsidiaries | 68 | 1,397 | 587 | ||||||||
Distributions less than (in excess of) net income (loss) of subsidiaries: | |||||||||||
Bank | 26,416 | 20,097 | 29,941 | ||||||||
Non-bank | 2,242 | 863 | (655 | ) | |||||||
Net income | $ | 28,726 | $ | 22,357 | $ | 29,873 | |||||
Statement of Cash Flows | ' | ||||||||||
STATEMENTS OF CASH FLOWS | |||||||||||
Years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(dollars in thousands) | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | $ | 28,726 | $ | 22,357 | $ | 29,873 | |||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 100 | 98 | 120 | ||||||||
Distributions less than net income of subsidiaries | (28,658 | ) | (20,960 | ) | (29,286 | ) | |||||
Stock-based compensation | 1,079 | 991 | 488 | ||||||||
Fair value adjustment on employee stock ownership plan shares allocated | — | (322 | ) | (318 | ) | ||||||
Changes in assets and liabilities: | |||||||||||
(Increase) decrease in other assets | (62 | ) | 125 | 1,479 | |||||||
Increase (decrease) in other liabilities | 381 | 1,435 | (22,630 | ) | |||||||
Net cash provided by (used in) operating activities | 1,566 | 3,724 | (20,274 | ) | |||||||
Cash Flows from Investing Activities | |||||||||||
Securities purchased under agreements to resell, net | — | — | 10,909 | ||||||||
Decrease in loans | 68 | 95 | 85 | ||||||||
Proceeds from sales of premises and equipment | 226 | — | — | ||||||||
Purchases of premises and equipment | (90 | ) | (11 | ) | (5 | ) | |||||
Net cash provided by investing activities | 204 | 84 | 10,989 | ||||||||
Cash Flows from Financing Activities | |||||||||||
Proceeds from charter amendment with subsidiary bank | 50,000 | — | — | ||||||||
Repurchase of Series T Preferred Stock | — | — | (100,000 | ) | |||||||
Proceeds from issuance of Series C Preferred stock | — | — | 72,664 | ||||||||
Shares surrendered upon vesting of restricted stock units to cover tax obligations | (237 | ) | — | — | |||||||
Cash dividends paid | (14,040 | ) | (24,427 | ) | (18,343 | ) | |||||
Net cash provided by (used in) financing activities | 35,723 | (24,427 | ) | (45,679 | ) | ||||||
Net increase (decrease) in cash and due from subsidiary banks | 37,493 | (20,619 | ) | (54,964 | ) | ||||||
Cash and due from subsidiary banks, beginning | 5,152 | 25,771 | 80,735 | ||||||||
Cash and due from subsidiary banks, ending | $ | 42,645 | $ | 5,152 | $ | 25,771 |
Unaudited_Interim_Financial_Da1
Unaudited Interim Financial Data (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Unaudited Interim Financial Data | ' | |||||||||||||
Schedule reflecting the summarized quarterly data | ' | |||||||||||||
The following table reflects summarized quarterly data for the periods described (unaudited), in thousands, except per share data: | ||||||||||||||
2013 | ||||||||||||||
December 31 | September 30 | June 30 | March 31 | |||||||||||
Interest income | $ | 26,885 | $ | 27,236 | $ | 27,460 | $ | 27,115 | ||||||
Interest expense | 1,881 | 2,003 | 2,215 | 2,532 | ||||||||||
Net interest income | 25,004 | 25,233 | 25,245 | 24,583 | ||||||||||
Provision for loan losses | 1,500 | 2,000 | 2,000 | 2,000 | ||||||||||
Non-interest income | 14,529 | 15,630 | 15,783 | 16,641 | ||||||||||
Non-interest expense | 27,585 | 27,358 | 27,801 | 29,567 | ||||||||||
Income before income taxes | 10,448 | 11,505 | 11,227 | 9,657 | ||||||||||
Income taxes | 3,528 | 3,572 | 3,787 | 3,224 | ||||||||||
Net income | $ | 6,920 | $ | 7,933 | $ | 7,440 | $ | 6,433 | ||||||
Preferred stock dividends | 908 | 909 | 908 | 908 | ||||||||||
Net income available to common stockholders | $ | 6,012 | $ | 7,024 | $ | 6,532 | $ | 5,525 | ||||||
Basic earnings per share | $ | 0.07 | $ | 0.08 | $ | 0.08 | $ | 0.06 | ||||||
Diluted earnings per share | $ | 0.07 | $ | 0.08 | $ | 0.08 | $ | 0.06 | ||||||
2012 | ||||||||||||||
December 31 | September 30 | June 30 | March 31 | |||||||||||
Interest income | $ | 28,584 | $ | 29,011 | $ | 29,225 | $ | 30,096 | ||||||
Interest expense | 2,955 | 3,466 | 3,951 | 4,398 | ||||||||||
Net interest income | 25,629 | 25,545 | 25,274 | 25,698 | ||||||||||
Provision for loan losses | 3,500 | 3,500 | 4,500 | 5,000 | ||||||||||
Non-interest income | 17,613 | 15,589 | 15,770 | 17,880 | ||||||||||
Non-interest expense | 32,269 | 30,394 | 29,779 | 27,202 | ||||||||||
Income before income taxes | 7,473 | 7,240 | 6,765 | 11,376 | ||||||||||
Income taxes | 2,556 | 2,331 | 1,877 | 3,733 | ||||||||||
Net income | $ | 4,917 | $ | 4,909 | $ | 4,888 | $ | 7,643 | ||||||
Preferred stock dividends | 908 | 909 | 908 | 908 | ||||||||||
Net income available to common stockholders | $ | 4,009 | $ | 4,000 | $ | 3,980 | $ | 6,735 | ||||||
Basic earnings per share | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.08 | ||||||
Diluted earnings per share | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.08 |
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Accounting Policies | ' | ' |
Assets under care | $5,000,000,000 | $4,200,000,000 |
Maximum estimated economic life | '5 years | ' |
Goodwill | ' | ' |
Goodwill impairment | $0 | $0 |
Buildings and improvements | Minimum | ' | ' |
Premises and Equipment | ' | ' |
Estimated Useful Life | '3 years | ' |
Buildings and improvements | Maximum | ' | ' |
Premises and Equipment | ' | ' |
Estimated Useful Life | '40 years | ' |
Furniture and equipment | Minimum | ' | ' |
Premises and Equipment | ' | ' |
Estimated Useful Life | '3 years | ' |
Furniture and equipment | Maximum | ' | ' |
Premises and Equipment | ' | ' |
Estimated Useful Life | '10 years | ' |
Significant_Accounting_Policie4
Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | |||
Income taxes | ' | ' | ' |
Valuation allowance | $0 | ' | ' |
Accruals for payments of interest and penalties | 0 | 0 | ' |
Compensation expense recognized | 1,100,000 | 1,000,000 | 400,000 |
Segment disclosure | ' | ' | ' |
Number of primary operating subsidiaries that are entity's segments | 3 | ' | ' |
Restricted stock units | ' | ' | ' |
Income taxes | ' | ' | ' |
Compensation expense recognized | $0 | ' | ' |
Restricted stock units | Minimum | ' | ' | ' |
Income taxes | ' | ' | ' |
Requisite service period | '1 year | ' | ' |
Restricted stock units | Maximum | ' | ' | ' |
Income taxes | ' | ' | ' |
Requisite service period | '5 years | ' | ' |
Significant_Accounting_Policie5
Significant Accounting Policies (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income per share calculations for basic and diluted methods | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income available to common stockholders (in dollars) | $6,012 | $7,024 | $6,532 | $5,525 | $4,009 | $4,000 | $3,980 | $6,735 | $25,093 | $18,724 | $24,531 |
Shares: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 86,765,000 | 86,643,000 | 85,304,000 |
Dilutive effect of outstanding options, warrants and restricted stock units as determined by the application of the treasury stock method (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 299,000 | 9,000 | 8,000 |
Weighted average common shares outstanding, as adjusted for diluted earnings per share calculation | ' | ' | ' | ' | ' | ' | ' | ' | 87,064,000 | 86,652,000 | 85,312,000 |
Basic earnings per common share (in dollars per share) | $0.07 | $0.08 | $0.08 | $0.06 | $0.05 | $0.05 | $0.05 | $0.08 | $0.29 | $0.22 | $0.29 |
Diluted earnings per common share (in dollars per share) | $0.07 | $0.08 | $0.08 | $0.06 | $0.05 | $0.05 | $0.05 | $0.08 | $0.29 | $0.22 | $0.29 |
Stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from the calculation of common stock equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of anti-dilutive securities (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 643,879 | 804,968 | ' |
Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from the calculation of common stock equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of anti-dilutive securities (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 573,833 | 573,833 | ' |
Restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive securities excluded from the calculation of common stock equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of anti-dilutive securities (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 347,253 | 793,332 | ' |
Cash_and_Due_from_Banks_Detail
Cash and Due from Banks (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Cash and Due from Banks | ' | ' |
Required reserve balance | $5.30 | $4.30 |
Securities_Details
Securities (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | |||
Available for sale | ' | ' | ' |
Amortized Cost | $833,735,000 | $978,477,000 | ' |
Gross Unrealized Gains | 11,350,000 | 23,289,000 | ' |
Gross Unrealized Losses | -3,775,000 | -269,000 | ' |
Fair Value | 841,310,000 | 1,001,497,000 | ' |
Held to maturity | ' | ' | ' |
Amortized Cost | 834,000 | ' | ' |
Gross Unrealized Gains | 1,000 | ' | ' |
Gross Unrealized Losses | -4,000 | ' | ' |
Fair Value | 831,000 | ' | ' |
Available for sale, Amortized Cost | ' | ' | ' |
Due in one year or less | 140,414,000 | ' | ' |
Due after one year through five years | 451,993,000 | ' | ' |
Due after five years through ten years | 163,885,000 | ' | ' |
Due after ten years | 73,329,000 | ' | ' |
Amortized Cost | 829,621,000 | ' | ' |
Available for sale, Fair Value | ' | ' | ' |
Due in one year or less | 141,464,000 | ' | ' |
Due after one year through five years | 454,381,000 | ' | ' |
Due after five years through ten years | 165,378,000 | ' | ' |
Due after ten years | 74,221,000 | ' | ' |
Fair Value | 835,444,000 | ' | ' |
Held to maturity, Amortized Cost | ' | ' | ' |
Due after one year through five years | 321,000 | ' | ' |
Due after five years through ten years | 513,000 | ' | ' |
Amortized Cost | 834,000 | ' | ' |
Held to maturity, Fair Value | ' | ' | ' |
Due after one year through five years | 322,000 | ' | ' |
Due after five years through ten years | 509,000 | ' | ' |
Fair Value | 831,000 | ' | ' |
Realized gains and losses related to sales of securities available for sale | ' | ' | ' |
Gross security gains | 599,000 | 1,602,000 | 174,000 |
Gross security (losses) | -46,000 | -5,000 | -4,000 |
Net security gains | 553,000 | 1,597,000 | 170,000 |
Tax provision related to net realized gains (losses) | 200,000 | 600,000 | ' |
Carrying amount of investment securities pledged as collateral | 428,700,000 | 489,100,000 | ' |
Available for sale, Fair Value | ' | ' | ' |
Continuous unrealized losses existing for less than 12 months, gross | 199,636,000 | 63,320,000 | ' |
Continuous unrealized losses existing greater than 12 months, gross | 8,492,000 | 3,311,000 | ' |
Total | 208,128,000 | 66,631,000 | ' |
Available for sale, Unrealized Losses | ' | ' | ' |
Continuous unrealized losses existing for less than 12 months, gross | 3,481,000 | 220,000 | ' |
Continuous unrealized losses existing greater than 12 months, gross | 294,000 | 49,000 | ' |
Total | 3,775,000 | 269,000 | ' |
Held to maturity, Fair Value | ' | ' | ' |
Continuous unrealized losses existing for less than 12 months, gross | 597,000 | ' | ' |
Total | 597,000 | ' | ' |
Held to maturity, Unrealized Losses | ' | ' | ' |
Continuous unrealized losses existing for less than 12 months, gross | 4,000 | ' | ' |
Total | 4,000 | ' | ' |
Number of securities in unrealized loss position | 266 | ' | ' |
Securities in unrealized loss position as a percentage of aggregate carrying value of investments | 1.80% | ' | ' |
Debt securities | ' | ' | ' |
Available for sale | ' | ' | ' |
Amortized Cost | 829,621,000 | 976,026,000 | ' |
Gross Unrealized Gains | 9,598,000 | 21,810,000 | ' |
Gross Unrealized Losses | -3,775,000 | -269,000 | ' |
Fair Value | 835,444,000 | 997,567,000 | ' |
U.S. Treasury securities | ' | ' | ' |
Available for sale | ' | ' | ' |
Amortized Cost | 102,463,000 | 103,353,000 | ' |
Gross Unrealized Gains | 244,000 | 1,303,000 | ' |
Gross Unrealized Losses | -67,000 | ' | ' |
Fair Value | 102,640,000 | 104,656,000 | ' |
Available for sale, Fair Value | ' | ' | ' |
Continuous unrealized losses existing for less than 12 months, gross | 25,830,000 | ' | ' |
Total | 25,830,000 | ' | ' |
Available for sale, Unrealized Losses | ' | ' | ' |
Continuous unrealized losses existing for less than 12 months, gross | 67,000 | ' | ' |
Total | 67,000 | ' | ' |
Obligations of U.S. government corporations and agencies | ' | ' | ' |
Available for sale | ' | ' | ' |
Amortized Cost | 254,998,000 | 363,583,000 | ' |
Gross Unrealized Gains | 2,741,000 | 6,616,000 | ' |
Gross Unrealized Losses | -328,000 | -5,000 | ' |
Fair Value | 257,411,000 | 370,194,000 | ' |
Available for sale, Fair Value | ' | ' | ' |
Continuous unrealized losses existing for less than 12 months, gross | 25,946,000 | 10,155,000 | ' |
Total | 25,946,000 | 10,155,000 | ' |
Available for sale, Unrealized Losses | ' | ' | ' |
Continuous unrealized losses existing for less than 12 months, gross | 328,000 | 5,000 | ' |
Total | 328,000 | 5,000 | ' |
Obligations of states and political subdivisions | ' | ' | ' |
Available for sale | ' | ' | ' |
Amortized Cost | 272,077,000 | 274,350,000 | ' |
Gross Unrealized Gains | 2,887,000 | 6,176,000 | ' |
Gross Unrealized Losses | -2,812,000 | -238,000 | ' |
Fair Value | 272,152,000 | 280,288,000 | ' |
Held to maturity | ' | ' | ' |
Amortized Cost | 834,000 | ' | ' |
Gross Unrealized Gains | 1,000 | ' | ' |
Gross Unrealized Losses | -4,000 | ' | ' |
Fair Value | 831,000 | 0 | ' |
Held to maturity, Amortized Cost | ' | ' | ' |
Amortized Cost | 834,000 | ' | ' |
Held to maturity, Fair Value | ' | ' | ' |
Fair Value | 831,000 | 0 | ' |
Available for sale, Fair Value | ' | ' | ' |
Continuous unrealized losses existing for less than 12 months, gross | 92,703,000 | 37,958,000 | ' |
Continuous unrealized losses existing greater than 12 months, gross | 8,492,000 | 3,311,000 | ' |
Total | 101,195,000 | 41,269,000 | ' |
Available for sale, Unrealized Losses | ' | ' | ' |
Continuous unrealized losses existing for less than 12 months, gross | 2,518,000 | 189,000 | ' |
Continuous unrealized losses existing greater than 12 months, gross | 294,000 | 49,000 | ' |
Total | 2,812,000 | 238,000 | ' |
Held to maturity, Fair Value | ' | ' | ' |
Continuous unrealized losses existing for less than 12 months, gross | 597,000 | ' | ' |
Total | 597,000 | ' | ' |
Held to maturity, Unrealized Losses | ' | ' | ' |
Continuous unrealized losses existing for less than 12 months, gross | 4,000 | ' | ' |
Total | 4,000 | ' | ' |
Residential mortgage-backed securities | ' | ' | ' |
Available for sale | ' | ' | ' |
Amortized Cost | 174,699,000 | 210,139,000 | ' |
Gross Unrealized Gains | 3,571,000 | 7,576,000 | ' |
Gross Unrealized Losses | -535,000 | ' | ' |
Fair Value | 177,735,000 | 217,715,000 | ' |
Available for sale, Fair Value | ' | ' | ' |
Continuous unrealized losses existing for less than 12 months, gross | 53,543,000 | ' | ' |
Total | 53,543,000 | ' | ' |
Available for sale, Unrealized Losses | ' | ' | ' |
Continuous unrealized losses existing for less than 12 months, gross | 535,000 | ' | ' |
Total | 535,000 | ' | ' |
Corporate debt securities | ' | ' | ' |
Available for sale | ' | ' | ' |
Amortized Cost | 25,384,000 | 24,601,000 | ' |
Gross Unrealized Gains | 155,000 | 139,000 | ' |
Gross Unrealized Losses | -33,000 | -26,000 | ' |
Fair Value | 25,506,000 | 24,714,000 | ' |
Available for sale, Fair Value | ' | ' | ' |
Continuous unrealized losses existing for less than 12 months, gross | 1,614,000 | 15,207,000 | ' |
Total | 1,614,000 | 15,207,000 | ' |
Available for sale, Unrealized Losses | ' | ' | ' |
Continuous unrealized losses existing for less than 12 months, gross | 33,000 | 26,000 | ' |
Total | 33,000 | 26,000 | ' |
Mutual funds and other equity securities | ' | ' | ' |
Available for sale | ' | ' | ' |
Amortized Cost | 4,114,000 | 2,451,000 | ' |
Gross Unrealized Gains | 1,752,000 | 1,479,000 | ' |
Fair Value | $5,866,000 | $3,930,000 | ' |
Securities_Details_2
Securities (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
item | item | |
Securities | ' | ' |
Available for sale, fair value | $841,310,000 | $1,001,497,000 |
Held to maturity, fair value | 831,000 | ' |
General obligation bonds | ' | ' |
Securities | ' | ' |
Number of issuers | 219 | 227 |
Average Exposure Per Issuer (Fair Value) | 1,020,000 | 1,007,000 |
Amortized Cost | 222,693,000 | 223,010,000 |
Fair Value | 223,470,000 | 228,606,000 |
Amount of largest exposure to a single issuer | 5,000,000 | 5,200,000 |
Percentage of the entity's stockholders equity in excess of aggregate book or market value | 10.00% | 10.00% |
Percentage of underlying asset rated by at least a specified nationally recognized statistical rating organization | 96.40% | 94.30% |
Minimum number of nationally recognized statistical rating organizations | 1 | 1 |
Percentage of underlying asset unrated | 3.60% | 5.60% |
Percentage of underlying asset insured by a below-investment-grade insurer without an underlying rating | ' | 0.10% |
General obligation bonds | Illinois | ' | ' |
Securities | ' | ' |
Number of issuers | 82 | 97 |
Average Exposure Per Issuer (Fair Value) | 1,022,000 | 1,008,000 |
Amortized Cost | 82,884,000 | 94,614,000 |
Fair Value | 83,804,000 | 97,812,000 |
General obligation bonds | Wisconsin | ' | ' |
Securities | ' | ' |
Number of issuers | 41 | 42 |
Average Exposure Per Issuer (Fair Value) | 1,052,000 | 1,114,000 |
Amortized Cost | 43,117,000 | 46,286,000 |
Fair Value | 43,122,000 | 46,794,000 |
General obligation bonds | Michigan | ' | ' |
Securities | ' | ' |
Number of issuers | 37 | 35 |
Average Exposure Per Issuer (Fair Value) | 956,000 | 949,000 |
Amortized Cost | 35,350,000 | 32,572,000 |
Fair Value | 35,365,000 | 33,200,000 |
General obligation bonds | Pennsylvania | ' | ' |
Securities | ' | ' |
Number of issuers | 11 | 9 |
Average Exposure Per Issuer (Fair Value) | 1,285,000 | 1,332,000 |
Amortized Cost | 14,132,000 | 11,926,000 |
Fair Value | 14,133,000 | 11,987,000 |
General obligation bonds | Ohio | ' | ' |
Securities | ' | ' |
Number of issuers | 12 | 11 |
Average Exposure Per Issuer (Fair Value) | 952,000 | 900,000 |
Amortized Cost | 11,709,000 | 9,871,000 |
Fair Value | 11,426,000 | 9,905,000 |
General obligation bonds | Texas | ' | ' |
Securities | ' | ' |
Number of issuers | 7 | ' |
Average Exposure Per Issuer (Fair Value) | 1,039,000 | ' |
Amortized Cost | 7,510,000 | ' |
Fair Value | 7,270,000 | ' |
General obligation bonds | Iowa | ' | ' |
Securities | ' | ' |
Number of issuers | 3 | ' |
Average Exposure Per Issuer (Fair Value) | 2,020,000 | ' |
Amortized Cost | 6,126,000 | ' |
Fair Value | 6,060,000 | ' |
General obligation bonds | Other | ' | ' |
Securities | ' | ' |
Number of issuers | 26 | 33 |
Average Exposure Per Issuer (Fair Value) | 857,000 | 876,000 |
Amortized Cost | 21,865,000 | 27,741,000 |
Fair Value | 22,290,000 | 28,908,000 |
Revenue bonds | ' | ' |
Securities | ' | ' |
Number of issuers | 48 | 49 |
Average Exposure Per Issuer (Fair Value) | 1,032,000 | 1,055,000 |
Amortized Cost | 50,218,000 | 51,340,000 |
Fair Value | 49,513,000 | 51,682,000 |
Amount of largest exposure to a single issuer | 3,000,000 | 3,500,000 |
Percentage of the entity's stockholders equity in excess of aggregate book or market value | 10.00% | 10.00% |
Minimum number of nationally recognized statistical rating organizations | 1 | ' |
Revenue bonds | Illinois | ' | ' |
Securities | ' | ' |
Number of issuers | 4 | 4 |
Average Exposure Per Issuer (Fair Value) | 1,780,000 | 1,961,000 |
Amortized Cost | 7,356,000 | 7,832,000 |
Fair Value | 7,121,000 | 7,842,000 |
Revenue bonds | Indiana | ' | ' |
Securities | ' | ' |
Number of issuers | 14 | 11 |
Average Exposure Per Issuer (Fair Value) | 1,034,000 | 853,000 |
Amortized Cost | 14,740,000 | 9,339,000 |
Fair Value | 14,481,000 | 9,378,000 |
Revenue bonds | Other | ' | ' |
Securities | ' | ' |
Number of issuers | 30 | 34 |
Average Exposure Per Issuer (Fair Value) | 930,000 | 1,014,000 |
Amortized Cost | 28,122,000 | 34,169,000 |
Fair Value | 27,911,000 | 34,462,000 |
Obligations of states and political subdivisions | ' | ' |
Securities | ' | ' |
Available for sale, fair value | 272,152,000 | 280,288,000 |
Held to maturity, fair value | 831,000 | 0 |
Number of issuers | 267 | 276 |
Total Risk Based Capital for rated securities (as a percent) | 100.00% | ' |
Total Risk Based Capital for unrated securities (as a percent) | 15.00% | ' |
Obligations of states and political subdivisions | General obligation bonds | ' | ' |
Securities | ' | ' |
Fair Value | 223,500,000 | 228,600,000 |
Number of states in which investment is held | 25 | 26 |
Number of states in which investment is held in excess of aggregate fair value | 7 | 5 |
Aggregate fair value | 5,000,000 | 5,000,000 |
Obligations of states and political subdivisions | Revenue bonds | ' | ' |
Securities | ' | ' |
Fair Value | 49,500,000 | 51,700,000 |
Number of states in which investment is held | 21 | 23 |
Number of states in which investment is held in excess of aggregate fair value | 2 | 2 |
Aggregate fair value | $5,000,000 | $5,000,000 |
Loans_Details
Loans (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
item | ||||
mi | ||||
Loans | ' | ' | ' | ' |
Total | $2,295,300,000 | $2,073,110,000 | ' | ' |
Less held for sale | 13,840,000 | 40,003,000 | ' | ' |
Total loans before allowance for loan losses | 2,281,460,000 | 2,033,107,000 | ' | ' |
Less allowance for loan losses | 47,567,000 | 48,012,000 | 58,506,000 | 76,038,000 |
Net loans | 2,233,893,000 | 1,985,095,000 | ' | ' |
Net deferred loan origination costs | ' | 800,000 | ' | ' |
Minimum target period for lending via intermediate term loans | '0 years | ' | ' | ' |
Maximum target period for lending via intermediate term loans | '7 years | ' | ' | ' |
Geographical area from lending offices which attempt is made to lend short and intermediate term loans (in miles) | 125 | ' | ' | ' |
Direct and indirect maximum total borrowing relationship limit | 20,000,000 | ' | ' | ' |
Borrowing relationships, threshold above which board of directors will review annually | 20,000,000 | ' | ' | ' |
Number of primary areas for lending loan | 5 | ' | ' | ' |
Illinois | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 1,814,155,000 | 1,691,946,000 | ' | ' |
Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 301,873,000 | 277,464,000 | ' | ' |
Total loans before allowance for loan losses | 301,125,000 | 275,182,000 | ' | ' |
Less allowance for loan losses | 13,118,000 | 15,433,000 | 19,469,000 | 29,849,000 |
Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 179,272,000 | 103,700,000 | ' | ' |
Commercial | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 580,612,000 | 433,688,000 | ' | ' |
Commercial | Illinois | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 530,174,000 | 399,300,000 | ' | ' |
Commercial | Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 20,536,000 | 10,861,000 | ' | ' |
Total loans before allowance for loan losses | 20,536,000 | 10,861,000 | ' | ' |
Less allowance for loan losses | 1,926,000 | 1,437,000 | 1,939,000 | 2,013,000 |
Commercial | Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 29,902,000 | 23,527,000 | ' | ' |
Commercial real estate | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 1,092,273,000 | 981,132,000 | ' | ' |
Commercial real estate | Illinois | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 800,568,000 | 777,752,000 | ' | ' |
Commercial real estate | Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 160,255,000 | 138,170,000 | ' | ' |
Total loans before allowance for loan losses | 160,255,000 | 138,170,000 | ' | ' |
Less allowance for loan losses | 5,733,000 | 6,062,000 | 8,413,000 | 13,291,000 |
Commercial real estate | Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 131,450,000 | 65,210,000 | ' | ' |
Real estate construction | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 78,855,000 | 86,101,000 | ' | ' |
Real estate construction | Illinois | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 55,190,000 | 67,152,000 | ' | ' |
Real estate construction | Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 17,426,000 | 15,972,000 | ' | ' |
Total loans before allowance for loan losses | 17,426,000 | 15,972,000 | ' | ' |
Less allowance for loan losses | 1,168,000 | 2,315,000 | 2,936,000 | 4,717,000 |
Real estate construction | Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 6,239,000 | 2,977,000 | ' | ' |
Retail real estate | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 534,493,000 | 559,836,000 | ' | ' |
Minimum term of long-term loans entity sells to secondary market purchasers | '5 years | ' | ' | ' |
Maximum term of loans entity retains | '5 years | ' | ' | ' |
Retail real estate | Illinois | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 419,801,000 | 435,911,000 | ' | ' |
Retail real estate | Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 103,104,000 | 112,052,000 | ' | ' |
Total loans before allowance for loan losses | 102,356,000 | 109,770,000 | ' | ' |
Less allowance for loan losses | 4,287,000 | 5,614,000 | 6,160,000 | 9,748,000 |
Retail real estate | Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 11,588,000 | 11,873,000 | ' | ' |
Retail other | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 9,067,000 | 12,353,000 | ' | ' |
Retail other | Illinois | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 8,422,000 | 11,831,000 | ' | ' |
Retail other | Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | 552,000 | 409,000 | ' | ' |
Total loans before allowance for loan losses | 552,000 | 409,000 | ' | ' |
Less allowance for loan losses | 4,000 | 5,000 | 21,000 | 80,000 |
Retail other | Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Total | $93,000 | $113,000 | ' | ' |
Loans_Details_2
Loans (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Grades 1, 3, 6 and 7 | ' | ' |
Loans | ' | ' |
Loans receivable | $2,100,000,000 | $1,800,000,000 |
Increase or decrease in loans receivable | 314,000,000 | ' |
Grades 8, 9, and 10 | ' | ' |
Loans | ' | ' |
Loans receivable | 161,900,000 | 228,100,000 |
Increase or decrease in loans receivable | -66,200,000 | ' |
Grades 1,3,6 | ' | ' |
Loans | ' | ' |
Loans receivable | 1,928,794,000 | 1,594,150,000 |
Grades 1,3,6 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 1,710,039,000 | 1,419,453,000 |
Grades 1,3,6 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 218,755,000 | 174,697,000 |
Grade 7 | ' | ' |
Loans | ' | ' |
Loans receivable | 188,741,000 | 209,424,000 |
Grade 7 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 152,084,000 | 171,123,000 |
Grade 7 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 36,657,000 | 38,301,000 |
Grade 8 | ' | ' |
Loans | ' | ' |
Limit above which loans are quarterly reviewed | 500,000 | ' |
Loans receivable | 77,253,000 | 114,462,000 |
Grade 8 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 52,625,000 | 84,647,000 |
Grade 8 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 24,628,000 | 29,815,000 |
Grade 9 | ' | ' |
Loans | ' | ' |
Loans receivable | 67,531,000 | 88,581,000 |
Grade 9 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 50,240,000 | 64,299,000 |
Grade 9 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 17,291,000 | 24,282,000 |
Grade 10 | ' | ' |
Loans | ' | ' |
Loans receivable | 17,164,000 | 25,104,000 |
Grade 10 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 13,370,000 | 17,553,000 |
Grade 10 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 3,794,000 | 7,551,000 |
Commercial | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Weighted Avg. Risk Grade | 4.66 | 4.68 |
Commercial | Florida | ' | ' |
Loans | ' | ' |
Weighted Avg. Risk Grade | 5.89 | 5.91 |
Commercial | Grades 1,3,6 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 487,587,000 | 346,536,000 |
Commercial | Grades 1,3,6 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 16,460,000 | 6,359,000 |
Commercial | Grade 7 | ' | ' |
Loans | ' | ' |
Limit above which loans are annually reviewed | 500,000 | ' |
Commercial | Grade 7 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 46,992,000 | 46,201,000 |
Commercial | Grade 7 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 174,000 | 3,544,000 |
Commercial | Grade 8 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 15,986,000 | 12,374,000 |
Commercial | Grade 8 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 3,218,000 | 162,000 |
Commercial | Grade 9 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 8,536,000 | 15,677,000 |
Commercial | Grade 9 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 684,000 | 796,000 |
Commercial | Grade 10 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 975,000 | 2,039,000 |
Commercial real estate | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Weighted Avg. Risk Grade | 5.55 | 5.53 |
Commercial real estate | Florida | ' | ' |
Loans | ' | ' |
Weighted Avg. Risk Grade | 6.02 | 6.36 |
Commercial real estate | Grades 1,3,6 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 799,117,000 | 644,695,000 |
Commercial real estate | Grades 1,3,6 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 116,741,000 | 80,232,000 |
Commercial real estate | Grade 7 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 79,371,000 | 110,012,000 |
Commercial real estate | Grade 7 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 16,470,000 | 20,667,000 |
Commercial real estate | Grade 8 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 19,327,000 | 50,305,000 |
Commercial real estate | Grade 8 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 11,250,000 | 13,238,000 |
Commercial real estate | Grade 9 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 29,606,000 | 28,655,000 |
Commercial real estate | Grade 9 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 12,721,000 | 19,279,000 |
Commercial real estate | Grade 10 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 4,597,000 | 9,295,000 |
Commercial real estate | Grade 10 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 3,073,000 | 4,754,000 |
Real estate construction | ' | ' |
Loans | ' | ' |
Limit above which loans are quarterly reviewed | 500,000 | ' |
Real estate construction | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Weighted Avg. Risk Grade | 7.11 | 7.21 |
Real estate construction | Florida | ' | ' |
Loans | ' | ' |
Weighted Avg. Risk Grade | 6.64 | 6.97 |
Real estate construction | Grades 1,3,6 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 21,585,000 | 30,710,000 |
Real estate construction | Grades 1,3,6 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 7,886,000 | 4,137,000 |
Real estate construction | Grade 7 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 16,376,000 | 7,809,000 |
Real estate construction | Grade 7 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 7,961,000 | 7,721,000 |
Real estate construction | Grade 8 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 11,920,000 | 14,162,000 |
Real estate construction | Grade 8 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 743,000 | 3,172,000 |
Real estate construction | Grade 9 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 7,686,000 | 14,084,000 |
Real estate construction | Grade 9 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 836,000 | 942,000 |
Real estate construction | Grade 10 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 3,862,000 | 3,364,000 |
Retail real estate | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Weighted Avg. Risk Grade | 3.53 | 3.62 |
Retail real estate | Florida | ' | ' |
Loans | ' | ' |
Weighted Avg. Risk Grade | 3.85 | 3.98 |
Retail real estate | Grades 1,3,6 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 393,299,000 | 385,949,000 |
Retail real estate | Grades 1,3,6 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 77,116,000 | 83,578,000 |
Retail real estate | Grade 7 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 9,285,000 | 6,729,000 |
Retail real estate | Grade 7 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 12,052,000 | 6,369,000 |
Retail real estate | Grade 8 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 5,392,000 | 7,806,000 |
Retail real estate | Grade 8 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 9,417,000 | 13,225,000 |
Retail real estate | Grade 9 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 4,408,000 | 5,874,000 |
Retail real estate | Grade 9 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 3,050,000 | 3,265,000 |
Retail real estate | Grade 10 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 3,936,000 | 2,855,000 |
Retail real estate | Grade 10 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 721,000 | 2,797,000 |
Retail other | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Weighted Avg. Risk Grade | 2.64 | 3.34 |
Retail other | Florida | ' | ' |
Loans | ' | ' |
Weighted Avg. Risk Grade | 1.72 | 2.8 |
Retail other | Grades 1,3,6 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 8,451,000 | 11,563,000 |
Retail other | Grades 1,3,6 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | 552,000 | 391,000 |
Retail other | Grade 7 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | 60,000 | 372,000 |
Retail other | Grade 8 | Florida | ' | ' |
Loans | ' | ' |
Loans receivable | ' | 18,000 |
Retail other | Grade 9 | Illinois/Indiana | ' | ' |
Loans | ' | ' |
Loans receivable | $4,000 | $9,000 |
Loans_Details_3
Loans (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Loans past due, still accruing | ' | ' | ' |
30-59 Days | $1,976,000 | $1,847,000 | ' |
60-89 Days | 4,138,000 | 438,000 | ' |
90+Days | 195,000 | 256,000 | ' |
Non-accrual Loans | 17,164,000 | 25,104,000 | ' |
Minimum period past due as criterion for assessing impairment of loans | '60 days | ' | ' |
Minimum amount criterion for assessing impairment of loans | 250,000 | ' | ' |
Loans assessed for impairment if loans are above a particular limit and are of eighth grade | 500,000 | ' | ' |
Amount of problem loans sold from HS portfolio, net of charge-offs | 7,600,000 | 22,100,000 | ' |
Gross interest income that would have been recorded if impaired loans had been current | 1,300,000 | 3,400,000 | 6,000,000 |
Amount of interest collected and recognized on a cash basis | ' | ' | 1,000,000 |
Restructured loan included in the non-performing loan | '90 days | ' | ' |
Restructured loans | ' | ' | ' |
Total loans | 17,810,000 | 28,509,000 | ' |
Illinois/Indiana | ' | ' | ' |
Loans past due, still accruing | ' | ' | ' |
30-59 Days | 1,976,000 | 1,483,000 | ' |
60-89 Days | 4,138,000 | 435,000 | ' |
90+Days | 195,000 | 204,000 | ' |
Non-accrual Loans | 13,370,000 | 17,553,000 | ' |
Florida | ' | ' | ' |
Loans past due, still accruing | ' | ' | ' |
30-59 Days | ' | 364,000 | ' |
60-89 Days | ' | 3,000 | ' |
90+Days | ' | 52,000 | ' |
Non-accrual Loans | 3,794,000 | 7,551,000 | ' |
In compliance with modified terms | ' | ' | ' |
Restructured loans | ' | ' | ' |
Total loans | 11,511,000 | 22,023,000 | ' |
30-89 days past due | ' | ' | ' |
Restructured loans | ' | ' | ' |
Total loans | 380,000 | 28,000 | ' |
Included in non-performing loans | ' | ' | ' |
Restructured loans | ' | ' | ' |
Total loans | 5,919,000 | 6,458,000 | ' |
Commercial | Illinois/Indiana | ' | ' | ' |
Loans past due, still accruing | ' | ' | ' |
30-59 Days | 906,000 | 111,000 | ' |
60-89 Days | 279,000 | 80,000 | ' |
90+Days | 92,000 | 19,000 | ' |
Non-accrual Loans | 975,000 | 2,039,000 | ' |
Commercial real estate | Illinois/Indiana | ' | ' | ' |
Loans past due, still accruing | ' | ' | ' |
30-59 Days | 567,000 | 216,000 | ' |
60-89 Days | 3,736,000 | 59,000 | ' |
90+Days | ' | 139,000 | ' |
Non-accrual Loans | 4,597,000 | 9,295,000 | ' |
Commercial real estate | Florida | ' | ' | ' |
Loans past due, still accruing | ' | ' | ' |
Non-accrual Loans | 3,073,000 | 4,754,000 | ' |
Real estate construction | Illinois/Indiana | ' | ' | ' |
Loans past due, still accruing | ' | ' | ' |
Non-accrual Loans | 3,862,000 | 3,364,000 | ' |
Retail real estate | Illinois/Indiana | ' | ' | ' |
Loans past due, still accruing | ' | ' | ' |
30-59 Days | 483,000 | 1,154,000 | ' |
60-89 Days | 123,000 | 294,000 | ' |
90+Days | 103,000 | 46,000 | ' |
Non-accrual Loans | 3,936,000 | 2,855,000 | ' |
Retail real estate | Florida | ' | ' | ' |
Loans past due, still accruing | ' | ' | ' |
30-59 Days | ' | 364,000 | ' |
90+Days | ' | 52,000 | ' |
Non-accrual Loans | 721,000 | 2,797,000 | ' |
Retail other | Illinois/Indiana | ' | ' | ' |
Loans past due, still accruing | ' | ' | ' |
30-59 Days | 20,000 | 2,000 | ' |
60-89 Days | ' | 2,000 | ' |
Retail other | Florida | ' | ' | ' |
Loans past due, still accruing | ' | ' | ' |
60-89 Days | ' | $3,000 | ' |
Loans_Details_4
Loans (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | item | item | item | |
Loans | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | $40,077,000 | $70,963,000 | $40,077,000 | $70,963,000 |
Recorded Investment with No Allowance | 24,282,000 | 51,552,000 | 24,282,000 | 51,552,000 |
Recorded Investment with Allowance | 9,778,000 | 4,041,000 | 9,778,000 | 4,041,000 |
Total Recorded Investment | 34,060,000 | 55,593,000 | 34,060,000 | 55,593,000 |
Related Allowance | 4,287,000 | 1,757,000 | 4,287,000 | 1,757,000 |
Average Recorded Investment | ' | ' | 44,724,000 | 64,591,000 |
Minimum days past due for TDR loans to be classified as non-performing | ' | ' | '90 days | ' |
Illinois/Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 22,206,000 | 42,315,000 | 22,206,000 | 42,315,000 |
Recorded Investment with No Allowance | 10,914,000 | 30,294,000 | 10,914,000 | 30,294,000 |
Recorded Investment with Allowance | 7,922,000 | 2,083,000 | 7,922,000 | 2,083,000 |
Total Recorded Investment | 18,836,000 | 32,377,000 | 18,836,000 | 32,377,000 |
Related Allowance | 3,534,000 | 1,039,000 | 3,534,000 | 1,039,000 |
Average Recorded Investment | ' | ' | 25,689,000 | 38,571,000 |
Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 17,871,000 | 28,648,000 | 17,871,000 | 28,648,000 |
Recorded Investment with No Allowance | 13,368,000 | 21,258,000 | 13,368,000 | 21,258,000 |
Recorded Investment with Allowance | 1,856,000 | 1,958,000 | 1,856,000 | 1,958,000 |
Total Recorded Investment | 15,224,000 | 23,216,000 | 15,224,000 | 23,216,000 |
Related Allowance | 753,000 | 718,000 | 753,000 | 718,000 |
Average Recorded Investment | ' | ' | 19,035,000 | 26,020,000 |
In compliance with modified terms | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | 3 | 4 | 5 | 21 |
Recorded Investment | 360,000 | 2,101,000 | 666,000 | 10,657,000 |
In compliance with modified terms | Illinois/Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | 3 | 2 | 4 | 17 |
Recorded Investment | 360,000 | 1,352,000 | 579,000 | 9,206,000 |
In compliance with modified terms | Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | ' | 2 | 1 | 4 |
Recorded Investment | ' | 749,000 | 87,000 | 1,451,000 |
Included in non-performing loans | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | ' | 2 | 3 | 13 |
Recorded Investment | ' | 374,000 | 2,420,000 | 2,606,000 |
Included in non-performing loans | Illinois/Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | ' | 1 | 3 | 6 |
Recorded Investment | ' | 232,000 | 2,420,000 | 541,000 |
Included in non-performing loans | Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | ' | 1 | ' | 7 |
Recorded Investment | ' | 142,000 | ' | 2,065,000 |
Commercial | Illinois/Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 2,825,000 | 11,557,000 | 2,825,000 | 11,557,000 |
Recorded Investment with No Allowance | 1,684,000 | 7,214,000 | 1,684,000 | 7,214,000 |
Recorded Investment with Allowance | 602,000 | 265,000 | 602,000 | 265,000 |
Total Recorded Investment | 2,286,000 | 7,479,000 | 2,286,000 | 7,479,000 |
Related Allowance | 485,000 | 265,000 | 485,000 | 265,000 |
Average Recorded Investment | ' | ' | 4,169,000 | 10,109,000 |
Commercial | Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Average Recorded Investment | ' | ' | ' | 271,000 |
Commercial | In compliance with modified terms | Illinois/Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | 1 | 1 | 1 | 4 |
Recorded Investment | 98,000 | 752,000 | 98,000 | 2,032,000 |
Commercial | Included in non-performing loans | Illinois/Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | ' | ' | ' | 5 |
Recorded Investment | ' | ' | ' | 309,000 |
Commercial real estate | Illinois/Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 8,866,000 | 17,656,000 | 8,866,000 | 17,656,000 |
Recorded Investment with No Allowance | 3,671,000 | 12,020,000 | 3,671,000 | 12,020,000 |
Recorded Investment with Allowance | 3,740,000 | 1,288,000 | 3,740,000 | 1,288,000 |
Total Recorded Investment | 7,411,000 | 13,308,000 | 7,411,000 | 13,308,000 |
Related Allowance | 1,977,000 | 634,000 | 1,977,000 | 634,000 |
Average Recorded Investment | ' | ' | 10,335,000 | 14,607,000 |
Commercial real estate | Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 7,108,000 | 9,533,000 | 7,108,000 | 9,533,000 |
Recorded Investment with No Allowance | 3,946,000 | 5,988,000 | 3,946,000 | 5,988,000 |
Recorded Investment with Allowance | 1,319,000 | 585,000 | 1,319,000 | 585,000 |
Total Recorded Investment | 5,265,000 | 6,573,000 | 5,265,000 | 6,573,000 |
Related Allowance | 416,000 | 235,000 | 416,000 | 235,000 |
Average Recorded Investment | ' | ' | 6,662,000 | 6,506,000 |
Commercial real estate | In compliance with modified terms | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of modifications for short-term interest-rate relief | ' | ' | 1 | 1 |
Recorded investment for short-term interest-rate relief | ' | ' | 100,000 | 2,000,000 |
Number of modifications for short-term principal payment relief | ' | ' | 2 | 2 |
Recorded investment for short-term principal payment relief | ' | ' | 500,000 | 1,200,000 |
Commercial real estate | In compliance with modified terms | Illinois/Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | 1 | 1 | 2 | 2 |
Recorded Investment | 246,000 | 600,000 | 465,000 | 2,669,000 |
Commercial real estate | In compliance with modified terms | Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | ' | 1 | 1 | 1 |
Recorded Investment | ' | 571,000 | 87,000 | 571,000 |
Commercial real estate | Included in non-performing loans | Illinois/Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | ' | ' | 1 | ' |
Recorded Investment | ' | ' | 1,650,000 | ' |
Commercial real estate | Included in non-performing loans | Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | ' | ' | ' | 3 |
Recorded Investment | ' | ' | ' | 1,287,000 |
Real estate construction | Illinois/Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 4,932,000 | 6,851,000 | 4,932,000 | 6,851,000 |
Recorded Investment with No Allowance | 2,292,000 | 6,394,000 | 2,292,000 | 6,394,000 |
Recorded Investment with Allowance | 1,570,000 | ' | 1,570,000 | ' |
Total Recorded Investment | 3,862,000 | 6,394,000 | 3,862,000 | 6,394,000 |
Related Allowance | 468,000 | ' | 468,000 | ' |
Average Recorded Investment | ' | ' | 5,889,000 | 8,625,000 |
Real estate construction | Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 417,000 | 2,597,000 | 417,000 | 2,597,000 |
Recorded Investment with No Allowance | 417,000 | 2,597,000 | 417,000 | 2,597,000 |
Total Recorded Investment | 417,000 | 2,597,000 | 417,000 | 2,597,000 |
Average Recorded Investment | ' | ' | 1,294,000 | 3,989,000 |
Real estate construction | In compliance with modified terms | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Recorded investment for short-term principal payment relief | ' | ' | ' | 200,000 |
Recorded investment for forbearance agreement | ' | ' | ' | 2,800,000 |
Real estate construction | In compliance with modified terms | Illinois/Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | ' | ' | ' | 2 |
Recorded Investment | ' | ' | ' | 3,029,000 |
Real estate construction | Included in non-performing loans | Illinois/Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | ' | ' | 1 | ' |
Recorded Investment | ' | ' | 222,000 | ' |
Retail real estate | Illinois/Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 5,583,000 | 6,251,000 | 5,583,000 | 6,251,000 |
Recorded Investment with No Allowance | 3,267,000 | 4,666,000 | 3,267,000 | 4,666,000 |
Recorded Investment with Allowance | 2,010,000 | 530,000 | 2,010,000 | 530,000 |
Total Recorded Investment | 5,277,000 | 5,196,000 | 5,277,000 | 5,196,000 |
Related Allowance | 604,000 | 140,000 | 604,000 | 140,000 |
Average Recorded Investment | ' | ' | 5,296,000 | 5,206,000 |
Retail real estate | Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Unpaid Contractual Principal Balance | 10,346,000 | 16,518,000 | 10,346,000 | 16,518,000 |
Recorded Investment with No Allowance | 9,005,000 | 12,673,000 | 9,005,000 | 12,673,000 |
Recorded Investment with Allowance | 537,000 | 1,373,000 | 537,000 | 1,373,000 |
Total Recorded Investment | 9,542,000 | 14,046,000 | 9,542,000 | 14,046,000 |
Related Allowance | 337,000 | 483,000 | 337,000 | 483,000 |
Average Recorded Investment | ' | ' | 11,079,000 | 15,254,000 |
Retail real estate | In compliance with modified terms | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of modifications for short-term interest-rate relief | ' | ' | ' | 4 |
Recorded investment for short-term interest-rate relief | ' | ' | ' | 1,000,000 |
Number of modifications for short-term principal payment relief | ' | ' | ' | 8 |
Recorded investment for short-term principal payment relief | ' | ' | ' | 1,400,000 |
Retail real estate | In compliance with modified terms | Illinois/Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | 1 | ' | 1 | 9 |
Recorded Investment | 16,000 | ' | 16,000 | 1,476,000 |
Retail real estate | In compliance with modified terms | Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | ' | 1 | ' | 3 |
Recorded Investment | ' | 178,000 | ' | 880,000 |
Retail real estate | Included in non-performing loans | Illinois/Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | ' | 1 | 1 | 1 |
Recorded Investment | ' | 232,000 | 548,000 | 232,000 |
Retail real estate | Included in non-performing loans | Florida | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Number of contracts | ' | 1 | ' | 4 |
Recorded Investment | ' | 142,000 | ' | 778,000 |
Retail other | Illinois/Indiana | ' | ' | ' | ' |
Loans | ' | ' | ' | ' |
Average Recorded Investment | ' | ' | ' | $24,000 |
Loans_Details_5
Loans (Details 5) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
item | Grade 9 | Grade 9 | Grade 8 | Grade 8 | ||
item | ||||||
Loans | ' | ' | ' | ' | ' | ' |
The number of components in the general portion of the Company's allowance | ' | 2 | ' | ' | ' | ' |
Number of quarters whose historical average is used to calculate the historical loss ratio | ' | 20 | ' | ' | ' | ' |
Period of charge-off percentage based on which additional allocation is determined | ' | ' | '1 year | ' | ' | ' |
Minimum additional reserve (as a percent) | ' | ' | 3.00% | 3.00% | ' | ' |
Number of quarters in more current measure of historical losses in adversely graded loans | ' | ' | ' | ' | 12 | ' |
Number of quarters in less current measure of historical losses in adversely graded loans | ' | ' | ' | ' | 20 | ' |
Minimum additional amount for loans (as a percent) | ' | ' | ' | ' | 1.00% | 1.00% |
Increase in allowances | $5 | ' | ' | ' | ' | ' |
Loans_Details_6
Loans (Details 6) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in allowance for loan losses | ' | ' | ' |
Beginning balance | $48,012 | $58,506 | $76,038 |
Provision for loan loss | 7,500 | 16,500 | 20,000 |
Charged-off | -10,669 | -30,063 | -45,413 |
Recoveries | 2,724 | 3,069 | 7,881 |
Ending Balance | 47,567 | 48,012 | 58,506 |
Amount allocated to: | ' | ' | ' |
Ending Balance | 47,567 | 48,012 | 58,506 |
Loans: | ' | ' | ' |
Ending Balance | 2,281,460 | 2,033,107 | ' |
Illinois/Indiana | ' | ' | ' |
Changes in allowance for loan losses | ' | ' | ' |
Beginning balance | 32,579 | 39,037 | 46,189 |
Provision for loan loss | 6,350 | 15,891 | 15,367 |
Charged-off | -6,235 | -23,975 | -27,012 |
Recoveries | 1,755 | 1,626 | 4,493 |
Ending Balance | 34,449 | 32,579 | 39,037 |
Amount allocated to: | ' | ' | ' |
Loans individually evaluated for impairment | 3,534 | 1,039 | ' |
Loans collectively evaluated for impairment | 30,915 | 31,540 | ' |
Ending Balance | 34,449 | 32,579 | 39,037 |
Loans: | ' | ' | ' |
Loans individually evaluated for impairment | 18,836 | 32,377 | ' |
Loans collectively evaluated for impairment | 1,961,499 | 1,725,548 | ' |
Ending Balance | 1,980,335 | 1,757,925 | ' |
Florida | ' | ' | ' |
Changes in allowance for loan losses | ' | ' | ' |
Beginning balance | 15,433 | 19,469 | 29,849 |
Provision for loan loss | 1,150 | 609 | 4,633 |
Charged-off | -4,434 | -6,088 | -18,401 |
Recoveries | 969 | 1,443 | 3,388 |
Ending Balance | 13,118 | 15,433 | 19,469 |
Amount allocated to: | ' | ' | ' |
Loans individually evaluated for impairment | 753 | 718 | ' |
Loans collectively evaluated for impairment | 12,365 | 14,715 | ' |
Ending Balance | 13,118 | 15,433 | 19,469 |
Loans: | ' | ' | ' |
Loans individually evaluated for impairment | 15,224 | 23,216 | ' |
Loans collectively evaluated for impairment | 285,901 | 251,966 | ' |
Ending Balance | 301,125 | 275,182 | ' |
Commercial | Illinois/Indiana | ' | ' | ' |
Changes in allowance for loan losses | ' | ' | ' |
Beginning balance | 6,597 | 9,143 | 11,827 |
Provision for loan loss | 2,681 | 1,428 | 2,565 |
Charged-off | -964 | -4,176 | -6,779 |
Recoveries | 138 | 202 | 1,530 |
Ending Balance | 8,452 | 6,597 | 9,143 |
Amount allocated to: | ' | ' | ' |
Loans individually evaluated for impairment | 485 | 265 | ' |
Loans collectively evaluated for impairment | 7,967 | 6,332 | ' |
Ending Balance | 8,452 | 6,597 | 9,143 |
Loans: | ' | ' | ' |
Loans individually evaluated for impairment | 2,286 | 7,479 | ' |
Loans collectively evaluated for impairment | 557,790 | 415,348 | ' |
Ending Balance | 560,076 | 422,827 | ' |
Commercial | Florida | ' | ' | ' |
Changes in allowance for loan losses | ' | ' | ' |
Beginning balance | 1,437 | 1,939 | 2,013 |
Provision for loan loss | 414 | -811 | 3,841 |
Charged-off | ' | -246 | -3,947 |
Recoveries | 75 | 555 | 32 |
Ending Balance | 1,926 | 1,437 | 1,939 |
Amount allocated to: | ' | ' | ' |
Loans collectively evaluated for impairment | 1,926 | 1,437 | ' |
Ending Balance | 1,926 | 1,437 | 1,939 |
Loans: | ' | ' | ' |
Loans collectively evaluated for impairment | 20,536 | 10,861 | ' |
Ending Balance | 20,536 | 10,861 | ' |
Commercial Real Estate | Illinois/Indiana | ' | ' | ' |
Changes in allowance for loan losses | ' | ' | ' |
Beginning balance | 15,023 | 18,605 | 19,504 |
Provision for loan loss | 2,143 | 10,058 | 9,604 |
Charged-off | -1,361 | -14,016 | -10,643 |
Recoveries | 574 | 376 | 140 |
Ending Balance | 16,379 | 15,023 | 18,605 |
Amount allocated to: | ' | ' | ' |
Loans individually evaluated for impairment | 1,977 | 634 | ' |
Loans collectively evaluated for impairment | 14,402 | 14,389 | ' |
Ending Balance | 16,379 | 15,023 | 18,605 |
Loans: | ' | ' | ' |
Loans individually evaluated for impairment | 7,411 | 13,308 | ' |
Loans collectively evaluated for impairment | 924,607 | 829,654 | ' |
Ending Balance | 932,018 | 842,962 | ' |
Commercial Real Estate | Florida | ' | ' | ' |
Changes in allowance for loan losses | ' | ' | ' |
Beginning balance | 6,062 | 8,413 | 13,291 |
Provision for loan loss | 2,225 | -619 | -2,130 |
Charged-off | -2,543 | -1,858 | -3,655 |
Recoveries | -11 | 126 | 907 |
Ending Balance | 5,733 | 6,062 | 8,413 |
Amount allocated to: | ' | ' | ' |
Loans individually evaluated for impairment | 416 | 235 | ' |
Loans collectively evaluated for impairment | 5,317 | 5,827 | ' |
Ending Balance | 5,733 | 6,062 | 8,413 |
Loans: | ' | ' | ' |
Loans individually evaluated for impairment | 5,265 | 6,573 | ' |
Loans collectively evaluated for impairment | 154,990 | 131,597 | ' |
Ending Balance | 160,255 | 138,170 | ' |
Real Estate Construction | Illinois/Indiana | ' | ' | ' |
Changes in allowance for loan losses | ' | ' | ' |
Beginning balance | 2,527 | 4,352 | 7,186 |
Provision for loan loss | 847 | -270 | 1,478 |
Charged-off | -1,212 | -1,883 | -4,983 |
Recoveries | 378 | 328 | 671 |
Ending Balance | 2,540 | 2,527 | 4,352 |
Amount allocated to: | ' | ' | ' |
Loans individually evaluated for impairment | 468 | ' | ' |
Loans collectively evaluated for impairment | 2,072 | 2,527 | ' |
Ending Balance | 2,540 | 2,527 | 4,352 |
Loans: | ' | ' | ' |
Loans individually evaluated for impairment | 3,862 | 6,394 | ' |
Loans collectively evaluated for impairment | 57,567 | 63,735 | ' |
Ending Balance | 61,429 | 70,129 | ' |
Real Estate Construction | Florida | ' | ' | ' |
Changes in allowance for loan losses | ' | ' | ' |
Beginning balance | 2,315 | 2,936 | 4,717 |
Provision for loan loss | -1,419 | -555 | 195 |
Charged-off | -56 | -336 | -2,573 |
Recoveries | 328 | 270 | 597 |
Ending Balance | 1,168 | 2,315 | 2,936 |
Amount allocated to: | ' | ' | ' |
Loans collectively evaluated for impairment | 1,168 | 2,315 | ' |
Ending Balance | 1,168 | 2,315 | 2,936 |
Loans: | ' | ' | ' |
Loans individually evaluated for impairment | 417 | 2,597 | ' |
Loans collectively evaluated for impairment | 17,009 | 13,375 | ' |
Ending Balance | 17,426 | 15,972 | ' |
Retail Real Estate | Illinois/Indiana | ' | ' | ' |
Changes in allowance for loan losses | ' | ' | ' |
Beginning balance | 8,110 | 6,473 | 5,199 |
Provision for loan loss | 616 | 4,397 | 4,463 |
Charged-off | -2,187 | -3,264 | -3,973 |
Recoveries | 323 | 504 | 784 |
Ending Balance | 6,862 | 8,110 | 6,473 |
Amount allocated to: | ' | ' | ' |
Loans individually evaluated for impairment | 604 | 140 | ' |
Loans collectively evaluated for impairment | 6,258 | 7,970 | ' |
Ending Balance | 6,862 | 8,110 | 6,473 |
Loans: | ' | ' | ' |
Loans individually evaluated for impairment | 5,277 | 5,196 | ' |
Loans collectively evaluated for impairment | 413,020 | 404,867 | ' |
Ending Balance | 418,297 | 410,063 | ' |
Retail Real Estate | Florida | ' | ' | ' |
Changes in allowance for loan losses | ' | ' | ' |
Beginning balance | 5,614 | 6,160 | 9,748 |
Provision for loan loss | -51 | 2,626 | 2,773 |
Charged-off | -1,828 | -3,646 | -8,192 |
Recoveries | 552 | 474 | 1,831 |
Ending Balance | 4,287 | 5,614 | 6,160 |
Amount allocated to: | ' | ' | ' |
Loans individually evaluated for impairment | 337 | 483 | ' |
Loans collectively evaluated for impairment | 3,950 | 5,131 | ' |
Ending Balance | 4,287 | 5,614 | 6,160 |
Loans: | ' | ' | ' |
Loans individually evaluated for impairment | 9,542 | 14,046 | ' |
Loans collectively evaluated for impairment | 92,814 | 95,724 | ' |
Ending Balance | 102,356 | 109,770 | ' |
Retail Other | Illinois/Indiana | ' | ' | ' |
Changes in allowance for loan losses | ' | ' | ' |
Beginning balance | 322 | 464 | 2,473 |
Provision for loan loss | 63 | 278 | -2,743 |
Charged-off | -511 | -636 | -634 |
Recoveries | 342 | 216 | 1,368 |
Ending Balance | 216 | 322 | 464 |
Amount allocated to: | ' | ' | ' |
Loans collectively evaluated for impairment | 216 | 322 | ' |
Ending Balance | 216 | 322 | 464 |
Loans: | ' | ' | ' |
Loans collectively evaluated for impairment | 8,515 | 11,944 | ' |
Ending Balance | 8,515 | 11,944 | ' |
Retail Other | Florida | ' | ' | ' |
Changes in allowance for loan losses | ' | ' | ' |
Beginning balance | 5 | 21 | 80 |
Provision for loan loss | -19 | -32 | -46 |
Charged-off | -7 | -2 | -34 |
Recoveries | 25 | 18 | 21 |
Ending Balance | 4 | 5 | 21 |
Amount allocated to: | ' | ' | ' |
Loans collectively evaluated for impairment | 4 | 5 | ' |
Ending Balance | 4 | 5 | 21 |
Loans: | ' | ' | ' |
Loans collectively evaluated for impairment | 552 | 409 | ' |
Ending Balance | $552 | $409 | ' |
Loan_Servicing_Details
Loan Servicing (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Loan Servicing | ' | ' | ' |
Unpaid principal balances of loans serviced by the entity for the benefit of others | $1,440,000,000 | $1,340,000,000 | ' |
Capitalized servicing rights included in other assets | 5,100,000 | 5,300,000 | ' |
Fair values of servicing rights | 6,400,000 | 8,600,000 | ' |
Mortgage servicing rights capitalized and amortized | ' | ' | ' |
Mortgage servicing rights capitalized | 2,490,000 | 2,794,000 | 2,741,000 |
Mortgage servicing rights amortized | $2,650,000 | $2,972,000 | $2,530,000 |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Premises and equipment | ' | ' | ' |
Premises and equipment, gross | $117,313,000 | $129,457,000 | ' |
Less accumulated depreciation | 51,486,000 | 58,390,000 | ' |
Total premises and equipment | 65,827,000 | 71,067,000 | ' |
Depreciation expense | 5,500,000 | 5,400,000 | 5,500,000 |
Land and improvements | ' | ' | ' |
Premises and equipment | ' | ' | ' |
Premises and equipment, gross | 21,532,000 | 22,732,000 | ' |
Buildings and improvements | ' | ' | ' |
Premises and equipment | ' | ' | ' |
Premises and equipment, gross | 62,159,000 | 65,099,000 | ' |
Furniture and equipment | ' | ' | ' |
Premises and equipment | ' | ' | ' |
Premises and equipment, gross | $33,622,000 | $41,626,000 | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Busey Bank | FirsTech | FirsTech | Busey Wealth Management | Busey Wealth Management | |||
Goodwill and other intangibles assets | ' | ' | ' | ' | ' | ' | ' |
Goodwill impairment | $0 | $0 | $208,200 | ' | ' | ' | ' |
Changes in the carrying amount of goodwill | 0 | 0 | ' | ' | ' | ' | ' |
Total Goodwill | $20,686 | $20,686 | ' | $8,992 | $8,992 | $11,694 | $11,694 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Amortized intangible assets: | ' | ' | ' |
Balance at the beginning of period | $12,703 | ' | ' |
Amortization | 3,132 | 3,315 | 3,538 |
Balance at the end of period | 9,571 | 12,703 | ' |
Core deposit intangible assets | ' | ' | ' |
Amortized intangible assets: | ' | ' | ' |
Balance at the beginning of period | 8,174 | ' | ' |
Amortization | 2,050 | ' | ' |
Balance at the end of period | 6,124 | ' | ' |
Core deposit intangible assets | Maximum | ' | ' | ' |
Goodwill and other intangibles assets | ' | ' | ' |
Intangible asset estimated period | '10 years | ' | ' |
Customer relationship intangible assets | ' | ' | ' |
Amortized intangible assets: | ' | ' | ' |
Balance at the beginning of period | 4,529 | ' | ' |
Amortization | 1,082 | ' | ' |
Balance at the end of period | $3,447 | ' | ' |
Customer relationship intangible assets | Maximum | ' | ' | ' |
Goodwill and other intangibles assets | ' | ' | ' |
Intangible asset estimated period | '10 years | ' | ' |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill and other intangibles assets | ' | ' |
Net carrying amount | $9,571 | $12,703 |
Estimated amortization expense: | ' | ' |
Net carrying amount | 9,571 | 12,703 |
Core deposit intangible | ' | ' |
Goodwill and other intangibles assets | ' | ' |
Gross carrying amount | 34,836 | ' |
Accumulated amortization | 28,712 | ' |
Net carrying amount | 6,124 | 8,174 |
Estimated amortization expense: | ' | ' |
2014 | 1,870 | ' |
2015 | 1,719 | ' |
2016 | 1,644 | ' |
2017 | 891 | ' |
Net carrying amount | 6,124 | 8,174 |
Customer relationship intangible | ' | ' |
Goodwill and other intangibles assets | ' | ' |
Gross carrying amount | 11,320 | ' |
Accumulated amortization | 7,873 | ' |
Net carrying amount | 3,447 | 4,529 |
Estimated amortization expense: | ' | ' |
2014 | 1,014 | ' |
2015 | 972 | ' |
2016 | 929 | ' |
2017 | 532 | ' |
Net carrying amount | $3,447 | $4,529 |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deposits | ' | ' |
Demand deposits, non-interest-bearing | $547,531,000 | $611,043,000 |
Interest-bearing transaction deposits | 61,384,000 | 66,295,000 |
Savings deposits | 206,587,000 | 202,263,000 |
Money market deposits | 1,471,265,000 | 1,409,492,000 |
Time deposits | 582,371,000 | 691,199,000 |
Total deposits | 2,869,138,000 | 2,980,292,000 |
Time deposits minimum denomination of $100,000 or more | 163,700,000 | 202,400,000 |
Brokered and National included in the balance of time deposits | 500,000 | 700,000 |
Deposits | ' | ' |
2014 | 349,128,000 | ' |
2015 | 112,585,000 | ' |
2016 | 60,553,000 | ' |
2017 | 41,076,000 | ' |
2018 | 19,025,000 | ' |
Thereafter | 4,000 | ' |
Total | $582,371,000 | $691,199,000 |
Securities_Sold_Under_Agreemen2
Securities Sold Under Agreements to Repurchase (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Securities Sold Under Agreements to Repurchase | ' | ' |
Maximum maturity period of securities sold under agreements to repurchase | '1 year | ' |
Balance | $172,348 | $139,024 |
Weighted average interest rate at end of period (as a percent) | 0.13% | 0.15% |
Maximum outstanding at any month end | 172,348 | 146,710 |
Average daily balance | $137,777 | $132,150 |
Weighted average interest rate during period (as a percent) | 0.14% | 0.21% |
Shortterm_Borrowings_Details
Short-term Borrowings (Details) (Line of Credit, USD $) | Dec. 31, 2012 |
In Millions, unless otherwise specified | |
Line of Credit | ' |
Short-term borrowings | ' |
Maximum borrowing capacity | $20 |
Outstanding amounts | $0 |
Longterm_Debt_Details
Long-term Debt (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Long-term debt | ' |
Long-term debt | $7,000 |
Notes payable, Federal Home Loan Bank of Chicago | ' |
Long-term debt | ' |
Long-term debt | $7,000 |
Interest rate, minimum (as a percent) | 4.68% |
Interest rate, maximum (as a percent) | 5.39% |
Weighted average rate (as a percent) | 5.29% |
Junior_Subordinated_Debt_Owed_2
Junior Subordinated Debt Owed to Unconsolidated Trusts (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Junior subordinated debt owed to unconsolidated trusts | ' |
Maximum assets of bank holding companies for inclusion of proceeds of trust preferred securities from Tier 1 capital unless such securities were issued prior to May 19, 2010 | $15,000,000,000 |
Trust Preferred Securities | ' |
Junior subordinated debt owed to unconsolidated trusts | ' |
Percentage limit on inclusion of qualifying trust preferred securities in Tier I Capital | 25.00% |
Transition period for inclusion of qualifying trust preferred securities in Tier I Capital | '5 years |
Trust preferred securities qualified as Tier I capital (as a percent) | 100.00% |
Maximum assets of bank holding companies for inclusion of proceeds of trust preferred securities from Tier 1 capital unless such securities were issued prior to May 19, 2010 | 15,000,000,000 |
First Busey Statutory Trust II | Trust Preferred Securities | ' |
Junior subordinated debt owed to unconsolidated trusts | ' |
Face value | 15,000,000 |
Base rate | '3-mo LIBOR |
Annual distribution rate margin (as a percent) | 2.65% |
First Busey Statutory Trust III | Trust Preferred Securities | ' |
Junior subordinated debt owed to unconsolidated trusts | ' |
Face value | 10,000,000 |
Base rate | '3-mo LIBOR |
Annual distribution rate margin (as a percent) | 1.75% |
First Busey Statutory Trust IV | Trust Preferred Securities | ' |
Junior subordinated debt owed to unconsolidated trusts | ' |
Face value | 30,000,000 |
Base rate | '3-mo LIBOR |
Annual distribution rate margin (as a percent) | 1.55% |
Term of trust preferred securities | '5 years |
Fixed coupon rate (as a percent) | 6.94% |
Junior Subordinated Notes | Trust Preferred Securities | ' |
Junior subordinated debt owed to unconsolidated trusts | ' |
Maximum period to defer payment of interest on the notes and, therefore, distributions on the trust preferred securities | '5 years |
Junior Subordinated Notes | First Busey Statutory Trust II | ' |
Junior subordinated debt owed to unconsolidated trusts | ' |
Principal balance | 15,000,000 |
Base rate | '3-mo LIBOR |
Interest rate margin (as a percent) | 2.65% |
Junior Subordinated Notes | First Busey Statutory Trust III | ' |
Junior subordinated debt owed to unconsolidated trusts | ' |
Principal balance | 10,000,000 |
Base rate | '3-mo LIBOR |
Interest rate margin (as a percent) | 1.75% |
Junior Subordinated Notes | First Busey Statutory Trust IV | ' |
Junior subordinated debt owed to unconsolidated trusts | ' |
Principal balance | $30,000,000 |
Base rate | '3-mo LIBOR |
Interest rate margin (as a percent) | 1.55% |
Term of debt | '5 years |
Fixed coupon rate (as a percent) | 6.94% |
Capital_Details
Capital (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||
Aug. 25, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 01, 2011 | Aug. 25, 2011 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 25, 2011 | Dec. 28, 2010 | Mar. 01, 2011 | |
Series C Preferred stock | Series C Preferred stock | Series C Preferred stock | Series C Preferred stock | Series C Preferred stock | Series C Preferred stock | Series T Preferred stock | Series B Preferred stock | Series B Preferred stock | ||||||
Initial dividend period | Period from the 2nd through the 10th calendar quarters | Period from the 11th calendar quarter through 4.5 years after issuance | Period from the 11th calendar quarter through 4.5 years after issuance | Period after 4.5 years from issuance | ||||||||||
Minimum | Maximum | |||||||||||||
Capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued | ' | ' | ' | ' | ' | 72,664 | ' | ' | ' | ' | ' | ' | 318.6225 | ' |
Preferred stock, liquidation value (in dollars per share) | ' | ' | $1,000 | $1,000 | ' | $1,000 | ' | ' | ' | ' | ' | ' | $100,000 | ' |
Aggregate proceeds from issuance of shares | ' | $72,664,000 | ' | ' | ' | $72,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend rate (as a percent) | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | 1.00% | 7.00% | 9.00% | ' | 9.00% | ' |
Shares redeemed | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' |
Redemption price | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,100,000 | ' | ' |
Number of shares of common stock that can be purchased by exercise of warrants | 1,147,666 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage reduction in the number of shares of common stock that can be purchased by exercise of warrants | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock that can be purchased by exercise of warrants, after reduction | 573,833 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants outstanding (in shares) | ' | ' | 573,833 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000 | ' |
Value of shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $31,900,000 | ' |
Conversion price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.25 |
Additional common shares outstanding | ' | ' | ' | ' | 7,497,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares outstanding | ' | ' | 72,664 | 72,664 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Capital_Details_2
Capital (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 30, 2013 | Dec. 31, 2013 | Jan. 22, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Dodd-Frank Act ("Basel III Rules") | Dodd-Frank Act ("Basel III Rules") | Busey Bank | Busey Bank | Busey Bank | |||
Regulatory Capital | ' | ' | ' | ' | ' | ' | ' |
Distribution received through chartered amendment | ' | ' | ' | ' | $50,000,000 | ' | ' |
Total Capital (to Risk Weighted Assets), Amount | ' | ' | ' | ' | ' | ' | ' |
Actual | 449,407,000 | 419,343,000 | ' | ' | ' | 396,248,000 | 406,597,000 |
Minimum Capital Requirement | 197,422,000 | 180,026,000 | ' | ' | ' | 196,002,000 | 179,278,000 |
Minimum To Be Well Capitalized | 246,777,000 | 225,033,000 | ' | ' | ' | 245,002,000 | 224,097,000 |
Total Capital (to Risk Weighted Assets), Ratio | ' | ' | ' | ' | ' | ' | ' |
Actual (as a percent) | 18.21% | 18.63% | ' | ' | ' | 16.17% | 18.14% |
Minimum Capital Requirement (as a percent) | 8.00% | 8.00% | ' | ' | ' | 8.00% | 8.00% |
Minimum To Be Well Capitalized (as a percent) | 10.00% | 10.00% | 10.00% | ' | ' | 10.00% | 10.00% |
Tier I Capital (to Risk Weighted Assets), Amount | ' | ' | ' | ' | ' | ' | ' |
Actual | 417,564,000 | 390,304,000 | ' | ' | ' | 364,625,000 | 377,673,000 |
Minimum Capital Requirement | 98,711,000 | 90,013,000 | ' | ' | ' | 98,001,000 | 89,639,000 |
Minimum To Be Well Capitalized | 148,067,000 | 135,020,000 | ' | ' | ' | 147,001,000 | 134,458,000 |
Tier I Capital (to Risk Weighted Assets), Ratio | ' | ' | ' | ' | ' | ' | ' |
Actual (as a percent) | 16.92% | 17.34% | ' | ' | ' | 14.88% | 16.85% |
Minimum Capital Requirement (as a percent) | 4.00% | 4.00% | ' | ' | ' | 4.00% | 4.00% |
Minimum To Be Well Capitalized (as a percent) | 6.00% | 6.00% | 8.00% | ' | ' | 6.00% | 6.00% |
Tier I Capital (to Average Assets), Amount | ' | ' | ' | ' | ' | ' | ' |
Actual | 417,564,000 | 390,304,000 | ' | ' | ' | 364,625,000 | 377,673,000 |
Minimum Capital Requirement | 138,896,000 | 138,151,000 | ' | ' | ' | 136,818,000 | 137,488,000 |
Minimum To Be Well Capitalized | ' | ' | ' | ' | ' | 171,023,000 | 171,859,000 |
Tier I Capital (to Average Assets), Ratio | ' | ' | ' | ' | ' | ' | ' |
Actual (as a percent) | 12.02% | 11.30% | ' | ' | ' | 10.66% | 10.99% |
Minimum Capital Requirement (as a percent) | 4.00% | 4.00% | ' | ' | ' | 4.00% | 4.00% |
Minimum To Be Well Capitalized (as a percent) | ' | ' | ' | ' | ' | 5.00% | 5.00% |
Maximum assets of bank holding companies for inclusion of proceeds of trust preferred securities from Tier 1 capital unless such securities were issued prior to May 19, 2010 | 15,000,000,000 | ' | ' | ' | ' | ' | ' |
Common equity Tier 1 Risk Based Capital to be well capitalized percentage | ' | ' | 6.50% | ' | ' | ' | ' |
Tier 1 Leverage Capital to be well capitalized percentage | ' | ' | 5.00% | ' | ' | ' | ' |
Maximum consolidated assets of bank holding companies | ' | ' | 500,000,000 | ' | ' | ' | ' |
Maximum consolidated assets of bank holding companies to retain the existing treatment for accumulated other comprehensive income which currently does not affect regulatory capital | ' | ' | ' | $15,000,000,000 | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Components of income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current | ' | ' | ' | ' | ' | ' | ' | ' | $4,020,000 | $1,926,000 | $2,194,000 |
Deferred | ' | ' | ' | ' | ' | ' | ' | ' | 10,091,000 | 8,571,000 | 12,776,000 |
Total income tax expense | 3,528,000 | 3,572,000 | 3,787,000 | 3,224,000 | 2,556,000 | 2,331,000 | 1,877,000 | 3,733,000 | 14,111,000 | 10,497,000 | 14,970,000 |
Reconciliation of federal and state income taxes at statutory rates to the income taxes included in the statements of operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax at statutory rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
Tax-exempt interest, net (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -3.50% | -4.50% | -2.60% |
State income taxes, net (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 4.50% | 3.50% | 2.10% |
Income on bank owned life insurance (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -0.90% | -1.80% | -1.00% |
Other, net (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -2.20% | -0.30% | -0.10% |
Total (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 32.90% | 31.90% | 33.40% |
Deferred tax assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 19,416,000 | ' | ' | ' | 19,597,000 | ' | ' | ' | 19,416,000 | 19,597,000 | ' |
Stock-based compensation | 1,319,000 | ' | ' | ' | 1,183,000 | ' | ' | ' | 1,319,000 | 1,183,000 | ' |
Loan adjustments | 108,000 | ' | ' | ' | 396,000 | ' | ' | ' | 108,000 | 396,000 | ' |
Deferred compensation | 2,015,000 | ' | ' | ' | 1,993,000 | ' | ' | ' | 2,015,000 | 1,993,000 | ' |
Accrued vacation | 545,000 | ' | ' | ' | 576,000 | ' | ' | ' | 545,000 | 576,000 | ' |
Employee costs | 1,264,000 | ' | ' | ' | 616,000 | ' | ' | ' | 1,264,000 | 616,000 | ' |
Other | 1,780,000 | ' | ' | ' | 1,423,000 | ' | ' | ' | 1,780,000 | 1,423,000 | ' |
Total | 26,447,000 | ' | ' | ' | 25,784,000 | ' | ' | ' | 26,447,000 | 25,784,000 | ' |
Investment securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gains on securities available for sale | -3,119,000 | ' | ' | ' | -9,479,000 | ' | ' | ' | -3,119,000 | -9,479,000 | ' |
Other | -2,450,000 | ' | ' | ' | -2,273,000 | ' | ' | ' | -2,450,000 | -2,273,000 | ' |
Basis in premises and equipment | -2,590,000 | ' | ' | ' | -2,215,000 | ' | ' | ' | -2,590,000 | -2,215,000 | ' |
Mortgage servicing assets | -2,097,000 | ' | ' | ' | -2,159,000 | ' | ' | ' | -2,097,000 | -2,159,000 | ' |
Basis in core deposit and customer intangible assets | -3,908,000 | ' | ' | ' | -5,185,000 | ' | ' | ' | -3,908,000 | -5,185,000 | ' |
Deferred loan origination costs | -20,000 | ' | ' | ' | -303,000 | ' | ' | ' | -20,000 | -303,000 | ' |
Deferred tax liabilities | -14,184,000 | ' | ' | ' | -21,614,000 | ' | ' | ' | -14,184,000 | -21,614,000 | ' |
Net operating loss carryforward, net of valuation allowance | 23,379,000 | ' | ' | ' | 35,203,000 | ' | ' | ' | 23,379,000 | 35,203,000 | ' |
Net deferred tax assets | 35,642,000 | ' | ' | ' | 39,373,000 | ' | ' | ' | 35,642,000 | 39,373,000 | ' |
Operating loss carryforwards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation allowance required for other deferred tax assets | 0 | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Federal and Illinois | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating loss carryforwards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net operating loss carryforwards | 23,400,000 | ' | ' | ' | 35,200,000 | ' | ' | ' | 23,400,000 | 35,200,000 | ' |
Indiana and Florida | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating loss carryforwards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net operating loss carryforwards | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' |
Valuation allowance | $1,500,000 | ' | ' | ' | ' | ' | ' | ' | $1,500,000 | ' | ' |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employees' Stock Ownership Plan | ' | ' | ' |
ESOP trust outstanding bank borrowings or debt | $0 | $0 | ' |
Compensation expense | ' | 100,000 | 100,000 |
Shares released to participant accounts in each year | ' | 20,000 | 20,000 |
Number of allocated shares acquired prior to December 31, 1992 | 543,471 | 594,504 | ' |
Associated fair values of allocated shares acquired prior to December 31, 1992 | 3,200,000 | 2,800,000 | ' |
Shares | ' | ' | ' |
Allocated shares | 192,171 | 212,146 | ' |
Fair Value | ' | ' | ' |
Allocated shares, Fair Value | 1,115,000 | 986,000 | ' |
Profit Sharing Plan | ' | ' | ' |
Vesting period | '5 years | ' | ' |
Expenses related to employee benefit plans | ' | ' | ' |
Employee benefits | 2,975,000 | 3,024,000 | 2,985,000 |
Interest on employee stock ownership plan debt | ' | 5,000 | 11,000 |
Total employer contributions | 2,975,000 | 3,029,000 | 2,996,000 |
Deferred compensation plans for deferral of performance bonuses | ' | ' | ' |
Deferred compensation expense | 200,000 | 200,000 | 200,000 |
Deferred compensation liability | $4,800,000 | $4,500,000 | $4,300,000 |
Stock_Incentive_Plans_Details
Stock Incentive Plans (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
19-May-10 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Options and SARs | Stock awards | Cash incentive awards and cash-settled stock awards | |||
Maximum | Maximum | Maximum | |||
Stock Incentive Plans | ' | ' | ' | ' | ' |
Maximum number of shares that may be delivered to participants | ' | 4,000,000 | ' | ' | ' |
Period from effective date after which no awards may be granted | '10 years | ' | ' | ' | ' |
Stock Incentive Plans | ' | ' | ' | ' | ' |
Shares available for grant during any calendar year | ' | ' | 400,000 | 200,000 | ' |
Amount of award payable with respect to any calendar year | ' | ' | ' | ' | $1,000,000 |
Stock_Incentive_Plans_Details_
Stock Incentive Plans (Details 2) (Stock option awards, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock option awards | ' | ' | ' |
Shares | ' | ' | ' |
Outstanding at beginning of year (in shares) | 857,468 | 1,017,922 | 1,351,593 |
Forfeited (in shares) | -161,089 | -160,454 | -333,671 |
Outstanding at end of period (in shares) | 696,379 | 857,468 | 1,017,922 |
Exercisable at end of period (in shares) | 696,379 | 857,468 | 1,017,922 |
Weighted-Average Exercise Price | ' | ' | ' |
Outstanding at beginning of year (in dollars per share) | $17.01 | $16.23 | $16.09 |
Forfeited (in dollars per share) | $16.10 | $12.07 | $15.67 |
Outstanding at end of period (in dollars per share) | $17.22 | $17.01 | $16.23 |
Exercisable at end of period (in dollars per share) | $17.22 | $17.01 | $16.23 |
Stock_Incentive_Plans_Details_1
Stock Incentive Plans (Details 3) (Stock option awards, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Options Outstanding | ' |
Number (in shares) | 696,379 |
Weighted-Average Exercise Price (in dollars per share) | $17.22 |
Weighted-Average Remaining Contractual Life | '2 years 29 days |
Intrinsic Value (in dollars) | $69 |
Options Exercisable | ' |
Number (in shares) | 696,379 |
Intrinsic Value (in dollars) | 69 |
Unrecognized stock option expense | $0 |
$ 4.49-7.53 | ' |
Range of Exercise Prices | ' |
Low end of the range (in dollars per share) | $4.49 |
High end of the range (in dollars per share) | $7.53 |
Options Outstanding | ' |
Number (in shares) | 105,000 |
Weighted-Average Exercise Price (in dollars per share) | $6.01 |
Weighted-Average Remaining Contractual Life | '6 years |
Options Exercisable | ' |
Number (in shares) | 105,000 |
$ 17.12-19.74 | ' |
Range of Exercise Prices | ' |
Low end of the range (in dollars per share) | $17.12 |
High end of the range (in dollars per share) | $19.74 |
Options Outstanding | ' |
Number (in shares) | 591,379 |
Weighted-Average Exercise Price (in dollars per share) | $19.21 |
Weighted-Average Remaining Contractual Life | '1 year 4 months 17 days |
Options Exercisable | ' |
Number (in shares) | 591,379 |
Stock_Incentive_Plans_Details_2
Stock Incentive Plans (Details 4) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 01, 2013 | Mar. 26, 2013 | Mar. 26, 2013 | Aug. 01, 2013 | Mar. 26, 2013 | Mar. 26, 2013 | Aug. 01, 2013 | Aug. 01, 2013 | Mar. 26, 2013 | Aug. 01, 2013 | Mar. 26, 2013 | Dec. 31, 2013 | Aug. 01, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | Restricted stock units | DSUs | DSUs | DSUs | DSUs | DSUs | ||||
Minimum | Maximum | Members of management | Members of management | Members of management | Members of management | Members of management | Members of management | Members of management | Members of management | Members of management | Members of management | Members of management | Directors | Directors | Directors | Directors | ||||||||
Requisite service period of one year | Requisite service period of two years | Requisite service period of two years | Requisite service period of three years | Requisite service period of five years | Minimum | Minimum | Maximum | Maximum | ||||||||||||||||
Stock Incentive Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock per award | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Requisite service period | ' | ' | ' | ' | ' | ' | '1 year | '5 years | ' | ' | '1 year | '2 years | '2 years | '3 years | '5 years | ' | ' | ' | ' | '1 year | '1 year | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested at beginning of year (in shares) | ' | ' | ' | 736,412 | 455,352 | 194,914 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,991 | 22,771 | ' |
Granted (in shares) | ' | ' | ' | 351,452 | 266,258 | 250,728 | ' | ' | 338,294 | 13,158 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,800 | 28,800 | 31,897 | 22,426 |
Dividend Equivalents Earned (in shares) | ' | ' | ' | 17,211 | 32,704 | 9,710 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,636 | 2,252 | 345 |
Vested (in shares) | ' | ' | ' | -156,795 | -9,925 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -34,373 | -23,929 | ' |
Forfeited (in shares) | ' | ' | ' | -28,352 | -7,977 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested at end of period (in shares) | ' | ' | ' | 919,928 | 736,412 | 455,352 | ' | ' | ' | ' | 4,386 | 14,881 | 4,386 | 4,386 | 323,413 | ' | ' | ' | ' | ' | ' | 29,054 | 32,991 | 22,771 |
Outstanding at end of period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 87,356 | 56,920 | 22,771 |
Weighted-Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested at beginning of year (in dollars per share) | ' | ' | ' | $4.92 | $4.98 | $4.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.77 | $5.23 | ' |
Granted (in dollars per share) | ' | ' | ' | $5.02 | $4.83 | $5.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.04 | $4.77 | $5.23 |
Dividend Equivalents Earned (in dollars per share) | ' | ' | ' | $4.86 | $4.79 | $5.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.03 | $4.76 | $5.22 |
Vested (in dollars per share) | ' | ' | ' | $4.84 | $4.19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.77 | $5.21 | ' |
Forfeited (in dollars per share) | ' | ' | ' | $5.14 | $5.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested at end of period (in dollars per share) | ' | ' | ' | $4.97 | $4.92 | $4.98 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.05 | $4.77 | $5.23 |
Outstanding at end of period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.06 | $4.96 | $5.23 |
Issuance of treasury shares in conjunction with units vested | 111,012 | 6,804 | 3,879 | 111,012 | 6,804 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $5.04 | $4.56 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.04 | ' | ' | ' |
Amount of compensation cost to be recognized | $2,900,000 | ' | ' | ' | ' | ' | ' | ' | $1,705,002 | $60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $145,152 | ' | ' | ' |
Vesting rights of shares granted (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' |
Period over which cost will be recognized | '3 years 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '1 year | '5 years | '3 years | ' | ' | ' | ' | ' |
Compensation expense recognized | $1,100,000 | $1,000,000 | $400,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' |
Transactions_with_Directors_an2
Transactions with Directors and Executive Officers (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Analysis of the changes in loans to related parties | ' |
Balance at beginning of year | $29,714,000 |
New loans/ advances | 24,100,000 |
Repayments | -23,709,000 |
Balance at end of year | 30,105,000 |
Directors and executive officers | ' |
Analysis of the changes in loans to related parties | ' |
Total unused commitments | $7,500,000 |
Commitments_Contingencies_and_2
Commitments, Contingencies and Credit Risk (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | |||
Credit Commitments and Contingencies | ' | ' | ' |
Liabilities for potential obligations under guarantees | $0 | $0 | ' |
Number of futures, forwards, swaps or option contracts, or other financial instruments | 0 | ' | ' |
Lease Commitments | ' | ' | ' |
Rent expense under operating leases | 1,600,000 | 2,500,000 | 3,000,000 |
Projected minimum rental payments under the terms of leases | ' | ' | ' |
2014 | 1,274,000 | ' | ' |
2015 | 711,000 | ' | ' |
2016 | 112,000 | ' | ' |
2017 | 4,000 | ' | ' |
Total | 2,101,000 | ' | ' |
Maximum | ' | ' | ' |
Credit Commitments and Contingencies | ' | ' | ' |
Term for guarantee | '1 year | ' | ' |
Commitments to extend credit | ' | ' | ' |
Credit Commitments and Contingencies | ' | ' | ' |
Financial instruments whose contract amounts represent credit risk: | 527,614,000 | 483,373,000 | ' |
Standby letters of credit | ' | ' | ' |
Credit Commitments and Contingencies | ' | ' | ' |
Financial instruments whose contract amounts represent credit risk: | $10,155,000 | $12,305,000 | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Measurements | ' | ' |
Transfers between levels of fair value hierarchy | $0 | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 841,310 | 1,001,497 |
Impaired loans | 34,060 | 55,593 |
OREO | 2,133 | 3,450 |
U.S. Treasury securities | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 102,640 | 104,656 |
Obligations of U.S. government corporations and agencies | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 257,411 | 370,194 |
Obligations of states and political subdivisions | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 272,152 | 280,288 |
Residential mortgage-backed securities | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 177,735 | 217,715 |
Corporate debt securities | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 25,506 | 24,714 |
Mutual funds and other equity securities | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 5,866 | 3,930 |
Recurring basis | Level 1 Inputs | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 5,866 | 28,644 |
Recurring basis | Level 1 Inputs | Corporate debt securities | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | ' | 24,714 |
Recurring basis | Level 1 Inputs | Mutual funds and other equity securities | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 5,866 | 3,930 |
Recurring basis | Level 2 Inputs | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 835,444 | 972,853 |
Recurring basis | Level 2 Inputs | U.S. Treasury securities | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 102,640 | 104,656 |
Recurring basis | Level 2 Inputs | Obligations of U.S. government corporations and agencies | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 257,411 | 370,194 |
Recurring basis | Level 2 Inputs | Obligations of states and political subdivisions | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 272,152 | 280,288 |
Recurring basis | Level 2 Inputs | Residential mortgage-backed securities | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 177,735 | 217,715 |
Recurring basis | Level 2 Inputs | Corporate debt securities | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 25,506 | ' |
Recurring basis | Total Fair Value | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 841,310 | 1,001,497 |
Recurring basis | Total Fair Value | U.S. Treasury securities | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 102,640 | 104,656 |
Recurring basis | Total Fair Value | Obligations of U.S. government corporations and agencies | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 257,411 | 370,194 |
Recurring basis | Total Fair Value | Obligations of states and political subdivisions | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 272,152 | 280,288 |
Recurring basis | Total Fair Value | Residential mortgage-backed securities | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 177,735 | 217,715 |
Recurring basis | Total Fair Value | Corporate debt securities | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 25,506 | 24,714 |
Recurring basis | Total Fair Value | Mutual funds and other equity securities | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Available for sale | 5,866 | 3,930 |
Non-recurring basis | Level 3 Inputs | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Impaired loans | 5,491 | 2,284 |
OREO | 1,134 | 511 |
Non-recurring basis | Total Fair Value | ' | ' |
Financial assets and financial liabilities measured at fair value | ' | ' |
Impaired loans | 5,491 | 2,284 |
OREO | $1,134 | $511 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Quantitative Information about Level 3 Fair Value Measurements | ' | ' |
Impaired loans | 34,060 | 55,593 |
OREO | 2,133 | 3,450 |
Non-recurring basis | Level 3 | ' | ' |
Quantitative Information about Level 3 Fair Value Measurements | ' | ' |
Impaired loans | 5,491 | 2,284 |
OREO | 1,134 | 511 |
Non-recurring basis | Level 3 | Appraisal of collateral | Impaired loans | ' | ' |
Quantitative Information about Level 3 Fair Value Measurements | ' | ' |
Impaired loans | 5,491 | 2,284 |
Non-recurring basis | Level 3 | Appraisal of collateral | Impaired loans | Minimum | ' | ' |
Quantitative Information about Level 3 Fair Value Measurements | ' | ' |
Appraisal adjustments (as a percent) | -0.40% | -12.00% |
Non-recurring basis | Level 3 | Appraisal of collateral | Impaired loans | Maximum | ' | ' |
Quantitative Information about Level 3 Fair Value Measurements | ' | ' |
Appraisal adjustments (as a percent) | -100.00% | -100.00% |
Non-recurring basis | Level 3 | Appraisal of collateral | Impaired loans | Weighted Average | ' | ' |
Quantitative Information about Level 3 Fair Value Measurements | ' | ' |
Appraisal adjustments (as a percent) | -36.00% | -34.20% |
Non-recurring basis | Level 3 | Appraisal of collateral | OREO | ' | ' |
Quantitative Information about Level 3 Fair Value Measurements | ' | ' |
OREO | 1,134 | 511 |
Non-recurring basis | Level 3 | Appraisal of collateral | OREO | Minimum | ' | ' |
Quantitative Information about Level 3 Fair Value Measurements | ' | ' |
Appraisal adjustments (as a percent) | -6.60% | -51.70% |
Non-recurring basis | Level 3 | Appraisal of collateral | OREO | Maximum | ' | ' |
Quantitative Information about Level 3 Fair Value Measurements | ' | ' |
Appraisal adjustments (as a percent) | -100.00% | -61.30% |
Non-recurring basis | Level 3 | Appraisal of collateral | OREO | Weighted Average | ' | ' |
Quantitative Information about Level 3 Fair Value Measurements | ' | ' |
Appraisal adjustments (as a percent) | -47.90% | -53.40% |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets: | ' | ' |
Cash and due from banks | $231,603 | $351,255 |
Loans, net | 2,233,893 | 1,985,095 |
Financial liabilities: | ' | ' |
Junior subordinated debt owed to unconsolidated trusts | 55,000 | 55,000 |
Carrying Amount | Level 2 Inputs | ' | ' |
Financial assets: | ' | ' |
Cash and due from banks | 231,603 | 351,255 |
Loans held for sale | 13,840 | 40,003 |
Accrued interest receivable | 11,148 | 12,275 |
Financial liabilities: | ' | ' |
Deposits | 2,869,138 | 2,980,292 |
Securities sold under agreements to repurchase | 172,348 | 139,024 |
Long-term debt | ' | 7,000 |
Junior subordinated debt owed to unconsolidated trusts | 55,000 | 55,000 |
Accrued interest payable | 673 | 1,128 |
Carrying Amount | Level 3 Inputs | ' | ' |
Financial assets: | ' | ' |
Loans, net | 2,233,893 | 1,985,095 |
Fair Value | Level 2 Inputs | ' | ' |
Financial assets: | ' | ' |
Cash and due from banks | 231,603 | 351,255 |
Loans held for sale | 14,103 | 40,971 |
Accrued interest receivable | 11,148 | 12,275 |
Financial liabilities: | ' | ' |
Deposits | 2,870,870 | 2,987,524 |
Securities sold under agreements to repurchase | 172,348 | 139,024 |
Long-term debt | ' | 7,120 |
Junior subordinated debt owed to unconsolidated trusts | 55,000 | 55,000 |
Accrued interest payable | 673 | 1,128 |
Fair Value | Level 3 Inputs | ' | ' |
Financial assets: | ' | ' |
Loans, net | $2,236,841 | $2,006,588 |
Reportable_Segments_and_Relate2
Reportable Segments and Related Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | |||||||||||
Reportable Segments and Related Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Reportable Segments and Related Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | $20,686 | ' | ' | ' | $20,686 | ' | ' | ' | $20,686 | $20,686 | ' |
Total Assets | 3,539,575 | ' | ' | ' | 3,618,056 | ' | ' | ' | 3,539,575 | 3,618,056 | ' |
Interest Income: | 26,885 | 27,236 | 27,460 | 27,115 | 28,584 | 29,011 | 29,225 | 30,096 | 108,696 | 116,916 | 132,819 |
Interest Expense: | 1,881 | 2,003 | 2,215 | 2,532 | 2,955 | 3,466 | 3,951 | 4,398 | 8,631 | 14,770 | 22,426 |
Other Income: | 14,529 | 15,630 | 15,783 | 16,641 | 17,613 | 15,589 | 15,770 | 17,880 | 62,583 | 66,852 | 59,015 |
Net Income: | 6,920 | 7,933 | 7,440 | 6,433 | 4,917 | 4,909 | 4,888 | 7,643 | 28,726 | 22,357 | 29,873 |
FirsTech | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reportable Segments and Related Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 8,992 | ' | ' | ' | 8,992 | ' | ' | ' | 8,992 | 8,992 | ' |
Busey Wealth Management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reportable Segments and Related Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 11,694 | ' | ' | ' | 11,694 | ' | ' | ' | 11,694 | 11,694 | ' |
Operating segments | Busey Bank | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reportable Segments and Related Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Assets | 3,456,555 | ' | ' | ' | 3,567,637 | ' | ' | ' | 3,456,555 | 3,567,637 | ' |
Interest Income: | ' | ' | ' | ' | ' | ' | ' | ' | 108,413 | 116,608 | 132,501 |
Interest Expense: | ' | ' | ' | ' | ' | ' | ' | ' | 7,448 | 13,466 | 20,514 |
Other Income: | ' | ' | ' | ' | ' | ' | ' | ' | 36,774 | 39,908 | 35,940 |
Net Income: | ' | ' | ' | ' | ' | ' | ' | ' | 25,416 | 19,162 | 28,504 |
Operating segments | FirsTech | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reportable Segments and Related Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 8,992 | ' | ' | ' | 8,992 | ' | ' | ' | 8,992 | 8,992 | ' |
Total Assets | 27,253 | ' | ' | ' | 26,401 | ' | ' | ' | 27,253 | 26,401 | ' |
Interest Income: | ' | ' | ' | ' | ' | ' | ' | ' | 51 | 62 | 66 |
Other Income: | ' | ' | ' | ' | ' | ' | ' | ' | 8,541 | 8,522 | 9,287 |
Net Income: | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | 935 | 1,437 |
Operating segments | Busey Wealth Management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reportable Segments and Related Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 11,694 | ' | ' | ' | 11,694 | ' | ' | ' | 11,694 | 11,694 | ' |
Total Assets | 28,548 | ' | ' | ' | 26,653 | ' | ' | ' | 28,548 | 26,653 | ' |
Interest Income: | ' | ' | ' | ' | ' | ' | ' | ' | 242 | 251 | 255 |
Other Income: | ' | ' | ' | ' | ' | ' | ' | ' | 17,799 | 16,345 | 14,841 |
Net Income: | ' | ' | ' | ' | ' | ' | ' | ' | 4,242 | 3,363 | 3,095 |
Operating segments | All Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reportable Segments and Related Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Assets | 27,219 | ' | ' | ' | -2,635 | ' | ' | ' | 27,219 | -2,635 | ' |
Interest Income: | ' | ' | ' | ' | ' | ' | ' | ' | -10 | -5 | -3 |
Interest Expense: | ' | ' | ' | ' | ' | ' | ' | ' | 1,183 | 1,304 | 1,912 |
Other Income: | ' | ' | ' | ' | ' | ' | ' | ' | -531 | 2,077 | -1,053 |
Net Income: | ' | ' | ' | ' | ' | ' | ' | ' | ($1,932) | ($1,103) | ($3,163) |
Parent_Company_Only_Financial_2
Parent Company Only Financial Information (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ' | ' |
Cash and due from subsidiary banks | $231,603 | $351,255 | ' | ' |
Securities available for sale | 841,310 | 1,001,497 | ' | ' |
Loans | 2,233,893 | 1,985,095 | ' | ' |
Investments in subsidiaries: | ' | ' | ' | ' |
Premises and equipment, net | 65,827 | 71,067 | ' | ' |
Other assets | 43,562 | 53,442 | ' | ' |
Total assets | 3,539,575 | 3,618,056 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Junior subordinated debentures owed to unconsolidated Trusts | 55,000 | 55,000 | ' | ' |
Other liabilities | 27,725 | 27,943 | ' | ' |
Total liabilities | 3,124,211 | 3,209,259 | ' | ' |
Total stockholders' equity | 415,364 | 408,797 | 409,267 | 420,505 |
Total liabilities and stockholders' equity | 3,539,575 | 3,618,056 | ' | ' |
Parent | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and due from subsidiary banks | 42,645 | 5,152 | ' | ' |
Securities available for sale | 201 | 201 | ' | ' |
Loans | ' | 68 | ' | ' |
Investments in subsidiaries: | ' | ' | ' | ' |
Bank | 400,442 | 432,912 | ' | ' |
Non-bank | 25,646 | 23,605 | ' | ' |
Premises and equipment, net | 521 | 757 | ' | ' |
Other assets | 9,450 | 9,369 | ' | ' |
Total assets | 478,905 | 472,064 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Junior subordinated debentures owed to unconsolidated Trusts | 55,000 | 55,000 | ' | ' |
Other liabilities | 8,541 | 8,267 | ' | ' |
Total liabilities | 63,541 | 63,267 | ' | ' |
Total stockholders' equity | 415,364 | 408,797 | ' | ' |
Total liabilities and stockholders' equity | $478,905 | $472,064 | ' | ' |
Parent_Company_Only_Financial_3
Parent Company Only Financial Information (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Dividends from subsidiaries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income | $14,529 | $15,630 | $15,783 | $16,641 | $17,613 | $15,589 | $15,770 | $17,880 | $62,583 | $66,852 | $59,015 |
Expense: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | 1,881 | 2,003 | 2,215 | 2,532 | 2,955 | 3,466 | 3,951 | 4,398 | 8,631 | 14,770 | 22,426 |
Income tax benefit | -3,528 | -3,572 | -3,787 | -3,224 | -2,556 | -2,331 | -1,877 | -3,733 | -14,111 | -10,497 | -14,970 |
Distributions less than (in excess of) net income (loss) of subsidiaries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 6,920 | 7,933 | 7,440 | 6,433 | 4,917 | 4,909 | 4,888 | 7,643 | 28,726 | 22,357 | 29,873 |
Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends from subsidiaries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-bank | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | 2,500 | 3,750 |
Interest and dividend income | ' | ' | ' | ' | ' | ' | ' | ' | 46 | 49 | 63 |
Other income | ' | ' | ' | ' | ' | ' | ' | ' | 4,669 | 6,231 | 2,424 |
Total operating income | ' | ' | ' | ' | ' | ' | ' | ' | 6,715 | 8,780 | 6,237 |
Expense: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Salaries and employee benefits | ' | ' | ' | ' | ' | ' | ' | ' | 5,139 | 4,718 | 3,620 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,220 | 1,351 | 1,963 |
Operating expense | ' | ' | ' | ' | ' | ' | ' | ' | 2,163 | 2,469 | 2,623 |
Total expense | ' | ' | ' | ' | ' | ' | ' | ' | 8,522 | 8,538 | 8,206 |
(Loss) income before income tax benefit and distributions (in excess of) less than net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -1,807 | 242 | -1,969 |
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | 1,875 | 1,155 | 2,556 |
Income before distributions less than net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 68 | 1,397 | 587 |
Distributions less than (in excess of) net income (loss) of subsidiaries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bank | ' | ' | ' | ' | ' | ' | ' | ' | 26,416 | 20,097 | 29,941 |
Non-bank | ' | ' | ' | ' | ' | ' | ' | ' | 2,242 | 863 | -655 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | $28,726 | $22,357 | $29,873 |
Parent_Company_Only_Financial_4
Parent Company Only Financial Information (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows from Operating Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $6,920 | $7,933 | $7,440 | $6,433 | $4,917 | $4,909 | $4,888 | $7,643 | $28,726 | $22,357 | $29,873 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 8,598 | 8,759 | 9,063 |
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | 1,079 | 991 | 488 |
Fair value adjustment on employee stock ownership plan shares allocated | ' | ' | ' | ' | ' | ' | ' | ' | ' | -322 | -318 |
Changes in assets and liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Increase) decrease in other assets | ' | ' | ' | ' | ' | ' | ' | ' | 9,880 | 8,368 | 7,745 |
Increase (decrease) in other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | -63 | 992 | -4,033 |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 98,153 | 49,069 | 115,878 |
Cash Flows from Investing Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in loans | ' | ' | ' | ' | ' | ' | ' | ' | -258,366 | -33,680 | 233,901 |
Proceeds from sales of premises and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 2,856 | 77 | 1,043 |
Purchases of premises and equipment | ' | ' | ' | ' | ' | ' | ' | ' | -2,549 | -8,611 | -2,748 |
Net cash (used in) provided by investing activities | ' | ' | ' | ' | ' | ' | ' | ' | -118,698 | -204,435 | 13,241 |
Cash Flows from Financing Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of Series T Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -100,000 |
Proceeds from issuance of Series C Preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72,664 |
Shares surrendered upon vesting of restricted stock units to cover tax obligations | ' | ' | ' | ' | ' | ' | ' | ' | -237 | ' | ' |
Cash dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | -14,040 | -24,427 | -18,343 |
Net cash (used in) provided by financing activities | ' | ' | ' | ' | ' | ' | ' | ' | -99,107 | 191,568 | -233,031 |
Cash and due from banks, beginning | ' | ' | ' | 351,255 | ' | ' | ' | 315,053 | 351,255 | 315,053 | 418,965 |
Cash and due from banks, ending | 231,603 | ' | ' | ' | 351,255 | ' | ' | ' | 231,603 | 351,255 | 315,053 |
Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash Flows from Operating Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 28,726 | 22,357 | 29,873 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 100 | 98 | 120 |
Distributions less than net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -28,658 | -20,960 | -29,286 |
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | 1,079 | 991 | 488 |
Fair value adjustment on employee stock ownership plan shares allocated | ' | ' | ' | ' | ' | ' | ' | ' | ' | -322 | -318 |
Changes in assets and liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Increase) decrease in other assets | ' | ' | ' | ' | ' | ' | ' | ' | -62 | 125 | 1,479 |
Increase (decrease) in other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | 381 | 1,435 | -22,630 |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 1,566 | 3,724 | -20,274 |
Cash Flows from Investing Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities purchased under agreements to resell, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,909 |
Decrease in loans | ' | ' | ' | ' | ' | ' | ' | ' | 68 | 95 | 85 |
Proceeds from sales of premises and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 226 | ' | ' |
Purchases of premises and equipment | ' | ' | ' | ' | ' | ' | ' | ' | -90 | -11 | -5 |
Net cash (used in) provided by investing activities | ' | ' | ' | ' | ' | ' | ' | ' | 204 | 84 | 10,989 |
Cash Flows from Financing Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from charter amendment with subsidiary bank | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' |
Repurchase of Series T Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -100,000 |
Proceeds from issuance of Series C Preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72,664 |
Shares surrendered upon vesting of restricted stock units to cover tax obligations | ' | ' | ' | ' | ' | ' | ' | ' | -237 | ' | ' |
Cash dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | -14,040 | -24,427 | -18,343 |
Net cash (used in) provided by financing activities | ' | ' | ' | ' | ' | ' | ' | ' | 35,723 | -24,427 | -45,679 |
Net increase (decrease) in cash and due from subsidiary banks | ' | ' | ' | ' | ' | ' | ' | ' | 37,493 | -20,619 | -54,964 |
Cash and due from banks, beginning | ' | ' | ' | 5,152 | ' | ' | ' | 25,771 | 5,152 | 25,771 | 80,735 |
Cash and due from banks, ending | $42,645 | ' | ' | ' | $5,152 | ' | ' | ' | $42,645 | $5,152 | $25,771 |
Unaudited_Interim_Financial_Da2
Unaudited Interim Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Unaudited Interim Financial Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | $26,885 | $27,236 | $27,460 | $27,115 | $28,584 | $29,011 | $29,225 | $30,096 | $108,696 | $116,916 | $132,819 |
Interest expense | 1,881 | 2,003 | 2,215 | 2,532 | 2,955 | 3,466 | 3,951 | 4,398 | 8,631 | 14,770 | 22,426 |
Net interest income | 25,004 | 25,233 | 25,245 | 24,583 | 25,629 | 25,545 | 25,274 | 25,698 | 100,065 | 102,146 | 110,393 |
Provision for loan losses | 1,500 | 2,000 | 2,000 | 2,000 | 3,500 | 3,500 | 4,500 | 5,000 | 7,500 | 16,500 | 20,000 |
Non-interest income | 14,529 | 15,630 | 15,783 | 16,641 | 17,613 | 15,589 | 15,770 | 17,880 | 62,583 | 66,852 | 59,015 |
Non-interest expense | 27,585 | 27,358 | 27,801 | 29,567 | 32,269 | 30,394 | 29,779 | 27,202 | 112,311 | 119,644 | 104,565 |
Income before income taxes | 10,448 | 11,505 | 11,227 | 9,657 | 7,473 | 7,240 | 6,765 | 11,376 | 42,837 | 32,854 | 44,843 |
Income taxes | 3,528 | 3,572 | 3,787 | 3,224 | 2,556 | 2,331 | 1,877 | 3,733 | 14,111 | 10,497 | 14,970 |
Net income | 6,920 | 7,933 | 7,440 | 6,433 | 4,917 | 4,909 | 4,888 | 7,643 | 28,726 | 22,357 | 29,873 |
Preferred stock dividends | 908 | 909 | 908 | 908 | 908 | 909 | 908 | 908 | 3,633 | 3,633 | 5,342 |
Net income available for common stockholders | $6,012 | $7,024 | $6,532 | $5,525 | $4,009 | $4,000 | $3,980 | $6,735 | $25,093 | $18,724 | $24,531 |
Basic earnings per share (in dollars per share) | $0.07 | $0.08 | $0.08 | $0.06 | $0.05 | $0.05 | $0.05 | $0.08 | $0.29 | $0.22 | $0.29 |
Diluted earnings per share (in dollars per share) | $0.07 | $0.08 | $0.08 | $0.06 | $0.05 | $0.05 | $0.05 | $0.08 | $0.29 | $0.22 | $0.29 |