Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 10, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HBNC | ||
Entity Registrant Name | HORIZON BANCORP /IN/ | ||
Entity Central Index Key | 706129 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 9,213,036 | ||
Entity Public Float | $185 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $43,476 | $31,721 |
Investment securities, available for sale | 323,764 | 508,591 |
Investment securities, held to maturity (fair value of $169,904 and $9,910) | 165,767 | 9,910 |
Loans held for sale | 6,143 | 3,281 |
Loans, net of allowance for loan losses of $16,501 and $15,992 | 1,362,053 | 1,052,836 |
Premises and equipment, net | 52,461 | 46,194 |
Federal Reserve and Federal Home Loan Bank stock | 11,348 | 14,184 |
Goodwill | 28,176 | 19,748 |
Other intangible assets | 3,965 | 3,288 |
Interest receivable | 8,246 | 7,501 |
Cash value life insurance | 39,382 | 36,190 |
Other assets | 32,141 | 24,832 |
Total assets | 2,076,922 | 1,758,276 |
Liabilities | ||
Non-interest bearing | 267,667 | 231,096 |
Interest bearing | 1,214,652 | 1,060,424 |
Total deposits | 1,482,319 | 1,291,520 |
Borrowings | 351,198 | 256,296 |
Subordinated debentures | 32,642 | 32,486 |
Interest payable | 497 | 506 |
Other liabilities | 15,852 | 12,948 |
Total liabilities | 1,882,508 | 1,593,756 |
Commitments and contingent liabilities | ||
Stockholders' Equity | ||
Common stock, no par value Authorized, 22,500,000 shares Issued, 9,278,916 and 8,706,971 shares Outstanding, 9,213,036 and 8,630,966 shares | 0 | 0 |
Additional paid-in capital | 45,916 | 32,496 |
Retained earnings | 134,477 | 121,253 |
Accumulated other comprehensive income (loss) | 1,521 | -1,729 |
Total stockholders' equity | 194,414 | 164,520 |
Total liabilities and stockholders' equity | 2,076,922 | 1,758,276 |
Series B Preferred Stock [Member] | ||
Stockholders' Equity | ||
Preferred stock, Authorized, 1,000,000 shares Series B shares $.01 par value, $1,000 liquidation value Issued 12,500 shares | $12,500 | $12,500 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Investment securities, held to maturity fair value | $169,904 | $9,910 |
Allowance for loan losses | $16,501 | $15,992 |
Common stock, par value | ||
Common stock, shares authorized | 22,500,000 | 22,500,000 |
Common stock, shares issued | 9,278,916 | 8,706,971 |
Common stock, shares outstanding | 9,213,036 | 8,630,966 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, liquidation value | $1,000 | $1,000 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 12,500 | 12,500 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Income | |||
Loans receivable | $62,435 | $62,229 | $59,727 |
Investment securities | |||
Taxable | 9,344 | 8,441 | 8,833 |
Tax exempt | 4,426 | 4,216 | 3,968 |
Total interest income | 76,205 | 74,886 | 72,528 |
Interest Expense | |||
Deposits | 5,257 | 5,672 | 6,206 |
Borrowed funds | 5,956 | 5,821 | 6,166 |
Subordinated debentures | 2,009 | 2,010 | 1,950 |
Total interest expense | 13,222 | 13,503 | 14,322 |
Net Interest Income | 62,983 | 61,383 | 58,206 |
Provision for loan losses | 3,058 | 1,920 | 3,524 |
Net Interest Income after Provision for Loan Losses | 59,925 | 59,463 | 54,682 |
Non-interest Income | |||
Service charges on deposit accounts | 4,085 | 3,989 | 3,470 |
Wire transfer fees | 557 | 697 | 892 |
Interchange fees | 4,649 | 4,056 | 3,122 |
Fiduciary activities | 4,738 | 4,337 | 3,997 |
Gain on sale of investment securities (includes $988, $374 and $2 for the years ended December 31, 2014, 2013 and 2012 related to accumulated other comprehensive earnings reclassifications) | 988 | 374 | 2 |
Gain on sale of mortgage loans | 8,395 | 8,794 | 14,123 |
Mortgage servicing income net of impairment | 805 | 1,521 | 234 |
Increase in cash value of bank owned life insurance | 1,047 | 1,035 | 1,025 |
Other income | 1,013 | 1,103 | 466 |
Total non-interest income | 26,277 | 25,906 | 27,331 |
Non-interest Expense | |||
Salaries and employee benefits | 32,682 | 31,032 | 28,383 |
Net occupancy expenses | 5,607 | 4,984 | 4,529 |
Data processing | 3,663 | 3,045 | 2,717 |
Professional fees | 1,731 | 1,668 | 1,990 |
Outside services and consultants | 3,250 | 2,412 | 2,313 |
Loan expense | 4,770 | 4,668 | 4,276 |
FDIC insurance expense | 1,175 | 1,089 | 1,108 |
Other losses | -70 | 807 | 619 |
Other expense | 9,138 | 8,740 | 8,089 |
Total non-interest expense | 61,946 | 58,445 | 54,024 |
Income Before Income Tax | 24,256 | 26,924 | 27,989 |
Income tax expense (includes $346, $131 and $0 for the years ended December 31, 2014, 2013 and 2012 related to income tax expense from reclassification items) | 6,155 | 7,048 | 8,446 |
Net Income | 18,101 | 19,876 | 19,543 |
Preferred stock dividend | -133 | -370 | -481 |
Net Income Available to Common Shareholders | $17,968 | $19,506 | $19,062 |
Basic Earnings Per Share | $1.98 | $2.26 | $2.39 |
Diluted Earnings Per Share | $1.90 | $2.17 | $2.30 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Accumulated other comprehensive earnings reclassifications | $988 | $374 | $2 |
Income tax expense from reclassification | $346 | $131 | $0 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $18,101 | $19,876 | $19,543 | |
Change in fair value of derivative instruments: | ||||
Change in fair value of derivative instruments for the period | -511 | 2,668 | -579 | |
Income tax effect | 179 | -934 | 203 | |
Changes from derivative instruments | -332 | 1,734 | -376 | |
Change in securities available-for-sale: | ||||
Unrealized appreciation (depreciation) for the period on available-for-sale securities | 4,841 | -18,956 | 2,517 | |
Unrealized appreciation for the period on held-to-maturity | 1,658 | [1] | ||
Reclassification adjustment for securities gains realized in income | -988 | -374 | -2 | |
Income tax effect | -1,929 | 6,766 | -880 | |
Unrealized gains (losses) on available-for-sale securities | 3,582 | -12,564 | 1,635 | |
Other Comprehensive Income (Loss), Net of Tax | 3,250 | -10,830 | 1,259 | |
Comprehensive Income | $21,351 | $9,046 | $20,802 | |
[1] | The amortization of the unrealized holding gains in accumulated other comprehensive income at the date of the transfer partially offsets the accretion of the difference between the par value and the fair value of the investment securities at the date of the transfer. |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands | |||||
Beginning Balances at Dec. 31, 2011 | $121,465 | $12,500 | $11,736 | $89,387 | $7,842 |
Net income | 19,543 | 19,543 | |||
Other comprehensive income, net of tax | 1,259 | 1,259 | |||
Amortization of unearned compensation | 187 | 187 | |||
Issuance of restricted shares | 115 | 115 | |||
Exercise of stock options | 226 | 226 | |||
Stock option expense | 33 | 33 | |||
Stock issued from acquisition | 19,668 | 19,668 | |||
Cash dividends on preferred stock | -481 | -481 | |||
Cash dividends on common stock | -3,047 | -3,047 | |||
Ending Balances at Dec. 31, 2012 | 158,968 | 12,500 | 31,965 | 105,402 | 9,101 |
Net income | 19,876 | 19,876 | |||
Other comprehensive income, net of tax | -10,830 | -10,830 | |||
Amortization of unearned compensation | 288 | 288 | |||
Exercise of stock options | 195 | 195 | |||
Stock option expense | 48 | 48 | |||
Cash dividends on preferred stock | -370 | -370 | |||
Cash dividends on common stock | -3,655 | -3,655 | |||
Ending Balances at Dec. 31, 2013 | 164,520 | 12,500 | 32,496 | 121,253 | -1,729 |
Net income | 18,101 | 18,101 | |||
Other comprehensive income, net of tax | 3,250 | 3,250 | |||
Amortization of unearned compensation | 363 | 363 | |||
Exercise of stock options | 165 | 165 | |||
Stock option expense | 203 | 203 | |||
Stock issued from acquisition | 12,689 | 12,689 | |||
Cash dividends on preferred stock | -133 | -133 | |||
Cash dividends on common stock | -4,744 | -4,744 | |||
Ending Balances at Dec. 31, 2014 | $194,414 | $12,500 | $45,916 | $134,477 | $1,521 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash dividends on preferred stock, rate | 1.06% | 2.96% | 3.85% |
Cash dividends on common stock, per share | $0.51 | $0.42 | $0.38 |
Retained Earnings [Member] | |||
Cash dividends on preferred stock, rate | 1.06% | 2.96% | 3.85% |
Cash dividends on common stock, per share | $0.51 | $0.42 | $0.38 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net income | $18,101 | $19,876 | $19,543 |
Items not requiring (providing) cash | |||
Provision for loan losses | 3,058 | 1,920 | 3,524 |
Depreciation and amortization | 3,779 | 3,356 | 2,875 |
Share based compensation | 203 | 48 | 33 |
Issuance of restricted stock | 115 | ||
Mortgage servicing rights (recovery) impairment | -51 | -635 | 168 |
Premium amortization on securities available for sale, net | 2,299 | 2,861 | 3,344 |
Gain on sale of investment securities | -988 | -374 | -2 |
Gain on sale of mortgage loans | -8,395 | -8,794 | -14,123 |
Proceeds from sales of loans | 234,776 | 365,654 | 401,068 |
Loans originated for sale | -229,243 | -346,397 | -386,945 |
Change in cash value of life insurance | -1,007 | -998 | -990 |
Gain on sale of other real estate owned | -186 | -116 | 129 |
Net change in | |||
Interest receivable | -398 | 215 | -225 |
Interest payable | -50 | -54 | -126 |
Other assets | -4,945 | 9,905 | 1,030 |
Other liabilities | 712 | 498 | -3,072 |
Net cash provided by operating activities | 17,665 | 46,965 | 26,346 |
Investing Activities | |||
Purchases of securities available for sale | -93,375 | -168,886 | -113,945 |
Proceeds from sales, maturities, calls, and principal repayments of securities available for sale | 117,533 | 121,309 | 125,071 |
Purchases of securities held to maturity | -4,839 | -12,050 | |
Proceeds from maturities of securities held to maturity | 13,851 | 2,110 | 7,100 |
Purchase of Federal Reserve Bank stock | -851 | ||
Proceeds from the sale of FHLB stock | 4,972 | ||
Net change in loans | -190,838 | 112,140 | -102,580 |
Proceeds on the sale of OREO and repossessed assets | 2,726 | 2,343 | 4,672 |
Purchases of premises and equipment | -6,255 | -6,318 | -6,984 |
Purchase of Mortgage Company | -735 | ||
Net cash provided by (used in) by investing activities | -149,046 | 49,797 | -60,383 |
Net change in | |||
Deposits | 69,780 | -2,633 | 73,042 |
Borrowings | 78,068 | -89,313 | -25,415 |
Proceeds from issuance of stock | 165 | 195 | 226 |
Dividends paid on common shares | -4,744 | -3,655 | -3,047 |
Dividends paid on preferred shares | -133 | -370 | -481 |
Net cash provided by (used in) financing activities | 143,136 | -95,776 | 44,325 |
Net Change in Cash and Cash Equivalents | 11,755 | 986 | 10,288 |
Cash and Cash Equivalents, Beginning of Period | 31,721 | 30,735 | 20,447 |
Cash and Cash Equivalents, End of Period | 43,476 | 31,721 | 30,735 |
Additional Supplemental Information | |||
Interest paid | 13,230 | 13,556 | 14,358 |
Income taxes paid | 2,800 | 3,100 | 8,125 |
Transfer of loans to other real estate owned | 3,905 | 3,284 | 5,899 |
Transfer of available-for -sale securities to held-to-maturity | 167,047 | ||
The Company purchased all of the capital stock of Summit for $18,896. In conjunction with the acquisition, liabilities were assumed as follows: | |||
Fair value of assets acquired | 158,585 | ||
Cash paid to retire Summit debt | 6,207 | ||
Cash paid for the capital stock | 1,029 | ||
Liabilities assumed | 138,660 | ||
Summit [Member] | |||
Investing Activities | |||
Acquisition of businesses | 7,914 | ||
Heartland [Member] | |||
Investing Activities | |||
Acquisition of businesses | $26,283 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Statement of Cash Flows [Abstract] | |
Capital stock purchased | $18,896 |
Nature_of_Operations_and_Summa
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Nature of Operations and Summary of Significant Accounting Policies | Note 1 - Nature of Operations and Summary of Significant Accounting Policies | ||||||||||||
Nature of Business — The consolidated financial statements of Horizon Bancorp (“Horizon”) and its wholly owned subsidiaries, Horizon Bank, N.A. (“Bank”) and Horizon Risk Management, Inc., together referred to as “Horizon”, conform to accounting principles generally accepted in the United States of America and reporting practices followed by the banking industry. Horizon Risk Management, Inc. is a captive insurance company incorporated in Nevada and was formed as a wholly owned subsidiary of Horizon. | |||||||||||||
The Bank is a full-service commercial bank offering a broad range of commercial and retail banking and other services incident to banking along with a trust department that offers corporate and individual trust and agency services and investment management services. The Bank maintains 31 full service offices. The Bank has wholly owned direct and indirect subsidiaries: Horizon Investments, Inc. (“Horizon Investments”), Horizon Properties, Inc. (“Horizon Properties”), Horizon Insurance Services, Inc. (“Horizon Insurance”) and Horizon Grantor Trust. Horizon Investments manages the investment portfolio of the Bank. Horizon Properties manages the real estate investment trust. Horizon Insurance is used by the Company’s Wealth Management to sell certain insurance products. Horizon Grantor Trust holds title to certain company owned life insurance policies. Horizon conducts no business except that incident to its ownership of the subsidiaries. | |||||||||||||
Horizon formed Horizon Bancorp Capital Trust II in 2004 (“Trust II”) and Horizon Bancorp Capital Trust III in 2006 (“Trust III”) for the purpose of participating in pooled trust preferred securities offerings. The Company assumed additional debentures as the result of the following acquisitions: Alliance Financial Corporation in 2005, which formed Alliance Financial Statutory Trust I (“Alliance Trust”); American Trust & Savings Bank in 2010, which formed Am Tru Statutory Trust I (“Am Tru Trust”); and Heartland Bancshares, Inc. in 2013, which formed Heartland (IN) Statutory Trust II (“Heartland Trust”). See Note 14 of the Consolidated Financial Statements for further discussion regarding these previously consolidated entities that are now reported separately. The business of Horizon is not seasonal to any material degree. | |||||||||||||
Basis of Reporting — The consolidated financial statements include the accounts of Horizon and subsidiaries. All material inter-company accounts and transactions have been eliminated in consolidation. | |||||||||||||
Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of other real estate owned, goodwill and intangible assets, mortgage servicing rights, other-than-temporary impairments and fair values of financial instruments. | |||||||||||||
Fair Value Measurements — Horizon uses fair value measurements to record fair value adjustments, to certain assets, and liabilities and to determine fair value disclosures. Horizon has adopted Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures for all applicable financial and nonfinancial assets and liabilities. This accounting guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. This guidance applies only when other guidance requires or permits assets or liabilities to be measured at fair value; it does not expand the use of fair value in any new circumstances. | |||||||||||||
As defined in codification, fair value is the price to sell an asset or transfer a liability in an orderly transaction between market participants. It represents an exit price at the measurement date. Market participants are buyers and sellers, who are independent, knowledgeable, and willing and able to transact in the principal (or most advantageous) market for the asset or liability being measured. Current market conditions, including imbalances between supply and demand, are considered in determining fair value. Horizon values its assets and liabilities in the principal market where it sells the particular asset or | |||||||||||||
transfers the liability with the greatest volume and level of activity. In the absence of a principal market, the valuation is based on the most advantageous market for the asset or liability (i.e., the market where the asset could be sold or the liability transferred at a price that maximizes the amount to be received for the asset or minimizes the amount to be paid to transfer the liability). | |||||||||||||
In measuring the fair value of an asset, Horizon assumes the highest and best use of the asset by a market participant to maximize the value of the asset, and does not consider the intended use of the asset. | |||||||||||||
When measuring the fair value of a liability, Horizon assumes that the nonperformance risk associated with the liability is the same before and after the transfer. Nonperformance risk is the risk that an obligation will not be satisfied and encompasses not only Horizon’s own credit risk (i.e., the risk that Horizon will fail to meet its obligation), but also other risks such as settlement risk. Horizon considers the effect of its own credit risk on the fair value for any period in which fair value is measured. | |||||||||||||
There are three acceptable valuation techniques that can be used to measure fair value: the market approach, the income approach and the cost approach. Selection of the appropriate technique for valuing a particular asset or liability takes into consideration the exit market, the nature of the asset or liability being valued, and how a market participant would value the same asset or liability. Ultimately, determination of the appropriate valuation method requires significant judgment, and sufficient knowledge and expertise are required to apply the valuation techniques. | |||||||||||||
Valuation inputs refer to the assumptions market participants would use in pricing a given asset or liability using one of the three valuation techniques. Inputs can be observable or unobservable. Observable inputs are those assumptions which market participants would use in pricing the particular asset or liability. These inputs are based on market data and are obtained from a source independent of Horizon. Unobservable inputs are assumptions based on Horizon’s own information or estimate of assumptions used by market participants in pricing the asset or liability. Unobservable inputs are based on the best and most current information available on the measurement date. All inputs, whether observable or unobservable, are ranked in accordance with a prescribed fair value hierarchy which gives the highest ranking to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest ranking to unobservable inputs (Level 3). Fair values for assets or liabilities classified as Level 2 are based on one or a combination of the following factors: (i) quoted prices for similar assets; (ii) observable inputs for the asset or liability, such as interest rates or yield curves; or (iii) inputs derived principally from or corroborated by observable market data. The level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company considers an input to be significant if it drives 10% or more of the total fair value of a particular asset or liability. | |||||||||||||
Assets and liabilities are considered to be fair valued on a recurring basis if fair value is measured regularly (i.e., daily, weekly, monthly or quarterly). Recurring valuation occurs at a minimum on the measurement date. Assets and liabilities are considered to be fair valued on a nonrecurring basis if the fair value measurement of the instrument does not necessarily result in a change in the amount recorded on the balance sheet. Generally, nonrecurring valuation is the result of the application of other accounting pronouncements which require assets or liabilities to be assessed for impairment or recorded at the lower of cost or fair value. The fair value of assets or liabilities transferred in or out of Level 3 is measured on the transfer date, with any additional changes in fair value subsequent to the transfer considered to be realized or unrealized gains or losses. | |||||||||||||
Investment Securities Available for Sale — Horizon designates the majority of its investment portfolio as available for sale based on management’s plans to use such securities for asset and liability management, liquidity and not to hold such securities as long-term investments. Management repositions the portfolio to take advantage of future expected interest rate trends when Horizon’s long-term profitability can be enhanced. Investment securities available for sale and marketable equity securities are carried at estimated fair value and any net unrealized gains/losses (after tax) on these securities are included in accumulated other comprehensive income. Amortization of premiums and accretion of discounts are recorded as interest income from securities. Gains/losses on the disposition of securities available for sale are recognized at the time of the transaction and are determined by the specific identification method. | |||||||||||||
Investment Securities Held to Maturity — Includes any security for which Horizon has the positive intent and ability to hold until maturity. These securities are carried at amortized cost. | |||||||||||||
Loans Held for Sale — Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan. | |||||||||||||
Interest and Fees on Loans — Interest on commercial, mortgage and installment loans is recognized over the term of the loans based on the principal amount outstanding. When principal or interest is past due 90 days or more, and the loan is not well secured or in the process of collection, or when serious doubt exists as to the collectability of a loan, the accrual of interest is discontinued. Loan origination fees, net of direct loan origination costs, are deferred and recognized over the life of the loan as a yield adjustment. Discounts and premiums on purchased loans are amortized to income using the interest method over the remaining period to contractual maturity, adjusted for anticipated prepayments. | |||||||||||||
Concentrations of Credit Risk — The Bank grants commercial, real estate, and consumer loans to customers located primarily in Northwest and Central Indiana and Southwest and Central Michigan and provides mortgage warehouse lines to mortgage companies in the United States. Commercial loans make up approximately 50% of the loan portfolio and are secured by both real estate and business assets. These loans are expected to be repaid from cash flows from operations of the businesses. The Bank does not have a concentration in speculative commercial real estate loans. Residential real estate loans make up approximately 18% of the loan portfolio and are secured by residential real estate. Installment loans make up approximately 23% of the loan portfolio and are primarily secured by consumer assets. Mortgage warehouse loans make up approximately 9% of the loan portfolio and are secured by residential real estate. | |||||||||||||
Mortgage Warehouse Loans — Horizon’s mortgage warehousing has specific mortgage companies as customers of the Bank. Individual mortgage loans originated by these mortgage companies are funded as a secured borrowing with pledge of collateral under Horizon’s agreement with the mortgage company. Each individual mortgage is assigned to Horizon until the loan is sold to the secondary market by the mortgage company. In addition, Horizon takes possession of each original note and forwards such note to the end investor once the mortgage company has sold the loan. At the time a loan is transferred to the secondary market, the mortgage company repurchases the loan under its option within the agreement. | |||||||||||||
Due to the repurchase feature contained in the agreement, the transaction does not qualify as a sale under ASC 860, Transfers and Servicing and therefore is accounted for as a secured borrowing with pledge of collateral pursuant to the agreement with the mortgage company. When the individual loan is sold to the end investor by the mortgage company, the proceeds from the sale of the loan are received by Horizon and used to pay off the loan balance with Horizon along with any accrued interest and any related fees. The remaining balance from the sale is forwarded to the mortgage company. These individual loans typically are sold by the mortgage company within 30 days and are seldom held more than 90 days. Interest income is accrued during this period and collected at the time each loan is sold. Fee income for each loan sold is collected when the loan is sold and no costs are deferred due to the term between each loan funding and related payoff, which is typically less than 30 days. | |||||||||||||
Based on the agreements with each mortgage company, at any time a mortgage company can repurchase from Horizon its outstanding loan balance on an individual mortgage and regain possession of the original note. Horizon also has the option to request that the mortgage company repurchase an individual mortgage. Should this occur, Horizon would return the original note and reassign the assignment of the mortgage to the mortgage company. Also, in the event that the end investor would not be able to honor the sales commitment and the mortgage company would not be able to repurchase its loan on an individual mortgage, Horizon would be able to exercise its rights under the agreement. | |||||||||||||
Allowance for Loan Losses — An allowance for loan losses is maintained to absorb probable incurred losses inherent in the loan portfolio. The allowance is based on ongoing quarterly assessments of the probable incurred losses inherent in the loan portfolio. The allowance is increased by the provision for credit losses, which is charged against current period operating results and decreased by the amount of charge offs, net of recoveries. Horizon’s methodology for assessing the appropriateness of the allowance consists of several key elements, which include the general allowance, specific allowances for identified problem loans and the qualitative allowance. | |||||||||||||
The general allowance is calculated by applying loss factors to pools of outstanding loans. Loss factors are based on historical loss experience and may be adjusted for significant factors that, in management’s judgment, affect the collectability of the portfolio as of the evaluation date. | |||||||||||||
Specific allowances are established in cases where management has identified conditions or circumstances related to a credit that management believes indicate the probability that a loss will be incurred in excess of the amount determined by the application of the formula allowance. | |||||||||||||
The qualitative allowance is based upon management’s evaluation of various conditions, the effects of which are not directly measured in the determination of the general and specific allowances. The evaluation of the inherent loss with respect to these conditions is subject to a higher degree of uncertainty because they are not identified with specific credits. The conditions evaluated in connection with the qualitative allowance may include factors such as local, regional and national economic conditions and forecasts, concentrations of credit and changes in the composition of the portfolio. | |||||||||||||
Loan Impairment — When analysis determines a borrower’s operating results and financial condition are not adequate to meet debt service requirements, the loan is evaluated for impairment. Often this is associated with a delay or shortfall in payments of 30 days or more. Loans are generally placed on non-accrual status when 90 days or more past due. These loans are also often considered impaired. Impaired loans or portions thereof, are charged-off when deemed uncollectible. This typically occurs when the loan is 90 or more days past due. | |||||||||||||
Loans are considered impaired if the borrower does not exhibit the ability to pay or the full principal or interest payments are not expected or made in accordance with the original terms of the loan. Impaired loans are measured and carried at the lower of cost or the present value of expected future cash flows discounted at the loan’s effective interest rate, at the loan’s observable market price or at the fair value of the collateral if the loan is collateral dependent. | |||||||||||||
Smaller balance homogenous loans are evaluated for impairment in the aggregate. Such loans include residential first mortgage loans secured by one to four family residences, residential construction loans and automobile, home equity and second mortgages. Commercial loans and mortgage loans secured by other properties are evaluated individually for impairment. | |||||||||||||
Loans Acquired in Business Combinations — Loans acquired in business combinations with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of purchase dates may include information such as past-due and nonaccrual status, borrower credit scores and recent loans to value percentages. Acquired credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (FASB ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loans. Accordingly, allowances for credit losses related to these loans are not carried over and recorded at the acquisition dates. Loans acquired through business combinations that do not meet the specific criteria of FASB ASC 310-30, but for which a discount is attributable, at least in part to the credit quality, are also accounted for under this guidance. As a result, related discounts are recognized subsequently through accretion based on the expected cash flows of the acquired loans. For purposes of applying FASB ASC 310-30, loans acquired in business combinations are aggregated into pools of loans with common risk characteristics. | |||||||||||||
The expected cash flows of the acquired loan pools in excess of the fair values recorded is referred to as the accretable yield and is recognized in interest income over the remaining estimated lives of the loan pools. The Company continues to evaluate the fair value of the loans including cash flows expected to be collected. Increases in the Company’s cash flow expectation are recognized as increases to the accretable yield while decreases are recognized as impairments through the allowance for loan losses. | |||||||||||||
Premises and Equipment — Buildings and major improvements are capitalized and depreciated using primarily the straight-line method with useful lives ranging from 3 to 40 years. Furniture and equipment are capitalized and depreciated using primarily the straight-line method with useful lives ranging from 2 to 20 years. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains and losses on disposition are included in current operations. | |||||||||||||
Federal Reserve and Federal Home Loan Bank of Indianapolis (FHLBI) Stock — The stock is a required investment for institutions that are members of the Federal Reserve Bank (“FRB”) and Federal Home Loan Bank (“FHLB”) systems. The required investment in the common stock is based on a predetermined formula. | |||||||||||||
Mortgage Servicing Rights —Mortgage servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance (ASC 860-50), servicing rights resulting from the sale or securitization of loans originated by the Company are initially measured at fair value at the date of transfer. Amortized mortgage servicing rights include commercial mortgage servicing rights. Under the amortization method, servicing rights are amortized in proportion to and over the period of estimated net servicing income. The amortized assets are assessed for impairment or increased obligation based on fair value at each reporting date. | |||||||||||||
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. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change, and may have an adverse impact on the value of the mortgage servicing right and may result in a reduction to noninterest income. | |||||||||||||
Each class of separately recognized servicing assets subsequently measured using the amortization method are evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Changes in valuation allowances are reported with mortgage servicing income net of impairment on the income statement. Fair value in excess of the carrying amount of servicing assets for that stratum is not recognized. | |||||||||||||
Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. | |||||||||||||
Intangible Assets — Goodwill is tested annually for impairment. At December 31, 2014, Horizon had core deposit intangibles of $4.0 million subject to amortization and $28.2 million of goodwill, which is not subject to amortization. Goodwill arising from business combinations represents the value attributable to unidentifiable intangible assets in the business acquired. Horizon’s goodwill relates to the value inherent in the banking industry and that value is dependent upon the ability of Horizon to provide quality, cost effective banking services in a competitive marketplace. The goodwill value is supported by revenue that is in part driven by the volume of business transacted. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Goodwill totaled $28.2 million at December 31, 2014 and $19.7 million at December 31, 2013. A large majority of the goodwill relates to the acquisitions of Heartland and Summit. | |||||||||||||
Income Taxes —The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. | |||||||||||||
Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. | |||||||||||||
The Company recognizes interest and penalties on income taxes as a component of income tax expense. | |||||||||||||
The Company files consolidated income tax returns with its subsidiaries. | |||||||||||||
Trust Assets and Income — Property, other than cash deposits, held in a fiduciary or agency capacity is not included in the consolidated balance sheets since such property is not owned by Horizon. | |||||||||||||
Earnings per Common Share — Basic earnings per share is computed by dividing net income available to common shareholders (net income less dividend requirements for preferred stock and accretion of preferred stock discount) by the weighted-average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The following table shows computation of basic and diluted earnings per share. | |||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic earnings per share | |||||||||||||
Net income | $ | 18,101 | $ | 19,876 | $ | 19,543 | |||||||
Less: Preferred stock dividends | 133 | 370 | 481 | ||||||||||
Net income available to common shareholders | $ | 17,968 | $ | 19,506 | $ | 19,062 | |||||||
Weighted average common shares outstanding | 9,060,702 | 8,619,330 | 7,974,241 | ||||||||||
Basic earnings per share | $ | 1.98 | $ | 2.26 | $ | 2.39 | |||||||
Diluted earnings per share | |||||||||||||
Net income available to common shareholders | $ | 17,968 | $ | 19,506 | $ | 19,062 | |||||||
Weighted average common shares outstanding | 9,060,702 | 8,619,330 | 7,974,241 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Warrants | 315,679 | 303,970 | 245,514 | ||||||||||
Restricted stock | 39,476 | 40,160 | 23,181 | ||||||||||
Stock options | 38,268 | 37,503 | 28,241 | ||||||||||
Weighted average shares outstanding | 9,454,125 | 9,000,963 | 8,271,177 | ||||||||||
Diluted earnings per share | $ | 1.9 | $ | 2.17 | $ | 2.3 | |||||||
At December 31, 2014 and 2013 there were 2,500 and zero shares and at December 31, 2012 there were 8,438 shares that were not included in the computation of diluted earnings per share because they were non-dilutive. | |||||||||||||
Dividend Restrictions — Regulations of the OCC limit the amount of dividends that may be paid by a national bank to its parent holding company without prior approval of the OCC. At December 31, 2014, $24.7 million was available for payment of dividends from the Bank to Horizon. Additionally, the Federal Reserve Board limits the amount of dividends that may be paid by Horizon to its stockholders under its capital adequacy guidelines. | |||||||||||||
Consolidated Statements of Cash Flows — For purposes of reporting cash flows, cash and cash equivalents are defined to include cash and due from banks, money market investments and federal funds sold with maturities of one day or less. Horizon reports net cash flows for customer loan transactions, deposit transactions, short-term investments and borrowings. | |||||||||||||
Comprehensive Income — Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities, unrealized and realized gains and losses in derivative financial instruments and amortization of available-for-sale securities transferred to held-to-maturity. | |||||||||||||
Share-Based Compensation — At December 31, 2014, Horizon has share-based compensation plans, which are described more fully in Note 21. All share-based payments to be recognized as expense, based upon their fair values, in the financial statements over the vesting period of the awards. Horizon has recorded approximately $566,000, $336,000, and $220,000 for 2014, 2013 and 2012, in compensation expense relating to vesting of stock options less estimated forfeitures for the 12-month period ended December 31, 2014, 2013 and 2012. | |||||||||||||
Reclassifications — Certain reclassifications have been made to the 2013 consolidated financial statements to be comparable to 2014. These reclassifications had no effect on net income. | |||||||||||||
Recent Accounting Pronouncements | |||||||||||||
FASB Accounting Standards Update No. 2015-01, Income Statement —Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items | |||||||||||||
The FASB has issued Accounting Standards Update (ASU) No. 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The FASB issued this ASU as part of its initiative to reduce complexity in accounting standards. | |||||||||||||
This ASU eliminates from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement—Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. | |||||||||||||
If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. | |||||||||||||
The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |||||||||||||
FASB ASU No. 2014-17 Business Combinations (Topic 805): Pushdown Accounting | |||||||||||||
The amendments in this Update provide an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. | |||||||||||||
An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. An acquired entity should determine whether to elect to apply pushdown accounting for each individual change-in-control event in which an acquirer obtains control of the acquired entity. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. An election to apply pushdown accounting in a reporting period after the reporting period in which the change-in-control event occurred should be considered a change in accounting principle in accordance with Topic 250, Accounting Changes and Error Corrections. If pushdown accounting is applied to an individual change-in-control event, that election is irrevocable. | |||||||||||||
If an acquired entity elects the option to apply pushdown accounting in its separate financial statements, it should disclose information in the current reporting period that enables users of financial statements to evaluate the effect of pushdown accounting. | |||||||||||||
The amendments in this Update are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. However, if the financial statements for the period in which the most recent change-in-control event occurred already have been issued or made available to be issued, the application of this guidance would be a change in accounting principle. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |||||||||||||
FASB ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 204-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern | |||||||||||||
In August 2014, FASB, issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The amendments in this update are effective for annual reporting periods ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |||||||||||||
FASB ASU 2014-14, Receivables—Troubled Debt Restructuring by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure | |||||||||||||
In August 2014, FASB, issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. The objective of this update is to reduce diversity in practice by addressing the classification of foreclosed mortgage loans that are fully or partially guaranteed under government programs. Currently, some creditors reclassify those loans to real estate as with other foreclosed loans that do not have guarantees; others reclassify the loans to other receivables. The amendments affect creditors that hold government-guaranteed mortgage loans, including those guaranteed by the FHA and the VA. The amendments in this update are effective for annual reporting periods ending after December 15, 2015 and interim periods beginning after December 15, 2015. An entity should adopt the amendments in this update using either a prospective transition method or a modified retrospective transition method. For prospective transition, an entity should apply the amendments in this update to foreclosures that occur after the date of adoption. For the modified retrospective transition, an entity should apply the amendments in the update by means of a cumulative-effect adjustment (through a reclassification to a separate other receivable) as of the beginning of the annual period of adoption. Prior periods should not be adjusted. However, a reporting entity must apply the same method of transition as elected under ASU No. 2014-04. Early adoption, including adoption in an interim period, is permitted if the entity already has adopted update 2014-04. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |||||||||||||
FASB ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period | |||||||||||||
A consensus of the FASB Emerging Issues Task Force. The amendments in this update clarify that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. The ASU is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. In addition, entities will have the option of applying the guidance either prospectively (i.e., only to awards granted or modified on or after the effective date) or retrospectively. Retrospective application would only apply to awards with performance targets outstanding at or after the beginning of the first annual period presented (i.e., the earliest presented comparative period). Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |||||||||||||
FASB ASU 2014-11, Transfers and Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures | |||||||||||||
The amendments in this update require entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), eliminates accounting guidance on linking repurchase financing transactions, and expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers, such as repos, securities lending transactions, and repurchase-to-maturity transactions, accounted for as secured borrowings. The amendments in ASU 2014-11 are effective for annual periods beginning after December 15, 2014. The amendments must present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Early application is prohibited. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |||||||||||||
FASB ASU 2014-09, Revenue from Contracts with Customers | |||||||||||||
The amendments in this update supersede virtually all existing GAAP revenue recognition guidance, including most industry-specific revenue recognition guidance. ASU 2014-09 creates a single, principle-based revenue recognition framework and will require entities to apply significantly more judgment and expanded disclosures surrounding revenue recognition. The core principle requires an entity to recognize revenue in a manner that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 applies to contracts with customers to provide goods and services, with certain exclusions such as lease contracts, financing arrangements, and financial instruments. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted for annual reporting periods beginning after December 15, 2016. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |||||||||||||
Accounting Standards Update (ASU) 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure | |||||||||||||
In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |||||||||||||
ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects | |||||||||||||
In January 2014, the FASB issued ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects, to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The ASU modifies the conditions that an entity must meet to be eligible to use a method other than the equity or cost methods to account for qualified affordable housing project investments. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. |
Acquisition
Acquisition | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Business Combinations [Abstract] | |||||||||||
Acquisition | Note 2 – Acquisition | ||||||||||
On April 3, 2014 Horizon closed its acquisition of SCB Bancorp, Inc. (“Summit”) and Horizon Bank N.A.’s acquisition of Summit Community Bank, through mergers effective as of that date. Under the final terms of the acquisition, the exchange ratio was 0.4904 shares of Horizon’s common stock and $5.15 in cash for each share of Summit common stock outstanding. Summit shares outstanding at the closing were 1,164,442, and the shares of Horizon common stock issued to Summit shareholders totaled 570,820. Horizon’s stock price was $22.23 per share at the close of business on April 3, 2014. Based upon these numbers, the total value of the consideration for the acquisition was $18.9 million (not including the retirement of Summit debt). For the year ended December 31, 2014, the Company had approximately $1.3 million in costs related to the acquisition. These expenses are classified in the other expense section of the income statement and primarily located in the salaries and employee benefits, professional services and other expense line items. As a result of the acquisition, the Company experienced, and expects to continue to experience, increases in its deposit base and reductions in transaction costs. The Company also expects to reduce cost through economies of scale. | |||||||||||
Under the purchase method of accounting, the total estimated purchase price is allocated to Summit’s net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on management’s preliminary valuation of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on estimates and assumptions that are subject to change, the preliminary purchase price for the Summit acquisition is allocated as follows: | |||||||||||
ASSETS | LIABILITIES | ||||||||||
Cash and due from banks | $ | 15,161 | Deposits | ||||||||
Non-interest bearing | $ | 27,274 | |||||||||
Commercial | 70,441 | NOW accounts | 16,332 | ||||||||
Residential mortgage | 43,448 | Savings and money market | 35,045 | ||||||||
Consumer | 10,192 | Certificates of deposits | 42,368 | ||||||||
Total loans | 124,081 | Total deposits | 121,019 | ||||||||
Premises and equipment, net | 2,548 | Borrowings | 16,990 | ||||||||
FRB and FHLB stock | 2,136 | Interest payable | 52 | ||||||||
Goodwill | 8,428 | Other liabilities | 599 | ||||||||
Core deposit intangible | 822 | ||||||||||
Interest receivable | 347 | ||||||||||
Cash value life insurance | 2,185 | ||||||||||
Other assets | 2,877 | ||||||||||
Total assets purchased | $ | 158,585 | Total liabilities assumed | $ | 138,660 | ||||||
Of the total estimated purchase price of $19.9 million, $822,000 has been allocated to core deposit intangible. Additionally, $8.4 million has been allocated to goodwill and $4.4 million of the purchase price is deductible and was assigned to the business assets. The core deposit intangible will be amortized over seven years on a straight line basis. | |||||||||||
The Company acquired loans in the acquisition and the transferred loans had evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. | |||||||||||
Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and non-accrual status, borrower credit scores and recent loan-to-value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using our internal risk models, which incorporate the estimate of current key assumptions, such as default rates, severity and prepayment speeds. | |||||||||||
The Company acquired the $130.5 million loan portfolio at a fair value discount of $6.4 million. The performing portion of the portfolio, $106.2 million, had an estimated fair value of $104.6 million. The excess of expected cash flows above the fair value of the performing portion of loans will be accreted to interest income over the remaining lives of the loans in accordance with ASC 310-20. | |||||||||||
Final estimates of loans for which specific credit-related deterioration has been identified, since origination, are recorded at fair value, reflecting the present value of the amounts expected to be collected. Income recognition of these loans is based on reasonable expectation about the timing and amount of cash flows to be collected. | |||||||||||
The following table details the acquired loans that are accounted for in accordance with ASC 310-30 as of April 3, 2014. | |||||||||||
Contractually required principal and interest at acquisition | $ | 14,460 | |||||||||
Contractual cash flows not expected to be collected (nonaccretable differences) | 3,146 | ||||||||||
Expected cash flows at acquisition | 11,314 | ||||||||||
Interest component of expected cash flows (accretable discount) | 1,688 | ||||||||||
Fair value of acquired loans accounted for under ASC 310-30 | $ | 9,626 | |||||||||
Pro-forma statements were not presented due to the materiality of the transaction. |
Cash_Equivalents
Cash Equivalents | 12 Months Ended |
Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |
Cash Equivalents | Note 3 – Cash Equivalents |
The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2014 and 2013, cash equivalents consisted primarily of money market accounts with brokers and certificates of deposit. | |
At December 31, 2014, the Company’s cash accounts exceeded federally insured limits by approximately $8.6 million. |
Securities
Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Securities | Note 4 – Securities | ||||||||||||||||||||||||
The fair value of securities is as follows: | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | 26,996 | $ | 56 | $ | (229 | ) | $ | 26,823 | ||||||||||||||||
State and municipal | 46,535 | 1,462 | (45 | ) | 47,952 | ||||||||||||||||||||
Federal agency collateralized mortgage obligations | 122,930 | 975 | (1,045 | ) | 122,860 | ||||||||||||||||||||
Federal agency mortgage-backed pools | 122,583 | 3,172 | (360 | ) | 125,395 | ||||||||||||||||||||
Private labeled mortgage-backed pools | 670 | 19 | — | 689 | |||||||||||||||||||||
Corporate notes | 32 | 13 | — | 45 | |||||||||||||||||||||
Total available for sale investment securities | $ | 319,746 | $ | 5,697 | $ | (1,679 | ) | $ | 323,764 | ||||||||||||||||
Held to maturity | |||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | 9,804 | $ | 82 | $ | — | $ | 9,886 | |||||||||||||||||
State and municipal | 129,595 | 3,398 | (106 | ) | 132,887 | ||||||||||||||||||||
Federal agency collateralized mortgage obligations | 4,039 | 35 | (1 | ) | 4,073 | ||||||||||||||||||||
Federal agency mortgage-backed pools | 22,329 | 729 | — | 23,058 | |||||||||||||||||||||
Total held to maturity investment securities | $ | 165,767 | $ | 4,244 | $ | (107 | ) | $ | 169,904 | ||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | 43,808 | $ | 133 | $ | (807 | ) | $ | 43,134 | ||||||||||||||||
State and municipal | 176,670 | 4,405 | (3,177 | ) | 177,898 | ||||||||||||||||||||
Federal agency collateralized mortgage obligations | 116,047 | 1,242 | (2,583 | ) | 114,706 | ||||||||||||||||||||
Federal agency mortgage-backed pools | 170,006 | 3,172 | (2,284 | ) | 170,894 | ||||||||||||||||||||
Private labeled mortgage-backed pools | 1,188 | 38 | — | 1,226 | |||||||||||||||||||||
Corporate notes | 708 | 25 | — | 733 | |||||||||||||||||||||
Total available for sale investment securities | $ | 508,427 | $ | 9,015 | $ | (8,851 | ) | $ | 508,591 | ||||||||||||||||
Held to maturity, State and Municipal | $ | 9,910 | $ | — | $ | — | $ | 9,910 | |||||||||||||||||
Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information, and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. While these securities are held in the available for sale portfolio and held-to-maturity, Horizon intends, and has the ability, to hold them until the earlier of a recovery in fair value or maturity. | |||||||||||||||||||||||||
Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. At December 31, 2014, no individual investment security had an unrealized loss that was determined to be other-than-temporary. | |||||||||||||||||||||||||
The unrealized losses on the Company’s investments in securities of state and municipal governmental agencies, U.S. Treasury and federal agencies, federal agency collateralized mortgage obligations, and federal agency mortgage-backed pools were caused by interest rate volatility and not a decline in credit quality. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Company expects to recover the amortized cost basis over the term of the securities. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity, the Company did not consider those investments to be other-than-temporarily impaired at December 31, 2014. | |||||||||||||||||||||||||
The Company elected to transfer 319 available-for-sale (“AFS”) securities with an aggregate fair value of $167.1 million to a classification of held-to-maturity (“HTM”) on April 1, 2014. In accordance with FASB ASC 320-10-55-24, the transfer from AFS to HTM must be recorded at the fair value of the AFS securities at the time of transfer. The net unrealized holding gain of $1.3 million, net of tax, at the date of transfer was retained in accumulated other comprehensive income (loss), with the associated pre-tax amount retained in the carrying value of the HTM securities. Such amounts will be amortized to comprehensive income over the remaining life of the securities. The fair value of the transferred AFS securities became the book value of the HTM securities at April 1, 2014, with no unrealized gain or loss at this date. Future reporting periods, with potential changes in market value for these securities, would likely record an unrealized gain or loss for disclosure purposes. | |||||||||||||||||||||||||
The amortized cost and fair value of securities available for sale and held-to-maturity at December 31, 2014 and December 31, 2013, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
Within one year | $ | 6,098 | $ | 6,169 | $ | 3,643 | $ | 3,663 | |||||||||||||||||
One to five years | 44,720 | 45,093 | 49,198 | 49,627 | |||||||||||||||||||||
Five to ten years | 16,147 | 16,768 | 106,225 | 107,424 | |||||||||||||||||||||
After ten years | 6,598 | 6,790 | 62,120 | 61,051 | |||||||||||||||||||||
73,563 | 74,820 | 221,186 | 221,765 | ||||||||||||||||||||||
Federal agency collateralized mortgage obligations | 122,930 | 122,860 | 116,047 | 114,706 | |||||||||||||||||||||
Federal agency mortgage-backed pools | 122,583 | 125,395 | 170,006 | 170,894 | |||||||||||||||||||||
Private labeled mortgage-backed pools | 670 | 689 | 1,188 | 1,226 | |||||||||||||||||||||
Total available for sale investment securities | $ | 319,746 | $ | 323,764 | $ | 508,427 | $ | 508,591 | |||||||||||||||||
Held to maturity | |||||||||||||||||||||||||
Within one year | $ | — | $ | — | $ | 9,910 | $ | 9,910 | |||||||||||||||||
One to five years | 592 | 593 | — | — | |||||||||||||||||||||
Five to ten years | 99,225 | 101,323 | — | — | |||||||||||||||||||||
After ten years | 39,582 | 40,857 | — | — | |||||||||||||||||||||
139,399 | 142,773 | 9,910 | 9,910 | ||||||||||||||||||||||
Federal agency collateralized mortgage obligations | 4,039 | 4,073 | — | — | |||||||||||||||||||||
Federal agency mortgage-backed pools | 22,329 | 23,058 | — | — | |||||||||||||||||||||
Total held to maturity investment securities | $ | 165,767 | $ | 169,904 | $ | 9,910 | $ | 9,910 | |||||||||||||||||
The following table shows the gross unrealized losses and the fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | 2,993 | $ | (7 | ) | $ | 20,762 | $ | (222 | ) | $ | 23,755 | $ | (229 | ) | ||||||||||
State and municipal | 10,287 | (121 | ) | 2,050 | (30 | ) | 12,336 | (151 | ) | ||||||||||||||||
Federal agency collateralized mortgage obligations | 15,013 | (88 | ) | 39,801 | (957 | ) | 54,813 | (1,046 | ) | ||||||||||||||||
Federal agency mortgage-backed pools | 5,993 | (9 | ) | 28,044 | (351 | ) | 34,037 | (360 | ) | ||||||||||||||||
Total temporarily impaired securities | $ | 34,286 | $ | (225 | ) | $ | 90,657 | $ | (1,560 | ) | $ | 124,941 | $ | (1,786 | ) | ||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | 32,099 | $ | (807 | ) | $ | — | $ | — | $ | 32,099 | $ | (807 | ) | |||||||||||
State and municipal | 57,078 | (2,993 | ) | 3,206 | (184 | ) | 60,284 | (3,177 | ) | ||||||||||||||||
Federal agency collateralized mortgage obligations | 64,445 | (2,121 | ) | 8,601 | (462 | ) | 73,046 | (2,583 | ) | ||||||||||||||||
Federal agency mortgage-backed pools | 87,919 | (2,284 | ) | — | — | 87,919 | (2,284 | ) | |||||||||||||||||
Total temporarily impaired securities | $ | 241,541 | $ | (8,205 | ) | $ | 11,807 | $ | (646 | ) | $ | 253,348 | $ | (8,851 | ) | ||||||||||
U.S. Treasury, federal agency, state and municipal | |||||||||||||||||||||||||
The unrealized losses on the Company’s investments in U.S. Treasury, federal agency and state and political subdivisions were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2014. | |||||||||||||||||||||||||
Federal agency mortgage-backed pools and collateralized mortgage obligations | |||||||||||||||||||||||||
The unrealized losses on the Company’s investment in collateralized mortgage obligations securities were caused by interest rate increases. The Company expects to recover the amortized cost basis over the term of the securities. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2014. | |||||||||||||||||||||||||
Information regarding security proceeds, gross gains and gross losses are presented below. | |||||||||||||||||||||||||
Years ended December 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Sales of securities available for sale | |||||||||||||||||||||||||
Proceeds | $ | 45,228 | $ | 23,853 | $ | 14,989 | |||||||||||||||||||
Gross gains | 988 | 382 | 2 | ||||||||||||||||||||||
Gross losses | — | (8 | ) | — | |||||||||||||||||||||
The tax effect of the proceeds from the sale of securities available for sale was $346, $131 and $0 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
The Company pledges securities to secure retail and corporate repurchase agreements to the Federal Reserve for borrowing availability and as settlements for the fair value of swap agreements. At December 31, 2014, the Company had pledged $159.7 million of fair value or $157.4 million of amortized cost, in securities as collateral for $139.7 million in repurchase agreements, $94.3 million of fair value or $91.8 million of amortized cost, in securities as collateral for borrowing availability at the Federal Reserve with no current outstanding borrowings and $13.0 million of fair value or $12.5 million of amortized cost, in securities as collateral for $4.5 million in settlements on the fair value of swap agreements. |
Loans
Loans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Receivables [Abstract] | |||||||||||||||||
Loans | Note 5 – Loans | ||||||||||||||||
December 31 | December 31 | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Commercial | |||||||||||||||||
Working capital and equipment | $ | 300,940 | $ | 241,569 | |||||||||||||
Real estate, including agriculture | 343,455 | 245,313 | |||||||||||||||
Tax exempt | 8,595 | 2,898 | |||||||||||||||
Other | 21,324 | 15,409 | |||||||||||||||
Total | 674,314 | 505,189 | |||||||||||||||
Real estate | |||||||||||||||||
1–4 family | 250,799 | 181,393 | |||||||||||||||
Other | 3,826 | 4,565 | |||||||||||||||
Total | 254,625 | 185,958 | |||||||||||||||
Consumer | |||||||||||||||||
Auto | 154,538 | 139,915 | |||||||||||||||
Recreation | 5,673 | 4,839 | |||||||||||||||
Real estate/home improvement | 38,288 | 30,729 | |||||||||||||||
Home equity | 112,426 | 96,924 | |||||||||||||||
Unsecured | 3,613 | 3,825 | |||||||||||||||
Other | 5,921 | 3,293 | |||||||||||||||
Total | 320,459 | 279,525 | |||||||||||||||
Mortgage warehouse | 129,156 | 98,156 | |||||||||||||||
Total loans | 1,378,554 | 1,068,828 | |||||||||||||||
Allowance for loan losses | (16,501 | ) | (15,992 | ) | |||||||||||||
Loans, net | $ | 1,362,053 | $ | 1,052,836 | |||||||||||||
Commercial | |||||||||||||||||
Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. | |||||||||||||||||
Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves larger loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of property type, and are monitored for concentrations of credit. Management monitors and evaluates commercial real estate loans based on collateral, cash flow and risk grade criteria. As a general rule, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. | |||||||||||||||||
Real Estate and Consumer | |||||||||||||||||
With respect to residential loans that are secured by 1-4 family residences and are generally owner occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. | |||||||||||||||||
Mortgage Warehousing | |||||||||||||||||
Horizon’s mortgage warehouse lending has specific mortgage companies as customers of Horizon Bank. Individual mortgage loans originated by these mortgage companies are funded as a secured borrowing with a pledge of collateral under Horizon’s agreement with the mortgage company. Each individual mortgage and the related mortgagee are underwritten by Horizon to the end investor guidelines and is assigned to Horizon until the loan is sold to the secondary market by the mortgage company. In addition, Horizon takes possession of each original note and forwards such note to the end investor once the mortgage company has sold the loan. At the time a loan is transferred to the secondary market, the mortgage company repurchases the loan under its option within the agreement. Due to the repurchase feature contained in the agreement, the transaction does not qualify as a sale and therefore is accounted for as a secured borrowing with a pledge of collateral pursuant to the agreement with the mortgage company. When the individual loan is sold to the end investor by the mortgage company, the proceeds from the sale of the loan are received by Horizon and used to pay off the loan balance with Horizon along with any accrued interest and any related fees. The remaining balance from the sale is forwarded to the mortgage company. These individual loans typically are sold by the mortgage company within 30 days and are seldom held more than 90 days. Interest income is accrued during this period and collected at the time each loan is sold. Fee income for each loan sold is collected when the loan is sold, and no costs are deferred due to the term between each loan funding and related payoff, which is typically less than 30 days. | |||||||||||||||||
Based on the agreements with each mortgage company, at any time a mortgage company can repurchase from Horizon its outstanding loan balance on an individual mortgage and regain possession of the original note. Horizon also has the option to request that the mortgage company repurchase an individual mortgage. Should this occur, Horizon would return the original note and reassign the assignment of the mortgage to the mortgage company. Also, in the event that the end investor would not be able to honor the purchase commitment and the mortgage company would not be able to repurchase its loan on an individual mortgage, Horizon would be able to exercise its rights under the agreement. | |||||||||||||||||
The following table shows the recorded investment of individual loan categories. | |||||||||||||||||
Loan | Deferred | Recorded | |||||||||||||||
Balance | Interest Due | Fees / (Costs) | Investment | ||||||||||||||
December 31, 2014 | |||||||||||||||||
Owner occupied real estate | $ | 228,380 | $ | 385 | $ | 680 | $ | 229,445 | |||||||||
Non owner occupied real estate | 297,299 | 309 | 506 | 298,114 | |||||||||||||
Residential spec homes | 2,027 | 2 | — | 2,029 | |||||||||||||
Development & spec land loans | 12,097 | 28 | 30 | 12,155 | |||||||||||||
Commercial and industrial | 133,256 | 859 | 39 | 134,154 | |||||||||||||
Total commercial | 673,059 | 1,583 | 1,255 | 675,897 | |||||||||||||
Residential mortgage | 242,521 | 737 | 599 | 243,857 | |||||||||||||
Residential construction | 11,505 | 21 | — | 11,526 | |||||||||||||
Mortgage warehouse | 129,156 | 480 | — | 129,636 | |||||||||||||
Total real estate | 383,182 | 1,238 | 599 | 385,019 | |||||||||||||
Direct installment | 40,137 | 129 | (375 | ) | 39,891 | ||||||||||||
Direct installment purchased | 219 | — | — | 219 | |||||||||||||
Indirect installment | 141,868 | 314 | (163 | ) | 142,019 | ||||||||||||
Home equity | 139,007 | 568 | (234 | ) | 139,341 | ||||||||||||
Total consumer | 321,231 | 1,011 | (772 | ) | 321,470 | ||||||||||||
Total loans | 1,377,472 | 3,832 | 1,082 | 1,382,386 | |||||||||||||
Allowance for loan losses | (16,501 | ) | — | — | (16,501 | ) | |||||||||||
Net loans | $ | 1,360,971 | $ | 3,832 | $ | 1,082 | $ | 1,365,885 | |||||||||
Loan | Deferred | Recorded | |||||||||||||||
Balance | Interest Due | Fees / (Costs) | Investment | ||||||||||||||
December 31, 2013 | |||||||||||||||||
Owner occupied real estate | $ | 156,262 | $ | 257 | $ | 207 | $ | 156,726 | |||||||||
Non owner occupied real estate | 224,713 | 105 | 299 | 225,117 | |||||||||||||
Residential spec homes | 400 | — | — | 400 | |||||||||||||
Development & spec land loans | 21,289 | 62 | 42 | 21,393 | |||||||||||||
Commercial and industrial | 101,920 | 737 | 57 | 102,714 | |||||||||||||
Total commercial | 504,584 | 1,161 | 605 | 506,350 | |||||||||||||
Residential mortgage | 176,068 | 578 | 382 | 177,028 | |||||||||||||
Residential construction | 9,508 | 14 | — | 9,522 | |||||||||||||
Mortgage warehouse | 98,156 | 480 | — | 98,636 | |||||||||||||
Total real estate | 283,732 | 1,072 | 382 | 285,186 | |||||||||||||
Direct installment | 29,983 | 104 | (281 | ) | 29,806 | ||||||||||||
Direct installment purchased | 294 | — | — | 294 | |||||||||||||
Indirect installment | 131,384 | 320 | — | 131,704 | |||||||||||||
Home equity | 117,958 | 529 | 187 | 118,674 | |||||||||||||
Total consumer | 279,619 | 953 | (94 | ) | 280,478 | ||||||||||||
Total loans | 1,067,935 | 3,186 | 893 | 1,072,014 | |||||||||||||
Allowance for loan losses | (15,992 | ) | — | — | (15,992 | ) | |||||||||||
Net loans | $ | 1,051,943 | $ | 3,186 | $ | 893 | $ | 1,056,022 | |||||||||
Accounting_for_Certain_Loans_A
Accounting for Certain Loans Acquired in a Transfer | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Transfers and Servicing [Abstract] | |||||||||||||
Accounting for Certain Loans Acquired in a Transfer | Note 6 – Accounting for Certain Loans Acquired in a Transfer | ||||||||||||
The Company acquired loans in acquisitions and the transferred loans had evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. | |||||||||||||
Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and non-accrual status, borrower credit scores and recent loan-to-value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using our internal risk models, which incorporate the estimate of current key assumptions, such as default rates, severity and prepayment speeds. | |||||||||||||
The carrying amounts of those loans included in the balance sheet amounts of loans receivable are as follows: | |||||||||||||
December 31 | December 31 | December 31 | |||||||||||
2014 | 2014 | 2014 | |||||||||||
Heartland | Summit | Total | |||||||||||
Commercial | 18,307 | 66,371 | $ | 84,678 | |||||||||
Real estate | 9,734 | 24,653 | 34,387 | ||||||||||
Consumer | 8,447 | 8,975 | 17,422 | ||||||||||
Outstanding balance | $ | 36,488 | $ | 99,999 | $ | 136,487 | |||||||
Carrying amount, net of allowance of $359 | $ | 136,128 | |||||||||||
December 31 | December 31 | December 31 | |||||||||||
2013 | 2013 | 2013 | |||||||||||
Heartland | Summit | Total | |||||||||||
Commercial | $ | 37,048 | $ | — | $ | 37,048 | |||||||
Real estate | 11,761 | — | 11,761 | ||||||||||
Consumer | 11,485 | — | 11,485 | ||||||||||
Outstanding balance | $ | 60,294 | $ | — | $ | 60,294 | |||||||
Carrying amount, net of allowance of $389 | $ | 59,905 | |||||||||||
Accretable yield, or income expected to be collected for the years ended December 31, is as follows: | |||||||||||||
Twelve Months Ended December 31, 2014 | |||||||||||||
Heartland | Summit | Total | |||||||||||
Balance at January 1 | $ | 3,185 | $ | — | $ | 3,185 | |||||||
Additions | — | 1,688 | 1,688 | ||||||||||
Accretion | (557 | ) | (332 | ) | (889 | ) | |||||||
Reclassification from nonaccretable difference | — | — | — | ||||||||||
Disposals | (228 | ) | (88 | ) | (316 | ) | |||||||
Balance at December 31 | $ | 2,400 | $ | 1,268 | $ | 3,668 | |||||||
Twelve Months Ended December 31, 2013 | |||||||||||||
Heartland | Summit | Total | |||||||||||
Balance at January 1 | $ | 6,111 | $ | — | $ | 6,111 | |||||||
Additions | — | — | — | ||||||||||
Accretion | (1,267 | ) | — | (1,267 | ) | ||||||||
Reclassification from nonaccretable difference | — | — | — | ||||||||||
Disposals | (1,659 | ) | — | (1,659 | ) | ||||||||
Balance at December 31 | $ | 3,185 | $ | — | $ | 3,185 | |||||||
During the years ended December 31, 2014 and 2013, the Company increased the allowance for loan losses by a charge to the income statement of $253,000 and $2.6 million, respectively. $283,000 and $0 of allowances for loan losses were reversed for the years ended December 31, 2014 and 2013, respectively. |
Allowance_for_Loan_Losses
Allowance for Loan Losses | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||
Allowance for Loan Losses | Note 7 – Allowance for Loan Losses | ||||||||||||||||||||
The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the prior one to five years. Management believes the five-year historical loss experience methodology is appropriate in the current economic environment, as it captures loss rates that are comparable to the current period being analyzed. The actual allowance for loan loss activity is provided below. | |||||||||||||||||||||
December 31 | December 31 | December 31 | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Balance at beginning of the period | $ | 15,992 | $ | 18,270 | $ | 18,882 | |||||||||||||||
Loans charged-off: | |||||||||||||||||||||
Commercial | |||||||||||||||||||||
Owner occupied real estate | 40 | 138 | 418 | ||||||||||||||||||
Non owner occupied real estate | 136 | 937 | 1,196 | ||||||||||||||||||
Residential development | — | — | — | ||||||||||||||||||
Development & Spec Land Loans | 173 | 182 | — | ||||||||||||||||||
Commercial and industrial | 1,453 | 1,275 | 774 | ||||||||||||||||||
Total commercial | 1,802 | 2,532 | 2,388 | ||||||||||||||||||
Real estate | |||||||||||||||||||||
Residential mortgage | 328 | 1,055 | 597 | ||||||||||||||||||
Residential construction | — | — | — | ||||||||||||||||||
Mortgage warehouse | — | — | — | ||||||||||||||||||
Total real estate | 328 | 1,055 | 597 | ||||||||||||||||||
Consumer | |||||||||||||||||||||
Direct Installment | 250 | 333 | 327 | ||||||||||||||||||
Direct Installment Purchased | — | — | — | ||||||||||||||||||
Indirect Installment | 1,233 | 1,178 | 1,294 | ||||||||||||||||||
Home Equity | 516 | 1,152 | 1,337 | ||||||||||||||||||
Total consumer | 1,999 | 2,663 | 2,958 | ||||||||||||||||||
Total loans charged-off | 4,129 | 6,250 | 5,943 | ||||||||||||||||||
Recoveries of loans previously charged-off: | |||||||||||||||||||||
Commercial | |||||||||||||||||||||
Owner occupied real estate | 13 | 65 | 547 | ||||||||||||||||||
Non owner occupied real estate | 210 | 71 | 98 | ||||||||||||||||||
Residential development | — | — | — | ||||||||||||||||||
Development & Spec Land Loans | 55 | — | — | ||||||||||||||||||
Commercial and industrial | 495 | 532 | 137 | ||||||||||||||||||
Total commercial | 773 | 668 | 782 | ||||||||||||||||||
Real estate | |||||||||||||||||||||
Residential mortgage | 21 | 114 | 77 | ||||||||||||||||||
Residential construction | — | — | — | ||||||||||||||||||
Mortgage warehouse | — | — | — | ||||||||||||||||||
Total real estate | 21 | 114 | 77 | ||||||||||||||||||
Consumer | |||||||||||||||||||||
Direct Installment | 67 | 488 | 84 | ||||||||||||||||||
Direct Installment Purchased | — | — | — | ||||||||||||||||||
Indirect Installment | 560 | 658 | 737 | ||||||||||||||||||
Home Equity | 159 | 124 | 127 | ||||||||||||||||||
Total consumer | 786 | 1,270 | 948 | ||||||||||||||||||
Total loan recoveries | 1,580 | 2,052 | 1,807 | ||||||||||||||||||
Net loans charged-off (recovered) | 2,549 | 4,198 | 4,136 | ||||||||||||||||||
Provision charged to operating expense | |||||||||||||||||||||
Commercial | 2,277 | 756 | 1,360 | ||||||||||||||||||
Real estate | (1,153 | ) | 1,132 | 1,262 | |||||||||||||||||
Consumer | 1,934 | 32 | 902 | ||||||||||||||||||
Total provision charged to operating expense | 3,058 | 1,920 | 3,524 | ||||||||||||||||||
Balance at the end of the period | $ | 16,501 | $ | 15,992 | $ | 18,270 | |||||||||||||||
Certain loans are individually evaluated for impairment, and the Company’s general practice is to proactively charge down impaired loans to the fair value of the underlying collateral. | |||||||||||||||||||||
Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. | |||||||||||||||||||||
For all loan portfolio segments except 1-4 family residential properties and consumer, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. | |||||||||||||||||||||
The Company charges-off 1-4 family residential and consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down or specific allocation of 1-4 family first and junior lien mortgages to the net realizable value less costs to sell when the value is known but no later than when a loan is 180 days past due. Pursuant to such guidelines, the Company also charges-off unsecured open-end loans when the loan is 90 days past due, and charges down to the net realizable value other secured loans when they are 90 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection in full will occur regardless of delinquency status, are not charged off. | |||||||||||||||||||||
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment analysis: | |||||||||||||||||||||
Commercial | Real Estate | Mortgage | Consumer | Total | |||||||||||||||||
Warehousing | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Allowance For Loan Losses | |||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||
Individually evaluated for impairment | $ | 1,589 | $ | — | $ | — | $ | — | $ | 1,589 | |||||||||||
Collectively evaluated for impairment | 5,827 | 2,508 | 1,132 | 4,951 | 14,418 | ||||||||||||||||
Loans acquired with deteriorated credit quality | 494 | — | — | — | 494 | ||||||||||||||||
Total ending allowance balance | $ | 7,910 | $ | 2,508 | $ | 1,132 | $ | 4,951 | $ | 16,501 | |||||||||||
Loans: | |||||||||||||||||||||
Individually evaluated for impairment | $ | 11,055 | $ | — | $ | — | $ | — | $ | 11,055 | |||||||||||
Collectively evaluated for impairment | 664,251 | 255,383 | 129,636 | 321,470 | 1,370,740 | ||||||||||||||||
Loans acquired with deteriorated credit quality | 591 | — | — | — | 591 | ||||||||||||||||
Total ending loans balance | $ | 675,897 | $ | 255,383 | $ | 129,636 | $ | 321,470 | $ | 1,382,386 | |||||||||||
Commercial | Real Estate | Mortgage | Consumer | Total | |||||||||||||||||
Warehousing | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Allowance For Loan Losses | |||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||
Individually evaluated for impairment | $ | 1,312 | $ | — | $ | — | $ | — | $ | 1,312 | |||||||||||
Collectively evaluated for impairment | 4,963 | 3,462 | 1,638 | 4,228 | 14,291 | ||||||||||||||||
Loans acquired with deteriorated credit quality | 389 | — | — | — | 389 | ||||||||||||||||
Total ending allowance balance | $ | 6,664 | $ | 3,462 | $ | 1,638 | $ | 4,228 | $ | 15,992 | |||||||||||
Loans: | |||||||||||||||||||||
Individually evaluated for impairment | $ | 7,448 | $ | — | $ | — | $ | — | $ | 7,448 | |||||||||||
Collectively evaluated for impairment | 489,547 | 186,526 | 98,636 | 279,448 | 1,054,157 | ||||||||||||||||
Loans acquired with deteriorated credit quality | 9,355 | 24 | — | 1,030 | 10,409 | ||||||||||||||||
Total ending loans balance | $ | 506,350 | $ | 186,550 | $ | 98,636 | $ | 280,478 | $ | 1,072,014 | |||||||||||
Nonperforming_Assets_and_Impai
Non-performing Assets and Impaired Loans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||
Non-performing Assets and Impaired Loans | Note 8 – Non-performing Assets and Impaired Loans | ||||||||||||||||||||||||
The following table presents the nonaccrual, loans past due over 90 days still on accrual, and troubled debt restructured (“TDRs”) by class of loans: | |||||||||||||||||||||||||
Non-accrual | Loans Past | Non- | Performing | Total Non- | |||||||||||||||||||||
Due Over 90 | Performing | TDRs | Performing | ||||||||||||||||||||||
Days Still | TDRs | Loans | |||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 1,773 | $ | — | $ | — | $ | 44 | $ | 1,817 | |||||||||||||||
Non owner occupied real estate | 7,439 | — | 217 | 566 | 8,222 | ||||||||||||||||||||
Residential development | — | — | — | — | — | ||||||||||||||||||||
Development & Spec Land Loans | — | — | — | — | — | ||||||||||||||||||||
Commercial and industrial | 812 | — | 1,004 | — | 1,816 | ||||||||||||||||||||
Total commercial | 10,024 | — | 1,221 | 610 | 11,855 | ||||||||||||||||||||
Real estate | |||||||||||||||||||||||||
Residential mortgage | 2,297 | 40 | 765 | 2,526 | 5,628 | ||||||||||||||||||||
Residential construction | — | — | 266 | — | 266 | ||||||||||||||||||||
Mortgage warehouse | — | — | — | — | — | ||||||||||||||||||||
Total real estate | 2,297 | 40 | 1,031 | 2,526 | 5,894 | ||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Direct Installment | 227 | 10 | — | — | 237 | ||||||||||||||||||||
Direct Installment Purchased | — | — | — | — | — | ||||||||||||||||||||
Indirect Installment | 557 | 47 | — | — | 604 | ||||||||||||||||||||
Home Equity | 2,207 | 18 | 391 | 1,236 | 3,852 | ||||||||||||||||||||
Total Consumer | 2,991 | 75 | 391 | 1,236 | 4,693 | ||||||||||||||||||||
Total | $ | 15,312 | $ | 115 | $ | 2,643 | $ | 4,372 | $ | 22,442 | |||||||||||||||
Non-accrual | Loans Past | Non- | Performing | Total Non- | |||||||||||||||||||||
Due Over 90 | Performing | TDRs | Performing | ||||||||||||||||||||||
Days Still | TDRs | Loans | |||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 293 | $ | — | $ | 222 | $ | 778 | $ | 1,293 | |||||||||||||||
Non owner occupied real estate | 2,289 | 45 | 1,117 | 518 | 3,969 | ||||||||||||||||||||
Residential development | — | — | — | — | — | ||||||||||||||||||||
Development & Spec Land Loans | 182 | — | — | — | 182 | ||||||||||||||||||||
Commercial and industrial | 1,250 | — | 777 | — | 2,027 | ||||||||||||||||||||
Total commercial | 4,014 | 45 | 2,116 | 1,296 | 7,471 | ||||||||||||||||||||
Real estate | |||||||||||||||||||||||||
Residential mortgage | 2,459 | 2 | 719 | 2,686 | 5,866 | ||||||||||||||||||||
Residential construction | — | — | 280 | — | 280 | ||||||||||||||||||||
Mortgage warehouse | — | — | — | — | — | ||||||||||||||||||||
Total real estate | 2,459 | 2 | 999 | 2,686 | 6,146 | ||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Direct Installment | 202 | — | — | — | 202 | ||||||||||||||||||||
Direct Installment Purchased | — | — | — | — | — | ||||||||||||||||||||
Indirect Installment | 531 | 2 | — | — | 533 | ||||||||||||||||||||
Home Equity | 2,542 | — | 311 | 1,072 | 3,925 | ||||||||||||||||||||
Total Consumer | 3,275 | 2 | 311 | 1,072 | 4,660 | ||||||||||||||||||||
Total | $ | 9,748 | $ | 49 | $ | 3,426 | $ | 5,054 | $ | 18,277 | |||||||||||||||
Included in the $15.3 million of non-accrual loans and the $2.6 million of non-performing TDRs at December 31, 2014 were $1.4 million and $247,000, respectively, of loans acquired for which there were accretable yields recognized. | |||||||||||||||||||||||||
From time to time, the Bank obtains information that may lead management to believe that the collection of payments may be doubtful on a particular loan. In recognition of this, it is management’s policy to convert the loan from an “earning asset” to a non-accruing loan. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Further, it is management’s policy to place a loan on a non-accrual status when the payment is delinquent in excess of 90 days or the loan has had the accrual of interest discontinued by management. The officer responsible for the loan and the Chief Operating Officer or the senior collection officer must review all loans placed on non-accrual status. Subsequent payments on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal in accordance with the loan terms. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. | |||||||||||||||||||||||||
A loan becomes impaired when, based on current information, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is classified as impaired, the degree of impairment must be recognized by estimating future cash flows from the debtor. The present value of these cash flows is computed at a discount rate based on the interest rate contained in the loan agreement. However, if a particular loan has a determinable market value for its collateral, the creditor may use that value. Also, if the loan is secured and considered collateral dependent, the creditor may use the fair value of the collateral. Interest income on loans individually classified as impaired is recognized on a cash basis after all past due and current principal payments have been made. | |||||||||||||||||||||||||
Smaller-balance, homogeneous loans are evaluated for impairment in total. Such loans include residential first mortgage loans secured by 1 – 4 family residences, residential construction loans, automobile, home equity, second mortgage loans and mortgage warehouse loans. Commercial loans and mortgage loans secured by other properties are evaluated individually for impairment. When analysis of borrower operating results and financial condition indicate that underlying cash flows of a borrower’s business are not adequate to meet its debt service requirements, the loan is evaluated for impairment. Often this is associated with a delay or shortfall in payments of 30 days or more. Loans are generally moved to non-accrual status when they are 90 days or more past due. These loans are often considered impaired. Impaired loans, or portions thereof, are charged off when deemed uncollectible. | |||||||||||||||||||||||||
Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms, including TDRs, are measured for impairment. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral-dependent loans. | |||||||||||||||||||||||||
The Company’s TDRs are considered impaired loans and included in the allowance methodology using the guidance for impaired loans. At December 31, 2014, the type of concessions the Company has made on restructured loans has been temporary rate reductions and/or reductions in monthly payments and there have been no restructured loans with modified recorded balances. Any modification to a loan that is a concession and is not in the normal course of lending is considered a restructured loan. A restructured loan is returned to accruing status after six consecutive payments but is still reported as TDR unless the loan bears interest at a market rate. As of December 31, 2014, the Company had $7.0 million in TDRs and $4.4 million were performing according to the restructured terms and three TDRs with total balances of $288,000 were returned to accrual status during 2014. There was $1.0 million of specific reserves allocated to TDRs at December 31, 2014 based on the collateral deficiencies. | |||||||||||||||||||||||||
Loans transferred and classified as troubled debt restructuring during the years ended December 31, 2014 and 2013, segregated by class, are shown in the table below. | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Number of | Unpaid | Number of | Unpaid | ||||||||||||||||||||||
Defaults | Principal | Defaults | Principal | ||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | — | $ | — | 3 | $ | 223 | |||||||||||||||||||
Non owner occupied real estate | — | — | 3 | 942 | |||||||||||||||||||||
Residential development | — | — | — | — | |||||||||||||||||||||
Development & Spec Land Loans | — | — | — | — | |||||||||||||||||||||
Commercial and industrial | 1 | 247 | — | — | |||||||||||||||||||||
Total commercial | 1 | 247 | 6 | 1,165 | |||||||||||||||||||||
Real estate | |||||||||||||||||||||||||
Residential mortgage | 2 | 319 | 9 | 1,252 | |||||||||||||||||||||
Residential construction | — | — | — | — | |||||||||||||||||||||
Mortgage warehouse | — | — | — | — | |||||||||||||||||||||
Total real estate | 2 | 319 | 9 | 1,252 | |||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Direct Installment | — | — | — | — | |||||||||||||||||||||
Direct Installment Purchased | — | — | — | — | |||||||||||||||||||||
Indirect Installment | — | — | — | — | |||||||||||||||||||||
Home Equity | 4 | 404 | 7 | 915 | |||||||||||||||||||||
Total Consumer | 4 | 404 | 7 | 915 | |||||||||||||||||||||
— | — | ||||||||||||||||||||||||
Total | 7 | $ | 969 | 22 | $ | 3,332 | |||||||||||||||||||
Troubled debt restructured loans which had payment defaults during the years ended December 31, 2014 and 2013, segregated by class, are shown in the table below. Default occurs when a loan is 90 days or more past due or transferred to nonaccrual. | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Number of | Unpaid | Number of | Unpaid | ||||||||||||||||||||||
Defaults | Principal | Defaults | Principal | ||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | — | $ | — | 3 | $ | 223 | |||||||||||||||||||
Non owner occupied real estate | — | — | 2 | 424 | |||||||||||||||||||||
Residential development | — | — | — | — | |||||||||||||||||||||
Development & Spec Land Loans | — | — | — | — | |||||||||||||||||||||
Commercial and industrial | 1 | 247 | — | — | |||||||||||||||||||||
Total commercial | 1 | 247 | 5 | 647 | |||||||||||||||||||||
Real estate | |||||||||||||||||||||||||
Residential mortgage | 2 | 243 | 3 | 355 | |||||||||||||||||||||
Residential construction | — | — | — | — | |||||||||||||||||||||
Mortgage warehouse | — | — | — | — | |||||||||||||||||||||
Total real estate | 2 | 243 | 3 | 355 | |||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Direct Installment | — | — | — | — | |||||||||||||||||||||
Direct Installment Purchased | — | — | — | — | |||||||||||||||||||||
Indirect Installment | — | — | — | — | |||||||||||||||||||||
Home Equity | 3 | 355 | 3 | 178 | |||||||||||||||||||||
Total Consumer | 3 | 355 | 3 | 178 | |||||||||||||||||||||
— | — | ||||||||||||||||||||||||
Total | 6 | $ | 845 | 11 | $ | 1,180 | |||||||||||||||||||
The following table presents commercial loans individually evaluated for impairment by class of loans: | |||||||||||||||||||||||||
Twelve Months Ending | |||||||||||||||||||||||||
Unpaid | Recorded | Allowance For | Average | Cash/Accrual | |||||||||||||||||||||
Principal | Investment | Loan Loss | Balance in | Interest Income | |||||||||||||||||||||
Balance | Allocated | Impaired Loans | Recognized | ||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 1,169 | $ | 1,170 | $ | — | $ | 645 | $ | 65 | |||||||||||||||
Non owner occupied real estate | 1,193 | 1,194 | — | 1,341 | 51 | ||||||||||||||||||||
Residential development | — | — | — | — | — | ||||||||||||||||||||
Development & Spec Land Loans | — | — | — | — | — | ||||||||||||||||||||
Commercial and industrial | 854 | 854 | — | 357 | 27 | ||||||||||||||||||||
Total commercial | 3,216 | 3,218 | — | 2,343 | 143 | ||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | 422 | 422 | 165 | 141 | 16 | ||||||||||||||||||||
Non owner occupied real estate | 6,453 | 6,453 | 744 | 1,995 | 208 | ||||||||||||||||||||
Residential development | — | — | — | — | — | ||||||||||||||||||||
Development & Spec Land Loans | — | — | — | — | — | ||||||||||||||||||||
Commercial and industrial | 962 | 962 | 680 | 798 | 12 | ||||||||||||||||||||
Total commercial | 7,837 | 7,837 | 1,589 | 2,934 | 236 | ||||||||||||||||||||
Total | $ | 11,053 | $ | 11,055 | $ | 1,589 | $ | 5,277 | $ | 379 | |||||||||||||||
Twelve Months Ending | |||||||||||||||||||||||||
Unpaid | Recorded | Allowance | Average | Cash/Accrual | |||||||||||||||||||||
Principal | Investment | For Loan | Balance in | Interest Income | |||||||||||||||||||||
Balance | Loss | Impaired Loans | Recognized | ||||||||||||||||||||||
Allocated | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 1,293 | $ | 1,296 | $ | — | $ | 1,845 | $ | 68 | |||||||||||||||
Non owner occupied real estate | 3,521 | 3,525 | — | 2,963 | 172 | ||||||||||||||||||||
Residential development | — | — | — | — | — | ||||||||||||||||||||
Development & Spec Land Loans | 23 | 23 | — | 25 | — | ||||||||||||||||||||
Commercial and industrial | 390 | 405 | — | 712 | — | ||||||||||||||||||||
Total commercial | 5,227 | 5,249 | — | 5,545 | 240 | ||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | — | — | — | — | — | ||||||||||||||||||||
Non owner occupied real estate | 403 | 403 | 202 | 485 | — | ||||||||||||||||||||
Residential development | — | — | — | — | — | ||||||||||||||||||||
Development & Spec Land Loans | 159 | 159 | 48 | 166 | — | ||||||||||||||||||||
Commercial and industrial | 1,637 | 1,637 | 1,062 | 1,140 | 31 | ||||||||||||||||||||
Total commercial | 2,199 | 2,199 | 1,312 | 1,791 | 31 | ||||||||||||||||||||
Total | $ | 7,426 | $ | 7,448 | $ | 1,312 | $ | 7,336 | $ | 271 | |||||||||||||||
Twelve Months Ending | |||||||||||||||||||||||||
Unpaid | Recorded | Allowance For | Average | Cash/Accrual | |||||||||||||||||||||
Principal | Investment | Loan Loss | Balance in | Interest Income | |||||||||||||||||||||
Balance | Allocated | Impaired Loans | Recognized | ||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 4,890 | $ | 4,901 | $ | — | $ | 2,422 | $ | 80 | |||||||||||||||
Non owner occupied real estate | 1,961 | 1,963 | — | 1,544 | 20 | ||||||||||||||||||||
Residential development | — | — | — | — | — | ||||||||||||||||||||
Development & Spec Land Loans | 133 | 133 | — | 61 | — | ||||||||||||||||||||
Commercial and industrial | 449 | 466 | — | 297 | — | ||||||||||||||||||||
Total commercial | 7,433 | 7,463 | — | 4,324 | 100 | ||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | — | — | — | — | — | ||||||||||||||||||||
Non owner occupied real estate | 1,795 | 1,795 | 1,080 | 481 | 95 | ||||||||||||||||||||
Residential development | — | — | — | — | — | ||||||||||||||||||||
Development & Spec Land Loans | 572 | 572 | 600 | 526 | 6 | ||||||||||||||||||||
Commercial and industrial | 797 | 797 | 265 | 806 | — | ||||||||||||||||||||
Total commercial | 3,164 | 3,164 | 1,945 | 1,813 | 101 | ||||||||||||||||||||
Total | $ | 10,597 | $ | 10,627 | $ | 1,945 | $ | 6,137 | $ | 201 | |||||||||||||||
The following table presents the payment status by class of loans: | |||||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | Greater than 90 | Total Past Due | Loans Not Past | Total | ||||||||||||||||||||
Past Due | Past Due | Days Past Due | Due | ||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 103 | $ | 645 | $ | — | $ | 748 | $ | 227,632 | $ | 228,380 | |||||||||||||
Non owner occupied real estate | 413 | — | — | 413 | 296,886 | 297,299 | |||||||||||||||||||
Residential development | — | — | — | — | 2,027 | 2,027 | |||||||||||||||||||
Development & Spec Land Loans | — | — | — | — | 12,097 | 12,097 | |||||||||||||||||||
Commercial and industrial | 19 | 1 | — | 20 | 133,236 | 133,256 | |||||||||||||||||||
Total commercial | 535 | 646 | — | 1,181 | 671,878 | 673,059 | |||||||||||||||||||
Real estate | |||||||||||||||||||||||||
Residential mortgage | 1,033 | 193 | 40 | 1,266 | 241,255 | 242,521 | |||||||||||||||||||
Residential construction | — | — | — | — | 11,505 | 11,505 | |||||||||||||||||||
Mortgage warehouse | — | — | — | — | 129,156 | 129,156 | |||||||||||||||||||
Total real estate | 1,033 | 193 | 40 | 1,266 | 381,916 | 383,182 | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Direct Installment | 113 | 4 | 10 | 127 | 40,010 | 40,137 | |||||||||||||||||||
Direct Installment Purchased | — | — | — | — | 219 | 219 | |||||||||||||||||||
Indirect Installment | 1,042 | 243 | 47 | 1,332 | 140,536 | 141,868 | |||||||||||||||||||
Home Equity | 1,084 | 189 | 18 | 1,291 | 137,716 | 139,007 | |||||||||||||||||||
Total consumer | 2,239 | 436 | 75 | 2,750 | 318,481 | 321,231 | |||||||||||||||||||
Total | $ | 3,807 | $ | 1,275 | $ | 115 | $ | 5,197 | $ | 1,372,275 | $ | 1,377,472 | |||||||||||||
Percentage of total loans | 0.28 | % | 0.09 | % | 0.01 | % | 0.38 | % | 99.62 | % | |||||||||||||||
30 - 59 Days | 60 - 89 Days | Greater than 90 | Total Past Due | Loans Not Past | Total | ||||||||||||||||||||
Past Due | Past Due | Days Past Due | Due | ||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 341 | $ | — | $ | — | $ | 341 | $ | 155,921 | $ | 156,262 | |||||||||||||
Non owner occupied real estate | 424 | — | 45 | 469 | 224,244 | 224,713 | |||||||||||||||||||
Residential development | — | — | — | — | 400 | 400 | |||||||||||||||||||
Development & Spec Land Loans | — | — | — | — | 21,289 | 21,289 | |||||||||||||||||||
Commercial and industrial | — | — | — | — | 101,920 | 101,920 | |||||||||||||||||||
Total commercial | 765 | — | 45 | 810 | 503,774 | 504,584 | |||||||||||||||||||
Real estate | |||||||||||||||||||||||||
Residential mortgage | 445 | 87 | 2 | 534 | 175,534 | 176,068 | |||||||||||||||||||
Residential construction | — | — | — | — | 9,508 | 9,508 | |||||||||||||||||||
Mortgage warehouse | — | — | — | — | 98,156 | 98,156 | |||||||||||||||||||
Total real estate | 445 | 87 | 2 | 534 | 283,198 | 283,732 | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Direct Installment | 120 | 24 | — | 144 | 29,839 | 29,983 | |||||||||||||||||||
Direct Installment Purchased | — | — | — | — | 294 | 294 | |||||||||||||||||||
Indirect Installment | 1,011 | 175 | 2 | 1,188 | 130,196 | 131,384 | |||||||||||||||||||
Home Equity | 767 | 58 | — | 825 | 117,133 | 117,958 | |||||||||||||||||||
Total consumer | 1,898 | 257 | 2 | 2,157 | 277,462 | 279,619 | |||||||||||||||||||
Total | $ | 3,108 | $ | 344 | $ | 49 | $ | 3,501 | $ | 1,064,434 | $ | 1,067,935 | |||||||||||||
Percentage of total loans | 0.29 | % | 0.03 | % | 0 | % | 0.33 | % | 99.67 | % | |||||||||||||||
The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. | |||||||||||||||||||||||||
Horizon Bank’s processes for determining credit quality differ slightly depending on whether a new loan or a renewed loan is being underwritten, or whether an existing loan is being re-evaluated for credit quality. The latter usually occurs upon receipt of current financial information or other pertinent data that would trigger a change in the loan grade. | |||||||||||||||||||||||||
• | For new and renewed commercial loans, the Bank’s Credit Department, which acts independently of the loan officer, assigns the credit quality grade to the loan. Loan grades for loans with an aggregate credit exposure that exceeds the authorities in the respective markets (ranging from $1,000,000 to $2,500,000) are validated by the Loan Committee, which is chaired by the Chief Credit Officer (“CCO”). | ||||||||||||||||||||||||
• | Commercial loan officers are responsible for reviewing their loan portfolios and report any adverse material change to the CCO or Loan Committee. When circumstances warrant a change in the credit quality grade, loan officers are required to notify the CCO and the Credit Department of the change in the loan grade. Downgrades are accepted immediately by the CCO however, lenders must present their factual information to either the Loan Committee or the CCO when recommending an upgrade. | ||||||||||||||||||||||||
• | The CCO, or his designee, meets weekly with loan officers to discuss the status of past-due loans and classified loans. These meetings are also designed to give the loan officers an opportunity to identify an existing loan that should be downgraded to a classified grade. | ||||||||||||||||||||||||
• | Monthly, senior management meets with the Watch Committee, which reviews all of the past due, classified, and impaired loans and the relative trends of these assets. This committee also reviews the actions taken by management regarding foreclosure mitigation, loan extensions, troubled debt restructures, other real estate owned and personal property repossessions. The information reviewed in this meeting acts as a precursor for developing management’s analysis of the adequacy of the Allowance for Loan and Lease Losses. | ||||||||||||||||||||||||
For residential real estate and consumer loans, Horizon uses a grading system based on delinquency. Loans that are 90 days or more past due, on non-accrual, or are classified as a TDR are graded “Substandard.” After being 90 days delinquent a loan is charged off unless it is well secured and in the process of collection. If the latter case exists, the loan is placed on non-accrual. Occasionally a mortgage loan may be graded as “Special Mention.” When this situation arises, it is because the characteristics of the loan and the borrower fit the definition of a Risk Grade 5 described below, which is normally used for grading commercial loans. Loans not graded Substandard are considered Pass. | |||||||||||||||||||||||||
Horizon Bank employs a nine-grade rating system to determine the credit quality of commercial loans. The first five grades represent acceptable quality, and the last four grades mirror the criticized and classified grades used by the bank regulatory agencies (special mention, substandard, doubtful, and loss). The loan grade definitions are detailed below. | |||||||||||||||||||||||||
Risk Grade 1: Excellent (Pass) | |||||||||||||||||||||||||
Loans secured by liquid collateral, such as certificates of deposit, reputable bank letters of credit, or other cash equivalents; loans that are guaranteed or otherwise backed by the full faith and credit of the United States government or an agency thereof, such as the Small Business Administration; or loans to any publicly held company with a current long-term debt rating of A or better. | |||||||||||||||||||||||||
Risk Grade 2: Good (Pass) | |||||||||||||||||||||||||
Loans to businesses that have strong financial statements containing an unqualified opinion from a CPA firm and at least three consecutive years of profits; loans supported by unaudited financial statements containing strong balance sheets, five consecutive years of profits, a five-year satisfactory relationship with the Bank, and key balance sheet and income statement trends that are either stable or positive; loans secured by publicly traded marketable securities where there is no impediment to liquidation; loans to individuals backed by liquid personal assets and unblemished credit history; or loans to publicly held companies with current long-term debt ratings of Baa or better. | |||||||||||||||||||||||||
Risk Grade 3: Satisfactory (Pass) | |||||||||||||||||||||||||
Loans supported by financial statements (audited or unaudited) that indicate average or slightly below average risk and having some deficiency or vulnerability to changing economic conditions; loans with some weakness but offsetting features of other support are readily available; loans that are meeting the terms of repayment, but which may be susceptible to deterioration if adverse factors are encountered. | |||||||||||||||||||||||||
Loans may be graded Satisfactory when there is no recent information on which to base a current risk evaluation and the following conditions apply: | |||||||||||||||||||||||||
• | At inception, the loan was properly underwritten, did not possess an unwarranted level of credit risk, and the loan met the above criteria for a risk grade of Excellent, Good, or Satisfactory; | ||||||||||||||||||||||||
• | At inception, the loan was secured with collateral possessing a loan value adequate to protect the Bank from loss. | ||||||||||||||||||||||||
• | The loan has exhibited two or more years of satisfactory repayment with a reasonable reduction of the principal balance. | ||||||||||||||||||||||||
• | During the period that the loan has been outstanding, there has been no evidence of any credit weakness. Some examples of weakness include slow payment, lack of cooperation by the borrower, breach of loan covenants, or the borrower is in an industry known to be experiencing problems. If any of these credit weaknesses is observed, a lower risk grade may be warranted. | ||||||||||||||||||||||||
Risk Grade 4 Satisfactory/Monitored: | |||||||||||||||||||||||||
Loans in this category are considered to be of acceptable credit quality, but contain greater credit risk than Satisfactory loans. Borrower displays acceptable liquidity, leverage, and earnings performance within the Bank’s minimum underwriting guidelines. The level of risk is acceptable but conditioned on the proper level of loan officer supervision. Loans that normally fall into this grade include acquisition, construction and development loans and income producing properties that have not reached stabilization. | |||||||||||||||||||||||||
Risk Grade 4W Management Watch: | |||||||||||||||||||||||||
Loans in this category are considered to be of acceptable quality, but with above normal risk. Borrower displays potential indicators of weakness in the primary source of repayment resulting in a higher reliance on secondary sources of repayment. Balance sheet may exhibit weak liquidity and/or high leverage. There is inconsistent earnings performance without the ability to sustain adverse economic conditions. Borrower may be operating in a declining industry or the property type, as for a commercial real estate loan, may be high risk or in decline. These loans require an increased level of loan officer supervision and monitoring to assure that any deterioration is addressed in a timely fashion. | |||||||||||||||||||||||||
Risk Grade 5: Special Mention | |||||||||||||||||||||||||
Loans which possess some credit deficiency or potential weakness which deserves close attention. Such loans pose an unwarranted financial risk that, if not corrected, could weaken the loan by adversely impacting the future repayment ability of the borrower. The key distinctions of a Special Mention classification are that (1) it is indicative of an unwarranted level of risk and (2) weaknesses are considered “potential,” not “defined,” impairments to the primary source of repayment. These loans may be to borrowers with adverse trends in financial performance, collateral value and/or marketability, or balance sheet strength. | |||||||||||||||||||||||||
Risk Grade 6: Substandard | |||||||||||||||||||||||||
One or more of the following characteristics may be exhibited in loans classified Substandard: | |||||||||||||||||||||||||
• | Loans which possess a defined credit weakness. The likelihood that a loan will be paid from the primary source of repayment is uncertain. Financial deterioration is under way and very close attention is warranted to ensure that the loan is collected without loss. | ||||||||||||||||||||||||
• | Loans are inadequately protected by the current net worth and paying capacity of the obligor. | ||||||||||||||||||||||||
• | The primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees. | ||||||||||||||||||||||||
• | Loans have a distinct possibility that the Bank will sustain some loss if deficiencies are not corrected. | ||||||||||||||||||||||||
• | Unusual courses of action are needed to maintain a high probability of repayment. | ||||||||||||||||||||||||
• | The borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments. | ||||||||||||||||||||||||
• | The lender is forced into a subordinated or unsecured position due to flaws in documentation. | ||||||||||||||||||||||||
• | Loans have been restructured so that payment schedules, terms, and collateral represent concessions to the borrower when compared to the normal loan terms. | ||||||||||||||||||||||||
• | The lender is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan. | ||||||||||||||||||||||||
• | There is a significant deterioration in market conditions to which the borrower is highly vulnerable. | ||||||||||||||||||||||||
Risk Grade 7: Doubtful | |||||||||||||||||||||||||
One or more of the following characteristics may be present in loans classified Doubtful: | |||||||||||||||||||||||||
• | Loans have all of the weaknesses of those classified as Substandard. However, based on existing conditions, these weaknesses make full collection of principal highly improbable. | ||||||||||||||||||||||||
• | The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment. | ||||||||||||||||||||||||
• | The possibility of loss is high but because of certain important pending factors which may strengthen the loan, loss classification is deferred until the exact status of repayment is known. | ||||||||||||||||||||||||
Risk Grade 8: Loss | |||||||||||||||||||||||||
Loans are considered uncollectible and of such little value that continuing to carry them as assets is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future. | |||||||||||||||||||||||||
The following table presents loans by credit grades. | |||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||
Mention | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 215,875 | $ | 7,623 | $ | 4,883 | $ | — | $ | 228,381 | |||||||||||||||
Non owner occupied real estate | 283,518 | 4,458 | 9,323 | — | 297,299 | ||||||||||||||||||||
Residential development | 2,027 | — | — | — | 2,027 | ||||||||||||||||||||
Development & Spec Land Loans | 12,018 | 79 | — | — | 12,097 | ||||||||||||||||||||
Commercial and industrial | 128,589 | 1,799 | 2,868 | — | 133,256 | ||||||||||||||||||||
Total commercial | 642,027 | 13,959 | 17,074 | — | 673,060 | ||||||||||||||||||||
Real estate | |||||||||||||||||||||||||
Residential mortgage | 236,893 | — | 5,628 | — | 242,521 | ||||||||||||||||||||
Residential construction | 11,239 | — | 266 | — | 11,505 | ||||||||||||||||||||
Mortgage warehouse | 129,156 | — | — | — | 129,156 | ||||||||||||||||||||
Total real estate | 377,288 | — | 5,894 | — | 383,182 | ||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Direct Installment | 39,900 | — | 237 | — | 40,137 | ||||||||||||||||||||
Direct Installment Purchased | 219 | — | — | — | 219 | ||||||||||||||||||||
Indirect Installment | 141,264 | — | 604 | — | 141,868 | ||||||||||||||||||||
Home Equity | 135,155 | — | 3,852 | — | 139,007 | ||||||||||||||||||||
Total Consumer | 316,538 | — | 4,693 | — | 321,231 | ||||||||||||||||||||
Total | $ | 1,335,854 | $ | 13,959 | $ | 27,661 | $ | — | $ | 1,377,473 | |||||||||||||||
Percentage of total loans | 96.98 | % | 1.01 | % | 2.01 | % | 0 | % | |||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||
Mention | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 146,085 | $ | 2,231 | $ | 7,946 | $ | — | $ | 156,262 | |||||||||||||||
Non owner occupied real estate | 208,625 | 5,047 | 11,041 | — | 224,713 | ||||||||||||||||||||
Residential development | 400 | — | — | — | 400 | ||||||||||||||||||||
Development & Spec Land Loans | 19,858 | 91 | 1,340 | — | 21,289 | ||||||||||||||||||||
Commercial and industrial | 91,852 | 6,492 | 3,576 | — | 101,920 | ||||||||||||||||||||
Total commercial | 466,820 | 13,861 | 23,903 | — | 504,584 | ||||||||||||||||||||
Real estate | |||||||||||||||||||||||||
Residential mortgage | 170,202 | — | 5,866 | — | 176,068 | ||||||||||||||||||||
Residential construction | 9,228 | — | 280 | — | 9,508 | ||||||||||||||||||||
Mortgage warehouse | 98,156 | — | — | — | 98,156 | ||||||||||||||||||||
Total real estate | 277,586 | — | 6,146 | — | 283,732 | ||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Direct Installment | 29,781 | — | 202 | — | 29,983 | ||||||||||||||||||||
Direct Installment Purchased | 294 | — | — | — | 294 | ||||||||||||||||||||
Indirect Installment | 130,851 | — | 533 | — | 131,384 | ||||||||||||||||||||
Home Equity | 114,033 | — | 3,925 | — | 117,958 | ||||||||||||||||||||
Total Consumer | 274,959 | — | 4,660 | — | 279,619 | ||||||||||||||||||||
Total | $ | 1,019,365 | $ | 13,861 | $ | 34,709 | $ | — | $ | 1,067,935 | |||||||||||||||
Percentage of total loans | 95.45 | % | 1.3 | % | 3.25 | % | 0 | % | |||||||||||||||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Premises and Equipment | Note 9 – Premises and Equipment | ||||||||
December 31 | December 31 | ||||||||
2014 | 2013 | ||||||||
Land | $ | 16,550 | $ | 13,323 | |||||
Buildings and improvements | 49,066 | 45,466 | |||||||
Furniture and equipment | 13,795 | 11,833 | |||||||
Total cost | 79,411 | 70,622 | |||||||
Accumulated depreciation | (26,950 | ) | (24,428 | ) | |||||
Net premise and equipment | $ | 52,461 | $ | 46,194 | |||||
Loan_Servicing
Loan Servicing | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Loan Servicing | Note 10 – Loan Servicing | ||||||||||||
Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of loans serviced for others totaled approximately $1,035.5 million and $943.1 million at December 31, 2014 and 2013. | |||||||||||||
The aggregate fair value of capitalized mortgage servicing rights was approximately $10.5 million, $9.9 million, and $6.6 million at December 31, 2014, 2013 and 2012, compared to the carrying values of $7.6 million, $7.0 million and $5.1 million, respectively. Comparable market values and a valuation model that calculates the present value of future cash flows were used to estimate fair value. For purposes of measuring impairment, risk characteristics including product type, investor type and interest rates, were used to stratify the originated mortgage servicing rights. | |||||||||||||
December 31 | December 31 | December 31 | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Mortgage servicing rights | |||||||||||||
Balances, January 1 | $ | 7,428 | $ | 6,169 | $ | 5,049 | |||||||
Servicing rights capitalized | 2,280 | 2,535 | 2,439 | ||||||||||
Amortization of servicing rights | (1,728 | ) | (1,276 | ) | (1,319 | ) | |||||||
Balances, December 31 | 7,980 | 7,428 | 6,169 | ||||||||||
Impairment allowance | |||||||||||||
Balances, January 1 | (389 | ) | (1,024 | ) | (856 | ) | |||||||
Additions | (95 | ) | (54 | ) | (762 | ) | |||||||
Reductions | 146 | 689 | 594 | ||||||||||
Balances, December 31 | (338 | ) | (389 | ) | (1,024 | ) | |||||||
Mortgage servicing rights, net | $ | 7,642 | $ | 7,039 | $ | 5,145 | |||||||
During 2014, 2013 and 2012, the Bank recorded recovery and additional (impairment) of approximately $51,000, $635,000 and $(168,000). |
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Intangible Assets | Note 11 – Intangible Assets | ||||||||||||||||
As a result of the acquisition of Alliance Bank Corporation in 2005, American Trust & Savings Bank in 2010, Heartland in 2012 and Summit in 2014, the Company has recorded certain amortizable intangible assets related to core deposit intangibles. The core deposit intangible is being amortized over seven to ten years using an accelerated method. Amortizable intangible assets are summarized as follows: | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||
Amortizable intangible assets Core deposit intangible | $ | 8,526 | $ | (4,561 | ) | $ | 6,969 | $ | (3,681 | ) | |||||||
Amortization expense for intangible assets totaled $880,000, $760,000, and $576,000 for the years ended December 31, 2014, 2013 and 2012. Estimated amortization for the years ending December 31 is as follows: | |||||||||||||||||
2015 | $ | 768 | |||||||||||||||
2016 | 666 | ||||||||||||||||
2017 | 664 | ||||||||||||||||
2018 | 661 | ||||||||||||||||
2019 | 519 | ||||||||||||||||
Thereafter | 687 | ||||||||||||||||
$ | 3,965 | ||||||||||||||||
Deposits
Deposits | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Banking and Thrift [Abstract] | |||||||||||||
Deposits | Note 12 – Deposits | ||||||||||||
December 31 | December 31 | ||||||||||||
2014 | 2013 | ||||||||||||
Noninterest-bearing demand deposits | $ | 267,667 | $ | 231,096 | |||||||||
Interest-bearing demand deposits | 606,609 | 513,445 | |||||||||||
Money market (variable rate) | 179,142 | 129,425 | |||||||||||
Savings deposits | 144,831 | 137,096 | |||||||||||
Certificates of deposit of $100,000 or more | 137,147 | 134,337 | |||||||||||
Other certificates and time deposits | 146,923 | 146,121 | |||||||||||
Total deposits | $ | 1,482,319 | $ | 1,291,520 | |||||||||
Certificates and other time deposits for both retail and brokered maturing in years ending December 31 are as follows: | |||||||||||||
Retail | Brokered | Total | |||||||||||
2015 | $ | 114,468 | $ | 10,913 | $ | 125,381 | |||||||
2016 | 46,265 | 7,302 | 53,567 | ||||||||||
2017 | 42,482 | 2,677 | 45,159 | ||||||||||
2018 | 26,332 | — | 26,332 | ||||||||||
2019 | 15,275 | — | 15,275 | ||||||||||
Thereafter | 18,356 | — | 18,356 | ||||||||||
$ | 263,178 | $ | 20,892 | $ | 284,070 | ||||||||
Borrowings
Borrowings | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Borrowings | Note 13 – Borrowings | ||||||||
December 31 | December 31 | ||||||||
2014 | 2013 | ||||||||
Federal Home Loan Bank advances, variable and fixed rates ranging from 0.32% to 7.53%, due at various dates through November 15, 2024 | $ | 116,473 | $ | 75,050 | |||||
Securities sold under agreements to repurchase | 139,725 | 140,246 | |||||||
Federal funds purchased | 95,000 | 41,000 | |||||||
Total borrowings | $ | 351,198 | $ | 256,296 | |||||
The Federal Home Loan Bank advances are secured by first and second mortgage loans and mortgage warehouse loans totaling approximately $354.2 million. Advances are subject to restrictions or penalties in the event of prepayment. | |||||||||
Securities sold under agreements to repurchase consist of obligations of the Bank to other parties. The obligations are secured by U.S. agency and mortgage-backed securities and such collateral is held in safekeeping by third parties. The maximum amount of outstanding agreements at any month end during 2014 and 2013 totaled $144.3 million and $141.4 million and the daily average of such agreements totaled $140.9 million and $137.6 million. The agreements at December 31, 2014, mature at various dates through September 13, 2020. | |||||||||
At December 31, 2014, the Bank has available approximately $301.4 million in credit lines with various money center banks, including the FHLB. | |||||||||
Contractual maturities in years ending December 31: | |||||||||
2015 | $ | 214,340 | |||||||
2016 | 27,432 | ||||||||
2017 | 47,539 | ||||||||
2018 | 1,111 | ||||||||
2019 | 50,293 | ||||||||
Thereafter | 10,483 | ||||||||
$ | 351,198 | ||||||||
Subordinated_Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2014 | |
Text Block [Abstract] | |
Subordinated Debentures | Note 14 – Subordinated Debentures |
In October of 2004, Horizon formed Horizon Statutory Trust II (Trust II), a wholly owned statutory business trust. Trust II sold $10.3 million of Trust Preferred Capital Securities as a participant in a pooled trust preferred securities offering. The proceeds from the sale of the trust preferred securities were used by the trust to purchase an equivalent amount of subordinated debentures from Horizon. The junior subordinated debentures are the sole assets of Trust II and are fully and unconditionally guaranteed by Horizon. The junior subordinated debentures and the trust preferred securities pay interest and dividends on a quarterly basis. The junior subordinated debentures and the securities bear interest at a rate of 90-day LIBOR plus 1.95% (2.19% at December 31, 2014) and mature on October 21, 2034, and securities may be called at any quarterly interest payment date at par. Costs associated with the issuance of the securities totaling $17,500 were capitalized and were amortized to the October 31, 2009, first call date of the securities. | |
In December of 2006, Horizon formed Horizon Bancorp Capital Trust III (Trust III), a wholly owned statutory business trust. Trust III sold $12.4 million of Trust Preferred Capital Securities as a participant in a pooled trust preferred securities offering. The proceeds from the sale of the trust preferred securities were used by the trust to purchase an equivalent amount of subordinated debentures from Horizon. The junior subordinated debentures are the sole assets of Trust III and are fully and unconditionally guaranteed by Horizon. The junior subordinated debentures and the trust preferred securities pay interest and dividends on a quarterly basis. The junior subordinated debentures and the securities bear interest at a rate of 90-day LIBOR plus 1.65% (1.88% at December 31, 2014) and mature on January 30, 2037, and securities may be called at any quarterly interest payment date at par. Costs associated with the issuance of the securities totaling $12,647 were capitalized and are being amortized to the first call date of the securities. | |
The Company assumed additional debentures as the result of the acquisition of Alliance Bank Corporation in 2005. In June 2004, Alliance formed Alliance Financial Statutory Trust I a wholly owned business trust (Alliance Trust), to sell $5.2 million in trust preferred securities. The proceeds from the sale of the trust preferred securities were used by the trust to purchase an equivalent amount of subordinated debentures from Alliance. The junior subordinated debentures are the sole assets of Alliance Trust and are fully and unconditionally guaranteed by Horizon. The junior subordinated debentures and the trust preferred securities pay interest and dividends on a quarterly basis. The junior subordinated debentures and the securities bear interest at a rate of 90-day LIBOR plus 2.65% (2.89% at December 31, 2014) and mature in June 2034, and securities may be called at any quarterly interest payment date at par. | |
The Company assumed additional debentures as the result of the American Trust & Savings Bank purchase and assumption in 2010. In March 2004, Am Tru Inc., the holding company for American Trust & Savings Bank, formed Am Tru Statutory Trust I a wholly owned business trust (Am Tru Trust), to sell $3.5 million in trust preferred securities. The proceeds from the sale of the trust preferred securities were used by the trust to purchase an equivalent amount of subordinated debentures from Am Tru Inc. The junior subordinated debentures are the sole assets of Am Tru Trust and are fully and unconditionally guaranteed by Horizon. The junior subordinated debentures and the trust preferred securities pay interest and dividends on a quarterly basis. The junior subordinated debentures and the securities bear interest at a rate of 90-day LIBOR plus 2.85% (3.09% at December 31, 2014) and mature in March 2034, and securities may be called at any quarterly interest payment date at par. The carrying value was $2.9 million, net of the remaining purchase discount, at December 31, 2014. | |
The Company assumed additional debentures as the result of the Heartland merger in July 2012. In December 2006, Heartland formed Heartland (IN) Statutory Trust II a wholly owned business trust (Heartland Trust), to sell $3.0 million in trust preferred securities. The proceeds from the sale of the trust preferred securities were used by the trust to purchase an equivalent amount of subordinated debentures from Heartland. The junior subordinated debentures are the sole assets of Heartland Trust and are fully and unconditionally guaranteed by Horizon. The junior subordinated debentures and the trust preferred securities pay interest and dividends on a quarterly basis. The junior subordinated debentures and the securities bear interest at a rate of 90-day LIBOR plus 1.67% (1.91% at December 31, 2014) and mature in December 2036, and securities may be called at any quarterly interest payment date at par. The carrying value was $1.5 million, net of the remaining purchase discount, at December 31, 2014. | |
The Trust Preferred Capital Securities, subject to certain limitations, are included in Tier 1 Capital for regulatory purposes. Dividends on the Trust Preferred Capital Securities are recorded as interest expense. |
Employee_Stock_Ownership_Plan
Employee Stock Ownership Plan | 12 Months Ended |
Dec. 31, 2014 | |
Text Block [Abstract] | |
Employee Stock Ownership Plan | Note 15 – Employee Stock Ownership Plan |
Effective January 1, 2007, Horizon converted its stock bonus plan to an employee stock ownership plan (“ESOP”). Prior to that date, Horizon maintained an employee stock bonus plan that covered substantially all employees. The stock bonus plan was noncontributory, and Horizon made matching contributions of amounts contributed by the employees to the Employee Thrift Plan and discretionary contributions. Prior to the establishment of the employee stock bonus plan, Horizon maintained an ESOP that was terminated in 1999. The prior ESOP accounts of active employees and the discretionary accounts of active employees remain in the new ESOP. The Matching contribution accounts under the Stock Bonus Plan were transferred to the Horizon Bancorp Employees’ Thrift Plan. | |
The ESOP exists for the benefit of substantially all employees. Contributions to the ESOP are by Horizon and are determined by the Board of Directors at their discretion. The contributions may be made in the form of cash or common stock. Shares are allocated among participants each December 31 on the basis of each participant’s eligible compensation to total eligible compensation. Eligible compensation is limited to $260,000 for each participant. Dividends on shares held by the plan, at the discretion of each participant, may be distributed to an individual participant or left in the plan to purchase additional shares. | |
Total cash contributions and expense recorded for the ESOP was $400,000 in 2014, $475,000 in 2013 and $475,000 in 2012. | |
The ESOP, which is not leveraged, owns a total of 800,339 shares of Horizon’s stock or 8.7% of the outstanding shares. |
Employee_Thrift_Plan
Employee Thrift Plan | 12 Months Ended |
Dec. 31, 2014 | |
Text Block [Abstract] | |
Employee Thrift Plan | Note 16 – Employee Thrift Plan |
The Employee Thrift Plan (“Plan”) provides that all employees of Horizon with the requisite hours of service are eligible for the Plan. The Plan permits voluntary employee contributions and Horizon may make discretionary matching and profit sharing contributions. Each eligible employee is vested according to a schedule based upon years of service. Employee voluntary contributions are vested at all times. The Bank’s expense related to the Plan totaled approximately $633,000 in 2014, $545,000 in 2013 and $566,000 in 2012. | |
The Plan owns a total of 313,804 shares of Horizon’s stock or 3.4% of the outstanding shares. |
Income_Tax
Income Tax | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Tax | Note 17 – Income Tax | ||||||||||||
December 31 | December 31 | December 31 | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax expense | |||||||||||||
Currently payable | |||||||||||||
Federal | $ | 4,710 | $ | 3,900 | $ | 5,582 | |||||||
State | (149 | ) | (88 | ) | 120 | ||||||||
Deferred | 1,594 | 3,236 | 2,744 | ||||||||||
Total income tax expense | $ | 6,155 | $ | 7,048 | $ | 8,446 | |||||||
Reconciliation of federal statutory to actual tax expense | |||||||||||||
Federal statutory income tax at 35% | $ | 8,488 | $ | 9,424 | $ | 9,800 | |||||||
Tax exempt interest | (1,628 | ) | (1,517 | ) | (1,419 | ) | |||||||
Tax exempt income | (366 | ) | (362 | ) | (359 | ) | |||||||
Other tax exempt income | (309 | ) | (342 | ) | — | ||||||||
Nondeductible and other | (30 | ) | (176 | ) | (177 | ) | |||||||
Effect of state income taxes | — | 21 | 601 | ||||||||||
Actual tax expense | $ | 6,155 | $ | 7,048 | $ | 8,446 | |||||||
December 31 | December 31 | ||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Allowance for loan losses | $ | 5,680 | $ | 5,677 | |||||||||
Net operating loss | 3,509 | 2,977 | |||||||||||
Director and employee benefits | 1,953 | 1,828 | |||||||||||
Unrealized loss on AFS securities and fair value hedge | 588 | 931 | |||||||||||
Other | 596 | 537 | |||||||||||
Total assets | 12,326 | 11,950 | |||||||||||
Liabilities | |||||||||||||
Depreciation | (1,563 | ) | (1,424 | ) | |||||||||
Difference in expense recognition | — | (368 | ) | ||||||||||
State tax | (126 | ) | (236 | ) | |||||||||
Federal Home Loan Bank stock dividends | (200 | ) | (295 | ) | |||||||||
Difference in basis of intangible assets | (2,839 | ) | (2,189 | ) | |||||||||
FHLB Penalty | (283 | ) | (508 | ) | |||||||||
Other | (1,303 | ) | (1,188 | ) | |||||||||
Total liabilities | (6,314 | ) | (6,208 | ) | |||||||||
Net deferred tax asset | $ | 6,012 | $ | 5,742 | |||||||||
As of December 31, 2014, the Company had approximately $10.9 million of state tax loss carryforward available to offset future franchise taxable income. Also, at December 31, 2014, the Company had approximately $7.6 million of federal loss carryforward available to offset future federal income tax. The state loss carryforward begins to expire in 2014. The federal loss carryforward expires in 2029. Due to these losses being incurred by Heartland and Summit prior to the acquisitions by Horizon, the annual losses which can be used are subject to an annual limitation. Management believes that the Company will be able to utilize the benefits recorded for both state and federal loss carryforwards within the allotted time periods. | |||||||||||||
The Company files income tax returns in the U.S. federal jurisdiction. With a few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2011. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Equity [Abstract] | |||||||||
Accumulated Other Comprehensive Income (Loss) | Note 18 – Accumulated Other Comprehensive Income (Loss) | ||||||||
The components of accumulated other comprehensive income (loss) included in capital are as follows: | |||||||||
December 31 | December 31 | ||||||||
2014 | 2013 | ||||||||
Unrealized gain on securities available for sale | $ | 4,018 | $ | 164 | |||||
Unamortized gain on securities held to maturity, previously transferred from AFS | 1,658 | — | |||||||
Unrealized loss on derivative instruments | (3,337 | ) | (2,826 | ) | |||||
Tax effect | (818 | ) | 933 | ||||||
Total accumulated other comprehensive income (loss) | $ | 1,521 | $ | (1,729 | ) | ||||
Commitments_OffBalance_Sheet_R
Commitments, Off-Balance Sheet Risk and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Off-Balance Sheet Risk and Contingencies | Note 19 – Commitments, Off-Balance Sheet Risk and Contingencies |
Because of the nature of its activities, Horizon is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company. | |
The Bank was required to have approximately $2.3 million of cash on hand or on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing balance requirements at December 31, 2014. These balances are included in cash and cash equivalents and do not earn interest. | |
The Bank is a party to financial instruments with off-balance sheet risk in the ordinary course of business to meet financing needs of its customers. These financial instruments include commitments to make loans and standby letters of credit. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to make loans and standby letters of credit is represented by the contractual amount of those instruments. The Bank follows the same credit policy to make such commitments as is followed for those loans recorded in the financial statements. | |
At December 31, 2014 and 2013, commitments to make loans amounted to approximately $408.6 million and $519.7 million and commitments under outstanding standby letters of credit amounted to approximately $3.9 million and $1.3 million. Since many commitments to make loans and standby letters of credit expire without being used, the amount does not necessarily represent future cash advances. No losses are anticipated as a result of these transactions. Collateral obtained upon exercise of the commitment is determined using management’s credit evaluation. |
Regulatory_Capital
Regulatory Capital | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||
Regulatory Capital | Note 20 – Regulatory Capital | ||||||||||||||||||||||||
Horizon and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies and are assigned to a capital category. The assigned capital category is largely determined by three ratios that are calculated according to the regulations: total risk adjusted capital, Tier I capital and Tier I leverage ratios. The ratios are intended to measure capital relative to assets and credit risk associated with those assets and off-balance sheet exposures of the entity. The capital category assigned to an entity can also be affected by qualitative judgments made by regulatory agencies about the risk inherent in the entity’s activities that are not part of the calculated ratios. Furthermore, the regulators for the Company and the Bank could require adjustments to regulator capital not reflected in these financial statements. | |||||||||||||||||||||||||
There are five capital categories defined in the regulations, ranging from well capitalized to critically undercapitalized. Classification of a bank in any of the undercapitalized categories can result in actions by regulators that could have a material effect on a bank’s operations. At December 31, 2014 and 2013, Horizon and the Bank were categorized as well capitalized and met all subject capital adequacy requirements. | |||||||||||||||||||||||||
For Capital1 | For Well1 | ||||||||||||||||||||||||
Actual | Adequacy Purposes | Capitalized Purposes | |||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Total capital1 (to risk-weighted assets) | |||||||||||||||||||||||||
Consolidated | $ | 212,276 | 14.48 | % | $ | 117,280 | 8 | % | N/A | N/A | |||||||||||||||
Bank | 192,604 | 13.08 | % | 117,801 | 8 | % | $ | 147,251 | 10 | % | |||||||||||||||
Tier 1 capital1 (to risk-weighted assets) | |||||||||||||||||||||||||
Consolidated | 195,775 | 13.35 | % | 58,659 | 4 | % | N/A | N/A | |||||||||||||||||
Bank | 176,103 | 11.96 | % | 58,897 | 4 | % | 88,346 | 6 | % | ||||||||||||||||
Tier 1 capital1 (to average assets) | |||||||||||||||||||||||||
Consolidated | 195,775 | 9.76 | % | 80,236 | 4 | % | N/A | N/A | |||||||||||||||||
Bank | 176,103 | 8.8 | % | 80,047 | 4 | % | 100,059 | 5 | % | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Total capital1 (to risk-weighted assets) | |||||||||||||||||||||||||
Consolidated | $ | 192,904 | 16.33 | % | $ | 94,503 | 8 | % | N/A | N/A | |||||||||||||||
Bank | 173,634 | 14.67 | % | 94,688 | 8 | % | $ | 118,360 | 10 | % | |||||||||||||||
Tier 1 capital1 (to risk-weighted assets) | |||||||||||||||||||||||||
Consolidated | 178,115 | 15.08 | % | 47,245 | 4 | % | N/A | N/A | |||||||||||||||||
Bank | 158,827 | 13.42 | % | 47,340 | 4 | % | 71,011 | 6 | % | ||||||||||||||||
Tier 1 capital1 (to average assets) | |||||||||||||||||||||||||
Consolidated | 178,115 | 10.28 | % | 69,305 | 4 | % | N/A | N/A | |||||||||||||||||
Bank | 158,827 | 9.18 | % | 69,206 | 4 | % | 86,507 | 5 | % | ||||||||||||||||
1 | As defined by regulatory agencies |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Share-Based Compensation | Note 21 – Share-Based Compensation | ||||||||||||||||
On January 21, 2003, the Board of Directors adopted the Horizon Bancorp 2003 Omnibus Equity Incentive Plan (“2003 Plan”), which was approved by stockholders on May 8, 2003. Under the 2003 Plan, Horizon could issue up to 337,500 common shares, plus the number of shares that are tendered to or withheld by Horizon in connection with the exercise of options plus that number of shares that are purchased by Horizon with the cash proceeds received upon option exercises. The 2003 Plan limited the number of shares available to 337,500 for incentive stock options and to 168,750 for the grant of non-option awards. The shares available for issuance under the 2003 Plan could be divided among the various types of awards and among the participants as the Compensation Committee (“Committee”) determines. The Committee was authorized to grant any type of award to a participant that was consistent with the provisions of the 2003 Plan. Awards could consist of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, performance units, performance shares or any combination of these awards. The Committee determined the provisions, terms and conditions of each award. The restricted shares vest over a period of time established by the Committee at the time of each grant. Holders of restricted shares receive dividends and may vote the shares. The restricted shares are recorded at fair market value (on the date granted) as a separate component of stockholders’ equity. The cost of these shares is being amortized against earnings using the straight-line method over the vesting period. The options shares granted under the 2003 plan vest at a rate designated per the individual agreements. The restricted shares granted under the 2003 Plan vest at the end of each grant’s vesting period. On March 8, 2010, the Board of Directors adopted, and on May 6, 2010, the stockholders approved, an amendment to the 2003 Omnibus Equity Incentive Plan making an additional 393,750 common shares available for issuance. | |||||||||||||||||
A summary of option activity under the 2003 Plan as of December 31, 2014, and changes during the year then ended, is presented below: | |||||||||||||||||
Weighted- | |||||||||||||||||
Average | |||||||||||||||||
Weighted- | Remaining | Aggregate | |||||||||||||||
Average | Contractual | Intrinsic | |||||||||||||||
Shares | Exercise Price | Term | Value | ||||||||||||||
Outstanding, beginning of year | 91,447 | $ | 11.29 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (11,250 | ) | 10.84 | ||||||||||||||
Forfeited | (2,250 | ) | 11.6 | ||||||||||||||
Outstanding, end of year | 77,947 | 11.35 | 5.19 | $ | 1,152,901 | ||||||||||||
Exercisable, end of year | 59,215 | 11.23 | 4.8 | 882,658 | |||||||||||||
On June 18, 2013, the Board of Directors adopted the Horizon Bancorp 2013 Omnibus Equity Incentive Plan (“2013 Plan”), which was approved by the Company’s shareholders on May 8, 2014. Under the 2013 Plan, Horizon may issue up to 691,700 common shares, plus the number of shares that are tendered to or withheld by Horizon in connection with the exercise of options plus that number of shares that are purchased by Horizon with the cash proceeds received upon option exercises. The 2013 Plan limits the number of shares available to 100,000 for incentive stock options and to 400,000 for the grant of non-option awards. The shares available for issuance under the 2013 Plan may be divided among the various types of awards and among the participants as the Committee determines. The Committee is authorized to grant any type of award to a participant that is consistent with the provisions of the 2013 Plan. Awards may consist of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, performance units, performance shares or any combination of these awards. The Committee determines the provisions, terms and conditions of each award. The restricted shares vest over a period of time established by the Committee at the time of each grant. Holders of restricted shares receive dividends and may vote the shares. The restricted shares are recorded at fair market value (on the date granted) as a separate component of stockholders’ equity. The cost of these shares is being amortized against earnings using the straight-line method over the vesting period. The options shares granted under the 2013 Plan vest at a rate designated per the individual agreements. The restricted shares granted under the 2013 Plan vest at the end of each grant’s vesting period. | |||||||||||||||||
The fair value of options granted is estimated on the date of the grant using an option-pricing model with the following weighted-average assumptions: | |||||||||||||||||
December 31 | 2014 | 2013 | 2012 | ||||||||||||||
Dividend yields | 2.01 | % | 1.98 | % | 2.56 | % | |||||||||||
Volatility factors of expected market price of common stock | 29.54 | % | 29.75 | % | 29.47 | % | |||||||||||
Risk-free interest rates | 2.66 | % | 2.16 | % | 1.84 | % | |||||||||||
Expected life of options | 8 years | 8 years | 8 years | ||||||||||||||
A summary of option activity under the 2013 Plan as of December 31, 2014, and changes during the year then ended, is presented below: | |||||||||||||||||
Weighted- | |||||||||||||||||
Average | |||||||||||||||||
Weighted- | Remaining | Aggregate | |||||||||||||||
Average | Contractual | Intrinsic | |||||||||||||||
Shares | Exercise Price | Term | Value | ||||||||||||||
Outstanding, beginning of year | 46,888 | $ | 20.27 | ||||||||||||||
Granted | 40,259 | 22.36 | |||||||||||||||
Exercised | — | — | |||||||||||||||
Forfeited | (3,000 | ) | 21.12 | ||||||||||||||
Outstanding, end of year | 87,147 | 21.24 | 8.84 | $ | 412,000 | ||||||||||||
Exercisable, end of year | 14,496 | 20.23 | 8.46 | 85,728 | |||||||||||||
The weighted average grant-date fair value of options granted during the year 2014, 2013 and 2012 was $6.50, $5.74 and $3.25. | |||||||||||||||||
A summary of the status of Horizon’s non-vested, restricted and performance shares as of December 31, 2014 is presented below: | |||||||||||||||||
Weighted | |||||||||||||||||
Average | |||||||||||||||||
Grant Date | |||||||||||||||||
Shares | Fair Value | ||||||||||||||||
Non-vested beginning of year | 85,875 | $ | 14.17 | ||||||||||||||
Vested | — | ||||||||||||||||
Granted | 9,007 | 22.2 | |||||||||||||||
Forfeited | (10,125 | ) | 12.88 | ||||||||||||||
Non-vested, end of year | 84,757 | 15.18 | |||||||||||||||
Grants vest at the end of three, four or five years of continuous employment. | |||||||||||||||||
Total compensation cost recognized in the income statement for option-based payment arrangements during 2014 was $203,000 and the related tax benefit recognized was approximately $71,000. Total compensation cost recognized in the income statement for option-based payment arrangements during 2013 and 2012 was $48,000 and $33,000 and the related tax benefit recognized was $19,000 and $13,000, respectively. | |||||||||||||||||
Total compensation cost recognized in the income statement for restricted share based payment arrangements during 2014, 2013 and 2012 was $363,000, $288,000, and $187,000. The recognized tax benefit related thereto was approximately $127,000, $115,000, and $75,000 for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||
Cash received from option exercise under all share-based payment arrangements for the years ended December 31, 2014, 2013 and 2012 was $122,000, $136,000, and $195,000. The actual tax benefit realized for the tax deductions from option exercise of the share-based payment arrangements totaled $43,000, $58,000, and $30,000, for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||
As of December 31, 2014, there was $903,000 of total unrecognized compensation cost related to all non-vested share-based compensation arrangements granted under all of the plans. That cost is expected to be recognized over a weighted-average period of 1.5 years. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||
Derivative Financial Instruments | Note 22 – Derivative Financial Instruments | ||||||||||||||
Cash Flow Hedges | |||||||||||||||
As a strategy to maintain acceptable levels of exposure to the risk of changes in future cash flow due to interest rate fluctuations, the Company entered into interest rate swap agreements for a portion of its floating rate debt. The agreements provide for the Company to receive interest from the counterparty at three month LIBOR and to pay interest to the counterparty at a weighted average fixed rate of 6.14% on a notional amount of $30.5 million at December 31, 2014 and $30.5 million at December 31, 2013. Under the agreements, the Company pays or receives the net interest amount monthly, with the monthly settlements included in interest expense. | |||||||||||||||
Management has designated the interest rate swap agreement as a cash flow hedging instrument. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. At December 31, 2014, the Company’s cash flow hedge was effective and is not expected to have a significant impact on the Company’s net income over the next 12 months. | |||||||||||||||
Fair Value Hedges | |||||||||||||||
Fair value hedges are intended to reduce the interest rate risk associated with the underlying hedged item. The Company enters into fixed rate loan agreements as part of its lending policy. To mitigate the risk of changes in fair value based on fluctuations in interest rates, the Company has entered into interest rate swap agreements on individual loans, converting the fixed rate loans to a variable rate. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in current earnings. At December 31, 2014, the Company’s fair value hedges were effective and are not expected to have a significant impact on the Company’s net income over the next 12 months. | |||||||||||||||
The change in fair value of both the hedge instruments and the underlying loan agreements are recorded as gains or losses in interest income. The fair value hedges are considered to be highly effective and any hedge ineffectiveness was deemed not material. The notional amounts of the loan agreements being hedged were $102.7 million at December 31, 2014 and $95.3 million at December 31, 2013. | |||||||||||||||
Other Derivative Instruments | |||||||||||||||
The Company enters into non-hedging derivatives in the form of mortgage loan forward sale commitments with investors and commitments to originate mortgage loans as part of its mortgage banking business. At December 31, 2014, the Company’s fair value of these derivatives were recorded and over the next 12 months are not expected to have a significant impact on the Company’s net income. | |||||||||||||||
The change in fair value of both the forward sale commitments and commitments to originate mortgage loans were recorded and the net gains or losses included in the Company’s gain on sale of loans. | |||||||||||||||
The following tables summarize the fair value of derivative financial instruments utilized by Horizon Bancorp: | |||||||||||||||
Asset Derivative | Liability Derivatives | ||||||||||||||
December 31, 2014 | December 31, 2014 | ||||||||||||||
Derivatives designated as hedging instruments (Unaudited) | Balance Sheet | Fair | Balance Sheet | Fair Value | |||||||||||
Location | Value | Location | |||||||||||||
Interest rate contracts | Loans | $ | — | Other liabilities | $ | 1,208 | |||||||||
Interest rate contracts | Other Assets | 1,208 | Other liabilities | 3,339 | |||||||||||
Total derivatives designated as hedging instruments | 1,208 | 4,547 | |||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||
Mortgage loan contracts | Other assets | 447 | Other liabilities | — | |||||||||||
Total derivatives not designated as hedging instruments | 447 | — | |||||||||||||
Total derivatives | $ | 1,655 | $ | 4,547 | |||||||||||
Asset Derivative | Liability Derivatives | ||||||||||||||
December 31, 2013 | December 31, 2013 | ||||||||||||||
Derivatives designated as hedging instruments (Unaudited) | Balance Sheet | Fair Value | Balance Sheet | Fair Value | |||||||||||
Location | Location | ||||||||||||||
Interest rate contracts | Loans | $ | 7 | Other liabilities | $ | (53 | ) | ||||||||
Interest rate contracts | Other Assets | (60 | ) | Other liabilities | 2,826 | ||||||||||
Total derivatives designated as hedging instruments | (53 | ) | 2,773 | ||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||
Mortgage loan contracts | Other assets | 212 | Other liabilities | 22 | |||||||||||
Total derivatives not designated as hedging instruments | 212 | 22 | |||||||||||||
Total derivatives | $ | 159 | $ | 2,795 | |||||||||||
The effect of the derivative instruments on the consolidated statement of income for the twelve month periods ended is as follows: | |||||||||||||||
Amount of Loss Recognized in Other Comprehensive | |||||||||||||||
Income on Derivative (Effective Portion) | |||||||||||||||
Derivative in cash flow | Years Ended December 31 | ||||||||||||||
hedging relationship | 2014 | 2013 | 2012 | ||||||||||||
Interest rate contracts | $ | (332 | ) | $ | 1,734 | $ | (376 | ) | |||||||
FASB Accounting Standards Codification (“ASC”) Topic 820-10-20 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820-10-55 establishes a fair value hierarchy that emphasizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. | |||||||||||||||
Amount of Gain (Loss) Recognized on Derivative | |||||||||||||||
Derivative in fair value | Location of gain (loss) | Years Ended December 31 | |||||||||||||
hedging relationship | recognized on derivative | 2014 | 2013 | 2012 | |||||||||||
Interest rate contracts | Interest income - loans | $ | 1,261 | $ | (2,267 | ) | $ | 28 | |||||||
Interest rate contracts | Interest income - loans | (1,261 | ) | 2,267 | (28 | ) | |||||||||
Total | $ | — | $ | — | $ | — | |||||||||
Amount of Gain (Loss) Recognized on Derivative | |||||||||||||||
Derivative not designated | Location of gain (loss) | Years Ended December 31 | |||||||||||||
as hedging relationship | recognized on derivative | 2014 | 2013 | 2012 | |||||||||||
Mortgage contracts | Other income - gain on sale of loans | $ | 256 | $ | (667 | ) | $ | 196 |
Disclosures_About_Fair_Value_o
Disclosures About Fair Value of Assets and Liabilities | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Disclosures About Fair Value of Assets and Liabilities | Note 23 – Disclosures about fair value of assets and liabilities | ||||||||||||||||
The Fair Value Measurements topic of the FASB ASC defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. There are three levels of inputs that may be used to measure fair value: | |||||||||||||||||
Level 1 | Quoted prices in active markets for identical assets or liabilities | ||||||||||||||||
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities | ||||||||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities | ||||||||||||||||
Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying consolidated financial statements, as well as the general classification of such instruments pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the period ended December 31, 2014. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. | |||||||||||||||||
Available for sale securities | |||||||||||||||||
When quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Level 2 securities include U.S. Treasury and federal agency securities, state and municipal securities, federal agency mortgage obligations and mortgage-backed pools, private-label mortgage-backed pools and corporate notes. Level 2 securities are valued by a third party pricing service commonly used in the banking industry utilizing observable inputs. Observable inputs include dealer quotes, market spreads, cash flow analysis, the U.S. Treasury yield curve, trade execution data, market consensus prepayment spreads and available credit information and the bond’s terms and conditions. The pricing provider utilizes evaluated pricing models that vary based on asset class. These models incorporate available market information including quoted prices of securities with similar characteristics and, because many fixed-income securities do not trade on a daily basis, apply available information through processes such as benchmark curves, benchmarking of like securities, sector grouping, and matrix pricing. In addition, model processes, such as an option adjusted spread model is used to develop prepayment and interest rate scenarios for securities with prepayment features. | |||||||||||||||||
Hedged loans | |||||||||||||||||
Certain fixed rate loans have been converted to variable rate loans by entering into interest rate swap agreements. The fair value of those fixed rate loans is based on discounting the estimated cash flows using interest rates determined by the respective interest rate swap agreement. Loans are classified within Level 2 of the valuation hierarchy based on the unobservable inputs used. | |||||||||||||||||
Interest rate swap agreements | |||||||||||||||||
The fair value of the Company’s interest rate swap agreements is estimated by a third party using inputs that are primarily unobservable including a yield curve, adjusted for liquidity and credit risk, contracted terms and discounted cash flow analysis, and therefore, are classified within Level 2 of the valuation hierarchy. | |||||||||||||||||
The following table presents the fair value measurements of assets and liabilities recognized in the accompanying financial statements measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at the following: | |||||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
December 31, 2014 | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
U.S. Treasury and federal agencies | $ | 26,823 | $ | — | $ | 26,823 | $ | — | |||||||||
State and municipal | 47,952 | — | 47,952 | — | |||||||||||||
Federal agency collateralized mortgage obligations | 122,860 | — | 122,860 | — | |||||||||||||
Federal agency mortgage-backed pools | 125,395 | — | 125,395 | — | |||||||||||||
Private labeled mortgage-backed pools | 689 | — | 689 | — | |||||||||||||
Corporate notes | 45 | — | 45 | — | |||||||||||||
Total available-for-sale securities | 323,764 | — | 323,764 | — | |||||||||||||
Hedged loans | 101,445 | — | 101,445 | — | |||||||||||||
Forward sale commitments | 447 | — | 447 | — | |||||||||||||
Interest rate swap agreements | (4,546 | ) | — | (4,546 | ) | — | |||||||||||
Commitments to originate loans | — | — | — | — | |||||||||||||
December 31, 2013 | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
U.S. Treasury and federal agencies | $ | 43,134 | $ | — | $ | 43,134 | $ | — | |||||||||
State and municipal | 177,898 | — | 177,898 | — | |||||||||||||
Federal agency collateralized mortgage obligations | 114,706 | — | 114,706 | — | |||||||||||||
Federal agency mortgage-backed pools | 170,894 | — | 170,894 | — | |||||||||||||
Private labeled mortgage-backed pools | 1,226 | — | 1,226 | — | |||||||||||||
Corporate notes | 733 | — | 733 | — | |||||||||||||
Total available-for-sale securities | 508,591 | — | 508,591 | — | |||||||||||||
Hedged loans | 95,372 | — | 95,372 | — | |||||||||||||
Forward sale commitments | 212 | — | 212 | — | |||||||||||||
Interest rate swap agreements | (2,773 | ) | — | (2,773 | ) | — | |||||||||||
Commitments to originate loans | (22 | ) | — | (22 | ) | — | |||||||||||
Realized gains and losses included in net income for the periods are reported in the consolidated statements of income as follows: | |||||||||||||||||
Years Ended December 31 | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Non Interest Income | |||||||||||||||||
Total gains and losses from: | |||||||||||||||||
Hedged loans | $ | 1,261 | $ | (2,267 | ) | $ | 28 | ||||||||||
Fair value interest rate swap agreements | (1,261 | ) | 2,267 | (28 | ) | ||||||||||||
Derivative loan commitments | 256 | (667 | ) | 196 | |||||||||||||
$ | 256 | $ | (667 | ) | $ | 196 | |||||||||||
Certain other assets are measured at fair value on a nonrecurring basis in the ordinary course of business and are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment): | |||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
December 31, 2014 | |||||||||||||||||
Impaired loans | $ | 9,464 | $ | — | $ | — | $ | 9,464 | |||||||||
Mortgage servicing rights | 7,642 | — | — | 7,642 | |||||||||||||
December 31, 2013 | |||||||||||||||||
Impaired loans | $ | 6,114 | $ | — | $ | — | $ | 6,114 | |||||||||
Mortgage servicing rights | 7,039 | — | — | 7,039 | |||||||||||||
Impaired (collateral dependent): Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral-dependent loans. | |||||||||||||||||
If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. | |||||||||||||||||
Impaired loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method. | |||||||||||||||||
Mortgage Servicing Rights (MSRs): MSRs do not trade in an active market with readily observable prices. Accordingly, the fair value of these assets is classified as Level 3. The Company determines the fair value of MSRs using an income approach model based upon the Company’s month-end interest rate curve and prepayment assumptions. The model utilizes assumptions to estimate future net servicing income cash flows, including estimates of time decay, payoffs and changes in valuation inputs and assumptions. The Company reviews the valuation assumptions against this market data for reasonableness and adjusts the assumptions if deemed appropriate. The carrying amount of the MSRs were reduced by $338,000 in 2014 and $389,000 in 2013 for the fair value. | |||||||||||||||||
The following table presents qualitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at December 31, 2014. | |||||||||||||||||
Fair Value at | Valuation | Unobservable Inputs | Range (Weighted | ||||||||||||||
December 31, 2014 | Technique | Average) | |||||||||||||||
Impaired loans | $ | 9,464 | Collateral based measurement | Discount to reflect current market | 10% -15% (12%) | ||||||||||||
conditions and ultimate | |||||||||||||||||
collectability | |||||||||||||||||
Mortgage servicing rights | $ | 7,642 | Discounted cashflows | Discount rate, Constant prepayment | 10% -15% (12%), | ||||||||||||
rate, Probably of default | |||||||||||||||||
4% - 7% (4.6%), | |||||||||||||||||
1% - 10% (4.5%) | |||||||||||||||||
Fair Value at | Valuation | Unobservable Inputs | Range (Weighted | ||||||||||||||
December 31, 2013 | Technique | Average) | |||||||||||||||
Impaired loans | $ | 6,114 | Collateral based measurement | Discount to reflect current market | 10% -15% (12%) | ||||||||||||
conditions and ultimate | |||||||||||||||||
collectability | |||||||||||||||||
Mortgage servicing rights | $ | 7,039 | Discounted cashflows | Discount rate, Constant prepayment | 10% - 15% (12%), | ||||||||||||
rate, Probably of default | 4% - 7% (4.6%), | ||||||||||||||||
1% - 10% (4.5%) |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value of Financial Instruments | Note 24 – Fair Value of Financial Instruments | ||||||||||||||||
The estimated fair value amounts of the Company’s financial instruments were determined using available market information, current pricing information applicable to Horizon and various valuation methodologies. Where market quotations were not available, considerable management judgment was involved in the determination of estimated fair values. Therefore, the estimated fair value of financial instruments shown below may not be representative of the amounts at which they could be exchanged in a current or future transaction. Due to the inherent uncertainties of expected cash flows of financial instruments, the use of alternate valuation assumptions and methods could have a significant effect on the estimated fair value amounts. | |||||||||||||||||
The estimated fair values of financial instruments, as shown below, are not intended to reflect the estimated liquidation or market value of Horizon taken as a whole. The disclosed fair value estimates are limited to Horizon’s significant financial instruments at December 31, 2014 and December 31, 2013. These include financial instruments recognized as assets and liabilities on the consolidated balance sheet as well as certain off-balance sheet financial instruments. The estimated fair values shown below do not include any valuation of assets and liabilities which are not financial instruments as defined by the FASB ASC fair value hierarchy. | |||||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instrument: | |||||||||||||||||
Cash and Due from Banks — The carrying amounts approximate fair value. | |||||||||||||||||
Held-to-Maturity Securities — For debt securities held to maturity, fair values are based on quoted market prices or dealer quotes. For those securities where a quoted market price is not available, carrying amount is a reasonable estimate of fair value based upon comparison with similar securities. | |||||||||||||||||
Loans Held for Sale — The carrying amounts approximate fair value. | |||||||||||||||||
Net Loans — The fair value of portfolio 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. The carrying amounts of loans held for sale approximate fair value. | |||||||||||||||||
FHLB and FRB Stock — Fair value of FHLB and FRB stock is based on the price at which it may be resold to the FHLB and FRB. | |||||||||||||||||
Interest Receivable/Payable — The carrying amounts approximate fair value. | |||||||||||||||||
Deposits — The fair value of demand deposits, savings accounts, interest-bearing checking accounts and money market deposits is the amount payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated by discounting the future cash flows using rates currently offered for deposits of similar remaining maturity. | |||||||||||||||||
Borrowings — Rates currently available to Horizon for debt with similar terms and remaining maturities are used to estimate fair values of existing borrowings. | |||||||||||||||||
Subordinated Debentures — Rates currently available for debentures with similar terms and remaining maturities are used to estimate fair values of existing debentures. | |||||||||||||||||
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. Due to the short-term nature of these agreements, carrying amounts approximate fair value. | |||||||||||||||||
The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall. | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Carrying | Quoted Prices | Significant | Significant | ||||||||||||||
Amount | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $ | 43,476 | $ | 43,476 | $ | — | $ | — | |||||||||
Investment securities, held to maturity | 165,767 | — | — | 169,904 | |||||||||||||
Loans held for sale | 6,143 | — | — | 6,143 | |||||||||||||
Loans excluding loan level hedges, net | 1,260,608 | — | — | 1,295,133 | |||||||||||||
Stock in FHLB and FRB | 11,348 | — | 11,348 | — | |||||||||||||
Interest receivable | 8,246 | — | 8,246 | — | |||||||||||||
Liabilities | |||||||||||||||||
Non-interest bearing deposits | $ | 267,667 | $ | 267,667 | $ | — | $ | — | |||||||||
Interest-bearing deposits | 1,214,652 | — | 1,158,912 | — | |||||||||||||
Borrowings | 351,198 | — | 348,597 | — | |||||||||||||
Subordinated debentures | 32,642 | — | 32,669 | — | |||||||||||||
Interest payable | 497 | — | 497 | — | |||||||||||||
December 31, 2013 | |||||||||||||||||
Carrying | Quoted Prices | Significant | Significant | ||||||||||||||
Amount | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $ | 31,721 | $ | 31,721 | $ | — | $ | — | |||||||||
Investment securities, held to maturity | 9,910 | — | — | 9,910 | |||||||||||||
Loans held for sale | 3,281 | — | — | 3,281 | |||||||||||||
Loans excluding loan level hedges, net | 957,464 | — | — | 975,910 | |||||||||||||
Stock in FHLB and FRB | 14,184 | — | 14,184 | — | |||||||||||||
Interest receivable | 7,501 | — | 7,501 | — | |||||||||||||
Liabilities | |||||||||||||||||
Non-interest bearing deposits | $ | 231,096 | $ | 231,096 | $ | — | $ | — | |||||||||
Interest-bearing deposits | 1,060,424 | — | 1,002,980 | — | |||||||||||||
Borrowings | 256,296 | — | 257,093 | — | |||||||||||||
Subordinated debentures | 32,486 | — | 32,528 | — | |||||||||||||
Interest payable | 506 | — | 506 | — |
Business_Combination
Business Combination | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Business Combination | Note 25 – Business Combination |
On February 18, 2015, Horizon entered into an Agreement and Plan of Merger (the “Merger Agreement”) providing for Horizon’s acquisition of Peoples Bancorp, Inc., an Indiana corporation (“Peoples”). Pursuant to the Merger Agreement, Peoples would merge with and into Horizon, with Horizon surviving the merger (the “Merger”), and Peoples Federal Savings Bank of DeKalb County, a federally chartered stock savings bank and wholly-owned subsidiary of Peoples, would merge with and into a wholly-owned subsidiary of Horizon, Horizon Bank, N.A. (“Horizon Bank”), with Horizon Bank as the surviving bank. | |
The boards of directors of each of Horizon and Peoples have approved the Merger and the Merger Agreement. Subject to the approval of the issuance of shares related to the Merger by Horizon shareholders, the Merger by Peoples shareholders, regulatory approvals and other closing conditions, the parties anticipate completing the Merger during the third quarter of 2015. | |
In connection with the Merger, each Peoples shareholder will receive 0.95 shares of Horizon common stock (the “Exchange Ratio”) and $9.75 in cash for each share of Peoples common stock owned by them. Based on Horizon’s February 18, 2015 closing price of $23.02 per share as reported on the NASDAQ Global Select Market, the implied transaction value is estimated at $73.1 million. | |
Subject to certain terms and conditions, the board of directors of Peoples has agreed to recommend the approval and adoption of the Merger Agreement to the Peoples shareholders and will solicit proxies voting in favor of the Merger from Peoples’ shareholders. | |
The Merger Agreement also provides for certain termination rights for both Horizon and Peoples, and further provides that upon termination of the Merger Agreement under certain circumstances, Peoples will be obligated to pay Horizon a termination fee. | |
As of December 31, 2014, Peoples reported total assets of approximately $486.6 million, total deposits of approximately $368.7 million and total loans of approximately $235.1 million. |
Condensed_Financial_Informatio
Condensed Financial Information (Parent Company Only) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Condensed Financial Information (Parent Company Only) | Note 26 – Condensed Financial Information (Parent Company Only) | ||||||||||||
Presented below is condensed financial information as to financial position, results of operations and cash flows of Horizon Bancorp: | |||||||||||||
Condensed Balance Sheets | |||||||||||||
December 31 | December 31 | ||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Total cash and cash equivalents | $ | 19,195 | $ | 16,807 | |||||||||
Investment in Bank | 211,928 | 181,808 | |||||||||||
Other assets | 2,758 | 3,664 | |||||||||||
Total assets | $ | 233,881 | $ | 202,279 | |||||||||
Liabilities | |||||||||||||
Subordinated debentures | $ | 32,642 | $ | 32,486 | |||||||||
Other liabilities | 6,825 | 5,273 | |||||||||||
Stockholders’ Equity | 194,414 | 164,520 | |||||||||||
Total liabilities and stockholders’ equity | $ | 233,881 | $ | 202,279 | |||||||||
Condensed Statements of Income | |||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Operating Income (Expense) | |||||||||||||
Dividend income from Bank | $ | 12,500 | $ | 7,500 | $ | 16,500 | |||||||
Investment income | 12 | 4 | — | ||||||||||
Other income | 17 | 175 | — | ||||||||||
Interest expense | (2,009 | ) | (2,010 | ) | (1,950 | ) | |||||||
Employee benefit expense | (965 | ) | (811 | ) | (695 | ) | |||||||
Other expense | 883 | 646 | (200 | ) | |||||||||
Income Before Undistributed Income of Subsidiaries | 10,438 | 5,504 | 13,655 | ||||||||||
Undistributed Income of Subsidiaries | 6,814 | 13,144 | 4,766 | ||||||||||
Income Before Tax | 17,252 | 18,648 | 18,421 | ||||||||||
Income Tax Benefit | 849 | 1,228 | 1,122 | ||||||||||
Net Income | 18,101 | 19,876 | 19,543 | ||||||||||
Preferred stock dividend | (133 | ) | (370 | ) | (481 | ) | |||||||
Net Income Available to Common Shareholders | $ | 17,968 | $ | 19,506 | $ | 19,062 | |||||||
Condensed Statements of Comprehensive Income | |||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net Income | $ | 18,101 | $ | 19,876 | $ | 19,543 | |||||||
Other Comprehensive Income (Loss) | |||||||||||||
Change in fair value of derivative instruments, net of taxes | (332 | ) | 1,734 | (376 | ) | ||||||||
Unrealized appreciation for the period on held-to-maturity securities, net of taxes | (209 | ) | |||||||||||
Unrealized appreciation (depreciation) on available-for-sale securities, net of taxes | 4,432 | (12,320 | ) | 1,636 | |||||||||
Less: reclassification adjustment for realized gains included in net income, net of taxes | (642 | ) | (244 | ) | 1 | ||||||||
3,249 | (10,830 | ) | 1,259 | ||||||||||
Comprehensive Income | $ | 21,350 | $ | 9,046 | $ | 20,802 | |||||||
Condensed Statements of Cash Flows | |||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Operating Activities | |||||||||||||
Net income | $ | 18,101 | $ | 19,876 | $ | 19,543 | |||||||
Items not requiring (providing) cash | |||||||||||||
Equity in undistributed net income of subsidiaries | (6,814 | ) | (13,144 | ) | (4,766 | ) | |||||||
Change in | |||||||||||||
Income taxes receivable | 434 | (793 | ) | (137 | ) | ||||||||
Share based compensation | 203 | 48 | 33 | ||||||||||
Amortization of unearned compensation | 363 | 288 | 187 | ||||||||||
Issuance of restricted shares | — | — | 115 | ||||||||||
Other assets | 472 | 626 | (176 | ) | |||||||||
Other liabilities | 1,377 | 97 | 1,128 | ||||||||||
Net cash provided by operating activities | 14,136 | 6,998 | 15,927 | ||||||||||
Investing Activities | |||||||||||||
Acquisition of Summit | (7,036 | ) | — | — | |||||||||
Acquisition of Heartland | — | — | (7,248 | ) | |||||||||
Net cash used in investing activities | (7,036 | ) | — | (7,248 | ) | ||||||||
Financing Activities | |||||||||||||
Dividends paid on preferred shares | (133 | ) | (370 | ) | (481 | ) | |||||||
Dividends paid on common shares | (4,744 | ) | (3,655 | ) | (3,047 | ) | |||||||
Exercise of stock options | 165 | 195 | 226 | ||||||||||
Net cash used in financing activities | (4,712 | ) | (3,830 | ) | (3,302 | ) | |||||||
Net Change in Cash and Cash Equivalents | 2,388 | 3,168 | 5,377 | ||||||||||
Cash and Cash Equivalents at Beginning of Year | 16,807 | 13,639 | 8,262 | ||||||||||
Cash and Cash Equivalents at End of Year | $ | 19,195 | $ | 16,807 | $ | 13,639 | |||||||
Quarterly_Results_of_Operation
Quarterly Results of Operations (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Results of Operations (Unaudited) | Note 27 – Quarterly Results of Operations (Unaudited) | ||||||||||||||||
The following is a summary of the quarterly consolidated results of operations: | |||||||||||||||||
Three Months Ended 2014 | March 31 | June 30 | September 30 | December 31 | |||||||||||||
Interest income | $ | 16,467 | $ | 20,122 | $ | 19,851 | $ | 19,765 | |||||||||
Interest expense | 3,195 | 3,334 | 3,451 | 3,242 | |||||||||||||
Net interest income | 13,272 | 16,788 | 16,400 | 16,523 | |||||||||||||
Provision for loan losses | — | 339 | 1,741 | 978 | |||||||||||||
Gain on sale of securities | — | — | 988 | — | |||||||||||||
Net income | 3,417 | 4,778 | 4,958 | 4,948 | |||||||||||||
Net income available to common shareholders | $ | 3,386 | $ | 4,747 | $ | 4,918 | $ | 4,917 | |||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.39 | $ | 0.52 | $ | 0.53 | $ | 0.53 | |||||||||
Diluted | 0.38 | 0.5 | 0.51 | 0.51 | |||||||||||||
Average shares outstanding: | |||||||||||||||||
Basic | 8,630,966 | 9,182,986 | 9,208,707 | 9,212,156 | |||||||||||||
Diluted | 9,021,786 | 9,560,939 | 9,588,332 | 9,628,240 | |||||||||||||
Three Months Ended 2013 | March 31 | June 30 | September 30 | December 31 | |||||||||||||
Interest income | $ | 19,429 | $ | 19,977 | $ | 18,041 | $ | 17,436 | |||||||||
Interest expense | 3,419 | 3,402 | 3,372 | 3,310 | |||||||||||||
Net interest income | 16,010 | 16,575 | 14,669 | 14,126 | |||||||||||||
Provision for loan losses | 2,084 | 729 | 104 | (997 | ) | ||||||||||||
Gain on sale of securities | 368 | — | 6 | — | |||||||||||||
Net income | 5,311 | 5,665 | 4,785 | 4,115 | |||||||||||||
Net income available to common shareholders | $ | 5,165 | $ | 5,569 | $ | 4,719 | $ | 4,052 | |||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.6 | $ | 0.65 | $ | 0.55 | $ | 0.47 | |||||||||
Diluted | 0.58 | 0.62 | 0.52 | 0.45 | |||||||||||||
Average shares outstanding: | |||||||||||||||||
Basic | 8,617,466 | 8,617,466 | 8,618,969 | 8,623,360 | |||||||||||||
Diluted | 8,980,655 | 8,974,103 | 9,019,211 | 9,020,289 |
Nature_of_Operations_and_Summa1
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Nature of Business | Nature of Business — The consolidated financial statements of Horizon Bancorp (“Horizon”) and its wholly owned subsidiaries, Horizon Bank, N.A. (“Bank”) and Horizon Risk Management, Inc., together referred to as “Horizon”, conform to accounting principles generally accepted in the United States of America and reporting practices followed by the banking industry. Horizon Risk Management, Inc. is a captive insurance company incorporated in Nevada and was formed as a wholly owned subsidiary of Horizon. | ||||||||||||
The Bank is a full-service commercial bank offering a broad range of commercial and retail banking and other services incident to banking along with a trust department that offers corporate and individual trust and agency services and investment management services. The Bank maintains 31 full service offices. The Bank has wholly owned direct and indirect subsidiaries: Horizon Investments, Inc. (“Horizon Investments”), Horizon Properties, Inc. (“Horizon Properties”), Horizon Insurance Services, Inc. (“Horizon Insurance”) and Horizon Grantor Trust. Horizon Investments manages the investment portfolio of the Bank. Horizon Properties manages the real estate investment trust. Horizon Insurance is used by the Company’s Wealth Management to sell certain insurance products. Horizon Grantor Trust holds title to certain company owned life insurance policies. Horizon conducts no business except that incident to its ownership of the subsidiaries. | |||||||||||||
Horizon formed Horizon Bancorp Capital Trust II in 2004 (“Trust II”) and Horizon Bancorp Capital Trust III in 2006 (“Trust III”) for the purpose of participating in pooled trust preferred securities offerings. The Company assumed additional debentures as the result of the following acquisitions: Alliance Financial Corporation in 2005, which formed Alliance Financial Statutory Trust I (“Alliance Trust”); American Trust & Savings Bank in 2010, which formed Am Tru Statutory Trust I (“Am Tru Trust”); and Heartland Bancshares, Inc. in 2013, which formed Heartland (IN) Statutory Trust II (“Heartland Trust”). See Note 14 of the Consolidated Financial Statements for further discussion regarding these previously consolidated entities that are now reported separately. The business of Horizon is not seasonal to any material degree. | |||||||||||||
Basis of Reporting | Basis of Reporting — The consolidated financial statements include the accounts of Horizon and subsidiaries. All material inter-company accounts and transactions have been eliminated in consolidation. | ||||||||||||
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||
Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of other real estate owned, goodwill and intangible assets, mortgage servicing rights, other-than-temporary impairments and fair values of financial instruments. | |||||||||||||
Fair Value Measurements | Fair Value Measurements — Horizon uses fair value measurements to record fair value adjustments, to certain assets, and liabilities and to determine fair value disclosures. Horizon has adopted Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures for all applicable financial and nonfinancial assets and liabilities. This accounting guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. This guidance applies only when other guidance requires or permits assets or liabilities to be measured at fair value; it does not expand the use of fair value in any new circumstances. | ||||||||||||
As defined in codification, fair value is the price to sell an asset or transfer a liability in an orderly transaction between market participants. It represents an exit price at the measurement date. Market participants are buyers and sellers, who are independent, knowledgeable, and willing and able to transact in the principal (or most advantageous) market for the asset or liability being measured. Current market conditions, including imbalances between supply and demand, are considered in determining fair value. Horizon values its assets and liabilities in the principal market where it sells the particular asset or | |||||||||||||
transfers the liability with the greatest volume and level of activity. In the absence of a principal market, the valuation is based on the most advantageous market for the asset or liability (i.e., the market where the asset could be sold or the liability transferred at a price that maximizes the amount to be received for the asset or minimizes the amount to be paid to transfer the liability). | |||||||||||||
In measuring the fair value of an asset, Horizon assumes the highest and best use of the asset by a market participant to maximize the value of the asset, and does not consider the intended use of the asset. | |||||||||||||
When measuring the fair value of a liability, Horizon assumes that the nonperformance risk associated with the liability is the same before and after the transfer. Nonperformance risk is the risk that an obligation will not be satisfied and encompasses not only Horizon’s own credit risk (i.e., the risk that Horizon will fail to meet its obligation), but also other risks such as settlement risk. Horizon considers the effect of its own credit risk on the fair value for any period in which fair value is measured. | |||||||||||||
There are three acceptable valuation techniques that can be used to measure fair value: the market approach, the income approach and the cost approach. Selection of the appropriate technique for valuing a particular asset or liability takes into consideration the exit market, the nature of the asset or liability being valued, and how a market participant would value the same asset or liability. Ultimately, determination of the appropriate valuation method requires significant judgment, and sufficient knowledge and expertise are required to apply the valuation techniques. | |||||||||||||
Valuation inputs refer to the assumptions market participants would use in pricing a given asset or liability using one of the three valuation techniques. Inputs can be observable or unobservable. Observable inputs are those assumptions which market participants would use in pricing the particular asset or liability. These inputs are based on market data and are obtained from a source independent of Horizon. Unobservable inputs are assumptions based on Horizon’s own information or estimate of assumptions used by market participants in pricing the asset or liability. Unobservable inputs are based on the best and most current information available on the measurement date. All inputs, whether observable or unobservable, are ranked in accordance with a prescribed fair value hierarchy which gives the highest ranking to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest ranking to unobservable inputs (Level 3). Fair values for assets or liabilities classified as Level 2 are based on one or a combination of the following factors: (i) quoted prices for similar assets; (ii) observable inputs for the asset or liability, such as interest rates or yield curves; or (iii) inputs derived principally from or corroborated by observable market data. The level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company considers an input to be significant if it drives 10% or more of the total fair value of a particular asset or liability. | |||||||||||||
Assets and liabilities are considered to be fair valued on a recurring basis if fair value is measured regularly (i.e., daily, weekly, monthly or quarterly). Recurring valuation occurs at a minimum on the measurement date. Assets and liabilities are considered to be fair valued on a nonrecurring basis if the fair value measurement of the instrument does not necessarily result in a change in the amount recorded on the balance sheet. Generally, nonrecurring valuation is the result of the application of other accounting pronouncements which require assets or liabilities to be assessed for impairment or recorded at the lower of cost or fair value. The fair value of assets or liabilities transferred in or out of Level 3 is measured on the transfer date, with any additional changes in fair value subsequent to the transfer considered to be realized or unrealized gains or losses. | |||||||||||||
Investment Securities Available for Sale | Investment Securities Available for Sale — Horizon designates the majority of its investment portfolio as available for sale based on management’s plans to use such securities for asset and liability management, liquidity and not to hold such securities as long-term investments. Management repositions the portfolio to take advantage of future expected interest rate trends when Horizon’s long-term profitability can be enhanced. Investment securities available for sale and marketable equity securities are carried at estimated fair value and any net unrealized gains/losses (after tax) on these securities are included in accumulated other comprehensive income. Amortization of premiums and accretion of discounts are recorded as interest income from securities. Gains/losses on the disposition of securities available for sale are recognized at the time of the transaction and are determined by the specific identification method. | ||||||||||||
Investment Securities Held to Maturity | Investment Securities Held to Maturity — Includes any security for which Horizon has the positive intent and ability to hold until maturity. These securities are carried at amortized cost. | ||||||||||||
Loans Held for Sale | Loans Held for Sale — Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in noninterest income upon sale of the loan. | ||||||||||||
Interest and Fees on Loans | Interest and Fees on Loans — Interest on commercial, mortgage and installment loans is recognized over the term of the loans based on the principal amount outstanding. When principal or interest is past due 90 days or more, and the loan is not well secured or in the process of collection, or when serious doubt exists as to the collectability of a loan, the accrual of interest is discontinued. Loan origination fees, net of direct loan origination costs, are deferred and recognized over the life of the loan as a yield adjustment. Discounts and premiums on purchased loans are amortized to income using the interest method over the remaining period to contractual maturity, adjusted for anticipated prepayments. | ||||||||||||
Concentrations of Credit Risk | Concentrations of Credit Risk — The Bank grants commercial, real estate, and consumer loans to customers located primarily in Northwest and Central Indiana and Southwest and Central Michigan and provides mortgage warehouse lines to mortgage companies in the United States. Commercial loans make up approximately 50% of the loan portfolio and are secured by both real estate and business assets. These loans are expected to be repaid from cash flows from operations of the businesses. The Bank does not have a concentration in speculative commercial real estate loans. Residential real estate loans make up approximately 18% of the loan portfolio and are secured by residential real estate. Installment loans make up approximately 23% of the loan portfolio and are primarily secured by consumer assets. Mortgage warehouse loans make up approximately 9% of the loan portfolio and are secured by residential real estate. | ||||||||||||
Mortgage Warehouse Loans | Mortgage Warehouse Loans — Horizon’s mortgage warehousing has specific mortgage companies as customers of the Bank. Individual mortgage loans originated by these mortgage companies are funded as a secured borrowing with pledge of collateral under Horizon’s agreement with the mortgage company. Each individual mortgage is assigned to Horizon until the loan is sold to the secondary market by the mortgage company. In addition, Horizon takes possession of each original note and forwards such note to the end investor once the mortgage company has sold the loan. At the time a loan is transferred to the secondary market, the mortgage company repurchases the loan under its option within the agreement. | ||||||||||||
Due to the repurchase feature contained in the agreement, the transaction does not qualify as a sale under ASC 860, Transfers and Servicing and therefore is accounted for as a secured borrowing with pledge of collateral pursuant to the agreement with the mortgage company. When the individual loan is sold to the end investor by the mortgage company, the proceeds from the sale of the loan are received by Horizon and used to pay off the loan balance with Horizon along with any accrued interest and any related fees. The remaining balance from the sale is forwarded to the mortgage company. These individual loans typically are sold by the mortgage company within 30 days and are seldom held more than 90 days. Interest income is accrued during this period and collected at the time each loan is sold. Fee income for each loan sold is collected when the loan is sold and no costs are deferred due to the term between each loan funding and related payoff, which is typically less than 30 days. | |||||||||||||
Based on the agreements with each mortgage company, at any time a mortgage company can repurchase from Horizon its outstanding loan balance on an individual mortgage and regain possession of the original note. Horizon also has the option to request that the mortgage company repurchase an individual mortgage. Should this occur, Horizon would return the original note and reassign the assignment of the mortgage to the mortgage company. Also, in the event that the end investor would not be able to honor the sales commitment and the mortgage company would not be able to repurchase its loan on an individual mortgage, Horizon would be able to exercise its rights under the agreement. | |||||||||||||
Allowance for Loan Losses | Allowance for Loan Losses — An allowance for loan losses is maintained to absorb probable incurred losses inherent in the loan portfolio. The allowance is based on ongoing quarterly assessments of the probable incurred losses inherent in the loan portfolio. The allowance is increased by the provision for credit losses, which is charged against current period operating results and decreased by the amount of charge offs, net of recoveries. Horizon’s methodology for assessing the appropriateness of the allowance consists of several key elements, which include the general allowance, specific allowances for identified problem loans and the qualitative allowance. | ||||||||||||
The general allowance is calculated by applying loss factors to pools of outstanding loans. Loss factors are based on historical loss experience and may be adjusted for significant factors that, in management’s judgment, affect the collectability of the portfolio as of the evaluation date. | |||||||||||||
Specific allowances are established in cases where management has identified conditions or circumstances related to a credit that management believes indicate the probability that a loss will be incurred in excess of the amount determined by the application of the formula allowance. | |||||||||||||
The qualitative allowance is based upon management’s evaluation of various conditions, the effects of which are not directly measured in the determination of the general and specific allowances. The evaluation of the inherent loss with respect to these conditions is subject to a higher degree of uncertainty because they are not identified with specific credits. The conditions evaluated in connection with the qualitative allowance may include factors such as local, regional and national economic conditions and forecasts, concentrations of credit and changes in the composition of the portfolio. | |||||||||||||
Loan Impairment | Loan Impairment — When analysis determines a borrower’s operating results and financial condition are not adequate to meet debt service requirements, the loan is evaluated for impairment. Often this is associated with a delay or shortfall in payments of 30 days or more. Loans are generally placed on non-accrual status when 90 days or more past due. These loans are also often considered impaired. Impaired loans or portions thereof, are charged-off when deemed uncollectible. This typically occurs when the loan is 90 or more days past due. | ||||||||||||
Loans are considered impaired if the borrower does not exhibit the ability to pay or the full principal or interest payments are not expected or made in accordance with the original terms of the loan. Impaired loans are measured and carried at the lower of cost or the present value of expected future cash flows discounted at the loan’s effective interest rate, at the loan’s observable market price or at the fair value of the collateral if the loan is collateral dependent. | |||||||||||||
Smaller balance homogenous loans are evaluated for impairment in the aggregate. Such loans include residential first mortgage loans secured by one to four family residences, residential construction loans and automobile, home equity and second mortgages. Commercial loans and mortgage loans secured by other properties are evaluated individually for impairment. | |||||||||||||
Loans Acquired in Business Combinations | Loans Acquired in Business Combinations — Loans acquired in business combinations with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of purchase dates may include information such as past-due and nonaccrual status, borrower credit scores and recent loans to value percentages. Acquired credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (FASB ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loans. Accordingly, allowances for credit losses related to these loans are not carried over and recorded at the acquisition dates. Loans acquired through business combinations that do not meet the specific criteria of FASB ASC 310-30, but for which a discount is attributable, at least in part to the credit quality, are also accounted for under this guidance. As a result, related discounts are recognized subsequently through accretion based on the expected cash flows of the acquired loans. For purposes of applying FASB ASC 310-30, loans acquired in business combinations are aggregated into pools of loans with common risk characteristics. | ||||||||||||
The expected cash flows of the acquired loan pools in excess of the fair values recorded is referred to as the accretable yield and is recognized in interest income over the remaining estimated lives of the loan pools. The Company continues to evaluate the fair value of the loans including cash flows expected to be collected. Increases in the Company’s cash flow expectation are recognized as increases to the accretable yield while decreases are recognized as impairments through the allowance for loan losses. | |||||||||||||
Premises and Equipment | Premises and Equipment — Buildings and major improvements are capitalized and depreciated using primarily the straight-line method with useful lives ranging from 3 to 40 years. Furniture and equipment are capitalized and depreciated using primarily the straight-line method with useful lives ranging from 2 to 20 years. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains and losses on disposition are included in current operations. | ||||||||||||
Federal Reserve and Federal Home Loan Bank of Indianapolis (FHLBI) Stock | Federal Reserve and Federal Home Loan Bank of Indianapolis (FHLBI) Stock — The stock is a required investment for institutions that are members of the Federal Reserve Bank (“FRB”) and Federal Home Loan Bank (“FHLB”) systems. The required investment in the common stock is based on a predetermined formula. | ||||||||||||
Mortgage Servicing Rights | Mortgage Servicing Rights —Mortgage servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance (ASC 860-50), servicing rights resulting from the sale or securitization of loans originated by the Company are initially measured at fair value at the date of transfer. Amortized mortgage servicing rights include commercial mortgage servicing rights. Under the amortization method, servicing rights are amortized in proportion to and over the period of estimated net servicing income. The amortized assets are assessed for impairment or increased obligation based on fair value at each reporting date. | ||||||||||||
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. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change, and may have an adverse impact on the value of the mortgage servicing right and may result in a reduction to noninterest income. | |||||||||||||
Each class of separately recognized servicing assets subsequently measured using the amortization method are evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Changes in valuation allowances are reported with mortgage servicing income net of impairment on the income statement. Fair value in excess of the carrying amount of servicing assets for that stratum is not recognized. | |||||||||||||
Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. | |||||||||||||
Intangible Assets | Intangible Assets — Goodwill is tested annually for impairment. At December 31, 2014, Horizon had core deposit intangibles of $4.0 million subject to amortization and $28.2 million of goodwill, which is not subject to amortization. Goodwill arising from business combinations represents the value attributable to unidentifiable intangible assets in the business acquired. Horizon’s goodwill relates to the value inherent in the banking industry and that value is dependent upon the ability of Horizon to provide quality, cost effective banking services in a competitive marketplace. The goodwill value is supported by revenue that is in part driven by the volume of business transacted. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Goodwill totaled $28.2 million at December 31, 2014 and $19.7 million at December 31, 2013. A large majority of the goodwill relates to the acquisitions of Heartland and Summit. | ||||||||||||
Income Taxes | Income Taxes —The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. | ||||||||||||
Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. | |||||||||||||
The Company recognizes interest and penalties on income taxes as a component of income tax expense. | |||||||||||||
The Company files consolidated income tax returns with its subsidiaries. | |||||||||||||
Trust Assets and Income | Trust Assets and Income — Property, other than cash deposits, held in a fiduciary or agency capacity is not included in the consolidated balance sheets since such property is not owned by Horizon. | ||||||||||||
Earnings per Common Share | Earnings per Common Share — Basic earnings per share is computed by dividing net income available to common shareholders (net income less dividend requirements for preferred stock and accretion of preferred stock discount) by the weighted-average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The following table shows computation of basic and diluted earnings per share. | ||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic earnings per share | |||||||||||||
Net income | $ | 18,101 | $ | 19,876 | $ | 19,543 | |||||||
Less: Preferred stock dividends | 133 | 370 | 481 | ||||||||||
Net income available to common shareholders | $ | 17,968 | $ | 19,506 | $ | 19,062 | |||||||
Weighted average common shares outstanding | 9,060,702 | 8,619,330 | 7,974,241 | ||||||||||
Basic earnings per share | $ | 1.98 | $ | 2.26 | $ | 2.39 | |||||||
Diluted earnings per share | |||||||||||||
Net income available to common shareholders | $ | 17,968 | $ | 19,506 | $ | 19,062 | |||||||
Weighted average common shares outstanding | 9,060,702 | 8,619,330 | 7,974,241 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Warrants | 315,679 | 303,970 | 245,514 | ||||||||||
Restricted stock | 39,476 | 40,160 | 23,181 | ||||||||||
Stock options | 38,268 | 37,503 | 28,241 | ||||||||||
Weighted average shares outstanding | 9,454,125 | 9,000,963 | 8,271,177 | ||||||||||
Diluted earnings per share | $ | 1.9 | $ | 2.17 | $ | 2.3 | |||||||
At December 31, 2014 and 2013 there were 2,500 and zero shares and at December 31, 2012 there were 8,438 shares that were not included in the computation of diluted earnings per share because they were non-dilutive. | |||||||||||||
Dividend Restrictions | Dividend Restrictions — Regulations of the OCC limit the amount of dividends that may be paid by a national bank to its parent holding company without prior approval of the OCC. At December 31, 2014, $24.7 million was available for payment of dividends from the Bank to Horizon. Additionally, the Federal Reserve Board limits the amount of dividends that may be paid by Horizon to its stockholders under its capital adequacy guidelines. | ||||||||||||
Consolidated Statements of Cash Flows | Consolidated Statements of Cash Flows — For purposes of reporting cash flows, cash and cash equivalents are defined to include cash and due from banks, money market investments and federal funds sold with maturities of one day or less. Horizon reports net cash flows for customer loan transactions, deposit transactions, short-term investments and borrowings. | ||||||||||||
Comprehensive Income | Comprehensive Income — Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities, unrealized and realized gains and losses in derivative financial instruments and amortization of available-for-sale securities transferred to held-to-maturity. | ||||||||||||
Share-Based Compensation | Share-Based Compensation — At December 31, 2014, Horizon has share-based compensation plans, which are described more fully in Note 21. All share-based payments to be recognized as expense, based upon their fair values, in the financial statements over the vesting period of the awards. Horizon has recorded approximately $566,000, $336,000, and $220,000 for 2014, 2013 and 2012, in compensation expense relating to vesting of stock options less estimated forfeitures for the 12-month period ended December 31, 2014, 2013 and 2012. | ||||||||||||
Reclassifications | Reclassifications — Certain reclassifications have been made to the 2013 consolidated financial statements to be comparable to 2014. These reclassifications had no effect on net income. | ||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||||
FASB Accounting Standards Update No. 2015-01, Income Statement —Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items | |||||||||||||
The FASB has issued Accounting Standards Update (ASU) No. 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The FASB issued this ASU as part of its initiative to reduce complexity in accounting standards. | |||||||||||||
This ASU eliminates from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement—Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. | |||||||||||||
If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. | |||||||||||||
The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |||||||||||||
FASB ASU No. 2014-17 Business Combinations (Topic 805): Pushdown Accounting | |||||||||||||
The amendments in this Update provide an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. | |||||||||||||
An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. An acquired entity should determine whether to elect to apply pushdown accounting for each individual change-in-control event in which an acquirer obtains control of the acquired entity. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. An election to apply pushdown accounting in a reporting period after the reporting period in which the change-in-control event occurred should be considered a change in accounting principle in accordance with Topic 250, Accounting Changes and Error Corrections. If pushdown accounting is applied to an individual change-in-control event, that election is irrevocable. | |||||||||||||
If an acquired entity elects the option to apply pushdown accounting in its separate financial statements, it should disclose information in the current reporting period that enables users of financial statements to evaluate the effect of pushdown accounting. | |||||||||||||
The amendments in this Update are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. However, if the financial statements for the period in which the most recent change-in-control event occurred already have been issued or made available to be issued, the application of this guidance would be a change in accounting principle. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |||||||||||||
FASB ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 204-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern | |||||||||||||
In August 2014, FASB, issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The amendments in this update are effective for annual reporting periods ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |||||||||||||
FASB ASU 2014-14, Receivables—Troubled Debt Restructuring by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure | |||||||||||||
In August 2014, FASB, issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. The objective of this update is to reduce diversity in practice by addressing the classification of foreclosed mortgage loans that are fully or partially guaranteed under government programs. Currently, some creditors reclassify those loans to real estate as with other foreclosed loans that do not have guarantees; others reclassify the loans to other receivables. The amendments affect creditors that hold government-guaranteed mortgage loans, including those guaranteed by the FHA and the VA. The amendments in this update are effective for annual reporting periods ending after December 15, 2015 and interim periods beginning after December 15, 2015. An entity should adopt the amendments in this update using either a prospective transition method or a modified retrospective transition method. For prospective transition, an entity should apply the amendments in this update to foreclosures that occur after the date of adoption. For the modified retrospective transition, an entity should apply the amendments in the update by means of a cumulative-effect adjustment (through a reclassification to a separate other receivable) as of the beginning of the annual period of adoption. Prior periods should not be adjusted. However, a reporting entity must apply the same method of transition as elected under ASU No. 2014-04. Early adoption, including adoption in an interim period, is permitted if the entity already has adopted update 2014-04. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |||||||||||||
FASB ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period | |||||||||||||
A consensus of the FASB Emerging Issues Task Force. The amendments in this update clarify that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. The ASU is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. In addition, entities will have the option of applying the guidance either prospectively (i.e., only to awards granted or modified on or after the effective date) or retrospectively. Retrospective application would only apply to awards with performance targets outstanding at or after the beginning of the first annual period presented (i.e., the earliest presented comparative period). Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |||||||||||||
FASB ASU 2014-11, Transfers and Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures | |||||||||||||
The amendments in this update require entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), eliminates accounting guidance on linking repurchase financing transactions, and expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers, such as repos, securities lending transactions, and repurchase-to-maturity transactions, accounted for as secured borrowings. The amendments in ASU 2014-11 are effective for annual periods beginning after December 15, 2014. The amendments must present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Early application is prohibited. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |||||||||||||
FASB ASU 2014-09, Revenue from Contracts with Customers | |||||||||||||
The amendments in this update supersede virtually all existing GAAP revenue recognition guidance, including most industry-specific revenue recognition guidance. ASU 2014-09 creates a single, principle-based revenue recognition framework and will require entities to apply significantly more judgment and expanded disclosures surrounding revenue recognition. The core principle requires an entity to recognize revenue in a manner that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 applies to contracts with customers to provide goods and services, with certain exclusions such as lease contracts, financing arrangements, and financial instruments. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted for annual reporting periods beginning after December 15, 2016. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |||||||||||||
Accounting Standards Update (ASU) 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure | |||||||||||||
In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |||||||||||||
ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects | |||||||||||||
In January 2014, the FASB issued ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects, to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The ASU modifies the conditions that an entity must meet to be eligible to use a method other than the equity or cost methods to account for qualified affordable housing project investments. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. |
Nature_of_Operations_and_Summa2
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Computation of Basic and Diluted Earnings Per Share | The following table shows computation of basic and diluted earnings per share. | ||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic earnings per share | |||||||||||||
Net income | $ | 18,101 | $ | 19,876 | $ | 19,543 | |||||||
Less: Preferred stock dividends | 133 | 370 | 481 | ||||||||||
Net income available to common shareholders | $ | 17,968 | $ | 19,506 | $ | 19,062 | |||||||
Weighted average common shares outstanding | 9,060,702 | 8,619,330 | 7,974,241 | ||||||||||
Basic earnings per share | $ | 1.98 | $ | 2.26 | $ | 2.39 | |||||||
Diluted earnings per share | |||||||||||||
Net income available to common shareholders | $ | 17,968 | $ | 19,506 | $ | 19,062 | |||||||
Weighted average common shares outstanding | 9,060,702 | 8,619,330 | 7,974,241 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Warrants | 315,679 | 303,970 | 245,514 | ||||||||||
Restricted stock | 39,476 | 40,160 | 23,181 | ||||||||||
Stock options | 38,268 | 37,503 | 28,241 | ||||||||||
Weighted average shares outstanding | 9,454,125 | 9,000,963 | 8,271,177 | ||||||||||
Diluted earnings per share | $ | 1.9 | $ | 2.17 | $ | 2.3 | |||||||
Acquisition_Tables
Acquisition (Tables) (Summit [Member]) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Summit [Member] | |||||||||||
Schedule of Preliminary Purchase Price of Assets Acquired and Liabilities Assumed | the preliminary purchase price for the Summit acquisition is allocated as follows: | ||||||||||
ASSETS | LIABILITIES | ||||||||||
Cash and due from banks | $ | 15,161 | Deposits | ||||||||
Non-interest bearing | $ | 27,274 | |||||||||
Commercial | 70,441 | NOW accounts | 16,332 | ||||||||
Residential mortgage | 43,448 | Savings and money market | 35,045 | ||||||||
Consumer | 10,192 | Certificates of deposits | 42,368 | ||||||||
Total loans | 124,081 | Total deposits | 121,019 | ||||||||
Premises and equipment, net | 2,548 | Borrowings | 16,990 | ||||||||
FRB and FHLB stock | 2,136 | Interest payable | 52 | ||||||||
Goodwill | 8,428 | Other liabilities | 599 | ||||||||
Core deposit intangible | 822 | ||||||||||
Interest receivable | 347 | ||||||||||
Cash value life insurance | 2,185 | ||||||||||
Other assets | 2,877 | ||||||||||
Total assets purchased | $ | 158,585 | Total liabilities assumed | $ | 138,660 | ||||||
Schedule of Acquired Loans Accounted for in Accordance with ASC 310-30 | The following table details the acquired loans that are accounted for in accordance with ASC 310-30 as of April 3, 2014. | ||||||||||
Contractually required principal and interest at acquisition | $ | 14,460 | |||||||||
Contractual cash flows not expected to be collected (nonaccretable differences) | 3,146 | ||||||||||
Expected cash flows at acquisition | 11,314 | ||||||||||
Interest component of expected cash flows (accretable discount) | 1,688 | ||||||||||
Fair value of acquired loans accounted for under ASC 310-30 | $ | 9,626 | |||||||||
Securities_Tables
Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Fair Value of Securities | The fair value of securities is as follows: | ||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | 26,996 | $ | 56 | $ | (229 | ) | $ | 26,823 | ||||||||||||||||
State and municipal | 46,535 | 1,462 | (45 | ) | 47,952 | ||||||||||||||||||||
Federal agency collateralized mortgage obligations | 122,930 | 975 | (1,045 | ) | 122,860 | ||||||||||||||||||||
Federal agency mortgage-backed pools | 122,583 | 3,172 | (360 | ) | 125,395 | ||||||||||||||||||||
Private labeled mortgage-backed pools | 670 | 19 | — | 689 | |||||||||||||||||||||
Corporate notes | 32 | 13 | — | 45 | |||||||||||||||||||||
Total available for sale investment securities | $ | 319,746 | $ | 5,697 | $ | (1,679 | ) | $ | 323,764 | ||||||||||||||||
Held to maturity | |||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | 9,804 | $ | 82 | $ | — | $ | 9,886 | |||||||||||||||||
State and municipal | 129,595 | 3,398 | (106 | ) | 132,887 | ||||||||||||||||||||
Federal agency collateralized mortgage obligations | 4,039 | 35 | (1 | ) | 4,073 | ||||||||||||||||||||
Federal agency mortgage-backed pools | 22,329 | 729 | — | 23,058 | |||||||||||||||||||||
Total held to maturity investment securities | $ | 165,767 | $ | 4,244 | $ | (107 | ) | $ | 169,904 | ||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | 43,808 | $ | 133 | $ | (807 | ) | $ | 43,134 | ||||||||||||||||
State and municipal | 176,670 | 4,405 | (3,177 | ) | 177,898 | ||||||||||||||||||||
Federal agency collateralized mortgage obligations | 116,047 | 1,242 | (2,583 | ) | 114,706 | ||||||||||||||||||||
Federal agency mortgage-backed pools | 170,006 | 3,172 | (2,284 | ) | 170,894 | ||||||||||||||||||||
Private labeled mortgage-backed pools | 1,188 | 38 | — | 1,226 | |||||||||||||||||||||
Corporate notes | 708 | 25 | — | 733 | |||||||||||||||||||||
Total available for sale investment securities | $ | 508,427 | $ | 9,015 | $ | (8,851 | ) | $ | 508,591 | ||||||||||||||||
Held to maturity, State and Municipal | $ | 9,910 | $ | — | $ | — | $ | 9,910 | |||||||||||||||||
Amortized Cost and Fair Value of Securities Available for Sale and Held to Maturity | The amortized cost and fair value of securities available for sale and held-to-maturity at December 31, 2014 and December 31, 2013, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
Within one year | $ | 6,098 | $ | 6,169 | $ | 3,643 | $ | 3,663 | |||||||||||||||||
One to five years | 44,720 | 45,093 | 49,198 | 49,627 | |||||||||||||||||||||
Five to ten years | 16,147 | 16,768 | 106,225 | 107,424 | |||||||||||||||||||||
After ten years | 6,598 | 6,790 | 62,120 | 61,051 | |||||||||||||||||||||
73,563 | 74,820 | 221,186 | 221,765 | ||||||||||||||||||||||
Federal agency collateralized mortgage obligations | 122,930 | 122,860 | 116,047 | 114,706 | |||||||||||||||||||||
Federal agency mortgage-backed pools | 122,583 | 125,395 | 170,006 | 170,894 | |||||||||||||||||||||
Private labeled mortgage-backed pools | 670 | 689 | 1,188 | 1,226 | |||||||||||||||||||||
Total available for sale investment securities | $ | 319,746 | $ | 323,764 | $ | 508,427 | $ | 508,591 | |||||||||||||||||
Held to maturity | |||||||||||||||||||||||||
Within one year | $ | — | $ | — | $ | 9,910 | $ | 9,910 | |||||||||||||||||
One to five years | 592 | 593 | — | — | |||||||||||||||||||||
Five to ten years | 99,225 | 101,323 | — | — | |||||||||||||||||||||
After ten years | 39,582 | 40,857 | — | — | |||||||||||||||||||||
139,399 | 142,773 | 9,910 | 9,910 | ||||||||||||||||||||||
Federal agency collateralized mortgage obligations | 4,039 | 4,073 | — | — | |||||||||||||||||||||
Federal agency mortgage-backed pools | 22,329 | 23,058 | — | — | |||||||||||||||||||||
Total held to maturity investment securities | $ | 165,767 | $ | 169,904 | $ | 9,910 | $ | 9,910 | |||||||||||||||||
Gross Unrealized Losses and Fair Value of Company's Investments | The following table shows the gross unrealized losses and the fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | 2,993 | $ | (7 | ) | $ | 20,762 | $ | (222 | ) | $ | 23,755 | $ | (229 | ) | ||||||||||
State and municipal | 10,287 | (121 | ) | 2,050 | (30 | ) | 12,336 | (151 | ) | ||||||||||||||||
Federal agency collateralized mortgage obligations | 15,013 | (88 | ) | 39,801 | (957 | ) | 54,813 | (1,046 | ) | ||||||||||||||||
Federal agency mortgage-backed pools | 5,993 | (9 | ) | 28,044 | (351 | ) | 34,037 | (360 | ) | ||||||||||||||||
Total temporarily impaired securities | $ | 34,286 | $ | (225 | ) | $ | 90,657 | $ | (1,560 | ) | $ | 124,941 | $ | (1,786 | ) | ||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
U.S. Treasury and federal agencies | $ | 32,099 | $ | (807 | ) | $ | — | $ | — | $ | 32,099 | $ | (807 | ) | |||||||||||
State and municipal | 57,078 | (2,993 | ) | 3,206 | (184 | ) | 60,284 | (3,177 | ) | ||||||||||||||||
Federal agency collateralized mortgage obligations | 64,445 | (2,121 | ) | 8,601 | (462 | ) | 73,046 | (2,583 | ) | ||||||||||||||||
Federal agency mortgage-backed pools | 87,919 | (2,284 | ) | — | — | 87,919 | (2,284 | ) | |||||||||||||||||
Total temporarily impaired securities | $ | 241,541 | $ | (8,205 | ) | $ | 11,807 | $ | (646 | ) | $ | 253,348 | $ | (8,851 | ) | ||||||||||
Sales of Securities Available for Sale | Information regarding security proceeds, gross gains and gross losses are presented below. | ||||||||||||||||||||||||
Years ended December 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Sales of securities available for sale | |||||||||||||||||||||||||
Proceeds | $ | 45,228 | $ | 23,853 | $ | 14,989 | |||||||||||||||||||
Gross gains | 988 | 382 | 2 | ||||||||||||||||||||||
Gross losses | — | (8 | ) | — |
Accounting_for_Certain_Loans_A1
Accounting for Certain Loans Acquired in a Transfer (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Amounts of Loans | |||||||||||||
December 31 | December 31 | ||||||||||||
2014 | 2013 | ||||||||||||
Commercial | |||||||||||||
Working capital and equipment | $ | 300,940 | $ | 241,569 | |||||||||
Real estate, including agriculture | 343,455 | 245,313 | |||||||||||
Tax exempt | 8,595 | 2,898 | |||||||||||
Other | 21,324 | 15,409 | |||||||||||
Total | 674,314 | 505,189 | |||||||||||
Real estate | |||||||||||||
1–4 family | 250,799 | 181,393 | |||||||||||
Other | 3,826 | 4,565 | |||||||||||
Total | 254,625 | 185,958 | |||||||||||
Consumer | |||||||||||||
Auto | 154,538 | 139,915 | |||||||||||
Recreation | 5,673 | 4,839 | |||||||||||
Real estate/home improvement | 38,288 | 30,729 | |||||||||||
Home equity | 112,426 | 96,924 | |||||||||||
Unsecured | 3,613 | 3,825 | |||||||||||
Other | 5,921 | 3,293 | |||||||||||
Total | 320,459 | 279,525 | |||||||||||
Mortgage warehouse | 129,156 | 98,156 | |||||||||||
Total loans | 1,378,554 | 1,068,828 | |||||||||||
Allowance for loan losses | (16,501 | ) | (15,992 | ) | |||||||||
Loans, net | $ | 1,362,053 | $ | 1,052,836 | |||||||||
Loans Purchased With Evidence Of Credit Deterioration [Member] | |||||||||||||
Amounts of Loans | The carrying amounts of those loans included in the balance sheet amounts of loans receivable are as follows: | ||||||||||||
December 31 | December 31 | December 31 | |||||||||||
2014 | 2014 | 2014 | |||||||||||
Heartland | Summit | Total | |||||||||||
Commercial | 18,307 | 66,371 | $ | 84,678 | |||||||||
Real estate | 9,734 | 24,653 | 34,387 | ||||||||||
Consumer | 8,447 | 8,975 | 17,422 | ||||||||||
Outstanding balance | $ | 36,488 | $ | 99,999 | $ | 136,487 | |||||||
Carrying amount, net of allowance of $359 | $ | 136,128 | |||||||||||
December 31 | December 31 | December 31 | |||||||||||
2013 | 2013 | 2013 | |||||||||||
Heartland | Summit | Total | |||||||||||
Commercial | $ | 37,048 | $ | — | $ | 37,048 | |||||||
Real estate | 11,761 | — | 11,761 | ||||||||||
Consumer | 11,485 | — | 11,485 | ||||||||||
Outstanding balance | $ | 60,294 | $ | — | $ | 60,294 | |||||||
Carrying amount, net of allowance of $389 | $ | 59,905 | |||||||||||
Accretable Yield or Income Expected to be Collected | Accretable yield, or income expected to be collected for the years ended December 31, is as follows: | ||||||||||||
Twelve Months Ended December 31, 2014 | |||||||||||||
Heartland | Summit | Total | |||||||||||
Balance at January 1 | $ | 3,185 | $ | — | $ | 3,185 | |||||||
Additions | — | 1,688 | 1,688 | ||||||||||
Accretion | (557 | ) | (332 | ) | (889 | ) | |||||||
Reclassification from nonaccretable difference | — | — | — | ||||||||||
Disposals | (228 | ) | (88 | ) | (316 | ) | |||||||
Balance at December 31 | $ | 2,400 | $ | 1,268 | $ | 3,668 | |||||||
Twelve Months Ended December 31, 2013 | |||||||||||||
Heartland | Summit | Total | |||||||||||
Balance at January 1 | $ | 6,111 | $ | — | $ | 6,111 | |||||||
Additions | — | — | — | ||||||||||
Accretion | (1,267 | ) | — | (1,267 | ) | ||||||||
Reclassification from nonaccretable difference | — | — | — | ||||||||||
Disposals | (1,659 | ) | — | (1,659 | ) | ||||||||
Balance at December 31 | $ | 3,185 | $ | — | $ | 3,185 | |||||||
Loans_Tables
Loans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Receivables [Abstract] | |||||||||||||||||
Recorded Investment of Individual Loan Categories | The following table shows the recorded investment of individual loan categories. | ||||||||||||||||
Loan | Deferred | Recorded | |||||||||||||||
Balance | Interest Due | Fees / (Costs) | Investment | ||||||||||||||
December 31, 2014 | |||||||||||||||||
Owner occupied real estate | $ | 228,380 | $ | 385 | $ | 680 | $ | 229,445 | |||||||||
Non owner occupied real estate | 297,299 | 309 | 506 | 298,114 | |||||||||||||
Residential spec homes | 2,027 | 2 | — | 2,029 | |||||||||||||
Development & spec land loans | 12,097 | 28 | 30 | 12,155 | |||||||||||||
Commercial and industrial | 133,256 | 859 | 39 | 134,154 | |||||||||||||
Total commercial | 673,059 | 1,583 | 1,255 | 675,897 | |||||||||||||
Residential mortgage | 242,521 | 737 | 599 | 243,857 | |||||||||||||
Residential construction | 11,505 | 21 | — | 11,526 | |||||||||||||
Mortgage warehouse | 129,156 | 480 | — | 129,636 | |||||||||||||
Total real estate | 383,182 | 1,238 | 599 | 385,019 | |||||||||||||
Direct installment | 40,137 | 129 | (375 | ) | 39,891 | ||||||||||||
Direct installment purchased | 219 | — | — | 219 | |||||||||||||
Indirect installment | 141,868 | 314 | (163 | ) | 142,019 | ||||||||||||
Home equity | 139,007 | 568 | (234 | ) | 139,341 | ||||||||||||
Total consumer | 321,231 | 1,011 | (772 | ) | 321,470 | ||||||||||||
Total loans | 1,377,472 | 3,832 | 1,082 | 1,382,386 | |||||||||||||
Allowance for loan losses | (16,501 | ) | — | — | (16,501 | ) | |||||||||||
Net loans | $ | 1,360,971 | $ | 3,832 | $ | 1,082 | $ | 1,365,885 | |||||||||
Loan | Deferred | Recorded | |||||||||||||||
Balance | Interest Due | Fees / (Costs) | Investment | ||||||||||||||
December 31, 2013 | |||||||||||||||||
Owner occupied real estate | $ | 156,262 | $ | 257 | $ | 207 | $ | 156,726 | |||||||||
Non owner occupied real estate | 224,713 | 105 | 299 | 225,117 | |||||||||||||
Residential spec homes | 400 | — | — | 400 | |||||||||||||
Development & spec land loans | 21,289 | 62 | 42 | 21,393 | |||||||||||||
Commercial and industrial | 101,920 | 737 | 57 | 102,714 | |||||||||||||
Total commercial | 504,584 | 1,161 | 605 | 506,350 | |||||||||||||
Residential mortgage | 176,068 | 578 | 382 | 177,028 | |||||||||||||
Residential construction | 9,508 | 14 | — | 9,522 | |||||||||||||
Mortgage warehouse | 98,156 | 480 | — | 98,636 | |||||||||||||
Total real estate | 283,732 | 1,072 | 382 | 285,186 | |||||||||||||
Direct installment | 29,983 | 104 | (281 | ) | 29,806 | ||||||||||||
Direct installment purchased | 294 | — | — | 294 | |||||||||||||
Indirect installment | 131,384 | 320 | — | 131,704 | |||||||||||||
Home equity | 117,958 | 529 | 187 | 118,674 | |||||||||||||
Total consumer | 279,619 | 953 | (94 | ) | 280,478 | ||||||||||||
Total loans | 1,067,935 | 3,186 | 893 | 1,072,014 | |||||||||||||
Allowance for loan losses | (15,992 | ) | — | — | (15,992 | ) | |||||||||||
Net loans | $ | 1,051,943 | $ | 3,186 | $ | 893 | $ | 1,056,022 | |||||||||
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||
Allowance for Loan Losses | The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the prior one to five years. Management believes the five-year historical loss experience methodology is appropriate in the current economic environment, as it captures loss rates that are comparable to the current period being analyzed. The actual allowance for loan loss activity is provided below. | ||||||||||||||||||||
December 31 | December 31 | December 31 | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Balance at beginning of the period | $ | 15,992 | $ | 18,270 | $ | 18,882 | |||||||||||||||
Loans charged-off: | |||||||||||||||||||||
Commercial | |||||||||||||||||||||
Owner occupied real estate | 40 | 138 | 418 | ||||||||||||||||||
Non owner occupied real estate | 136 | 937 | 1,196 | ||||||||||||||||||
Residential development | — | — | — | ||||||||||||||||||
Development & Spec Land Loans | 173 | 182 | — | ||||||||||||||||||
Commercial and industrial | 1,453 | 1,275 | 774 | ||||||||||||||||||
Total commercial | 1,802 | 2,532 | 2,388 | ||||||||||||||||||
Real estate | |||||||||||||||||||||
Residential mortgage | 328 | 1,055 | 597 | ||||||||||||||||||
Residential construction | — | — | — | ||||||||||||||||||
Mortgage warehouse | — | — | — | ||||||||||||||||||
Total real estate | 328 | 1,055 | 597 | ||||||||||||||||||
Consumer | |||||||||||||||||||||
Direct Installment | 250 | 333 | 327 | ||||||||||||||||||
Direct Installment Purchased | — | — | — | ||||||||||||||||||
Indirect Installment | 1,233 | 1,178 | 1,294 | ||||||||||||||||||
Home Equity | 516 | 1,152 | 1,337 | ||||||||||||||||||
Total consumer | 1,999 | 2,663 | 2,958 | ||||||||||||||||||
Total loans charged-off | 4,129 | 6,250 | 5,943 | ||||||||||||||||||
Recoveries of loans previously charged-off: | |||||||||||||||||||||
Commercial | |||||||||||||||||||||
Owner occupied real estate | 13 | 65 | 547 | ||||||||||||||||||
Non owner occupied real estate | 210 | 71 | 98 | ||||||||||||||||||
Residential development | — | — | — | ||||||||||||||||||
Development & Spec Land Loans | 55 | — | — | ||||||||||||||||||
Commercial and industrial | 495 | 532 | 137 | ||||||||||||||||||
Total commercial | 773 | 668 | 782 | ||||||||||||||||||
Real estate | |||||||||||||||||||||
Residential mortgage | 21 | 114 | 77 | ||||||||||||||||||
Residential construction | — | — | — | ||||||||||||||||||
Mortgage warehouse | — | — | — | ||||||||||||||||||
Total real estate | 21 | 114 | 77 | ||||||||||||||||||
Consumer | |||||||||||||||||||||
Direct Installment | 67 | 488 | 84 | ||||||||||||||||||
Direct Installment Purchased | — | — | — | ||||||||||||||||||
Indirect Installment | 560 | 658 | 737 | ||||||||||||||||||
Home Equity | 159 | 124 | 127 | ||||||||||||||||||
Total consumer | 786 | 1,270 | 948 | ||||||||||||||||||
Total loan recoveries | 1,580 | 2,052 | 1,807 | ||||||||||||||||||
Net loans charged-off (recovered) | 2,549 | 4,198 | 4,136 | ||||||||||||||||||
Provision charged to operating expense | |||||||||||||||||||||
Commercial | 2,277 | 756 | 1,360 | ||||||||||||||||||
Real estate | (1,153 | ) | 1,132 | 1,262 | |||||||||||||||||
Consumer | 1,934 | 32 | 902 | ||||||||||||||||||
Total provision charged to operating expense | 3,058 | 1,920 | 3,524 | ||||||||||||||||||
Balance at the end of the period | $ | 16,501 | $ | 15,992 | $ | 18,270 | |||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment analysis: | ||||||||||||||||||||
Commercial | Real Estate | Mortgage | Consumer | Total | |||||||||||||||||
Warehousing | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Allowance For Loan Losses | |||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||
Individually evaluated for impairment | $ | 1,589 | $ | — | $ | — | $ | — | $ | 1,589 | |||||||||||
Collectively evaluated for impairment | 5,827 | 2,508 | 1,132 | 4,951 | 14,418 | ||||||||||||||||
Loans acquired with deteriorated credit quality | 494 | — | — | — | 494 | ||||||||||||||||
Total ending allowance balance | $ | 7,910 | $ | 2,508 | $ | 1,132 | $ | 4,951 | $ | 16,501 | |||||||||||
Loans: | |||||||||||||||||||||
Individually evaluated for impairment | $ | 11,055 | $ | — | $ | — | $ | — | $ | 11,055 | |||||||||||
Collectively evaluated for impairment | 664,251 | 255,383 | 129,636 | 321,470 | 1,370,740 | ||||||||||||||||
Loans acquired with deteriorated credit quality | 591 | — | — | — | 591 | ||||||||||||||||
Total ending loans balance | $ | 675,897 | $ | 255,383 | $ | 129,636 | $ | 321,470 | $ | 1,382,386 | |||||||||||
Commercial | Real Estate | Mortgage | Consumer | Total | |||||||||||||||||
Warehousing | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Allowance For Loan Losses | |||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||
Individually evaluated for impairment | $ | 1,312 | $ | — | $ | — | $ | — | $ | 1,312 | |||||||||||
Collectively evaluated for impairment | 4,963 | 3,462 | 1,638 | 4,228 | 14,291 | ||||||||||||||||
Loans acquired with deteriorated credit quality | 389 | — | — | — | 389 | ||||||||||||||||
Total ending allowance balance | $ | 6,664 | $ | 3,462 | $ | 1,638 | $ | 4,228 | $ | 15,992 | |||||||||||
Loans: | |||||||||||||||||||||
Individually evaluated for impairment | $ | 7,448 | $ | — | $ | — | $ | — | $ | 7,448 | |||||||||||
Collectively evaluated for impairment | 489,547 | 186,526 | 98,636 | 279,448 | 1,054,157 | ||||||||||||||||
Loans acquired with deteriorated credit quality | 9,355 | 24 | — | 1,030 | 10,409 | ||||||||||||||||
Total ending loans balance | $ | 506,350 | $ | 186,550 | $ | 98,636 | $ | 280,478 | $ | 1,072,014 | |||||||||||
Nonperforming_Assets_and_Impai1
Non-performing Assets and Impaired Loans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||
Nonaccrual, Loans Past Due Over 90 Days Still on Accrual, and Troubled Debt Restructured ("TDRs") by Class of Loans | The following table presents the nonaccrual, loans past due over 90 days still on accrual, and troubled debt restructured (“TDRs”) by class of loans: | ||||||||||||||||||||||||
Non-accrual | Loans Past | Non- | Performing | Total Non- | |||||||||||||||||||||
Due Over 90 | Performing | TDRs | Performing | ||||||||||||||||||||||
Days Still | TDRs | Loans | |||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 1,773 | $ | — | $ | — | $ | 44 | $ | 1,817 | |||||||||||||||
Non owner occupied real estate | 7,439 | — | 217 | 566 | 8,222 | ||||||||||||||||||||
Residential development | — | — | — | — | — | ||||||||||||||||||||
Development & Spec Land Loans | — | — | — | — | — | ||||||||||||||||||||
Commercial and industrial | 812 | — | 1,004 | — | 1,816 | ||||||||||||||||||||
Total commercial | 10,024 | — | 1,221 | 610 | 11,855 | ||||||||||||||||||||
Real estate | |||||||||||||||||||||||||
Residential mortgage | 2,297 | 40 | 765 | 2,526 | 5,628 | ||||||||||||||||||||
Residential construction | — | — | 266 | — | 266 | ||||||||||||||||||||
Mortgage warehouse | — | — | — | — | — | ||||||||||||||||||||
Total real estate | 2,297 | 40 | 1,031 | 2,526 | 5,894 | ||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Direct Installment | 227 | 10 | — | — | 237 | ||||||||||||||||||||
Direct Installment Purchased | — | — | — | — | — | ||||||||||||||||||||
Indirect Installment | 557 | 47 | — | — | 604 | ||||||||||||||||||||
Home Equity | 2,207 | 18 | 391 | 1,236 | 3,852 | ||||||||||||||||||||
Total Consumer | 2,991 | 75 | 391 | 1,236 | 4,693 | ||||||||||||||||||||
Total | $ | 15,312 | $ | 115 | $ | 2,643 | $ | 4,372 | $ | 22,442 | |||||||||||||||
Non-accrual | Loans Past | Non- | Performing | Total Non- | |||||||||||||||||||||
Due Over 90 | Performing | TDRs | Performing | ||||||||||||||||||||||
Days Still | TDRs | Loans | |||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 293 | $ | — | $ | 222 | $ | 778 | $ | 1,293 | |||||||||||||||
Non owner occupied real estate | 2,289 | 45 | 1,117 | 518 | 3,969 | ||||||||||||||||||||
Residential development | — | — | — | — | — | ||||||||||||||||||||
Development & Spec Land Loans | 182 | — | — | — | 182 | ||||||||||||||||||||
Commercial and industrial | 1,250 | — | 777 | — | 2,027 | ||||||||||||||||||||
Total commercial | 4,014 | 45 | 2,116 | 1,296 | 7,471 | ||||||||||||||||||||
Real estate | |||||||||||||||||||||||||
Residential mortgage | 2,459 | 2 | 719 | 2,686 | 5,866 | ||||||||||||||||||||
Residential construction | — | — | 280 | — | 280 | ||||||||||||||||||||
Mortgage warehouse | — | — | — | — | — | ||||||||||||||||||||
Total real estate | 2,459 | 2 | 999 | 2,686 | 6,146 | ||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Direct Installment | 202 | — | — | — | 202 | ||||||||||||||||||||
Direct Installment Purchased | — | — | — | — | — | ||||||||||||||||||||
Indirect Installment | 531 | 2 | — | — | 533 | ||||||||||||||||||||
Home Equity | 2,542 | — | 311 | 1,072 | 3,925 | ||||||||||||||||||||
Total Consumer | 3,275 | 2 | 311 | 1,072 | 4,660 | ||||||||||||||||||||
Total | $ | 9,748 | $ | 49 | $ | 3,426 | $ | 5,054 | $ | 18,277 | |||||||||||||||
Loans Transferred and Classified as Troubled Debt Restructured Loans | Loans transferred and classified as troubled debt restructuring during the years ended December 31, 2014 and 2013, segregated by class, are shown in the table below. | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Number of | Unpaid | Number of | Unpaid | ||||||||||||||||||||||
Defaults | Principal | Defaults | Principal | ||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | — | $ | — | 3 | $ | 223 | |||||||||||||||||||
Non owner occupied real estate | — | — | 3 | 942 | |||||||||||||||||||||
Residential development | — | — | — | — | |||||||||||||||||||||
Development & Spec Land Loans | — | — | — | — | |||||||||||||||||||||
Commercial and industrial | 1 | 247 | — | — | |||||||||||||||||||||
Total commercial | 1 | 247 | 6 | 1,165 | |||||||||||||||||||||
Real estate | |||||||||||||||||||||||||
Residential mortgage | 2 | 319 | 9 | 1,252 | |||||||||||||||||||||
Residential construction | — | — | — | — | |||||||||||||||||||||
Mortgage warehouse | — | — | — | — | |||||||||||||||||||||
Total real estate | 2 | 319 | 9 | 1,252 | |||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Direct Installment | — | — | — | — | |||||||||||||||||||||
Direct Installment Purchased | — | — | — | — | |||||||||||||||||||||
Indirect Installment | — | — | — | — | |||||||||||||||||||||
Home Equity | 4 | 404 | 7 | 915 | |||||||||||||||||||||
Total Consumer | 4 | 404 | 7 | 915 | |||||||||||||||||||||
— | — | ||||||||||||||||||||||||
Total | 7 | $ | 969 | 22 | $ | 3,332 | |||||||||||||||||||
Troubled debt restructured loans which had payment defaults during the years ended December 31, 2014 and 2013, segregated by class, are shown in the table below. Default occurs when a loan is 90 days or more past due or transferred to nonaccrual. | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Number of | Unpaid | Number of | Unpaid | ||||||||||||||||||||||
Defaults | Principal | Defaults | Principal | ||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | — | $ | — | 3 | $ | 223 | |||||||||||||||||||
Non owner occupied real estate | — | — | 2 | 424 | |||||||||||||||||||||
Residential development | — | — | — | — | |||||||||||||||||||||
Development & Spec Land Loans | — | — | — | — | |||||||||||||||||||||
Commercial and industrial | 1 | 247 | — | — | |||||||||||||||||||||
Total commercial | 1 | 247 | 5 | 647 | |||||||||||||||||||||
Real estate | |||||||||||||||||||||||||
Residential mortgage | 2 | 243 | 3 | 355 | |||||||||||||||||||||
Residential construction | — | — | — | — | |||||||||||||||||||||
Mortgage warehouse | — | — | — | — | |||||||||||||||||||||
Total real estate | 2 | 243 | 3 | 355 | |||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Direct Installment | — | — | — | — | |||||||||||||||||||||
Direct Installment Purchased | — | — | — | — | |||||||||||||||||||||
Indirect Installment | — | — | — | — | |||||||||||||||||||||
Home Equity | 3 | 355 | 3 | 178 | |||||||||||||||||||||
Total Consumer | 3 | 355 | 3 | 178 | |||||||||||||||||||||
— | — | ||||||||||||||||||||||||
Total | 6 | $ | 845 | 11 | $ | 1,180 | |||||||||||||||||||
Commercial Loans Individually Evaluated for Impairment by Class of Loans | The following table presents commercial loans individually evaluated for impairment by class of loans: | ||||||||||||||||||||||||
Twelve Months Ending | |||||||||||||||||||||||||
Unpaid | Recorded | Allowance For | Average | Cash/Accrual | |||||||||||||||||||||
Principal | Investment | Loan Loss | Balance in | Interest Income | |||||||||||||||||||||
Balance | Allocated | Impaired Loans | Recognized | ||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 1,169 | $ | 1,170 | $ | — | $ | 645 | $ | 65 | |||||||||||||||
Non owner occupied real estate | 1,193 | 1,194 | — | 1,341 | 51 | ||||||||||||||||||||
Residential development | — | — | — | — | — | ||||||||||||||||||||
Development & Spec Land Loans | — | — | — | — | — | ||||||||||||||||||||
Commercial and industrial | 854 | 854 | — | 357 | 27 | ||||||||||||||||||||
Total commercial | 3,216 | 3,218 | — | 2,343 | 143 | ||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | 422 | 422 | 165 | 141 | 16 | ||||||||||||||||||||
Non owner occupied real estate | 6,453 | 6,453 | 744 | 1,995 | 208 | ||||||||||||||||||||
Residential development | — | — | — | — | — | ||||||||||||||||||||
Development & Spec Land Loans | — | — | — | — | — | ||||||||||||||||||||
Commercial and industrial | 962 | 962 | 680 | 798 | 12 | ||||||||||||||||||||
Total commercial | 7,837 | 7,837 | 1,589 | 2,934 | 236 | ||||||||||||||||||||
Total | $ | 11,053 | $ | 11,055 | $ | 1,589 | $ | 5,277 | $ | 379 | |||||||||||||||
Twelve Months Ending | |||||||||||||||||||||||||
Unpaid | Recorded | Allowance | Average | Cash/Accrual | |||||||||||||||||||||
Principal | Investment | For Loan | Balance in | Interest Income | |||||||||||||||||||||
Balance | Loss | Impaired Loans | Recognized | ||||||||||||||||||||||
Allocated | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 1,293 | $ | 1,296 | $ | — | $ | 1,845 | $ | 68 | |||||||||||||||
Non owner occupied real estate | 3,521 | 3,525 | — | 2,963 | 172 | ||||||||||||||||||||
Residential development | — | — | — | — | — | ||||||||||||||||||||
Development & Spec Land Loans | 23 | 23 | — | 25 | — | ||||||||||||||||||||
Commercial and industrial | 390 | 405 | — | 712 | — | ||||||||||||||||||||
Total commercial | 5,227 | 5,249 | — | 5,545 | 240 | ||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | — | — | — | — | — | ||||||||||||||||||||
Non owner occupied real estate | 403 | 403 | 202 | 485 | — | ||||||||||||||||||||
Residential development | — | — | — | — | — | ||||||||||||||||||||
Development & Spec Land Loans | 159 | 159 | 48 | 166 | — | ||||||||||||||||||||
Commercial and industrial | 1,637 | 1,637 | 1,062 | 1,140 | 31 | ||||||||||||||||||||
Total commercial | 2,199 | 2,199 | 1,312 | 1,791 | 31 | ||||||||||||||||||||
Total | $ | 7,426 | $ | 7,448 | $ | 1,312 | $ | 7,336 | $ | 271 | |||||||||||||||
Twelve Months Ending | |||||||||||||||||||||||||
Unpaid | Recorded | Allowance For | Average | Cash/Accrual | |||||||||||||||||||||
Principal | Investment | Loan Loss | Balance in | Interest Income | |||||||||||||||||||||
Balance | Allocated | Impaired Loans | Recognized | ||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 4,890 | $ | 4,901 | $ | — | $ | 2,422 | $ | 80 | |||||||||||||||
Non owner occupied real estate | 1,961 | 1,963 | — | 1,544 | 20 | ||||||||||||||||||||
Residential development | — | — | — | — | — | ||||||||||||||||||||
Development & Spec Land Loans | 133 | 133 | — | 61 | — | ||||||||||||||||||||
Commercial and industrial | 449 | 466 | — | 297 | — | ||||||||||||||||||||
Total commercial | 7,433 | 7,463 | — | 4,324 | 100 | ||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | — | — | — | — | — | ||||||||||||||||||||
Non owner occupied real estate | 1,795 | 1,795 | 1,080 | 481 | 95 | ||||||||||||||||||||
Residential development | — | — | — | — | — | ||||||||||||||||||||
Development & Spec Land Loans | 572 | 572 | 600 | 526 | 6 | ||||||||||||||||||||
Commercial and industrial | 797 | 797 | 265 | 806 | — | ||||||||||||||||||||
Total commercial | 3,164 | 3,164 | 1,945 | 1,813 | 101 | ||||||||||||||||||||
Total | $ | 10,597 | $ | 10,627 | $ | 1,945 | $ | 6,137 | $ | 201 | |||||||||||||||
Payment Status by Class of Loan | The following table presents the payment status by class of loans: | ||||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | Greater than 90 | Total Past Due | Loans Not Past | Total | ||||||||||||||||||||
Past Due | Past Due | Days Past Due | Due | ||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 103 | $ | 645 | $ | — | $ | 748 | $ | 227,632 | $ | 228,380 | |||||||||||||
Non owner occupied real estate | 413 | — | — | 413 | 296,886 | 297,299 | |||||||||||||||||||
Residential development | — | — | — | — | 2,027 | 2,027 | |||||||||||||||||||
Development & Spec Land Loans | — | — | — | — | 12,097 | 12,097 | |||||||||||||||||||
Commercial and industrial | 19 | 1 | — | 20 | 133,236 | 133,256 | |||||||||||||||||||
Total commercial | 535 | 646 | — | 1,181 | 671,878 | 673,059 | |||||||||||||||||||
Real estate | |||||||||||||||||||||||||
Residential mortgage | 1,033 | 193 | 40 | 1,266 | 241,255 | 242,521 | |||||||||||||||||||
Residential construction | — | — | — | — | 11,505 | 11,505 | |||||||||||||||||||
Mortgage warehouse | — | — | — | — | 129,156 | 129,156 | |||||||||||||||||||
Total real estate | 1,033 | 193 | 40 | 1,266 | 381,916 | 383,182 | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Direct Installment | 113 | 4 | 10 | 127 | 40,010 | 40,137 | |||||||||||||||||||
Direct Installment Purchased | — | — | — | — | 219 | 219 | |||||||||||||||||||
Indirect Installment | 1,042 | 243 | 47 | 1,332 | 140,536 | 141,868 | |||||||||||||||||||
Home Equity | 1,084 | 189 | 18 | 1,291 | 137,716 | 139,007 | |||||||||||||||||||
Total consumer | 2,239 | 436 | 75 | 2,750 | 318,481 | 321,231 | |||||||||||||||||||
Total | $ | 3,807 | $ | 1,275 | $ | 115 | $ | 5,197 | $ | 1,372,275 | $ | 1,377,472 | |||||||||||||
Percentage of total loans | 0.28 | % | 0.09 | % | 0.01 | % | 0.38 | % | 99.62 | % | |||||||||||||||
30 - 59 Days | 60 - 89 Days | Greater than 90 | Total Past Due | Loans Not Past | Total | ||||||||||||||||||||
Past Due | Past Due | Days Past Due | Due | ||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 341 | $ | — | $ | — | $ | 341 | $ | 155,921 | $ | 156,262 | |||||||||||||
Non owner occupied real estate | 424 | — | 45 | 469 | 224,244 | 224,713 | |||||||||||||||||||
Residential development | — | — | — | — | 400 | 400 | |||||||||||||||||||
Development & Spec Land Loans | — | — | — | — | 21,289 | 21,289 | |||||||||||||||||||
Commercial and industrial | — | — | — | — | 101,920 | 101,920 | |||||||||||||||||||
Total commercial | 765 | — | 45 | 810 | 503,774 | 504,584 | |||||||||||||||||||
Real estate | |||||||||||||||||||||||||
Residential mortgage | 445 | 87 | 2 | 534 | 175,534 | 176,068 | |||||||||||||||||||
Residential construction | — | — | — | — | 9,508 | 9,508 | |||||||||||||||||||
Mortgage warehouse | — | — | — | — | 98,156 | 98,156 | |||||||||||||||||||
Total real estate | 445 | 87 | 2 | 534 | 283,198 | 283,732 | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Direct Installment | 120 | 24 | — | 144 | 29,839 | 29,983 | |||||||||||||||||||
Direct Installment Purchased | — | — | — | — | 294 | 294 | |||||||||||||||||||
Indirect Installment | 1,011 | 175 | 2 | 1,188 | 130,196 | 131,384 | |||||||||||||||||||
Home Equity | 767 | 58 | — | 825 | 117,133 | 117,958 | |||||||||||||||||||
Total consumer | 1,898 | 257 | 2 | 2,157 | 277,462 | 279,619 | |||||||||||||||||||
Total | $ | 3,108 | $ | 344 | $ | 49 | $ | 3,501 | $ | 1,064,434 | $ | 1,067,935 | |||||||||||||
Percentage of total loans | 0.29 | % | 0.03 | % | 0 | % | 0.33 | % | 99.67 | % | |||||||||||||||
Loans by Credit Grades | The following table presents loans by credit grades. | ||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||
Mention | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 215,875 | $ | 7,623 | $ | 4,883 | $ | — | $ | 228,381 | |||||||||||||||
Non owner occupied real estate | 283,518 | 4,458 | 9,323 | — | 297,299 | ||||||||||||||||||||
Residential development | 2,027 | — | — | — | 2,027 | ||||||||||||||||||||
Development & Spec Land Loans | 12,018 | 79 | — | — | 12,097 | ||||||||||||||||||||
Commercial and industrial | 128,589 | 1,799 | 2,868 | — | 133,256 | ||||||||||||||||||||
Total commercial | 642,027 | 13,959 | 17,074 | — | 673,060 | ||||||||||||||||||||
Real estate | |||||||||||||||||||||||||
Residential mortgage | 236,893 | — | 5,628 | — | 242,521 | ||||||||||||||||||||
Residential construction | 11,239 | — | 266 | — | 11,505 | ||||||||||||||||||||
Mortgage warehouse | 129,156 | — | — | — | 129,156 | ||||||||||||||||||||
Total real estate | 377,288 | — | 5,894 | — | 383,182 | ||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Direct Installment | 39,900 | — | 237 | — | 40,137 | ||||||||||||||||||||
Direct Installment Purchased | 219 | — | — | — | 219 | ||||||||||||||||||||
Indirect Installment | 141,264 | — | 604 | — | 141,868 | ||||||||||||||||||||
Home Equity | 135,155 | — | 3,852 | — | 139,007 | ||||||||||||||||||||
Total Consumer | 316,538 | — | 4,693 | — | 321,231 | ||||||||||||||||||||
Total | $ | 1,335,854 | $ | 13,959 | $ | 27,661 | $ | — | $ | 1,377,473 | |||||||||||||||
Percentage of total loans | 96.98 | % | 1.01 | % | 2.01 | % | 0 | % | |||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||
Mention | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Owner occupied real estate | $ | 146,085 | $ | 2,231 | $ | 7,946 | $ | — | $ | 156,262 | |||||||||||||||
Non owner occupied real estate | 208,625 | 5,047 | 11,041 | — | 224,713 | ||||||||||||||||||||
Residential development | 400 | — | — | — | 400 | ||||||||||||||||||||
Development & Spec Land Loans | 19,858 | 91 | 1,340 | — | 21,289 | ||||||||||||||||||||
Commercial and industrial | 91,852 | 6,492 | 3,576 | — | 101,920 | ||||||||||||||||||||
Total commercial | 466,820 | 13,861 | 23,903 | — | 504,584 | ||||||||||||||||||||
Real estate | |||||||||||||||||||||||||
Residential mortgage | 170,202 | — | 5,866 | — | 176,068 | ||||||||||||||||||||
Residential construction | 9,228 | — | 280 | — | 9,508 | ||||||||||||||||||||
Mortgage warehouse | 98,156 | — | — | — | 98,156 | ||||||||||||||||||||
Total real estate | 277,586 | — | 6,146 | — | 283,732 | ||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Direct Installment | 29,781 | — | 202 | — | 29,983 | ||||||||||||||||||||
Direct Installment Purchased | 294 | — | — | — | 294 | ||||||||||||||||||||
Indirect Installment | 130,851 | — | 533 | — | 131,384 | ||||||||||||||||||||
Home Equity | 114,033 | — | 3,925 | — | 117,958 | ||||||||||||||||||||
Total Consumer | 274,959 | — | 4,660 | — | 279,619 | ||||||||||||||||||||
Total | $ | 1,019,365 | $ | 13,861 | $ | 34,709 | $ | — | $ | 1,067,935 | |||||||||||||||
Percentage of total loans | 95.45 | % | 1.3 | % | 3.25 | % | 0 | % |
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Summary of Premises and Equipment | |||||||||
December 31 | December 31 | ||||||||
2014 | 2013 | ||||||||
Land | $ | 16,550 | $ | 13,323 | |||||
Buildings and improvements | 49,066 | 45,466 | |||||||
Furniture and equipment | 13,795 | 11,833 | |||||||
Total cost | 79,411 | 70,622 | |||||||
Accumulated depreciation | (26,950 | ) | (24,428 | ) | |||||
Net premise and equipment | $ | 52,461 | $ | 46,194 | |||||
Loan_Servicing_Tables
Loan Servicing (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Originated Mortgage Servicing Rights | |||||||||||||
December 31 | December 31 | December 31 | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Mortgage servicing rights | |||||||||||||
Balances, January 1 | $ | 7,428 | $ | 6,169 | $ | 5,049 | |||||||
Servicing rights capitalized | 2,280 | 2,535 | 2,439 | ||||||||||
Amortization of servicing rights | (1,728 | ) | (1,276 | ) | (1,319 | ) | |||||||
Balances, December 31 | 7,980 | 7,428 | 6,169 | ||||||||||
Impairment allowance | |||||||||||||
Balances, January 1 | (389 | ) | (1,024 | ) | (856 | ) | |||||||
Additions | (95 | ) | (54 | ) | (762 | ) | |||||||
Reductions | 146 | 689 | 594 | ||||||||||
Balances, December 31 | (338 | ) | (389 | ) | (1,024 | ) | |||||||
Mortgage servicing rights, net | $ | 7,642 | $ | 7,039 | $ | 5,145 | |||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Amortizable Intangible Assets | Amortizable intangible assets are summarized as follows: | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||
Amortizable intangible assets Core deposit intangible | $ | 8,526 | $ | (4,561 | ) | $ | 6,969 | $ | (3,681 | ) | |||||||
Estimated Amortization | Estimated amortization for the years ending December 31 is as follows: | ||||||||||||||||
2015 | $ | 768 | |||||||||||||||
2016 | 666 | ||||||||||||||||
2017 | 664 | ||||||||||||||||
2018 | 661 | ||||||||||||||||
2019 | 519 | ||||||||||||||||
Thereafter | 687 | ||||||||||||||||
$ | 3,965 | ||||||||||||||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Banking and Thrift [Abstract] | |||||||||||||
Deposits | |||||||||||||
December 31 | December 31 | ||||||||||||
2014 | 2013 | ||||||||||||
Noninterest-bearing demand deposits | $ | 267,667 | $ | 231,096 | |||||||||
Interest-bearing demand deposits | 606,609 | 513,445 | |||||||||||
Money market (variable rate) | 179,142 | 129,425 | |||||||||||
Savings deposits | 144,831 | 137,096 | |||||||||||
Certificates of deposit of $100,000 or more | 137,147 | 134,337 | |||||||||||
Other certificates and time deposits | 146,923 | 146,121 | |||||||||||
Total deposits | $ | 1,482,319 | $ | 1,291,520 | |||||||||
Certificates and Other Time Deposits for Both Retail and Brokered | Certificates and other time deposits for both retail and brokered maturing in years ending December 31 are as follows: | ||||||||||||
Retail | Brokered | Total | |||||||||||
2015 | $ | 114,468 | $ | 10,913 | $ | 125,381 | |||||||
2016 | 46,265 | 7,302 | 53,567 | ||||||||||
2017 | 42,482 | 2,677 | 45,159 | ||||||||||
2018 | 26,332 | — | 26,332 | ||||||||||
2019 | 15,275 | — | 15,275 | ||||||||||
Thereafter | 18,356 | — | 18,356 | ||||||||||
$ | 263,178 | $ | 20,892 | $ | 284,070 | ||||||||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Borrowings | |||||||||
December 31 | December 31 | ||||||||
2014 | 2013 | ||||||||
Federal Home Loan Bank advances, variable and fixed rates ranging from 0.32% to 7.53%, due at various dates through November 15, 2024 | $ | 116,473 | $ | 75,050 | |||||
Securities sold under agreements to repurchase | 139,725 | 140,246 | |||||||
Federal funds purchased | 95,000 | 41,000 | |||||||
Total borrowings | $ | 351,198 | $ | 256,296 | |||||
Contractual Maturities | Contractual maturities in years ending December 31: | ||||||||
2015 | $ | 214,340 | |||||||
2016 | 27,432 | ||||||||
2017 | 47,539 | ||||||||
2018 | 1,111 | ||||||||
2019 | 50,293 | ||||||||
Thereafter | 10,483 | ||||||||
$ | 351,198 | ||||||||
Income_Tax_Tables
Income Tax (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Reconciliation of Income Taxes | December 31 | December 31 | December 31 | ||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax expense | |||||||||||||
Currently payable | |||||||||||||
Federal | $ | 4,710 | $ | 3,900 | $ | 5,582 | |||||||
State | (149 | ) | (88 | ) | 120 | ||||||||
Deferred | 1,594 | 3,236 | 2,744 | ||||||||||
Total income tax expense | $ | 6,155 | $ | 7,048 | $ | 8,446 | |||||||
Reconciliation of federal statutory to actual tax expense | |||||||||||||
Federal statutory income tax at 35% | $ | 8,488 | $ | 9,424 | $ | 9,800 | |||||||
Tax exempt interest | (1,628 | ) | (1,517 | ) | (1,419 | ) | |||||||
Tax exempt income | (366 | ) | (362 | ) | (359 | ) | |||||||
Other tax exempt income | (309 | ) | (342 | ) | — | ||||||||
Nondeductible and other | (30 | ) | (176 | ) | (177 | ) | |||||||
Effect of state income taxes | — | 21 | 601 | ||||||||||
Actual tax expense | $ | 6,155 | $ | 7,048 | $ | 8,446 | |||||||
Reconciliation of Deferred Tax Assets & Liabilities | |||||||||||||
December 31 | December 31 | ||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Allowance for loan losses | $ | 5,680 | $ | 5,677 | |||||||||
Net operating loss | 3,509 | 2,977 | |||||||||||
Director and employee benefits | 1,953 | 1,828 | |||||||||||
Unrealized loss on AFS securities and fair value hedge | 588 | 931 | |||||||||||
Other | 596 | 537 | |||||||||||
Total assets | 12,326 | 11,950 | |||||||||||
Liabilities | |||||||||||||
Depreciation | (1,563 | ) | (1,424 | ) | |||||||||
Difference in expense recognition | — | (368 | ) | ||||||||||
State tax | (126 | ) | (236 | ) | |||||||||
Federal Home Loan Bank stock dividends | (200 | ) | (295 | ) | |||||||||
Difference in basis of intangible assets | (2,839 | ) | (2,189 | ) | |||||||||
FHLB Penalty | (283 | ) | (508 | ) | |||||||||
Other | (1,303 | ) | (1,188 | ) | |||||||||
Total liabilities | (6,314 | ) | (6,208 | ) | |||||||||
Net deferred tax asset | $ | 6,012 | $ | 5,742 | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Equity [Abstract] | |||||||||
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) included in capital are as follows: | ||||||||
December 31 | December 31 | ||||||||
2014 | 2013 | ||||||||
Unrealized gain on securities available for sale | $ | 4,018 | $ | 164 | |||||
Unamortized gain on securities held to maturity, previously transferred from AFS | 1,658 | — | |||||||
Unrealized loss on derivative instruments | (3,337 | ) | (2,826 | ) | |||||
Tax effect | (818 | ) | 933 | ||||||
Total accumulated other comprehensive income (loss) | $ | 1,521 | $ | (1,729 | ) | ||||
Regulatory_Capital_Tables
Regulatory Capital (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||
Summary of Regulatory Capital Requirement | |||||||||||||||||||||||||
For Capital1 | For Well1 | ||||||||||||||||||||||||
Actual | Adequacy Purposes | Capitalized Purposes | |||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Total capital1 (to risk-weighted assets) | |||||||||||||||||||||||||
Consolidated | $ | 212,276 | 14.48 | % | $ | 117,280 | 8 | % | N/A | N/A | |||||||||||||||
Bank | 192,604 | 13.08 | % | 117,801 | 8 | % | $ | 147,251 | 10 | % | |||||||||||||||
Tier 1 capital1 (to risk-weighted assets) | |||||||||||||||||||||||||
Consolidated | 195,775 | 13.35 | % | 58,659 | 4 | % | N/A | N/A | |||||||||||||||||
Bank | 176,103 | 11.96 | % | 58,897 | 4 | % | 88,346 | 6 | % | ||||||||||||||||
Tier 1 capital1 (to average assets) | |||||||||||||||||||||||||
Consolidated | 195,775 | 9.76 | % | 80,236 | 4 | % | N/A | N/A | |||||||||||||||||
Bank | 176,103 | 8.8 | % | 80,047 | 4 | % | 100,059 | 5 | % | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Total capital1 (to risk-weighted assets) | |||||||||||||||||||||||||
Consolidated | $ | 192,904 | 16.33 | % | $ | 94,503 | 8 | % | N/A | N/A | |||||||||||||||
Bank | 173,634 | 14.67 | % | 94,688 | 8 | % | $ | 118,360 | 10 | % | |||||||||||||||
Tier 1 capital1 (to risk-weighted assets) | |||||||||||||||||||||||||
Consolidated | 178,115 | 15.08 | % | 47,245 | 4 | % | N/A | N/A | |||||||||||||||||
Bank | 158,827 | 13.42 | % | 47,340 | 4 | % | 71,011 | 6 | % | ||||||||||||||||
Tier 1 capital1 (to average assets) | |||||||||||||||||||||||||
Consolidated | 178,115 | 10.28 | % | 69,305 | 4 | % | N/A | N/A | |||||||||||||||||
Bank | 158,827 | 9.18 | % | 69,206 | 4 | % | 86,507 | 5 | % | ||||||||||||||||
1 | As defined by regulatory agencies |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value of Options Granted | The fair value of options granted is estimated on the date of the grant using an option-pricing model with the following weighted-average assumptions: | ||||||||||||||||
December 31 | 2014 | 2013 | 2012 | ||||||||||||||
Dividend yields | 2.01 | % | 1.98 | % | 2.56 | % | |||||||||||
Volatility factors of expected market price of common stock | 29.54 | % | 29.75 | % | 29.47 | % | |||||||||||
Risk-free interest rates | 2.66 | % | 2.16 | % | 1.84 | % | |||||||||||
Expected life of options | 8 years | 8 years | 8 years | ||||||||||||||
Summary of Status of Non-vested, Restricted and Performance Shares | A summary of the status of Horizon’s non-vested, restricted and performance shares as of December 31, 2014 is presented below: | ||||||||||||||||
Weighted | |||||||||||||||||
Average | |||||||||||||||||
Grant Date | |||||||||||||||||
Shares | Fair Value | ||||||||||||||||
Non-vested beginning of year | 85,875 | $ | 14.17 | ||||||||||||||
Vested | — | ||||||||||||||||
Granted | 9,007 | 22.2 | |||||||||||||||
Forfeited | (10,125 | ) | 12.88 | ||||||||||||||
Non-vested, end of year | 84,757 | 15.18 | |||||||||||||||
Stock Options 2003 Plan [Member] | |||||||||||||||||
Summary of Option Activity under 2003 Plan | A summary of option activity under the 2003 Plan as of December 31, 2014, and changes during the year then ended, is presented below: | ||||||||||||||||
Weighted- | |||||||||||||||||
Average | |||||||||||||||||
Weighted- | Remaining | Aggregate | |||||||||||||||
Average | Contractual | Intrinsic | |||||||||||||||
Shares | Exercise Price | Term | Value | ||||||||||||||
Outstanding, beginning of year | 91,447 | $ | 11.29 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (11,250 | ) | 10.84 | ||||||||||||||
Forfeited | (2,250 | ) | 11.6 | ||||||||||||||
Outstanding, end of year | 77,947 | 11.35 | 5.19 | $ | 1,152,901 | ||||||||||||
Exercisable, end of year | 59,215 | 11.23 | 4.8 | 882,658 | |||||||||||||
Stock Options 2013 Plan [Member] | |||||||||||||||||
Summary of Option Activity under 2003 Plan | A summary of option activity under the 2013 Plan as of December 31, 2014, and changes during the year then ended, is presented below: | ||||||||||||||||
Weighted- | |||||||||||||||||
Average | |||||||||||||||||
Weighted- | Remaining | Aggregate | |||||||||||||||
Average | Contractual | Intrinsic | |||||||||||||||
Shares | Exercise Price | Term | Value | ||||||||||||||
Outstanding, beginning of year | 46,888 | $ | 20.27 | ||||||||||||||
Granted | 40,259 | 22.36 | |||||||||||||||
Exercised | — | — | |||||||||||||||
Forfeited | (3,000 | ) | 21.12 | ||||||||||||||
Outstanding, end of year | 87,147 | 21.24 | 8.84 | $ | 412,000 | ||||||||||||
Exercisable, end of year | 14,496 | 20.23 | 8.46 | 85,728 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||
Fair Value of Derivative Financial Instruments | The following tables summarize the fair value of derivative financial instruments utilized by Horizon Bancorp: | ||||||||||||||
Asset Derivative | Liability Derivatives | ||||||||||||||
December 31, 2014 | December 31, 2014 | ||||||||||||||
Derivatives designated as hedging instruments (Unaudited) | Balance Sheet | Fair | Balance Sheet | Fair Value | |||||||||||
Location | Value | Location | |||||||||||||
Interest rate contracts | Loans | $ | — | Other liabilities | $ | 1,208 | |||||||||
Interest rate contracts | Other Assets | 1,208 | Other liabilities | 3,339 | |||||||||||
Total derivatives designated as hedging instruments | 1,208 | 4,547 | |||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||
Mortgage loan contracts | Other assets | 447 | Other liabilities | — | |||||||||||
Total derivatives not designated as hedging instruments | 447 | — | |||||||||||||
Total derivatives | $ | 1,655 | $ | 4,547 | |||||||||||
Asset Derivative | Liability Derivatives | ||||||||||||||
December 31, 2013 | December 31, 2013 | ||||||||||||||
Derivatives designated as hedging instruments (Unaudited) | Balance Sheet | Fair Value | Balance Sheet | Fair Value | |||||||||||
Location | Location | ||||||||||||||
Interest rate contracts | Loans | $ | 7 | Other liabilities | $ | (53 | ) | ||||||||
Interest rate contracts | Other Assets | (60 | ) | Other liabilities | 2,826 | ||||||||||
Total derivatives designated as hedging instruments | (53 | ) | 2,773 | ||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||
Mortgage loan contracts | Other assets | 212 | Other liabilities | 22 | |||||||||||
Total derivatives not designated as hedging instruments | 212 | 22 | |||||||||||||
Total derivatives | $ | 159 | $ | 2,795 | |||||||||||
Effect of Derivative Instruments on Consolidated Statement of Income Derivative in Cash Flow Hedging Relationship | The effect of the derivative instruments on the consolidated statement of income for the twelve month periods ended is as follows: | ||||||||||||||
Amount of Loss Recognized in Other Comprehensive | |||||||||||||||
Income on Derivative (Effective Portion) | |||||||||||||||
Derivative in cash flow | Years Ended December 31 | ||||||||||||||
hedging relationship | 2014 | 2013 | 2012 | ||||||||||||
Interest rate contracts | $ | (332 | ) | $ | 1,734 | $ | (376 | ) | |||||||
Effect of Derivative Instruments on Consolidated Statement of Income Derivative in Fair Value Hedging Relationship | |||||||||||||||
Amount of Gain (Loss) Recognized on Derivative | |||||||||||||||
Derivative in fair value | Location of gain (loss) | Years Ended December 31 | |||||||||||||
hedging relationship | recognized on derivative | 2014 | 2013 | 2012 | |||||||||||
Interest rate contracts | Interest income - loans | $ | 1,261 | $ | (2,267 | ) | $ | 28 | |||||||
Interest rate contracts | Interest income - loans | (1,261 | ) | 2,267 | (28 | ) | |||||||||
Total | $ | — | $ | — | $ | — | |||||||||
Amount of Gain (Loss) Recognized on Derivative | |||||||||||||||
Derivative not designated | Location of gain (loss) | Years Ended December 31 | |||||||||||||
as hedging relationship | recognized on derivative | 2014 | 2013 | 2012 | |||||||||||
Mortgage contracts | Other income - gain on sale of loans | $ | 256 | $ | (667 | ) | $ | 196 |
Disclosures_About_Fair_Value_o1
Disclosures About Fair Value of Assets and Liabilities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Fair Value Measurements of Assets and Liabilities Recognized on a Recurring Basis | The following table presents the fair value measurements of assets and liabilities recognized in the accompanying financial statements measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at the following: | ||||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
December 31, 2014 | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
U.S. Treasury and federal agencies | $ | 26,823 | $ | — | $ | 26,823 | $ | — | |||||||||
State and municipal | 47,952 | — | 47,952 | — | |||||||||||||
Federal agency collateralized mortgage obligations | 122,860 | — | 122,860 | — | |||||||||||||
Federal agency mortgage-backed pools | 125,395 | — | 125,395 | — | |||||||||||||
Private labeled mortgage-backed pools | 689 | — | 689 | — | |||||||||||||
Corporate notes | 45 | — | 45 | — | |||||||||||||
Total available-for-sale securities | 323,764 | — | 323,764 | — | |||||||||||||
Hedged loans | 101,445 | — | 101,445 | — | |||||||||||||
Forward sale commitments | 447 | — | 447 | — | |||||||||||||
Interest rate swap agreements | (4,546 | ) | — | (4,546 | ) | — | |||||||||||
Commitments to originate loans | — | — | — | — | |||||||||||||
December 31, 2013 | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
U.S. Treasury and federal agencies | $ | 43,134 | $ | — | $ | 43,134 | $ | — | |||||||||
State and municipal | 177,898 | — | 177,898 | — | |||||||||||||
Federal agency collateralized mortgage obligations | 114,706 | — | 114,706 | — | |||||||||||||
Federal agency mortgage-backed pools | 170,894 | — | 170,894 | — | |||||||||||||
Private labeled mortgage-backed pools | 1,226 | — | 1,226 | — | |||||||||||||
Corporate notes | 733 | — | 733 | — | |||||||||||||
Total available-for-sale securities | 508,591 | — | 508,591 | — | |||||||||||||
Hedged loans | 95,372 | — | 95,372 | — | |||||||||||||
Forward sale commitments | 212 | — | 212 | — | |||||||||||||
Interest rate swap agreements | (2,773 | ) | — | (2,773 | ) | — | |||||||||||
Commitments to originate loans | (22 | ) | — | (22 | ) | — | |||||||||||
Realized Gains and Losses Included in Net Income for Periods in Consolidated Statements of Income | Realized gains and losses included in net income for the periods are reported in the consolidated statements of income as follows: | ||||||||||||||||
Years Ended December 31 | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Non Interest Income | |||||||||||||||||
Total gains and losses from: | |||||||||||||||||
Hedged loans | $ | 1,261 | $ | (2,267 | ) | $ | 28 | ||||||||||
Fair value interest rate swap agreements | (1,261 | ) | 2,267 | (28 | ) | ||||||||||||
Derivative loan commitments | 256 | (667 | ) | 196 | |||||||||||||
$ | 256 | $ | (667 | ) | $ | 196 | |||||||||||
Other Assets Measured at Fair Value on Nonrecurring Basis | Certain other assets are measured at fair value on a nonrecurring basis in the ordinary course of business and are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment): | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
December 31, 2014 | |||||||||||||||||
Impaired loans | $ | 9,464 | $ | — | $ | — | $ | 9,464 | |||||||||
Mortgage servicing rights | 7,642 | — | — | 7,642 | |||||||||||||
December 31, 2013 | |||||||||||||||||
Impaired loans | $ | 6,114 | $ | — | $ | — | $ | 6,114 | |||||||||
Mortgage servicing rights | 7,039 | — | — | 7,039 | |||||||||||||
Qualitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements, Other than Goodwill | The following table presents qualitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at December 31, 2014. | ||||||||||||||||
Fair Value at | Valuation | Unobservable Inputs | Range (Weighted | ||||||||||||||
December 31, 2014 | Technique | Average) | |||||||||||||||
Impaired loans | $ | 9,464 | Collateral based measurement | Discount to reflect current market | 10% -15% (12%) | ||||||||||||
conditions and ultimate | |||||||||||||||||
collectability | |||||||||||||||||
Mortgage servicing rights | $ | 7,642 | Discounted cashflows | Discount rate, Constant prepayment | 10% -15% (12%), | ||||||||||||
rate, Probably of default | |||||||||||||||||
4% - 7% (4.6%), | |||||||||||||||||
1% - 10% (4.5%) | |||||||||||||||||
Fair Value at | Valuation | Unobservable Inputs | Range (Weighted | ||||||||||||||
December 31, 2013 | Technique | Average) | |||||||||||||||
Impaired loans | $ | 6,114 | Collateral based measurement | Discount to reflect current market | 10% -15% (12%) | ||||||||||||
conditions and ultimate | |||||||||||||||||
collectability | |||||||||||||||||
Mortgage servicing rights | $ | 7,039 | Discounted cashflows | Discount rate, Constant prepayment | 10% - 15% (12%), | ||||||||||||
rate, Probably of default | 4% - 7% (4.6%), | ||||||||||||||||
1% - 10% (4.5%) |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Summary of Estimated Fair Values of Financial Instruments | The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall. | ||||||||||||||||
December 31, 2014 | |||||||||||||||||
Carrying | Quoted Prices | Significant | Significant | ||||||||||||||
Amount | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $ | 43,476 | $ | 43,476 | $ | — | $ | — | |||||||||
Investment securities, held to maturity | 165,767 | — | — | 169,904 | |||||||||||||
Loans held for sale | 6,143 | — | — | 6,143 | |||||||||||||
Loans excluding loan level hedges, net | 1,260,608 | — | — | 1,295,133 | |||||||||||||
Stock in FHLB and FRB | 11,348 | — | 11,348 | — | |||||||||||||
Interest receivable | 8,246 | — | 8,246 | — | |||||||||||||
Liabilities | |||||||||||||||||
Non-interest bearing deposits | $ | 267,667 | $ | 267,667 | $ | — | $ | — | |||||||||
Interest-bearing deposits | 1,214,652 | — | 1,158,912 | — | |||||||||||||
Borrowings | 351,198 | — | 348,597 | — | |||||||||||||
Subordinated debentures | 32,642 | — | 32,669 | — | |||||||||||||
Interest payable | 497 | — | 497 | — | |||||||||||||
December 31, 2013 | |||||||||||||||||
Carrying | Quoted Prices | Significant | Significant | ||||||||||||||
Amount | in Active | Other | Unobservable | ||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $ | 31,721 | $ | 31,721 | $ | — | $ | — | |||||||||
Investment securities, held to maturity | 9,910 | — | — | 9,910 | |||||||||||||
Loans held for sale | 3,281 | — | — | 3,281 | |||||||||||||
Loans excluding loan level hedges, net | 957,464 | — | — | 975,910 | |||||||||||||
Stock in FHLB and FRB | 14,184 | — | 14,184 | — | |||||||||||||
Interest receivable | 7,501 | — | 7,501 | — | |||||||||||||
Liabilities | |||||||||||||||||
Non-interest bearing deposits | $ | 231,096 | $ | 231,096 | $ | — | $ | — | |||||||||
Interest-bearing deposits | 1,060,424 | — | 1,002,980 | — | |||||||||||||
Borrowings | 256,296 | — | 257,093 | — | |||||||||||||
Subordinated debentures | 32,486 | — | 32,528 | — | |||||||||||||
Interest payable | 506 | — | 506 | — |
Condensed_Financial_Informatio1
Condensed Financial Information (Parent Company Only) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Condensed Balance Sheets | Condensed Balance Sheets | ||||||||||||
December 31 | December 31 | ||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Total cash and cash equivalents | $ | 19,195 | $ | 16,807 | |||||||||
Investment in Bank | 211,928 | 181,808 | |||||||||||
Other assets | 2,758 | 3,664 | |||||||||||
Total assets | $ | 233,881 | $ | 202,279 | |||||||||
Liabilities | |||||||||||||
Subordinated debentures | $ | 32,642 | $ | 32,486 | |||||||||
Other liabilities | 6,825 | 5,273 | |||||||||||
Stockholders’ Equity | 194,414 | 164,520 | |||||||||||
Total liabilities and stockholders’ equity | $ | 233,881 | $ | 202,279 | |||||||||
Condensed Statements of Income | Condensed Statements of Income | ||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Operating Income (Expense) | |||||||||||||
Dividend income from Bank | $ | 12,500 | $ | 7,500 | $ | 16,500 | |||||||
Investment income | 12 | 4 | — | ||||||||||
Other income | 17 | 175 | — | ||||||||||
Interest expense | (2,009 | ) | (2,010 | ) | (1,950 | ) | |||||||
Employee benefit expense | (965 | ) | (811 | ) | (695 | ) | |||||||
Other expense | 883 | 646 | (200 | ) | |||||||||
Income Before Undistributed Income of Subsidiaries | 10,438 | 5,504 | 13,655 | ||||||||||
Undistributed Income of Subsidiaries | 6,814 | 13,144 | 4,766 | ||||||||||
Income Before Tax | 17,252 | 18,648 | 18,421 | ||||||||||
Income Tax Benefit | 849 | 1,228 | 1,122 | ||||||||||
Net Income | 18,101 | 19,876 | 19,543 | ||||||||||
Preferred stock dividend | (133 | ) | (370 | ) | (481 | ) | |||||||
Net Income Available to Common Shareholders | $ | 17,968 | $ | 19,506 | $ | 19,062 | |||||||
Condensed Statements of Comprehensive Income | Condensed Statements of Comprehensive Income | ||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net Income | $ | 18,101 | $ | 19,876 | $ | 19,543 | |||||||
Other Comprehensive Income (Loss) | |||||||||||||
Change in fair value of derivative instruments, net of taxes | (332 | ) | 1,734 | (376 | ) | ||||||||
Unrealized appreciation for the period on held-to-maturity securities, net of taxes | (209 | ) | |||||||||||
Unrealized appreciation (depreciation) on available-for-sale securities, net of taxes | 4,432 | (12,320 | ) | 1,636 | |||||||||
Less: reclassification adjustment for realized gains included in net income, net of taxes | (642 | ) | (244 | ) | 1 | ||||||||
3,249 | (10,830 | ) | 1,259 | ||||||||||
Comprehensive Income | $ | 21,350 | $ | 9,046 | $ | 20,802 | |||||||
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows | ||||||||||||
Years Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Operating Activities | |||||||||||||
Net income | $ | 18,101 | $ | 19,876 | $ | 19,543 | |||||||
Items not requiring (providing) cash | |||||||||||||
Equity in undistributed net income of subsidiaries | (6,814 | ) | (13,144 | ) | (4,766 | ) | |||||||
Change in | |||||||||||||
Income taxes receivable | 434 | (793 | ) | (137 | ) | ||||||||
Share based compensation | 203 | 48 | 33 | ||||||||||
Amortization of unearned compensation | 363 | 288 | 187 | ||||||||||
Issuance of restricted shares | — | — | 115 | ||||||||||
Other assets | 472 | 626 | (176 | ) | |||||||||
Other liabilities | 1,377 | 97 | 1,128 | ||||||||||
Net cash provided by operating activities | 14,136 | 6,998 | 15,927 | ||||||||||
Investing Activities | |||||||||||||
Acquisition of Summit | (7,036 | ) | — | — | |||||||||
Acquisition of Heartland | — | — | (7,248 | ) | |||||||||
Net cash used in investing activities | (7,036 | ) | — | (7,248 | ) | ||||||||
Financing Activities | |||||||||||||
Dividends paid on preferred shares | (133 | ) | (370 | ) | (481 | ) | |||||||
Dividends paid on common shares | (4,744 | ) | (3,655 | ) | (3,047 | ) | |||||||
Exercise of stock options | 165 | 195 | 226 | ||||||||||
Net cash used in financing activities | (4,712 | ) | (3,830 | ) | (3,302 | ) | |||||||
Net Change in Cash and Cash Equivalents | 2,388 | 3,168 | 5,377 | ||||||||||
Cash and Cash Equivalents at Beginning of Year | 16,807 | 13,639 | 8,262 | ||||||||||
Cash and Cash Equivalents at End of Year | $ | 19,195 | $ | 16,807 | $ | 13,639 | |||||||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Summary of Quarterly Consolidated Results of Operations | The following is a summary of the quarterly consolidated results of operations: | ||||||||||||||||
Three Months Ended 2014 | March 31 | June 30 | September 30 | December 31 | |||||||||||||
Interest income | $ | 16,467 | $ | 20,122 | $ | 19,851 | $ | 19,765 | |||||||||
Interest expense | 3,195 | 3,334 | 3,451 | 3,242 | |||||||||||||
Net interest income | 13,272 | 16,788 | 16,400 | 16,523 | |||||||||||||
Provision for loan losses | — | 339 | 1,741 | 978 | |||||||||||||
Gain on sale of securities | — | — | 988 | — | |||||||||||||
Net income | 3,417 | 4,778 | 4,958 | 4,948 | |||||||||||||
Net income available to common shareholders | $ | 3,386 | $ | 4,747 | $ | 4,918 | $ | 4,917 | |||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.39 | $ | 0.52 | $ | 0.53 | $ | 0.53 | |||||||||
Diluted | 0.38 | 0.5 | 0.51 | 0.51 | |||||||||||||
Average shares outstanding: | |||||||||||||||||
Basic | 8,630,966 | 9,182,986 | 9,208,707 | 9,212,156 | |||||||||||||
Diluted | 9,021,786 | 9,560,939 | 9,588,332 | 9,628,240 | |||||||||||||
Three Months Ended 2013 | March 31 | June 30 | September 30 | December 31 | |||||||||||||
Interest income | $ | 19,429 | $ | 19,977 | $ | 18,041 | $ | 17,436 | |||||||||
Interest expense | 3,419 | 3,402 | 3,372 | 3,310 | |||||||||||||
Net interest income | 16,010 | 16,575 | 14,669 | 14,126 | |||||||||||||
Provision for loan losses | 2,084 | 729 | 104 | (997 | ) | ||||||||||||
Gain on sale of securities | 368 | — | 6 | — | |||||||||||||
Net income | 5,311 | 5,665 | 4,785 | 4,115 | |||||||||||||
Net income available to common shareholders | $ | 5,165 | $ | 5,569 | $ | 4,719 | $ | 4,052 | |||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.6 | $ | 0.65 | $ | 0.55 | $ | 0.47 | |||||||||
Diluted | 0.58 | 0.62 | 0.52 | 0.45 | |||||||||||||
Average shares outstanding: | |||||||||||||||||
Basic | 8,617,466 | 8,617,466 | 8,618,969 | 8,623,360 | |||||||||||||
Diluted | 8,980,655 | 8,974,103 | 9,019,211 | 9,020,289 |
Nature_of_Operations_and_Summa3
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 03, 2014 | |
Facilities | ||||
Business | ||||
Valuation_Techniques | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Full service facilities maintained by bank | 31 | |||
Number of business conduct | 0 | |||
Number of valuation techniques to measure fair value | 3 | |||
Factor considered to be significant for fair value measurement | 10.00% | |||
Accrual of interest discontinued description | Principal or interest is past due 90 days or more, and the loan is not well secured or in the process of collection, or when serious doubt exists as to the collectability of a loan, the accrual of interest is discontinued | |||
Commercial loans as a percentage of total loan | 50.00% | |||
Residential real estate loans as a percentage of total loan | 18.00% | |||
Installment loans as a percentage of total loan | 23.00% | |||
Mortgage warehouse loans as a percentage of total loan | 9.00% | |||
Period in which loan sold by mortgage company | 30 days | |||
Minimum period loan held by mortgage company | 90 days | |||
Mortgage warehousing maximum pay off period | 30 days | |||
Costs are deferred due to the term | $0 | |||
Impaired loans charged off | 90 days | |||
Status of Non-Accrual of Loan | 90 days | |||
Impairment of Loan | 30 days | |||
Intangibles, Gross | 4,000,000 | |||
Goodwill | 28,176,000 | 19,748,000 | 8,428,000 | |
Uncertain tax positions recognized | 50.00% | |||
Shares, non-dilutive | 2,500 | 0 | 8,438 | |
Amount available for payment of dividend | 24,700,000 | |||
Cash and cash equivalents maximum maturity period | 1 day | |||
Compensation expense | 566,000 | 336,000 | 220,000 | |
Reclassifications effect on net income | $0 | |||
Buildings and Improvements [Member] | Minimum [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Useful Life for depreciation | 3 years | |||
Buildings and Improvements [Member] | Maximum [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Useful Life for depreciation | 40 years | |||
Furniture and Equipment [Member] | Minimum [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Useful Life for depreciation | 2 years | |||
Furniture and Equipment [Member] | Maximum [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Useful Life for depreciation | 20 years |
Nature_of_Operations_and_Summa4
Nature of Operations and Summary of Significant Accounting Policies - Summary of Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic earnings per share | |||||||||||
Net income | $4,948 | $4,958 | $4,778 | $3,417 | $4,115 | $4,785 | $5,665 | $5,311 | $18,101 | $19,876 | $19,543 |
Less: Preferred stock dividends | 133 | 370 | 481 | ||||||||
Net income available to common shareholders | 4,917 | 4,918 | 4,747 | 3,386 | 4,052 | 4,719 | 5,569 | 5,165 | 17,968 | 19,506 | 19,062 |
Weighted average common shares outstanding | 9,212,156 | 9,208,707 | 9,182,986 | 8,630,966 | 8,623,360 | 8,618,969 | 8,617,466 | 8,617,466 | 9,060,702 | 8,619,330 | 7,974,241 |
Basic Earnings Per Share | $0.53 | $0.53 | $0.52 | $0.39 | $0.47 | $0.55 | $0.65 | $0.60 | $1.98 | $2.26 | $2.39 |
Diluted earnings per share | |||||||||||
Net income available to common shareholders | $17,968 | $19,506 | $19,062 | ||||||||
Weighted average common shares outstanding | 9,212,156 | 9,208,707 | 9,182,986 | 8,630,966 | 8,623,360 | 8,618,969 | 8,617,466 | 8,617,466 | 9,060,702 | 8,619,330 | 7,974,241 |
Effect of dilutive securities: | |||||||||||
Warrants | 315,679 | 303,970 | 245,514 | ||||||||
Weighted average shares outstanding | 9,628,240 | 9,588,332 | 9,560,939 | 9,021,786 | 9,020,289 | 9,019,211 | 8,974,103 | 8,980,655 | 9,454,125 | 9,000,963 | 8,271,177 |
Diluted Earnings Per Share | $0.51 | $0.51 | $0.50 | $0.38 | $0.45 | $0.52 | $0.62 | $0.58 | $1.90 | $2.17 | $2.30 |
Restricted Stock [Member] | |||||||||||
Effect of dilutive securities: | |||||||||||
Effect of dilutive securities | 39,476 | 40,160 | 23,181 | ||||||||
Stock Options [Member] | |||||||||||
Effect of dilutive securities: | |||||||||||
Effect of dilutive securities | 38,268 | 37,503 | 28,241 |
Acquisition_Additional_Informa
Acquisition - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Apr. 03, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||
Common stock outstanding | 9,213,036 | 8,630,966 | |
Net intangible assets acquired | $822,000 | ||
Acquisition of goodwill | 28,176,000 | 8,428,000 | 19,748,000 |
Purchase price of the business assets | 2,548,000 | ||
Summit [Member] | |||
Business Acquisition [Line Items] | |||
Date of acquisition agreement | 3-Apr-14 | ||
Exchange ratio per share to Heartland shareholder | 49.04% | ||
Share of common stock outstanding per share | $5.15 | ||
Common stock outstanding | 1,164,442 | ||
Common stock issued | 570,820 | ||
Market closing price per share | $22.23 | ||
Transaction value is estimated | 18,900,000 | ||
Costs related to the acquisition | 1,300,000 | ||
Net tangible assets acquired | 19,900,000 | ||
Net intangible assets acquired | 822,000 | ||
Acquisition of goodwill | 8,400,000 | ||
Purchase price of the business assets | 4,400,000 | ||
Core deposit intangible amortization period | 7 years | ||
Loan portfolio acquired | 130,500,000 | ||
Discount on loan portfolio acquired | 6,400,000 | ||
Performing portion of the loan portfolio acquired | 106,200,000 | ||
Estimated fair value of performing portion of the loan portfolio | $104,600,000 |
Acquisition_Schedule_of_Prelim
Acquisition - Schedule of Preliminary Purchase Price of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Dec. 31, 2014 | Apr. 03, 2014 | Dec. 31, 2013 |
ASSETS | |||
Cash and due from banks | $15,161,000 | ||
Total loans | 124,081,000 | ||
Premises and equipment, net | 2,548,000 | ||
FRB and FHLB stock | 2,136,000 | ||
Goodwill | 28,176,000 | 8,428,000 | 19,748,000 |
Core deposit intangible | 822,000 | ||
Interest receivable | 347,000 | ||
Cash value life insurance | 2,185,000 | ||
Other assets | 2,877,000 | ||
Total assets purchased | 158,585,000 | ||
Deposits | |||
Non-interest bearing | 27,274,000 | ||
NOW accounts | 16,332,000 | ||
Savings and money market | 35,045,000 | ||
Certificates of deposits | 42,368,000 | ||
Total deposits | 121,019,000 | ||
Borrowings | 16,990,000 | ||
Interest payable | 52,000 | ||
Other liabilities | 599,000 | ||
Total liabilities assumed | 138,660,000 | ||
Residential Mortgage [Member] | |||
ASSETS | |||
Total loans | 43,448,000 | ||
Commercial [Member] | |||
ASSETS | |||
Total loans | 70,441,000 | ||
Consumer [Member] | |||
ASSETS | |||
Total loans | $10,192,000 |
Acquisition_Schedule_of_Acquir
Acquisition - Schedule of Acquired Loans Accounted for in Accordance with ASC 310-30 (Detail) (USD $) | Apr. 03, 2014 |
In Thousands, unless otherwise specified | |
Receivables [Abstract] | |
Contractually required principal and interest at acquisition | $14,460 |
Contractual cash flows not expected to be collected (nonaccretable differences) | 3,146 |
Expected cash flows at acquisition | 11,314 |
Interest component of expected cash flows (accretable discount) | 1,688 |
Fair value of acquired loans accounted for under ASC 310-30 | $9,626 |
Cash_Equivalents_Additional_In
Cash Equivalents - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Cash and Cash Equivalents [Abstract] | |
Cash equivalent maximum maturity period | 3 months |
Increase in Cash account over the insured limit | $8.60 |
Securities_Fair_Value_of_Secur
Securities - Fair Value of Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | $319,746 | $508,427 |
Held-to-maturity, Amortized Cost | 165,767 | 9,910 |
Gross Unrealized Gains | 5,697 | 9,015 |
Held-to-maturity, Gross Unrealized Gains | 4,244 | |
Gross Unrealized Losses | -1,679 | -8,851 |
Held-to-maturity, Gross Unrealized Losses | -107 | |
Available-for-sale Securities, Fair Value | 323,764 | 508,591 |
Held-to-maturity, Fair Value | 169,904 | 9,910 |
U.S. Treasury and Federal Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 26,996 | 43,808 |
Held-to-maturity, Amortized Cost | 9,804 | |
Gross Unrealized Gains | 56 | 133 |
Held-to-maturity, Gross Unrealized Gains | 82 | |
Gross Unrealized Losses | -229 | -807 |
Available-for-sale Securities, Fair Value | 26,823 | 43,134 |
Held-to-maturity, Fair Value | 9,886 | |
State and Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 46,535 | 176,670 |
Held-to-maturity, Amortized Cost | 129,595 | 9,910 |
Gross Unrealized Gains | 1,462 | 4,405 |
Held-to-maturity, Gross Unrealized Gains | 3,398 | |
Gross Unrealized Losses | -45 | -3,177 |
Held-to-maturity, Gross Unrealized Losses | -106 | |
Available-for-sale Securities, Fair Value | 47,952 | 177,898 |
Held-to-maturity, Fair Value | 132,887 | 9,910 |
Federal Agency Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 122,930 | 116,047 |
Held-to-maturity, Amortized Cost | 4,039 | |
Gross Unrealized Gains | 975 | 1,242 |
Held-to-maturity, Gross Unrealized Gains | 35 | |
Gross Unrealized Losses | -1,045 | -2,583 |
Held-to-maturity, Gross Unrealized Losses | -1 | |
Available-for-sale Securities, Fair Value | 122,860 | 114,706 |
Held-to-maturity, Fair Value | 4,073 | |
Federal Agency Mortgage-backed Pools [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 122,583 | 170,006 |
Held-to-maturity, Amortized Cost | 22,329 | |
Gross Unrealized Gains | 3,172 | 3,172 |
Held-to-maturity, Gross Unrealized Gains | 729 | |
Gross Unrealized Losses | -360 | -2,284 |
Available-for-sale Securities, Fair Value | 125,395 | 170,894 |
Held-to-maturity, Fair Value | 23,058 | |
Private Labeled Mortgage-backed Pools [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 670 | 1,188 |
Gross Unrealized Gains | 19 | 38 |
Available-for-sale Securities, Fair Value | 689 | 1,226 |
Corporate Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 32 | 708 |
Gross Unrealized Gains | 13 | 25 |
Available-for-sale Securities, Fair Value | $45 | $733 |
Securities_Additional_Informat
Securities - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||
Apr. 01, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 01, 2014 | |
Security | |||||
Amortized Cost and Fair Value Debt Securities [Abstract] | |||||
Unrealized loss, other than temporary securities | $0 | ||||
Number of securities | 319 | ||||
Aggregate fair value of securities | 167,100,000 | ||||
Gain/Loss from net unrealized holdings, Net of tax | 1,300,000 | ||||
Unrealized gain or loss, Held to maturity | 0 | ||||
Tax effect of the proceeds from sale of securities | 346 | 131 | 0 | ||
Pledged of Fair Value of Securities as collateral | 159,700,000 | ||||
Amortization cost of securities as Collateral not Separately Reported | 157,400,000 | ||||
Debt Instrument Repurchase Agreement | 139,700,000 | ||||
Securities Pledged for Federal Home Loan Bank At Fair Value | 94,300,000 | ||||
Securities for Federal Home Loan Bank Not Separately Reported | 91,800,000 | ||||
Securities Pledged For Derivative At Fair Value | 13,000,000 | ||||
Securities Pledged For Derivative At Amortized Cost | 12,500,000 | ||||
Debt Instrument Derivative Swap Agreement | 4,500,000 | ||||
Debt Instrument Federal Home Loan Bank | $0 |
Securities_Amortized_Cost_and_
Securities - Amortized Cost and Fair Value of Securities Available for Sale and Held to Maturity (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost within one year | $6,098 | $3,643 |
Amortized cost one to five years | 44,720 | 49,198 |
Amortized cost for five to ten years | 16,147 | 106,225 |
Amortized cost for after ten years | 6,598 | 62,120 |
Total amortized cost | 73,563 | 221,186 |
Total available for sale investment securities, Amortized Cost | 319,746 | 508,427 |
Within one year, amortized cost | 9,910 | |
One to five years, amortized cost | 592 | |
Five to ten years, amortized cost | 99,225 | |
After ten years, amortized cost | 39,582 | |
Total amortized cost | 139,399 | 9,910 |
Total held to maturity investment securities, amortized cost | 165,767 | 9,910 |
Fair value within one year | 6,169 | 3,663 |
Fair value for one to five years | 45,093 | 49,627 |
Fair value for five to ten years | 16,768 | 107,424 |
Fair value for after ten years | 6,790 | 61,051 |
Total fair value | 74,820 | 221,765 |
Investment securities, available for sale | 323,764 | 508,591 |
Within one year, fair value | 9,910 | |
One to five years, fair value | 593 | |
five to ten years, fair value | 101,323 | |
After ten years, fair value | 40,857 | |
Total fair value | 142,773 | 9,910 |
Held-to-maturity, Fair Value | 169,904 | 9,910 |
Federal Agency Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 122,930 | 116,047 |
Total held to maturity investment securities, amortized cost | 4,039 | |
Investment securities, available for sale | 122,860 | 114,706 |
Held-to-maturity, Fair Value | 4,073 | |
Federal Agency Mortgage-backed Pools [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 122,583 | 170,006 |
Total held to maturity investment securities, amortized cost | 22,329 | |
Investment securities, available for sale | 125,395 | 170,894 |
Held-to-maturity, Fair Value | 23,058 | |
Private Labeled Mortgage-backed Pools [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 670 | 1,188 |
Investment securities, available for sale | $689 | $1,226 |
Securities_Gross_Unrealized_Lo
Securities - Gross Unrealized Losses and Fair Value of Company's Investments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value less than 12 months | $34,286 | $241,541 |
Fair value more than 12 months | 90,657 | 11,807 |
Total fair value | 124,941 | 253,348 |
Unrealized losses less than 12 months | -225 | -8,205 |
Unrealized losses more than 12 months | -1,560 | -646 |
Total unrealized losses | -1,786 | -8,851 |
U.S. Treasury and Federal Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value less than 12 months | 2,993 | 32,099 |
Fair value more than 12 months | 20,762 | |
Total fair value | 23,755 | 32,099 |
Unrealized losses less than 12 months | -7 | -807 |
Unrealized losses more than 12 months | -222 | |
Total unrealized losses | -229 | -807 |
State and Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value less than 12 months | 10,287 | 57,078 |
Fair value more than 12 months | 2,050 | 3,206 |
Total fair value | 12,336 | 60,284 |
Unrealized losses less than 12 months | -121 | -2,993 |
Unrealized losses more than 12 months | -30 | -184 |
Total unrealized losses | -151 | -3,177 |
Federal Agency Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value less than 12 months | 15,013 | 64,445 |
Fair value more than 12 months | 39,801 | 8,601 |
Total fair value | 54,813 | 73,046 |
Unrealized losses less than 12 months | -88 | -2,121 |
Unrealized losses more than 12 months | -957 | -462 |
Total unrealized losses | -1,046 | -2,583 |
Federal Agency Mortgage-backed Pools [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value less than 12 months | 5,993 | 87,919 |
Fair value more than 12 months | 28,044 | |
Total fair value | 34,037 | 87,919 |
Unrealized losses less than 12 months | -9 | -2,284 |
Unrealized losses more than 12 months | -351 | |
Total unrealized losses | ($360) | ($2,284) |
Securities_Sales_of_Securities
Securities - Sales of Securities Available for Sale (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds | $45,228 | $23,853 | $14,989 |
Gross gains | 988 | 382 | 2 |
Gross losses | ($8) |
Loans_Amounts_of_Loans_Detail
Loans - Amounts of Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial, Total | $674,314 | $505,189 | ||
Real Estate, Total | 254,625 | 185,958 | ||
Consumer, Total | 320,459 | 279,525 | ||
Mortgage warehouse | 129,156 | 98,156 | ||
Total loans | 1,378,554 | 1,068,828 | ||
Allowance for loan losses | -16,501 | -15,992 | -18,270 | -18,882 |
Loans, net | 1,362,053 | 1,052,836 | ||
Working Capital and Equipment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial, Total | 300,940 | 241,569 | ||
Real Estate Including Agriculture [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial, Total | 343,455 | 245,313 | ||
Tax Exempt Loans Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial, Total | 8,595 | 2,898 | ||
Other Commercial Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial, Total | 21,324 | 15,409 | ||
1-4 Family [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Real Estate, Total | 250,799 | 181,393 | ||
Other Real Estate Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Real Estate, Total | 3,826 | 4,565 | ||
Recreation Consumer Loans Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Consumer, Total | 5,673 | 4,839 | ||
Real Estate Home Improvement Loans Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Consumer, Total | 38,288 | 30,729 | ||
Home Equity [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Consumer, Total | 112,426 | 96,924 | ||
Other Consumer Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Consumer, Total | 5,921 | 3,293 | ||
Consumer Loans Auto Financing Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Consumer, Total | 154,538 | 139,915 | ||
Unsecured Debt [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Consumer, Total | $3,613 | $3,825 |
Loans_Additional_Information_D
Loans - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Receivables [Abstract] | |
Period of loan sold | 30 days |
Minimum period seldom held | 90 days |
Mortgage warehousing maximum pay off period | 30 days |
Loans_Recorded_Investment_of_I
Loans - Recorded Investment of Individual Loan Categories (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | $1,377,472 | $1,067,935 | ||
Net loans | 1,360,971 | 1,051,943 | ||
Interest Due | 3,832 | 3,186 | ||
Deferred Fees / (Costs) | 1,082 | 893 | ||
Recorded Investment | 1,382,386 | 1,072,014 | ||
Recorded Investment | 1,365,885 | 1,056,022 | ||
Allowance for loan losses | -16,501 | -15,992 | -18,270 | -18,882 |
Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 673,059 | 504,584 | ||
Interest Due | 1,583 | 1,161 | ||
Deferred Fees / (Costs) | 1,255 | 605 | ||
Recorded Investment | 675,897 | 506,350 | ||
Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 383,182 | 283,732 | ||
Interest Due | 1,238 | 1,072 | ||
Deferred Fees / (Costs) | 599 | 382 | ||
Recorded Investment | 385,019 | 285,186 | ||
Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 321,231 | 279,619 | ||
Interest Due | 1,011 | 953 | ||
Deferred Fees / (Costs) | -772 | -94 | ||
Recorded Investment | 321,470 | 280,478 | ||
Owner Occupied Real Estate [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 228,380 | 156,262 | ||
Interest Due | 385 | 257 | ||
Deferred Fees / (Costs) | 680 | 207 | ||
Recorded Investment | 229,445 | 156,726 | ||
Non Owner Occupied Real Estate [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 297,299 | 224,713 | ||
Interest Due | 309 | 105 | ||
Deferred Fees / (Costs) | 506 | 299 | ||
Recorded Investment | 298,114 | 225,117 | ||
Residential Spec Homes [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 2,027 | 400 | ||
Interest Due | 2 | |||
Recorded Investment | 2,029 | 400 | ||
Development & Spec Land Loans [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 12,097 | 21,289 | ||
Interest Due | 28 | 62 | ||
Deferred Fees / (Costs) | 30 | 42 | ||
Recorded Investment | 12,155 | 21,393 | ||
Commercial and Industrial [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 133,256 | 101,920 | ||
Interest Due | 859 | 737 | ||
Deferred Fees / (Costs) | 39 | 57 | ||
Recorded Investment | 134,154 | 102,714 | ||
Residential Mortgage [Member] | Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 242,521 | 176,068 | ||
Interest Due | 737 | 578 | ||
Deferred Fees / (Costs) | 599 | 382 | ||
Recorded Investment | 243,857 | 177,028 | ||
Residential Construction [Member] | Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 11,505 | 9,508 | ||
Interest Due | 21 | 14 | ||
Recorded Investment | 11,526 | 9,522 | ||
Mortgage Warehousing [Member] | Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 129,156 | 98,156 | ||
Interest Due | 480 | 480 | ||
Recorded Investment | 129,636 | 98,636 | ||
Direct Installment [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 40,137 | 29,983 | ||
Interest Due | 129 | 104 | ||
Deferred Fees / (Costs) | -375 | -281 | ||
Recorded Investment | 39,891 | 29,806 | ||
Direct Installment Purchased [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 219 | 294 | ||
Recorded Investment | 219 | 294 | ||
Indirect Installment [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 141,868 | 131,384 | ||
Interest Due | 314 | 320 | ||
Deferred Fees / (Costs) | -163 | |||
Recorded Investment | 142,019 | 131,704 | ||
Home Equity [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 139,007 | 117,958 | ||
Interest Due | 568 | 529 | ||
Deferred Fees / (Costs) | -234 | 187 | ||
Recorded Investment | $139,341 | $118,674 |
Accounting_for_Certain_Loans_A2
Accounting for Certain Loans Acquired in a Transfer - Amounts of Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | $1,378,554 | $1,068,828 |
Carrying amount, net of allowance | 1,360,971 | 1,051,943 |
Loans Purchased With Evidence Of Credit Deterioration [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | 136,487 | 60,294 |
Carrying amount, net of allowance | 136,128 | 59,905 |
Loans Purchased With Evidence Of Credit Deterioration [Member] | Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | 84,678 | 37,048 |
Loans Purchased With Evidence Of Credit Deterioration [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | 34,387 | 11,761 |
Loans Purchased With Evidence Of Credit Deterioration [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | 17,422 | 11,485 |
Loans Purchased With Evidence Of Credit Deterioration [Member] | Heartland [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | 36,488 | 60,294 |
Loans Purchased With Evidence Of Credit Deterioration [Member] | Heartland [Member] | Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | 18,307 | 37,048 |
Loans Purchased With Evidence Of Credit Deterioration [Member] | Heartland [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | 9,734 | 11,761 |
Loans Purchased With Evidence Of Credit Deterioration [Member] | Heartland [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | 8,447 | 11,485 |
Loans Purchased With Evidence Of Credit Deterioration [Member] | Summit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | 99,999 | |
Loans Purchased With Evidence Of Credit Deterioration [Member] | Summit [Member] | Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | 66,371 | |
Loans Purchased With Evidence Of Credit Deterioration [Member] | Summit [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | 24,653 | |
Loans Purchased With Evidence Of Credit Deterioration [Member] | Summit [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | $8,975 |
Accounting_for_Certain_Loans_A3
Accounting for Certain Loans Acquired in a Transfer - Amounts of Loans (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $16,501 | $15,992 | $18,270 | $18,882 |
Loans Purchased With Evidence Of Credit Deterioration [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $359 | $389 |
Accounting_for_Certain_Loans_A4
Accounting for Certain Loans Acquired in a Transfer - Accretable Yield or Income Expected to be Collected (Detail) (Loans Purchased With Evidence Of Credit Deterioration [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at January 1 | $3,185 | $6,111 |
Additions | 1,688 | |
Accretion | -889 | -1,267 |
Reclassification from nonaccretable difference | 0 | 0 |
Disposals | -316 | -1,659 |
Balance at December 31 | 3,668 | 3,185 |
Heartland [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance at January 1 | 3,185 | 6,111 |
Accretion | -557 | -1,267 |
Reclassification from nonaccretable difference | 0 | 0 |
Disposals | -228 | -1,659 |
Balance at December 31 | 2,400 | 3,185 |
Summit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Additions | 1,688 | |
Accretion | -332 | |
Reclassification from nonaccretable difference | 0 | 0 |
Disposals | -88 | |
Balance at December 31 | $1,268 |
Accounting_for_Certain_Loans_A5
Accounting for Certain Loans Acquired in a Transfer - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition [Line Items] | ||||||||||
Total provision charged to operating expense | $978,000 | $1,741,000 | $339,000 | ($997,000) | $104,000 | $729,000 | $2,084,000 | $3,058,000 | $1,920,000 | $3,524,000 |
Loans Purchased With Evidence Of Credit Deterioration [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total provision charged to operating expense | 253,000 | 2,600,000 | ||||||||
Allowances for loan losses | $283,000 | $0 |
Allowance_for_Loan_Losses_Addi
Allowance for Loan Losses - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Scenario, Actual [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Actual loss history experienced by the Company | 5 years |
Minimum [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Actual loss history experienced by the Company | 1 year |
Maximum [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Actual loss history experienced by the Company | 5 years |
Allowance for loan losses charge down family first and junior lien mortgages past due period | 180 days |
Allowance for loan losses charge down unsecured open end loans past due period | 90 days |
Allowance for loan losses charge down other secured loans past due period | 90 days |
Allowance_for_Loan_Losses_Allo
Allowance for Loan Losses - Allowance for Loan Losses (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Balance at beginning of the period | $18,270 | $15,992 | $18,270 | $18,882 | ||||||
Total loans charged-off | 4,129 | 6,250 | 5,943 | |||||||
Total loan recoveries | 1,580 | 2,052 | 1,807 | |||||||
Net loans charged-off (recovered) | 2,549 | 4,198 | 4,136 | |||||||
Total provision charged to operating expense | 978 | 1,741 | 339 | -997 | 104 | 729 | 2,084 | 3,058 | 1,920 | 3,524 |
Balance at the end of the period | 16,501 | 15,992 | 16,501 | 15,992 | 18,270 | |||||
Commercial [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total loans charged-off | 1,802 | 2,532 | 2,388 | |||||||
Total loan recoveries | 773 | 668 | 782 | |||||||
Total provision charged to operating expense | 2,277 | 756 | 1,360 | |||||||
Commercial [Member] | Owner Occupied Real Estate [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total loans charged-off | 40 | 138 | 418 | |||||||
Total loan recoveries | 13 | 65 | 547 | |||||||
Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total loans charged-off | 136 | 937 | 1,196 | |||||||
Total loan recoveries | 210 | 71 | 98 | |||||||
Commercial [Member] | Residential Development [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total loans charged-off | 0 | 0 | 0 | |||||||
Total loan recoveries | 0 | 0 | 0 | |||||||
Commercial [Member] | Development & Spec Land Loans [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total loans charged-off | 173 | 182 | ||||||||
Total loan recoveries | 55 | |||||||||
Commercial [Member] | Commercial and Industrial [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total loans charged-off | 1,453 | 1,275 | 774 | |||||||
Total loan recoveries | 495 | 532 | 137 | |||||||
Real Estate [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total loans charged-off | 328 | 1,055 | 597 | |||||||
Total loan recoveries | 21 | 114 | 77 | |||||||
Total provision charged to operating expense | -1,153 | 1,132 | 1,262 | |||||||
Real Estate [Member] | Residential Mortgage [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total loans charged-off | 328 | 1,055 | 597 | |||||||
Total loan recoveries | 21 | 114 | 77 | |||||||
Real Estate [Member] | Residential Construction [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total loans charged-off | 0 | 0 | 0 | |||||||
Total loan recoveries | 0 | 0 | 0 | |||||||
Real Estate [Member] | Mortgage Warehousing [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total loans charged-off | 0 | 0 | 0 | |||||||
Total loan recoveries | 0 | 0 | 0 | |||||||
Consumer [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total loans charged-off | 1,999 | 2,663 | 2,958 | |||||||
Total loan recoveries | 786 | 1,270 | 948 | |||||||
Total provision charged to operating expense | 1,934 | 32 | 902 | |||||||
Consumer [Member] | Direct Installment [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total loans charged-off | 250 | 333 | 327 | |||||||
Total loan recoveries | 67 | 488 | 84 | |||||||
Consumer [Member] | Direct Installment Purchased [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total loans charged-off | 0 | 0 | 0 | |||||||
Total loan recoveries | 0 | 0 | 0 | |||||||
Consumer [Member] | Indirect Installment [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total loans charged-off | 1,233 | 1,178 | 1,294 | |||||||
Total loan recoveries | 560 | 658 | 737 | |||||||
Consumer [Member] | Home Equity [Member] | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||||
Total loans charged-off | 516 | 1,152 | 1,337 | |||||||
Total loan recoveries | $159 | $124 | $127 |
Allowance_for_Loan_Losses_Allo1
Allowance for Loan Losses - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total ending allowance balance | $16,501 | $15,992 | $18,270 | $18,882 |
Total ending loans balance | 11,055 | 7,448 | 10,627 | |
Allowance for Loan Losses [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance For Loan Losses, Individually evaluated for impairment | 1,589 | 1,312 | ||
Allowance For Loan Losses, Collectively evaluated for impairment | 14,418 | 14,291 | ||
Allowance For Loan Losses, Loans acquired with deteriorated credit quality | 494 | 389 | ||
Total ending allowance balance | 16,501 | 15,992 | ||
Commercial [Member] | Allowance for Loan Losses [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance For Loan Losses, Individually evaluated for impairment | 1,589 | 1,312 | ||
Allowance For Loan Losses, Collectively evaluated for impairment | 5,827 | 4,963 | ||
Allowance For Loan Losses, Loans acquired with deteriorated credit quality | 494 | 389 | ||
Total ending allowance balance | 7,910 | 6,664 | ||
Real Estate [Member] | Allowance for Loan Losses [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance For Loan Losses, Collectively evaluated for impairment | 2,508 | 3,462 | ||
Total ending allowance balance | 2,508 | 3,462 | ||
Consumer [Member] | Allowance for Loan Losses [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance For Loan Losses, Collectively evaluated for impairment | 4,951 | 4,228 | ||
Total ending allowance balance | 4,951 | 4,228 | ||
Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans: Individually evaluated for impairment | 11,055 | 7,448 | ||
Loans: Collectively evaluated for impairment | 1,370,740 | 1,054,157 | ||
Loans acquired with deteriorated credit quality | 591 | 10,409 | ||
Total ending loans balance | 1,382,386 | 1,072,014 | ||
Loans [Member] | Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans: Individually evaluated for impairment | 11,055 | 7,448 | ||
Loans: Collectively evaluated for impairment | 664,251 | 489,547 | ||
Loans acquired with deteriorated credit quality | 591 | 9,355 | ||
Total ending loans balance | 675,897 | 506,350 | ||
Loans [Member] | Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans: Collectively evaluated for impairment | 255,383 | 186,526 | ||
Loans acquired with deteriorated credit quality | 24 | |||
Total ending loans balance | 255,383 | 186,550 | ||
Loans [Member] | Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans: Collectively evaluated for impairment | 321,470 | 279,448 | ||
Loans acquired with deteriorated credit quality | 1,030 | |||
Total ending loans balance | 321,470 | 280,478 | ||
Mortgage Warehousing [Member] | Allowance for Loan Losses [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance For Loan Losses, Collectively evaluated for impairment | 1,132 | 1,638 | ||
Total ending allowance balance | 1,132 | 1,638 | ||
Mortgage Warehousing [Member] | Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans: Collectively evaluated for impairment | 129,636 | 98,636 | ||
Total ending loans balance | $129,636 | $98,636 |
Nonperforming_Assets_and_Impai2
Non-performing Assets and Impaired Loans - Nonaccrual, Loans Past Due Over 90 Days Still on Accrual, and Troubled Debt Restructured ("TDRs") by Class of Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | $15,312 | $9,748 |
Loans Past Due Over 90 Days Still Accruing | 115 | 49 |
Non-Performing TDRs | 2,643 | 3,426 |
Performing TDRs | 4,372 | 5,054 |
Total Non-Performing Loans | 22,442 | 18,277 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 10,024 | 4,014 |
Loans Past Due Over 90 Days Still Accruing | 0 | 45 |
Non-Performing TDRs | 1,221 | 2,116 |
Performing TDRs | 610 | 1,296 |
Total Non-Performing Loans | 11,855 | 7,471 |
Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 1,773 | 293 |
Loans Past Due Over 90 Days Still Accruing | 0 | |
Non-Performing TDRs | 0 | 222 |
Performing TDRs | 44 | 778 |
Total Non-Performing Loans | 1,817 | 1,293 |
Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 7,439 | 2,289 |
Loans Past Due Over 90 Days Still Accruing | 0 | 45 |
Non-Performing TDRs | 217 | 1,117 |
Performing TDRs | 566 | 518 |
Total Non-Performing Loans | 8,222 | 3,969 |
Commercial [Member] | Residential Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | |
Loans Past Due Over 90 Days Still Accruing | 0 | |
Non-Performing TDRs | 0 | |
Performing TDRs | 0 | |
Total Non-Performing Loans | 0 | |
Commercial [Member] | Development & Spec Land Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | 182 |
Loans Past Due Over 90 Days Still Accruing | 0 | |
Non-Performing TDRs | 0 | |
Performing TDRs | 0 | |
Total Non-Performing Loans | 0 | 182 |
Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 812 | 1,250 |
Loans Past Due Over 90 Days Still Accruing | 0 | |
Non-Performing TDRs | 1,004 | 777 |
Performing TDRs | 0 | |
Total Non-Performing Loans | 1,816 | 2,027 |
Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 2,297 | 2,459 |
Loans Past Due Over 90 Days Still Accruing | 40 | 2 |
Non-Performing TDRs | 1,031 | 999 |
Performing TDRs | 2,526 | 2,686 |
Total Non-Performing Loans | 5,894 | 6,146 |
Real Estate [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 2,297 | 2,459 |
Loans Past Due Over 90 Days Still Accruing | 40 | 2 |
Non-Performing TDRs | 765 | 719 |
Performing TDRs | 2,526 | 2,686 |
Total Non-Performing Loans | 5,628 | 5,866 |
Real Estate [Member] | Residential Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | |
Loans Past Due Over 90 Days Still Accruing | 0 | |
Non-Performing TDRs | 266 | 280 |
Performing TDRs | 0 | |
Total Non-Performing Loans | 266 | 280 |
Real Estate [Member] | Mortgage Warehousing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | |
Loans Past Due Over 90 Days Still Accruing | 0 | |
Non-Performing TDRs | 0 | |
Performing TDRs | 0 | |
Total Non-Performing Loans | 0 | |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 2,991 | 3,275 |
Loans Past Due Over 90 Days Still Accruing | 75 | 2 |
Non-Performing TDRs | 391 | 311 |
Performing TDRs | 1,236 | 1,072 |
Total Non-Performing Loans | 4,693 | 4,660 |
Consumer [Member] | Direct Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 227 | 202 |
Loans Past Due Over 90 Days Still Accruing | 10 | |
Non-Performing TDRs | 0 | |
Performing TDRs | 0 | |
Total Non-Performing Loans | 237 | 202 |
Consumer [Member] | Direct Installment Purchased [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | |
Loans Past Due Over 90 Days Still Accruing | 0 | |
Non-Performing TDRs | 0 | |
Performing TDRs | 0 | |
Total Non-Performing Loans | 0 | |
Consumer [Member] | Indirect Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 557 | 531 |
Loans Past Due Over 90 Days Still Accruing | 47 | 2 |
Non-Performing TDRs | 0 | |
Performing TDRs | 0 | |
Total Non-Performing Loans | 604 | 533 |
Consumer [Member] | Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 2,207 | 2,542 |
Loans Past Due Over 90 Days Still Accruing | 18 | |
Non-Performing TDRs | 391 | 311 |
Performing TDRs | 1,236 | 1,072 |
Total Non-Performing Loans | $3,852 | $3,925 |
Nonperforming_Assets_and_Impai3
Non-performing Assets and Impaired Loans - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Contract | ||
ConsecutivePayment | ||
Financing Receivable, Modifications [Line Items] | ||
Non-accrual loans | $15,312,000 | $9,748,000 |
Non-performing TDRs | 2,600,000 | |
Loans acquired included in non-accrual loans | 1,400,000 | |
Loans acquired included in non-performing TDRs | 247,000 | |
Loan delinquency period | 90 days | |
Minimum period required for satisfactory performance to return loan from non-accrual to accrual status | 6 months | |
Restructured loans with modified recorded balances | 0 | |
Restructured loan returned to accruing status number of Consecutive Payments of loan | 6 | |
Restructured loan reported in TDRs | 7,000,000 | |
Specific reserves allocated to troubled debt restructuring | 1,000,000 | |
Number TDRs returned to accrual status | 3 | |
Total balances of TDR's | 288,000 | |
Loans classified as TDR after a period | 90 days | |
Good Pass [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of consecutive years of profit Unaudited Financial Information for Good Pass Rating | 5 years | |
Number of years of Satisfactory Relationship with bank for Good Pass Rating | 5 years | |
Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured loan | 4,400,000 | |
Minimum [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Loan delinquency period | 90 days | |
Delay or shortfall in payments of loan | 30 days | |
Loans with an aggregate credit exposure | 1,000,000 | |
Minimum [Member] | Good Pass [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of consecutive years of profit for Good Pass Rating | 3 years | |
Minimum [Member] | Satisfactory Pass [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Minimum number of years of Satisfactory Repayment required for Satisfactory Pass Rating | 2 years | |
Maximum [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Loans with an aggregate credit exposure | $2,500,000 |
Nonperforming_Assets_and_Impai4
Non-performing Assets and Impaired Loans - Loans Transferred and Classified as Troubled Debt Restructured Loans (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defaults | Defaults | |
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 7 | 22 |
Unpaid Principal Balance | $969 | $3,332 |
Commercial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 1 | 6 |
Unpaid Principal Balance | 247 | 1,165 |
Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 0 | 3 |
Unpaid Principal Balance | 0 | 223 |
Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 0 | 3 |
Unpaid Principal Balance | 0 | 942 |
Commercial [Member] | Residential Development [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 0 | |
Unpaid Principal Balance | 0 | |
Commercial [Member] | Development & Spec Land Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 0 | |
Unpaid Principal Balance | 0 | |
Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 1 | |
Unpaid Principal Balance | 247 | |
Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 2 | 9 |
Unpaid Principal Balance | 319 | 1,252 |
Real Estate [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 2 | 9 |
Unpaid Principal Balance | 319 | 1,252 |
Real Estate [Member] | Residential Construction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 0 | |
Unpaid Principal Balance | 0 | |
Real Estate [Member] | Mortgage Warehousing [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 0 | |
Unpaid Principal Balance | 0 | |
Consumer [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 4 | 7 |
Unpaid Principal Balance | 404 | 915 |
Consumer [Member] | Direct Installment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 0 | |
Unpaid Principal Balance | 0 | |
Consumer [Member] | Direct Installment Purchased [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 0 | |
Unpaid Principal Balance | 0 | |
Consumer [Member] | Indirect Installment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 0 | |
Unpaid Principal Balance | 0 | |
Consumer [Member] | Home Equity [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 4 | 7 |
Unpaid Principal Balance | $404 | $915 |
Nonperforming_Assets_and_Impai5
Non-performing Assets and Impaired Loans - Loans Transferred and Classified as Troubled Debt Restructured Loans Non-accrual (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defaults | Defaults | |
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 6 | 11 |
Unpaid Principal Balance | $845 | $1,180 |
Commercial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 1 | 5 |
Unpaid Principal Balance | 247 | 647 |
Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 3 | |
Unpaid Principal Balance | 223 | |
Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 2 | |
Unpaid Principal Balance | 424 | |
Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 1 | |
Unpaid Principal Balance | 247 | |
Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 2 | 3 |
Unpaid Principal Balance | 243 | 355 |
Real Estate [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 2 | 3 |
Unpaid Principal Balance | 243 | 355 |
Consumer [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 3 | 3 |
Unpaid Principal Balance | 355 | 178 |
Consumer [Member] | Home Equity [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Defaults | 3 | 3 |
Unpaid Principal Balance | $355 | $178 |
Nonperforming_Assets_and_Impai6
Non-performing Assets and Impaired Loans - Commercial Loans Individually Evaluated for Impairment by Class of Loans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Financial Receivables [Line Items] | |||
Unpaid Principal Balance total | $11,053 | $7,426 | $10,597 |
Total ending loans balance | 11,055 | 7,448 | 10,627 |
Allowance For Loan Loss Allocated | 1,589 | 1,312 | 1,945 |
Average Balance in Impaired Loans total | 5,277 | 7,336 | 6,137 |
Cash/Accrual Interest Income Recognized, Total | 379 | 271 | 201 |
Commercial [Member] | |||
Schedule Of Financial Receivables [Line Items] | |||
Unpaid Principal Balance With no recorded allowance | 3,216 | 5,227 | 7,433 |
Recorded Investment With no recorded allowance | 3,218 | 5,249 | 7,463 |
Allowance For Loan Loss Allocated With no recorded allowance | 0 | 0 | 0 |
Average Balance in Impaired Loans With no recorded allowance | 2,343 | 5,545 | 4,324 |
Cash/Accrual Interest Income Recognized, With no recorded allowance | 143 | 240 | 100 |
Unpaid Principal Balance With an allowance recorded | 7,837 | 2,199 | 3,164 |
Recorded Investment With an allowance recorded | 7,837 | 2,199 | 3,164 |
Allowance For Loan Loss Allocated | 1,589 | 1,312 | 1,945 |
Average Balance in Impaired Loans With an allowance recorded | 2,934 | 1,791 | 1,813 |
Cash/Accrual Interest Income Recognized, With an allowance recorded | 236 | 31 | 101 |
Commercial [Member] | Owner Occupied Real Estate [Member] | |||
Schedule Of Financial Receivables [Line Items] | |||
Unpaid Principal Balance With no recorded allowance | 1,169 | 1,293 | 4,890 |
Recorded Investment With no recorded allowance | 1,170 | 1,296 | 4,901 |
Allowance For Loan Loss Allocated With no recorded allowance | 0 | 0 | 0 |
Average Balance in Impaired Loans With no recorded allowance | 645 | 1,845 | 2,422 |
Cash/Accrual Interest Income Recognized, With no recorded allowance | 65 | 68 | 80 |
Unpaid Principal Balance With an allowance recorded | 422 | ||
Recorded Investment With an allowance recorded | 422 | ||
Allowance For Loan Loss Allocated | 165 | ||
Average Balance in Impaired Loans With an allowance recorded | 141 | ||
Cash/Accrual Interest Income Recognized, With an allowance recorded | 16 | ||
Commercial [Member] | Non Owner Occupied Real Estate [Member] | |||
Schedule Of Financial Receivables [Line Items] | |||
Unpaid Principal Balance With no recorded allowance | 1,193 | 3,521 | 1,961 |
Recorded Investment With no recorded allowance | 1,194 | 3,525 | 1,963 |
Allowance For Loan Loss Allocated With no recorded allowance | 0 | 0 | 0 |
Average Balance in Impaired Loans With no recorded allowance | 1,341 | 2,963 | 1,544 |
Cash/Accrual Interest Income Recognized, With no recorded allowance | 51 | 172 | 20 |
Unpaid Principal Balance With an allowance recorded | 6,453 | 403 | 1,795 |
Recorded Investment With an allowance recorded | 6,453 | 403 | 1,795 |
Allowance For Loan Loss Allocated | 744 | 202 | 1,080 |
Average Balance in Impaired Loans With an allowance recorded | 1,995 | 485 | 481 |
Cash/Accrual Interest Income Recognized, With an allowance recorded | 208 | 95 | |
Commercial [Member] | Residential Development [Member] | |||
Schedule Of Financial Receivables [Line Items] | |||
Allowance For Loan Loss Allocated With no recorded allowance | 0 | 0 | 0 |
Commercial [Member] | Development & Spec Land Loans [Member] | |||
Schedule Of Financial Receivables [Line Items] | |||
Unpaid Principal Balance With no recorded allowance | 23 | 133 | |
Recorded Investment With no recorded allowance | 23 | 133 | |
Allowance For Loan Loss Allocated With no recorded allowance | 0 | 0 | 0 |
Average Balance in Impaired Loans With no recorded allowance | 25 | 61 | |
Unpaid Principal Balance With an allowance recorded | 159 | 572 | |
Recorded Investment With an allowance recorded | 159 | 572 | |
Allowance For Loan Loss Allocated | 48 | 600 | |
Average Balance in Impaired Loans With an allowance recorded | 166 | 526 | |
Cash/Accrual Interest Income Recognized, With an allowance recorded | 6 | ||
Commercial [Member] | Commercial and Industrial [Member] | |||
Schedule Of Financial Receivables [Line Items] | |||
Unpaid Principal Balance With no recorded allowance | 854 | 390 | 449 |
Recorded Investment With no recorded allowance | 854 | 405 | 466 |
Allowance For Loan Loss Allocated With no recorded allowance | 0 | 0 | 0 |
Average Balance in Impaired Loans With no recorded allowance | 357 | 712 | 297 |
Cash/Accrual Interest Income Recognized, With no recorded allowance | 27 | ||
Unpaid Principal Balance With an allowance recorded | 962 | 1,637 | 797 |
Recorded Investment With an allowance recorded | 962 | 1,637 | 797 |
Allowance For Loan Loss Allocated | 680 | 1,062 | 265 |
Average Balance in Impaired Loans With an allowance recorded | 798 | 1,140 | 806 |
Cash/Accrual Interest Income Recognized, With an allowance recorded | $12 | $31 |
Nonperforming_Assets_and_Impai7
Non-performing Assets and Impaired Loans - Payment Status by Class of Loan (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | $3,807 | $3,108 |
60 - 89 Days Past Due | 1,275 | 344 |
Greater than 90 Days Past Due | 115 | 49 |
Total Past Due | 5,197 | 3,501 |
Loans Not Past Due | 1,372,275 | 1,064,434 |
Total | 1,377,472 | 1,067,935 |
30 - 59 Days Past Due, Percentage of Total Loans | 0.28% | 0.29% |
60 - 89 Days Past Due, Percentage of Total Loans | 0.09% | 0.03% |
Greater than 90 Days Past Due, Percentage of Total Loans | 0.01% | 0.00% |
Total Past Due, Percentage of Total Loans | 0.38% | 0.33% |
Loans Not Past Due, Percentage of Total Loans | 99.62% | 99.67% |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | 535 | 765 |
60 - 89 Days Past Due | 646 | |
Greater than 90 Days Past Due | 45 | |
Total Past Due | 1,181 | 810 |
Loans Not Past Due | 671,878 | 503,774 |
Total | 673,059 | 504,584 |
Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | 103 | 341 |
60 - 89 Days Past Due | 645 | |
Total Past Due | 748 | 341 |
Loans Not Past Due | 227,632 | 155,921 |
Total | 228,380 | 156,262 |
Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | 413 | 424 |
Greater than 90 Days Past Due | 45 | |
Total Past Due | 413 | 469 |
Loans Not Past Due | 296,886 | 224,244 |
Total | 297,299 | 224,713 |
Commercial [Member] | Residential Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Not Past Due | 2,027 | 400 |
Total | 2,027 | 400 |
Commercial [Member] | Development & Spec Land Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Not Past Due | 12,097 | 21,289 |
Total | 12,097 | 21,289 |
Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | 19 | |
60 - 89 Days Past Due | 1 | |
Total Past Due | 20 | |
Loans Not Past Due | 133,236 | 101,920 |
Total | 133,256 | 101,920 |
Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | 1,033 | 445 |
60 - 89 Days Past Due | 193 | 87 |
Greater than 90 Days Past Due | 40 | 2 |
Total Past Due | 1,266 | 534 |
Loans Not Past Due | 381,916 | 283,198 |
Total | 383,182 | 283,732 |
Real Estate [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | 1,033 | 445 |
60 - 89 Days Past Due | 193 | 87 |
Greater than 90 Days Past Due | 40 | 2 |
Total Past Due | 1,266 | 534 |
Loans Not Past Due | 241,255 | 175,534 |
Total | 242,521 | 176,068 |
Real Estate [Member] | Residential Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Not Past Due | 11,505 | 9,508 |
Total | 11,505 | 9,508 |
Real Estate [Member] | Mortgage Warehousing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Not Past Due | 129,156 | 98,156 |
Total | 129,156 | 98,156 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | 2,239 | 1,898 |
60 - 89 Days Past Due | 436 | 257 |
Greater than 90 Days Past Due | 75 | 2 |
Total Past Due | 2,750 | 2,157 |
Loans Not Past Due | 318,481 | 277,462 |
Total | 321,231 | 279,619 |
Consumer [Member] | Direct Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | 113 | 120 |
60 - 89 Days Past Due | 4 | 24 |
Greater than 90 Days Past Due | 10 | |
Total Past Due | 127 | 144 |
Loans Not Past Due | 40,010 | 29,839 |
Total | 40,137 | 29,983 |
Consumer [Member] | Direct Installment Purchased [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Not Past Due | 219 | 294 |
Total | 219 | 294 |
Consumer [Member] | Indirect Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | 1,042 | 1,011 |
60 - 89 Days Past Due | 243 | 175 |
Greater than 90 Days Past Due | 47 | 2 |
Total Past Due | 1,332 | 1,188 |
Loans Not Past Due | 140,536 | 130,196 |
Total | 141,868 | 131,384 |
Consumer [Member] | Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | 1,084 | 767 |
60 - 89 Days Past Due | 189 | 58 |
Greater than 90 Days Past Due | 18 | |
Total Past Due | 1,291 | 825 |
Loans Not Past Due | 137,716 | 117,133 |
Total | $139,007 | $117,958 |
Nonperforming_Assets_and_Impai8
Non-performing Assets and Impaired Loans - Loans by Credit Grades (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $1,377,472 | $1,067,935 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 673,059 | 504,584 |
Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 228,380 | 156,262 |
Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 297,299 | 224,713 |
Commercial [Member] | Residential Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,027 | 400 |
Commercial [Member] | Development & Spec Land Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 12,097 | 21,289 |
Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 133,256 | 101,920 |
Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 383,182 | 283,732 |
Real Estate [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 242,521 | 176,068 |
Real Estate [Member] | Residential Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 11,505 | 9,508 |
Real Estate [Member] | Mortgage Warehousing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 129,156 | 98,156 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 321,231 | 279,619 |
Consumer [Member] | Direct Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 40,137 | 29,983 |
Consumer [Member] | Direct Installment Purchased [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 219 | 294 |
Consumer [Member] | Indirect Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 141,868 | 131,384 |
Consumer [Member] | Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 139,007 | 117,958 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,335,854 | 1,019,365 |
Percentage of total loans | 96.98% | 95.45% |
Pass [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 642,027 | 466,820 |
Pass [Member] | Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 215,875 | 146,085 |
Pass [Member] | Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 283,518 | 208,625 |
Pass [Member] | Commercial [Member] | Residential Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,027 | 400 |
Pass [Member] | Commercial [Member] | Development & Spec Land Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 12,018 | 19,858 |
Pass [Member] | Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 128,589 | 91,852 |
Pass [Member] | Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 377,288 | 277,586 |
Pass [Member] | Real Estate [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 236,893 | 170,202 |
Pass [Member] | Real Estate [Member] | Residential Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 11,239 | 9,228 |
Pass [Member] | Real Estate [Member] | Mortgage Warehousing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 129,156 | 98,156 |
Pass [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 316,538 | 274,959 |
Pass [Member] | Consumer [Member] | Direct Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 39,900 | 29,781 |
Pass [Member] | Consumer [Member] | Direct Installment Purchased [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 219 | 294 |
Pass [Member] | Consumer [Member] | Indirect Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 141,264 | 130,851 |
Pass [Member] | Consumer [Member] | Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 135,155 | 114,033 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 13,959 | 13,861 |
Percentage of total loans | 1.01% | 1.30% |
Special Mention [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 13,959 | 13,861 |
Special Mention [Member] | Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 7,623 | 2,231 |
Special Mention [Member] | Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,458 | 5,047 |
Special Mention [Member] | Commercial [Member] | Development & Spec Land Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 79 | 91 |
Special Mention [Member] | Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,799 | 6,492 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 27,661 | 34,709 |
Percentage of total loans | 2.01% | 3.25% |
Substandard [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 17,074 | 23,903 |
Substandard [Member] | Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,883 | 7,946 |
Substandard [Member] | Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 9,323 | 11,041 |
Substandard [Member] | Commercial [Member] | Development & Spec Land Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,340 | |
Substandard [Member] | Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,868 | 3,576 |
Substandard [Member] | Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,894 | 6,146 |
Substandard [Member] | Real Estate [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,628 | 5,866 |
Substandard [Member] | Real Estate [Member] | Residential Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 266 | 280 |
Substandard [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,693 | 4,660 |
Substandard [Member] | Consumer [Member] | Direct Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 237 | 202 |
Substandard [Member] | Consumer [Member] | Indirect Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 604 | 533 |
Substandard [Member] | Consumer [Member] | Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $3,852 | $3,925 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Percentage of total loans | 0.00% | 0.00% |
Premises_and_Equipment_Summary
Premises and Equipment - Summary of Premises and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $79,411 | $70,622 |
Accumulated depreciation | -26,950 | -24,428 |
Net premise and equipment | 52,461 | 46,194 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 16,550 | 13,323 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 49,066 | 45,466 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $13,795 | $11,833 |
Loan_Servicing_Additional_Info
Loan Servicing - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Receivables [Abstract] | |||
Unpaid principal balances of loans serviced for others totaled | $1,035,500,000 | $943,100,000 | |
Aggregate fair value of capitalized mortgage servicing rights | 10,500,000 | 9,900,000 | 6,600,000 |
Mortgage servicing rights, net | 7,642,000 | 7,039,000 | 5,145,000 |
Bank recorded additional (impairment) | $51,000 | $635,000 | ($168,000) |
Loan_Servicing_Originated_Mort
Loan Servicing - Originated Mortgage Servicing Rights (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Payments for (Proceeds from) Mortgage Servicing Rights [Abstract] | |||
Balances, January 1 | $7,428 | $6,169 | $5,049 |
Servicing rights capitalized | 2,280 | 2,535 | 2,439 |
Amortization of servicing rights | -1,728 | -1,276 | -1,319 |
Balances, December 31 | 7,980 | 7,428 | 6,169 |
Balances, January 1 | -389 | -1,024 | -856 |
Additions | -95 | -54 | -762 |
Reductions | 146 | 689 | 594 |
Balances, December 31 | -338 | -389 | -1,024 |
Mortgage servicing rights, net | $7,642 | $7,039 | $5,145 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Intangible Assets [Line Items] | |||
Amortization expense for intangible assets totaled | $880,000 | $760,000 | $576,000 |
Core Deposits [Member] | Minimum [Member] | |||
Intangible Assets [Line Items] | |||
Core deposit intangible amortization period | 7 years | ||
Core Deposits [Member] | Maximum [Member] | |||
Intangible Assets [Line Items] | |||
Core deposit intangible amortization period | 10 years |
Intangible_Assets_Amortizable_
Intangible Assets - Amortizable Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets Core deposit intangible, Gross Carrying Amount | $4,000 | |
Core Deposits [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets Core deposit intangible, Gross Carrying Amount | 8,526 | 6,969 |
Amortizable intangible assets Core deposit intangible, Accumulated Amortization | ($4,561) | ($3,681) |
Intangible_Assets_Estimated_Am
Intangible Assets - Estimated Amortization (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2015 | $768 | |
2016 | 666 | |
2017 | 664 | |
2018 | 661 | |
2019 | 519 | |
Thereafter | 687 | |
Estimated amortization | $3,965 | $3,288 |
Deposits_Deposits_Detail
Deposits - Deposits (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | ||
Noninterest-bearing demand deposits | $267,667 | $231,096 |
Interest-bearing demand deposits | 606,609 | 513,445 |
Money market (variable rate) | 179,142 | 129,425 |
Savings deposits | 144,831 | 137,096 |
Certificates of deposit of $100,000 or more | 137,147 | 134,337 |
Other certificates and time deposits | 146,923 | 146,121 |
Total deposits | $1,482,319 | $1,291,520 |
Deposits_Certificates_and_Othe
Deposits - Certificates and Other Time Deposits for Both Retail and Brokered (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Time Deposits By Maturity [Line Items] | |
2015 | $125,381 |
2016 | 53,567 |
2017 | 45,159 |
2018 | 26,332 |
2019 | 15,275 |
Thereafter | 18,356 |
Certificates and other time deposits | 284,070 |
Retail [Member] | |
Time Deposits By Maturity [Line Items] | |
2015 | 114,468 |
2016 | 46,265 |
2017 | 42,482 |
2018 | 26,332 |
2019 | 15,275 |
Thereafter | 18,356 |
Certificates and other time deposits | 263,178 |
Brokered [Member] | |
Time Deposits By Maturity [Line Items] | |
2015 | 10,913 |
2016 | 7,302 |
2017 | 2,677 |
2018 | 0 |
2019 | 0 |
Thereafter | 0 |
Certificates and other time deposits | $20,892 |
Borrowings_Borrowings_Detail
Borrowings - Borrowings (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Federal Home Loan Bank advances, variable and fixed rates ranging from 0.32% to 7.53%, due at various dates through November 15, 2024 | $116,473 | $75,050 |
Securities sold under agreements to repurchase | 139,725 | 140,246 |
Federal funds purchased | 95,000 | 41,000 |
Total borrowings | $351,198 | $256,296 |
Borrowings_Borrowings_Parenthe
Borrowings - Borrowings (Parenthetical) (Detail) | Dec. 31, 2014 |
Maximum [Member] | |
Borrowings Under Repurchase Agreements [Line items] | |
Federal Home Loan Bank advances, variable and fixed rates | 7.53% |
Minimum [Member] | |
Borrowings Under Repurchase Agreements [Line items] | |
Federal Home Loan Bank advances, variable and fixed rates | 0.32% |
Borrowings_Additional_Informat
Borrowings - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Disclosure [Abstract] | ||
Federal Home Loan Bank advances are secured by first and second mortgage loans and mortgage warehouse loans | $354.20 | |
Maximum amount of outstanding agreements | 144.3 | 141.4 |
Daily average amount of outstanding agreements | 140.9 | 137.6 |
Maturity date | 13-Sep-20 | |
Available credit lines with various money center banks | $301.40 |
Borrowings_Contractual_Maturit
Borrowings - Contractual Maturities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 | $214,340 | |
2016 | 27,432 | |
2017 | 47,539 | |
2018 | 1,111 | |
2019 | 50,293 | |
Thereafter | 10,483 | |
Total borrowings | $351,198 | $256,296 |
Subordinated_Debentures_Additi
Subordinated Debentures - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Oct. 31, 2004 | Dec. 31, 2006 | Jun. 30, 2004 | Mar. 31, 2004 | Dec. 31, 2013 | |
Subordinate Debenture [Line Items] | ||||||
LIBOR period | 3 months | |||||
Carrying value of securities, net of remaining purchase discount | $32,642,000 | $32,486,000 | ||||
Horizon Statutory Trust Two [Member] | ||||||
Subordinate Debenture [Line Items] | ||||||
Trust Preferred Capital Securities Sold | 10,300,000 | |||||
Securities bearing interest rate | 90-day LIBOR plus 1.95% | |||||
Junior subordinated debentures and the securities variable rate | 1.95% | |||||
LIBOR period | 90 days | |||||
Interest rate on junior subordinated debentures and securities | 2.19% | |||||
Junior subordinated debentures maturity date | 21-Oct-34 | |||||
Cost of issuance of the securities | 17,500 | |||||
First call date of the securities | 31-Oct-09 | |||||
Horizon Bancorp Capital Trust Three [Member] | ||||||
Subordinate Debenture [Line Items] | ||||||
Trust Preferred Capital Securities Sold | 12,400,000 | |||||
Securities bearing interest rate | 90-day LIBOR plus 1.65% | |||||
Junior subordinated debentures and the securities variable rate | 1.65% | |||||
LIBOR period | 90 days | |||||
Interest rate on junior subordinated debentures and securities | 1.88% | |||||
Junior subordinated debentures maturity date | 30-Jan-37 | |||||
Cost of issuance of the securities | 12,647 | |||||
Alliance Financial Statutory Trust One [Member] | ||||||
Subordinate Debenture [Line Items] | ||||||
Trust Preferred Capital Securities Sold | 5,200,000 | |||||
Securities bearing interest rate | 90-day LIBOR plus 2.65% | |||||
Junior subordinated debentures and the securities variable rate | 2.65% | |||||
LIBOR period | 90 days | |||||
Interest rate on junior subordinated debentures and securities | 2.89% | |||||
Junior subordinated debentures maturity date | 1-Jun-34 | |||||
Am Tru Statutory Trust One [Member] | ||||||
Subordinate Debenture [Line Items] | ||||||
Trust Preferred Capital Securities Sold | 3,500,000 | |||||
Securities bearing interest rate | 90-day LIBOR plus 2.85% | |||||
Junior subordinated debentures and the securities variable rate | 2.85% | |||||
LIBOR period | 90 days | |||||
Interest rate on junior subordinated debentures and securities | 3.09% | |||||
Junior subordinated debentures maturity date | 1-Mar-34 | |||||
Carrying value of securities, net of remaining purchase discount | 2,900,000 | |||||
Heartland Statutory Trust Two [Member] | ||||||
Subordinate Debenture [Line Items] | ||||||
Trust Preferred Capital Securities Sold | 3,000,000 | |||||
Securities bearing interest rate | 90-day LIBOR plus 1.67% | |||||
Junior subordinated debentures and the securities variable rate | 1.67% | |||||
LIBOR period | 90 days | |||||
Interest rate on junior subordinated debentures and securities | 1.91% | |||||
Junior subordinated debentures maturity date | 1-Dec-36 | |||||
Carrying value of securities, net of remaining purchase discount | $1,500,000 |
Employee_Stock_Ownership_Plan_
Employee Stock Ownership Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Eligible compensation for ESOP | $260,000 | ||
Cash contributions and expense recorded for the ESOP | $400,000 | $475,000 | $475,000 |
Employee stock ownership plan outstanding shares | 800,339 | ||
Percentage of outstanding shares | 8.70% |
Employee_Thrift_Plan_Additiona
Employee Thrift Plan - Additional Information (Detail) (Employee Thrift Plan [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Thrift Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Bank's expense related to the thrift plan | $633,000 | $545,000 | $566,000 |
Thrift Plan owns outstanding shares | 313,804 | ||
Percentage of outstanding shares owns with thrift plan | 3.40% |
Income_Tax_Reconciliation_of_I
Income Tax - Reconciliation of Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Currently payable | |||
Federal | $4,710 | $3,900 | $5,582 |
State | -149 | -88 | 120 |
Deferred | 1,594 | 3,236 | 2,744 |
Total income tax expense | 6,155 | 7,048 | 8,446 |
Reconciliation of federal statutory to actual tax expense | |||
Federal statutory income tax at 35% | 8,488 | 9,424 | 9,800 |
Tax exempt interest | -1,628 | -1,517 | -1,419 |
Tax exempt income | -366 | -362 | -359 |
Other tax exempt income | -309 | -342 | |
Nondeductible and other | -30 | -176 | -177 |
Effect of state income taxes | 21 | 601 | |
Total income tax expense | $6,155 | $7,048 | $8,446 |
Income_Tax_Reconciliation_of_I1
Income Tax - Reconciliation of Income Taxes (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Federal statutory income tax rate | 35.00% |
Income_Tax_Reconciliation_of_D
Income Tax - Reconciliation of Deferred Tax Assets & Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Allowance for loan losses | $5,680 | $5,677 |
Net operating loss | 3,509 | 2,977 |
Director and employee benefits | 1,953 | 1,828 |
Unrealized loss on AFS securities and fair value hedge | 588 | 931 |
Other | 596 | 537 |
Total assets | 12,326 | 11,950 |
Liabilities | ||
Depreciation | -1,563 | -1,424 |
Difference in expense recognition | -368 | |
State tax | -126 | -236 |
Federal Home Loan Bank stock dividends | -200 | -295 |
Difference in basis of intangible assets | -2,839 | -2,189 |
FHLB Penalty | -283 | -508 |
Other | -1,303 | -1,188 |
Total liabilities | -6,314 | -6,208 |
Net deferred tax asset | $6,012 | $5,742 |
Income_Tax_Additional_Informat
Income Tax - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
State Tax Jurisdiction [Member] | |
Income Taxes [Line Items] | |
Operating loss carry forwards | $10.90 |
Federal Jurisdiction [Member] | |
Income Taxes [Line Items] | |
Operating loss carry forwards | $7.60 |
Operating loss carry forward expiration year | 2029 |
Minimum [Member] | State Tax Jurisdiction [Member] | |
Income Taxes [Line Items] | |
Operating loss carry forward expiration year | 2014 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Unrealized gain on securities available for sale | $4,018 | $164 |
Unamortized gain on securities held to maturity, previously transferred from AFS | 1,658 | |
Unrealized loss on derivative instruments | -3,337 | -2,826 |
Tax effect | -818 | 933 |
Total accumulated other comprehensive income (loss) | $1,521 | ($1,729) |
Commitments_Off_Balance_Sheets
Commitments, Off Balance Sheets Risk and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Cash on hand or deposit with Federal Reserve Bank | $2,300,000 | |
Commitments to make loans | 408,600,000 | 519,700,000 |
Commitments under outstanding standby letters of credit | 3,900,000 | 1,300,000 |
Anticipated losses from unused commitments | $0 |
Regulatory_Capital_Additional_
Regulatory Capital - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Category | |
Regulated Operations [Abstract] | |
Number of capital categories defined in regulation | 5 |
Regulatory_Capital_Summary_of_
Regulatory Capital - Summary of Regulatory Capital Requirement (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||
Total capital (to risk-weighted assets), Actual, Amount | $192,604 | $173,634 |
Total capital (to risk-weighted assets), Actual, Ratio | 13.08% | 14.67% |
Total capital (to risk-weighted assets), For capital adequacy purposes, Amount | 117,801 | 94,688 |
Total capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets), For well capitalized purpose, Amount | 147,251 | 118,360 |
Total capital (to risk-weighted assets), For well capitalized purpose, Ratio | 10.00% | 10.00% |
Tier 1 capital (to average assets), Actual, Amount | 176,103 | 158,827 |
Tier 1 capital (to average assets), Actual, Ratio | 11.96% | 13.42% |
Tier 1 capital (to average assets), For capital adequacy purposes, Amount | 58,897 | 47,340 |
Tier 1 capital (to average assets), For capital adequacy purpose, Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), For well capitalized purpose, Amount | 88,346 | 71,011 |
Tier 1 capital (to average assets), For well capitalized purposes, Ratio | 6.00% | 6.00% |
Tier 1 capital (to average assets), Actual, Amount | 176,103 | 158,827 |
Tier 1 capital (to average assets), Actual, Ratio | 8.80% | 9.18% |
Tier 1 capital (to average assets), For capital adequacy purposes, Amount | 80,047 | 69,206 |
Tier 1 capital (to average assets), For capital adequacy purpose, Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), For well capitalized purpose, Amount | 100,059 | 86,507 |
Tier 1 capital (to average assets), For well capitalized purposes, Ratio | 5.00% | 5.00% |
Consolidated [Member] | ||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||
Total capital (to risk-weighted assets), Actual, Amount | 212,276 | 192,904 |
Total capital (to risk-weighted assets), Actual, Ratio | 14.48% | 16.33% |
Total capital (to risk-weighted assets), For capital adequacy purposes, Amount | 117,280 | 94,503 |
Total capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 8.00% | 8.00% |
Tier 1 capital (to average assets), Actual, Amount | 195,775 | 178,115 |
Tier 1 capital (to average assets), Actual, Ratio | 13.35% | 15.08% |
Tier 1 capital (to average assets), For capital adequacy purposes, Amount | 58,659 | 47,245 |
Tier 1 capital (to average assets), For capital adequacy purpose, Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), Actual, Amount | 195,775 | 178,115 |
Tier 1 capital (to average assets), Actual, Ratio | 9.76% | 10.28% |
Tier 1 capital (to average assets), For capital adequacy purposes, Amount | $80,236 | $69,305 |
Tier 1 capital (to average assets), For capital adequacy purpose, Ratio | 4.00% | 4.00% |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Based Compensation [Line Items] | |||
Tax benefit associated with compensation expense | $71,000 | $19,000 | $13,000 |
Total compensation cost | 203,000 | 48,000 | 33,000 |
Total compensation cost | 566,000 | 336,000 | 220,000 |
Cash received from option exercise | 122,000 | 136,000 | 195,000 |
Actual tax benefit realized for the tax deductions | 43,000 | 58,000 | 30,000 |
Unrecognized compensation cost | 903,000 | ||
Weighted-average period cost over which cost is expected to be recognized | 1 year 6 months | ||
Option Activity Under the 2013 Plan [Member] | |||
Stock Based Compensation [Line Items] | |||
Maximum common shares issued under the plan | 691,700 | ||
Non-option awards granted | 400,000 | ||
Number of shares available incentive stock options | 100,000 | ||
Weighted average grant-date fair value of options granted | $6.50 | $5.74 | $3.25 |
Option Activity Under the 2003 Plan [Member] | |||
Stock Based Compensation [Line Items] | |||
Maximum common shares issued under the plan | 337,500 | ||
Non-option awards granted | 168,750 | ||
Additional common shares available for issuance | 393,750 | ||
Grants vest at the end of | 4 years | ||
Option Activity Under the 2003 Plan [Member] | Minimum [Member] | |||
Stock Based Compensation [Line Items] | |||
Grants vest at the end of | 3 years | ||
Option Activity Under the 2003 Plan [Member] | Maximum [Member] | |||
Stock Based Compensation [Line Items] | |||
Grants vest at the end of | 5 years | ||
Restricted Stock [Member] | |||
Stock Based Compensation [Line Items] | |||
Tax benefit associated with compensation expense | 127,000 | 115,000 | 75,000 |
Total compensation cost | $363,000 | $288,000 | $187,000 |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Option Activity (Detail) (Option Activity Under the 2003 Plan [Member], USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 |
Option Activity Under the 2003 Plan [Member] | |
Schedule Of Stock Option Activity [Line Items] | |
Option outstanding, Shares, Beginning balance | 91,447 |
Option granted, Shares | 0 |
Option Exercised, Shares | -11,250 |
Option forfeited, Shares | -2,250 |
Option outstanding, Shares, Ending balance | 77,947 |
Option Exercisable, Shares, Ending balance | 59,215 |
Option outstanding, Weighted Average Exercise Price, Beginning balance | $11.29 |
Option Granted, Weighted Average Exercise Price | $0 |
Option Exercised, Weighted Average Exercise Price | $10.84 |
Option Forfeited, Weighted Average Exercise Price | $11.60 |
Option Outstanding, Weighted Average Exercise Price, Ending balance | $11.35 |
Option Exercisable, Weighted Average Exercise Price, Ending balance | $11.23 |
Option Outstanding, Weighted Average Remaining Contractual Term | 5 years 2 months 9 days |
Option Exercisable, Weighted Average Remaining Contractual Term | 4 years 9 months 18 days |
Option outstanding, Aggregate Intrinsic Value | $1,152,901 |
Option Exercisable, Aggregate Intrinsic Value | $882,658 |
ShareBased_Compensation_Fair_V
Share-Based Compensation - Fair Value of Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Dividend yields | 2.01% | 1.98% | 2.56% |
Volatility factors of expected market price of common stock | 29.54% | 29.75% | 29.47% |
Risk-free interest rates | 2.66% | 2.16% | 1.84% |
Expected life of options | 8 years | 8 years | 8 years |
ShareBased_Compensation_Summar1
Share-Based Compensation - Summary of Option Activity Under 2013 Plan (Detail) (Option Activity Under the 2013 Plan [Member], USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 |
Option Activity Under the 2013 Plan [Member] | |
Schedule Of Stock Option Activity [Line Items] | |
Option outstanding, Shares, Beginning balance | 46,888 |
Option granted, Shares | 40,259 |
Option Exercised, Shares | 0 |
Option forfeited, Shares | -3,000 |
Option outstanding, Shares, Ending balance | 87,147 |
Option Exercisable, Shares, Ending balance | 14,496 |
Option outstanding, Weighted Average Exercise Price, Beginning balance | $20.27 |
Option Granted, Weighted Average Exercise Price | $22.36 |
Option Exercised, Weighted Average Exercise Price | $0 |
Option Forfeited, Weighted Average Exercise Price | $21.12 |
Option Outstanding, Weighted Average Exercise Price, Ending balance | $21.24 |
Option Exercisable, Weighted Average Exercise Price, Ending balance | $20.23 |
Option Outstanding, Weighted Average Remaining Contractual Term | 8 years 10 months 2 days |
Option Exercisable, Weighted Average Remaining Contractual Term | 8 years 5 months 16 days |
Option outstanding, Aggregate Intrinsic Value | $412,000 |
Option Exercisable, Aggregate Intrinsic Value | $85,728 |
ShareBased_Compensation_Summar2
Share-Based Compensation - Summary of Status of Non-vested, Restricted and Performance Shares (Detail) (Restricted and Performance Shares [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted and Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested beginning of year, Shares | 85,875 |
Vested, Shares | 0 |
Granted, Shares | 9,007 |
Forfeited, Shares | -10,125 |
Non-vested, end of year, Shares | 84,757 |
Non-vested beginning of year, Weighted Average Grant Date Fair Value | $14.17 |
Vested, Weighted Average Grant Date Fair Value | $0 |
Granted, Weighted Average Grant Date Fair Value | $22.20 |
Forfeited, Weighted Average Grant Date Fair Value | $12.88 |
Non-vested end of year, Weighted Average Grant Date Fair Value | $15.18 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative [Line Items] | ||
LIBOR period | 3 months | |
Weighted average fixed rate | 6.14% | |
Recorded period of effectiveness of cash flow hedges on net income | 12 months | |
Recorded period of effectiveness of fair value hedges on net income | 12 months | |
Recorded period of effectiveness of fair value of derivatives on net income | 12 months | |
Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Notional amount of interest | 30.5 | $30.50 |
Derivative in Fair Value Hedging Relationship [Member] | ||
Derivative [Line Items] | ||
Notional amount of interest | 102.7 | $95.30 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Fair Value of Derivative Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Total Asset Derivatives | $1,655 | $159 |
Total Liability Derivatives | 4,547 | 2,795 |
Derivatives Designated as Hedging Instruments [Member] | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Total Asset Derivatives | 1,208 | -53 |
Total Liability Derivatives | 4,547 | 2,773 |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Contracts One [Member] | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Total Asset Derivatives | 7 | |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Contracts One [Member] | Other Liabilities [Member] | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Total Liability Derivatives | 1,208 | -53 |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Contracts Two [Member] | Other Liabilities [Member] | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Total Liability Derivatives | 3,339 | 2,826 |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Contracts Two [Member] | Other Assets [Member] | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Total Asset Derivatives | 1,208 | -60 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Total Asset Derivatives | 447 | 212 |
Total Liability Derivatives | 22 | |
Derivatives Not Designated as Hedging Instruments [Member] | Mortgage Loan Contracts [Member] | Other Liabilities [Member] | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Total Liability Derivatives | 22 | |
Derivatives Not Designated as Hedging Instruments [Member] | Mortgage Loan Contracts [Member] | Other Assets [Member] | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Total Asset Derivatives | $447 | $212 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Effect of Derivative Instruments on Consolidated Statement of Income Derivative in Cash Flow Hedging Relationship (Detail) (Cash Flow Hedging [Member], Interest Rate Contracts One [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flow Hedging [Member] | Interest Rate Contracts One [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Loss Recognized in Other Comprehensive Income on Derivative (Effective Portion) | ($332) | $1,734 | ($376) |
Derivative_Financial_Instrumen5
Derivative Financial Instruments - Effect of Derivative Instruments on Consolidated Statement of Income Derivative in Fair Value Hedging Relationship (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Income - Loans [Member] | Derivative in Fair Value Hedging Relationship [Member] | Interest Rate Contracts One [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized on Derivative | $1,261 | ($2,267) | $28 |
Interest Income - Loans [Member] | Derivative in Fair Value Hedging Relationship [Member] | Interest Rate Contracts Two [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized on Derivative | -1,261 | 2,267 | -28 |
Derivatives Not Designated as Hedging Instruments [Member] | Other income - Gain on Sale of Loans [Member] | Mortgage Loan Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized on Derivative | $256 | ($667) | $196 |
Recovered_Sheet1
Disclosures about Fair Value of Assets and Liabilities - Fair Value Measurements of Assets and Liabilities Recognized on a Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | $323,764 | $508,591 |
U.S. Treasury and Federal Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 26,823 | 43,134 |
State and Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 47,952 | 177,898 |
Federal Agency Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 122,860 | 114,706 |
Federal Agency Mortgage-backed Pools [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 125,395 | 170,894 |
Private Labeled Mortgage-backed Pools [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 689 | 1,226 |
Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 45 | 733 |
Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 323,764 | 508,591 |
Recurring Basis [Member] | U.S. Treasury and Federal Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 26,823 | 43,134 |
Recurring Basis [Member] | State and Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 47,952 | 177,898 |
Recurring Basis [Member] | Federal Agency Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 122,860 | 114,706 |
Recurring Basis [Member] | Federal Agency Mortgage-backed Pools [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 125,395 | 170,894 |
Recurring Basis [Member] | Private Labeled Mortgage-backed Pools [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 689 | 1,226 |
Recurring Basis [Member] | Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 45 | 733 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 323,764 | 508,591 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury and Federal Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 26,823 | 43,134 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | State and Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 47,952 | 177,898 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Federal Agency Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 122,860 | 114,706 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Federal Agency Mortgage-backed Pools [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 125,395 | 170,894 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Private Labeled Mortgage-backed Pools [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 689 | 1,226 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 45 | 733 |
Recurring Basis [Member] | Hedged Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 101,445 | 95,372 |
Recurring Basis [Member] | Hedged Loans [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 101,445 | 95,372 |
Recurring Basis [Member] | Forward Sale Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 447 | 212 |
Recurring Basis [Member] | Forward Sale Commitments [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 447 | 212 |
Recurring Basis [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | -4,546 | -2,773 |
Recurring Basis [Member] | Interest Rate Swap [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | -4,546 | -2,773 |
Recurring Basis [Member] | Commitments to Originate Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | -22 | |
Recurring Basis [Member] | Commitments to Originate Loans [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | ($22) |
Recovered_Sheet2
Disclosures about Fair Value of Assets and Liabilities - Realized Gains and Losses included in Net Income for Periods in Consolidated Statements of Income (Detail) (Non Interest Income Total Gains and Losses [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Included in net income | $256 | ($667) | $196 |
Hedged Loans [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Included in net income | 1,261 | -2,267 | 28 |
Interest Rate Swap [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Included in net income | -1,261 | 2,267 | -28 |
Derivative Loan Commitments [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Included in net income | $256 | ($667) | $196 |
Disclosures_about_Fair_Value_o2
Disclosures about Fair Value of Assets and Liabilities - Other Assets Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Impaired loans | $9,464 | $6,114 |
Fair Value, Measurements, Nonrecurring [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Impaired loans | 7,642 | 7,039 |
Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Impaired loans | 9,464 | 6,114 |
Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Impaired loans | 7,642 | 7,039 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Impaired loans | 9,464 | 6,114 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Impaired loans | $7,642 | $7,039 |
Disclosures_about_Fair_Value_o3
Disclosures about Fair Value of Assets and Liabilities - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | ||
Reduced in carrying amount of mortgage servicing rights | ($338,000) | ($389,000) |
Disclosures_about_Fair_Value_o4
Disclosures about Fair Value of Assets and Liabilities - Qualitative Information about Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements, Other than Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 10.00% | |
Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | 9,464 | 6,114 |
Valuation Technique | Collateral based measurement | |
Valuation Technique | Collateral based measurement | |
Unobservable Inputs | Discount to reflect current market conditions and ultimate collectability | |
Unobservable Inputs | Discount to reflect current market conditions and ultimate collectability | |
Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | 7,642 | 7,039 |
Valuation Technique | Discounted cashflows | |
Valuation Technique | Discounted cashflows | |
Unobservable Inputs | Discount rate, Constant prepayment rate, Probably of default | |
Unobservable Inputs | Discount rate, Constant prepayment rate, Probably of default | |
Minimum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 10.00% | 10.00% |
Minimum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 10.00% | 10.00% |
Constant prepayment rate | 4.00% | 4.00% |
Probably of default | 1.00% | 1.00% |
Maximum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 15.00% | 15.00% |
Maximum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 15.00% | 15.00% |
Constant prepayment rate | 7.00% | 7.00% |
Probably of default | 10.00% | 10.00% |
Weighted Average [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 12.00% | 12.00% |
Weighted Average [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount rate | 12.00% | 12.00% |
Constant prepayment rate | 4.60% | 4.60% |
Probably of default | 4.50% | 4.50% |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Summary of Estimated Fair Values of Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $43,476 | $31,721 |
Investment securities, held to maturity | 165,767 | 9,910 |
Loans held for sale | 6,143 | 3,281 |
Loans excluding loan level hedges, net | 1,365,885 | 1,056,022 |
Stock in FHLB and FRB | 11,348 | 14,184 |
Interest receivable | 8,246 | 7,501 |
Liabilities | ||
Non-interest bearing deposits | 267,667 | 231,096 |
Subordinated debentures | 32,642 | 32,486 |
Interest payable | 497 | 506 |
Carrying Amount [Member] | ||
Assets | ||
Cash and due from banks | 43,476 | 31,721 |
Investment securities, held to maturity | 165,767 | 9,910 |
Loans held for sale | 6,143 | 3,281 |
Loans excluding loan level hedges, net | 1,260,608 | 957,464 |
Stock in FHLB and FRB | 11,348 | 14,184 |
Interest receivable | 8,246 | 7,501 |
Liabilities | ||
Non-interest bearing deposits | 267,667 | 231,096 |
Interest-bearing deposits | 1,214,652 | 1,060,424 |
Borrowings | 351,198 | 256,296 |
Subordinated debentures | 32,642 | 32,486 |
Interest payable | 497 | 506 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets | ||
Cash and due from banks | 43,476 | 31,721 |
Liabilities | ||
Non-interest bearing deposits | 267,667 | 231,096 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets | ||
Stock in FHLB and FRB | 11,348 | 14,184 |
Interest receivable | 8,246 | 7,501 |
Liabilities | ||
Interest-bearing deposits | 1,158,912 | 1,002,980 |
Borrowings | 348,597 | 257,093 |
Subordinated debentures | 32,669 | 32,528 |
Interest payable | 497 | 506 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets | ||
Investment securities, held to maturity | 169,904 | 9,910 |
Loans held for sale | 6,143 | 3,281 |
Loans excluding loan level hedges, net | $1,295,133 | $975,910 |
Business_Combination_Additiona
Business Combination - Additional Information (Detail) (USD $) | 0 Months Ended | ||
Feb. 18, 2015 | Apr. 03, 2014 | Dec. 31, 2014 | |
Business Combination Transactions [Line Items] | |||
Reported total assets of acquiree | $158,585,000 | ||
Total deposits held by acquiree | 138,660,000 | ||
Peoples Bancorp Inc [Member] | |||
Business Combination Transactions [Line Items] | |||
Reported total assets of acquiree | 486,600,000 | ||
Total deposits held by acquiree | 368,700,000 | ||
Total loans of acquiree | 235,100,000 | ||
Peoples Bancorp Inc [Member] | Subsequent Event [Member] | |||
Business Combination Transactions [Line Items] | |||
Exchange ratio per share to Peoples shareholder | 95.00% | ||
Cash paid for each share to Peoples shareholder | $9.75 | ||
Market closing price per share | $23.02 | ||
Estimated transaction value | $73,100,000 |
Condensed_Financial_Informatio2
Condensed Financial Information (Parent Company Only) - Condensed Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Total cash and cash equivalents | $43,476 | $31,721 | $30,735 | $20,447 |
Other assets | 32,141 | 24,832 | ||
Total assets | 2,076,922 | 1,758,276 | ||
Liabilities | ||||
Subordinated debentures | 32,642 | 32,486 | ||
Other liabilities | 15,852 | 12,948 | ||
Stockholders' Equity | 194,414 | 164,520 | 158,968 | 121,465 |
Total liabilities and stockholders' equity | 2,076,922 | 1,758,276 | ||
Parent Company [Member] | ||||
Assets | ||||
Total cash and cash equivalents | 19,195 | 16,807 | 13,639 | 8,262 |
Investment in Bank | 211,928 | 181,808 | ||
Other assets | 2,758 | 3,664 | ||
Total assets | 233,881 | 202,279 | ||
Liabilities | ||||
Subordinated debentures | 32,642 | 32,486 | ||
Other liabilities | 6,825 | 5,273 | ||
Stockholders' Equity | 194,414 | 164,520 | ||
Total liabilities and stockholders' equity | $233,881 | $202,279 |
Condensed_Financial_Informatio3
Condensed Financial Information (Parent Company Only) - Condensed Statements of Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Income (Expense) | |||||||||||
Other income | $1,013 | $1,103 | $466 | ||||||||
Interest expense | -3,242 | -3,451 | -3,334 | -3,195 | -3,310 | -3,372 | -3,402 | -3,419 | -13,222 | -13,503 | -14,322 |
Employee benefit expense | -32,682 | -31,032 | -28,383 | ||||||||
Income Before Income Tax | 24,256 | 26,924 | 27,989 | ||||||||
Income Tax Benefit | -6,155 | -7,048 | -8,446 | ||||||||
Net Income | 4,948 | 4,958 | 4,778 | 3,417 | 4,115 | 4,785 | 5,665 | 5,311 | 18,101 | 19,876 | 19,543 |
Net Income Available to Common Shareholders | 4,917 | 4,918 | 4,747 | 3,386 | 4,052 | 4,719 | 5,569 | 5,165 | 17,968 | 19,506 | 19,062 |
Parent Company [Member] | |||||||||||
Operating Income (Expense) | |||||||||||
Dividend income from Bank | 12,500 | 7,500 | 16,500 | ||||||||
Investment income | 12 | 4 | |||||||||
Other income | 17 | 175 | |||||||||
Interest expense | -2,009 | -2,010 | -1,950 | ||||||||
Employee benefit expense | -965 | -811 | -695 | ||||||||
Other expense | 883 | 646 | -200 | ||||||||
Income Before Income Tax | 10,438 | 5,504 | 13,655 | ||||||||
Undistributed Income of Subsidiaries | 6,814 | 13,144 | 4,766 | ||||||||
Income Before Tax | 17,252 | 18,648 | 18,421 | ||||||||
Income Tax Benefit | 849 | 1,228 | 1,122 | ||||||||
Net Income | 18,101 | 19,876 | 19,543 | ||||||||
Preferred stock dividend | -133 | -370 | -481 | ||||||||
Net Income Available to Common Shareholders | $17,968 | $19,506 | $19,062 |
Condensed_Financial_Informatio4
Condensed Financial Information (Parent Company Only) - Condensed Statements of Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Condensed Consolidating Statement of Comprehensive Income [Line Items] | |||||||||||
Net income | $4,948 | $4,958 | $4,778 | $3,417 | $4,115 | $4,785 | $5,665 | $5,311 | $18,101 | $19,876 | $19,543 |
Other Comprehensive Income (Loss) | |||||||||||
Change in fair value of derivative instruments, net of taxes | -332 | 1,734 | -376 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 3,250 | -10,830 | 1,259 | ||||||||
Comprehensive Income | 21,351 | 9,046 | 20,802 | ||||||||
Parent Company [Member] | |||||||||||
Schedule of Condensed Consolidating Statement of Comprehensive Income [Line Items] | |||||||||||
Net income | 18,101 | 19,876 | 19,543 | ||||||||
Other Comprehensive Income (Loss) | |||||||||||
Change in fair value of derivative instruments, net of taxes | -332 | 1,734 | -376 | ||||||||
Unrealized appreciation for the period on held-to-maturity securities, net of taxes | -209 | ||||||||||
Unrealized appreciation (depreciation) on available-for-sale securities, net of taxes | 4,432 | -12,320 | 1,636 | ||||||||
Less: reclassification adjustment for realized gains included in net income, net of taxes | -642 | -244 | 1 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 3,249 | -10,830 | 1,259 | ||||||||
Comprehensive Income | $21,350 | $9,046 | $20,802 |
Condensed_Financial_Informatio5
Condensed Financial Information (Parent Company Only) - Condensed Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net income | $18,101 | $19,876 | $19,543 |
Items not requiring (providing) cash | |||
Share based compensation | 203 | 48 | 33 |
Other assets | -4,945 | 9,905 | 1,030 |
Other liabilities | 712 | 498 | -3,072 |
Net cash provided by operating activities | 17,665 | 46,965 | 26,346 |
Investing Activities | |||
Net cash provided by (used in) by investing activities | -149,046 | 49,797 | -60,383 |
Financing Activities | |||
Dividends paid on preferred shares | -133 | -370 | -481 |
Dividends paid on common shares | -4,744 | -3,655 | -3,047 |
Net cash provided by (used in) financing activities | 143,136 | -95,776 | 44,325 |
Net Change in Cash and Cash Equivalents | 11,755 | 986 | 10,288 |
Cash and Cash Equivalents, Beginning of Period | 31,721 | 30,735 | 20,447 |
Cash and Cash Equivalents, End of Period | 43,476 | 31,721 | 30,735 |
Summit [Member] | |||
Investing Activities | |||
Acquisition of businesses | 7,914 | ||
Heartland [Member] | |||
Investing Activities | |||
Acquisition of businesses | 26,283 | ||
Parent Company [Member] | |||
Operating Activities | |||
Net income | 18,101 | 19,876 | 19,543 |
Items not requiring (providing) cash | |||
Equity in undistributed net income of subsidiaries | -6,814 | -13,144 | -4,766 |
Income taxes receivable | 434 | -793 | -137 |
Share based compensation | 203 | 48 | 33 |
Amortization of unearned compensation | 363 | 288 | 187 |
Issuance of restricted shares | 115 | ||
Other assets | 472 | 626 | -176 |
Other liabilities | 1,377 | 97 | 1,128 |
Net cash provided by operating activities | 14,136 | 6,998 | 15,927 |
Investing Activities | |||
Net cash provided by (used in) by investing activities | -7,036 | -7,248 | |
Financing Activities | |||
Dividends paid on preferred shares | -133 | -370 | -481 |
Dividends paid on common shares | -4,744 | -3,655 | -3,047 |
Exercise of stock options | 165 | 195 | 226 |
Net cash provided by (used in) financing activities | -4,712 | -3,830 | -3,302 |
Net Change in Cash and Cash Equivalents | 2,388 | 3,168 | 5,377 |
Cash and Cash Equivalents, Beginning of Period | 16,807 | 13,639 | 8,262 |
Cash and Cash Equivalents, End of Period | 19,195 | 16,807 | 13,639 |
Parent Company [Member] | Summit [Member] | |||
Investing Activities | |||
Acquisition of businesses | -7,036 | ||
Parent Company [Member] | Heartland [Member] | |||
Investing Activities | |||
Acquisition of businesses | ($7,248) |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (Unaudited) - Summary of Quarterly Consolidated Results of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $19,765 | $19,851 | $20,122 | $16,467 | $17,436 | $18,041 | $19,977 | $19,429 | $76,205 | $74,886 | $72,528 |
Interest expense | 3,242 | 3,451 | 3,334 | 3,195 | 3,310 | 3,372 | 3,402 | 3,419 | 13,222 | 13,503 | 14,322 |
Net interest income | 16,523 | 16,400 | 16,788 | 13,272 | 14,126 | 14,669 | 16,575 | 16,010 | 62,983 | 61,383 | 58,206 |
Provision for loan losses | 978 | 1,741 | 339 | -997 | 104 | 729 | 2,084 | 3,058 | 1,920 | 3,524 | |
Gain on sale of securities | 988 | 6 | 368 | 988 | 374 | 2 | |||||
Net income | 4,948 | 4,958 | 4,778 | 3,417 | 4,115 | 4,785 | 5,665 | 5,311 | 18,101 | 19,876 | 19,543 |
Net income available to common shareholders | $4,917 | $4,918 | $4,747 | $3,386 | $4,052 | $4,719 | $5,569 | $5,165 | $17,968 | $19,506 | $19,062 |
Earnings per share: | |||||||||||
Basic | $0.53 | $0.53 | $0.52 | $0.39 | $0.47 | $0.55 | $0.65 | $0.60 | $1.98 | $2.26 | $2.39 |
Diluted | $0.51 | $0.51 | $0.50 | $0.38 | $0.45 | $0.52 | $0.62 | $0.58 | $1.90 | $2.17 | $2.30 |
Average shares outstanding: | |||||||||||
Basic | 9,212,156 | 9,208,707 | 9,182,986 | 8,630,966 | 8,623,360 | 8,618,969 | 8,617,466 | 8,617,466 | 9,060,702 | 8,619,330 | 7,974,241 |
Diluted | 9,628,240 | 9,588,332 | 9,560,939 | 9,021,786 | 9,020,289 | 9,019,211 | 8,974,103 | 8,980,655 | 9,454,125 | 9,000,963 | 8,271,177 |