Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 03, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'BMTC | ' | ' |
Entity Registrant Name | 'BRYN MAWR BANK CORP | ' | ' |
Entity Central Index Key | '0000802681 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 13,651,239 | ' |
Entity Public Float | ' | ' | $313,375,052 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $13,453 | $16,203 |
Interest bearing deposits with banks | 67,618 | 159,483 |
Cash and cash equivalents | 81,071 | 175,686 |
Investment securities available for sale, at fair value (amortized cost of $287,127 and $311,747 as of December 31, 2013 and December 31, 2012 respectively) | 285,808 | 316,614 |
Investment securities, trading | 3,437 | 1,447 |
Loans held for sale | 1,350 | 3,412 |
Portfolio loans and leases | 1,547,185 | 1,398,456 |
Less: Allowance for loan and lease losses | -15,515 | -14,425 |
Net portfolio loans and leases | 1,531,670 | 1,384,031 |
Premises and equipment, net | 31,796 | 31,170 |
Accrued interest receivable | 5,728 | 5,955 |
Deferred income taxes | 8,690 | 12,303 |
Mortgage servicing rights | 4,750 | 4,491 |
Bank owned life insurance | 20,220 | 19,862 |
Federal Home Loan Bank stock | 11,654 | 10,761 |
Goodwill | 32,843 | 32,897 |
Intangible assets | 19,365 | 21,998 |
Other investments | 4,437 | 4,346 |
Other assets | 18,846 | 10,912 |
Total assets | 2,061,665 | 2,035,885 |
Deposits: | ' | ' |
Non-interest-bearing | 426,640 | 399,673 |
Interest-bearing | 1,164,707 | 1,235,009 |
Total deposits | 1,591,347 | 1,634,682 |
Short-term borrowings | 10,891 | 9,403 |
FHLB advances and other borrowings | 205,644 | 161,315 |
Accrued interest payable | 841 | 1,233 |
Other liabilities | 23,044 | 25,688 |
Total liabilities | 1,831,767 | 1,832,321 |
Shareholders' equity | ' | ' |
Common stock, par value $1; authorized 100,000,000 shares; issued 16,596,869 and 16,390,608 shares as of December 31, 2013 and December 31, 2012, respectively, and outstanding of 13,650,354 and 13,412,690 as of December 31, 2013 and December 31, 2012, respectively | 16,597 | 16,390 |
Paid-in capital in excess of par value | 95,673 | 89,137 |
Less: Common stock in treasury at cost - 2,946,515 and 2,977,918 shares as of December 31, 2013 and December 31, 2012, respectively | -30,764 | -30,745 |
Accumulated other comprehensive loss, net of tax benefit | -5,565 | -10,078 |
Retained earnings | 153,957 | 138,860 |
Total shareholders' equity | 229,898 | 203,564 |
Total liabilities and shareholders' equity | $2,061,665 | $2,035,885 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Investment securities available for sale, amortized cost | $287,127 | $311,747 |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 16,596,869 | 16,390,608 |
Common stock, shares outstanding | 13,650,354 | 13,412,690 |
Common stock in treasury, shares | 2,946,515 | 2,977,918 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Interest income: | ' | ' | ' | |||
Interest and fees on loans and leases | $73,941 | $68,891 | $69,321 | |||
Interest on cash and cash equivalents | 158 | 127 | 115 | |||
Interest on investment securities: | ' | ' | ' | |||
Taxable | 3,799 | 3,970 | 4,488 | |||
Non-taxable | 396 | 208 | 226 | |||
Dividends | 123 | 127 | 412 | |||
Total interest income | 78,417 | 73,323 | 74,562 | |||
Interest expense on: | ' | ' | ' | |||
Deposits | 2,758 | 4,032 | 5,787 | |||
Short-term borrowings | 25 | 21 | 25 | |||
FHLB advances and other borrowings | 2,644 | 3,604 | 3,676 | |||
Subordinated debentures | ' | 931 | 1,123 | |||
Junior subordinated debentures | ' | ' | 1,050 | |||
Total interest expense | 5,427 | 8,588 | 11,661 | |||
Net interest income | 72,990 | 64,735 | 62,901 | |||
Provision for loan and lease losses | 3,575 | 4,003 | 6,088 | |||
Net interest income after provision for loan and lease losses | 69,415 | 60,732 | 56,813 | |||
Non-interest income: | ' | ' | ' | |||
Fees for wealth management services | 35,184 | 29,798 | 21,669 | |||
Service charges on deposits | 2,445 | 2,477 | 2,495 | |||
Loan servicing and other fees | 1,845 | 1,776 | 1,824 | |||
Net gain on sale of residential mortgage loans | 4,117 | 6,735 | 2,517 | |||
Net (loss) gain on sale of investment securities available for sale | -8 | 1,415 | 1,783 | |||
Net loss on sale of other real estate owned ("OREO") | -300 | -86 | -97 | |||
Bank owned life insurance ("BOLI") income | 358 | 428 | 462 | |||
Other operating income | 4,714 | 3,843 | 3,406 | |||
Total non-interest income | 48,355 | 46,386 | 34,059 | |||
Non-interest expenses: | ' | ' | ' | |||
Salaries and wages | 36,346 | 33,131 | 28,084 | |||
Employee benefits | 8,832 | 8,127 | 6,889 | |||
Net gain on curtailment of nonqualified pension plan | -690 | ' | ' | |||
Occupancy and bank premises | 6,862 | 5,874 | 5,176 | |||
Furniture, fixtures, and equipment | 3,977 | 3,727 | 3,509 | |||
Advertising | 1,526 | 1,309 | 1,166 | |||
Amortization of mortgage servicing rights | 740 | 966 | 749 | |||
Net impairment of mortgage servicing rights | 3 | 163 | 786 | |||
Amortization of intangible assets | 2,633 | 2,411 | 1,490 | |||
FDIC insurance | 1,063 | 970 | 1,186 | |||
Due diligence and merger-related expenses | 1,885 | 2,629 | 537 | |||
Early extinguishment of debt-costs and premiums | 347 | 526 | ' | |||
Professional fees | 2,456 | 2,868 | 2,311 | |||
Other operating expenses | 14,760 | 12,200 | 9,846 | |||
Total non-interest expenses | 80,740 | 74,901 | 61,729 | |||
Income (loss) before income taxes | 37,030 | 32,217 | 29,143 | |||
Income tax expense | 12,586 | 11,070 | 9,541 | |||
Net income | $24,444 | $21,147 | $19,602 | |||
Basic earnings per common share | $1.84 | $1.62 | $1.55 | |||
Diluted earnings per common share | $1.80 | $1.60 | $1.54 | |||
Dividends declared per share | $0.69 | $0.64 | $0.60 | |||
Weighted-average basic shares outstanding | 13,311,215 | [1] | 13,090,110 | [1] | 12,659,824 | [1] |
Dilutive shares | 260,395 | 151,736 | 82,313 | |||
Adjusted weighted-average diluted shares | 13,571,610 | 13,241,846 | 12,742,137 | |||
[1] | excludes restricted stock |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income | $24,444 | $21,147 | $19,602 |
Net change in unrealized (losses) gains on investment securities available for sale: | ' | ' | ' |
Net unrealized (losses) gains arising during the period, net of tax (benefit) expense of $(2,168), $1,233 and $1,021, respectively | -4,026 | 2,292 | 1,897 |
Less: reclassification adjustment for net losses (gains) on sales realized in net income, net of tax (benefit) expense of $(3), $495, and $624, respectively | 5 | -920 | -1,159 |
Unrealized investment (losses) gains, net of tax (benefit) expense of $(2,165), $739 and $397, respectively | -4,021 | 1,372 | 738 |
Net change in fair value of derivative used for cash flow hedge: | ' | ' | ' |
Change in fair value of hedging instruments, net of tax (expense) benefit of $(412), $13 and $0, respectively | 766 | -23 | ' |
Net change in unfunded pension liability: | ' | ' | ' |
Change in unfunded pension liability related to unrealized loss, prior service cost and transition obligation, net of tax expense (benefit) of $3,442, $(33) and $(2,879), respectively | 6,391 | -62 | -5,346 |
Change in unfunded pension liability related to curtailment, net of tax expense of $741, $0, and $0, respectively | 1,377 | ' | ' |
Total change in unfunded pension liability, net of tax expense (benefit) of $4,183, $(33) and $(2,879), respectively | 7,768 | -62 | -5,346 |
Total other comprehensive income (loss) | 4,513 | 1,287 | -4,608 |
Total comprehensive income | $28,957 | $22,434 | $14,994 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net unrealized (losses)gains arising during the period, tax (benefit)expense | ($2,168) | $1,233 | $1,021 |
Reclassification adjustment for net losses (gains) on sales realized in net income, net of tax (benefit) expense | -3 | 495 | 624 |
Unrealized investment (losses) gains, net of tax (benefit) expense | -2,165 | 739 | 397 |
Change in fair value of hedging instruments, net of tax (expense) benefit | -412 | 13 | 0 |
Change in unfunded pension liability related to unrealized loss, prior service cost and transition obligation, tax expense (benefit) | 3,442 | -33 | -2,879 |
Change in unfunded pension liability related to curtailment, net of tax expense | 741 | 0 | 0 |
Total Change in unfunded pension liability, tax expense (benefit) | $4,183 | ($33) | ($2,879) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities: | ' | ' | ' |
Net income | $24,444 | $21,147 | $19,602 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Provision for loan and lease losses | 3,575 | 4,003 | 6,088 |
Depreciation of fixed assets and net amortization of investment premiums and discounts | 6,836 | 6,713 | 5,688 |
Net loss (gain) on sale of investment securities available for sale | 8 | -1,415 | -1,783 |
Net gain on sale of residential mortgages | -4,117 | -6,735 | -2,517 |
Stock based compensation cost | 1,004 | 1,283 | 876 |
Amortization and net impairment of mortgage servicing rights | 743 | 1,129 | 1,535 |
Net accretion of fair value adjustments | -3,490 | -1,892 | -2,037 |
Amortization of intangible assets | 2,633 | 2,411 | 1,490 |
Impairment of other real estate owned ("OREO") | ' | ' | 251 |
Net loss on sale of OREO | 300 | 86 | 97 |
Net increase in cash surrender value of bank owned life insurance ("BOLI") | -358 | -428 | -462 |
Other, net | 1,253 | 297 | 3,834 |
Loans originated for resale | -126,920 | -206,637 | -78,212 |
Proceeds from loans sold | 132,097 | 209,969 | 83,328 |
Contributions to pension plans | ' | ' | -10,000 |
Provision (benefit) for deferred income taxes | 1,195 | -505 | 3,310 |
Change in income taxes payable/receivable | 843 | 3,437 | -3,270 |
Change in accrued interest receivable | 227 | 355 | 409 |
Change in accrued interest payable | -392 | -575 | -1,701 |
Net cash provided by operating activities | 39,881 | 32,643 | 26,526 |
Investing activities: | ' | ' | ' |
Purchases of investment securities | -97,517 | -223,019 | -216,948 |
Proceeds from maturity of investment securities and paydowns of mortgage-related securities | 62,643 | 48,576 | 36,532 |
Proceeds from sale of investment securities available for sale | 14,942 | 40,640 | 89,661 |
Net change in FHLB stock | -893 | 827 | ' |
Proceeds from calls of investment securities | 40,287 | 89,992 | 137,410 |
Net change in other investments | -91 | -239 | -619 |
Net portfolio loan and lease originations | -148,102 | -28,082 | -101,900 |
Purchases of premises and equipment | -3,571 | -4,048 | -2,612 |
Acquisitions, net of cash acquired | ' | -15,951 | -13,367 |
Capitalize costs to OREO | -485 | -61 | ' |
Proceeds from sale of OREO | 1,089 | 567 | 2,793 |
Net cash used in investing activities | -131,698 | -90,798 | -69,050 |
Financing activities: | ' | ' | ' |
Change in deposits | -42,986 | 182,368 | 41,482 |
Change in short-term borrowings | 1,488 | -3,460 | 2,812 |
Dividends paid | -9,297 | -8,529 | -7,679 |
Change in FHLB advances and other borrowings | 44,479 | 13,962 | -11,797 |
Repayment of subordinated debentures | ' | -22,500 | ' |
Repayment of junior subordinated debentures | ' | ' | -12,028 |
Payment of contingent consideration for business combinations | -2,100 | -1,050 | ' |
Excess tax benefit from stock-based compensation | 708 | 112 | 141 |
Proceeds from sale of treasury stock from deferred compensation plans | 764 | 317 | ' |
Net purchase of treasury stock for deferred compensation plans | ' | ' | -42 |
Proceeds from issuance of common stock | 176 | 2,118 | 8,325 |
Proceeds from exercise of stock options | 3,970 | 1,363 | 966 |
Net cash (used in) provided by financing activities | -2,798 | 164,701 | 22,180 |
Change in cash and cash equivalents | -94,615 | 106,546 | -20,344 |
Cash and cash equivalents at beginning of period | 175,686 | 69,140 | 89,484 |
Cash and cash equivalents at end of period | 81,071 | 175,686 | 69,140 |
Cash paid during the year for: | ' | ' | ' |
Income taxes | 9,775 | 8,092 | 9,213 |
Interest | 5,819 | 8,947 | 13,362 |
Available for sale securities purchased, not settled | ' | 255 | ' |
Change in other comprehensive loss | 6,943 | 1,980 | -7,090 |
Change in deferred tax due to change in comprehensive income | 2,430 | 693 | 2,482 |
Transfer of loans to other real estate owned | 853 | 949 | 1,163 |
Issuance of shares and options for acquisitions | ' | ' | 6,661 |
Acquisition of noncash assets and liabilities: | ' | ' | ' |
Assets acquired | ' | 90,853 | 20,339 |
Liabilities assumed | ' | $74,902 | ' |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Shareholders' Equity (USD $) | Total | Common Stock | Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings |
In Thousands, except Share data | ||||||
Beginning balance at Dec. 31, 2010 | $160,037 | $15,110 | $68,398 | ($31,033) | ($6,757) | $114,319 |
Beginning balance (in shares) at Dec. 31, 2010 | ' | 15,109,718 | ' | ' | ' | ' |
Net income | 19,602 | ' | ' | ' | ' | 19,602 |
Dividends declared, $0.69 per share in 2013, $0.64 per share in 2012, $0.60 per share in 2011 | -7,679 | ' | ' | ' | ' | -7,679 |
Other comprehensive income (loss), net of tax expense (benefit) of $2,430 in 2013, $693 in 2012, $(2,482) in 2011 | -4,608 | ' | ' | ' | -4,608 | ' |
Stock based compensation | 876 | ' | 876 | ' | ' | ' |
Tax benefit from stock-based compensation | 141 | ' | 141 | ' | ' | ' |
Retirement of treasury stock, shares | ' | -4,936 | ' | ' | ' | ' |
Retirement of treasury stock | ' | -5 | -43 | 48 | ' | ' |
Net purchase of treasury stock for deferred compensation plans | -42 | ' | ' | -42 | ' | ' |
Dividend Reinvestment and Stock Purchase Plan, shares | ' | 448,377 | ' | ' | ' | ' |
Dividend Reinvestment and Stock Purchase Plan | 8,325 | 448 | 7,877 | ' | ' | ' |
Share-based awards and options exercises, shares | ' | 228,893 | ' | ' | ' | ' |
Share-based awards and options exercises | 1,066 | 229 | 837 | ' | ' | ' |
Acquisitions, shares | ' | 321,929 | ' | ' | ' | ' |
Acquisitions | 6,661 | 322 | 6,339 | ' | ' | ' |
Ending balance at Dec. 31, 2011 | 184,379 | 16,104 | 84,425 | -31,027 | -11,365 | 126,242 |
Ending balance (in shares) at Dec. 31, 2011 | ' | 16,103,981 | ' | ' | ' | ' |
Net income | 21,147 | ' | ' | ' | ' | 21,147 |
Dividends declared, $0.69 per share in 2013, $0.64 per share in 2012, $0.60 per share in 2011 | -8,529 | ' | ' | ' | ' | -8,529 |
Other comprehensive income (loss), net of tax expense (benefit) of $2,430 in 2013, $693 in 2012, $(2,482) in 2011 | 1,287 | ' | ' | ' | 1,287 | ' |
Stock based compensation | 1,283 | ' | 1,283 | ' | ' | ' |
Tax benefit from stock-based compensation | 112 | ' | 112 | ' | ' | ' |
Retirement of treasury stock, shares | ' | -4,249 | ' | ' | ' | ' |
Retirement of treasury stock | ' | -4 | -40 | 44 | ' | ' |
Net sale of treasury stock from stock award and deferred compensation plans | 317 | ' | 79 | 238 | ' | ' |
Dividend Reinvestment and Stock Purchase Plan, shares | ' | 108,918 | ' | ' | ' | ' |
Dividend Reinvestment and Stock Purchase Plan | 2,118 | 109 | 2,009 | ' | ' | ' |
Share-based awards and options exercises, shares | ' | 181,958 | ' | ' | ' | ' |
Share-based awards and options exercises | 1,450 | 181 | 1,269 | ' | ' | ' |
Ending balance at Dec. 31, 2012 | 203,564 | 16,390 | 89,137 | -30,745 | -10,078 | 138,860 |
Ending balance (in shares) at Dec. 31, 2012 | ' | 16,390,608 | ' | ' | ' | ' |
Net income | 24,444 | ' | ' | ' | ' | 24,444 |
Dividends declared, $0.69 per share in 2013, $0.64 per share in 2012, $0.60 per share in 2011 | -9,347 | ' | ' | ' | ' | -9,347 |
Other comprehensive income (loss), net of tax expense (benefit) of $2,430 in 2013, $693 in 2012, $(2,482) in 2011 | 4,513 | ' | ' | ' | 4,513 | ' |
Stock based compensation | 1,004 | ' | 1,004 | ' | ' | ' |
Tax benefit from stock-based compensation | 708 | ' | 708 | ' | ' | ' |
Retirement of treasury stock, shares | ' | -4,517 | ' | ' | ' | ' |
Retirement of treasury stock | ' | -4 | -41 | 45 | ' | ' |
Net sale of treasury stock from stock award and deferred compensation plans | 764 | ' | 828 | -64 | ' | ' |
Dividend Reinvestment and Stock Purchase Plan, shares | ' | 7,455 | ' | ' | ' | ' |
Dividend Reinvestment and Stock Purchase Plan | 176 | 7 | 169 | ' | ' | ' |
Share-based awards and options exercises, shares | ' | 203,323 | ' | ' | ' | ' |
Share-based awards and options exercises | 4,072 | 204 | 3,868 | ' | ' | ' |
Ending balance at Dec. 31, 2013 | $229,898 | $16,597 | $95,673 | ($30,764) | ($5,565) | $153,957 |
Ending balance (in shares) at Dec. 31, 2013 | ' | 16,596,869 | ' | ' | ' | ' |
Consolidated_Statement_of_Chan1
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Dividends declared, per share | $0.69 | $0.64 | $0.60 |
Other comprehensive income (loss), tax expense (benefit) | $2,430 | $693 | ($2,482) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Summary of Significant Accounting Policies | ' |
Note 1—Summary of Significant Accounting Policies | |
A. Nature of Business | |
The Bryn Mawr Trust Company (the “Bank”) received its Pennsylvania banking charter in 1889 and is a member of the Federal Reserve System. In 1986, Bryn Mawr Bank Corporation (the “Corporation”) was formed and on January 2, 1987, the Bank became a wholly-owned subsidiary of the Corporation. The Bank and Corporation are headquartered in Bryn Mawr, Pennsylvania, a western suburb of Philadelphia. The Corporation and its subsidiaries provide wealth management, community banking, residential mortgage lending, insurance and business banking services to its customers through 19 full service branches, seven retirement community offices, and five wealth offices located throughout Montgomery, Delaware, Chester and Dauphin counties in Pennsylvania and New Castle county in Delaware. In 2008, the Corporation opened the Bryn Mawr Trust Company of Delaware, a limited-purpose trust company in Greenville, Delaware, to further its long-term growth strategy, and diversify its asset base and client accounts. The common stock of the Corporation trades on the NASDAQ Stock Market (“NASDAQ”) under the symbol BMTC. | |
On November 17, 2012, the acquisition of $70.3 million of deposits, $76.6 million of loans and a branch location from the First Bank of Delaware (“FBD”), by the Corporation was completed. The transaction, which was accounted for as a business combination, enabled the Corporation to expand its banking arm into the Delaware market by opening its first full-service branch there, complementing its existing Wealth Management operations in the state. | |
On May 15, 2012, the acquisition of Davidson Trust Company (“DTC”) by the Corporation was completed. The acquisition of DTC initially increased the Corporation’s Wealth Management Division assets under management by $1.0 billion. The structure of the Corporation’s existing Wealth Management segment allowed the Corporation to integrate the operations of DTC into its existing wealth operations and enabled it to take advantage of the various synergies that existed between the two companies. | |
On May 27, 2011, the acquisition of the Private Wealth Management Group of the Hershey Trust Company (“PWMG”) by the Corporation was completed. The acquisition of PWMG initially increased the Corporation’s Wealth Management Division assets under management by $1.1 billion. In addition, the acquisition enabled the Wealth Management Division to extend into central Pennsylvania by continuing to operate the former PWMG offices located in Hershey, Pennsylvania. | |
The Corporation operates in a highly competitive market area that includes local, national and regional banks as competitors along with savings banks, credit unions, insurance companies, trust companies, registered investment advisors and mutual fund families. The Corporation and its subsidiaries are regulated by many regulatory agencies including the Securities and Exchange Commission (“SEC”), Federal Deposit Insurance Corporation (“FDIC”), the Federal Reserve and the Pennsylvania Department of Banking. | |
B. Basis of Presentation | |
The accounting policies of the Corporation conform to U.S. generally accepted accounting principles (“GAAP”) and predominant practices within the banking industry. | |
The Consolidated Financial Statements include the accounts of the Corporation and its wholly owned subsidiaries. The Corporation’s consolidated financial condition and results of operations consist almost entirely of the Bank’s financial condition and results of operations. All material, inter-company transactions and balances have been eliminated. | |
In preparing the Consolidated Financial Statements, the Corporation is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the dates of the balance sheets, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. | |
Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that in 2014, actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition. Amounts subject to significant estimates are items such as the allowance for loan and lease losses and lending related commitments, goodwill and intangible assets, pension and post-retirement obligations, the fair value of financial instruments and other-than-temporary impairments. Among other effects, such changes could result in future impairments of investment securities, goodwill and intangible assets and establishment of allowances for loan losses and lending-related commitments as well as increased pension and post-retirement expense. | |
Correction of an Immaterial Accounting Error | |
In September 2012, the Corporation identified an immaterial accounting error related to two of its deferred compensation plans. The provisions of the deferred compensation plans enabled certain executives and directors to have bonus payments and director’s fees deferred, and allowed the participants to direct the investment of the deferred amounts. One of the investment choices offered to the participants was the Corporation’s common stock. This stock, along with the participants’ other investment choices, were placed in a trust which is owned by the Corporation. The carrying value of this trust is periodically adjusted to reflect changes in its fair market value. The portion of this trust comprised of the Corporation’s common stock was incorrectly reported as an asset on the Corporation’s balance sheet. The stock held in the trust should have been classified as treasury stock and reported in the shareholders’ equity section of the Corporation’s balance sheet, at cost. | |
C. Cash and Cash Equivalents | |
Cash and cash equivalents include cash and due from banks, interest –bearing deposits, federal funds sold and money market funds with other banks with original maturities of three months or less. Cash balances required to meet regulatory reserve requirements of the Federal Reserve Board amounted to $367 thousand and $3.8 million at December 31, 2013 and December 31, 2012, respectively. | |
D. Investment Securities | |
Investment securities which are held for indefinite periods of time, which the Corporation intends to use as part of its asset/liability strategy, or which may be sold in response to changes in interest rates, changes in prepayment risk, increases in capital requirements, or other similar factors, are classified as available for sale and are carried at fair value. Net unrealized gains and losses for such securities, net of tax, are required to be recognized as a separate component of shareholders’ equity and excluded from determination of net income. Gains or losses on disposition are based on the net proceeds and cost of the securities sold, adjusted for amortization of premiums and accretion of discounts, using the specific identification method. | |
The Corporation follows ASC 370-10-65-1 “Recognition and Presentation of Other-Than-Temporary Impairments” that provides guidance related to accounting for recognition of other-than-temporary impairment for debt securities and expands disclosure requirements for other-than-temporarily impaired debt and equity securities. Companies are required to record other-than-temporary impairment charges through earnings if they have the intent to sell, or will more likely than not be required to sell, an impaired debt security before a recovery of its amortized cost basis. In addition, companies are required to record other-than-temporary impairment charges through earnings for the amount of credit losses, regardless of the intent or requirement to sell. Credit loss is measured as the difference between the present value of an impaired debt security’s cash flows and its amortized cost basis. Non-credit-related write-downs to fair value must be recorded as decreases to accumulated other comprehensive income as long as the Corporation has no intent or it is more likely than not that the Corporation would not be required to sell an impaired security before a recovery of its amortized cost basis. The Corporation did not have any other-than-temporary impairment for 2013, 2012 or 2011. | |
Investment securities held in trading accounts consist solely of a deferred compensation trust account which is invested in marketable securities whose diversification is at the discretion of the deferred compensation plan participants. Investment securities held in trading accounts are reported at their fair value, with adjustments in fair value reported through income. | |
E. Loans Held for Sale | |
Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized temporary losses, if any, are recognized through a valuation allowance by charges to income. | |
F. Portfolio Loans and Leases | |
The Corporation originates construction, commercial and industrial, commercial mortgage, residential mortgage, home equity and consumer loans to customers primarily in southeastern Pennsylvania as well as small-ticket equipment leasing to customers nationwide. Although the Corporation has a diversified loan and lease portfolio, its debtors’ ability to honor their contracts is substantially dependent upon the real estate and general economic conditions of the region. | |
Loans and leases that the Corporation has the intention and ability to hold for the foreseeable future or until maturity or pay-off, generally are reported at their outstanding principal balance adjusted for charge-offs, the allowance for loan and lease losses and any deferred fees or costs on originated loans and leases. Interest income is accrued on the unpaid principal balance. | |
Loan and lease origination fees and loan and lease origination costs are deferred and recognized as an adjustment of the related yield using the interest method. | |
The accrual of interest on loans and leases is generally discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in the process of collection. Loans and leases are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued, but not collected for loans that are placed on nonaccrual status or charged-off, is charged against interest income. All interest accrued, but not collected, on leases that are placed on nonaccrual status is not charged against interest until the lease is charged-off at 120 days delinquent. The interest received on these nonaccrual loans and leases is applied to reduce the carrying value of loans and leases. Loans and leases are returned to accrual status when all the principal and interest amounts contractually due are brought current, remain current for at least six months and future payments are reasonably assured. Once a loan returns to accrual status, any interest payments collected during the nonaccrual period which had been applied to the principal balance are reversed and recognized as interest income over the remaining term of the loan. | |
In connection with the FBD transaction, the Corporation acquired $76.6 million of loans from FBD. These acquired loans were recorded at their fair value. The difference between the recorded fair value and the principal value is accreted to interest income over the contractual lives of the loans in accordance with ASC 310-20 (formerly SFAS 91). Certain acquired loans which were deemed to be credit impaired at acquisition are accounted for in accordance with ASC 310-30 (formerly SOP 03-3), as discussed below, in subsection H of this footnote. | |
G. Allowance for Loan and Lease Losses | |
The allowance for loan and lease losses (the “Allowance”) is established through a provision for loan and lease losses (the “Provision”) charged as an expense. The principal balances of loans and leases are charged against the Allowance when the Corporation believes that the principal is uncollectible. The Allowance is maintained at a level that the Corporation believes is sufficient to absorb estimated potential credit losses. | |
The Corporation’s determination of the adequacy of the Allowance is based on periodic evaluations of the loan and lease portfolio and other relevant factors. However, this evaluation is inherently subjective as it requires significant estimates by the Corporation. Consideration is given to a variety of factors in establishing these estimates including specific terms and conditions of loans and leases, underwriting standards, delinquency statistics, historical charge-off history by portfolio segment, industry concentration, overall exposure to a single customer, adequacy of collateral, the dependence on collateral, and results of internal loan review, including a borrower’s perceived financial and management strengths, the amounts and timing of the present value of future cash flows, and the access to additional funds. | |
As part of the process of allocating the Allowance to the different segments of the loan and lease portfolio, the Corporation considers certain credit quality indicators. For the commercial mortgage, construction and commercial and industrial loan segments, periodic reviews of the individual loans are performed by both in-house staff as well as external third-party loan review specialists. The result of these reviews is reflected in the risk grade assigned to each loan. In addition, the remaining segments of the loan and lease portfolio, which include residential mortgage, home equity lines and loans, consumer loans, and leases, are allocated portions of the Allowance based on their performance status. | |
The evaluation process also considers the impact of competition, current and expected economic conditions, national and international events, the regulatory and legislative environment and inherent risks in the loan and lease portfolio. All of these factors may be susceptible to significant change. To the extent actual outcomes differ from the Corporation’s estimates, an additional Provision may be required that might adversely affect the Corporation’s results of operations in future periods. In addition, various regulatory agencies, as an integral part of their examination processes, periodically review the adequacy of the Allowance. Such agencies may require the Corporation to record additions to the Allowance based on their judgment of information available to them at the time of their examination. | |
H. Impaired Loans and Leases | |
A loan or lease is considered impaired when, based on current information, it is probable that the Corporation will be unable to collect the contractually scheduled payments of principal or interest. When assessing impairment, the Corporation considers various factors, which include payment status, realizable value of collateral and the probability of collecting scheduled principal and interest payments when due. Loans and leases that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. | |
The Corporation determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. | |
Impairment is measured by either the present value of expected future cash flows discounted at the loan’s contractual effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. | |
In addition to originating loans, the Corporation occasionally acquires loans through mergers or loan purchase transactions. Some of these acquired loans may exhibit deteriorated credit quality that has occurred since origination and the Corporation may not expect to collect all contractual payments. Accounting for these purchased credit-impaired loans is done in accordance with ASC 310-30. The loans are recorded at fair value, reflecting the present value of the amounts expected to be collected. Income recognition on these loans is based on a reasonable expectation about the timing and amount of cash flows to be collected. Acquired loans deemed impaired and considered collateral dependent, with the timing of the sale of loan collateral indeterminate, remain on nonaccrual status and have no accretable yield. | |
I. Troubled Debt Restructurings (“TDR”s) | |
A TDR occurs when a creditor, for economic or legal reasons related to a borrower’s financial difficulties, modifies the original terms of a loan or lease or grants a concession to the borrower that it would not otherwise have granted. A concession may include an extension of repayment terms, a reduction in the interest rate or the forgiveness of principal and/or accrued interest. If the debtor is experiencing financial difficulty and the creditor has granted a concession, the Corporation will make the necessary disclosures related to the TDR. In certain cases, a modification or concession may be made in an effort to retain a customer who is not experiencing financial difficulty. This type of modification is not considered a TDR. | |
J. Other Real Estate Owned (“OREO”) | |
OREO consists of assets that the Corporation has acquired through foreclosure, by accepting a deed in lieu of foreclosure, or by taking possession of assets that were used as loan collateral. The Corporation reports OREO on the balance sheet within other assets, at the lower of cost or estimated fair value less cost to sell, adjusted periodically based on current appraisals. Costs relating to the development or improvement of assets, as well as the costs required to obtain legal title to the property, are capitalized, while costs related to holding the property are charged to expense as incurred. | |
K. Other Investments and Federal Home Loan Bank Stock | |
Other investments include Community Reinvestment Act (“CRA”) investments, and equity stocks without a readily determinable fair market value. The Corporation’s investments in equity stocks include those issued by the Federal Home Loan Bank of Pittsburgh (“FHLB”), the Federal Reserve Bank and Atlantic Central Bankers Bank. The Corporation is required to hold FHLB stock as a condition of its borrowing funds from the FHLB. As of December 31, 2013, the carrying value of the Corporation’s FHLB stock was $11.7 million. Ownership of FHLB stock is restricted and there is no market for these securities. For further information on the FHLB stock, see Note 10 – “Short-Term and Other Borrowings”. | |
L. Premises and Equipment | |
Premises and equipment are stated at cost, less accumulated depreciation. Depreciation and predetermined rent are recorded using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the expected lease term or the estimated useful lives, whichever is shorter. | |
M. Pension and Postretirement Benefit Plans | |
The Corporation has one qualified defined-benefit pension plan, two non-qualified defined-benefit supplemental executive retirement plans and a postretirement benefit plan as discussed in Note 15—“Pension and Postretirement Benefit Plans”. Net pension expense related to the defined-benefit consists of service cost, interest cost, return on plan assets, amortization of prior service cost, amortization of transition obligations and amortization of net actuarial gains and losses. The Corporation accrues pension costs as incurred. | |
N. Bank Owned Life Insurance (“BOLI”) | |
BOLI is recorded at its cash surrender value. Income from BOLI is tax-exempt and included as a component of other non-interest income. | |
O. Derivative Financial Instruments | |
The Corporation recognizes all derivative financial instruments on its balance sheet at fair value. Derivatives that are not hedges must be adjusted to fair value through income. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative are either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is recognized in earnings immediately. To determine fair value, the Corporation uses valuations obtained from a third party which utilizes a pricing model that incorporates assumptions about market conditions and risks that are current as of the reporting date. Management reviews, annually, the inputs utilized by its independent third-party valuation experts. | |
The Corporation may use interest-rate swap agreements to modify the interest rate characteristics from variable to fixed or fixed to variable in order to reduce the impact of interest rate changes on future net interest income. The Corporation accounts for its interest-rate swap contracts in cash flow hedging relationships by establishing and documenting the effectiveness of the instrument in offsetting the change in cash flows of assets or liabilities that are being hedged. To determine effectiveness, the Corporation performs an analysis to identify if changes in fair value or cash flow of the derivative correlate to the equivalent changes in the forecasted interest receipts related to a specified hedged item. Recorded amounts related to interest-rate swaps are included in other assets or liabilities. The change in fair value of the ineffective part of the instrument would need to be charged to the statement of operations, potentially causing material fluctuations in reported earnings in the period of the change relative to comparable periods. In a fair value hedge, the fair values of the interest rate swap agreements and changes in the fair values of the hedged items are recorded in the Corporation’s consolidated balance sheets with the corresponding gain or loss being recognized in current earnings. The difference between changes in the fair values of interest rate swap agreements and the hedged items represents hedge ineffectiveness and is recorded in net interest income in the statement of operations. The Corporation performs an assessment, both at the inception of the hedge and quarterly thereafter, to determine whether these derivatives are highly effective in offsetting changes in the value of the hedged items. | |
P. Accounting for Stock-Based Compensation | |
Stock-based compensation cost is measured at the grant date, based on the fair value of the award and is recognized as an expense over the vesting period. | |
All share-based payments, including grants of stock options, restricted stock awards and performance-based stock awards, are recognized as compensation expense in the statement of income at their fair value. The fair value of stock option grants is determined using the Black-Scholes pricing model which considers the expected life of the options, the volatility of stock price, risk-free interest rate and annual dividend yield. The fair value of the restricted stock awards is based on their market value on the grant date, while the fair value of the performance-based stock awards is based on their grant-date market value in addition to the likelihood of attaining certain pre-determined performance goals utilizing the Monte Carlo Simulation model. | |
Q. Earnings Per Common Share | |
Basic earnings per common share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted earnings per common share takes into account the potential dilution that would occur if in-the-money stock options were exercised and converted into common shares and restricted stock awards and performance-based stock awards were vested. Proceeds assumed to have been received on options exercises are assumed to be used to purchase shares of the Corporation’s common stock at the average market price during the period, as required by the treasury stock method of accounting. The effects of stock options are excluded from the computation of diluted earnings per share in periods in which the effect would be antidilutive. All weighted average shares, actual shares and per share information in the financial statements have been adjusted retroactively for the effect of stock dividends and splits. | |
R. Income Taxes | |
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |
The Corporation recognizes the benefit of a tax position only after determining that the Corporation would more-likely-than-not sustain the position following an examination. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon settlement with the relevant tax authority. The Corporation applies these criteria to tax positions for which the statute of limitations remains open. | |
S. Revenue Recognition | |
With the exception of nonaccrual loans and leases, the Corporation recognizes all sources of income on the accrual method. | |
Additional information relating to Wealth Management fee revenue recognition follows: | |
The Corporation earns Wealth Management fee revenue from a variety of sources including fees from trust administration and other related fiduciary services, custody, investment management and advisory services, employee benefit account and IRA administration, estate settlement, tax service fees, shareholder service fees and brokerage. These fees are generally based on asset values and fluctuate with the market. Some revenue is not directly tied to asset value but is based on a flat fee for services provided. For many of our revenue sources, amounts are not received in the same accounting period in which they are earned. However, each source of Wealth Management fees is recorded on the accrual method of accounting. | |
The most significant portion of the Corporation’s Wealth Management fees is derived from trust administration and other related services, custody, investment management and advisory services, and employee benefit account and IRA administration. These fees are generally billed in arrears, based on the market value of assets at the end of the previous billing period. A smaller number of customers are billed in a similar manner, but on a quarterly or annual basis and some revenues are not based on market values. | |
The balance of the Corporation’s Wealth Management fees includes estate settlement fees and tax service fees, which are recorded when the related service is performed and asset management and brokerage fees on non-depository investment products, which are received one month in arrears, based on settled transactions, but are accrued in the month the settlement occurs. | |
Included in other assets on the balance sheet is a receivable for Wealth Management fees that have been earned but not yet collected. | |
T. Mortgage Servicing | |
A portion of the residential mortgage loans originated by the Corporation is sold to a third party; however the Corporation often retains the servicing duties related to these loans. A fee, usually based on a percentage of the outstanding principal balance of the loan, is received in return for these services. Gains on the sale of these loans are based on the specific identification method. | |
An intangible asset, referred to as mortgage servicing rights (“MSR”s) is recognized when the loan servicing rights are retained upon sale of a loan. These MSRs amortize to non-interest expense in proportion to, and over the period of, the estimated future net servicing life of the underlying loans. | |
MSRs are evaluated quarterly for impairment based upon the fair value of the rights as compared to their amortized cost. Impairment is determined by stratifying the MSRs by predominant characteristics, such as interest rate and terms. Fair value is determined based upon discounted cash flows using market-based assumptions. Impairment is recognized on the income statement to the extent the fair value is less than the capitalized amount for the stratum. A valuation allowance is utilized to record temporary impairment in MSRs. Temporary impairment is defined as impairment that is not deemed permanent. Permanent impairment is recorded as a reduction of the MSR and is not reversed. | |
U. Statement of Cash Flows | |
The Corporation’s statement of cash flows details operating, investing and financing activities during the reported periods. | |
V. Goodwill and Intangible Assets | |
The Corporation accounts for goodwill and other intangible assets in accordance with ASC 350, “Intangibles— Goodwill and Other.” The goodwill and intangible assets as of December 31, 2013, other than MSRs in Note 1-T above, are related to the acquisitions of Lau Associates, PWMG and DTC, which are components of the Wealth Management segment, and First Keystone Financial, Inc. (“FKF”), and FBD, which are components of the Banking segment. The amount of goodwill initially recorded is based on the fair value of the acquired entity at the time of acquisition. Goodwill impairment tests are performed annually, or when events occur or circumstances change that would more likely than not reduce the fair value of the acquisition or investment. | |
The Corporation’s impairment testing methodology is consistent with the methodology prescribed in ASC 350. Other intangible assets include a core deposit intangible, which was acquired in the FKF merger and the FBD transaction, customer relationships, trade name and non-competition agreements acquired in connection with the acquisitions of DTC, PWMG and Lau Associates. The customer relationships, non-competition agreement and core deposit intangibles are amortized over the estimated useful lives of the assets. The trade name intangible has an indefinite life and is evaluated for impairment annually. | |
W. Reclassifications | |
Certain prior year amounts have been reclassified to conform to the current year’s presentation. | |
X. Recent Accounting Pronouncements | |
FASB ASU No. 2013-01—Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities | |
In December 2011, the FASB issued Accounting Standards Update or ASU No. 2011-11, “Disclosures About Offsetting Assets and Liabilities.” This project began as an attempt to converge the offsetting requirements under U.S. GAAP and International Financial Reporting Standards (“IFRS”). However, as the FASB and International Accounting Standards Board were not able to reach a converged solution with regards to offsetting requirements, they each developed convergent disclosure requirements to assist in reconciling differences in the offsetting requirements under U.S. GAAP and IFRS. The new disclosure requirements mandate that entities disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement similar to a master netting arrangement. ASU No. 2011-11 also requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The provisions of ASU No. 2013-01 limit the scope of the new balance sheet offsetting disclosures to the following financial instruments, to the extent they are offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the statement of financial position: (1) derivative financial instruments; (2) repurchase agreements and reverse repurchase agreements; and (3) securities borrowing and securities lending transactions. The Corporation adopted the provisions of ASU No. 2011-11 and ASU No. 2013-01 effective January 1, 2013. The provisions of ASU No. 2011-11 and ASU No. 2013-01 only impacted the disclosure requirements related to the offsetting of assets and liabilities and information about instruments and transactions eligible for offset in the statement of financial position, the adoption of this amendment did not have a material effect on the Corporation’s Consolidated Financial Statements. | |
FASB ASU No. 2013-02—Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income | |
In February 2013, the FASB issued an update (ASU 2013-02—Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income) which requires entities to disclose, for items reclassified out of accumulated other comprehensive income (“AOCI”) and into net income in their entirety, the effect of the reclassification on each affected net income line item and, for AOCI reclassification items that are not reclassified in their entirety into net income, a cross reference to other required U.S. GAAP disclosures. The guidance is effective for annual and interim reporting periods beginning after December 15, 2012; early adoption is allowed. The Corporation has adopted this ASU. For more information, see Note 16, below. | |
FASB ASU No. 2013-10—Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes | |
In July 2013, the FASB issued ASU 2013-10—Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes which permits the uses of this alternative benchmark interest rate, in addition to the U.S. government rate (UST) and London Interbank Offered Rate (LIBOR), as a U.S. benchmark interest rate for hedge accounting purposes under FASB ASC Topic 815, Derivatives and Hedging. The ASU is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The Corporation currently uses LIBOR as a benchmark for hedge accounting purposes. As such, Management does not expect ASU 2013-10 to have any impact on its financial condition and results of operations. | |
FASB ASU No. 2013-11—Presentation of an Unrecognized Tax Benefit When a Net Operation Loss Carryforward, a Similar Tax Loss, or a Tax Credit Exists | |
In July 2013, the FASB issued ASU 2013-11—Presentation of an Unrecognized Tax Benefit When a Net Operation Loss carryforward, a Similar Tax Loss, or a Tax Credit Exists which requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (“NOL”) carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) the entity intends to use the deferred tax asset for that purpose. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Management does not expect ASU 2013-11 to have any impact on its financial condition and results of operations. | |
FASB ASU 2014-04, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” | |
Issued in January 2014, ASU 2014-04 clarifies when an “in substance repossession or foreclosure” occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loans, such that all or a portion of the loan should be derecognized and the real estate property recognized. ASU 2014-04 states that a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amendments of ASU 2014-04 also require interim and annual disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure. The amendments of ASU 2014-04 are effective for interim and annual periods beginning after December 15, 2014, and may be applied using either a modified retrospective transition method or a prospective transition method as described in ASU 2014-04. The adoption of ASU 2014-04 will be change in presentation only for the newly required disclosures and is not expect to have a significant impact to the Corporation’s consolidated financial statements. |
Business_Combinations
Business Combinations | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Business Combinations | ' | ||||
Note 2—Business Combinations | |||||
First Bank of Delaware | |||||
The acquisition of certain loan and deposit accounts and a branch location from First Bank of Delaware (“FBD”) by the Corporation (the “FBD Transaction”) was completed on November 17, 2012. | |||||
First Bank of Delaware, established in June 1999, was a $250 million state-chartered commercial bank operating from one full-service branch location in Wilmington, Delaware. Subsequent to the transaction with the Corporation, FBD’s remaining assets were transferred to a liquidating trust and its charter was cancelled. The FBD Transaction enabled the Corporation to further expand its footprint in the State of Delaware by complementing its existing wealth management operations of Bryn Mawr Trust of Delaware and Lau Associates, both located in Greenville, Delaware. | |||||
The FBD Transaction was accounted for as a business combination, with assets acquired, liabilities assumed and consideration paid recorded at their estimated fair values as of the acquisition date. The excess of consideration paid over the fair value of net assets acquired was recorded as goodwill, which will not be amortizable for book purposes, however will be deductible for tax purposes. The Corporation allocated the total balance of goodwill to its Banking segment. The Corporation also recorded a core deposit intangible which will be amortized over a ten-year period using a declining-balance method. | |||||
In connection with the FBD Transaction, the consideration paid and the fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition are summarized in the following table: | |||||
(dollars in thousands) | |||||
Consideration paid: | |||||
Cash | $ | 10,559 | |||
Value of consideration | 10,559 | ||||
Assets acquired: | |||||
Cash and due from banks | 525 | ||||
Loans | 76,556 | ||||
Premises and equipment | 460 | ||||
Core deposit intangible | 320 | ||||
Other assets | 256 | ||||
Total assets | 78,117 | ||||
Liabilities assumed: | |||||
Nonmaturity deposits | 27,080 | ||||
Time deposits | 43,257 | ||||
Unfavorable lease | 140 | ||||
Other liabilities | 390 | ||||
Total liabilities | 70,867 | ||||
Net assets acquired | 7,250 | ||||
Goodwill resulting from the FBD Transaction | $ | 3,309 | |||
As of March 31, 2013, the Corporation had finalized its fair value estimates related to the FBD Transaction. No adjustments were made to the original estimates. | |||||
Davidson Trust Company | |||||
The acquisition of the Davidson Trust Company (“DTC”) by the Corporation was completed on May 15, 2012. In addition to cash paid at closing, three separate contingent payments, each of which was not to exceed $1.05 million, were payable on each of November 14, 2012, May 14, 2013 and November 14, 2013. These contingent payments were subject to certain post-closing contingencies relating to the assets under management. As of December 31, 2013, all contingent payments, which totaled $3.15 million had been made. | |||||
The structure of the Corporation’s existing Wealth Management segment allowed the Corporation to integrate the operations of DTC into its existing wealth operations and enabled it to take advantage of the various synergies that existed between the two companies. The acquisition of DTC initially increased the Corporation’s Wealth Management Division assets under management by $1.0 billion. | |||||
The acquisition of DTC was accounted for as a business combination, with assets acquired, liabilities assumed and consideration paid being recorded at their estimated fair values as of the acquisition date. The excess of consideration paid over the fair value of net assets acquired was recorded as goodwill. The Corporation allocated the total balance of goodwill to its Wealth Management segment. The Corporation also recorded an intangible asset for customer relationships, which is being amortized over a ten-year period using a straight-line method, an intangible asset for restrictive covenant agreements, which is being amortized over a five-year period using a straight-line method and an intangible asset for trade name which will not be amortized. | |||||
In connection with the DTC acquisition, the consideration paid and the fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition are summarized in the following table: | |||||
(dollars in thousands) | |||||
Consideration paid: | |||||
Cash | $ | 10,500 | |||
Assets acquired: | |||||
Cash operating accounts | 1,433 | ||||
Other assets | 201 | ||||
Intangible asset—customer relationships | 3,720 | ||||
Intangible asset—noncompetition agreements | 1,385 | ||||
Intangible asset—brand | 970 | ||||
Premises and equipment | 117 | ||||
Deferred tax asset | 839 | ||||
Total assets | 8,665 | ||||
Liabilities assumed: | |||||
Deferred tax liability | 2,125 | ||||
Miscellaneous liabilities | 885 | ||||
Total liabilities | 3,010 | ||||
Net assets acquired | 5,655 | ||||
Goodwill resulting from acquisition of DTC | $ | 4,845 | |||
For the three months ended June 30, 2013, the Corporation increased its estimated value for the deferred tax asset acquired in the DTC acquisition by $54 thousand. This resulted in a corresponding decrease of $54 thousand in goodwill recorded in the transaction. | |||||
As of June 30, 2013, the Corporation had finalized its fair value estimates related to the acquisition of DTC. |
Goodwill_Other_Intangible_Asse
Goodwill & Other Intangible Assets | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Goodwill & Other Intangible Assets | ' | ||||||||||||||||||
Note 3—Goodwill & Other Intangible Assets | |||||||||||||||||||
The Corporation completed an annual impairment test for goodwill and other intangibles during the fourth quarter of 2013. There was no goodwill impairment and no material impairment to identifiable intangibles recorded during 2012 or 2013. There can be no assurance that future impairment assessments or tests will not result in a charge to earnings. | |||||||||||||||||||
The Corporation’s goodwill and intangible assets related to the acquisitions of Lau Associates in July, 2008, FKF in July, 2010, PWMG in May, 2011, DTC in May, 2012 and FBD in November, 2012 for the years ending December 31, 2013 and 2012 are as follows: | |||||||||||||||||||
(dollars in thousands) | Beginning | Additions/ | Amortization | Ending | Amortization | ||||||||||||||
Balance | Adjustments | Balance | Period | ||||||||||||||||
12/31/12 | 12/31/13 | ||||||||||||||||||
Goodwill—Wealth segment | $ | 20,466 | $ | (54 | ) | $ | — | $ | 20,412 | Indefinite | |||||||||
Goodwill—Banking segment | 12,431 | — | — | 12,431 | Indefinite | ||||||||||||||
Total | $ | 32,897 | $ | (54 | ) | $ | — | $ | 32,843 | ||||||||||
Core deposit intangible | $ | 1,654 | $ | — | $ | (312 | ) | $ | 1,342 | 10 Years | |||||||||
Customer relationships | 14,890 | — | (1,295 | ) | 13,595 | 10 to 20 Years | |||||||||||||
Non-compete agreements | 4,244 | — | (1,026 | ) | 3,218 | 5 to 5 1⁄2 Years | |||||||||||||
Trade name | 1,210 | — | — | 1,210 | Indefinite | ||||||||||||||
Total | $ | 21,998 | $ | — | $ | (2,633 | ) | $ | 19,365 | ||||||||||
Grand total | $ | 54,895 | $ | (54 | ) | $ | (2,633 | ) | $ | 52,208 | |||||||||
(dollars in thousands) | Beginning | Additions/ | Amortization | Ending | Amortization | ||||||||||||||
Balance | Adjustments | Balance | Period | ||||||||||||||||
12/31/11 | 12/31/12 | ||||||||||||||||||
Goodwill—Wealth segment | $ | 15,567 | $ | 4,899 | $ | — | $ | 20,466 | Indefinite | ||||||||||
Goodwill—Banking segment | 9,122 | 3,309 | — | 12,431 | Indefinite | ||||||||||||||
Total | $ | 24,689 | $ | 8,208 | $ | — | $ | 32,897 | |||||||||||
Core deposit intangible | $ | 1,628 | $ | 320 | $ | (294 | ) | $ | 1,654 | 10 Years | |||||||||
Customer relationships | 12,376 | 3,720 | (1,206 | ) | 14,890 | 10 to 20 Years | |||||||||||||
Non-compete agreements | 3,770 | 1,385 | (911 | ) | 4,244 | 5 to 5 1⁄2 Years | |||||||||||||
Trade name | 240 | 970 | — | 1,210 | Indefinite | ||||||||||||||
Total | $ | 18,014 | $ | 6,395 | $ | (2,411 | ) | $ | 21,998 | ||||||||||
Grand total | $ | 42,703 | $ | 14,603 | $ | (2,411 | ) | $ | 54,895 | ||||||||||
Investment_Securities
Investment Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||||||||
Note 4—Investment Securities | |||||||||||||||||||||||||
The amortized cost and estimated fair value of investments, which were classified as available for sale, are as follows: | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
(dollars in thousands) | Amortized | Gross | Gross | Estimated | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
U.S. Treasury securities | $ | 102 | $ | — | $ | (3 | ) | $ | 99 | ||||||||||||||||
Obligations of the U.S. government and agencies | 71,097 | 149 | (1,678 | ) | 69,568 | ||||||||||||||||||||
Obligations of state and political subdivisions | 37,140 | 141 | (304 | ) | 36,977 | ||||||||||||||||||||
Mortgage-backed securities | 119,044 | 1,392 | (1,073 | ) | 119,363 | ||||||||||||||||||||
Collateralized mortgage obligations | 44,463 | 273 | (493 | ) | 44,243 | ||||||||||||||||||||
Other investments | 15,281 | 301 | (24 | ) | 15,558 | ||||||||||||||||||||
Total | $ | 287,127 | $ | 2,256 | $ | (3,575 | ) | $ | 285,808 | ||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
(dollars in thousands) | Amortized | Gross | Gross | Estimated | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Obligations of the U.S. government and agencies | $ | 73,183 | $ | 796 | $ | (107 | ) | $ | 73,872 | ||||||||||||||||
Obligations of state and political subdivisions | 30,244 | 199 | (59 | ) | 30,384 | ||||||||||||||||||||
Mortgage-backed securities | 128,537 | 3,302 | (13 | ) | 131,826 | ||||||||||||||||||||
Collateralized mortgage obligations | 62,116 | 622 | (35 | ) | 62,703 | ||||||||||||||||||||
Other investments | 17,667 | 162 | — | 17,829 | |||||||||||||||||||||
Total | $ | 311,747 | $ | 5,081 | $ | (214 | ) | $ | 316,614 | ||||||||||||||||
The following table shows the amount of securities that were in an unrealized loss position at December 31, 2013: | |||||||||||||||||||||||||
Less than 12 | 12 Months | Total | |||||||||||||||||||||||
Months | or Longer | ||||||||||||||||||||||||
(dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
U.S. Treasury securities | $ | 99 | $ | (3 | ) | $ | — | $ | — | $ | 99 | $ | (3 | ) | |||||||||||
Obligations of the U.S. government and agencies | 41,201 | (1,391 | ) | 5,774 | (287 | ) | 46,975 | (1,678 | ) | ||||||||||||||||
Obligations of state and political subdivisions | 13,020 | (233 | ) | 4,543 | (71 | ) | 17,563 | (304 | ) | ||||||||||||||||
Mortgage-backed securities | 55,672 | (972 | ) | 2,302 | (101 | ) | 57,974 | (1,073 | ) | ||||||||||||||||
Collateralized mortgage obligations | 26,395 | (493 | ) | — | — | 26,395 | (493 | ) | |||||||||||||||||
Other investments | 1,494 | (24 | ) | — | — | 1,494 | (24 | ) | |||||||||||||||||
Total | $ | 137,881 | $ | (3,116 | ) | $ | 12,619 | $ | (459 | ) | $ | 150,500 | $ | (3,575 | ) | ||||||||||
The following table shows the amount of securities that were in an unrealized loss position at December 31, 2012: | |||||||||||||||||||||||||
Less than 12 | 12 Months | Total | |||||||||||||||||||||||
Months | or Longer | ||||||||||||||||||||||||
(dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Obligations of the U.S. government and agencies | $ | 20,032 | $ | (107 | ) | $ | — | $ | — | $ | 20,032 | $ | (107 | ) | |||||||||||
Obligations of state and political subdivisions | 10,752 | (59 | ) | — | — | 10,752 | (59 | ) | |||||||||||||||||
Mortgage-backed securities | 12,602 | (13 | ) | — | — | 12,602 | (13 | ) | |||||||||||||||||
Collateralized mortgage obligations | 10,040 | (35 | ) | — | — | 10,040 | (35 | ) | |||||||||||||||||
Total | $ | 53,426 | $ | (214 | ) | $ | — | $ | — | $ | 53,426 | $ | (214 | ) | |||||||||||
Management evaluates the Corporation’s investment securities that are in an unrealized loss position in order to determine if the decline in market value is other than temporary. The investment portfolio includes debt securities issued by U.S. government agencies, U.S. government-sponsored agencies, state and local municipalities and other issuers. All fixed income investment securities in the Corporation’s investment portfolio are rated as investment-grade or higher. Factors considered in the evaluation include the current economic climate, the length of time and the extent to which the fair value has been below cost, interest rates and the bond rating of each security. The unrealized losses presented in the tables above are temporary in nature and are primarily related to market interest rates rather than the underlying credit quality of the issuers. Management does not believe that these unrealized losses are other-than-temporary. The Corporation does not have the intent to sell these securities prior to their maturity or the recovery of their cost bases and believes that it is more likely, than not, that it will not have to sell these securities prior to their maturity or the recovery of their cost bases. | |||||||||||||||||||||||||
At December 31, 2013, securities having a fair value of $94.9 million were specifically pledged as collateral for public funds, trust deposits, the FRB discount window program, FHLB borrowings and other purposes. The FHLB has a blanket lien on non-pledged, mortgage-related loans and securities as part of the Corporation’s borrowing agreement with the FHLB. | |||||||||||||||||||||||||
The amortized cost and estimated fair value of investment and mortgage-related securities as of December 31, 2013 and 2012, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
(dollars in thousands) | Amortized | Estimated | |||||||||||||||||||||||
Cost | Market | ||||||||||||||||||||||||
Value | |||||||||||||||||||||||||
Investment securities*: | |||||||||||||||||||||||||
Due in one year or less | $ | 7,859 | $ | 7,869 | |||||||||||||||||||||
Due after one year through five years | 49,790 | 49,721 | |||||||||||||||||||||||
Due after five years through ten years | 51,793 | 50,117 | |||||||||||||||||||||||
Due after ten years | 797 | 824 | |||||||||||||||||||||||
Subtotal | 110,239 | 108,531 | |||||||||||||||||||||||
Mortgage-related securities | 163,507 | 163,606 | |||||||||||||||||||||||
Total | $ | 273,746 | $ | 272,137 | |||||||||||||||||||||
* | Included in the investment portfolio, but not in the table above, are mutual funds with an estimated market value, as of December 31, 2013, of $13.7 million, which have no stated maturity. | ||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
(dollars in thousands) | Amortized | Estimated | |||||||||||||||||||||||
Cost | Market | ||||||||||||||||||||||||
Value | |||||||||||||||||||||||||
Investment securities*: | |||||||||||||||||||||||||
Due in one year or less | $ | 10,571 | $ | 10,590 | |||||||||||||||||||||
Due after one year through five years | 38,056 | 38,171 | |||||||||||||||||||||||
Due after five years through ten years | 40,635 | 40,714 | |||||||||||||||||||||||
Due after ten years | 18,415 | 19,044 | |||||||||||||||||||||||
Subtotal | 107,677 | 108,519 | |||||||||||||||||||||||
Mortgage-related securities | 190,653 | 194,529 | |||||||||||||||||||||||
Total | $ | 298,330 | $ | 303,048 | |||||||||||||||||||||
* | Included in the investment portfolio, but not in the table above, are mutual funds with an estimated market value, as of December 31, 2012, of $13.4 million, which have no stated maturity. | ||||||||||||||||||||||||
Proceeds from the sale of available for sale investment securities totaled $14.9 million, $40.6 million and $89.7 million for the twelve months ended December 31, 2013, 2012 and 2011, respectively. Loss on sale of available for sale investment securities for the twelve months ended December 31, 2013 totaled $8 thousand. Gain on sale of available for sale investment securities for the twelve months ended December 31, 2012 and 2011 totaled $1.4 million and $1.8 million, respectively. | |||||||||||||||||||||||||
As of December 31, 2013 and December 31, 2012, the Corporation’s investment securities held in trading accounts were comprised of a deferred compensation trust which is invested in marketable securities whose diversification is at the discretion of the deferred compensation plan participants. |
Loans_and_Leases
Loans and Leases | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Loans and Leases | ' | ||||||||||||||||||||||||||||||||||||||||
Note 5—Loans and Leases | |||||||||||||||||||||||||||||||||||||||||
A. Loans and leases outstanding are detailed by portfolio segment as follows: | |||||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Loans held for sale | $ | 1,350 | $ | 3,412 | |||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | 625,341 | $ | 546,358 | |||||||||||||||||||||||||||||||||||||
Home equity lines and loans | 189,571 | 194,861 | |||||||||||||||||||||||||||||||||||||||
Residential mortgage | 300,243 | 288,212 | |||||||||||||||||||||||||||||||||||||||
Construction | 46,369 | 26,908 | |||||||||||||||||||||||||||||||||||||||
Total real estate loans | 1,161,524 | 1,056,339 | |||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 328,459 | 291,620 | |||||||||||||||||||||||||||||||||||||||
Consumer | 16,926 | 17,666 | |||||||||||||||||||||||||||||||||||||||
Leases | 40,276 | 32,831 | |||||||||||||||||||||||||||||||||||||||
Total portfolio loans and leases | 1,547,185 | 1,398,456 | |||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 1,548,535 | $ | 1,401,868 | |||||||||||||||||||||||||||||||||||||
Loans with predetermined rates | $ | 850,168 | $ | 723,417 | |||||||||||||||||||||||||||||||||||||
Loans with adjustable or floating rates | 698,367 | 678,451 | |||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 1,548,535 | $ | 1,401,868 | |||||||||||||||||||||||||||||||||||||
Net deferred loan origination costs included in the above loan table | $ | 222 | $ | 402 | |||||||||||||||||||||||||||||||||||||
B. Leases outstanding at December 31 are detailed by components of the net investment as follows: | |||||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Minimum lease payments receivable | $ | 45,866 | $ | 37,349 | |||||||||||||||||||||||||||||||||||||
Unearned lease income | (7,534 | ) | (6,099 | ) | |||||||||||||||||||||||||||||||||||||
Initial direct costs and deferred fees | 1,944 | 1,581 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 40,276 | $ | 32,831 | |||||||||||||||||||||||||||||||||||||
C. Non-Performing Loans and Leases* | |||||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Nonaccrual loans and leases: | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | 478 | $ | 631 | |||||||||||||||||||||||||||||||||||||
Home equity lines and loans | 1,262 | 2,792 | |||||||||||||||||||||||||||||||||||||||
Residential mortgage | 4,377 | 3,748 | |||||||||||||||||||||||||||||||||||||||
Construction | 830 | 3,314 | |||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 3,539 | 3,506 | |||||||||||||||||||||||||||||||||||||||
Consumer | 20 | 7 | |||||||||||||||||||||||||||||||||||||||
Leases | 24 | 42 | |||||||||||||||||||||||||||||||||||||||
Total | 10,530 | 14,040 | |||||||||||||||||||||||||||||||||||||||
Loans and leases 90 days or more past due and still accruing: | |||||||||||||||||||||||||||||||||||||||||
Construction | — | 728 | |||||||||||||||||||||||||||||||||||||||
Total non-performing loans and leases | $ | 10,530 | $ | 14,768 | |||||||||||||||||||||||||||||||||||||
* | Purchased credit-impaired loans, which have been recorded at their fair values at the acquisition date and which are performing as expected are excluded from this table with the exception of $238 thousand and $90 thousand as of December 31, 2013 and 2012, respectively, of purchased credit-impaired loans which became non-performing subsequent to the merger. | ||||||||||||||||||||||||||||||||||||||||
D. Purchased Credit-Impaired Loans | |||||||||||||||||||||||||||||||||||||||||
The outstanding principal balance and related carrying amount of credit-impaired loans, for which the Corporation applies ASC 310-30 to account for the interest earned, as of the dates indicated, is as follows: | |||||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Outstanding principal balance | $ | 14,293 | $ | 19,527 | |||||||||||||||||||||||||||||||||||||
Carrying amount(1) | $ | 9,880 | $ | 12,128 | |||||||||||||||||||||||||||||||||||||
-1 | Includes $293 thousand and $319 thousand of purchased credit-impaired loans as of December 31, 2013 and 2012, respectively, for which the Corporation could not estimate the timing or amount of expected cash flows to be collected at the acquisition date, and for which no accretable yield is recognized. Additionally, the table above includes $238 thousand and $90 thousand as of December 31, 2013 and 2012, respectively, of purchased credit-impaired loans that subsequently became non-performing, which are disclosed in Note 5C, above, and which also have no accretable yield. | ||||||||||||||||||||||||||||||||||||||||
The following table presents changes in the accretable discount on purchased credit-impaired loans, for which the Corporation applies ASC 310-30, for the twelve month periods ended December 31, 2012 and 2013: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Accretable | ||||||||||||||||||||||||||||||||||||||||
Discount | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 9,537 | |||||||||||||||||||||||||||||||||||||||
Accretion | (1,458 | ) | |||||||||||||||||||||||||||||||||||||||
Reclassification from nonaccretable difference | 1,299 | ||||||||||||||||||||||||||||||||||||||||
Additions/adjustments | 18 | ||||||||||||||||||||||||||||||||||||||||
Disposals | (1,371 | ) | |||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | 8,025 | ||||||||||||||||||||||||||||||||||||||||
Accretion | (1,893 | ) | |||||||||||||||||||||||||||||||||||||||
Reclassification from nonaccretable difference | 1,198 | ||||||||||||||||||||||||||||||||||||||||
Additions/adjustments | (257 | ) | |||||||||||||||||||||||||||||||||||||||
Disposals | (939 | ) | |||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2013 | $ | 6,134 | |||||||||||||||||||||||||||||||||||||||
E. Age Analysis of Past Due Loans and Leases | |||||||||||||||||||||||||||||||||||||||||
The following tables present an aging of the Corporation’s loan and lease portfolio as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||||||
Accruing Loans and Leases | Nonaccrual | Total | |||||||||||||||||||||||||||||||||||||||
30 – 59 | 60 – 89 | Over 89 | Total Past | Current | Total | Loans and | Loans and | ||||||||||||||||||||||||||||||||||
Days | Days | Days | Due | Accruing | Leases | Leases | |||||||||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Loans and | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Leases | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | 241 | $ | — | $ | — | $ | 241 | $ | 624,622 | $ | 624,863 | $ | 478 | $ | 625,341 | |||||||||||||||||||||||||
Home equity lines and loans | 209 | — | — | 209 | 188,100 | 188,309 | 1,262 | 189,571 | |||||||||||||||||||||||||||||||||
Residential mortgage | 773 | 35 | — | 808 | 295,058 | 295,866 | 4,377 | 300,243 | |||||||||||||||||||||||||||||||||
Construction | — | — | — | — | 45,539 | 45,539 | 830 | 46,369 | |||||||||||||||||||||||||||||||||
Commercial and industrial | 334 | — | — | 334 | 324,586 | 324,920 | 3,539 | 328,459 | |||||||||||||||||||||||||||||||||
Consumer | 2 | 4 | — | 6 | 16,900 | 16,906 | 20 | 16,926 | |||||||||||||||||||||||||||||||||
Leases | 60 | 60 | — | 120 | 40,132 | 40,252 | 24 | 40,276 | |||||||||||||||||||||||||||||||||
$ | 1,619 | $ | 99 | $ | — | $ | 1,718 | $ | 1,534,937 | $ | 1,536,655 | $ | 10,530 | $ | 1,547,185 | ||||||||||||||||||||||||||
Accruing Loans and Leases | Nonaccrual | Total | |||||||||||||||||||||||||||||||||||||||
Loans and | Loans | ||||||||||||||||||||||||||||||||||||||||
30 – 59 | 60 – 89 | Over 89 | Total Past | Current | Total | Leases | and | ||||||||||||||||||||||||||||||||||
Days | Days | Days | Due | Accruing | Leases | ||||||||||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Loans and | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Leases | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | 704 | $ | 130 | $ | — | $ | 834 | $ | 544,893 | $ | 545,727 | $ | 631 | $ | 546,358 | |||||||||||||||||||||||||
Home equity lines and loans | 107 | 84 | — | 191 | 191,878 | 192,069 | 2,792 | 194,861 | |||||||||||||||||||||||||||||||||
Residential mortgage | 399 | 141 | — | 540 | 283,924 | 284,464 | 3,748 | 288,212 | |||||||||||||||||||||||||||||||||
Construction | — | — | 728 | 728 | 22,866 | 23,594 | 3,314 | 26,908 | |||||||||||||||||||||||||||||||||
Commercial and industrial | 376 | 50 | — | 426 | 287,688 | 288,114 | 3,506 | 291,620 | |||||||||||||||||||||||||||||||||
Consumer | 8 | 7 | — | 15 | 17,644 | 17,659 | 7 | 17,666 | |||||||||||||||||||||||||||||||||
Leases | 33 | 13 | — | 46 | 32,743 | 32,789 | 42 | 32,831 | |||||||||||||||||||||||||||||||||
$ | 1,627 | $ | 425 | $ | 728 | $ | 2,780 | $ | 1,381,636 | $ | 1,384,416 | $ | 14,040 | $ | 1,398,456 | ||||||||||||||||||||||||||
F. Allowance for Loan and Lease Losses (the “Allowance”) | |||||||||||||||||||||||||||||||||||||||||
The following table details the roll-forward of the Corporation’s allowance for loan and lease losses, by portfolio segment, for the twelve months ended December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Home | Residential | Construction | Commercial | Consumer | Leases | Unallocated | Total | ||||||||||||||||||||||||||||||||
Mortgage | Equity | Mortgage | and | ||||||||||||||||||||||||||||||||||||||
Lines and | Industrial | ||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 3,907 | $ | 1,857 | $ | 2,024 | $ | 1,019 | $ | 4,637 | $ | 189 | $ | 493 | $ | 299 | $ | 14,425 | |||||||||||||||||||||||
Charge-offs | (71 | ) | (513 | ) | (307 | ) | (737 | ) | (781 | ) | (194 | ) | (376 | ) | — | (2,979 | ) | ||||||||||||||||||||||||
Recoveries | 20 | 67 | 18 | 24 | 65 | 10 | 290 | — | 494 | ||||||||||||||||||||||||||||||||
Provision for loan and lease losses | (59 | ) | 793 | 711 | 539 | 1,090 | 254 | 197 | 50 | 3,575 | |||||||||||||||||||||||||||||||
Balance, December 31, 2013 | $ | 3,797 | $ | 2,204 | $ | 2,446 | $ | 845 | $ | 5,011 | $ | 259 | $ | 604 | $ | 349 | $ | 15,515 | |||||||||||||||||||||||
The following table details the roll-forward of the Corporation’s allowance for loan and lease losses, by portfolio segment, for the twelve months ended December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Home | Residential | Construction | Commercial | Consumer | Leases | Unallocated | Total | ||||||||||||||||||||||||||||||||
Mortgage | Equity | Mortgage | and | ||||||||||||||||||||||||||||||||||||||
Lines and | Industrial | ||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 3,165 | $ | 1,707 | $ | 1,592 | $ | 1,384 | $ | 3,816 | $ | 119 | $ | 532 | $ | 438 | $ | 12,753 | |||||||||||||||||||||||
Charge-offs | (234 | ) | (375 | ) | (209 | ) | (1,131 | ) | (458 | ) | (96 | ) | (364 | ) | — | (2,867 | ) | ||||||||||||||||||||||||
Recoveries | 4 | — | 75 | 15 | 143 | 7 | 292 | — | 536 | ||||||||||||||||||||||||||||||||
Provision for loan and lease losses | 972 | 525 | 566 | 751 | 1,136 | 159 | 33 | (139 | ) | 4,003 | |||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 3,907 | $ | 1,857 | $ | 2,024 | $ | 1,019 | $ | 4,637 | $ | 189 | $ | 493 | $ | 299 | $ | 14,425 | |||||||||||||||||||||||
The following table details the roll-forward of the Corporation’s allowance for loan and lease losses, by portfolio segment, for the twelve months ended December 31, 2011: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Home | Residential | Construction | Commercial | Consumer | Leases | Unallocated | Total | ||||||||||||||||||||||||||||||||
Mortgage | Equity | Mortgage | and | ||||||||||||||||||||||||||||||||||||||
Lines and | Industrial | ||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2010 | $ | 2,534 | $ | 1,563 | $ | 843 | $ | 633 | $ | 3,565 | $ | 115 | $ | 766 | $ | 256 | $ | 10,275 | |||||||||||||||||||||||
Charge-offs | (827 | ) | (514 | ) | (391 | ) | (1,174 | ) | (633 | ) | (92 | ) | (1,017 | ) | — | (4,648 | ) | ||||||||||||||||||||||||
Recoveries | — | 190 | — | — | 307 | 11 | 530 | — | 1,038 | ||||||||||||||||||||||||||||||||
Provision for loan and lease losses | 1,458 | 468 | 1,140 | 1,925 | 577 | 85 | 253 | 182 | 6,088 | ||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 3,165 | $ | 1,707 | $ | 1,592 | $ | 1,384 | $ | 3,816 | $ | 119 | $ | 532 | $ | 438 | $ | 12,753 | |||||||||||||||||||||||
The following table details the allocation of the allowance for loan and lease losses by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Home | Residential | Construction | Commercial | Consumer | Leases | Unallocated | Total | ||||||||||||||||||||||||||||||||
Mortgage | Equity | Mortgage | and | ||||||||||||||||||||||||||||||||||||||
Lines | Industrial | ||||||||||||||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance on loans and leases: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 121 | $ | 814 | $ | — | $ | 532 | $ | 52 | $ | — | $ | — | $ | 1,519 | |||||||||||||||||||||||
Collectively evaluated for impairment | 3,797 | 2,083 | 1,632 | 845 | 4,479 | 207 | 604 | 349 | 13,996 | ||||||||||||||||||||||||||||||||
Purchased credit-impaired* | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 3,797 | $ | 2,204 | $ | 2,446 | $ | 845 | $ | 5,011 | $ | 259 | $ | 604 | $ | 349 | $ | 15,515 | |||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Allowance on loans and leases: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 217 | $ | 667 | $ | 543 | $ | 919 | $ | 8 | $ | — | $ | — | $ | 2,354 | |||||||||||||||||||||||
Collectively evaluated for impairment | 3,894 | 1,640 | 1,357 | 451 | 3,718 | 181 | 493 | 299 | 12,033 | ||||||||||||||||||||||||||||||||
Purchased credit-impaired* | 13 | — | — | 25 | — | — | — | — | 38 | ||||||||||||||||||||||||||||||||
Total | $ | 3,907 | $ | 1,857 | $ | 2,024 | $ | 1,019 | $ | 4,637 | $ | 189 | $ | 493 | $ | 299 | $ | 14,425 | |||||||||||||||||||||||
The following table details the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Home | Residential | Construction | Commercial | Consumer | Leases | Total | |||||||||||||||||||||||||||||||||
Mortgage | Equity Lines | Mortgage | and Industrial | ||||||||||||||||||||||||||||||||||||||
and Loans | |||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Balance of loans and leases: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 236 | $ | 1,428 | $ | 9,860 | $ | 1,172 | $ | 4,758 | $ | 52 | $ | — | $ | 17,506 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 616,077 | 188,128 | 290,345 | 44,715 | 323,384 | 16,874 | 40,276 | 1,519,799 | |||||||||||||||||||||||||||||||||
Purchased credit-impaired* | 9,028 | 15 | 38 | 482 | 317 | — | — | 9,880 | |||||||||||||||||||||||||||||||||
Total | $ | 625,341 | $ | 189,571 | $ | 300,243 | $ | 46,369 | $ | 328,459 | $ | 16,926 | $ | 40,276 | $ | 1,547,185 | |||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Balance of loans and leases: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 541 | $ | 3,403 | $ | 9,211 | $ | 4,631 | $ | 3,997 | $ | 7 | $ | — | $ | 21,790 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 535,506 | 191,439 | 278,951 | 20,785 | 287,367 | 17,659 | 32,831 | 1,364,538 | |||||||||||||||||||||||||||||||||
Purchased credit-impaired* | 10,311 | 19 | 50 | 1,492 | 256 | — | — | 12,128 | |||||||||||||||||||||||||||||||||
Total | $ | 546,358 | $ | 194,861 | $ | 288,212 | $ | 26,908 | $ | 291,620 | $ | 17,666 | $ | 32,831 | $ | 1,398,456 | |||||||||||||||||||||||||
* | Purchased credit-impaired loans are evaluated for impairment on an individual basis | ||||||||||||||||||||||||||||||||||||||||
As part of the process of allocating the allowance to the different segments of the loan and lease portfolio, Management considers certain credit quality indicators. For the commercial mortgage, construction and commercial and industrial loan segments, periodic reviews, at least quarterly, of the individual loans are performed by both in-house staff as well as external loan reviewers. The result of these reviews is reflected in the risk grade assigned to each loan. These internally assigned grades are as follows: | |||||||||||||||||||||||||||||||||||||||||
• | Pass—Loans considered satisfactory with no indications of deterioration. | ||||||||||||||||||||||||||||||||||||||||
• | Special mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. | ||||||||||||||||||||||||||||||||||||||||
• | Substandard—Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | ||||||||||||||||||||||||||||||||||||||||
• | Doubtful—Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | ||||||||||||||||||||||||||||||||||||||||
In addition, the remaining segments of the loan and lease portfolio, which include residential mortgage, home equity lines and loans, consumer, and leases, are allocated portions of the allowance based on their performance status. | |||||||||||||||||||||||||||||||||||||||||
The following tables detail the carrying value of loans and leases by portfolio segment based on the credit quality indicators used to allocate the allowance for loan and lease losses as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||||||
Credit Risk Profile by Internally Assigned Grade | |||||||||||||||||||||||||||||||||||||||||
Commercial | Construction | Commercial and | Total | ||||||||||||||||||||||||||||||||||||||
Mortgage | Industrial | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | 620,227 | $ | 538,470 | $ | 43,812 | $ | 16,504 | $ | 320,211 | $ | 278,167 | $ | 984,250 | $ | 833,141 | |||||||||||||||||||||||||
Special Mention | 2,793 | 2,215 | — | 1,317 | 387 | 6,256 | 3,180 | 9,788 | |||||||||||||||||||||||||||||||||
Substandard | 2,321 | 5,673 | 2,557 | 9,087 | 7,861 | 7,197 | 12,739 | 21,957 | |||||||||||||||||||||||||||||||||
Total | $ | 625,341 | $ | 546,358 | $ | 46,369 | $ | 26,908 | $ | 328,459 | $ | 291,620 | $ | 1,000,169 | $ | 864,886 | |||||||||||||||||||||||||
Credit Risk Profile Based on Payment Activity | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Residential | Home Equity | Consumer | Leases | Total | ||||||||||||||||||||||||||||||||||||
Mortgage | Lines and Loans | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||||||||||
Performing | $ | 295,866 | $ | 284,464 | $ | 188,309 | $ | 192,069 | $ | 16,906 | $ | 17,659 | $ | 40,252 | $ | 32,789 | $ | 541,333 | $ | 526,981 | |||||||||||||||||||||
Non-performing | 4,377 | 3,748 | 1,262 | 2,792 | 20 | 7 | 24 | 42 | 5,683 | 6,589 | |||||||||||||||||||||||||||||||
Total | $ | 300,243 | $ | 288,212 | $ | 189,571 | $ | 194,861 | $ | 16,926 | $ | 17,666 | $ | 40,276 | $ | 32,831 | $ | 547,016 | $ | 533,570 | |||||||||||||||||||||
G. Troubled Debt Restructurings (“TDRs”): | |||||||||||||||||||||||||||||||||||||||||
The restructuring of a loan is considered a “troubled debt restructuring” if both of the following conditions are met: (i) the borrower is experiencing financial difficulties, and (ii) the creditor has granted a concession. The most common concessions granted include one or more modifications to the terms of the debt, such as (a) a reduction in the interest rate for the remaining life of the debt, (b) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, (c) a temporary period of interest-only payments, (d) a reduction in the contractual payment amount for either a short period or remaining term of the loan, or (e) for leases, a reduced lease payment. A less common concession granted is the forgiveness of a portion of the principal. | |||||||||||||||||||||||||||||||||||||||||
The determination of whether a borrower is experiencing financial difficulties takes into account not only the current financial condition of the borrower, but also the potential financial condition of the borrower, if a concession were not granted. The determination of whether a concession has been granted is subjective in nature. For example, simply extending the term of a loan at its original interest rate or even at a higher interest rate could be interpreted as a concession unless the borrower could readily obtain similar credit terms from a different lender. | |||||||||||||||||||||||||||||||||||||||||
The following table presents the balance of TDRs as of the indicated dates: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||
TDRs included in nonperforming loans and leases | $ | 1,699 | $ | 3,106 | |||||||||||||||||||||||||||||||||||||
TDRs in compliance with modified terms | 7,277 | 8,008 | |||||||||||||||||||||||||||||||||||||||
Total TDRs | $ | 8,976 | $ | 11,114 | |||||||||||||||||||||||||||||||||||||
The following table presents information regarding loan and lease modifications granted during the twelve months ended December 31, 2013 that were categorized as TDRs: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Number of Contracts | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||||||||
Outstanding | Outstanding | ||||||||||||||||||||||||||||||||||||||||
Recorded Investment | Recorded Investment | ||||||||||||||||||||||||||||||||||||||||
Residential | 2 | $ | 674 | $ | 674 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 2 | 930 | 930 | ||||||||||||||||||||||||||||||||||||||
Home equity lines and loans | 2 | 40 | 40 | ||||||||||||||||||||||||||||||||||||||
Consumer | 1 | 33 | 33 | ||||||||||||||||||||||||||||||||||||||
Leases | 3 | 33 | 33 | ||||||||||||||||||||||||||||||||||||||
Total | 10 | $ | 1,710 | $ | 1,710 | ||||||||||||||||||||||||||||||||||||
The following table presents information regarding the types of loan and lease modifications made for the twelve months ended December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
Number of Contracts | |||||||||||||||||||||||||||||||||||||||||
Interest | Loan Term | Interest Rate | Interest-Only | Contractual | Forgiveness | ||||||||||||||||||||||||||||||||||||
Rate | Extension | Change and | Period | Payment | of Interest | ||||||||||||||||||||||||||||||||||||
Change | Term Extension | Reduction | |||||||||||||||||||||||||||||||||||||||
(Leases only) | |||||||||||||||||||||||||||||||||||||||||
Residential | — | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | 2 | — | — | |||||||||||||||||||||||||||||||||||
Home equity lines and loans | 1 | — | — | 1 | — | — | |||||||||||||||||||||||||||||||||||
Consumer | 1 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Leases | — | — | — | — | 3 | — | |||||||||||||||||||||||||||||||||||
Total | 2 | — | 1 | 3 | 3 | 1 | |||||||||||||||||||||||||||||||||||
The following table presents information regarding loan and lease modifications granted during the twelve months ended December 31, 2012 that were categorized as TDRs: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Number of Contracts | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||||||||
Outstanding Recorded | Outstanding Recorded | ||||||||||||||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||||||||||||||
Residential | 3 | $ | 1,235 | $ | 1,235 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1 | 39 | 39 | ||||||||||||||||||||||||||||||||||||||
Home equity lines and loans | 5 | 908 | 919 | ||||||||||||||||||||||||||||||||||||||
Leases | 4 | 43 | 43 | ||||||||||||||||||||||||||||||||||||||
Total | 13 | $ | 2,225 | $ | 2,236 | ||||||||||||||||||||||||||||||||||||
The following table presents information regarding the types of loan and lease modifications made for the twelve months ended December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||
Number of Contracts | |||||||||||||||||||||||||||||||||||||||||
Interest Rate | Loan Term | Interest Rate | Interest Rate | Contractual | |||||||||||||||||||||||||||||||||||||
Change | Extension | Change and Term | Change with | Payment | |||||||||||||||||||||||||||||||||||||
Extension | Interest-Only | Reduction | |||||||||||||||||||||||||||||||||||||||
Period | (Leases only) | ||||||||||||||||||||||||||||||||||||||||
Residential. | — | 1 | 2 | — | — | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | 1 | — | — | ||||||||||||||||||||||||||||||||||||
Home equity lines and loans | 1 | — | 3 | 1 | — | ||||||||||||||||||||||||||||||||||||
Leases | — | — | — | — | 4 | ||||||||||||||||||||||||||||||||||||
Total | 1 | 1 | 6 | 1 | 4 | ||||||||||||||||||||||||||||||||||||
During the twelve months ended December 31, 2013, there were no defaults of loans or leases that had been previously modified to TDRs. | |||||||||||||||||||||||||||||||||||||||||
H. Impaired Loans | |||||||||||||||||||||||||||||||||||||||||
The following tables detail the recorded investment and principal balance of impaired loans by portfolio segment, their related allowance for loan and lease losses and interest income recognized for the twelve months ended December 31, 2013, 2012 and 2011 (purchased credit-impaired loans are not included in the tables): | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Recorded | Principal | Related | Average | Interest | Cash-Basis | |||||||||||||||||||||||||||||||||||
Investment** | Balance | Allowance | Principal | income | Interest | ||||||||||||||||||||||||||||||||||||
Balance | recognized | Income | |||||||||||||||||||||||||||||||||||||||
Recognized | |||||||||||||||||||||||||||||||||||||||||
As of or for the Twelve Months Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Impaired loans with related allowance: | |||||||||||||||||||||||||||||||||||||||||
Home equity lines and loans | $ | 277 | $ | 279 | $ | 121 | $ | 308 | $ | 6 | $ | — | |||||||||||||||||||||||||||||
Residential mortgage | 5,297 | 5,312 | 814 | 5,343 | 95 | — | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 2,985 | 3,100 | 532 | 3,210 | 82 | — | |||||||||||||||||||||||||||||||||||
Consumer | 52 | 54 | 52 | 49 | 3 | — | |||||||||||||||||||||||||||||||||||
Total | 8,611 | 8,745 | 1,519 | 8,910 | 186 | — | |||||||||||||||||||||||||||||||||||
Impaired loans* without related allowance: | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | 236 | 237 | — | 283 | — | — | |||||||||||||||||||||||||||||||||||
Home equity lines and loans | 1,151 | 1,159 | — | 1,252 | 6 | — | |||||||||||||||||||||||||||||||||||
Residential mortgage | 4,563 | 4,911 | — | 5,177 | 123 | — | |||||||||||||||||||||||||||||||||||
Construction | 1,172 | 2,134 | — | 3,452 | 27 | — | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 1,773 | 1,954 | — | 1,979 | 23 | — | |||||||||||||||||||||||||||||||||||
Total | 8,895 | 10,395 | — | 12,143 | 179 | — | |||||||||||||||||||||||||||||||||||
— | |||||||||||||||||||||||||||||||||||||||||
Grand total | $ | 17,506 | $ | 19,140 | $ | 1,519 | $ | 21,053 | $ | 365 | $ | — | |||||||||||||||||||||||||||||
* | The table above does not include the recorded investment of $63 thousand of impaired leases without a related allowance for loan and lease losses. | ||||||||||||||||||||||||||||||||||||||||
** | Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Recorded | Principal | Related | Average | Interest | Cash-Basis | |||||||||||||||||||||||||||||||||||
Investment** | Balance | Allowance | Principal | income | Interest | ||||||||||||||||||||||||||||||||||||
Balance | recognized | Income | |||||||||||||||||||||||||||||||||||||||
Recognized | |||||||||||||||||||||||||||||||||||||||||
As of or for the Twelve Months Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Impaired loans with related allowance: | |||||||||||||||||||||||||||||||||||||||||
Home equity lines and loans | $ | 1,261 | $ | 1,321 | $ | 217 | $ | 1,327 | $ | 42 | $ | — | |||||||||||||||||||||||||||||
Residential mortgage | 4,778 | 4,793 | 667 | 4,764 | 152 | — | |||||||||||||||||||||||||||||||||||
Construction | 2,564 | 2,564 | 543 | 3,272 | — | — | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 3,357 | 3,383 | 919 | 3,402 | 49 | — | |||||||||||||||||||||||||||||||||||
Consumer | 7 | 8 | 8 | 10 | — | — | |||||||||||||||||||||||||||||||||||
Total | 11,967 | 12,069 | 2,354 | 12,775 | 243 | — | |||||||||||||||||||||||||||||||||||
Impaired loans* without related allowance: | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | 541 | 574 | — | 581 | 14 | — | |||||||||||||||||||||||||||||||||||
Home equity lines and loans | 2,142 | 2,223 | — | 2,478 | 22 | — | |||||||||||||||||||||||||||||||||||
Residential mortgage | 4,433 | 4,741 | — | 4,735 | 154 | — | |||||||||||||||||||||||||||||||||||
Construction | 2,067 | 2,317 | — | 3,461 | 58 | — | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 640 | 639 | — | 645 | 16 | — | |||||||||||||||||||||||||||||||||||
Total | 9,823 | 10,494 | — | 11,900 | 264 | — | |||||||||||||||||||||||||||||||||||
— | |||||||||||||||||||||||||||||||||||||||||
Grand total | $ | 21,790 | $ | 22,563 | $ | 2,354 | $ | 24,675 | $ | 507 | $ | — | |||||||||||||||||||||||||||||
* | The table above does not include the recorded investment of $168 thousand of impaired leases without a related allowance for loan and lease losses. | ||||||||||||||||||||||||||||||||||||||||
** | Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Recorded | Principal | Related | Average | Interest | Cash-Basis | |||||||||||||||||||||||||||||||||||
Investment | Balance | Allowance | Principal | income | Interest | ||||||||||||||||||||||||||||||||||||
Balance | recognized | Income | |||||||||||||||||||||||||||||||||||||||
Recognized | |||||||||||||||||||||||||||||||||||||||||
As of or for the twelve months ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||||||
Impaired loans with related allowance: | |||||||||||||||||||||||||||||||||||||||||
Home equity lines and loans | $ | 448 | $ | 456 | $ | 75 | $ | 456 | $ | 1 | $ | — | |||||||||||||||||||||||||||||
Residential mortgage | 2,654 | 2,682 | 358 | 2,696 | 130 | — | |||||||||||||||||||||||||||||||||||
Construction | 4,853 | 6,054 | 640 | 6,478 | 73 | — | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 1,568 | 2,160 | 248 | 2,199 | 32 | — | |||||||||||||||||||||||||||||||||||
Total | 9,523 | 11,352 | 1,321 | 11,829 | 236 | — | |||||||||||||||||||||||||||||||||||
Impaired loans* without related allowance: | |||||||||||||||||||||||||||||||||||||||||
Home equity lines and loans | 2,266 | 2,310 | — | 2,316 | 46 | — | |||||||||||||||||||||||||||||||||||
Residential mortgage | 5,492 | 5,863 | — | 5,865 | 191 | — | |||||||||||||||||||||||||||||||||||
Construction | 1,209 | 1,213 | — | 1,326 | 56 | — | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 825 | 855 | — | 1,031 | 20 | — | |||||||||||||||||||||||||||||||||||
Consumer loans | 5 | 5 | — | 6 | 1 | — | |||||||||||||||||||||||||||||||||||
Total | 9,797 | 10,246 | — | 10,544 | 314 | — | |||||||||||||||||||||||||||||||||||
— | |||||||||||||||||||||||||||||||||||||||||
Grand total | $ | 19,320 | $ | 21,598 | $ | 1,321 | $ | 22,373 | $ | 550 | $ | — | |||||||||||||||||||||||||||||
* | The table above does not include the recorded investment of $680 thousand of impaired leases without a related allowance for loan and lease losses. | ||||||||||||||||||||||||||||||||||||||||
** | Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. |
Other_Real_Estate_Owned
Other Real Estate Owned | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Real Estate Owned | ' | ||||||||
Note 6—Other Real Estate Owned | |||||||||
Other real estate owned consists of properties acquired as a result of deed in-lieu-of foreclosure and foreclosures. Properties or other assets are classified as OREO and are reported at the lower of carrying value or fair value, less estimated costs to sell. Costs relating to the development or improvement of assets are capitalized, and costs relating to holding the property are charged to expense. The five properties comprising the balance as of December 31, 2013 include three residential properties, one commercial property, and an undeveloped parcel of land. | |||||||||
The summary of the change in other real estate owned, which is included as a component of other assets on the Corporation’s Consolidated Balance Sheets, is as follows: | |||||||||
December 31, | |||||||||
(dollars in thousands) | 2013 | 2012 | |||||||
Balance January 1 | $ | 906 | $ | 549 | |||||
Additions | 853 | 949 | |||||||
Capitalized cost | 485 | 61 | |||||||
Sales | (1,389 | ) | (653 | ) | |||||
Balance December 31 | $ | 855 | $ | 906 | |||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Premises and Equipment | ' | ||||||||
Note 7—Premises and Equipment | |||||||||
A. A summary of premises and equipment is as follows: | |||||||||
December 31, | |||||||||
(dollars in thousands) | 2013 | 2012 | |||||||
Land | $ | 5,306 | $ | 5,306 | |||||
Buildings | 23,557 | 22,966 | |||||||
Furniture and equipment | 23,379 | 21,598 | |||||||
Leasehold improvements | 14,979 | 13,729 | |||||||
Construction in progress | 571 | 1,925 | |||||||
Less: accumulated depreciation | (35,996 | ) | (34,354 | ) | |||||
Total | $ | 31,796 | $ | 31,170 | |||||
Depreciation and amortization expense related to the assets detailed in the above table for the years ended December 31, 2013, 2012, and 2011 amounted to $3.0 million, $2.9 million, and $2.8 million, respectively. | |||||||||
B. Future minimum cash rent commitments under various operating leases as of December 31, 2013 are as follows: | |||||||||
(dollars in thousands) | |||||||||
2014 | $ | 3,061 | |||||||
2015 | 3,107 | ||||||||
2016 | 2,960 | ||||||||
2017 | 2,980 | ||||||||
2018 | 3,030 | ||||||||
2019 and thereafter | 37,633 | ||||||||
Total | $ | 52,771 | |||||||
Rent expense on leased premises and equipment for the years ended December 31, 2013, 2012 and 2011 amounted to $3.4 million, $2.7 million, and $2.2 million, respectively. |
Mortgage_Servicing_Rights_MSRs
Mortgage Servicing Rights ("MSR"s) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Mortgage Servicing Rights ("MSR"s) | ' | ||||||||||||
Note 8—Mortgage Servicing Rights (“MSR”s) | |||||||||||||
A. The following summarizes the Corporation’s activity related to MSRs for the years ended December 31: | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Balance, January 1 | $ | 4,491 | $ | 4,041 | $ | 4,925 | |||||||
Additions | 1,002 | 1,579 | 651 | ||||||||||
Amortization | (740 | ) | (966 | ) | (749 | ) | |||||||
Impairment | (3 | ) | (163 | ) | (786 | ) | |||||||
Balance, December 31 | $ | 4,750 | $ | 4,491 | $ | 4,041 | |||||||
Fair value | $ | 5,733 | $ | 4,638 | $ | 4,041 | |||||||
Loans serviced for others | $ | 628,879 | $ | 595,317 | $ | 574,422 | |||||||
B. The following summarizes the Corporation’s activity related to changes in the impairment valuation allowance of MSRs for the years ended December 31: | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Balance, January 1 | $ | (1,545 | ) | $ | (1,382 | ) | $ | (596 | ) | ||||
Impairment | (126 | ) | (278 | ) | (800 | ) | |||||||
Recovery | 123 | 115 | 14 | ||||||||||
Balance, December 31 | $ | (1,548 | ) | $ | (1,545 | ) | $ | (1,382 | ) | ||||
C. Other MSR Information—At December 31, 2013, key economic assumptions and the sensitivity of the current fair value of MSRs to immediate 10 and 20 percent adverse changes in those assumptions are as follows: | |||||||||||||
(dollars in thousands) | |||||||||||||
Fair value amount of MSRs | $ | 5,733 | |||||||||||
Weighted average life (in years) | 6.3 | ||||||||||||
Prepayment speeds (constant prepayment rate)* | 11.1 | % | |||||||||||
Impact on fair value: | |||||||||||||
10% adverse change | $ | (206 | ) | ||||||||||
20% adverse change | $ | (402 | ) | ||||||||||
Discount rate | 10.5 | % | |||||||||||
Impact on fair value: | |||||||||||||
10% adverse change | $ | (231 | ) | ||||||||||
20% adverse change | $ | (445 | ) | ||||||||||
* | Represents the weighted average prepayment rate for the life of the MSR asset. | ||||||||||||
At December 31, 2013, 2012 and 2011, the fair value of the mortgage MSRs is $5.7 million, $4.6 million, and $4.0 million, respectively. The fair value of the MSRs for these dates was determined using a values obtained from a third party which utilizes a valuation model that calculates the present value of estimated future servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds and discount rates. Mortgage loan prepayment speed is the annual rate at which borrowers are forecasted to repay their mortgage loan principal and is based on historical experience. The discount rate is used to determine the present value of future net servicing income. Another key assumption in the model is the required rate of return the market would expect for an asset with similar risk. Both assumptions can, and generally will, change quarterly valuations as market conditions and interest rates change. Management reviews, annually, the process utilized by its independent third-party valuation experts. | |||||||||||||
These assumptions and sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on a 10% variation in assumptions generally cannot be extrapolated because the relationship of the change in assumptions to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which could magnify or counteract the sensitivities. |
Deposits
Deposits | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deposits | ' | ||||||||
Note 9—Deposits | |||||||||
A. The following table details the components of deposits: | |||||||||
As of December 31, | |||||||||
(dollars in thousands) | 2013 | 2012 | |||||||
Savings | $ | 135,240 | $ | 129,091 | |||||
NOW accounts* | 266,787 | 270,279 | |||||||
Market rate accounts* | 587,247 | 604,632 | |||||||
Time deposits, less than $100 | 88,056 | 121,994 | |||||||
Time deposits, $100 or more | 52,738 | 96,592 | |||||||
Wholesale time deposits | 34,639 | 12,421 | |||||||
Total interest-bearing deposits | 1,164,707 | 1,235,009 | |||||||
Non-interest-bearing deposits | 426,640 | 399,673 | |||||||
Total deposits | $ | 1,591,347 | $ | 1,634,682 | |||||
* | Includes wholesale deposits. | ||||||||
The aggregate amount of deposit overdrafts included as loans as of December 31, 2013 and 2012 were $795 thousand and $603 thousand, respectively. | |||||||||
B. The following tables detail the maturities of retail time deposits: | |||||||||
As of December 31, 2013 | |||||||||
(dollars in thousands) | $100 | Less than | |||||||
or more | $100 | ||||||||
Maturing during: | |||||||||
2014 | $ | 41,622 | $ | 61,993 | |||||
2015 | 4,818 | 15,818 | |||||||
2016 | 1,846 | 3,381 | |||||||
2017 | 2,127 | 3,239 | |||||||
2018 | 2,325 | 3,602 | |||||||
2019 and thereafter | — | 23 | |||||||
Total | $ | 52,738 | $ | 88,056 | |||||
C. The following tables detail the maturities of wholesale time deposits: | |||||||||
As of December 31, 2013 | |||||||||
(dollars in thousands) | $100 | Less than | |||||||
or more | $100 | ||||||||
Maturing during: | |||||||||
2014 | $ | 8,303 | $ | 191 | |||||
2015 | 9,967 | — | |||||||
2016 | 4,983 | — | |||||||
2017 | 11,195 | — | |||||||
Total | $ | 34,448 | $ | 191 | |||||
Shortterm_and_Other_Borrowings
Short-term and Other Borrowings | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Short-term and Other Borrowings | ' | ||||||||||||||||||||||||||||
Note 10—Short-term and Other Borrowings | |||||||||||||||||||||||||||||
A. Short-term borrowings—As of December 31, 2013 and 2012, the Corporation had $10.9 million and $9.4 million of short-term (original maturity of one year or less) borrowings, respectively, which consisted solely of funds obtained from overnight repurchase agreements with commercial customers. | |||||||||||||||||||||||||||||
A summary of short-term borrowings is as follows: | |||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||
Overnight fed funds | $ | — | $ | — | |||||||||||||||||||||||||
Repurchase agreements | 10,891 | 9,403 | |||||||||||||||||||||||||||
Total short-term borrowings | $ | 10,891 | $ | 9,403 | |||||||||||||||||||||||||
The following table sets forth information concerning short-term borrowings: | |||||||||||||||||||||||||||||
As of or Twelve Months Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||
Balance at period-end | $ | 10,891 | $ | 9,403 | |||||||||||||||||||||||||
Maximum amount outstanding at any month end | 75,588 | 19,029 | |||||||||||||||||||||||||||
Average balance outstanding during the period | 16,457 | 13,525 | |||||||||||||||||||||||||||
Weighted-average interest rate: | |||||||||||||||||||||||||||||
As of the period-end | 0.1 | % | 0.15 | % | |||||||||||||||||||||||||
Paid during the period | 0.15 | % | 0.16 | % | |||||||||||||||||||||||||
Average balances outstanding during the year represent daily average balances and average interest rates represent interest expense divided by the related average balance. | |||||||||||||||||||||||||||||
B. FHLB Advances and Other Borrowings: | |||||||||||||||||||||||||||||
As of December 31, 2013 and 2012, the Corporation had $205.6 million and $161.3 million, respectively, of other borrowings, consisting of advances from FHLB and a commercial term loan from a correspondent bank. | |||||||||||||||||||||||||||||
The following table presents the remaining periods until maturity of the FHLB advances and other borrowings: | |||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||
Within one year | $ | 3,917 | $ | 35,458 | |||||||||||||||||||||||||
Over one year through five years | 196,727 | 104,244 | |||||||||||||||||||||||||||
Over five years through ten years | 5,000 | 21,613 | |||||||||||||||||||||||||||
Over ten years | — | — | |||||||||||||||||||||||||||
Total | $ | 205,644 | $ | 161,315 | |||||||||||||||||||||||||
The following table presents rate and maturity information on FHLB advances and other borrowings: | |||||||||||||||||||||||||||||
Maturity Range* | Weighted | Coupon Rate | Balance at | ||||||||||||||||||||||||||
Average | December 31, | ||||||||||||||||||||||||||||
Description | From | To | Rate | From | To | 2013 | 2012 | ||||||||||||||||||||||
Fixed amortizing | 4/9/15 | 4/9/15 | 3.57 | % | 3.57 | % | 3.57 | % | $ | 2,102 | $ | 4,285 | |||||||||||||||||
Adjustable amortizing** | 12/31/16 | 12/31/16 | 3.25 | % | 3.25 | % | 3.25 | % | 7,050 | 9,400 | |||||||||||||||||||
Bullet maturity—fixed rate | 3/23/15 | 5/28/19 | 1.37 | % | 0.58 | % | 2.41 | % | 140,000 | 90,000 | |||||||||||||||||||
Bullet maturity—variable rate | 6/25/15 | 11/28/17 | 0.45 | % | 0.38 | % | 0.54 | % | 35,000 | 15,000 | |||||||||||||||||||
Convertible-fixed | 1/3/18 | 8/20/18 | 2.95 | % | 2.58 | % | 3.5 | % | 21,492 | 42,630 | |||||||||||||||||||
Total | $ | 205,644 | $ | 161,315 | |||||||||||||||||||||||||
* | Maturity range refers to December 31, 2013 balances | ||||||||||||||||||||||||||||
** | Loans from correspondent banks other than FHLB | ||||||||||||||||||||||||||||
Included in the table above as of December 31, 2013 and 2012 are $21.5 million and $42.6 million, respectively, of FHLB advances whereby the FHLB has the option, at predetermined times, to convert the fixed interest rate to an adjustable interest rate indexed to the London Interbank Offered Rate (“LIBOR”). The Corporation has the option to prepay these advances, without penalty, if the FHLB elects to convert the interest rate to an adjustable rate. As of December 31, 2013, substantially all the FHLB advances with this convertible feature are subject to conversion in fiscal 2014. These advances are included in the periods in which they mature, rather than the period in which they are subject to conversion. | |||||||||||||||||||||||||||||
C. Other FHLB Information—The Corporation had a maximum borrowing capacity (“MBC”) with the FHLB of $841.5 million as of December 31, 2013 of which the unused capacity was $628.4 million at December 31, 2013. In addition there were $64.0 million in overnight federal funds line and $73.3 million of Federal Reserve Discount Window capacity. In connection with its FHLB borrowings, the Corporation is required to hold the capital stock of the FHLB. The amount of capital stock held was $11.7 million at December 31, 2013, and $10.8 million at December 31, 2012. The carrying amount of the FHLB stock approximates its redemption value. | |||||||||||||||||||||||||||||
The level of required investment in FHLB stock is based on the balance of outstanding loans the Corporation has from the FHLB. Although FHLB stock is a financial instrument that represents an equity interest in the FHLB, it does not have a readily determinable fair value. FHLB stock is generally viewed as a long-term investment. Accordingly, when evaluating FHLB stock for impairment, its value should be determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. |
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||
Derivatives and Hedging Activities | ' | ||||||||||||||||||||||||||||||
Note 11—Derivatives and Hedging Activities | |||||||||||||||||||||||||||||||
In December, 2012, the Corporation entered into a forward-starting interest rate swap to hedge the cash flows of a $15 million floating-rate FHLB borrowing. The interest rate swap involves the exchange of the Corporation’s floating rate interest payments on the underlying principal amount. This swap was designated, and qualified, for cash-flow hedge accounting. The term of the swap begins November 30, 2015 and ends November 28, 2022. For derivative instruments that are designated and qualify as hedging instruments, the effective portion of gains or losses is reported as a component of other comprehensive income, and is subsequently reclassified into earnings as an adjustment to interest expense in the periods in which the hedged forecasted transaction affects earnings. | |||||||||||||||||||||||||||||||
The following table details the Corporation’s derivative positions as of the balance sheet dates indicated: | |||||||||||||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Notional | Trade Date | Effective | Maturity Date | Receive (Variable) Index | Current | Pay Fixed | Fair Value of | ||||||||||||||||||||||||
Amount | Date | Projected | Swap Rate | Asset | |||||||||||||||||||||||||||
Receive Rate | (Liability) | ||||||||||||||||||||||||||||||
$15,000 | 12/13/12 | 11/30/15 | 11/28/22 | US 3-Month LIBOR | 3.597 | % | 2.376 | % | $ | 1,142 | |||||||||||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Notional | Trade Date | Effective | Maturity Date | Receive (Variable) | Current | Pay Fixed | Fair Value of | ||||||||||||||||||||||||
Amount | Date | Index | Projected | Swap Rate | Asset | ||||||||||||||||||||||||||
Receive Rate | (Liability) | ||||||||||||||||||||||||||||||
$15,000 | 12/13/12 | 11/30/15 | 11/28/22 | US 3-Month LIBOR | 2.338 | % | 2.376 | % | $ | (36 | ) | ||||||||||||||||||||
For the twelve month periods ended December 31, 2013, 2012 and 2011, there have been no reclassifications of the interest-rate swap’s fair value from other comprehensive income to earnings. |
Disclosure_about_Fair_Value_of
Disclosure about Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Disclosure about Fair Value of Financial Instruments | ' | ||||||||||||||||||
Note 12—Disclosure about Fair Value of Financial Instruments | |||||||||||||||||||
FASB ASC 825, “Disclosures about Fair Value of Financial Instruments” requires disclosure of the fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate such value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other market value techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. The aggregate fair value amounts presented below do not represent the underlying value of the Corporation. | |||||||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: | |||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||
The carrying amounts reported in the balance sheet for cash and cash equivalents approximate their fair values. | |||||||||||||||||||
Investment Securities | |||||||||||||||||||
Estimated fair values for investment securities are generally valued by an independent third party based on market data, utilizing pricing models that vary by asset and incorporate available trade, bid and other market information. Management reviews, annually, the process utilized by its independent third-party valuation experts. On a quarterly basis, Management tests the validity of the prices provided by the third party by selecting a representative sample of the portfolio and obtaining actual trade results, or if actual trade results are not available, competitive broker pricing. See Note 4 of the Notes to Consolidated Financial Statements for more information. | |||||||||||||||||||
Loans Held for Sale | |||||||||||||||||||
The fair value of loans held for sale is based on pricing obtained from secondary markets. | |||||||||||||||||||
Net Portfolio Loans and Leases | |||||||||||||||||||
For variable rate loans that reprice frequently and which have no significant change in credit risk, estimated fair values are based on carrying values. Fair values of certain mortgage loans and consumer loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality and is indicative of an entry price. The estimated fair value of nonperforming loans is based on discounted estimated cash flows as determined by the internal loan review of the Bank or the appraised market value of the underlying collateral, as determined by independent third party appraisers. This technique does not reflect an exit price. | |||||||||||||||||||
Impaired Loans | |||||||||||||||||||
The Corporation evaluates and values impaired loans at the time the loan is identified as impaired, and the fair values of such loans are estimated using Level 3 inputs in the fair value hierarchy. Each loan’s collateral has a unique appraisal and management’s discount of the value is based on the factors unique to each impaired loan. The significant unobservable input in determining the fair value is management’s subjective discount on appraisals of the collateral securing the loan, which range from 10%—50%. Collateral may consist of real estate and/or business assets including equipment, inventory and/or accounts receivable and the value of these assets is determined based on the appraisals by qualified licensed appraisers hired by the Corporation. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, estimated costs to sell, and/or management’s expertise and knowledge of the client and the client’s business. | |||||||||||||||||||
Other Real Estate Owned | |||||||||||||||||||
Other real estate owned consists of properties acquired as a result of foreclosures and deeds in-lieu-of foreclosure. Properties are classified as OREO and are reported at the lower of cost or fair value less cost to sell, and are classified as Level 3 in the fair value hierarchy. | |||||||||||||||||||
Mortgage Servicing Rights | |||||||||||||||||||
The fair value of the MSRs for these periods was determined using a proprietary third-party valuation model that calculates the present value of estimated future servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds and discount rates. Due to the proprietary nature of the valuation model used, the Corporation classifies the value of MSRs as using Level 3 inputs. | |||||||||||||||||||
Other Assets | |||||||||||||||||||
The carrying amount of accrued interest receivable, income taxes receivable and other investments approximates fair value. | |||||||||||||||||||
Deposits | |||||||||||||||||||
The estimated fair values disclosed for noninterest-bearing demand deposits, savings, NOW accounts, and Market Rate accounts are, by definition, equal to the amounts payable on demand at the reporting date (i.e., their carrying amounts). Fair values for certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of expected monthly maturities on the certificate of deposit. FASB Codification 825 defines the fair value of demand deposits as the amount payable on demand as of the reporting date and prohibits adjusting estimated fair value from any value derived from retaining those deposits for an expected future period of time. | |||||||||||||||||||
Short-term borrowings | |||||||||||||||||||
The carrying amount of short-term borrowings, which include overnight repurchase agreements approximate their fair value. | |||||||||||||||||||
FHLB Advances and Other Borrowings | |||||||||||||||||||
The fair value of FHLB advances and other borrowings, which include a $7.1 million term loan, is established using a discounted cash flow calculation that applies interest rates currently being offered on mid-term and long term borrowings. | |||||||||||||||||||
Other Liabilities | |||||||||||||||||||
The carrying amounts of accrued interest payable and other accrued payables approximate fair value. | |||||||||||||||||||
Off-Balance Sheet Instruments | |||||||||||||||||||
Estimated fair values of the Corporation’s commitments to extend credit, standby letters of credit and financial guarantees are not included in the table below as their carrying values generally approximate their fair values. These instruments generate fees that approximate those currently charged to originate similar commitments. | |||||||||||||||||||
The carrying amount and estimated fair value of the Corporation’s financial instruments are as follows: | |||||||||||||||||||
As of December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(dollars in thousands) | Fair Value | Carrying | Estimated | Carrying | Estimated | ||||||||||||||
Hierarchy | Amount | Fair Value | Amount | Fair Value | |||||||||||||||
Level* | |||||||||||||||||||
Financial assets: | |||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 81,071 | $ | 81,071 | $ | 175,686 | $ | 175,686 | ||||||||||
Investment securities—available for sale | See Note 13 | 285,808 | 285,808 | 316,614 | 316,614 | ||||||||||||||
Investment securities—trading | See Note 13 | 3,437 | 3,437 | 1,447 | 1,447 | ||||||||||||||
Loans held for sale | Level 2 | 1,350 | 1,350 | 3,412 | 3,482 | ||||||||||||||
Net portfolio loans and leases | Level 3 | 1,531,670 | 1,534,631 | 1,384,031 | 1,412,619 | ||||||||||||||
Mortgage servicing rights | Level 3 | 4,750 | 5,733 | 4,491 | 4,638 | ||||||||||||||
Other assets | Level 3 | 21,819 | 21,819 | 21,735 | 21,735 | ||||||||||||||
Total financial assets | $ | 1,929,905 | $ | 1,933,849 | $ | 1,907,416 | $ | 1,936,221 | |||||||||||
Financial liabilities: | |||||||||||||||||||
Deposits | Level 2 | $ | 1,591,347 | $ | 1,591,215 | $ | 1,634,682 | $ | 1,635,374 | ||||||||||
Short-term borrowings | Level 2 | 10,891 | 10,891 | 9,403 | 9,403 | ||||||||||||||
FHLB advances and other borrowings | Level 2 | 205,644 | 205,149 | 161,315 | 164,273 | ||||||||||||||
Other liabilities | Level 2 | 23,885 | 23,885 | 26,921 | 26,921 | ||||||||||||||
Total financial liabilities | $ | 1,831,767 | $ | 1,831,140 | $ | 1,832,321 | $ | 1,835,971 | |||||||||||
* | see Note 13 in the Notes to Consolidated Financial Statements for a description of hierarchy levels |
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurement | ' | ||||||||||||||||
Note 13—Fair Value Measurement | |||||||||||||||||
FASB ASC 820, “Fair Value Measurement” establishes a fair value hierarchy based on the nature of data inputs for fair value determinations, under which the Corporation is required to value each asset using assumptions that market participants would utilize to value that asset. When the Corporation uses its own assumptions it is required to disclose additional information about the assumptions used and the effect of the measurement on earnings or the net change in assets for the period. | |||||||||||||||||
The value of the Corporation’s available for sale investment securities, which include obligations of the U.S. government and its agencies, mortgage-backed securities issued by U.S. government- and U.S. government sponsored agencies, obligations of state and political subdivisions, corporate bonds, other debt securities, as well as bond mutual funds are determined by an independent third party. The Corporation performs tests to assess the validity of these third-party values. The third party’s evaluations are based on market data. They utilize pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, their pricing models apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (only obtained from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bid, offers and reference data. For certain securities, additional inputs may be used or some market inputs may not be applicable. Inputs are prioritized differently on any given day based on market conditions. | |||||||||||||||||
U.S. Government agencies are evaluated and priced using multi-dimensional relational models and option adjusted spreads. State and municipal securities are evaluated on a series of matrices including reported trades and material event notices. Mortgage-backed securities are evaluated using matrix correlation to treasury or floating index benchmarks, prepayment speeds, monthly payment information and other benchmarks. Other available-for-sale investments are evaluated using a broker-quote based application, including quotes from issuers. | |||||||||||||||||
The value of the investment portfolio is determined using three broad levels of inputs: | |||||||||||||||||
Level 1—Quoted prices in active markets for identical securities. | |||||||||||||||||
Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active and model derived valuations whose inputs are observable or whose significant value drivers are observable. | |||||||||||||||||
Level 3—Instruments whose significant value drivers are unobservable. | |||||||||||||||||
These levels are not necessarily an indication of the risks or liquidity associated with these investments. The following tables summarize the assets at December 31, 2013 and 2012 that are recognized on the Corporation’s balance sheet using fair value measurement determined based on the differing levels of input. | |||||||||||||||||
Fair value of assets measured on a recurring basis for the year ended December 31, 2013: | |||||||||||||||||
(dollars in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Investment securities (available for sale and trading): | |||||||||||||||||
Obligations of U.S. government & agencies | $ | 69.6 | $ | — | $ | 69.6 | $ | — | |||||||||
Obligations of state & political subdivisions | 37 | — | 37 | — | |||||||||||||
Mortgage-backed securities | 119.4 | — | 119.4 | — | |||||||||||||
Collateralized mortgage obligations | 44.2 | — | 44.2 | — | |||||||||||||
Mutual funds | 14.9 | 14.9 | — | — | |||||||||||||
Other debt securities | 4.1 | — | 4.1 | — | |||||||||||||
Total assets measured on a recurring basis at fair value | $ | 289.2 | $ | 14.9 | $ | 274.3 | $ | 0 | |||||||||
Fair value of assets measured on a non-recurring basis at December 31, 2013: | |||||||||||||||||
(dollars in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Mortgage servicing rights | $ | 0.2 | $ | — | $ | — | $ | 0.2 | |||||||||
Impaired loans and leases | 16.1 | — | — | 16.1 | |||||||||||||
OREO and other repossessed property | 0.9 | — | — | 0.9 | |||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | 17.2 | $ | — | $ | — | $ | 17.2 | |||||||||
Fair value of assets measured on a recurring basis for the year ended December 31, 2012: | |||||||||||||||||
(dollars in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Investment securities (available for sale and trading): | |||||||||||||||||
Obligations of U.S. government & agencies | $ | 73.9 | $ | — | $ | 73.9 | $ | — | |||||||||
Obligations of state & political subdivisions | 30.4 | — | 30.4 | — | |||||||||||||
Mortgage-backed securities | 131.8 | — | 131.8 | — | |||||||||||||
Collateralized mortgage obligations | 62.7 | — | 62.7 | — | |||||||||||||
Mutual funds | 15 | 15 | — | — | |||||||||||||
Investment certificates of deposit | 2.3 | — | 2.3 | — | |||||||||||||
Other debt securities | 1.9 | — | 1.9 | — | |||||||||||||
Total assets measured on a recurring basis at fair value | $ | 318 | $ | 15 | $ | 303 | $ | 0 | |||||||||
Fair value of assets measured on a non-recurring basis at December 31, 2012: | |||||||||||||||||
(dollars in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Mortgage servicing rights | $ | 0.9 | $ | — | $ | — | $ | 0.9 | |||||||||
Impaired loans and leases | 19.7 | — | — | 19.7 | |||||||||||||
OREO and other repossessed property | 0.9 | — | — | 0.9 | |||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | 21.5 | $ | — | $ | — | $ | 21.5 | |||||||||
During the twelve months ended December 31, 2013 and 2012, a net increase of $218 thousand and $975 thousand, respectively, in the Allowance was recorded as a result of adjusting the carrying value and estimated fair value of the impaired loans in the above tables. As it relates to the fair values of assets measured on a recurring basis, there have been no transfers between levels during the twelve months ended December 31, 2013. |
401K_Plan_and_Other_Defined_Co
401(K) Plan and Other Defined Contribution Plans | 12 Months Ended |
Dec. 31, 2013 | |
401(K) Plan and Other Defined Contribution Plans | ' |
Note 14—401(K) Plan and Other Defined Contribution Plans | |
The Corporation has a qualified defined contribution plan (the “401(K) Plan”) for all eligible employees, under which the Corporation contributes $1.00 for each $1.00 that an employee contributes up to a maximum of 3.0% of the employee’s base salary. The Corporation’s expenses for the 401(K) Plan were $803 thousand, $747 thousand and $618 thousand in 2013, 2012 and 2011, respectively. | |
In addition to the matching contribution above, the Corporation provides a discretionary, non-matching employer contribution to the 401(K) Plan. The Corporation’s expense for the non-matching discretionary contribution was $1.0 million, $879 thousand and $652 thousand, for the twelve months ended December 31, 2013, 2012 and 2011, respectively. | |
On June 28, 2013, the Corporation adopted the Bryn Mawr Bank Corporation Executive Deferred Compensation Plan (the “EDCP”), a non-qualified defined-contribution plan which was restricted to certain senior officers of the Corporation. The intended purpose of the EDCP is to provide deferred compensation to a select group of employees. The Corporation’s expense for the EDCP, for the twelve months ended December 31, 2013 was $221 thousand. |
Pension_and_Postretirement_Ben
Pension and Postretirement Benefit Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | ' | ||||||||||||||||||||||||
Note 15—Pension and Postretirement Benefit Plans | |||||||||||||||||||||||||
A. General Overview – The Corporation has three defined-benefit pension plans comprised of a qualified defined benefit plan (the “QDBP”) which covers all employees over age 20 1/2 who meet certain service requirements, and two non-qualified defined-benefit supplemental executive retirement plans (“SERP I” and “SERP II”) which are restricted to certain senior officers of the Corporation. | |||||||||||||||||||||||||
SERP I provides each participant with the equivalent pension benefit provided by the QDBP on any compensation and bonus deferrals that exceed the IRS limit applicable to the QDBP. | |||||||||||||||||||||||||
On February 12, 2008, the Corporation amended the QDBP and SERP I to freeze further increases in the defined benefit amounts to all participants, effective March 31, 2008. | |||||||||||||||||||||||||
On April 1, 2008, the Corporation added SERP II, a non-qualified defined benefit plan which was restricted to certain senior officers of the Corporation. Effective March 31, 2013, the Corporation has curtailed SERP II, as further increases to the defined benefit amounts to over 20% of the participants have been frozen. | |||||||||||||||||||||||||
The Corporation also has a postretirement benefit plan (“PRBP”) that covers certain retired employees and a group of current employees. The PRBP was closed to new participants in 1994. In 2007, the Corporation amended the PRBP to allow for settlement of obligations to certain current and retired employees. Certain retired participant obligations were settled in 2007 and current employee obligations were settled in 2008. | |||||||||||||||||||||||||
The following table provides information with respect to our QDBP, SERP, and PRBP, including benefit obligations and funded status, net periodic pension costs, plan assets, cash flows, amortization information and other accounting items. | |||||||||||||||||||||||||
B. Actuarial Assumptions used to determine benefit obligations as of December 31 of the years indicated: | |||||||||||||||||||||||||
QDBP | SERP I and SERP | PRBP | |||||||||||||||||||||||
II | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Discount rate | 4.6 | % | 3.7 | % | 4.6 | % | 3.7 | % | 4.6 | % | 3.7 | % | |||||||||||||
Rate of increase for future compensation | N/A | N/A | 3.5 | % | 3.5 | % | N/A | N/A | |||||||||||||||||
Expected long-term rate of return on plan assets | 7.5 | % | 7.5 | % | N/A | N/A | N/A | N/A | |||||||||||||||||
C. Changes in Benefit Obligations and Plan Assets: | |||||||||||||||||||||||||
QDBP | SERP I & SERP | PRBP | |||||||||||||||||||||||
II | |||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Change in benefit obligations | |||||||||||||||||||||||||
Benefit obligation at January 1 | $ | 40,825 | $ | 38,056 | $ | 6,693 | $ | 5,862 | $ | 842 | $ | 913 | |||||||||||||
Service cost | — | — | 71 | 243 | — | — | |||||||||||||||||||
Interest cost | 1,484 | 1,576 | 188 | 243 | 29 | 36 | |||||||||||||||||||
Plan participants contribution | — | — | — | — | 38 | 49 | |||||||||||||||||||
Actuarial (gain) loss | (4,145 | ) | 2,973 | 10 | 491 | (65 | ) | 36 | |||||||||||||||||
Curtailments | — | — | (2,808 | ) | — | — | — | ||||||||||||||||||
Benefits paid | (1,798 | ) | (1,780 | ) | (146 | ) | (146 | ) | (156 | ) | (192 | ) | |||||||||||||
Benefit obligation at December 31 | $ | 36,366 | $ | 40,825 | $ | 4,008 | $ | 6,693 | $ | 688 | $ | 842 | |||||||||||||
Change in plan assets | |||||||||||||||||||||||||
Fair value of plan assets at January 1 | $ | 40,666 | $ | 38,295 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Actual return on plan assets | 6,705 | 4,151 | — | — | — | — | |||||||||||||||||||
Employer contribution | — | — | 146 | 146 | 118 | 143 | |||||||||||||||||||
Plan participants’ contribution | — | — | — | — | 38 | 49 | |||||||||||||||||||
Benefits paid | (1,798 | ) | (1,780 | ) | (146 | ) | (146 | ) | (156 | ) | (192 | ) | |||||||||||||
Fair value of plan assets at December 31 | $ | 45,573 | $ | 40,666 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Funded status at year end (plan assets less benefit obligations) | $ | 9,207 | $ | (159 | ) | $ | (4,008 | ) | $ | (6,693 | ) | $ | (688 | ) | $ | (842 | ) | ||||||||
Amounts included in the consolidated balance sheet as other assets (liabilities) and accumulated other comprehensive income including the following: | |||||||||||||||||||||||||
For the Twelve Months Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Prepaid benefit cost/(accrued liability) | $ | 16,346 | $ | 16,573 | $ | (3,201 | ) | $ | (3,669 | ) | $ | (250 | ) | $ | (263 | ) | |||||||||
Net actuarial loss | (7,139 | ) | (16,732 | ) | (790 | ) | (2,169 | ) | (438 | ) | (579 | ) | |||||||||||||
Prior service cost | — | — | (17 | ) | (855 | ) | — | — | |||||||||||||||||
Unrecognized net initial obligation | — | — | — | — | — | — | |||||||||||||||||||
Net amount recognized | $ | 9,207 | $ | (159 | ) | $ | (4,008 | ) | $ | (6,693 | ) | $ | (688 | ) | $ | (842 | ) | ||||||||
D. The following tables provide the components of net periodic pension costs for the periods indicated: | |||||||||||||||||||||||||
QDBP Net Periodic Pension Cost | For the Twelve Months Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | |||||||||||||||||||
Interest cost | 1,484 | 1,576 | 1,708 | ||||||||||||||||||||||
Expected return on plan assets | (2,981 | ) | (2,804 | ) | (2,214 | ) | |||||||||||||||||||
Amortization of prior service cost | — | — | — | ||||||||||||||||||||||
Recognition of net actuarial loss | 1,724 | 1,786 | 899 | ||||||||||||||||||||||
Curtailment | — | — | — | ||||||||||||||||||||||
Net periodic pension cost | $ | 227 | $ | 558 | $ | 393 | |||||||||||||||||||
SERP I and SERP II Periodic Pension Cost | For the Twelve Months Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Service cost | $ | 71 | $ | 243 | $ | 230 | |||||||||||||||||||
Interest cost | 188 | 243 | 248 | ||||||||||||||||||||||
Gain on curtailment | (690 | ) | — | — | |||||||||||||||||||||
Amortization of prior service cost | 31 | 82 | 82 | ||||||||||||||||||||||
Recognition of net actuarial loss | 78 | 86 | 49 | ||||||||||||||||||||||
Net periodic pension (benefit) cost | $ | (322 | ) | $ | 654 | $ | 609 | ||||||||||||||||||
PRBP Net Periodic Pension Cost | For the Twelve Months Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | |||||||||||||||||||
Interest cost | 29 | 36 | 48 | ||||||||||||||||||||||
Settlement | — | — | — | ||||||||||||||||||||||
Amortization of transition obligation | — | 26 | 26 | ||||||||||||||||||||||
Amortization of prior service cost | — | — | (55 | ) | |||||||||||||||||||||
Recognition of net actuarial loss | 76 | 79 | 77 | ||||||||||||||||||||||
Net periodic pension cost | $ | 105 | $ | 141 | $ | 96 | |||||||||||||||||||
For the Twelve Months Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Discount Rate Used in the Calculation of Periodic Pension Costs | 3.70 | % | 4.20 | % | 5.30 | % | |||||||||||||||||||
E. Plan Assets: | |||||||||||||||||||||||||
The information in this section pertains to the assets of the QDBP. The PRBP, SERP I and SERP II are unfunded plans and, as such, have no related plan assets. | |||||||||||||||||||||||||
The following table details the asset allocation and the QDBP’s policy asset allocation range as of the dates indicated | |||||||||||||||||||||||||
2013 Plan Policy | 2012 Plan Policy | Percentage of | |||||||||||||||||||||||
Asset Allocation | Asset Allocation | QDBP Plan | |||||||||||||||||||||||
Range** | Range** | Assets as of | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Asset Category | |||||||||||||||||||||||||
Equity securities* | 50% to 65% | 50% to 65% | 63 | % | 61 | % | |||||||||||||||||||
Fixed-income investments | 10% to 30% | 10% to 30% | 14 | % | 19 | % | |||||||||||||||||||
Alternative investments | 0% to 30% | 0% to 30% | 20 | % | 14 | % | |||||||||||||||||||
Cash reserves** | 1% to 5% | 1% to 5% | 3 | % | 6 | % | |||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||||
* | Includes Bryn Mawr Bank Corporation common stock in the amount of $951 thousand, or 2.1%, and $702 thousand, or 1.7%, at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||
** | Asset categories that fall outside the asset allocation range (policy) are outside the range on a short-term basis and is often related to the timing of plan funding and subsequent investment. Reallocation is done regularly in order to adhere to the plan’s asset allocation policy | ||||||||||||||||||||||||
The expected rate of return on plan assets in the QDBP was selected by the Corporation after consultation with its actuary, and is based in part on long term historical rates of return and various actuarial assumptions. The discount rate was also selected by the Corporation after consultation with its actuary, and is based in part upon the current yield of a portfolio of long term investment grade securities. | |||||||||||||||||||||||||
The investment strategy of the QDBP is to maintain the investment ranges listed above. The target ranges are to be periodically reviewed based on the prevailing market conditions. Any modification to the current investment strategy must be ratified by the Wealth Management Committee of the Corporation’s Board of Directors. The QDBP is allowed to retain approximately 2.5% of Bryn Mawr Bank Corporation common stock. | |||||||||||||||||||||||||
The Corporation’s overall investment strategy is to achieve a mix of approximately 60% investments for long-term growth and 40% for production of current income. The target allocations for the QDBP are 60% equity securities comprised of a number of mutual funds managed with differing objectives and styles. The plan also holds shares of the Corporation’s common stock. Fixed income obligations include corporate obligations, U.S. Treasury and Agency securities, along with fixed income mutual funds. | |||||||||||||||||||||||||
In addition, the QDBP invests in alternative investments whose definition is quite broad. Examples of strategies that may be deployed include: long/short, global macro, managed futures, event driven, tactical absolute return, master limited partnerships, REITs, etc. The allocation to alternative investments may be achieved through liquid strategies, such as separate accounts or mutual funds or through hedge funds. Hedge funds are carried at fair value as determined by the fund manager in good faith. In establishing the fair value of hedge funds, the fund manager takes into consideration information received from the investment administrators, including their financial statements and the fair value established by the fund manager of each respective investment. | |||||||||||||||||||||||||
The following tables summarize the fair value of the assets of the QDBP as of the dates indicated. The fair values were determined by using three broad levels of inputs. See Note 13 for description of these input levels. | |||||||||||||||||||||||||
The fair value of the QDBP assets measured on a recurring basis as of December 31, 2013: | |||||||||||||||||||||||||
(dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,218 | $ | 1,218 | $ | — | $ | — | |||||||||||||||||
Alternative investments* | 9,196 | 5,747 | 3,449 | — | |||||||||||||||||||||
Common stocks | 2,698 | 2,698 | — | — | |||||||||||||||||||||
Equity mutual funds | 26,187 | 26,187 | — | — | |||||||||||||||||||||
Bond mutual funds | 6,274 | 6,274 | — | — | |||||||||||||||||||||
Total assets measured on a recurring basis at fair value | $ | 45,573 | $ | 42,124 | $ | 3,449 | $ | — | |||||||||||||||||
* | Alternative investments include exchange-traded products which are considered Level 1 and hedge fund investments which are considered Level 2. | ||||||||||||||||||||||||
The fair value of the QDBP assets measured on a recurring basis as of December 31, 2012: | |||||||||||||||||||||||||
(dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Cash and cash equivalents | $ | 2,576 | $ | 2,576 | $ | — | $ | — | |||||||||||||||||
Alternative investments* | 5,664 | 2,269 | 3,395 | — | |||||||||||||||||||||
Common stocks | 703 | 703 | — | — | |||||||||||||||||||||
Equity mutual funds | 23,950 | 23,950 | — | — | |||||||||||||||||||||
Bond mutual funds | 7,773 | 7,773 | — | — | |||||||||||||||||||||
Total assets measured on a recurring basis at fair value | $ | 40,666 | $ | 37,271 | $ | 3,395 | $ | — | |||||||||||||||||
F. Cash Flows | |||||||||||||||||||||||||
The following benefit payments, which reflect expected future services, are expected to be paid over the next ten years: | |||||||||||||||||||||||||
(dollars in thousands) | QDBP | SERP I & SERP II | PRBP | ||||||||||||||||||||||
Fiscal year ending | |||||||||||||||||||||||||
2014 | $ | 1,863 | $ | 146 | $ | 117 | |||||||||||||||||||
2015 | $ | 1,948 | $ | 260 | $ | 106 | |||||||||||||||||||
2016 | $ | 1,976 | $ | 258 | $ | 95 | |||||||||||||||||||
2017 | $ | 1,975 | $ | 255 | $ | 84 | |||||||||||||||||||
2018 | $ | 2,029 | $ | 252 | $ | 74 | |||||||||||||||||||
2019-2022 | $ | 10,846 | $ | 1,340 | $ | 240 | |||||||||||||||||||
G. Other Pension and Post Retirement Benefit Information | |||||||||||||||||||||||||
In 2005, the Corporation placed a cap on the future annual benefit payable through the PRBP. This cap is equal to 120% of the 2005 annual benefit. | |||||||||||||||||||||||||
H. Expected Contribution to be Paid in the Next Fiscal Year | |||||||||||||||||||||||||
Based on the status of the Corporation’s QDBP at December 31, 2013, no minimum funding requirement is anticipated for 2014. The 2014 expected contribution for the SERP is $146 thousand. | |||||||||||||||||||||||||
I. Actuarial Losses | |||||||||||||||||||||||||
As indicated in section C of this footnote, the Corporation’s pension plans had cumulative actuarial losses as of December 31, 2013 that will result in an increase in the Corporation’s future pension expense because such losses at each measurement date exceed 10% of the greater of the projected benefit obligation or the market-related value of the plan assets. In accordance with GAAP, net unrecognized gains or losses that exceed that threshold are required to be amortized over the expected service period of active employees, and are included as a component of net pension cost. Amortization of these net actuarial losses has the effect of increasing the Corporation’s pension costs a shown on the table in section D of this footnote. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
Note 16—Accumulated Other Comprehensive Loss | |||||||||||||||||
The following table details the components of accumulated other comprehensive (loss) income for the twelve months ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
(dollars in thousands) | Net Change in | Net Change in | Net Change in | Accumulated | |||||||||||||
Unrealized Gains | Fair Value of | Unfunded | Other | ||||||||||||||
on Available-for- | Derivative | Pension | Comprehensive | ||||||||||||||
Sale Investment | Used for Cash | Liability | Loss | ||||||||||||||
Securities | Flow Hedge | ||||||||||||||||
Balance, December 31, 2010 | $ | 1,054 | $ | — | $ | (7,811 | ) | $ | (6,757 | ) | |||||||
Net change | 738 | — | (5,346 | ) | (4,608 | ) | |||||||||||
Balance, December 31, 2011 | $ | 1,792 | $ | — | $ | (13,157 | ) | $ | (11,365 | ) | |||||||
Balance, December 31, 2011 | $ | 1,792 | $ | — | $ | (13,157 | ) | $ | (11,365 | ) | |||||||
Net change | 1,372 | (23 | ) | (62 | ) | 1,287 | |||||||||||
Balance, December 31, 2012 | $ | 3,164 | $ | (23 | ) | $ | (13,219 | ) | $ | (10,078 | ) | ||||||
Balance, December 31, 2012 | $ | 3,164 | $ | (23 | ) | $ | (13,219 | ) | $ | (10,078 | ) | ||||||
Net change | (4,021 | ) | 766 | 7,768 | 4,513 | ||||||||||||
Balance, December 31, 2013 | $ | (857 | ) | $ | 743 | $ | (5,451 | ) | $ | (5,565 | ) | ||||||
The following tables detail the amounts reclassified from each component of accumulated other comprehensive loss for the twelve month periods ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Amount Reclassified from Accumulated Other | |||||||||||||||||
Comprehensive Loss | |||||||||||||||||
Description of Accumulated Other | For The Twelve Months | Affected Income Statement | |||||||||||||||
Comprehensive Loss Component | Ended December 31, | Category | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Net unrealized gain on investment securities available for sale: | |||||||||||||||||
Realization of loss (gain) on sale of investment securities available for sale | $ | (8 | ) | $ | 1,415 | $ | 1,783 | Net (loss) gain on sale of available for sale investment securities | |||||||||
3 | (495 | ) | (624 | ) | Less: income tax benefit (expense) | ||||||||||||
$ | (5 | ) | $ | 920 | $ | 1,159 | Net of income tax | ||||||||||
Unfunded pension liability: | |||||||||||||||||
Amortization of net loss included in net periodic pension costs* | $ | 1,878 | $ | 1,951 | $ | 1,025 | Employee benefits | ||||||||||
Amortization of prior service cost included in net periodic pension costs* | 31 | 82 | 27 | Employee benefits | |||||||||||||
Amortization of transition obligation included in net periodic pension costs* | — | 26 | 26 | Employee benefits | |||||||||||||
Gain on curtailment of SERP II | (690 | ) | — | — | Net gain on curtailment of nonqualified pension plan | ||||||||||||
1,219 | 2,059 | 1,078 | Total expense before income tax benefit | ||||||||||||||
427 | 721 | 377 | Less: income tax benefit | ||||||||||||||
$ | 792 | $ | 1,338 | $ | 701 | Net of income tax | |||||||||||
* | Accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 15—Pension and Other Post-Retirement Benefit Plans |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
Note 17—Income Taxes | |||||||||||||||||||||||||
A. Components of Net Deferred Tax Asset: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Loan and lease loss reserve | $ | 6,124 | $ | 6,010 | |||||||||||||||||||||
Other reserves | 1,190 | 1,506 | |||||||||||||||||||||||
Net operating loss carry-forward | 1,841 | 2,187 | |||||||||||||||||||||||
Alternative minimum tax credits | 567 | 568 | |||||||||||||||||||||||
Amortizing fair value adjustments, FKF merger | 2,367 | 2,778 | |||||||||||||||||||||||
Unrealized depreciation of available for sale securities | 462 | — | |||||||||||||||||||||||
Defined benefit plans | 4,142 | 8,494 | |||||||||||||||||||||||
Total deferred tax asset | 16,693 | 21,543 | |||||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Other reserves | (219 | ) | (165 | ) | |||||||||||||||||||||
QDBP | (5,721 | ) | (5,800 | ) | |||||||||||||||||||||
Originated MSRs | (1,663 | ) | (1,572 | ) | |||||||||||||||||||||
Unrealized appreciation of derivative used for cash flow hedge | (400 | ) | — | ||||||||||||||||||||||
Unrealized appreciation of available for sale securities | — | (1,703 | ) | ||||||||||||||||||||||
Total deferred tax liability | (8,003 | ) | (9,240 | ) | |||||||||||||||||||||
Total net deferred tax asset | $ | 8,690 | $ | 12,303 | |||||||||||||||||||||
Not included in the table above is an $86 thousand deferred tax asset for state taxes related to net operating losses of our leasing subsidiary as of December 31, 2013, for which we have recorded a 100% valuation allowance. In connection with the May 15, 2012 acquisition of DTC, the Corporation recorded a net deferred tax liability of $1.3 million. | |||||||||||||||||||||||||
B. The provision (benefit) for income taxes consists of the following: | |||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Current | $ | 11,391 | $ | 11,575 | $ | 6,231 | |||||||||||||||||||
Deferred | 1,195 | (505 | ) | 3,310 | |||||||||||||||||||||
Total | $ | 12,586 | $ | 11,070 | $ | 9,541 | |||||||||||||||||||
C. Applicable income taxes differed from the amount derived by applying the statutory federal tax rate to income as follows: | |||||||||||||||||||||||||
(dollars in thousands) | 2013 | Tax | 2012 | Tax | 2011 | Tax | |||||||||||||||||||
Rate | Rate | Rate | |||||||||||||||||||||||
Computed tax expense at statutory federal rate | $ | 12,960 | 35 | % | $ | 11,276 | 35 | % | $ | 10,200 | 35 | % | |||||||||||||
Tax-exempt income | (414 | ) | (1.1 | )% | (382 | ) | (1.2 | )% | (395 | ) | (1.4 | )% | |||||||||||||
Other, net | 40 | 0.1 | % | 176 | 0.5 | % | (264 | ) | (0.9 | )% | |||||||||||||||
Total income tax expense | $ | 12,586 | 34 | % | $ | 11,070 | 34.3 | % | $ | 9,541 | 32.7 | % | |||||||||||||
D. Other Income Tax Information | |||||||||||||||||||||||||
In accordance with the provisions of ASC 740, “Accounting for Uncertainty in Income Taxes”, the Corporation recognizes the financial statement benefit of a tax position only after determining that the Corporation would more likely than not sustain the position following an examination. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon settlement with the relevant tax authority. The Corporation applied these criteria to tax positions for which the statute of limitations remained open. | |||||||||||||||||||||||||
There were no reserves for uncertain tax positions recorded during the twelve months ended December 31, 2013, 2012 or 2011. | |||||||||||||||||||||||||
The Corporation is subject to income taxes in the U.S. federal jurisdiction, and in multiple state jurisdictions. The Corporation is no longer subject to U.S. federal income tax examination by tax authorities for the years before 2010. | |||||||||||||||||||||||||
The Corporation’s policy is to record interest and penalties on uncertain tax positions as income tax expense. No interest or penalties were accrued in 2013. | |||||||||||||||||||||||||
As of December 31, 2013, the Corporation has net operating loss carry-forwards for federal income tax purposes of $5.3 million, related to the FKF merger, which are available to offset future federal taxable income through 2030. In addition, the Corporation has alternative minimum tax credits of $567 thousand, which are available to reduce future federal regular income taxes over an indefinite period. The Corporation has determined that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax asset related to these amounts. | |||||||||||||||||||||||||
As a result of the July 1, 2010 merger with FKF, the Corporation succeeded to certain tax bad debt reserves that existed at FKF as of June 30, 2010. As of December 31, 2013, the Corporation had unrecognized deferred income taxes of $563 thousand with respect to these reserves. These reserves could be recognized as taxable income and create a current and/or deferred tax liability at the income tax rates then in effect if one of the following conditions occurs: (1) the Bank’s retained earnings represented by this reserve are used for distributions, in liquidation, or for any other purpose other than to absorb losses from bad debts; (2) the Bank fails to qualify as a bank, as provided by the Internal Revenue Code; or (3) there is a change in federal tax law. |
Stock_Based_Compensation
Stock -Based Compensation | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Stock -Based Compensation | ' | ||||||||||||||||||||||||||||||||||||
Note 18—Stock –Based Compensation | |||||||||||||||||||||||||||||||||||||
A. General Information | |||||||||||||||||||||||||||||||||||||
The Corporation permits the issuance of stock options, dividend equivalents, performance stock awards, stock appreciation rights and restricted stock awards to employees and directors of the Corporation under several plans. The performance awards and restricted awards may be in the form of stock awards or stock units. The only difference between a stock award and a stock unit is that for a stock award, shares of restricted stock are issued in the name of the grantee, whereas a stock unit constitutes a promise to issue shares of stock upon vesting. The accounting for awards and units is identical. The terms and conditions of awards under the plans are determined by the Corporation’s Compensation Committee. | |||||||||||||||||||||||||||||||||||||
Prior to April 25, 2007, all shares authorized for grant as stock-based compensation were limited to grants of stock options. On April 25, 2007, the shareholders approved the Corporation’s “2007 Long-Term Incentive Plan” (the “2007 LTIP”) under which a total of 428,996 shares of the Corporation’s common stock were made available for award grants. On April 28, 2010, the shareholders approved the Corporation’s “2010 Long Term Incentive Plan” (the “2010 LTIP”) under which a total of 445,002 shares of the Corporation’s common stock were made available for award grants. | |||||||||||||||||||||||||||||||||||||
The equity awards granted under the 2007 and 2010 LTIPs were authorized to be in the form of, among others, options to purchase the Corporation’s common stock, restricted stock awards or units (“RSA“s or “RSU“s) and performance stock awards or units (“PSA“s or “PSU“s). | |||||||||||||||||||||||||||||||||||||
RSAs and RSUs have a restriction based on the passage of time and may also have a restriction based on a non-market-related performance criteria. The fair value of the RSAs and RSUs is based on the closing price on the day preceding the date of the grant. | |||||||||||||||||||||||||||||||||||||
The PSAs and PSUs also have a restriction based on the passage of time, but also have a restriction based on performance criteria related to the Corporation’s total shareholder return relative to the performance of the community bank index for the respective period. The amount of PSAs or PSUs earned will not exceed 100% of the PSAs or PSUs awarded. The fair value of the PSAs and PSUs is calculated using the Monte Carlo Simulation method. | |||||||||||||||||||||||||||||||||||||
In connection with the July 2010 FKF merger, 21,133 fully vested options which had been granted to former FKF employees were assumed by the Corporation. | |||||||||||||||||||||||||||||||||||||
The following table summarizes the remaining shares authorized to be granted for options, RSAs and PSAs: | |||||||||||||||||||||||||||||||||||||
Shares | |||||||||||||||||||||||||||||||||||||
Authorized | |||||||||||||||||||||||||||||||||||||
for Grant | |||||||||||||||||||||||||||||||||||||
Balance, December 31, 2010 | 425,884 | ||||||||||||||||||||||||||||||||||||
RSAs granted—four year cliff-vesting | (15,648 | ) | |||||||||||||||||||||||||||||||||||
RSAs granted—three year cliff-vesting | (14,093 | ) | |||||||||||||||||||||||||||||||||||
PSAs granted—three year cliff-vesting | (60,238 | ) | |||||||||||||||||||||||||||||||||||
Unexercised options expired | 19,330 | ||||||||||||||||||||||||||||||||||||
Unexercised options cancelled | 19,464 | ||||||||||||||||||||||||||||||||||||
PSAs forfeited | 2,797 | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | 377,496 | ||||||||||||||||||||||||||||||||||||
RSAs granted—three year cliff-vesting | (31,948 | ) | |||||||||||||||||||||||||||||||||||
PSAs granted—three year cliff-vesting | (73,217 | ) | |||||||||||||||||||||||||||||||||||
Unexercised options expired | 9,883 | ||||||||||||||||||||||||||||||||||||
Unexercised options cancelled | 5,755 | ||||||||||||||||||||||||||||||||||||
PSAs forfeited | 4,812 | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | 292,781 | ||||||||||||||||||||||||||||||||||||
RSAs or RSUs granted—three year cliff-vesting | (6,665 | ) | |||||||||||||||||||||||||||||||||||
PSAs or PSUs granted—three year cliff-vesting | (75,367 | ) | |||||||||||||||||||||||||||||||||||
Unexercised options expired | 250 | ||||||||||||||||||||||||||||||||||||
Unexercised options cancelled | 650 | ||||||||||||||||||||||||||||||||||||
RSAs or RSUs forfeited | 3,681 | ||||||||||||||||||||||||||||||||||||
PSAs or PSUs forfeited | 1,575 | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2013 | 216,905 | ||||||||||||||||||||||||||||||||||||
B. Fair Value of Options Granted | |||||||||||||||||||||||||||||||||||||
The fair value of each option granted is estimated on the date of the grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants issued during: | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Expected dividend yield | 2.6 | % | N/A | N/A | |||||||||||||||||||||||||||||||||
Expected volatility of Corporation’s stock | 24 | % | N/A | N/A | |||||||||||||||||||||||||||||||||
Risk-free interest rate | 3.7 | % | N/A | N/A | |||||||||||||||||||||||||||||||||
Expected life in years | 7 | N/A | N/A | ||||||||||||||||||||||||||||||||||
Weighted average fair value of options granted | $ | 4.83 | N/A | N/A | |||||||||||||||||||||||||||||||||
The expected dividend yield is based on the company’s annual dividend amount as a percentage of the average stock price at the time of the grant. Expected life is equal to the mid-point of the average time to vest and the contractual term. Expected volatility of the Corporation’s stock is based on the historic volatility of the Corporation’s stock price. The risk-free interest rate is based on the zero-coupon U.S. Treasury interest rate ranging from one month to ten years and a period commensurate with the expected life of the option. | |||||||||||||||||||||||||||||||||||||
C. Other Stock Option Information—The following table provides information about options outstanding: | |||||||||||||||||||||||||||||||||||||
For the Twelve Months Ended December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Shares | Weighted | Weighted | Shares | Weighted | Weighted | Shares | Weighted | Weighted | |||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||||||||
Exercise | Grant Date | Exercise | Grant Date | Exercise | Grant Date | ||||||||||||||||||||||||||||||||
Price | Fair Value | Price | Fair Value | Price | Fair Value | ||||||||||||||||||||||||||||||||
Options outstanding, beginning of period | 783,476 | $ | 20.4 | $ | 4.62 | 876,470 | $ | 20.17 | $ | 4.49 | 993,710 | $ | 19.82 | $ | 4.44 | ||||||||||||||||||||||
Granted | 12,225 | $ | 21.28 | $ | 4.83 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Forfeited | (650 | ) | $ | 19.65 | $ | 4.62 | (5,755 | ) | $ | 20.56 | $ | 4.74 | (16,320 | ) | $ | 20.94 | $ | 4.79 | |||||||||||||||||||
Expired | (250 | ) | $ | 22 | $ | 4.9 | (9,883 | ) | $ | 21.93 | $ | 5.01 | (32,330 | ) | $ | 21.87 | $ | 5.04 | |||||||||||||||||||
Exercised | (203,715 | ) | $ | 19.49 | $ | 4.39 | (77,356 | ) | $ | 17.6 | $ | 3.69 | (68,590 | ) | $ | 14.08 | $ | 2.79 | |||||||||||||||||||
Options outstanding, end of period | 591,086 | $ | 20.73 | $ | 4.7 | 783,476 | $ | 20.4 | $ | 4.62 | 876,470 | $ | 20.17 | $ | 4.49 | ||||||||||||||||||||||
The following table provides information related to options as of December 31, 2013: | |||||||||||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||||||||||||
Range of Exercise | Options | Remaining | Shares | Remaining | Weighted | ||||||||||||||||||||||||||||||||
Prices | Outstanding | Contractual | Exercisable | Contractual | Average | ||||||||||||||||||||||||||||||||
Life | Life | Exercise | |||||||||||||||||||||||||||||||||||
Price* | |||||||||||||||||||||||||||||||||||||
$10.36 to $18.59 | 140,277 | 5.24 yrs | 110,131 | 5.24 yrs | $ | 18.09 | |||||||||||||||||||||||||||||||
$18.60 to $19.69 | 111,000 | 1.35 yrs | 111,000 | 1.35 yrs | $ | 18.91 | |||||||||||||||||||||||||||||||
$19.70 to $21.48 | 121,300 | 1.51 yrs | 121,300 | 1.51 yrs | $ | 21.05 | |||||||||||||||||||||||||||||||
$21.49 to $22.03 | 101,745 | 3.42 yrs | 101,745 | 3.42 yrs | $ | 21.99 | |||||||||||||||||||||||||||||||
$22.04 to $23.97 | 9,000 | 2.26 yrs | 9,000 | 2.26 yrs | $ | 23 | |||||||||||||||||||||||||||||||
$23.98 to $24.27 | 107,764 | 4.27 yrs | 107,764 | 4.27 yrs | $ | 24.27 | |||||||||||||||||||||||||||||||
591,086 | 3.21 yrs | 560,940 | 3.10 yrs | $ | 20.87 | ||||||||||||||||||||||||||||||||
* | price of exercisable options | ||||||||||||||||||||||||||||||||||||
The following table provides information about unvested options: | |||||||||||||||||||||||||||||||||||||
For the Twelve Months Ended December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||||||||||||||
Unvested options, beginning of period | 80,756 | $ | 4.65 | 158,515 | $ | 4.73 | 249,574 | $ | 4.76 | ||||||||||||||||||||||||||||
Granted | 12,225 | $ | 4.83 | — | — | — | — | ||||||||||||||||||||||||||||||
Vested | (62,185 | ) | $ | 4.8 | (72,004 | ) | $ | 4.82 | (74,739 | ) | $ | 4.82 | |||||||||||||||||||||||||
Forfeited | (650 | ) | $ | 4.62 | (5,755 | ) | $ | 4.74 | (16,320 | ) | $ | 4.79 | |||||||||||||||||||||||||
Unvested options, end of period | 30,146 | $ | 4.42 | 80,756 | $ | 4.65 | 158,515 | $ | 4.73 | ||||||||||||||||||||||||||||
Proceeds, related tax benefits realized from options exercised and intrinsic value of options exercised were as follows: | |||||||||||||||||||||||||||||||||||||
For the Twelve Months Ended | |||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Proceeds from strike price of value of options exercised | $ | 3,970 | $ | 1,362 | $ | 966 | |||||||||||||||||||||||||||||||
Related tax benefit recognized | 376 | 100 | 141 | ||||||||||||||||||||||||||||||||||
Proceeds of options exercised | $ | 4,346 | $ | 1,462 | $ | 1,107 | |||||||||||||||||||||||||||||||
Intrinsic value of options exercised | $ | 1,215 | $ | 269 | $ | 444 | |||||||||||||||||||||||||||||||
The following table provides information about options outstanding and exercisable options: | |||||||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2012 | |||||||||||||||||||||||||||||||||||
Options | Exercisable | Options | Exercisable | Options | Exercisable | ||||||||||||||||||||||||||||||||
Outstanding | Options | Outstanding | Options | Outstanding | Options | ||||||||||||||||||||||||||||||||
Number | 591,086 | 560,940 | 783,476 | 702,720 | 876,470 | 717,955 | |||||||||||||||||||||||||||||||
Weighted average exercise price | $ | 20.73 | $ | 20.87 | $ | 20.4 | $ | 20.46 | $ | 20.17 | $ | 20.1 | |||||||||||||||||||||||||
Aggregate intrinsic value | $ | 5,583,266 | $ | 5,224,227 | $ | 1,691,778 | $ | 1,455,766 | $ | 549,495 | $ | 437,549 | |||||||||||||||||||||||||
Weighted average contractual term | 3.2 yrs | 3.1 yrs | 3.6 yrs | 3.3 yrs | 4.3 yrs | 3.7 yrs | |||||||||||||||||||||||||||||||
For the twelve months ended December 31, 2013, the Corporation recognized $179 thousand of expense related to stock options. As of December 31, 2013, the unamortized stock based compensation expense on stock options was $64 thousand which will be recognized over the next 8 months. | |||||||||||||||||||||||||||||||||||||
D. Restricted Stock and Performance Stock Awards and Units | |||||||||||||||||||||||||||||||||||||
The Corporation has granted RSAs, PSAs and PSUs under the 2007 LTIP and 2010 LTIP. | |||||||||||||||||||||||||||||||||||||
RSAs | |||||||||||||||||||||||||||||||||||||
The compensation expense for the RSAs is measured based on the market price of the stock on the day prior to the grant date and is recognized on a straight line basis over the vesting period. | |||||||||||||||||||||||||||||||||||||
For the twelve months ended December 31, 2013, the Corporation recognized $322 thousand of expense related to the Corporation’s RSAs. As of December 31, 2013, there was $475 thousand of unrecognized compensation cost related to RSAs. This cost will be recognized over a weighted average period of 1.7 years. | |||||||||||||||||||||||||||||||||||||
The following table details the RSAs for the twelve month periods ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||||||||||||||
Twelve Months Ended | Twelve Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | December 31,2011 | |||||||||||||||||||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||||||||||||||||||
Grant Date | Grant Date | Grant | |||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | Date Fair | |||||||||||||||||||||||||||||||||||
Value | |||||||||||||||||||||||||||||||||||||
Beginning balance | 60,287 | $ | 19.05 | 38,681 | $ | 18.06 | 11,920 | $ | 16.78 | ||||||||||||||||||||||||||||
Granted | 6,665 | $ | 22.5 | 31,948 | $ | 20.41 | 29,741 | $ | 18.37 | ||||||||||||||||||||||||||||
Vested | (9,115 | ) | $ | 19.2 | (10,342 | ) | $ | 19.34 | (2,980 | ) | $ | 16.78 | |||||||||||||||||||||||||
Forfeited | (3,681 | ) | $ | 20.38 | — | — | — | — | |||||||||||||||||||||||||||||
Ending balance | 54,156 | $ | 19.36 | 60,287 | $ | 19.05 | 38,681 | $ | 18.01 | ||||||||||||||||||||||||||||
PSAs and PSUs | |||||||||||||||||||||||||||||||||||||
The compensation expense for PSAs and PSUs is measured based on their grant date fair value as calculated using the Monte Carlo Simulation and is recognized on a straight-line basis over the vesting period. Related to the 75,367 PSAs granted during the twelve months ended December 31, 2013, the Monte Carlo Simulation used various assumptions that include expected volatility of 27.97%, a risk free rate of return of 0.73% and a correlation co-efficient of 0.7479%. | |||||||||||||||||||||||||||||||||||||
The Corporation recognized $503 thousand of expense related to the PSAs for the twelve months ended December 31, 2013. As of December 31, 2013, there was $1.5 million of unrecognized compensation cost related to PSAs. This cost will be recognized over a weighted average period of 2.2 years. | |||||||||||||||||||||||||||||||||||||
The following table details the PSAs for the twelve month periods ending December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||||||||||||||
Twelve Months Ended | Twelve Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||||||||||||||||||||||||||
Number of | Weighted | Number | Weighted | Number of | Weighted | ||||||||||||||||||||||||||||||||
Shares | Average | of | Average | Shares | Average | ||||||||||||||||||||||||||||||||
Grant Date Fair | Shares | Grant Date Fair | Grant Date Fair | ||||||||||||||||||||||||||||||||||
Value | Value | Value | |||||||||||||||||||||||||||||||||||
Beginning balance | 186,113 | $ | 10.62 | 117,708 | $ | 9.86 | 60,267 | $ | 9.64 | ||||||||||||||||||||||||||||
Granted | 75,367 | $ | 13.38 | 73,217 | $ | 11.8 | 60,238 | $ | 10.07 | ||||||||||||||||||||||||||||
Vested | (54,925 | ) | $ | 9.64 | — | — | — | — | |||||||||||||||||||||||||||||
Forfeited | (1,575 | ) | $ | 10.77 | (4,812 | ) | $ | 9.88 | (2,797 | ) | $ | 9.64 | |||||||||||||||||||||||||
Ending balance | 204,980 | $ | 11.9 | 186,113 | $ | 10.62 | 117,708 | $ | 9.86 | ||||||||||||||||||||||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share | ' | ||||||||||||
Note 19—Earnings Per Share | |||||||||||||
The calculation of basic earnings per share and diluted earnings per share is presented below: | |||||||||||||
(dollars in thousands, | Year Ended December 31, | ||||||||||||
except per share data) | 2013 | 2012 | 2011 | ||||||||||
Numerator—Net income available to common shareholders | $ | 24,444 | $ | 21,147 | $ | 19,602 | |||||||
Denominator for basic earnings per share – Weighted average shares outstanding* | 13,311,215 | 13,090,110 | 12,659,824 | ||||||||||
Effect of dilutive potential common shares | 260,395 | 151,736 | 82,313 | ||||||||||
Denominator for diluted earnings per share – Adjusted weighted average shares outstanding | 13,571,610 | 13,241,846 | 12,742,137 | ||||||||||
Basic earnings per share | $ | 1.84 | $ | 1.62 | $ | 1.55 | |||||||
Diluted earnings per share | $ | 1.8 | $ | 1.6 | $ | 1.54 | |||||||
Antidilutive shares excluded from computation of average dilutive earnings per share | — | 848,477 | 941,005 | ||||||||||
* | excludes restricted stock | ||||||||||||
All weighted average shares, actual shares and per share information in the financial statements have been adjusted retroactively for the effect of stock dividends and splits. See Note 1-Q – “Summary of Significant Accounting Policies: Earnings Per Common Share” for a discussion on the calculation of earnings per share. |
Other_Operating_Income
Other Operating Income | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Operating Income | ' | ||||||||||||
Note 20—Other Operating Income | |||||||||||||
Components of other operating income for the indicated years ended December 31 include: | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Merchant interchange fees | $ | 814 | $ | 665 | $ | 559 | |||||||
Commissions and fees | 578 | 510 | 468 | ||||||||||
Safe deposit box rentals | 387 | 398 | 407 | ||||||||||
Insurance commissions | 651 | 444 | 403 | ||||||||||
Other investment income | 348 | 349 | 153 | ||||||||||
Title insurance income | 192 | 272 | 119 | ||||||||||
Rent income | 202 | 162 | 116 | ||||||||||
Miscellaneous other income | 1,542 | 1,043 | 1,181 | ||||||||||
Other operating income | $ | 4,714 | $ | 3,843 | $ | 3,406 | |||||||
Other_Operating_Expense
Other Operating Expense | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Operating Expense | ' | ||||||||||||
Note 21—Other Operating Expense | |||||||||||||
Components of other operating expense for the indicated years ended December 31 include: | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Information technology | $ | 2,876 | $ | 2,060 | $ | 1,518 | |||||||
Loan processing | 966 | 1,485 | 1,114 | ||||||||||
Other taxes | 1,007 | 1,164 | 973 | ||||||||||
Temporary help and recruiting | 1,624 | 1,031 | 532 | ||||||||||
Telephone and data lines | 1,378 | 652 | 514 | ||||||||||
Travel and entertainment | 630 | 567 | 507 | ||||||||||
Stationary and supplies | 508 | 516 | 496 | ||||||||||
Postage | 515 | 433 | 415 | ||||||||||
Director fees | 452 | 409 | 359 | ||||||||||
Outsourced services | 457 | 355 | 180 | ||||||||||
Portfolio maintenance | 366 | 266 | 313 | ||||||||||
Dues and subscriptions | 394 | 326 | 287 | ||||||||||
Contributions | 355 | 301 | 279 | ||||||||||
Insurance | 689 | 402 | 277 | ||||||||||
Deferred compensation expense | 906 | 271 | 203 | ||||||||||
Miscellaneous other expense | 1,637 | 1,962 | 1,879 | ||||||||||
Other operating expense | $ | 14,760 | $ | 12,200 | $ | 9,846 | |||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions | ' | ||||||||
Note 22—Related Party Transactions | |||||||||
In the ordinary course of business, the Bank granted loans to principal officers, directors and their affiliates. Loan activity during 2013 and 2012 was as follows: | |||||||||
Following is a summary of these transactions: | |||||||||
(dollars in thousands) | 2013 | 2012 | |||||||
Balance, January 1 | $ | 2,884 | $ | 6,004 | |||||
Additions | 200 | 5 | |||||||
Amounts collected | (52 | ) | (3,125 | ) | |||||
Balance, December 31 | $ | 3,032 | $ | 2,884 | |||||
Related party deposits amounted to $2.0 million and $1.7 million at December 31, 2013 and 2012, respectively. |
Financial_Instruments_with_Off
Financial Instruments with Off-Balance Sheet Risk, Contingencies and Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2013 | |
Financial Instruments with Off-Balance Sheet Risk, Contingencies and Concentration of Credit Risk | ' |
Note 23—Financial Instruments with Off-Balance Sheet Risk, Contingencies and Concentration of Credit Risk | |
Off-Balance Sheet Risk | |
The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated statements of financial condition. The contractual amounts of those instruments reflect the extent of involvement the Corporation has in particular classes of financial instruments. | |
The Corporation’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument of commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet financial instruments. | |
Commitments to extend credit, which include unused lines of credit and unfunded commitments to originate loans, are agreements to lend to a customer as long as there is no violation of any condition established in the agreement. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Some of the commitments are expected to expire without being drawn upon, and the total commitment amounts do not necessarily represent future cash requirements. Total commitments to extend credit at December 31, 2013 were $405.3 million. The Corporation evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on a credit evaluation of the counterparty. Collateral varies but may include accounts receivable, marketable securities, inventory, property, plant and equipment, residential real estate, and income-producing commercial properties. | |
Standby letters of credit are conditional commitments issued by the Bank to a customer for a third party. Such standby letters of credits are issued to support private borrowing arrangements. The credit risk involved in issuing standby letters of credit is similar to that involved in extending loan facilities to customers. The collateral varies, but may include accounts receivable, marketable securities, inventory, property, plant and equipment, and residential real estate for those commitments for which collateral is deemed necessary. The Corporation’s obligation under standby letters of credit as of December 31, 2013 amounted to $21.2 million. There were no outstanding bankers’ acceptances as of December 31, 2013. | |
Contingencies | |
Legal Matters | |
In the ordinary course of business, the Corporation is subject to litigation, claims, and assessments that involve claims for monetary relief. Some of these are covered by insurance. Based upon information presently available to the Corporation and its counsel, it is the Corporation’s opinion that any legal and financial responsibility arising from such claims will not have a material, adverse effect on its results of operations, financial condition or capital. | |
Indemnifications | |
In general, the Corporation does not sell loans with recourse, except to the extent that it arises from standard loan-sale contract provisions. These provisions cover violations of representations and warranties and, under certain circumstances, first payment default by borrowers. These indemnifications may include the repurchase of loans by the Corporation, and are considered customary provisions in the secondary market for conforming mortgage loan sales. For the twelve months ended December 31, 2013, the Corporation settled two make-whole requests from the secondary market totaling $278 thousand. For the twelve months ended December 31, 2012 and 2011, there were no make-whole requests settled. | |
Concentrations of Credit Risk | |
The Corporation has a material portion of its loans in real estate related loans. A predominant percentage of the Corporation’s real estate exposure, both commercial and residential, is in the Corporation’s primary trade area which includes portions of Delaware, Chester, Montgomery and Philadelphia counties in Southeastern Pennsylvania. The Corporation is aware of this concentration and attempts to mitigate this risk to the extent possible in many ways, including the underwriting and assessment of borrower’s capacity to repay. See Note 5 – “Loans and Leases” for additional information. | |
As of December 31, 2013, the Corporation had no loans sold with recourse outstanding. |
Dividend_Restrictions
Dividend Restrictions | 12 Months Ended |
Dec. 31, 2013 | |
Dividend Restrictions | ' |
Note 24—Dividend Restrictions | |
The Bank is subject to the Pennsylvania Banking Code of 1965 (the “Code”), as amended, and is restricted in the amount of dividends that can be paid to its sole shareholder, the Corporation. The Code restricts the payment of dividends by the Bank to the amount of its net income during the current calendar year and the retained net income of the prior two calendar years, unless the dividend has been approved by the Board of Governors of the Federal Reserve System. The total retained net income for the years ended December 31, 2012 and 2013 was $24.8 million. Accordingly, the dividend payable by the Bank to the Corporation is limited to $24.8 million plus net income to be earned in 2014. However, the amount of dividends paid by the Bank may not reduce capital levels below levels that would cause the Bank to be considered less than adequately capitalized as detailed in Note 25 – “Regulatory Capital Requirements”. |
Regulatory_Capital_Requirement
Regulatory Capital Requirements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Regulatory Capital Requirements | ' | ||||||||||||||||
Note 25—Regulatory Capital Requirements | |||||||||||||||||
A. General Regulatory Capital Information | |||||||||||||||||
Both the Corporation and the Bank are subject to various regulatory capital requirements, administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if taken, could have a direct material effect on the Corporation’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. | |||||||||||||||||
B. S-3 Shelf Registration Statement and Offerings Thereunder | |||||||||||||||||
In April 2012, the Corporation filed a shelf registration statement (the “Shelf Registration Statement”) to replace its 2009 Shelf Registration Statement, which was set to expire in June 2012. This new Shelf Registration Statement allows the Corporation to raise additional capital through offers and sales of registered securities consisting of common stock, debt securities, warrants to purchase common stock, stock purchase contracts and units or units consisting of any combination of the foregoing securities. Using the prospectus in the Shelf Registration Statement, together with applicable prospectus supplements, the Corporation may sell, from time to time, in one or more offerings, such securities in a dollar amount up to $150,000,000, in the aggregate. | |||||||||||||||||
The Corporation has in place under its Shelf Registration Statement a Dividend Reinvestment and Stock Purchase Plan (the “Plan”), which was amended and restated on April 27, 2012, primarily to increase the number of shares which can be issued by the Corporation from 850,000 to 1,500,000 shares of registered common stock. The Plan allows for the grant of a request for waiver (“RFW”) above the Plan’s maximum investment of $120 thousand per account per year. An RFW is granted based on a variety of factors, including the Corporation’s current and projected capital needs, prevailing market prices of the Corporation’s common stock and general economic and market conditions. | |||||||||||||||||
The Plan is intended to allow both existing shareholders and new investors to easily and conveniently increase their investment in the Corporation without incurring many of the fees and commissions normally associated with brokerage transactions. For the twelve months ended December 31, 2013, the Corporation issued 7,455 shares and raised $176 thousand through the Plan. | |||||||||||||||||
C. Shares Issued in Mergers and Acquisitions | |||||||||||||||||
In connection with the acquisition of PWMG, the Corporation issued 322,101 common shares, valued at $6.7 million, to former shareholders of PWMG. These shares were registered on an S-3 registration statement filed by the Corporation in September 2011. | |||||||||||||||||
In connection with the merger with FKF, the Corporation issued 1,630,053 common shares, valued at $26.5 million, to former shareholders of FKF. These shares were registered on an S-4 registration statement filed by the Corporation in January 2010. | |||||||||||||||||
D. Regulatory Capital Ratios | |||||||||||||||||
As set forth in the following table, quantitative measures have been established to ensure capital adequacy ratios required of both the Corporation and the Bank. Both the Corporation’s and the Bank’s Tier II capital ratios are calculated by adding back a portion of the loan loss reserve to the Tier I capital. The Corporation believes that as of December 31, 2013 and 2012, the Corporation and the Bank had met all capital adequacy requirements to which they were subject. Federal banking regulators have defined specific capital categories, and categories range from a best of “well capitalized” to a worst of “critically under-capitalized.” Both the Corporation and the Bank were classified as “well capitalized” as of December 31, 2013 and 2012. | |||||||||||||||||
The Corporation’s and the Bank’s actual capital amounts and ratios as of December 31, 2013 and 2012 are presented in the following table: | |||||||||||||||||
Actual | Minimum | ||||||||||||||||
to be Well | |||||||||||||||||
Capitalized | |||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | |||||||||||||
December 31, 2013 | |||||||||||||||||
Total (Tier II) capital to risk weighted assets: | |||||||||||||||||
Corporation | $ | 200,667 | 12.55 | % | $ | 159,924 | 10 | % | |||||||||
Bank | $ | 197,463 | 12.38 | % | $ | 159,493 | 10 | % | |||||||||
Tier I capital to risk weighted assets: | |||||||||||||||||
Corporation | $ | 185,022 | 11.57 | % | $ | 95,954 | 6 | % | |||||||||
Bank | $ | 181,818 | 11.4 | % | $ | 95,696 | 6 | % | |||||||||
Tier I capital to average assets: | |||||||||||||||||
Corporation | $ | 185,022 | 9.29 | % | $ | 99,543 | 5 | % | |||||||||
Bank | $ | 181,818 | 9.14 | % | $ | 99,424 | 5 | % | |||||||||
December 31, 2012 | |||||||||||||||||
Total (Tier II) capital to risk weighted assets: | |||||||||||||||||
Corporation | $ | 174,885 | 12.02 | % | $ | 145,528 | 10 | % | |||||||||
Bank | $ | 176,985 | 12.2 | % | $ | 145,124 | 10 | % | |||||||||
Tier I capital to risk weighted assets: | |||||||||||||||||
Corporation | $ | 160,425 | 11.02 | % | $ | 87,317 | 6 | % | |||||||||
Bank | $ | 162,525 | 11.2 | % | $ | 87,074 | 6 | % | |||||||||
Tier I capital to average assets: | |||||||||||||||||
Corporation | $ | 160,425 | 8.72 | % | $ | 91,989 | 5 | % | |||||||||
Bank | $ | 162,525 | 8.84 | % | $ | 91,940 | 5 | % |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Selected Quarterly Financial Data | ' | ||||||||||||||||
Note 26—Selected Quarterly Financial Data (Unaudited) | |||||||||||||||||
2013 | |||||||||||||||||
(dollars in thousands, except per share data) | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||||
Interest income | $ | 18,855 | $ | 19,217 | $ | 19,820 | $ | 20,525 | |||||||||
Interest expense | 1,446 | 1,294 | 1,287 | 1,400 | |||||||||||||
Net interest income | 17,409 | 17,923 | 18,533 | 19,125 | |||||||||||||
Provision for loan and lease losses | 804 | 1,000 | 959 | 812 | |||||||||||||
Other income | 11,790 | 12,943 | 11,387 | 12,235 | |||||||||||||
Other expense | 20,235 | 20,524 | 19,323 | 20,658 | |||||||||||||
Income before income taxes | 8,160 | 9,342 | 9,638 | 9,890 | |||||||||||||
Tax expense | 2,840 | 3,090 | 3,237 | 3,419 | |||||||||||||
Net income | $ | 5,320 | $ | 6,252 | $ | 6,401 | $ | 6,471 | |||||||||
Basic earnings per common share* | $ | 0.4 | $ | 0.47 | $ | 0.48 | $ | 0.48 | |||||||||
Diluted earnings per common share* | $ | 0.4 | $ | 0.46 | $ | 0.47 | $ | 0.47 | |||||||||
Dividend declared | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.18 | |||||||||
2012 | |||||||||||||||||
(dollars in thousands, except per share data) | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||||
Interest income | $ | 18,372 | $ | 18,188 | $ | 18,081 | $ | 18,682 | |||||||||
Interest expense | 2,387 | 2,285 | 2,130 | 1,786 | |||||||||||||
Net interest income | 15,985 | 15,903 | 15,951 | 16,896 | |||||||||||||
Provision for loan and lease losses | 1,000 | 1,003 | 1,000 | 1,000 | |||||||||||||
Other income | 9,587 | 11,381 | 12,248 | 13,170 | |||||||||||||
Other expense | 16,795 | 18,128 | 18,889 | 21,089 | |||||||||||||
Income (loss) before income taxes | 7,777 | 8,153 | 8,310 | 7,977 | |||||||||||||
Tax expense (benefit) | 2,704 | 2,808 | 2,885 | 2,673 | |||||||||||||
Net income (loss) | $ | 5,073 | $ | 5,345 | $ | 5,425 | $ | 5,304 | |||||||||
Basic earnings per common share* | $ | 0.39 | $ | 0.41 | $ | 0.41 | $ | 0.4 | |||||||||
Diluted earnings per common share* | $ | 0.39 | $ | 0.4 | $ | 0.41 | $ | 0.4 | |||||||||
Dividend declared | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | |||||||||
* | Earnings per share is computed independently for each period shown. As a result, the sum of the quarters may not equal the total earnings per share for the year. |
Parent_CompanyOnly_Financial_S
Parent Company-Only Financial Statements | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Parent Company-Only Financial Statements | ' | ||||||||||||
Note 27—Parent Company-Only Financial Statements | |||||||||||||
The condensed financial statements of the Corporation (parent company only) are presented below. These statements should be read in conjunction with the Notes to the Consolidated Financial Statements. | |||||||||||||
A. Condensed Balance Sheets | |||||||||||||
December 31, | |||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||
Assets: | |||||||||||||
Cash | $ | 5,435 | $ | 5,392 | |||||||||
Investment securities | 401 | 99 | |||||||||||
Investments in subsidiaries, as equity in net assets | 227,245 | 206,496 | |||||||||||
Premises and equipment, net | 2,582 | 2,681 | |||||||||||
Goodwill | 245 | 245 | |||||||||||
Other assets | 2,164 | 896 | |||||||||||
Total assets | $ | 238,072 | $ | 215,809 | |||||||||
Liabilities and shareholders’ equity: | |||||||||||||
Borrowings | $ | 7,050 | $ | 9,400 | |||||||||
Other liabilities | 1,124 | 2,845 | |||||||||||
Total liabilities | $ | 8,174 | $ | 12,245 | |||||||||
Common stock, par value $1, authorized 100,000,000 shares issued 16,596,869 shares and 16,390,608 shares as of December 31, 2013 and 2012, respectively, and outstanding 13,650,354 shares and 13,412,690 shares as of December 31, 2013 and 2012, respectively | $ | 16,597 | $ | 16,390 | |||||||||
Paid-in capital in excess of par value | 95,673 | 89,137 | |||||||||||
Less common stock in treasury, at cost—2,946,515 shares and 2,977,918 shares as of December 31, 2013 and 2012, respectively | (30,764 | ) | (30,745 | ) | |||||||||
Accumulated other comprehensive loss, net of deferred income taxes benefit | (5,565 | ) | (10,078 | ) | |||||||||
Retained earnings | 153,957 | 138,860 | |||||||||||
Total shareholders’ equity | $ | 229,898 | $ | 203,564 | |||||||||
Total liabilities and shareholders’ equity | $ | 238,072 | $ | 215,809 | |||||||||
B. Condensed Statements of Income | |||||||||||||
Twelve Months Ended December 31, | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Dividends from subsidiaries | $ | 8,165 | $ | 13,075 | $ | 9,650 | |||||||
Interest and other income | 2,062 | 2,672 | 2,646 | ||||||||||
Total operating income | 10,227 | 15,747 | 12,296 | ||||||||||
Expenses | 1,996 | 2,410 | 2,678 | ||||||||||
Income before equity in undistributed income of subsidiaries | 8,231 | 13,337 | 9,618 | ||||||||||
Equity in undistributed income of subsidiaries | 16,236 | 7,761 | 9,973 | ||||||||||
Income before income taxes | 24,467 | 21,098 | 19,591 | ||||||||||
Income tax expense (benefit) | 23 | (49 | ) | (11 | ) | ||||||||
Net income | $ | 24,444 | $ | 21,147 | $ | 19,602 | |||||||
C. Condensed Statements of Cash Flows | |||||||||||||
Twelve Months Ended December 31, | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Operating activities: | |||||||||||||
Net Income | $ | 24,444 | $ | 21,147 | $ | 19,602 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Equity in undistributed income of subsidiaries | (16,236 | ) | (7,761 | ) | (9,973 | ) | |||||||
Depreciation and amortization | 98 | 98 | 105 | ||||||||||
Net gain on sale of available for sale securities | — | — | (38 | ) | |||||||||
Stock-based compensation cost | 1,004 | 1,283 | 876 | ||||||||||
Net accretion of fair value adjustments | — | — | (55 | ) | |||||||||
Other, net | (1,138 | ) | (239 | ) | 360 | ||||||||
Net cash provided by operating activities | 8,172 | 14,528 | 10,877 | ||||||||||
Investing Activities: | |||||||||||||
Proceeds from sale of available for sale securities | — | — | 99 | ||||||||||
Acquisitions, net of cash acquired | — | (9,278 | ) | (13,367 | ) | ||||||||
Sale of subsidiary | — | 10,500 | 18,411 | ||||||||||
Investment in subsidiaries | — | (4,800 | ) | (17,200 | ) | ||||||||
Net cash used by investing activities | — | (3,578 | ) | (12,057 | ) | ||||||||
Financing activities: | |||||||||||||
Dividends paid | (9,297 | ) | (8,529 | ) | (7,679 | ) | |||||||
Change in other borrowings | (2,350 | ) | (4,291 | ) | 11,691 | ||||||||
Decrease in junior subordinated debt | — | — | (12,028 | ) | |||||||||
Proceeds from sale of treasury stock | 1,317 | 317 | — | ||||||||||
Repurchase of treasury stock | (553 | ) | — | (42 | ) | ||||||||
Proceeds from issuance of common stock | 176 | 2,118 | 8,325 | ||||||||||
Payment of contingent consideration for business combinations | (2,100 | ) | (1,050 | ) | — | ||||||||
Excess tax benefit from stock-based compensation | 708 | 112 | 141 | ||||||||||
Proceeds from exercise of stock options | 3,970 | 1,363 | 966 | ||||||||||
Net cash (used) provided by financing activities | (8,129 | ) | (9,960 | ) | 1,374 | ||||||||
Change in cash and cash equivalents | 43 | 990 | 194 | ||||||||||
Cash and cash equivalents at beginning of year | 5,392 | 4,402 | 4,208 | ||||||||||
Cash and cash equivalents at end of year | $ | 5,435 | $ | 5,392 | $ | 4,402 | |||||||
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||||||||||||||
Note 28—Segment Information | |||||||||||||||||||||||||||||||||||||
FASB Codification 280—“Segment Reporting” identifies operating segments as components of an enterprise which are evaluated regularly by the Corporation’s Chief Operating Decision Maker, our Chief Executive Officer, in deciding how to allocate resources and assess performance. The Corporation has applied the aggregation criterion set forth in this codification to the results of its operations. | |||||||||||||||||||||||||||||||||||||
The Corporation’s Banking segment consists of commercial and retail banking. The Banking segment is evaluated as a single strategic unit which generates revenues from a variety of products and services. The Banking segment generates interest income from its lending (including leases) and investing activities and is dependent on the gathering of lower cost deposits from its branch network or borrowed funds from other sources for funding its loans, resulting in the generation of net interest income. The Banking segment also derives revenues from other sources including gains on the sale in available for sale investment securities, gains on the sale of residential mortgage loans, service charges on deposit accounts, cash sweep fees, overdraft fees, BOLI income and interchange revenue associated with its Visa Check Card offering. | |||||||||||||||||||||||||||||||||||||
The Wealth Management segment has responsibility for a number of activities within the Corporation, including trust administration, other related fiduciary services, custody, investment management and advisory services, employee benefits and IRA administration, estate settlement, tax services and brokerage. Bryn Mawr Trust of Delaware and Lau Associates are included in the Wealth Management Segment of the Corporation since they have similar economic characteristics, products and services to those of the Wealth Management division of the Corporation. | |||||||||||||||||||||||||||||||||||||
The accounting policies of the Corporation are applied by segment in the following tables. The segments are presented on a pre-tax basis which is the way the Corporation evaluates business results. | |||||||||||||||||||||||||||||||||||||
The following table details the Corporation’s segments. | |||||||||||||||||||||||||||||||||||||
As of or for the Twelve Months Ended December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | Banking | Wealth | Consolidated | Banking | Wealth | Consolidated | Banking | Wealth | Consolidated | ||||||||||||||||||||||||||||
Management | Management | Management | |||||||||||||||||||||||||||||||||||
Net interest income | $ | 72,987 | $ | 3 | $ | 72,990 | $ | 64,731 | $ | 4 | $ | 64,735 | $ | 62,894 | $ | 7 | $ | 62,901 | |||||||||||||||||||
Less: loan loss provision | 3,575 | — | 3,575 | 4,003 | — | 4,003 | 6,088 | — | 6,088 | ||||||||||||||||||||||||||||
Net interest income after loan loss provision | 69,412 | 3 | 69,415 | 60,728 | 4 | 60,732 | 56,806 | 7 | 56,813 | ||||||||||||||||||||||||||||
Other income: | |||||||||||||||||||||||||||||||||||||
Fees for wealth management services | — | 35,184 | 35,184 | — | 29,798 | 29,798 | — | 21,669 | 21,669 | ||||||||||||||||||||||||||||
Service charges on deposit accounts | 2,445 | — | 2,445 | 2,477 | — | 2,477 | 2,495 | — | 2,495 | ||||||||||||||||||||||||||||
Loan servicing and other fees | 1,845 | — | 1,845 | 1,776 | — | 1,776 | 1,824 | — | 1,824 | ||||||||||||||||||||||||||||
Net gain on sale of loans | 4,117 | — | 4,117 | 6,735 | — | 6,735 | 2,517 | — | 2,517 | ||||||||||||||||||||||||||||
Net (loss) gain on sale of available for sale securities | (8 | ) | — | (8 | ) | 1,415 | — | 1,415 | 1,783 | — | 1,783 | ||||||||||||||||||||||||||
Net (loss) gain on sale of other real estate owned | (300 | ) | — | (300 | ) | (86 | ) | — | (86 | ) | (97 | ) | — | (97 | ) | ||||||||||||||||||||||
BOLI income | 358 | — | 358 | 428 | — | 428 | 462 | — | 462 | ||||||||||||||||||||||||||||
Other operating income | 4,546 | 168 | 4,714 | 3,737 | 106 | 3,843 | 3,390 | 16 | 3,406 | ||||||||||||||||||||||||||||
Total other income | 13,003 | 35,352 | 48,355 | 16,482 | 29,904 | 46,386 | 12,374 | 21,685 | 34,059 | ||||||||||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||||||||||
Salaries & wages | 24,210 | 12,136 | 36,346 | 22,248 | 10,883 | 33,131 | 20,016 | 8,068 | 28,084 | ||||||||||||||||||||||||||||
Employee benefits | 5,942 | 2,890 | 8,832 | 5,660 | 2,467 | 8,127 | 4,837 | 2,052 | 6,889 | ||||||||||||||||||||||||||||
Occupancy & equipment | 5,357 | 1,505 | 6,862 | 4,619 | 1,255 | 5,874 | 4,149 | 1,027 | 5,176 | ||||||||||||||||||||||||||||
Amortization of intangible assets | 312 | 2,321 | 2,633 | 294 | 2,117 | 2,411 | 324 | 1,166 | 1,490 | ||||||||||||||||||||||||||||
Professional fees | 2,246 | 210 | 2,456 | 2,665 | 203 | 2,868 | 2,156 | 155 | 2,311 | ||||||||||||||||||||||||||||
Other operating expenses | 20,080 | 3,531 | 23,611 | 19,290 | 3,200 | 22,490 | 15,776 | 2,003 | 17,779 | ||||||||||||||||||||||||||||
Total other expenses | 58,147 | 22,593 | 80,740 | 54,776 | 20,125 | 74,901 | 47,258 | 14,471 | 61,729 | ||||||||||||||||||||||||||||
Segment profit | 24,268 | 12,762 | 37,030 | 22,434 | 9,783 | 32,217 | 21,922 | 7,221 | 29,143 | ||||||||||||||||||||||||||||
Intersegment (revenues) expenses* | (372 | ) | 372 | — | (484 | ) | 484 | — | (337 | ) | 337 | — | |||||||||||||||||||||||||
Pre-tax segment profit after eliminations | $ | 23,896 | $ | 13,134 | $ | 37,030 | $ | 21,950 | $ | 10,267 | $ | 32,217 | $ | 21,585 | $ | 7,558 | $ | 29,143 | |||||||||||||||||||
% of segment pre-tax profit after eliminations | 64.5 | % | 35.5 | % | 100 | % | 68.1 | % | 31.9 | % | 100 | % | 74.1 | % | 25.9 | % | 100 | % | |||||||||||||||||||
Segment assets (dollars in millions) | $ | 2,020.70 | $ | 41 | $ | 2,061.70 | $ | 1,990.90 | $ | 45 | $ | 2,035.90 | $ | 1,738.90 | $ | 34.5 | $ | 1,773.40 | |||||||||||||||||||
* | Intersegment revenues consist of rental payments, deposit interest and management fees. | ||||||||||||||||||||||||||||||||||||
Other segment information: | |||||||||||||||||||||||||||||||||||||
Wealth Management Segment Information | |||||||||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Assets under management, administration, supervision and brokerage | $ | 7,268.30 | $ | 6,663.20 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Nature of Business | ' |
A. Nature of Business | |
The Bryn Mawr Trust Company (the “Bank”) received its Pennsylvania banking charter in 1889 and is a member of the Federal Reserve System. In 1986, Bryn Mawr Bank Corporation (the “Corporation”) was formed and on January 2, 1987, the Bank became a wholly-owned subsidiary of the Corporation. The Bank and Corporation are headquartered in Bryn Mawr, Pennsylvania, a western suburb of Philadelphia. The Corporation and its subsidiaries provide wealth management, community banking, residential mortgage lending, insurance and business banking services to its customers through 19 full service branches, seven retirement community offices, and five wealth offices located throughout Montgomery, Delaware, Chester and Dauphin counties in Pennsylvania and New Castle county in Delaware. In 2008, the Corporation opened the Bryn Mawr Trust Company of Delaware, a limited-purpose trust company in Greenville, Delaware, to further its long-term growth strategy, and diversify its asset base and client accounts. The common stock of the Corporation trades on the NASDAQ Stock Market (“NASDAQ”) under the symbol BMTC. | |
On November 17, 2012, the acquisition of $70.3 million of deposits, $76.6 million of loans and a branch location from the First Bank of Delaware (“FBD”), by the Corporation was completed. The transaction, which was accounted for as a business combination, enabled the Corporation to expand its banking arm into the Delaware market by opening its first full-service branch there, complementing its existing Wealth Management operations in the state. | |
On May 15, 2012, the acquisition of Davidson Trust Company (“DTC”) by the Corporation was completed. The acquisition of DTC initially increased the Corporation’s Wealth Management Division assets under management by $1.0 billion. The structure of the Corporation’s existing Wealth Management segment allowed the Corporation to integrate the operations of DTC into its existing wealth operations and enabled it to take advantage of the various synergies that existed between the two companies. | |
On May 27, 2011, the acquisition of the Private Wealth Management Group of the Hershey Trust Company (“PWMG”) by the Corporation was completed. The acquisition of PWMG initially increased the Corporation’s Wealth Management Division assets under management by $1.1 billion. In addition, the acquisition enabled the Wealth Management Division to extend into central Pennsylvania by continuing to operate the former PWMG offices located in Hershey, Pennsylvania. | |
The Corporation operates in a highly competitive market area that includes local, national and regional banks as competitors along with savings banks, credit unions, insurance companies, trust companies, registered investment advisors and mutual fund families. The Corporation and its subsidiaries are regulated by many regulatory agencies including the Securities and Exchange Commission (“SEC”), Federal Deposit Insurance Corporation (“FDIC”), the Federal Reserve and the Pennsylvania Department of Banking. | |
Basis of Presentation | ' |
B. Basis of Presentation | |
The accounting policies of the Corporation conform to U.S. generally accepted accounting principles (“GAAP”) and predominant practices within the banking industry. | |
The Consolidated Financial Statements include the accounts of the Corporation and its wholly owned subsidiaries. The Corporation’s consolidated financial condition and results of operations consist almost entirely of the Bank’s financial condition and results of operations. All material, inter-company transactions and balances have been eliminated. | |
In preparing the Consolidated Financial Statements, the Corporation is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the dates of the balance sheets, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. | |
Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that in 2014, actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition. Amounts subject to significant estimates are items such as the allowance for loan and lease losses and lending related commitments, goodwill and intangible assets, pension and post-retirement obligations, the fair value of financial instruments and other-than-temporary impairments. Among other effects, such changes could result in future impairments of investment securities, goodwill and intangible assets and establishment of allowances for loan losses and lending-related commitments as well as increased pension and post-retirement expense. | |
Correction of an Immaterial Accounting Error | |
In September 2012, the Corporation identified an immaterial accounting error related to two of its deferred compensation plans. The provisions of the deferred compensation plans enabled certain executives and directors to have bonus payments and director’s fees deferred, and allowed the participants to direct the investment of the deferred amounts. One of the investment choices offered to the participants was the Corporation’s common stock. This stock, along with the participants’ other investment choices, were placed in a trust which is owned by the Corporation. The carrying value of this trust is periodically adjusted to reflect changes in its fair market value. The portion of this trust comprised of the Corporation’s common stock was incorrectly reported as an asset on the Corporation’s balance sheet. The stock held in the trust should have been classified as treasury stock and reported in the shareholders’ equity section of the Corporation’s balance sheet, at cost. | |
Cash and Cash Equivalents | ' |
C. Cash and Cash Equivalents | |
Cash and cash equivalents include cash and due from banks, interest –bearing deposits, federal funds sold and money market funds with other banks with original maturities of three months or less. Cash balances required to meet regulatory reserve requirements of the Federal Reserve Board amounted to $367 thousand and $3.8 million at December 31, 2013 and December 31, 2012, respectively. | |
Investment Securities | ' |
D. Investment Securities | |
Investment securities which are held for indefinite periods of time, which the Corporation intends to use as part of its asset/liability strategy, or which may be sold in response to changes in interest rates, changes in prepayment risk, increases in capital requirements, or other similar factors, are classified as available for sale and are carried at fair value. Net unrealized gains and losses for such securities, net of tax, are required to be recognized as a separate component of shareholders’ equity and excluded from determination of net income. Gains or losses on disposition are based on the net proceeds and cost of the securities sold, adjusted for amortization of premiums and accretion of discounts, using the specific identification method. | |
The Corporation follows ASC 370-10-65-1 “Recognition and Presentation of Other-Than-Temporary Impairments” that provides guidance related to accounting for recognition of other-than-temporary impairment for debt securities and expands disclosure requirements for other-than-temporarily impaired debt and equity securities. Companies are required to record other-than-temporary impairment charges through earnings if they have the intent to sell, or will more likely than not be required to sell, an impaired debt security before a recovery of its amortized cost basis. In addition, companies are required to record other-than-temporary impairment charges through earnings for the amount of credit losses, regardless of the intent or requirement to sell. Credit loss is measured as the difference between the present value of an impaired debt security’s cash flows and its amortized cost basis. Non-credit-related write-downs to fair value must be recorded as decreases to accumulated other comprehensive income as long as the Corporation has no intent or it is more likely than not that the Corporation would not be required to sell an impaired security before a recovery of its amortized cost basis. The Corporation did not have any other-than-temporary impairment for 2013, 2012 or 2011. | |
Investment securities held in trading accounts consist solely of a deferred compensation trust account which is invested in marketable securities whose diversification is at the discretion of the deferred compensation plan participants. Investment securities held in trading accounts are reported at their fair value, with adjustments in fair value reported through income. | |
Loans Held for Sale | ' |
E. Loans Held for Sale | |
Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized temporary losses, if any, are recognized through a valuation allowance by charges to income. | |
Portfolio Loans and Leases | ' |
F. Portfolio Loans and Leases | |
The Corporation originates construction, commercial and industrial, commercial mortgage, residential mortgage, home equity and consumer loans to customers primarily in southeastern Pennsylvania as well as small-ticket equipment leasing to customers nationwide. Although the Corporation has a diversified loan and lease portfolio, its debtors’ ability to honor their contracts is substantially dependent upon the real estate and general economic conditions of the region. | |
Loans and leases that the Corporation has the intention and ability to hold for the foreseeable future or until maturity or pay-off, generally are reported at their outstanding principal balance adjusted for charge-offs, the allowance for loan and lease losses and any deferred fees or costs on originated loans and leases. Interest income is accrued on the unpaid principal balance. | |
Loan and lease origination fees and loan and lease origination costs are deferred and recognized as an adjustment of the related yield using the interest method. | |
The accrual of interest on loans and leases is generally discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in the process of collection. Loans and leases are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued, but not collected for loans that are placed on nonaccrual status or charged-off, is charged against interest income. All interest accrued, but not collected, on leases that are placed on nonaccrual status is not charged against interest until the lease is charged-off at 120 days delinquent. The interest received on these nonaccrual loans and leases is applied to reduce the carrying value of loans and leases. Loans and leases are returned to accrual status when all the principal and interest amounts contractually due are brought current, remain current for at least six months and future payments are reasonably assured. Once a loan returns to accrual status, any interest payments collected during the nonaccrual period which had been applied to the principal balance are reversed and recognized as interest income over the remaining term of the loan. | |
In connection with the FBD transaction, the Corporation acquired $76.6 million of loans from FBD. These acquired loans were recorded at their fair value. The difference between the recorded fair value and the principal value is accreted to interest income over the contractual lives of the loans in accordance with ASC 310-20 (formerly SFAS 91). Certain acquired loans which were deemed to be credit impaired at acquisition are accounted for in accordance with ASC 310-30 (formerly SOP 03-3), as discussed below, in subsection H of this footnote. | |
Allowance for Loan and Lease Losses | ' |
G. Allowance for Loan and Lease Losses | |
The allowance for loan and lease losses (the “Allowance”) is established through a provision for loan and lease losses (the “Provision”) charged as an expense. The principal balances of loans and leases are charged against the Allowance when the Corporation believes that the principal is uncollectible. The Allowance is maintained at a level that the Corporation believes is sufficient to absorb estimated potential credit losses. | |
The Corporation’s determination of the adequacy of the Allowance is based on periodic evaluations of the loan and lease portfolio and other relevant factors. However, this evaluation is inherently subjective as it requires significant estimates by the Corporation. Consideration is given to a variety of factors in establishing these estimates including specific terms and conditions of loans and leases, underwriting standards, delinquency statistics, historical charge-off history by portfolio segment, industry concentration, overall exposure to a single customer, adequacy of collateral, the dependence on collateral, and results of internal loan review, including a borrower’s perceived financial and management strengths, the amounts and timing of the present value of future cash flows, and the access to additional funds. | |
As part of the process of allocating the Allowance to the different segments of the loan and lease portfolio, the Corporation considers certain credit quality indicators. For the commercial mortgage, construction and commercial and industrial loan segments, periodic reviews of the individual loans are performed by both in-house staff as well as external third-party loan review specialists. The result of these reviews is reflected in the risk grade assigned to each loan. In addition, the remaining segments of the loan and lease portfolio, which include residential mortgage, home equity lines and loans, consumer loans, and leases, are allocated portions of the Allowance based on their performance status. | |
The evaluation process also considers the impact of competition, current and expected economic conditions, national and international events, the regulatory and legislative environment and inherent risks in the loan and lease portfolio. All of these factors may be susceptible to significant change. To the extent actual outcomes differ from the Corporation’s estimates, an additional Provision may be required that might adversely affect the Corporation’s results of operations in future periods. In addition, various regulatory agencies, as an integral part of their examination processes, periodically review the adequacy of the Allowance. Such agencies may require the Corporation to record additions to the Allowance based on their judgment of information available to them at the time of their examination. | |
Impaired Loans and Leases | ' |
H. Impaired Loans and Leases | |
A loan or lease is considered impaired when, based on current information, it is probable that the Corporation will be unable to collect the contractually scheduled payments of principal or interest. When assessing impairment, the Corporation considers various factors, which include payment status, realizable value of collateral and the probability of collecting scheduled principal and interest payments when due. Loans and leases that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. | |
The Corporation determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. | |
Impairment is measured by either the present value of expected future cash flows discounted at the loan’s contractual effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. | |
In addition to originating loans, the Corporation occasionally acquires loans through mergers or loan purchase transactions. Some of these acquired loans may exhibit deteriorated credit quality that has occurred since origination and the Corporation may not expect to collect all contractual payments. Accounting for these purchased credit-impaired loans is done in accordance with ASC 310-30. The loans are recorded at fair value, reflecting the present value of the amounts expected to be collected. Income recognition on these loans is based on a reasonable expectation about the timing and amount of cash flows to be collected. Acquired loans deemed impaired and considered collateral dependent, with the timing of the sale of loan collateral indeterminate, remain on nonaccrual status and have no accretable yield. | |
Troubled Debt Restructurings ("TDR"s) | ' |
I. Troubled Debt Restructurings (“TDR”s) | |
A TDR occurs when a creditor, for economic or legal reasons related to a borrower’s financial difficulties, modifies the original terms of a loan or lease or grants a concession to the borrower that it would not otherwise have granted. A concession may include an extension of repayment terms, a reduction in the interest rate or the forgiveness of principal and/or accrued interest. If the debtor is experiencing financial difficulty and the creditor has granted a concession, the Corporation will make the necessary disclosures related to the TDR. In certain cases, a modification or concession may be made in an effort to retain a customer who is not experiencing financial difficulty. This type of modification is not considered a TDR. | |
Other Real Estate Owned ("OREO") | ' |
J. Other Real Estate Owned (“OREO”) | |
OREO consists of assets that the Corporation has acquired through foreclosure, by accepting a deed in lieu of foreclosure, or by taking possession of assets that were used as loan collateral. The Corporation reports OREO on the balance sheet within other assets, at the lower of cost or estimated fair value less cost to sell, adjusted periodically based on current appraisals. Costs relating to the development or improvement of assets, as well as the costs required to obtain legal title to the property, are capitalized, while costs related to holding the property are charged to expense as incurred. | |
Other Investments and Federal Home Loan Bank Stock | ' |
K. Other Investments and Federal Home Loan Bank Stock | |
Other investments include Community Reinvestment Act (“CRA”) investments, and equity stocks without a readily determinable fair market value. The Corporation’s investments in equity stocks include those issued by the Federal Home Loan Bank of Pittsburgh (“FHLB”), the Federal Reserve Bank and Atlantic Central Bankers Bank. The Corporation is required to hold FHLB stock as a condition of its borrowing funds from the FHLB. As of December 31, 2013, the carrying value of the Corporation’s FHLB stock was $11.7 million. Ownership of FHLB stock is restricted and there is no market for these securities. For further information on the FHLB stock, see Note 10 – “Short-Term and Other Borrowings”. | |
Premises and Equipment | ' |
L. Premises and Equipment | |
Premises and equipment are stated at cost, less accumulated depreciation. Depreciation and predetermined rent are recorded using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the expected lease term or the estimated useful lives, whichever is shorter. | |
Pension and Postretirement Benefit Plans | ' |
M. Pension and Postretirement Benefit Plans | |
The Corporation has one qualified defined-benefit pension plan, two non-qualified defined-benefit supplemental executive retirement plans and a postretirement benefit plan as discussed in Note 15—“Pension and Postretirement Benefit Plans”. Net pension expense related to the defined-benefit consists of service cost, interest cost, return on plan assets, amortization of prior service cost, amortization of transition obligations and amortization of net actuarial gains and losses. The Corporation accrues pension costs as incurred. | |
Bank Owned Life Insurance ("BOLI") | ' |
N. Bank Owned Life Insurance (“BOLI”) | |
BOLI is recorded at its cash surrender value. Income from BOLI is tax-exempt and included as a component of other non-interest income. | |
Derivative Financial Instruments | ' |
O. Derivative Financial Instruments | |
The Corporation recognizes all derivative financial instruments on its balance sheet at fair value. Derivatives that are not hedges must be adjusted to fair value through income. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative are either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is recognized in earnings immediately. To determine fair value, the Corporation uses valuations obtained from a third party which utilizes a pricing model that incorporates assumptions about market conditions and risks that are current as of the reporting date. Management reviews, annually, the inputs utilized by its independent third-party valuation experts. | |
The Corporation may use interest-rate swap agreements to modify the interest rate characteristics from variable to fixed or fixed to variable in order to reduce the impact of interest rate changes on future net interest income. The Corporation accounts for its interest-rate swap contracts in cash flow hedging relationships by establishing and documenting the effectiveness of the instrument in offsetting the change in cash flows of assets or liabilities that are being hedged. To determine effectiveness, the Corporation performs an analysis to identify if changes in fair value or cash flow of the derivative correlate to the equivalent changes in the forecasted interest receipts related to a specified hedged item. Recorded amounts related to interest-rate swaps are included in other assets or liabilities. The change in fair value of the ineffective part of the instrument would need to be charged to the statement of operations, potentially causing material fluctuations in reported earnings in the period of the change relative to comparable periods. In a fair value hedge, the fair values of the interest rate swap agreements and changes in the fair values of the hedged items are recorded in the Corporation’s consolidated balance sheets with the corresponding gain or loss being recognized in current earnings. The difference between changes in the fair values of interest rate swap agreements and the hedged items represents hedge ineffectiveness and is recorded in net interest income in the statement of operations. The Corporation performs an assessment, both at the inception of the hedge and quarterly thereafter, to determine whether these derivatives are highly effective in offsetting changes in the value of the hedged items. | |
Accounting for Stock-Based Compensation | ' |
P. Accounting for Stock-Based Compensation | |
Stock-based compensation cost is measured at the grant date, based on the fair value of the award and is recognized as an expense over the vesting period. | |
All share-based payments, including grants of stock options, restricted stock awards and performance-based stock awards, are recognized as compensation expense in the statement of income at their fair value. The fair value of stock option grants is determined using the Black-Scholes pricing model which considers the expected life of the options, the volatility of stock price, risk-free interest rate and annual dividend yield. The fair value of the restricted stock awards is based on their market value on the grant date, while the fair value of the performance-based stock awards is based on their grant-date market value in addition to the likelihood of attaining certain pre-determined performance goals utilizing the Monte Carlo Simulation model. | |
Earnings Per Common Share | ' |
Q. Earnings Per Common Share | |
Basic earnings per common share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted earnings per common share takes into account the potential dilution that would occur if in-the-money stock options were exercised and converted into common shares and restricted stock awards and performance-based stock awards were vested. Proceeds assumed to have been received on options exercises are assumed to be used to purchase shares of the Corporation’s common stock at the average market price during the period, as required by the treasury stock method of accounting. The effects of stock options are excluded from the computation of diluted earnings per share in periods in which the effect would be antidilutive. All weighted average shares, actual shares and per share information in the financial statements have been adjusted retroactively for the effect of stock dividends and splits. | |
Income Taxes | ' |
R. Income Taxes | |
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |
The Corporation recognizes the benefit of a tax position only after determining that the Corporation would more-likely-than-not sustain the position following an examination. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon settlement with the relevant tax authority. The Corporation applies these criteria to tax positions for which the statute of limitations remains open. | |
Revenue Recognition | ' |
S. Revenue Recognition | |
With the exception of nonaccrual loans and leases, the Corporation recognizes all sources of income on the accrual method. | |
Additional information relating to Wealth Management fee revenue recognition follows: | |
The Corporation earns Wealth Management fee revenue from a variety of sources including fees from trust administration and other related fiduciary services, custody, investment management and advisory services, employee benefit account and IRA administration, estate settlement, tax service fees, shareholder service fees and brokerage. These fees are generally based on asset values and fluctuate with the market. Some revenue is not directly tied to asset value but is based on a flat fee for services provided. For many of our revenue sources, amounts are not received in the same accounting period in which they are earned. However, each source of Wealth Management fees is recorded on the accrual method of accounting. | |
The most significant portion of the Corporation’s Wealth Management fees is derived from trust administration and other related services, custody, investment management and advisory services, and employee benefit account and IRA administration. These fees are generally billed in arrears, based on the market value of assets at the end of the previous billing period. A smaller number of customers are billed in a similar manner, but on a quarterly or annual basis and some revenues are not based on market values. | |
The balance of the Corporation’s Wealth Management fees includes estate settlement fees and tax service fees, which are recorded when the related service is performed and asset management and brokerage fees on non-depository investment products, which are received one month in arrears, based on settled transactions, but are accrued in the month the settlement occurs. | |
Included in other assets on the balance sheet is a receivable for Wealth Management fees that have been earned but not yet collected. | |
Mortgage Servicing | ' |
T. Mortgage Servicing | |
A portion of the residential mortgage loans originated by the Corporation is sold to a third party; however the Corporation often retains the servicing duties related to these loans. A fee, usually based on a percentage of the outstanding principal balance of the loan, is received in return for these services. Gains on the sale of these loans are based on the specific identification method. | |
An intangible asset, referred to as mortgage servicing rights (“MSR”s) is recognized when the loan servicing rights are retained upon sale of a loan. These MSRs amortize to non-interest expense in proportion to, and over the period of, the estimated future net servicing life of the underlying loans. | |
MSRs are evaluated quarterly for impairment based upon the fair value of the rights as compared to their amortized cost. Impairment is determined by stratifying the MSRs by predominant characteristics, such as interest rate and terms. Fair value is determined based upon discounted cash flows using market-based assumptions. Impairment is recognized on the income statement to the extent the fair value is less than the capitalized amount for the stratum. A valuation allowance is utilized to record temporary impairment in MSRs. Temporary impairment is defined as impairment that is not deemed permanent. Permanent impairment is recorded as a reduction of the MSR and is not reversed. | |
Statement of Cash Flows | ' |
U. Statement of Cash Flows | |
The Corporation’s statement of cash flows details operating, investing and financing activities during the reported periods. | |
Goodwill and Intangible Assets | ' |
V. Goodwill and Intangible Assets | |
The Corporation accounts for goodwill and other intangible assets in accordance with ASC 350, “Intangibles— Goodwill and Other.” The goodwill and intangible assets as of December 31, 2013, other than MSRs in Note 1-T above, are related to the acquisitions of Lau Associates, PWMG and DTC, which are components of the Wealth Management segment, and First Keystone Financial, Inc. (“FKF”), and FBD, which are components of the Banking segment. The amount of goodwill initially recorded is based on the fair value of the acquired entity at the time of acquisition. Goodwill impairment tests are performed annually, or when events occur or circumstances change that would more likely than not reduce the fair value of the acquisition or investment. | |
The Corporation’s impairment testing methodology is consistent with the methodology prescribed in ASC 350. Other intangible assets include a core deposit intangible, which was acquired in the FKF merger and the FBD transaction, customer relationships, trade name and non-competition agreements acquired in connection with the acquisitions of DTC, PWMG and Lau Associates. The customer relationships, non-competition agreement and core deposit intangibles are amortized over the estimated useful lives of the assets. The trade name intangible has an indefinite life and is evaluated for impairment annually. | |
Reclassifications | ' |
W. Reclassifications | |
Certain prior year amounts have been reclassified to conform to the current year’s presentation. | |
Recent Accounting Pronouncements | ' |
X. Recent Accounting Pronouncements | |
FASB ASU No. 2013-01—Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities | |
In December 2011, the FASB issued Accounting Standards Update or ASU No. 2011-11, “Disclosures About Offsetting Assets and Liabilities.” This project began as an attempt to converge the offsetting requirements under U.S. GAAP and International Financial Reporting Standards (“IFRS”). However, as the FASB and International Accounting Standards Board were not able to reach a converged solution with regards to offsetting requirements, they each developed convergent disclosure requirements to assist in reconciling differences in the offsetting requirements under U.S. GAAP and IFRS. The new disclosure requirements mandate that entities disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement similar to a master netting arrangement. ASU No. 2011-11 also requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The provisions of ASU No. 2013-01 limit the scope of the new balance sheet offsetting disclosures to the following financial instruments, to the extent they are offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the statement of financial position: (1) derivative financial instruments; (2) repurchase agreements and reverse repurchase agreements; and (3) securities borrowing and securities lending transactions. The Corporation adopted the provisions of ASU No. 2011-11 and ASU No. 2013-01 effective January 1, 2013. The provisions of ASU No. 2011-11 and ASU No. 2013-01 only impacted the disclosure requirements related to the offsetting of assets and liabilities and information about instruments and transactions eligible for offset in the statement of financial position, the adoption of this amendment did not have a material effect on the Corporation’s Consolidated Financial Statements. | |
FASB ASU No. 2013-02—Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income | |
In February 2013, the FASB issued an update (ASU 2013-02—Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income) which requires entities to disclose, for items reclassified out of accumulated other comprehensive income (“AOCI”) and into net income in their entirety, the effect of the reclassification on each affected net income line item and, for AOCI reclassification items that are not reclassified in their entirety into net income, a cross reference to other required U.S. GAAP disclosures. The guidance is effective for annual and interim reporting periods beginning after December 15, 2012; early adoption is allowed. The Corporation has adopted this ASU. For more information, see Note 16, below. | |
FASB ASU No. 2013-10—Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes | |
In July 2013, the FASB issued ASU 2013-10—Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes which permits the uses of this alternative benchmark interest rate, in addition to the U.S. government rate (UST) and London Interbank Offered Rate (LIBOR), as a U.S. benchmark interest rate for hedge accounting purposes under FASB ASC Topic 815, Derivatives and Hedging. The ASU is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The Corporation currently uses LIBOR as a benchmark for hedge accounting purposes. As such, Management does not expect ASU 2013-10 to have any impact on its financial condition and results of operations. | |
FASB ASU No. 2013-11—Presentation of an Unrecognized Tax Benefit When a Net Operation Loss Carryforward, a Similar Tax Loss, or a Tax Credit Exists | |
In July 2013, the FASB issued ASU 2013-11—Presentation of an Unrecognized Tax Benefit When a Net Operation Loss carryforward, a Similar Tax Loss, or a Tax Credit Exists which requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (“NOL”) carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) the entity intends to use the deferred tax asset for that purpose. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Management does not expect ASU 2013-11 to have any impact on its financial condition and results of operations. | |
FASB ASU 2014-04, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” | |
Issued in January 2014, ASU 2014-04 clarifies when an “in substance repossession or foreclosure” occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loans, such that all or a portion of the loan should be derecognized and the real estate property recognized. ASU 2014-04 states that a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amendments of ASU 2014-04 also require interim and annual disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure. The amendments of ASU 2014-04 are effective for interim and annual periods beginning after December 15, 2014, and may be applied using either a modified retrospective transition method or a prospective transition method as described in ASU 2014-04. The adoption of ASU 2014-04 will be change in presentation only for the newly required disclosures and is not expect to have a significant impact to the Corporation’s consolidated financial statements. |
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Schedule of Consideration Paid and Fair Value of Identifiable Assets Acquired and Liabilities Assumed | ' | ||||
In connection with the FBD Transaction, the consideration paid and the fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition are summarized in the following table: | |||||
(dollars in thousands) | |||||
Consideration paid: | |||||
Cash | $ | 10,559 | |||
Value of consideration | 10,559 | ||||
Assets acquired: | |||||
Cash and due from banks | 525 | ||||
Loans | 76,556 | ||||
Premises and equipment | 460 | ||||
Core deposit intangible | 320 | ||||
Other assets | 256 | ||||
Total assets | 78,117 | ||||
Liabilities assumed: | |||||
Nonmaturity deposits | 27,080 | ||||
Time deposits | 43,257 | ||||
Unfavorable lease | 140 | ||||
Other liabilities | 390 | ||||
Total liabilities | 70,867 | ||||
Net assets acquired | 7,250 | ||||
Goodwill resulting from the FBD Transaction | $ | 3,309 | |||
In connection with the DTC acquisition, the consideration paid and the fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition are summarized in the following table: | |||||
(dollars in thousands) | |||||
Consideration paid: | |||||
Cash | $ | 10,500 | |||
Assets acquired: | |||||
Cash operating accounts | 1,433 | ||||
Other assets | 201 | ||||
Intangible asset—customer relationships | 3,720 | ||||
Intangible asset—noncompetition agreements | 1,385 | ||||
Intangible asset—brand | 970 | ||||
Premises and equipment | 117 | ||||
Deferred tax asset | 839 | ||||
Total assets | 8,665 | ||||
Liabilities assumed: | |||||
Deferred tax liability | 2,125 | ||||
Miscellaneous liabilities | 885 | ||||
Total liabilities | 3,010 | ||||
Net assets acquired | 5,655 | ||||
Goodwill resulting from acquisition of DTC | $ | 4,845 | |||
Goodwill_Other_Intangible_Asse1
Goodwill & Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Schedule of Goodwill and Intangible Assets Related to Acquisitions | ' | ||||||||||||||||||
The Corporation’s goodwill and intangible assets related to the acquisitions of Lau Associates in July, 2008, FKF in July, 2010, PWMG in May, 2011, DTC in May, 2012 and FBD in November, 2012 for the years ending December 31, 2013 and 2012 are as follows: | |||||||||||||||||||
(dollars in thousands) | Beginning | Additions/ | Amortization | Ending | Amortization | ||||||||||||||
Balance | Adjustments | Balance | Period | ||||||||||||||||
12/31/12 | 12/31/13 | ||||||||||||||||||
Goodwill—Wealth segment | $ | 20,466 | $ | (54 | ) | $ | — | $ | 20,412 | Indefinite | |||||||||
Goodwill—Banking segment | 12,431 | — | — | 12,431 | Indefinite | ||||||||||||||
Total | $ | 32,897 | $ | (54 | ) | $ | — | $ | 32,843 | ||||||||||
Core deposit intangible | $ | 1,654 | $ | — | $ | (312 | ) | $ | 1,342 | 10 Years | |||||||||
Customer relationships | 14,890 | — | (1,295 | ) | 13,595 | 10 to 20 Years | |||||||||||||
Non-compete agreements | 4,244 | — | (1,026 | ) | 3,218 | 5 to 5 1⁄2 Years | |||||||||||||
Trade name | 1,210 | — | — | 1,210 | Indefinite | ||||||||||||||
Total | $ | 21,998 | $ | — | $ | (2,633 | ) | $ | 19,365 | ||||||||||
Grand total | $ | 54,895 | $ | (54 | ) | $ | (2,633 | ) | $ | 52,208 | |||||||||
(dollars in thousands) | Beginning | Additions/ | Amortization | Ending | Amortization | ||||||||||||||
Balance | Adjustments | Balance | Period | ||||||||||||||||
12/31/11 | 12/31/12 | ||||||||||||||||||
Goodwill—Wealth segment | $ | 15,567 | $ | 4,899 | $ | — | $ | 20,466 | Indefinite | ||||||||||
Goodwill—Banking segment | 9,122 | 3,309 | — | 12,431 | Indefinite | ||||||||||||||
Total | $ | 24,689 | $ | 8,208 | $ | — | $ | 32,897 | |||||||||||
Core deposit intangible | $ | 1,628 | $ | 320 | $ | (294 | ) | $ | 1,654 | 10 Years | |||||||||
Customer relationships | 12,376 | 3,720 | (1,206 | ) | 14,890 | 10 to 20 Years | |||||||||||||
Non-compete agreements | 3,770 | 1,385 | (911 | ) | 4,244 | 5 to 5 1⁄2 Years | |||||||||||||
Trade name | 240 | 970 | — | 1,210 | Indefinite | ||||||||||||||
Total | $ | 18,014 | $ | 6,395 | $ | (2,411 | ) | $ | 21,998 | ||||||||||
Grand total | $ | 42,703 | $ | 14,603 | $ | (2,411 | ) | $ | 54,895 | ||||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Schedule of Amortized Cost and Estimated Fair Value of Investments Classified As Available For Sale | ' | ||||||||||||||||||||||||
The amortized cost and estimated fair value of investments, which were classified as available for sale, are as follows: | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
(dollars in thousands) | Amortized | Gross | Gross | Estimated | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
U.S. Treasury securities | $ | 102 | $ | — | $ | (3 | ) | $ | 99 | ||||||||||||||||
Obligations of the U.S. government and agencies | 71,097 | 149 | (1,678 | ) | 69,568 | ||||||||||||||||||||
Obligations of state and political subdivisions | 37,140 | 141 | (304 | ) | 36,977 | ||||||||||||||||||||
Mortgage-backed securities | 119,044 | 1,392 | (1,073 | ) | 119,363 | ||||||||||||||||||||
Collateralized mortgage obligations | 44,463 | 273 | (493 | ) | 44,243 | ||||||||||||||||||||
Other investments | 15,281 | 301 | (24 | ) | 15,558 | ||||||||||||||||||||
Total | $ | 287,127 | $ | 2,256 | $ | (3,575 | ) | $ | 285,808 | ||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
(dollars in thousands) | Amortized | Gross | Gross | Estimated | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Obligations of the U.S. government and agencies | $ | 73,183 | $ | 796 | $ | (107 | ) | $ | 73,872 | ||||||||||||||||
Obligations of state and political subdivisions | 30,244 | 199 | (59 | ) | 30,384 | ||||||||||||||||||||
Mortgage-backed securities | 128,537 | 3,302 | (13 | ) | 131,826 | ||||||||||||||||||||
Collateralized mortgage obligations | 62,116 | 622 | (35 | ) | 62,703 | ||||||||||||||||||||
Other investments | 17,667 | 162 | — | 17,829 | |||||||||||||||||||||
Total | $ | 311,747 | $ | 5,081 | $ | (214 | ) | $ | 316,614 | ||||||||||||||||
Schedule of Amount of Securities in Unrealized Loss Position | ' | ||||||||||||||||||||||||
The following table shows the amount of securities that were in an unrealized loss position at December 31, 2013: | |||||||||||||||||||||||||
Less than 12 | 12 Months | Total | |||||||||||||||||||||||
Months | or Longer | ||||||||||||||||||||||||
(dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
U.S. Treasury securities | $ | 99 | $ | (3 | ) | $ | — | $ | — | $ | 99 | $ | (3 | ) | |||||||||||
Obligations of the U.S. government and agencies | 41,201 | (1,391 | ) | 5,774 | (287 | ) | 46,975 | (1,678 | ) | ||||||||||||||||
Obligations of state and political subdivisions | 13,020 | (233 | ) | 4,543 | (71 | ) | 17,563 | (304 | ) | ||||||||||||||||
Mortgage-backed securities | 55,672 | (972 | ) | 2,302 | (101 | ) | 57,974 | (1,073 | ) | ||||||||||||||||
Collateralized mortgage obligations | 26,395 | (493 | ) | — | — | 26,395 | (493 | ) | |||||||||||||||||
Other investments | 1,494 | (24 | ) | — | — | 1,494 | (24 | ) | |||||||||||||||||
Total | $ | 137,881 | $ | (3,116 | ) | $ | 12,619 | $ | (459 | ) | $ | 150,500 | $ | (3,575 | ) | ||||||||||
The following table shows the amount of securities that were in an unrealized loss position at December 31, 2012: | |||||||||||||||||||||||||
Less than 12 | 12 Months | Total | |||||||||||||||||||||||
Months | or Longer | ||||||||||||||||||||||||
(dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Obligations of the U.S. government and agencies | $ | 20,032 | $ | (107 | ) | $ | — | $ | — | $ | 20,032 | $ | (107 | ) | |||||||||||
Obligations of state and political subdivisions | 10,752 | (59 | ) | — | — | 10,752 | (59 | ) | |||||||||||||||||
Mortgage-backed securities | 12,602 | (13 | ) | — | — | 12,602 | (13 | ) | |||||||||||||||||
Collateralized mortgage obligations | 10,040 | (35 | ) | — | — | 10,040 | (35 | ) | |||||||||||||||||
Total | $ | 53,426 | $ | (214 | ) | $ | — | $ | — | $ | 53,426 | $ | (214 | ) | |||||||||||
Schedule of Amortized Cost and Estimated Fair Value of Investment and Mortgage-Related Securities by Contractual Maturity | ' | ||||||||||||||||||||||||
The amortized cost and estimated fair value of investment and mortgage-related securities as of December 31, 2013 and 2012, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
(dollars in thousands) | Amortized | Estimated | |||||||||||||||||||||||
Cost | Market | ||||||||||||||||||||||||
Value | |||||||||||||||||||||||||
Investment securities*: | |||||||||||||||||||||||||
Due in one year or less | $ | 7,859 | $ | 7,869 | |||||||||||||||||||||
Due after one year through five years | 49,790 | 49,721 | |||||||||||||||||||||||
Due after five years through ten years | 51,793 | 50,117 | |||||||||||||||||||||||
Due after ten years | 797 | 824 | |||||||||||||||||||||||
Subtotal | 110,239 | 108,531 | |||||||||||||||||||||||
Mortgage-related securities | 163,507 | 163,606 | |||||||||||||||||||||||
Total | $ | 273,746 | $ | 272,137 | |||||||||||||||||||||
* | Included in the investment portfolio, but not in the table above, are mutual funds with an estimated market value, as of December 31, 2013, of $13.7 million, which have no stated maturity. | ||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
(dollars in thousands) | Amortized | Estimated | |||||||||||||||||||||||
Cost | Market | ||||||||||||||||||||||||
Value | |||||||||||||||||||||||||
Investment securities*: | |||||||||||||||||||||||||
Due in one year or less | $ | 10,571 | $ | 10,590 | |||||||||||||||||||||
Due after one year through five years | 38,056 | 38,171 | |||||||||||||||||||||||
Due after five years through ten years | 40,635 | 40,714 | |||||||||||||||||||||||
Due after ten years | 18,415 | 19,044 | |||||||||||||||||||||||
Subtotal | 107,677 | 108,519 | |||||||||||||||||||||||
Mortgage-related securities | 190,653 | 194,529 | |||||||||||||||||||||||
Total | $ | 298,330 | $ | 303,048 | |||||||||||||||||||||
* | Included in the investment portfolio, but not in the table above, are mutual funds with an estimated market value, as of December 31, 2012, of $13.4 million, which have no stated maturity. |
Loans_and_Leases_Tables
Loans and Leases (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Summary of Loans and Leases Outstanding | ' | ||||||||||||||||||||||||||||||||||||||||
Loans and leases outstanding are detailed by portfolio segment as follows: | |||||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Loans held for sale | $ | 1,350 | $ | 3,412 | |||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | 625,341 | $ | 546,358 | |||||||||||||||||||||||||||||||||||||
Home equity lines and loans | 189,571 | 194,861 | |||||||||||||||||||||||||||||||||||||||
Residential mortgage | 300,243 | 288,212 | |||||||||||||||||||||||||||||||||||||||
Construction | 46,369 | 26,908 | |||||||||||||||||||||||||||||||||||||||
Total real estate loans | 1,161,524 | 1,056,339 | |||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 328,459 | 291,620 | |||||||||||||||||||||||||||||||||||||||
Consumer | 16,926 | 17,666 | |||||||||||||||||||||||||||||||||||||||
Leases | 40,276 | 32,831 | |||||||||||||||||||||||||||||||||||||||
Total portfolio loans and leases | 1,547,185 | 1,398,456 | |||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 1,548,535 | $ | 1,401,868 | |||||||||||||||||||||||||||||||||||||
Loans with predetermined rates | $ | 850,168 | $ | 723,417 | |||||||||||||||||||||||||||||||||||||
Loans with adjustable or floating rates | 698,367 | 678,451 | |||||||||||||||||||||||||||||||||||||||
Total loans and leases | $ | 1,548,535 | $ | 1,401,868 | |||||||||||||||||||||||||||||||||||||
Net deferred loan origination costs included in the above loan table | $ | 222 | $ | 402 | |||||||||||||||||||||||||||||||||||||
Summary of Net Investments in Leases | ' | ||||||||||||||||||||||||||||||||||||||||
Leases outstanding at December 31 are detailed by components of the net investment as follows: | |||||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Minimum lease payments receivable | $ | 45,866 | $ | 37,349 | |||||||||||||||||||||||||||||||||||||
Unearned lease income | (7,534 | ) | (6,099 | ) | |||||||||||||||||||||||||||||||||||||
Initial direct costs and deferred fees | 1,944 | 1,581 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 40,276 | $ | 32,831 | |||||||||||||||||||||||||||||||||||||
Summary of Non-Performing Loans and Leases | ' | ||||||||||||||||||||||||||||||||||||||||
Non-Performing Loans and Leases* | |||||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Nonaccrual loans and leases: | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | 478 | $ | 631 | |||||||||||||||||||||||||||||||||||||
Home equity lines and loans | 1,262 | 2,792 | |||||||||||||||||||||||||||||||||||||||
Residential mortgage | 4,377 | 3,748 | |||||||||||||||||||||||||||||||||||||||
Construction | 830 | 3,314 | |||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 3,539 | 3,506 | |||||||||||||||||||||||||||||||||||||||
Consumer | 20 | 7 | |||||||||||||||||||||||||||||||||||||||
Leases | 24 | 42 | |||||||||||||||||||||||||||||||||||||||
Total | 10,530 | 14,040 | |||||||||||||||||||||||||||||||||||||||
Loans and leases 90 days or more past due and still accruing: | |||||||||||||||||||||||||||||||||||||||||
Construction | — | 728 | |||||||||||||||||||||||||||||||||||||||
Total non-performing loans and leases | $ | 10,530 | $ | 14,768 | |||||||||||||||||||||||||||||||||||||
* | Purchased credit-impaired loans, which have been recorded at their fair values at the acquisition date and which are performing as expected are excluded from this table with the exception of $238 thousand and $90 thousand as of December 31, 2013 and 2012, respectively, of purchased credit-impaired loans which became non-performing subsequent to the merger. | ||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Amount of Acquired Credit Impaired Loan | ' | ||||||||||||||||||||||||||||||||||||||||
The outstanding principal balance and related carrying amount of credit-impaired loans, for which the Corporation applies ASC 310-30 to account for the interest earned, as of the dates indicated, is as follows: | |||||||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Outstanding principal balance | $ | 14,293 | $ | 19,527 | |||||||||||||||||||||||||||||||||||||
Carrying amount(1) | $ | 9,880 | $ | 12,128 | |||||||||||||||||||||||||||||||||||||
-1 | Includes $293 thousand and $319 thousand of purchased credit-impaired loans as of December 31, 2013 and 2012, respectively, for which the Corporation could not estimate the timing or amount of expected cash flows to be collected at the acquisition date, and for which no accretable yield is recognized. Additionally, the table above includes $238 thousand and $90 thousand as of December 31, 2013 and 2012, respectively, of purchased credit-impaired loans that subsequently became non-performing, which are disclosed in Note 5C, above, and which also have no accretable yield. | ||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Accretable Discount on Purchased Credit-Impaired Loans | ' | ||||||||||||||||||||||||||||||||||||||||
The following table presents changes in the accretable discount on purchased credit-impaired loans, for which the Corporation applies ASC 310-30, for the twelve month periods ended December 31, 2012 and 2013: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Accretable | ||||||||||||||||||||||||||||||||||||||||
Discount | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 9,537 | |||||||||||||||||||||||||||||||||||||||
Accretion | (1,458 | ) | |||||||||||||||||||||||||||||||||||||||
Reclassification from nonaccretable difference | 1,299 | ||||||||||||||||||||||||||||||||||||||||
Additions/adjustments | 18 | ||||||||||||||||||||||||||||||||||||||||
Disposals | (1,371 | ) | |||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | 8,025 | ||||||||||||||||||||||||||||||||||||||||
Accretion | (1,893 | ) | |||||||||||||||||||||||||||||||||||||||
Reclassification from nonaccretable difference | 1,198 | ||||||||||||||||||||||||||||||||||||||||
Additions/adjustments | (257 | ) | |||||||||||||||||||||||||||||||||||||||
Disposals | (939 | ) | |||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2013 | $ | 6,134 | |||||||||||||||||||||||||||||||||||||||
Schedule of Aging of Corporation's Loan and Lease Portfolio | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables present an aging of the Corporation’s loan and lease portfolio as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||||||
Accruing Loans and Leases | Nonaccrual | Total | |||||||||||||||||||||||||||||||||||||||
30 – 59 | 60 – 89 | Over 89 | Total Past | Current | Total | Loans and | Loans and | ||||||||||||||||||||||||||||||||||
Days | Days | Days | Due | Accruing | Leases | Leases | |||||||||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Loans and | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Leases | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | 241 | $ | — | $ | — | $ | 241 | $ | 624,622 | $ | 624,863 | $ | 478 | $ | 625,341 | |||||||||||||||||||||||||
Home equity lines and loans | 209 | — | — | 209 | 188,100 | 188,309 | 1,262 | 189,571 | |||||||||||||||||||||||||||||||||
Residential mortgage | 773 | 35 | — | 808 | 295,058 | 295,866 | 4,377 | 300,243 | |||||||||||||||||||||||||||||||||
Construction | — | — | — | — | 45,539 | 45,539 | 830 | 46,369 | |||||||||||||||||||||||||||||||||
Commercial and industrial | 334 | — | — | 334 | 324,586 | 324,920 | 3,539 | 328,459 | |||||||||||||||||||||||||||||||||
Consumer | 2 | 4 | — | 6 | 16,900 | 16,906 | 20 | 16,926 | |||||||||||||||||||||||||||||||||
Leases | 60 | 60 | — | 120 | 40,132 | 40,252 | 24 | 40,276 | |||||||||||||||||||||||||||||||||
$ | 1,619 | $ | 99 | $ | — | $ | 1,718 | $ | 1,534,937 | $ | 1,536,655 | $ | 10,530 | $ | 1,547,185 | ||||||||||||||||||||||||||
Accruing Loans and Leases | Nonaccrual | Total | |||||||||||||||||||||||||||||||||||||||
Loans and | Loans | ||||||||||||||||||||||||||||||||||||||||
30 – 59 | 60 – 89 | Over 89 | Total Past | Current | Total | Leases | and | ||||||||||||||||||||||||||||||||||
Days | Days | Days | Due | Accruing | Leases | ||||||||||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Loans and | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Leases | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | 704 | $ | 130 | $ | — | $ | 834 | $ | 544,893 | $ | 545,727 | $ | 631 | $ | 546,358 | |||||||||||||||||||||||||
Home equity lines and loans | 107 | 84 | — | 191 | 191,878 | 192,069 | 2,792 | 194,861 | |||||||||||||||||||||||||||||||||
Residential mortgage | 399 | 141 | — | 540 | 283,924 | 284,464 | 3,748 | 288,212 | |||||||||||||||||||||||||||||||||
Construction | — | — | 728 | 728 | 22,866 | 23,594 | 3,314 | 26,908 | |||||||||||||||||||||||||||||||||
Commercial and industrial | 376 | 50 | — | 426 | 287,688 | 288,114 | 3,506 | 291,620 | |||||||||||||||||||||||||||||||||
Consumer | 8 | 7 | — | 15 | 17,644 | 17,659 | 7 | 17,666 | |||||||||||||||||||||||||||||||||
Leases | 33 | 13 | — | 46 | 32,743 | 32,789 | 42 | 32,831 | |||||||||||||||||||||||||||||||||
$ | 1,627 | $ | 425 | $ | 728 | $ | 2,780 | $ | 1,381,636 | $ | 1,384,416 | $ | 14,040 | $ | 1,398,456 | ||||||||||||||||||||||||||
Rollforward of Corporation's Allowance for Loan and Leases Losses by Portfolio Segment | ' | ||||||||||||||||||||||||||||||||||||||||
The following table details the roll-forward of the Corporation’s allowance for loan and lease losses, by portfolio segment, for the twelve months ended December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Home | Residential | Construction | Commercial | Consumer | Leases | Unallocated | Total | ||||||||||||||||||||||||||||||||
Mortgage | Equity | Mortgage | and | ||||||||||||||||||||||||||||||||||||||
Lines and | Industrial | ||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 3,907 | $ | 1,857 | $ | 2,024 | $ | 1,019 | $ | 4,637 | $ | 189 | $ | 493 | $ | 299 | $ | 14,425 | |||||||||||||||||||||||
Charge-offs | (71 | ) | (513 | ) | (307 | ) | (737 | ) | (781 | ) | (194 | ) | (376 | ) | — | (2,979 | ) | ||||||||||||||||||||||||
Recoveries | 20 | 67 | 18 | 24 | 65 | 10 | 290 | — | 494 | ||||||||||||||||||||||||||||||||
Provision for loan and lease losses | (59 | ) | 793 | 711 | 539 | 1,090 | 254 | 197 | 50 | 3,575 | |||||||||||||||||||||||||||||||
Balance, December 31, 2013 | $ | 3,797 | $ | 2,204 | $ | 2,446 | $ | 845 | $ | 5,011 | $ | 259 | $ | 604 | $ | 349 | $ | 15,515 | |||||||||||||||||||||||
The following table details the roll-forward of the Corporation’s allowance for loan and lease losses, by portfolio segment, for the twelve months ended December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Home | Residential | Construction | Commercial | Consumer | Leases | Unallocated | Total | ||||||||||||||||||||||||||||||||
Mortgage | Equity | Mortgage | and | ||||||||||||||||||||||||||||||||||||||
Lines and | Industrial | ||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 3,165 | $ | 1,707 | $ | 1,592 | $ | 1,384 | $ | 3,816 | $ | 119 | $ | 532 | $ | 438 | $ | 12,753 | |||||||||||||||||||||||
Charge-offs | (234 | ) | (375 | ) | (209 | ) | (1,131 | ) | (458 | ) | (96 | ) | (364 | ) | — | (2,867 | ) | ||||||||||||||||||||||||
Recoveries | 4 | — | 75 | 15 | 143 | 7 | 292 | — | 536 | ||||||||||||||||||||||||||||||||
Provision for loan and lease losses | 972 | 525 | 566 | 751 | 1,136 | 159 | 33 | (139 | ) | 4,003 | |||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 3,907 | $ | 1,857 | $ | 2,024 | $ | 1,019 | $ | 4,637 | $ | 189 | $ | 493 | $ | 299 | $ | 14,425 | |||||||||||||||||||||||
The following table details the roll-forward of the Corporation’s allowance for loan and lease losses, by portfolio segment, for the twelve months ended December 31, 2011: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Home | Residential | Construction | Commercial | Consumer | Leases | Unallocated | Total | ||||||||||||||||||||||||||||||||
Mortgage | Equity | Mortgage | and | ||||||||||||||||||||||||||||||||||||||
Lines and | Industrial | ||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2010 | $ | 2,534 | $ | 1,563 | $ | 843 | $ | 633 | $ | 3,565 | $ | 115 | $ | 766 | $ | 256 | $ | 10,275 | |||||||||||||||||||||||
Charge-offs | (827 | ) | (514 | ) | (391 | ) | (1,174 | ) | (633 | ) | (92 | ) | (1,017 | ) | — | (4,648 | ) | ||||||||||||||||||||||||
Recoveries | — | 190 | — | — | 307 | 11 | 530 | — | 1,038 | ||||||||||||||||||||||||||||||||
Provision for loan and lease losses | 1,458 | 468 | 1,140 | 1,925 | 577 | 85 | 253 | 182 | 6,088 | ||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | $ | 3,165 | $ | 1,707 | $ | 1,592 | $ | 1,384 | $ | 3,816 | $ | 119 | $ | 532 | $ | 438 | $ | 12,753 | |||||||||||||||||||||||
Allocation of Allowance for Loan and Lease Losses by Portfolio Segment Based on Methodology Used to Evaluate Loans and Leases for Impairment | ' | ||||||||||||||||||||||||||||||||||||||||
The following table details the allocation of the allowance for loan and lease losses by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Home | Residential | Construction | Commercial | Consumer | Leases | Unallocated | Total | ||||||||||||||||||||||||||||||||
Mortgage | Equity | Mortgage | and | ||||||||||||||||||||||||||||||||||||||
Lines | Industrial | ||||||||||||||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance on loans and leases: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 121 | $ | 814 | $ | — | $ | 532 | $ | 52 | $ | — | $ | — | $ | 1,519 | |||||||||||||||||||||||
Collectively evaluated for impairment | 3,797 | 2,083 | 1,632 | 845 | 4,479 | 207 | 604 | 349 | 13,996 | ||||||||||||||||||||||||||||||||
Purchased credit-impaired* | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 3,797 | $ | 2,204 | $ | 2,446 | $ | 845 | $ | 5,011 | $ | 259 | $ | 604 | $ | 349 | $ | 15,515 | |||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Allowance on loans and leases: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 217 | $ | 667 | $ | 543 | $ | 919 | $ | 8 | $ | — | $ | — | $ | 2,354 | |||||||||||||||||||||||
Collectively evaluated for impairment | 3,894 | 1,640 | 1,357 | 451 | 3,718 | 181 | 493 | 299 | 12,033 | ||||||||||||||||||||||||||||||||
Purchased credit-impaired* | 13 | — | — | 25 | — | — | — | — | 38 | ||||||||||||||||||||||||||||||||
Total | $ | 3,907 | $ | 1,857 | $ | 2,024 | $ | 1,019 | $ | 4,637 | $ | 189 | $ | 493 | $ | 299 | $ | 14,425 | |||||||||||||||||||||||
Carrying Value for Loans and Leases by Portfolio Segment Based on Methodology Used to Evaluate Loans and Leases for Impairment one | ' | ||||||||||||||||||||||||||||||||||||||||
The following table details the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Home | Residential | Construction | Commercial | Consumer | Leases | Total | |||||||||||||||||||||||||||||||||
Mortgage | Equity Lines | Mortgage | and Industrial | ||||||||||||||||||||||||||||||||||||||
and Loans | |||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Balance of loans and leases: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 236 | $ | 1,428 | $ | 9,860 | $ | 1,172 | $ | 4,758 | $ | 52 | $ | — | $ | 17,506 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 616,077 | 188,128 | 290,345 | 44,715 | 323,384 | 16,874 | 40,276 | 1,519,799 | |||||||||||||||||||||||||||||||||
Purchased credit-impaired* | 9,028 | 15 | 38 | 482 | 317 | — | — | 9,880 | |||||||||||||||||||||||||||||||||
Total | $ | 625,341 | $ | 189,571 | $ | 300,243 | $ | 46,369 | $ | 328,459 | $ | 16,926 | $ | 40,276 | $ | 1,547,185 | |||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Balance of loans and leases: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 541 | $ | 3,403 | $ | 9,211 | $ | 4,631 | $ | 3,997 | $ | 7 | $ | — | $ | 21,790 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 535,506 | 191,439 | 278,951 | 20,785 | 287,367 | 17,659 | 32,831 | 1,364,538 | |||||||||||||||||||||||||||||||||
Purchased credit-impaired* | 10,311 | 19 | 50 | 1,492 | 256 | — | — | 12,128 | |||||||||||||||||||||||||||||||||
Total | $ | 546,358 | $ | 194,861 | $ | 288,212 | $ | 26,908 | $ | 291,620 | $ | 17,666 | $ | 32,831 | $ | 1,398,456 | |||||||||||||||||||||||||
* | Purchased credit-impaired loans are evaluated for impairment on an individual basis | ||||||||||||||||||||||||||||||||||||||||
Carrying Value of Loans and Leases by Portfolio Segment Based on the Credit Quality Indicators | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables detail the carrying value of loans and leases by portfolio segment based on the credit quality indicators used to allocate the allowance for loan and lease losses as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||||||
Credit Risk Profile by Internally Assigned Grade | |||||||||||||||||||||||||||||||||||||||||
Commercial | Construction | Commercial and | Total | ||||||||||||||||||||||||||||||||||||||
Mortgage | Industrial | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | 620,227 | $ | 538,470 | $ | 43,812 | $ | 16,504 | $ | 320,211 | $ | 278,167 | $ | 984,250 | $ | 833,141 | |||||||||||||||||||||||||
Special Mention | 2,793 | 2,215 | — | 1,317 | 387 | 6,256 | 3,180 | 9,788 | |||||||||||||||||||||||||||||||||
Substandard | 2,321 | 5,673 | 2,557 | 9,087 | 7,861 | 7,197 | 12,739 | 21,957 | |||||||||||||||||||||||||||||||||
Total | $ | 625,341 | $ | 546,358 | $ | 46,369 | $ | 26,908 | $ | 328,459 | $ | 291,620 | $ | 1,000,169 | $ | 864,886 | |||||||||||||||||||||||||
Credit Risk Profile Based on Payment Activity | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Residential | Home Equity | Consumer | Leases | Total | ||||||||||||||||||||||||||||||||||||
Mortgage | Lines and Loans | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||||||||||
Performing | $ | 295,866 | $ | 284,464 | $ | 188,309 | $ | 192,069 | $ | 16,906 | $ | 17,659 | $ | 40,252 | $ | 32,789 | $ | 541,333 | $ | 526,981 | |||||||||||||||||||||
Non-performing | 4,377 | 3,748 | 1,262 | 2,792 | 20 | 7 | 24 | 42 | 5,683 | 6,589 | |||||||||||||||||||||||||||||||
Total | $ | 300,243 | $ | 288,212 | $ | 189,571 | $ | 194,861 | $ | 16,926 | $ | 17,666 | $ | 40,276 | $ | 32,831 | $ | 547,016 | $ | 533,570 | |||||||||||||||||||||
Schedule of Balance of TDRs | ' | ||||||||||||||||||||||||||||||||||||||||
The following table presents the balance of TDRs as of the indicated dates: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||
TDRs included in nonperforming loans and leases | $ | 1,699 | $ | 3,106 | |||||||||||||||||||||||||||||||||||||
TDRs in compliance with modified terms | 7,277 | 8,008 | |||||||||||||||||||||||||||||||||||||||
Total TDRs | $ | 8,976 | $ | 11,114 | |||||||||||||||||||||||||||||||||||||
Loan and Lease Modifications Categorized as Troubled Debt Restructurings | ' | ||||||||||||||||||||||||||||||||||||||||
The following table presents information regarding loan and lease modifications granted during the twelve months ended December 31, 2013 that were categorized as TDRs: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Number of Contracts | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||||||||
Outstanding | Outstanding | ||||||||||||||||||||||||||||||||||||||||
Recorded Investment | Recorded Investment | ||||||||||||||||||||||||||||||||||||||||
Residential | 2 | $ | 674 | $ | 674 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 2 | 930 | 930 | ||||||||||||||||||||||||||||||||||||||
Home equity lines and loans | 2 | 40 | 40 | ||||||||||||||||||||||||||||||||||||||
Consumer | 1 | 33 | 33 | ||||||||||||||||||||||||||||||||||||||
Leases | 3 | 33 | 33 | ||||||||||||||||||||||||||||||||||||||
Total | 10 | $ | 1,710 | $ | 1,710 | ||||||||||||||||||||||||||||||||||||
The following table presents information regarding loan and lease modifications granted during the twelve months ended December 31, 2012 that were categorized as TDRs: | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Number of Contracts | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||||||||
Outstanding Recorded | Outstanding Recorded | ||||||||||||||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||||||||||||||
Residential | 3 | $ | 1,235 | $ | 1,235 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1 | 39 | 39 | ||||||||||||||||||||||||||||||||||||||
Home equity lines and loans | 5 | 908 | 919 | ||||||||||||||||||||||||||||||||||||||
Leases | 4 | 43 | 43 | ||||||||||||||||||||||||||||||||||||||
Total | 13 | $ | 2,225 | $ | 2,236 | ||||||||||||||||||||||||||||||||||||
Types of Loan and Lease Modifications | ' | ||||||||||||||||||||||||||||||||||||||||
The following table presents information regarding the types of loan and lease modifications made for the twelve months ended December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
Number of Contracts | |||||||||||||||||||||||||||||||||||||||||
Interest | Loan Term | Interest Rate | Interest-Only | Contractual | Forgiveness | ||||||||||||||||||||||||||||||||||||
Rate | Extension | Change and | Period | Payment | of Interest | ||||||||||||||||||||||||||||||||||||
Change | Term Extension | Reduction | |||||||||||||||||||||||||||||||||||||||
(Leases only) | |||||||||||||||||||||||||||||||||||||||||
Residential | — | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | 2 | — | — | |||||||||||||||||||||||||||||||||||
Home equity lines and loans | 1 | — | — | 1 | — | — | |||||||||||||||||||||||||||||||||||
Consumer | 1 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Leases | — | — | — | — | 3 | — | |||||||||||||||||||||||||||||||||||
Total | 2 | — | 1 | 3 | 3 | 1 | |||||||||||||||||||||||||||||||||||
The following table presents information regarding the types of loan and lease modifications made for the twelve months ended December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||
Number of Contracts | |||||||||||||||||||||||||||||||||||||||||
Interest Rate | Loan Term | Interest Rate | Interest Rate | Contractual | |||||||||||||||||||||||||||||||||||||
Change | Extension | Change and Term | Change with | Payment | |||||||||||||||||||||||||||||||||||||
Extension | Interest-Only | Reduction | |||||||||||||||||||||||||||||||||||||||
Period | (Leases only) | ||||||||||||||||||||||||||||||||||||||||
Residential. | — | 1 | 2 | — | — | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | 1 | — | — | ||||||||||||||||||||||||||||||||||||
Home equity lines and loans | 1 | — | 3 | 1 | — | ||||||||||||||||||||||||||||||||||||
Leases | — | — | — | — | 4 | ||||||||||||||||||||||||||||||||||||
Total | 1 | 1 | 6 | 1 | 4 | ||||||||||||||||||||||||||||||||||||
Summary of Recorded Investment and Principal Balance of Impaired Loans by Portfolio Segment | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables detail the recorded investment and principal balance of impaired loans by portfolio segment, their related allowance for loan and lease losses and interest income recognized for the twelve months ended December 31, 2013, 2012 and 2011 (purchased credit-impaired loans are not included in the tables): | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Recorded | Principal | Related | Average | Interest | Cash-Basis | |||||||||||||||||||||||||||||||||||
Investment** | Balance | Allowance | Principal | income | Interest | ||||||||||||||||||||||||||||||||||||
Balance | recognized | Income | |||||||||||||||||||||||||||||||||||||||
Recognized | |||||||||||||||||||||||||||||||||||||||||
As of or for the Twelve Months Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Impaired loans with related allowance: | |||||||||||||||||||||||||||||||||||||||||
Home equity lines and loans | $ | 277 | $ | 279 | $ | 121 | $ | 308 | $ | 6 | $ | — | |||||||||||||||||||||||||||||
Residential mortgage | 5,297 | 5,312 | 814 | 5,343 | 95 | — | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 2,985 | 3,100 | 532 | 3,210 | 82 | — | |||||||||||||||||||||||||||||||||||
Consumer | 52 | 54 | 52 | 49 | 3 | — | |||||||||||||||||||||||||||||||||||
Total | 8,611 | 8,745 | 1,519 | 8,910 | 186 | — | |||||||||||||||||||||||||||||||||||
Impaired loans* without related allowance: | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | 236 | 237 | — | 283 | — | — | |||||||||||||||||||||||||||||||||||
Home equity lines and loans | 1,151 | 1,159 | — | 1,252 | 6 | — | |||||||||||||||||||||||||||||||||||
Residential mortgage | 4,563 | 4,911 | — | 5,177 | 123 | — | |||||||||||||||||||||||||||||||||||
Construction | 1,172 | 2,134 | — | 3,452 | 27 | — | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 1,773 | 1,954 | — | 1,979 | 23 | — | |||||||||||||||||||||||||||||||||||
Total | 8,895 | 10,395 | — | 12,143 | 179 | — | |||||||||||||||||||||||||||||||||||
— | |||||||||||||||||||||||||||||||||||||||||
Grand total | $ | 17,506 | $ | 19,140 | $ | 1,519 | $ | 21,053 | $ | 365 | $ | — | |||||||||||||||||||||||||||||
* | The table above does not include the recorded investment of $63 thousand of impaired leases without a related allowance for loan and lease losses. | ||||||||||||||||||||||||||||||||||||||||
** | Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Recorded | Principal | Related | Average | Interest | Cash-Basis | |||||||||||||||||||||||||||||||||||
Investment** | Balance | Allowance | Principal | income | Interest | ||||||||||||||||||||||||||||||||||||
Balance | recognized | Income | |||||||||||||||||||||||||||||||||||||||
Recognized | |||||||||||||||||||||||||||||||||||||||||
As of or for the Twelve Months Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Impaired loans with related allowance: | |||||||||||||||||||||||||||||||||||||||||
Home equity lines and loans | $ | 1,261 | $ | 1,321 | $ | 217 | $ | 1,327 | $ | 42 | $ | — | |||||||||||||||||||||||||||||
Residential mortgage | 4,778 | 4,793 | 667 | 4,764 | 152 | — | |||||||||||||||||||||||||||||||||||
Construction | 2,564 | 2,564 | 543 | 3,272 | — | — | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 3,357 | 3,383 | 919 | 3,402 | 49 | — | |||||||||||||||||||||||||||||||||||
Consumer | 7 | 8 | 8 | 10 | — | — | |||||||||||||||||||||||||||||||||||
Total | 11,967 | 12,069 | 2,354 | 12,775 | 243 | — | |||||||||||||||||||||||||||||||||||
Impaired loans* without related allowance: | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | 541 | 574 | — | 581 | 14 | — | |||||||||||||||||||||||||||||||||||
Home equity lines and loans | 2,142 | 2,223 | — | 2,478 | 22 | — | |||||||||||||||||||||||||||||||||||
Residential mortgage | 4,433 | 4,741 | — | 4,735 | 154 | — | |||||||||||||||||||||||||||||||||||
Construction | 2,067 | 2,317 | — | 3,461 | 58 | — | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 640 | 639 | — | 645 | 16 | — | |||||||||||||||||||||||||||||||||||
Total | 9,823 | 10,494 | — | 11,900 | 264 | — | |||||||||||||||||||||||||||||||||||
— | |||||||||||||||||||||||||||||||||||||||||
Grand total | $ | 21,790 | $ | 22,563 | $ | 2,354 | $ | 24,675 | $ | 507 | $ | — | |||||||||||||||||||||||||||||
* | The table above does not include the recorded investment of $168 thousand of impaired leases without a related allowance for loan and lease losses. | ||||||||||||||||||||||||||||||||||||||||
** | Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Recorded | Principal | Related | Average | Interest | Cash-Basis | |||||||||||||||||||||||||||||||||||
Investment | Balance | Allowance | Principal | income | Interest | ||||||||||||||||||||||||||||||||||||
Balance | recognized | Income | |||||||||||||||||||||||||||||||||||||||
Recognized | |||||||||||||||||||||||||||||||||||||||||
As of or for the twelve months ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||||||
Impaired loans with related allowance: | |||||||||||||||||||||||||||||||||||||||||
Home equity lines and loans | $ | 448 | $ | 456 | $ | 75 | $ | 456 | $ | 1 | $ | — | |||||||||||||||||||||||||||||
Residential mortgage | 2,654 | 2,682 | 358 | 2,696 | 130 | — | |||||||||||||||||||||||||||||||||||
Construction | 4,853 | 6,054 | 640 | 6,478 | 73 | — | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 1,568 | 2,160 | 248 | 2,199 | 32 | — | |||||||||||||||||||||||||||||||||||
Total | 9,523 | 11,352 | 1,321 | 11,829 | 236 | — | |||||||||||||||||||||||||||||||||||
Impaired loans* without related allowance: | |||||||||||||||||||||||||||||||||||||||||
Home equity lines and loans | 2,266 | 2,310 | — | 2,316 | 46 | — | |||||||||||||||||||||||||||||||||||
Residential mortgage | 5,492 | 5,863 | — | 5,865 | 191 | — | |||||||||||||||||||||||||||||||||||
Construction | 1,209 | 1,213 | — | 1,326 | 56 | — | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 825 | 855 | — | 1,031 | 20 | — | |||||||||||||||||||||||||||||||||||
Consumer loans | 5 | 5 | — | 6 | 1 | — | |||||||||||||||||||||||||||||||||||
Total | 9,797 | 10,246 | — | 10,544 | 314 | — | |||||||||||||||||||||||||||||||||||
— | |||||||||||||||||||||||||||||||||||||||||
Grand total | $ | 19,320 | $ | 21,598 | $ | 1,321 | $ | 22,373 | $ | 550 | $ | — | |||||||||||||||||||||||||||||
* | The table above does not include the recorded investment of $680 thousand of impaired leases without a related allowance for loan and lease losses. | ||||||||||||||||||||||||||||||||||||||||
** | Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. |
Other_Real_Estate_Owned_Tables
Other Real Estate Owned (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Changes in Real Estate Assets | ' | ||||||||
The summary of the change in other real estate owned, which is included as a component of other assets on the Corporation’s Consolidated Balance Sheets, is as follows: | |||||||||
December 31, | |||||||||
(dollars in thousands) | 2013 | 2012 | |||||||
Balance January 1 | $ | 906 | $ | 549 | |||||
Additions | 853 | 949 | |||||||
Capitalized cost | 485 | 61 | |||||||
Sales | (1,389 | ) | (653 | ) | |||||
Balance December 31 | $ | 855 | $ | 906 | |||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Summary of Premises and Equipment | ' | ||||||||
A summary of premises and equipment is as follows: | |||||||||
December 31, | |||||||||
(dollars in thousands) | 2013 | 2012 | |||||||
Land | $ | 5,306 | $ | 5,306 | |||||
Buildings | 23,557 | 22,966 | |||||||
Furniture and equipment | 23,379 | 21,598 | |||||||
Leasehold improvements | 14,979 | 13,729 | |||||||
Construction in progress | 571 | 1,925 | |||||||
Less: accumulated depreciation | (35,996 | ) | (34,354 | ) | |||||
Total | $ | 31,796 | $ | 31,170 | |||||
Future Minimum Cash Rent Commitments under Various Operating Leases | ' | ||||||||
Future minimum cash rent commitments under various operating leases as of December 31, 2013 are as follows: | |||||||||
(dollars in thousands) | |||||||||
2014 | $ | 3,061 | |||||||
2015 | 3,107 | ||||||||
2016 | 2,960 | ||||||||
2017 | 2,980 | ||||||||
2018 | 3,030 | ||||||||
2019 and thereafter | 37,633 | ||||||||
Total | $ | 52,771 | |||||||
Mortgage_Servicing_Rights_MSRs1
Mortgage Servicing Rights ("MSR"s) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summarized Corporation's Activity Related to MSRs | ' | ||||||||||||
The following summarizes the Corporation’s activity related to MSRs for the years ended December 31: | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Balance, January 1 | $ | 4,491 | $ | 4,041 | $ | 4,925 | |||||||
Additions | 1,002 | 1,579 | 651 | ||||||||||
Amortization | (740 | ) | (966 | ) | (749 | ) | |||||||
Impairment | (3 | ) | (163 | ) | (786 | ) | |||||||
Balance, December 31 | $ | 4,750 | $ | 4,491 | $ | 4,041 | |||||||
Fair value | $ | 5,733 | $ | 4,638 | $ | 4,041 | |||||||
Loans serviced for others | $ | 628,879 | $ | 595,317 | $ | 574,422 | |||||||
Summarized Corporation's Activity Related to Changes in Impairment Valuation Allowance of MSRs | ' | ||||||||||||
The following summarizes the Corporation’s activity related to changes in the impairment valuation allowance of MSRs for the years ended December 31: | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Balance, January 1 | $ | (1,545 | ) | $ | (1,382 | ) | $ | (596 | ) | ||||
Impairment | (126 | ) | (278 | ) | (800 | ) | |||||||
Recovery | 123 | 115 | 14 | ||||||||||
Balance, December 31 | $ | (1,548 | ) | $ | (1,545 | ) | $ | (1,382 | ) | ||||
Other MSR Information | ' | ||||||||||||
Other MSR Information—At December 31, 2013, key economic assumptions and the sensitivity of the current fair value of MSRs to immediate 10 and 20 percent adverse changes in those assumptions are as follows: | |||||||||||||
(dollars in thousands) | |||||||||||||
Fair value amount of MSRs | $ | 5,733 | |||||||||||
Weighted average life (in years) | 6.3 | ||||||||||||
Prepayment speeds (constant prepayment rate)* | 11.1 | % | |||||||||||
Impact on fair value: | |||||||||||||
10% adverse change | $ | (206 | ) | ||||||||||
20% adverse change | $ | (402 | ) | ||||||||||
Discount rate | 10.5 | % | |||||||||||
Impact on fair value: | |||||||||||||
10% adverse change | $ | (231 | ) | ||||||||||
20% adverse change | $ | (445 | ) | ||||||||||
* | Represents the weighted average prepayment rate for the life of the MSR asset. |
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Components of Deposits | ' | ||||||||
The following table details the components of deposits: | |||||||||
As of December 31, | |||||||||
(dollars in thousands) | 2013 | 2012 | |||||||
Savings | $ | 135,240 | $ | 129,091 | |||||
NOW accounts* | 266,787 | 270,279 | |||||||
Market rate accounts* | 587,247 | 604,632 | |||||||
Time deposits, less than $100 | 88,056 | 121,994 | |||||||
Time deposits, $100 or more | 52,738 | 96,592 | |||||||
Wholesale time deposits | 34,639 | 12,421 | |||||||
Total interest-bearing deposits | 1,164,707 | 1,235,009 | |||||||
Non-interest-bearing deposits | 426,640 | 399,673 | |||||||
Total deposits | $ | 1,591,347 | $ | 1,634,682 | |||||
* | Includes wholesale deposits. | ||||||||
Schedule of Maturities of Retail Time Deposits | ' | ||||||||
The following tables detail the maturities of retail time deposits: | |||||||||
As of December 31, 2013 | |||||||||
(dollars in thousands) | $100 | Less than | |||||||
or more | $100 | ||||||||
Maturing during: | |||||||||
2014 | $ | 41,622 | $ | 61,993 | |||||
2015 | 4,818 | 15,818 | |||||||
2016 | 1,846 | 3,381 | |||||||
2017 | 2,127 | 3,239 | |||||||
2018 | 2,325 | 3,602 | |||||||
2019 and thereafter | — | 23 | |||||||
Total | $ | 52,738 | $ | 88,056 | |||||
Schedule of Maturities of Wholesale Time Deposits | ' | ||||||||
The following tables detail the maturities of wholesale time deposits: | |||||||||
As of December 31, 2013 | |||||||||
(dollars in thousands) | $100 | Less than | |||||||
or more | $100 | ||||||||
Maturing during: | |||||||||
2014 | $ | 8,303 | $ | 191 | |||||
2015 | 9,967 | — | |||||||
2016 | 4,983 | — | |||||||
2017 | 11,195 | — | |||||||
Total | $ | 34,448 | $ | 191 | |||||
Shortterm_and_Other_Borrowings1
Short-term and Other Borrowings (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Summary of Short-Term Borrowings | ' | ||||||||||||||||||||||||||||
A summary of short-term borrowings is as follows: | |||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||
Overnight fed funds | $ | — | $ | — | |||||||||||||||||||||||||
Repurchase agreements | 10,891 | 9,403 | |||||||||||||||||||||||||||
Total short-term borrowings | $ | 10,891 | $ | 9,403 | |||||||||||||||||||||||||
Information Concerning Short-Term Borrowings | ' | ||||||||||||||||||||||||||||
The following table sets forth information concerning short-term borrowings: | |||||||||||||||||||||||||||||
As of or Twelve Months Ended | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||
Balance at period-end | $ | 10,891 | $ | 9,403 | |||||||||||||||||||||||||
Maximum amount outstanding at any month end | 75,588 | 19,029 | |||||||||||||||||||||||||||
Average balance outstanding during the period | 16,457 | 13,525 | |||||||||||||||||||||||||||
Weighted-average interest rate: | |||||||||||||||||||||||||||||
As of the period-end | 0.1 | % | 0.15 | % | |||||||||||||||||||||||||
Paid during the period | 0.15 | % | 0.16 | % | |||||||||||||||||||||||||
Maturity of FHLB Advances and Other Borrowings | ' | ||||||||||||||||||||||||||||
The following table presents the remaining periods until maturity of the FHLB advances and other borrowings: | |||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||||||
Within one year | $ | 3,917 | $ | 35,458 | |||||||||||||||||||||||||
Over one year through five years | 196,727 | 104,244 | |||||||||||||||||||||||||||
Over five years through ten years | 5,000 | 21,613 | |||||||||||||||||||||||||||
Over ten years | — | — | |||||||||||||||||||||||||||
Total | $ | 205,644 | $ | 161,315 | |||||||||||||||||||||||||
Rate and Maturity Information on Federal Home Loan Bank Advance and Other Borrowings | ' | ||||||||||||||||||||||||||||
The following table presents rate and maturity information on FHLB advances and other borrowings: | |||||||||||||||||||||||||||||
Maturity Range* | Weighted | Coupon Rate | Balance at | ||||||||||||||||||||||||||
Average | December 31, | ||||||||||||||||||||||||||||
Description | From | To | Rate | From | To | 2013 | 2012 | ||||||||||||||||||||||
Fixed amortizing | 4/9/15 | 4/9/15 | 3.57 | % | 3.57 | % | 3.57 | % | $ | 2,102 | $ | 4,285 | |||||||||||||||||
Adjustable amortizing** | 12/31/16 | 12/31/16 | 3.25 | % | 3.25 | % | 3.25 | % | 7,050 | 9,400 | |||||||||||||||||||
Bullet maturity—fixed rate | 3/23/15 | 5/28/19 | 1.37 | % | 0.58 | % | 2.41 | % | 140,000 | 90,000 | |||||||||||||||||||
Bullet maturity—variable rate | 6/25/15 | 11/28/17 | 0.45 | % | 0.38 | % | 0.54 | % | 35,000 | 15,000 | |||||||||||||||||||
Convertible-fixed | 1/3/18 | 8/20/18 | 2.95 | % | 2.58 | % | 3.5 | % | 21,492 | 42,630 | |||||||||||||||||||
Total | $ | 205,644 | $ | 161,315 | |||||||||||||||||||||||||
* | Maturity range refers to December 31, 2013 balances | ||||||||||||||||||||||||||||
** | Loans from correspondent banks other than FHLB |
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||
Derivatives and Hedging Activities | ' | ||||||||||||||||||||||||||||||
The following table details the Corporation’s derivative positions as of the balance sheet dates indicated: | |||||||||||||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Notional | Trade Date | Effective | Maturity Date | Receive (Variable) Index | Current | Pay Fixed | Fair Value of | ||||||||||||||||||||||||
Amount | Date | Projected | Swap Rate | Asset | |||||||||||||||||||||||||||
Receive Rate | (Liability) | ||||||||||||||||||||||||||||||
$15,000 | 12/13/12 | 11/30/15 | 11/28/22 | US 3-Month LIBOR | 3.597 | % | 2.376 | % | $ | 1,142 | |||||||||||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Notional | Trade Date | Effective | Maturity Date | Receive (Variable) | Current | Pay Fixed | Fair Value of | ||||||||||||||||||||||||
Amount | Date | Index | Projected | Swap Rate | Asset | ||||||||||||||||||||||||||
Receive Rate | (Liability) | ||||||||||||||||||||||||||||||
$15,000 | 12/13/12 | 11/30/15 | 11/28/22 | US 3-Month LIBOR | 2.338 | % | 2.376 | % | $ | (36 | ) |
Disclosure_about_Fair_Value_of1
Disclosure about Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Carrying Value and Estimated Fair Value of Assets | ' | ||||||||||||||||||
The carrying amount and estimated fair value of the Corporation’s financial instruments are as follows: | |||||||||||||||||||
As of December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(dollars in thousands) | Fair Value | Carrying | Estimated | Carrying | Estimated | ||||||||||||||
Hierarchy | Amount | Fair Value | Amount | Fair Value | |||||||||||||||
Level* | |||||||||||||||||||
Financial assets: | |||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 81,071 | $ | 81,071 | $ | 175,686 | $ | 175,686 | ||||||||||
Investment securities—available for sale | See Note 13 | 285,808 | 285,808 | 316,614 | 316,614 | ||||||||||||||
Investment securities—trading | See Note 13 | 3,437 | 3,437 | 1,447 | 1,447 | ||||||||||||||
Loans held for sale | Level 2 | 1,350 | 1,350 | 3,412 | 3,482 | ||||||||||||||
Net portfolio loans and leases | Level 3 | 1,531,670 | 1,534,631 | 1,384,031 | 1,412,619 | ||||||||||||||
Mortgage servicing rights | Level 3 | 4,750 | 5,733 | 4,491 | 4,638 | ||||||||||||||
Other assets | Level 3 | 21,819 | 21,819 | 21,735 | 21,735 | ||||||||||||||
Total financial assets | $ | 1,929,905 | $ | 1,933,849 | $ | 1,907,416 | $ | 1,936,221 | |||||||||||
Financial liabilities: | |||||||||||||||||||
Deposits | Level 2 | $ | 1,591,347 | $ | 1,591,215 | $ | 1,634,682 | $ | 1,635,374 | ||||||||||
Short-term borrowings | Level 2 | 10,891 | 10,891 | 9,403 | 9,403 | ||||||||||||||
FHLB advances and other borrowings | Level 2 | 205,644 | 205,149 | 161,315 | 164,273 | ||||||||||||||
Other liabilities | Level 2 | 23,885 | 23,885 | 26,921 | 26,921 | ||||||||||||||
Total financial liabilities | $ | 1,831,767 | $ | 1,831,140 | $ | 1,832,321 | $ | 1,835,971 | |||||||||||
* | see Note 13 in the Notes to Consolidated Financial Statements for a description of hierarchy levels |
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Fair Value of Assets Measured on a Recurring and Non-Recurring Basis | ' | ||||||||||||||||
The following tables summarize the assets at December 31, 2013 and 2012 that are recognized on the Corporation’s balance sheet using fair value measurement determined based on the differing levels of input. | |||||||||||||||||
Fair value of assets measured on a recurring basis for the year ended December 31, 2013: | |||||||||||||||||
(dollars in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Investment securities (available for sale and trading): | |||||||||||||||||
Obligations of U.S. government & agencies | $ | 69.6 | $ | — | $ | 69.6 | $ | — | |||||||||
Obligations of state & political subdivisions | 37 | — | 37 | — | |||||||||||||
Mortgage-backed securities | 119.4 | — | 119.4 | — | |||||||||||||
Collateralized mortgage obligations | 44.2 | — | 44.2 | — | |||||||||||||
Mutual funds | 14.9 | 14.9 | — | — | |||||||||||||
Other debt securities | 4.1 | — | 4.1 | — | |||||||||||||
Total assets measured on a recurring basis at fair value | $ | 289.2 | $ | 14.9 | $ | 274.3 | $ | 0 | |||||||||
Fair value of assets measured on a non-recurring basis at December 31, 2013: | |||||||||||||||||
(dollars in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Mortgage servicing rights | $ | 0.2 | $ | — | $ | — | $ | 0.2 | |||||||||
Impaired loans and leases | 16.1 | — | — | 16.1 | |||||||||||||
OREO and other repossessed property | 0.9 | — | — | 0.9 | |||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | 17.2 | $ | — | $ | — | $ | 17.2 | |||||||||
Fair value of assets measured on a recurring basis for the year ended December 31, 2012: | |||||||||||||||||
(dollars in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Investment securities (available for sale and trading): | |||||||||||||||||
Obligations of U.S. government & agencies | $ | 73.9 | $ | — | $ | 73.9 | $ | — | |||||||||
Obligations of state & political subdivisions | 30.4 | — | 30.4 | — | |||||||||||||
Mortgage-backed securities | 131.8 | — | 131.8 | — | |||||||||||||
Collateralized mortgage obligations | 62.7 | — | 62.7 | — | |||||||||||||
Mutual funds | 15 | 15 | — | — | |||||||||||||
Investment certificates of deposit | 2.3 | — | 2.3 | — | |||||||||||||
Other debt securities | 1.9 | — | 1.9 | — | |||||||||||||
Total assets measured on a recurring basis at fair value | $ | 318 | $ | 15 | $ | 303 | $ | 0 | |||||||||
Fair value of assets measured on a non-recurring basis at December 31, 2012: | |||||||||||||||||
(dollars in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Mortgage servicing rights | $ | 0.9 | $ | — | $ | — | $ | 0.9 | |||||||||
Impaired loans and leases | 19.7 | — | — | 19.7 | |||||||||||||
OREO and other repossessed property | 0.9 | — | — | 0.9 | |||||||||||||
Total assets measured at fair value on a non-recurring basis | $ | 21.5 | $ | — | $ | — | $ | 21.5 | |||||||||
Pension_and_Postretirement_Ben1
Pension and Postretirement Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Actuarial Assumptions used to Determine Benefit Obligations | ' | ||||||||||||||||||||||||
Actuarial Assumptions used to determine benefit obligations as of December 31 of the years indicated: | |||||||||||||||||||||||||
QDBP | SERP I and SERP | PRBP | |||||||||||||||||||||||
II | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Discount rate | 4.6 | % | 3.7 | % | 4.6 | % | 3.7 | % | 4.6 | % | 3.7 | % | |||||||||||||
Rate of increase for future compensation | N/A | N/A | 3.5 | % | 3.5 | % | N/A | N/A | |||||||||||||||||
Expected long-term rate of return on plan assets | 7.5 | % | 7.5 | % | N/A | N/A | N/A | N/A | |||||||||||||||||
Changes in Benefit Obligations and Plan Assets | ' | ||||||||||||||||||||||||
Changes in Benefit Obligations and Plan Assets: | |||||||||||||||||||||||||
QDBP | SERP I & SERP | PRBP | |||||||||||||||||||||||
II | |||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Change in benefit obligations | |||||||||||||||||||||||||
Benefit obligation at January 1 | $ | 40,825 | $ | 38,056 | $ | 6,693 | $ | 5,862 | $ | 842 | $ | 913 | |||||||||||||
Service cost | — | — | 71 | 243 | — | — | |||||||||||||||||||
Interest cost | 1,484 | 1,576 | 188 | 243 | 29 | 36 | |||||||||||||||||||
Plan participants contribution | — | — | — | — | 38 | 49 | |||||||||||||||||||
Actuarial (gain) loss | (4,145 | ) | 2,973 | 10 | 491 | (65 | ) | 36 | |||||||||||||||||
Curtailments | — | — | (2,808 | ) | — | — | — | ||||||||||||||||||
Benefits paid | (1,798 | ) | (1,780 | ) | (146 | ) | (146 | ) | (156 | ) | (192 | ) | |||||||||||||
Benefit obligation at December 31 | $ | 36,366 | $ | 40,825 | $ | 4,008 | $ | 6,693 | $ | 688 | $ | 842 | |||||||||||||
Change in plan assets | |||||||||||||||||||||||||
Fair value of plan assets at January 1 | $ | 40,666 | $ | 38,295 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Actual return on plan assets | 6,705 | 4,151 | — | — | — | — | |||||||||||||||||||
Employer contribution | — | — | 146 | 146 | 118 | 143 | |||||||||||||||||||
Plan participants’ contribution | — | — | — | — | 38 | 49 | |||||||||||||||||||
Benefits paid | (1,798 | ) | (1,780 | ) | (146 | ) | (146 | ) | (156 | ) | (192 | ) | |||||||||||||
Fair value of plan assets at December 31 | $ | 45,573 | $ | 40,666 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Funded status at year end (plan assets less benefit obligations) | $ | 9,207 | $ | (159 | ) | $ | (4,008 | ) | $ | (6,693 | ) | $ | (688 | ) | $ | (842 | ) | ||||||||
Amounts included in the consolidated balance sheet as other assets (liabilities) and accumulated other comprehensive income including the following: | |||||||||||||||||||||||||
For the Twelve Months Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Prepaid benefit cost/(accrued liability) | $ | 16,346 | $ | 16,573 | $ | (3,201 | ) | $ | (3,669 | ) | $ | (250 | ) | $ | (263 | ) | |||||||||
Net actuarial loss | (7,139 | ) | (16,732 | ) | (790 | ) | (2,169 | ) | (438 | ) | (579 | ) | |||||||||||||
Prior service cost | — | — | (17 | ) | (855 | ) | — | — | |||||||||||||||||
Unrecognized net initial obligation | — | — | — | — | — | — | |||||||||||||||||||
Net amount recognized | $ | 9,207 | $ | (159 | ) | $ | (4,008 | ) | $ | (6,693 | ) | $ | (688 | ) | $ | (842 | ) | ||||||||
Components of Net Periodic Pension Costs | ' | ||||||||||||||||||||||||
The following tables provide the components of net periodic pension costs for the periods indicated: | |||||||||||||||||||||||||
QDBP Net Periodic Pension Cost | For the Twelve Months Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | |||||||||||||||||||
Interest cost | 1,484 | 1,576 | 1,708 | ||||||||||||||||||||||
Expected return on plan assets | (2,981 | ) | (2,804 | ) | (2,214 | ) | |||||||||||||||||||
Amortization of prior service cost | — | — | — | ||||||||||||||||||||||
Recognition of net actuarial loss | 1,724 | 1,786 | 899 | ||||||||||||||||||||||
Curtailment | — | — | — | ||||||||||||||||||||||
Net periodic pension cost | $ | 227 | $ | 558 | $ | 393 | |||||||||||||||||||
SERP I and SERP II Periodic Pension Cost | For the Twelve Months Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Service cost | $ | 71 | $ | 243 | $ | 230 | |||||||||||||||||||
Interest cost | 188 | 243 | 248 | ||||||||||||||||||||||
Gain on curtailment | (690 | ) | — | — | |||||||||||||||||||||
Amortization of prior service cost | 31 | 82 | 82 | ||||||||||||||||||||||
Recognition of net actuarial loss | 78 | 86 | 49 | ||||||||||||||||||||||
Net periodic pension (benefit) cost | $ | (322 | ) | $ | 654 | $ | 609 | ||||||||||||||||||
PRBP Net Periodic Pension Cost | For the Twelve Months Ended December 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | |||||||||||||||||||
Interest cost | 29 | 36 | 48 | ||||||||||||||||||||||
Settlement | — | — | — | ||||||||||||||||||||||
Amortization of transition obligation | — | 26 | 26 | ||||||||||||||||||||||
Amortization of prior service cost | — | — | (55 | ) | |||||||||||||||||||||
Recognition of net actuarial loss | 76 | 79 | 77 | ||||||||||||||||||||||
Net periodic pension cost | $ | 105 | $ | 141 | $ | 96 | |||||||||||||||||||
For the Twelve Months Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Discount Rate Used in the Calculation of Periodic Pension Costs | 3.70 | % | 4.20 | % | 5.30 | % | |||||||||||||||||||
Details of Plan Asset Allocation and Qualified Defined Benefit Plan's Policy Asset Allocation Range | ' | ||||||||||||||||||||||||
The information in this section pertains to the assets of the QDBP. The PRBP, SERP I and SERP II are unfunded plans and, as such, have no related plan assets. | |||||||||||||||||||||||||
The following table details the asset allocation and the QDBP’s policy asset allocation range as of the dates indicated | |||||||||||||||||||||||||
2013 Plan Policy | 2012 Plan Policy | Percentage of | |||||||||||||||||||||||
Asset Allocation | Asset Allocation | QDBP Plan | |||||||||||||||||||||||
Range** | Range** | Assets as of | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Asset Category | |||||||||||||||||||||||||
Equity securities* | 50% to 65% | 50% to 65% | 63 | % | 61 | % | |||||||||||||||||||
Fixed-income investments | 10% to 30% | 10% to 30% | 14 | % | 19 | % | |||||||||||||||||||
Alternative investments | 0% to 30% | 0% to 30% | 20 | % | 14 | % | |||||||||||||||||||
Cash reserves** | 1% to 5% | 1% to 5% | 3 | % | 6 | % | |||||||||||||||||||
Total | 100 | % | 100 | % | |||||||||||||||||||||
* | Includes Bryn Mawr Bank Corporation common stock in the amount of $951 thousand, or 2.1%, and $702 thousand, or 1.7%, at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||
** | Asset categories that fall outside the asset allocation range (policy) are outside the range on a short-term basis and is often related to the timing of plan funding and subsequent investment. Reallocation is done regularly in order to adhere to the plan’s asset allocation policy | ||||||||||||||||||||||||
Fair Value of Qualified Defined Benefit Plan Assets Measured on Recurring Basis | ' | ||||||||||||||||||||||||
The fair value of the QDBP assets measured on a recurring basis as of December 31, 2013: | |||||||||||||||||||||||||
(dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,218 | $ | 1,218 | $ | — | $ | — | |||||||||||||||||
Alternative investments* | 9,196 | 5,747 | 3,449 | — | |||||||||||||||||||||
Common stocks | 2,698 | 2,698 | — | — | |||||||||||||||||||||
Equity mutual funds | 26,187 | 26,187 | — | — | |||||||||||||||||||||
Bond mutual funds | 6,274 | 6,274 | — | — | |||||||||||||||||||||
Total assets measured on a recurring basis at fair value | $ | 45,573 | $ | 42,124 | $ | 3,449 | $ | — | |||||||||||||||||
* | Alternative investments include exchange-traded products which are considered Level 1 and hedge fund investments which are considered Level 2. | ||||||||||||||||||||||||
The fair value of the QDBP assets measured on a recurring basis as of December 31, 2012: | |||||||||||||||||||||||||
(dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Cash and cash equivalents | $ | 2,576 | $ | 2,576 | $ | — | $ | — | |||||||||||||||||
Alternative investments* | 5,664 | 2,269 | 3,395 | — | |||||||||||||||||||||
Common stocks | 703 | 703 | — | — | |||||||||||||||||||||
Equity mutual funds | 23,950 | 23,950 | — | — | |||||||||||||||||||||
Bond mutual funds | 7,773 | 7,773 | — | — | |||||||||||||||||||||
Total assets measured on a recurring basis at fair value | $ | 40,666 | $ | 37,271 | $ | 3,395 | $ | — | |||||||||||||||||
Expected Future Services, Expected to Be Paid Over Next Ten Years | ' | ||||||||||||||||||||||||
The following benefit payments, which reflect expected future services, are expected to be paid over the next ten years: | |||||||||||||||||||||||||
(dollars in thousands) | QDBP | SERP I & SERP II | PRBP | ||||||||||||||||||||||
Fiscal year ending | |||||||||||||||||||||||||
2014 | $ | 1,863 | $ | 146 | $ | 117 | |||||||||||||||||||
2015 | $ | 1,948 | $ | 260 | $ | 106 | |||||||||||||||||||
2016 | $ | 1,976 | $ | 258 | $ | 95 | |||||||||||||||||||
2017 | $ | 1,975 | $ | 255 | $ | 84 | |||||||||||||||||||
2018 | $ | 2,029 | $ | 252 | $ | 74 | |||||||||||||||||||
2019-2022 | $ | 10,846 | $ | 1,340 | $ | 240 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Components of Accumulated Other Comprehensive (Loss) Income | ' | ||||||||||||||||
The following table details the components of accumulated other comprehensive (loss) income for the twelve months ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
(dollars in thousands) | Net Change in | Net Change in | Net Change in | Accumulated | |||||||||||||
Unrealized Gains | Fair Value of | Unfunded | Other | ||||||||||||||
on Available-for- | Derivative | Pension | Comprehensive | ||||||||||||||
Sale Investment | Used for Cash | Liability | Loss | ||||||||||||||
Securities | Flow Hedge | ||||||||||||||||
Balance, December 31, 2010 | $ | 1,054 | $ | — | $ | (7,811 | ) | $ | (6,757 | ) | |||||||
Net change | 738 | — | (5,346 | ) | (4,608 | ) | |||||||||||
Balance, December 31, 2011 | $ | 1,792 | $ | — | $ | (13,157 | ) | $ | (11,365 | ) | |||||||
Balance, December 31, 2011 | $ | 1,792 | $ | — | $ | (13,157 | ) | $ | (11,365 | ) | |||||||
Net change | 1,372 | (23 | ) | (62 | ) | 1,287 | |||||||||||
Balance, December 31, 2012 | $ | 3,164 | $ | (23 | ) | $ | (13,219 | ) | $ | (10,078 | ) | ||||||
Balance, December 31, 2012 | $ | 3,164 | $ | (23 | ) | $ | (13,219 | ) | $ | (10,078 | ) | ||||||
Net change | (4,021 | ) | 766 | 7,768 | 4,513 | ||||||||||||
Balance, December 31, 2013 | $ | (857 | ) | $ | 743 | $ | (5,451 | ) | $ | (5,565 | ) | ||||||
Amounts Reclassified from Each Component of Accumulated Other Comprehensive (Loss) Income | ' | ||||||||||||||||
The following tables detail the amounts reclassified from each component of accumulated other comprehensive loss for the twelve month periods ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Amount Reclassified from Accumulated Other | |||||||||||||||||
Comprehensive Loss | |||||||||||||||||
Description of Accumulated Other | For The Twelve Months | Affected Income Statement | |||||||||||||||
Comprehensive Loss Component | Ended December 31, | Category | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Net unrealized gain on investment securities available for sale: | |||||||||||||||||
Realization of loss (gain) on sale of investment securities available for sale | $ | (8 | ) | $ | 1,415 | $ | 1,783 | Net (loss) gain on sale of available for sale investment securities | |||||||||
3 | (495 | ) | (624 | ) | Less: income tax benefit (expense) | ||||||||||||
$ | (5 | ) | $ | 920 | $ | 1,159 | Net of income tax | ||||||||||
Unfunded pension liability: | |||||||||||||||||
Amortization of net loss included in net periodic pension costs* | $ | 1,878 | $ | 1,951 | $ | 1,025 | Employee benefits | ||||||||||
Amortization of prior service cost included in net periodic pension costs* | 31 | 82 | 27 | Employee benefits | |||||||||||||
Amortization of transition obligation included in net periodic pension costs* | — | 26 | 26 | Employee benefits | |||||||||||||
Gain on curtailment of SERP II | (690 | ) | — | — | Net gain on curtailment of nonqualified pension plan | ||||||||||||
1,219 | 2,059 | 1,078 | Total expense before income tax benefit | ||||||||||||||
427 | 721 | 377 | Less: income tax benefit | ||||||||||||||
$ | 792 | $ | 1,338 | $ | 701 | Net of income tax | |||||||||||
* | Accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 15—Pension and Other Post-Retirement Benefit Plans |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Schedule of Components of Net Deferred Tax Asset | ' | ||||||||||||||||||||||||
Components of Net Deferred Tax Asset: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Loan and lease loss reserve | $ | 6,124 | $ | 6,010 | |||||||||||||||||||||
Other reserves | 1,190 | 1,506 | |||||||||||||||||||||||
Net operating loss carry-forward | 1,841 | 2,187 | |||||||||||||||||||||||
Alternative minimum tax credits | 567 | 568 | |||||||||||||||||||||||
Amortizing fair value adjustments, FKF merger | 2,367 | 2,778 | |||||||||||||||||||||||
Unrealized depreciation of available for sale securities | 462 | — | |||||||||||||||||||||||
Defined benefit plans | 4,142 | 8,494 | |||||||||||||||||||||||
Total deferred tax asset | 16,693 | 21,543 | |||||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Other reserves | (219 | ) | (165 | ) | |||||||||||||||||||||
QDBP | (5,721 | ) | (5,800 | ) | |||||||||||||||||||||
Originated MSRs | (1,663 | ) | (1,572 | ) | |||||||||||||||||||||
Unrealized appreciation of derivative used for cash flow hedge | (400 | ) | — | ||||||||||||||||||||||
Unrealized appreciation of available for sale securities | — | (1,703 | ) | ||||||||||||||||||||||
Total deferred tax liability | (8,003 | ) | (9,240 | ) | |||||||||||||||||||||
Total net deferred tax asset | $ | 8,690 | $ | 12,303 | |||||||||||||||||||||
Components of Provision for Income Taxes | ' | ||||||||||||||||||||||||
The provision (benefit) for income taxes consists of the following: | |||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Current | $ | 11,391 | $ | 11,575 | $ | 6,231 | |||||||||||||||||||
Deferred | 1,195 | (505 | ) | 3,310 | |||||||||||||||||||||
Total | $ | 12,586 | $ | 11,070 | $ | 9,541 | |||||||||||||||||||
Schedule of Applicable Income Taxes Differed from Amount Derived by Applying Statutory Federal Tax Rate to Income | ' | ||||||||||||||||||||||||
Applicable income taxes differed from the amount derived by applying the statutory federal tax rate to income as follows: | |||||||||||||||||||||||||
(dollars in thousands) | 2013 | Tax | 2012 | Tax | 2011 | Tax | |||||||||||||||||||
Rate | Rate | Rate | |||||||||||||||||||||||
Computed tax expense at statutory federal rate | $ | 12,960 | 35 | % | $ | 11,276 | 35 | % | $ | 10,200 | 35 | % | |||||||||||||
Tax-exempt income | (414 | ) | (1.1 | )% | (382 | ) | (1.2 | )% | (395 | ) | (1.4 | )% | |||||||||||||
Other, net | 40 | 0.1 | % | 176 | 0.5 | % | (264 | ) | (0.9 | )% | |||||||||||||||
Total income tax expense | $ | 12,586 | 34 | % | $ | 11,070 | 34.3 | % | $ | 9,541 | 32.7 | % | |||||||||||||
Stock_Based_Compensation_Table
Stock -Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Remaining Shares Authorized to Be Granted for Options, Restricted Stock Awards and Performance Stock Awards | ' | ||||||||||||||||||||||||||||||||||||
The following table summarizes the remaining shares authorized to be granted for options, RSAs and PSAs: | |||||||||||||||||||||||||||||||||||||
Shares | |||||||||||||||||||||||||||||||||||||
Authorized | |||||||||||||||||||||||||||||||||||||
for Grant | |||||||||||||||||||||||||||||||||||||
Balance, December 31, 2010 | 425,884 | ||||||||||||||||||||||||||||||||||||
RSAs granted—four year cliff-vesting | (15,648 | ) | |||||||||||||||||||||||||||||||||||
RSAs granted—three year cliff-vesting | (14,093 | ) | |||||||||||||||||||||||||||||||||||
PSAs granted—three year cliff-vesting | (60,238 | ) | |||||||||||||||||||||||||||||||||||
Unexercised options expired | 19,330 | ||||||||||||||||||||||||||||||||||||
Unexercised options cancelled | 19,464 | ||||||||||||||||||||||||||||||||||||
PSAs forfeited | 2,797 | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2011 | 377,496 | ||||||||||||||||||||||||||||||||||||
RSAs granted—three year cliff-vesting | (31,948 | ) | |||||||||||||||||||||||||||||||||||
PSAs granted—three year cliff-vesting | (73,217 | ) | |||||||||||||||||||||||||||||||||||
Unexercised options expired | 9,883 | ||||||||||||||||||||||||||||||||||||
Unexercised options cancelled | 5,755 | ||||||||||||||||||||||||||||||||||||
PSAs forfeited | 4,812 | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | 292,781 | ||||||||||||||||||||||||||||||||||||
RSAs or RSUs granted—three year cliff-vesting | (6,665 | ) | |||||||||||||||||||||||||||||||||||
PSAs or PSUs granted—three year cliff-vesting | (75,367 | ) | |||||||||||||||||||||||||||||||||||
Unexercised options expired | 250 | ||||||||||||||||||||||||||||||||||||
Unexercised options cancelled | 650 | ||||||||||||||||||||||||||||||||||||
RSAs or RSUs forfeited | 3,681 | ||||||||||||||||||||||||||||||||||||
PSAs or PSUs forfeited | 1,575 | ||||||||||||||||||||||||||||||||||||
Balance, December 31, 2013 | 216,905 | ||||||||||||||||||||||||||||||||||||
Weighted-Average Assumptions Used for Grants Issued | ' | ||||||||||||||||||||||||||||||||||||
The fair value of each option granted is estimated on the date of the grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants issued during: | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Expected dividend yield | 2.6 | % | N/A | N/A | |||||||||||||||||||||||||||||||||
Expected volatility of Corporation’s stock | 24 | % | N/A | N/A | |||||||||||||||||||||||||||||||||
Risk-free interest rate | 3.7 | % | N/A | N/A | |||||||||||||||||||||||||||||||||
Expected life in years | 7 | N/A | N/A | ||||||||||||||||||||||||||||||||||
Weighted average fair value of options granted | $ | 4.83 | N/A | N/A | |||||||||||||||||||||||||||||||||
Schedule of Information about Options Outstanding | ' | ||||||||||||||||||||||||||||||||||||
The following table provides information about options outstanding: | |||||||||||||||||||||||||||||||||||||
For the Twelve Months Ended December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Shares | Weighted | Weighted | Shares | Weighted | Weighted | Shares | Weighted | Weighted | |||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||||||||
Exercise | Grant Date | Exercise | Grant Date | Exercise | Grant Date | ||||||||||||||||||||||||||||||||
Price | Fair Value | Price | Fair Value | Price | Fair Value | ||||||||||||||||||||||||||||||||
Options outstanding, beginning of period | 783,476 | $ | 20.4 | $ | 4.62 | 876,470 | $ | 20.17 | $ | 4.49 | 993,710 | $ | 19.82 | $ | 4.44 | ||||||||||||||||||||||
Granted | 12,225 | $ | 21.28 | $ | 4.83 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Forfeited | (650 | ) | $ | 19.65 | $ | 4.62 | (5,755 | ) | $ | 20.56 | $ | 4.74 | (16,320 | ) | $ | 20.94 | $ | 4.79 | |||||||||||||||||||
Expired | (250 | ) | $ | 22 | $ | 4.9 | (9,883 | ) | $ | 21.93 | $ | 5.01 | (32,330 | ) | $ | 21.87 | $ | 5.04 | |||||||||||||||||||
Exercised | (203,715 | ) | $ | 19.49 | $ | 4.39 | (77,356 | ) | $ | 17.6 | $ | 3.69 | (68,590 | ) | $ | 14.08 | $ | 2.79 | |||||||||||||||||||
Options outstanding, end of period | 591,086 | $ | 20.73 | $ | 4.7 | 783,476 | $ | 20.4 | $ | 4.62 | 876,470 | $ | 20.17 | $ | 4.49 | ||||||||||||||||||||||
Information Related to Options | ' | ||||||||||||||||||||||||||||||||||||
The following table provides information related to options as of December 31, 2013: | |||||||||||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||||||||||||
Range of Exercise | Options | Remaining | Shares | Remaining | Weighted | ||||||||||||||||||||||||||||||||
Prices | Outstanding | Contractual | Exercisable | Contractual | Average | ||||||||||||||||||||||||||||||||
Life | Life | Exercise | |||||||||||||||||||||||||||||||||||
Price* | |||||||||||||||||||||||||||||||||||||
$10.36 to $18.59 | 140,277 | 5.24 yrs | 110,131 | 5.24 yrs | $ | 18.09 | |||||||||||||||||||||||||||||||
$18.60 to $19.69 | 111,000 | 1.35 yrs | 111,000 | 1.35 yrs | $ | 18.91 | |||||||||||||||||||||||||||||||
$19.70 to $21.48 | 121,300 | 1.51 yrs | 121,300 | 1.51 yrs | $ | 21.05 | |||||||||||||||||||||||||||||||
$21.49 to $22.03 | 101,745 | 3.42 yrs | 101,745 | 3.42 yrs | $ | 21.99 | |||||||||||||||||||||||||||||||
$22.04 to $23.97 | 9,000 | 2.26 yrs | 9,000 | 2.26 yrs | $ | 23 | |||||||||||||||||||||||||||||||
$23.98 to $24.27 | 107,764 | 4.27 yrs | 107,764 | 4.27 yrs | $ | 24.27 | |||||||||||||||||||||||||||||||
591,086 | 3.21 yrs | 560,940 | 3.10 yrs | $ | 20.87 | ||||||||||||||||||||||||||||||||
* | price of exercisable options | ||||||||||||||||||||||||||||||||||||
Schedule of Information about Unvested Options | ' | ||||||||||||||||||||||||||||||||||||
The following table provides information about unvested options: | |||||||||||||||||||||||||||||||||||||
For the Twelve Months Ended December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||||||||||||||
Grant Date | Grant Date | Grant Date | |||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||||||||||||||
Unvested options, beginning of period | 80,756 | $ | 4.65 | 158,515 | $ | 4.73 | 249,574 | $ | 4.76 | ||||||||||||||||||||||||||||
Granted | 12,225 | $ | 4.83 | — | — | — | — | ||||||||||||||||||||||||||||||
Vested | (62,185 | ) | $ | 4.8 | (72,004 | ) | $ | 4.82 | (74,739 | ) | $ | 4.82 | |||||||||||||||||||||||||
Forfeited | (650 | ) | $ | 4.62 | (5,755 | ) | $ | 4.74 | (16,320 | ) | $ | 4.79 | |||||||||||||||||||||||||
Unvested options, end of period | 30,146 | $ | 4.42 | 80,756 | $ | 4.65 | 158,515 | $ | 4.73 | ||||||||||||||||||||||||||||
Schedule of Related Tax Benefits Realized from Options Exercised and Intrinsic Value of Options Exercised | ' | ||||||||||||||||||||||||||||||||||||
Proceeds, related tax benefits realized from options exercised and intrinsic value of options exercised were as follows: | |||||||||||||||||||||||||||||||||||||
For the Twelve Months Ended | |||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Proceeds from strike price of value of options exercised | $ | 3,970 | $ | 1,362 | $ | 966 | |||||||||||||||||||||||||||||||
Related tax benefit recognized | 376 | 100 | 141 | ||||||||||||||||||||||||||||||||||
Proceeds of options exercised | $ | 4,346 | $ | 1,462 | $ | 1,107 | |||||||||||||||||||||||||||||||
Intrinsic value of options exercised | $ | 1,215 | $ | 269 | $ | 444 | |||||||||||||||||||||||||||||||
Schedule of Information about Options Outstanding and Exercisable | ' | ||||||||||||||||||||||||||||||||||||
The following table provides information about options outstanding and exercisable options: | |||||||||||||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2012 | |||||||||||||||||||||||||||||||||||
Options | Exercisable | Options | Exercisable | Options | Exercisable | ||||||||||||||||||||||||||||||||
Outstanding | Options | Outstanding | Options | Outstanding | Options | ||||||||||||||||||||||||||||||||
Number | 591,086 | 560,940 | 783,476 | 702,720 | 876,470 | 717,955 | |||||||||||||||||||||||||||||||
Weighted average exercise price | $ | 20.73 | $ | 20.87 | $ | 20.4 | $ | 20.46 | $ | 20.17 | $ | 20.1 | |||||||||||||||||||||||||
Aggregate intrinsic value | $ | 5,583,266 | $ | 5,224,227 | $ | 1,691,778 | $ | 1,455,766 | $ | 549,495 | $ | 437,549 | |||||||||||||||||||||||||
Weighted average contractual term | 3.2 yrs | 3.1 yrs | 3.6 yrs | 3.3 yrs | 4.3 yrs | 3.7 yrs | |||||||||||||||||||||||||||||||
Schedule of Unvested Restricted Stock Awards | ' | ||||||||||||||||||||||||||||||||||||
The following table details the RSAs for the twelve month periods ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||||||||||||||
Twelve Months Ended | Twelve Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | December 31,2011 | |||||||||||||||||||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||||||||||||||||||
Grant Date | Grant Date | Grant | |||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | Date Fair | |||||||||||||||||||||||||||||||||||
Value | |||||||||||||||||||||||||||||||||||||
Beginning balance | 60,287 | $ | 19.05 | 38,681 | $ | 18.06 | 11,920 | $ | 16.78 | ||||||||||||||||||||||||||||
Granted | 6,665 | $ | 22.5 | 31,948 | $ | 20.41 | 29,741 | $ | 18.37 | ||||||||||||||||||||||||||||
Vested | (9,115 | ) | $ | 19.2 | (10,342 | ) | $ | 19.34 | (2,980 | ) | $ | 16.78 | |||||||||||||||||||||||||
Forfeited | (3,681 | ) | $ | 20.38 | — | — | — | — | |||||||||||||||||||||||||||||
Ending balance | 54,156 | $ | 19.36 | 60,287 | $ | 19.05 | 38,681 | $ | 18.01 | ||||||||||||||||||||||||||||
Schedule of Unvested Performance Stock Awards | ' | ||||||||||||||||||||||||||||||||||||
The following table details the PSAs for the twelve month periods ending December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||||||||||||||
Twelve Months Ended | Twelve Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||||||||||||||||||||||||||
Number of | Weighted | Number | Weighted | Number of | Weighted | ||||||||||||||||||||||||||||||||
Shares | Average | of | Average | Shares | Average | ||||||||||||||||||||||||||||||||
Grant Date Fair | Shares | Grant Date Fair | Grant Date Fair | ||||||||||||||||||||||||||||||||||
Value | Value | Value | |||||||||||||||||||||||||||||||||||
Beginning balance | 186,113 | $ | 10.62 | 117,708 | $ | 9.86 | 60,267 | $ | 9.64 | ||||||||||||||||||||||||||||
Granted | 75,367 | $ | 13.38 | 73,217 | $ | 11.8 | 60,238 | $ | 10.07 | ||||||||||||||||||||||||||||
Vested | (54,925 | ) | $ | 9.64 | — | — | — | — | |||||||||||||||||||||||||||||
Forfeited | (1,575 | ) | $ | 10.77 | (4,812 | ) | $ | 9.88 | (2,797 | ) | $ | 9.64 | |||||||||||||||||||||||||
Ending balance | 204,980 | $ | 11.9 | 186,113 | $ | 10.62 | 117,708 | $ | 9.86 | ||||||||||||||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Calculation of Basic and Diluted Earnings per Share | ' | ||||||||||||
The calculation of basic earnings per share and diluted earnings per share is presented below: | |||||||||||||
(dollars in thousands, | Year Ended December 31, | ||||||||||||
except per share data) | 2013 | 2012 | 2011 | ||||||||||
Numerator—Net income available to common shareholders | $ | 24,444 | $ | 21,147 | $ | 19,602 | |||||||
Denominator for basic earnings per share – Weighted average shares outstanding* | 13,311,215 | 13,090,110 | 12,659,824 | ||||||||||
Effect of dilutive potential common shares | 260,395 | 151,736 | 82,313 | ||||||||||
Denominator for diluted earnings per share – Adjusted weighted average shares outstanding | 13,571,610 | 13,241,846 | 12,742,137 | ||||||||||
Basic earnings per share | $ | 1.84 | $ | 1.62 | $ | 1.55 | |||||||
Diluted earnings per share | $ | 1.8 | $ | 1.6 | $ | 1.54 | |||||||
Antidilutive shares excluded from computation of average dilutive earnings per share | — | 848,477 | 941,005 | ||||||||||
* | excludes restricted stock |
Other_Operating_Income_Tables
Other Operating Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Components of Other Operating Income | ' | ||||||||||||
Components of other operating income for the indicated years ended December 31 include: | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Merchant interchange fees | $ | 814 | $ | 665 | $ | 559 | |||||||
Commissions and fees | 578 | 510 | 468 | ||||||||||
Safe deposit box rentals | 387 | 398 | 407 | ||||||||||
Insurance commissions | 651 | 444 | 403 | ||||||||||
Other investment income | 348 | 349 | 153 | ||||||||||
Title insurance income | 192 | 272 | 119 | ||||||||||
Rent income | 202 | 162 | 116 | ||||||||||
Miscellaneous other income | 1,542 | 1,043 | 1,181 | ||||||||||
Other operating income | $ | 4,714 | $ | 3,843 | $ | 3,406 | |||||||
Other_Operating_Expense_Tables
Other Operating Expense (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Components of Other Operating Expense | ' | ||||||||||||
Components of other operating expense for the indicated years ended December 31 include: | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Information technology | $ | 2,876 | $ | 2,060 | $ | 1,518 | |||||||
Loan processing | 966 | 1,485 | 1,114 | ||||||||||
Other taxes | 1,007 | 1,164 | 973 | ||||||||||
Temporary help and recruiting | 1,624 | 1,031 | 532 | ||||||||||
Telephone and data lines | 1,378 | 652 | 514 | ||||||||||
Travel and entertainment | 630 | 567 | 507 | ||||||||||
Stationary and supplies | 508 | 516 | 496 | ||||||||||
Postage | 515 | 433 | 415 | ||||||||||
Director fees | 452 | 409 | 359 | ||||||||||
Outsourced services | 457 | 355 | 180 | ||||||||||
Portfolio maintenance | 366 | 266 | 313 | ||||||||||
Dues and subscriptions | 394 | 326 | 287 | ||||||||||
Contributions | 355 | 301 | 279 | ||||||||||
Insurance | 689 | 402 | 277 | ||||||||||
Deferred compensation expense | 906 | 271 | 203 | ||||||||||
Miscellaneous other expense | 1,637 | 1,962 | 1,879 | ||||||||||
Other operating expense | $ | 14,760 | $ | 12,200 | $ | 9,846 | |||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Loan Activity, Loans Granted to Principal Officers, Directors and Their Affiliates | ' | ||||||||
In the ordinary course of business, the Bank granted loans to principal officers, directors and their affiliates. Loan activity during 2013 and 2012 was as follows: | |||||||||
Following is a summary of these transactions: | |||||||||
(dollars in thousands) | 2013 | 2012 | |||||||
Balance, January 1 | $ | 2,884 | $ | 6,004 | |||||
Additions | 200 | 5 | |||||||
Amounts collected | (52 | ) | (3,125 | ) | |||||
Balance, December 31 | $ | 3,032 | $ | 2,884 | |||||
Regulatory_Capital_Requirement1
Regulatory Capital Requirements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Calculation of Corporation's and Bank's Actual Capital Amounts and Ratios | ' | ||||||||||||||||
The Corporation’s and the Bank’s actual capital amounts and ratios as of December 31, 2013 and 2012 are presented in the following table: | |||||||||||||||||
Actual | Minimum | ||||||||||||||||
to be Well | |||||||||||||||||
Capitalized | |||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | |||||||||||||
December 31, 2013 | |||||||||||||||||
Total (Tier II) capital to risk weighted assets: | |||||||||||||||||
Corporation | $ | 200,667 | 12.55 | % | $ | 159,924 | 10 | % | |||||||||
Bank | $ | 197,463 | 12.38 | % | $ | 159,493 | 10 | % | |||||||||
Tier I capital to risk weighted assets: | |||||||||||||||||
Corporation | $ | 185,022 | 11.57 | % | $ | 95,954 | 6 | % | |||||||||
Bank | $ | 181,818 | 11.4 | % | $ | 95,696 | 6 | % | |||||||||
Tier I capital to average assets: | |||||||||||||||||
Corporation | $ | 185,022 | 9.29 | % | $ | 99,543 | 5 | % | |||||||||
Bank | $ | 181,818 | 9.14 | % | $ | 99,424 | 5 | % | |||||||||
December 31, 2012 | |||||||||||||||||
Total (Tier II) capital to risk weighted assets: | |||||||||||||||||
Corporation | $ | 174,885 | 12.02 | % | $ | 145,528 | 10 | % | |||||||||
Bank | $ | 176,985 | 12.2 | % | $ | 145,124 | 10 | % | |||||||||
Tier I capital to risk weighted assets: | |||||||||||||||||
Corporation | $ | 160,425 | 11.02 | % | $ | 87,317 | 6 | % | |||||||||
Bank | $ | 162,525 | 11.2 | % | $ | 87,074 | 6 | % | |||||||||
Tier I capital to average assets: | |||||||||||||||||
Corporation | $ | 160,425 | 8.72 | % | $ | 91,989 | 5 | % | |||||||||
Bank | $ | 162,525 | 8.84 | % | $ | 91,940 | 5 | % |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Selected Quarterly Financial Data | ' | ||||||||||||||||
2013 | |||||||||||||||||
(dollars in thousands, except per share data) | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||||
Interest income | $ | 18,855 | $ | 19,217 | $ | 19,820 | $ | 20,525 | |||||||||
Interest expense | 1,446 | 1,294 | 1,287 | 1,400 | |||||||||||||
Net interest income | 17,409 | 17,923 | 18,533 | 19,125 | |||||||||||||
Provision for loan and lease losses | 804 | 1,000 | 959 | 812 | |||||||||||||
Other income | 11,790 | 12,943 | 11,387 | 12,235 | |||||||||||||
Other expense | 20,235 | 20,524 | 19,323 | 20,658 | |||||||||||||
Income before income taxes | 8,160 | 9,342 | 9,638 | 9,890 | |||||||||||||
Tax expense | 2,840 | 3,090 | 3,237 | 3,419 | |||||||||||||
Net income | $ | 5,320 | $ | 6,252 | $ | 6,401 | $ | 6,471 | |||||||||
Basic earnings per common share* | $ | 0.4 | $ | 0.47 | $ | 0.48 | $ | 0.48 | |||||||||
Diluted earnings per common share* | $ | 0.4 | $ | 0.46 | $ | 0.47 | $ | 0.47 | |||||||||
Dividend declared | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.18 | |||||||||
2012 | |||||||||||||||||
(dollars in thousands, except per share data) | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||||
Interest income | $ | 18,372 | $ | 18,188 | $ | 18,081 | $ | 18,682 | |||||||||
Interest expense | 2,387 | 2,285 | 2,130 | 1,786 | |||||||||||||
Net interest income | 15,985 | 15,903 | 15,951 | 16,896 | |||||||||||||
Provision for loan and lease losses | 1,000 | 1,003 | 1,000 | 1,000 | |||||||||||||
Other income | 9,587 | 11,381 | 12,248 | 13,170 | |||||||||||||
Other expense | 16,795 | 18,128 | 18,889 | 21,089 | |||||||||||||
Income (loss) before income taxes | 7,777 | 8,153 | 8,310 | 7,977 | |||||||||||||
Tax expense (benefit) | 2,704 | 2,808 | 2,885 | 2,673 | |||||||||||||
Net income (loss) | $ | 5,073 | $ | 5,345 | $ | 5,425 | $ | 5,304 | |||||||||
Basic earnings per common share* | $ | 0.39 | $ | 0.41 | $ | 0.41 | $ | 0.4 | |||||||||
Diluted earnings per common share* | $ | 0.39 | $ | 0.4 | $ | 0.41 | $ | 0.4 | |||||||||
Dividend declared | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | |||||||||
* | Earnings per share is computed independently for each period shown. As a result, the sum of the quarters may not equal the total earnings per share for the year. |
Parent_CompanyOnly_Financial_S1
Parent Company-Only Financial Statements (Tables) (Parent Company) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Parent Company | ' | ||||||||||||
Condensed Balance Sheet of Parent | ' | ||||||||||||
Condensed Balance Sheets | |||||||||||||
December 31, | |||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||
Assets: | |||||||||||||
Cash | $ | 5,435 | $ | 5,392 | |||||||||
Investment securities | 401 | 99 | |||||||||||
Investments in subsidiaries, as equity in net assets | 227,245 | 206,496 | |||||||||||
Premises and equipment, net | 2,582 | 2,681 | |||||||||||
Goodwill | 245 | 245 | |||||||||||
Other assets | 2,164 | 896 | |||||||||||
Total assets | $ | 238,072 | $ | 215,809 | |||||||||
Liabilities and shareholders’ equity: | |||||||||||||
Borrowings | $ | 7,050 | $ | 9,400 | |||||||||
Other liabilities | 1,124 | 2,845 | |||||||||||
Total liabilities | $ | 8,174 | $ | 12,245 | |||||||||
Common stock, par value $1, authorized 100,000,000 shares issued 16,596,869 shares and 16,390,608 shares as of December 31, 2013 and 2012, respectively, and outstanding 13,650,354 shares and 13,412,690 shares as of December 31, 2013 and 2012, respectively | $ | 16,597 | $ | 16,390 | |||||||||
Paid-in capital in excess of par value | 95,673 | 89,137 | |||||||||||
Less common stock in treasury, at cost—2,946,515 shares and 2,977,918 shares as of December 31, 2013 and 2012, respectively | (30,764 | ) | (30,745 | ) | |||||||||
Accumulated other comprehensive loss, net of deferred income taxes benefit | (5,565 | ) | (10,078 | ) | |||||||||
Retained earnings | 153,957 | 138,860 | |||||||||||
Total shareholders’ equity | $ | 229,898 | $ | 203,564 | |||||||||
Total liabilities and shareholders’ equity | $ | 238,072 | $ | 215,809 | |||||||||
Condensed Income Statement of Parent | ' | ||||||||||||
Condensed Statements of Income | |||||||||||||
Twelve Months Ended December 31, | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Dividends from subsidiaries | $ | 8,165 | $ | 13,075 | $ | 9,650 | |||||||
Interest and other income | 2,062 | 2,672 | 2,646 | ||||||||||
Total operating income | 10,227 | 15,747 | 12,296 | ||||||||||
Expenses | 1,996 | 2,410 | 2,678 | ||||||||||
Income before equity in undistributed income of subsidiaries | 8,231 | 13,337 | 9,618 | ||||||||||
Equity in undistributed income of subsidiaries | 16,236 | 7,761 | 9,973 | ||||||||||
Income before income taxes | 24,467 | 21,098 | 19,591 | ||||||||||
Income tax expense (benefit) | 23 | (49 | ) | (11 | ) | ||||||||
Net income | $ | 24,444 | $ | 21,147 | $ | 19,602 | |||||||
Condensed Cash Flow of Parent | ' | ||||||||||||
Condensed Statements of Cash Flows | |||||||||||||
Twelve Months Ended December 31, | |||||||||||||
(dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Operating activities: | |||||||||||||
Net Income | $ | 24,444 | $ | 21,147 | $ | 19,602 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Equity in undistributed income of subsidiaries | (16,236 | ) | (7,761 | ) | (9,973 | ) | |||||||
Depreciation and amortization | 98 | 98 | 105 | ||||||||||
Net gain on sale of available for sale securities | — | — | (38 | ) | |||||||||
Stock-based compensation cost | 1,004 | 1,283 | 876 | ||||||||||
Net accretion of fair value adjustments | — | — | (55 | ) | |||||||||
Other, net | (1,138 | ) | (239 | ) | 360 | ||||||||
Net cash provided by operating activities | 8,172 | 14,528 | 10,877 | ||||||||||
Investing Activities: | |||||||||||||
Proceeds from sale of available for sale securities | — | — | 99 | ||||||||||
Acquisitions, net of cash acquired | — | (9,278 | ) | (13,367 | ) | ||||||||
Sale of subsidiary | — | 10,500 | 18,411 | ||||||||||
Investment in subsidiaries | — | (4,800 | ) | (17,200 | ) | ||||||||
Net cash used by investing activities | — | (3,578 | ) | (12,057 | ) | ||||||||
Financing activities: | |||||||||||||
Dividends paid | (9,297 | ) | (8,529 | ) | (7,679 | ) | |||||||
Change in other borrowings | (2,350 | ) | (4,291 | ) | 11,691 | ||||||||
Decrease in junior subordinated debt | — | — | (12,028 | ) | |||||||||
Proceeds from sale of treasury stock | 1,317 | 317 | — | ||||||||||
Repurchase of treasury stock | (553 | ) | — | (42 | ) | ||||||||
Proceeds from issuance of common stock | 176 | 2,118 | 8,325 | ||||||||||
Payment of contingent consideration for business combinations | (2,100 | ) | (1,050 | ) | — | ||||||||
Excess tax benefit from stock-based compensation | 708 | 112 | 141 | ||||||||||
Proceeds from exercise of stock options | 3,970 | 1,363 | 966 | ||||||||||
Net cash (used) provided by financing activities | (8,129 | ) | (9,960 | ) | 1,374 | ||||||||
Change in cash and cash equivalents | 43 | 990 | 194 | ||||||||||
Cash and cash equivalents at beginning of year | 5,392 | 4,402 | 4,208 | ||||||||||
Cash and cash equivalents at end of year | $ | 5,435 | $ | 5,392 | $ | 4,402 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Schedule of Detail Segment Information | ' | ||||||||||||||||||||||||||||||||||||
The following table details the Corporation’s segments. | |||||||||||||||||||||||||||||||||||||
As of or for the Twelve Months Ended December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | Banking | Wealth | Consolidated | Banking | Wealth | Consolidated | Banking | Wealth | Consolidated | ||||||||||||||||||||||||||||
Management | Management | Management | |||||||||||||||||||||||||||||||||||
Net interest income | $ | 72,987 | $ | 3 | $ | 72,990 | $ | 64,731 | $ | 4 | $ | 64,735 | $ | 62,894 | $ | 7 | $ | 62,901 | |||||||||||||||||||
Less: loan loss provision | 3,575 | — | 3,575 | 4,003 | — | 4,003 | 6,088 | — | 6,088 | ||||||||||||||||||||||||||||
Net interest income after loan loss provision | 69,412 | 3 | 69,415 | 60,728 | 4 | 60,732 | 56,806 | 7 | 56,813 | ||||||||||||||||||||||||||||
Other income: | |||||||||||||||||||||||||||||||||||||
Fees for wealth management services | — | 35,184 | 35,184 | — | 29,798 | 29,798 | — | 21,669 | 21,669 | ||||||||||||||||||||||||||||
Service charges on deposit accounts | 2,445 | — | 2,445 | 2,477 | — | 2,477 | 2,495 | — | 2,495 | ||||||||||||||||||||||||||||
Loan servicing and other fees | 1,845 | — | 1,845 | 1,776 | — | 1,776 | 1,824 | — | 1,824 | ||||||||||||||||||||||||||||
Net gain on sale of loans | 4,117 | — | 4,117 | 6,735 | — | 6,735 | 2,517 | — | 2,517 | ||||||||||||||||||||||||||||
Net (loss) gain on sale of available for sale securities | (8 | ) | — | (8 | ) | 1,415 | — | 1,415 | 1,783 | — | 1,783 | ||||||||||||||||||||||||||
Net (loss) gain on sale of other real estate owned | (300 | ) | — | (300 | ) | (86 | ) | — | (86 | ) | (97 | ) | — | (97 | ) | ||||||||||||||||||||||
BOLI income | 358 | — | 358 | 428 | — | 428 | 462 | — | 462 | ||||||||||||||||||||||||||||
Other operating income | 4,546 | 168 | 4,714 | 3,737 | 106 | 3,843 | 3,390 | 16 | 3,406 | ||||||||||||||||||||||||||||
Total other income | 13,003 | 35,352 | 48,355 | 16,482 | 29,904 | 46,386 | 12,374 | 21,685 | 34,059 | ||||||||||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||||||||||
Salaries & wages | 24,210 | 12,136 | 36,346 | 22,248 | 10,883 | 33,131 | 20,016 | 8,068 | 28,084 | ||||||||||||||||||||||||||||
Employee benefits | 5,942 | 2,890 | 8,832 | 5,660 | 2,467 | 8,127 | 4,837 | 2,052 | 6,889 | ||||||||||||||||||||||||||||
Occupancy & equipment | 5,357 | 1,505 | 6,862 | 4,619 | 1,255 | 5,874 | 4,149 | 1,027 | 5,176 | ||||||||||||||||||||||||||||
Amortization of intangible assets | 312 | 2,321 | 2,633 | 294 | 2,117 | 2,411 | 324 | 1,166 | 1,490 | ||||||||||||||||||||||||||||
Professional fees | 2,246 | 210 | 2,456 | 2,665 | 203 | 2,868 | 2,156 | 155 | 2,311 | ||||||||||||||||||||||||||||
Other operating expenses | 20,080 | 3,531 | 23,611 | 19,290 | 3,200 | 22,490 | 15,776 | 2,003 | 17,779 | ||||||||||||||||||||||||||||
Total other expenses | 58,147 | 22,593 | 80,740 | 54,776 | 20,125 | 74,901 | 47,258 | 14,471 | 61,729 | ||||||||||||||||||||||||||||
Segment profit | 24,268 | 12,762 | 37,030 | 22,434 | 9,783 | 32,217 | 21,922 | 7,221 | 29,143 | ||||||||||||||||||||||||||||
Intersegment (revenues) expenses* | (372 | ) | 372 | — | (484 | ) | 484 | — | (337 | ) | 337 | — | |||||||||||||||||||||||||
Pre-tax segment profit after eliminations | $ | 23,896 | $ | 13,134 | $ | 37,030 | $ | 21,950 | $ | 10,267 | $ | 32,217 | $ | 21,585 | $ | 7,558 | $ | 29,143 | |||||||||||||||||||
% of segment pre-tax profit after eliminations | 64.5 | % | 35.5 | % | 100 | % | 68.1 | % | 31.9 | % | 100 | % | 74.1 | % | 25.9 | % | 100 | % | |||||||||||||||||||
Segment assets (dollars in millions) | $ | 2,020.70 | $ | 41 | $ | 2,061.70 | $ | 1,990.90 | $ | 45 | $ | 2,035.90 | $ | 1,738.90 | $ | 34.5 | $ | 1,773.40 | |||||||||||||||||||
* | Intersegment revenues consist of rental payments, deposit interest and management fees. | ||||||||||||||||||||||||||||||||||||
Schedule of Wealth Management Segment Activity | ' | ||||||||||||||||||||||||||||||||||||
Other segment information: | |||||||||||||||||||||||||||||||||||||
Wealth Management Segment Information | |||||||||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Assets under management, administration, supervision and brokerage | $ | 7,268.30 | $ | 6,663.20 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Nov. 17, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 17, 2012 | 27-May-11 | Dec. 31, 2013 | Dec. 31, 2013 | |
Office | QDBP | PRBP | Davidson Trust Company | First Bank Of Delaware | Private Wealth Management Group Of Hershey Trust Company | Retirement Community | Wealth Offices | |||
CompensationPlan | CompensationPlan | Wealth Management | Office | Office | ||||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of service branches | 19 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of offices | ' | ' | ' | ' | ' | ' | ' | ' | 7 | 5 |
Amount of deposits acquired | ' | ' | ' | ' | ' | ' | $70,300,000 | ' | ' | ' |
Amount of loan acquired | ' | ' | ' | ' | ' | ' | 76,600,000 | ' | ' | ' |
Corporation's wealth management divisions assets increased under management | ' | ' | ' | ' | ' | 1,000,000,000 | ' | 1,100,000,000 | ' | ' |
Cash balances required to meet regulatory reserve requirements of the Federal Reserve Board | 367,000 | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of loan acquired | ' | ' | 76,600,000 | ' | ' | ' | ' | ' | ' | ' |
Capital stock of FHLB | $11,654,000 | $10,761,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of defined benefit plans | ' | ' | ' | 1 | 2 | ' | ' | ' | ' | ' |
Likelihood of tax benefit realized upon ultimate settlement tax benefit sustained | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Core deposit intangible | Core deposit intangible | First Bank Of Delaware | First Bank Of Delaware | Davidson Trust Company | Davidson Trust Company | Davidson Trust Company | Davidson Trust Company | Davidson Trust Company | Davidson Trust Company | Davidson Trust Company | Davidson Trust Company | |
Core deposit intangible | Wealth Management | First Payment | Second Payment | Third Payment | Customer relationships | Non competition agreements | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capitalization of First Bank of Delaware | ' | ' | $250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets, Useful Life, in years | '10 years | '10 years | ' | '10 years | ' | ' | ' | ' | ' | ' | '10 years | '5 years |
Business acquisition date | ' | ' | ' | ' | ' | 15-May-12 | ' | ' | ' | ' | ' | ' |
Contingent payable amount | ' | ' | ' | ' | ' | ' | ' | 1,050,000 | 1,050,000 | 1,050,000 | ' | ' |
Contingent payments date | ' | ' | ' | ' | ' | ' | ' | 14-Nov-12 | 14-May-13 | 14-Nov-13 | ' | ' |
Payment of contingent consideration | ' | ' | ' | ' | ' | 3,150,000 | ' | ' | ' | ' | ' | ' |
Corporation's wealth management divisions assets increased under management | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' |
Estimated increase in deferred tax asset | ' | ' | ' | ' | 54,000 | ' | ' | ' | ' | ' | ' | ' |
Decrease in goodwill | ' | ' | ' | ' | ' | ($54,000) | ' | ' | ' | ' | ' | ' |
Consideration_Paid_and_Fair_Va
Consideration Paid and Fair Value of Identifiable Assets Acquired and Liabilities Assumed, First Bank of Delaware (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 17, 2012 |
In Thousands, unless otherwise specified | First Bank Of Delaware | |||
Consideration paid: | ' | ' | ' | ' |
Cash | ' | ' | ' | $10,559 |
Value of consideration | ' | ' | ' | 10,559 |
Assets acquired: | ' | ' | ' | ' |
Cash and due from banks | ' | ' | ' | 525 |
Loans | ' | ' | ' | 76,556 |
Premises and equipment | ' | ' | ' | 460 |
Core deposit intangible | ' | ' | ' | 320 |
Other assets | ' | ' | ' | 256 |
Total assets | ' | ' | ' | 78,117 |
Liabilities assumed: | ' | ' | ' | ' |
Nonmaturity deposits | ' | ' | ' | 27,080 |
Time deposits | ' | ' | ' | 43,257 |
Unfavorable lease | ' | ' | ' | 140 |
Other liabilities | ' | ' | ' | 390 |
Total liabilities | ' | ' | ' | 70,867 |
Net assets acquired | ' | ' | ' | 7,250 |
Goodwill resulting from the FBD Transaction | $32,843 | $32,897 | $24,689 | $3,309 |
Business_Combinations_Schedule
Business Combinations - Schedule of Consideration Paid and Fair Value of Identifiable Assets Acquired and Liabilities Assumed (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 15, 2012 | Mar. 15, 2012 | Mar. 15, 2012 | Mar. 15, 2012 |
In Thousands, unless otherwise specified | Davidson Trust Company | Davidson Trust Company | Davidson Trust Company | Davidson Trust Company | |||
Customer relationships | Non competition agreements | Brand | |||||
Consideration paid: | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | $10,500 | ' | ' | ' |
Assets acquired: | ' | ' | ' | ' | ' | ' | ' |
Cash operating accounts | ' | ' | ' | 1,433 | ' | ' | ' |
Other assets | ' | ' | ' | 201 | ' | ' | ' |
Intangible asset | ' | ' | ' | ' | 3,720 | 1,385 | 970 |
Premises and equipment | ' | ' | ' | 117 | ' | ' | ' |
Deferred tax asset | ' | ' | ' | 839 | ' | ' | ' |
Total assets | ' | ' | ' | 8,665 | ' | ' | ' |
Liabilities assumed: | ' | ' | ' | ' | ' | ' | ' |
Deferred tax liability | ' | ' | ' | 2,125 | ' | ' | ' |
Miscellaneous liabilities | ' | ' | ' | 885 | ' | ' | ' |
Total liabilities | ' | ' | ' | 3,010 | ' | ' | ' |
Net assets acquired | ' | ' | ' | 5,655 | ' | ' | ' |
Goodwill resulting from acquisition of DTC | $32,843 | $32,897 | $24,689 | $4,845 | ' | ' | ' |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets Related to Acquisitions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Beginning Balance | $32,897 | $24,689 | ' |
Additions / Adjustments | -54 | 8,208 | ' |
Amortization | ' | ' | ' |
Ending Balance | 32,843 | 32,897 | 24,689 |
Beginning Balance | 21,998 | 18,014 | ' |
Additions / Adjustments | ' | 6,395 | ' |
Amortization | -2,633 | -2,411 | -1,490 |
Amortization | -2,633 | -2,411 | ' |
Ending Balance | 19,365 | 21,998 | 18,014 |
Beginning Balance | 54,895 | 42,703 | ' |
Additions / Adjustments | -54 | 14,603 | ' |
Amortization | -2,633 | -2,411 | ' |
Ending Balance | 52,208 | 54,895 | 42,703 |
Trade name | ' | ' | ' |
Schedule Of Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Beginning Balance | 1,210 | 240 | ' |
Additions / Adjustments | ' | 970 | ' |
Amortization | ' | ' | ' |
Ending Balance | 1,210 | 1,210 | ' |
Amortization Period | 'Indefinite | 'Indefinite | ' |
Core deposit intangible | ' | ' | ' |
Schedule Of Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Beginning Balance | 1,654 | 1,628 | ' |
Additions / Adjustments | ' | 320 | ' |
Amortization | -312 | -294 | ' |
Ending Balance | 1,342 | 1,654 | ' |
Amortization Period | '10 years | '10 years | ' |
Customer relationships | ' | ' | ' |
Schedule Of Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Beginning Balance | 14,890 | 12,376 | ' |
Additions / Adjustments | ' | 3,720 | ' |
Amortization | -1,295 | -1,206 | ' |
Ending Balance | 13,595 | 14,890 | ' |
Non competition agreements | ' | ' | ' |
Schedule Of Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Beginning Balance | 4,244 | 3,770 | ' |
Additions / Adjustments | ' | 1,385 | ' |
Amortization | -1,026 | -911 | ' |
Ending Balance | 3,218 | 4,244 | ' |
Minimum | Customer relationships | ' | ' | ' |
Schedule Of Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Amortization Period | '10 years | '10 years | ' |
Minimum | Non competition agreements | ' | ' | ' |
Schedule Of Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Amortization Period | '5 years | '5 years | ' |
Maximum | Customer relationships | ' | ' | ' |
Schedule Of Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Amortization Period | '20 years | '20 years | ' |
Maximum | Non competition agreements | ' | ' | ' |
Schedule Of Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Amortization Period | '5 years 6 months | '5 years 6 months | ' |
Wealth Segment | ' | ' | ' |
Schedule Of Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Beginning Balance | 20,466 | 15,567 | ' |
Additions / Adjustments | -54 | 4,899 | ' |
Amortization | ' | ' | ' |
Ending Balance | 20,412 | 20,466 | ' |
Amortization Period | 'Indefinite | 'Indefinite | ' |
Banking Segment | ' | ' | ' |
Schedule Of Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' |
Beginning Balance | 12,431 | 9,122 | ' |
Additions / Adjustments | ' | 3,309 | ' |
Amortization | ' | ' | ' |
Ending Balance | $12,431 | $12,431 | ' |
Amortization Period | 'Indefinite | 'Indefinite | ' |
Amortized_Cost_and_Estimated_F
Amortized Cost and Estimated Fair Value of Available for Sale Investment Securities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $287,127 | $311,747 |
Gross Unrealized Gains | 2,256 | 5,081 |
Gross Unrealized Losses | -3,575 | -214 |
Estimated Fair Value | 285,808 | 316,614 |
Obligations of U.S. government and agencies | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 71,097 | 73,183 |
Gross Unrealized Gains | 149 | 796 |
Gross Unrealized Losses | -1,678 | -107 |
Estimated Fair Value | 69,568 | 73,872 |
Obligations of state and political subdivisions | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 37,140 | 30,244 |
Gross Unrealized Gains | 141 | 199 |
Gross Unrealized Losses | -304 | -59 |
Estimated Fair Value | 36,977 | 30,384 |
Mortgage-backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 119,044 | 128,537 |
Gross Unrealized Gains | 1,392 | 3,302 |
Gross Unrealized Losses | -1,073 | -13 |
Estimated Fair Value | 119,363 | 131,826 |
Collateralized mortgage obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 44,463 | 62,116 |
Gross Unrealized Gains | 273 | 622 |
Gross Unrealized Losses | -493 | -35 |
Estimated Fair Value | 44,243 | 62,703 |
Other investments | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 15,281 | 17,667 |
Gross Unrealized Gains | 301 | 162 |
Gross Unrealized Losses | -24 | ' |
Estimated Fair Value | 15,558 | 17,829 |
U.S. Treasury securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 102 | ' |
Gross Unrealized Losses | -3 | ' |
Estimated Fair Value | $99 | ' |
Amount_of_Investment_Securitie
Amount of Investment Securities Available for Sale in Unrealized Loss Position (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months Fair Value | $137,881 | $53,426 |
Less than 12 Months Unrealized Losses | -3,116 | -214 |
12 Months or Longer Fair Value | 12,619 | ' |
12 Months or Longer Unrealized Losses | -459 | ' |
Total Fair Value | 150,500 | 53,426 |
Total Unrealized Losses | -3,575 | -214 |
Obligations of U.S. government and agencies | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months Fair Value | 41,201 | 20,032 |
Less than 12 Months Unrealized Losses | -1,391 | -107 |
12 Months or Longer Fair Value | 5,774 | ' |
12 Months or Longer Unrealized Losses | -287 | ' |
Total Fair Value | 46,975 | 20,032 |
Total Unrealized Losses | -1,678 | -107 |
Obligations of state and political subdivisions | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months Fair Value | 13,020 | 10,752 |
Less than 12 Months Unrealized Losses | -233 | -59 |
12 Months or Longer Fair Value | 4,543 | ' |
12 Months or Longer Unrealized Losses | -71 | ' |
Total Fair Value | 17,563 | 10,752 |
Total Unrealized Losses | -304 | -59 |
Mortgage-backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months Fair Value | 55,672 | 12,602 |
Less than 12 Months Unrealized Losses | -972 | -13 |
12 Months or Longer Fair Value | 2,302 | ' |
12 Months or Longer Unrealized Losses | -101 | ' |
Total Fair Value | 57,974 | 12,602 |
Total Unrealized Losses | -1,073 | -13 |
Collateralized mortgage obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months Fair Value | 26,395 | 10,040 |
Less than 12 Months Unrealized Losses | -493 | -35 |
Total Fair Value | 26,395 | 10,040 |
Total Unrealized Losses | -493 | -35 |
U.S. Treasury securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months Fair Value | 99 | ' |
Less than 12 Months Unrealized Losses | -3 | ' |
Total Fair Value | 99 | ' |
Total Unrealized Losses | -3 | ' |
Other investments | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months Fair Value | 1,494 | ' |
Less than 12 Months Unrealized Losses | -24 | ' |
Total Fair Value | 1,494 | ' |
Total Unrealized Losses | ($24) | ' |
Investment_Securities_Addition
Investment Securities - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Securities pledged as collateral | $94,900,000 | ' | ' |
Proceeds from sale of available for sale investment securities | 14,900,000 | 40,600,000 | 89,700,000 |
Gain (Loss) on sale of available for sale investment securities | ($8,000) | $1,400,000 | $1,800,000 |
Amortized_Cost_and_Estimated_F1
Amortized Cost and Estimated Fair Value of Investment and Mortgage-Related Securities by Contractual Maturity (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Due in one year or less, Amortized Cost | $7,859 | [1] | $10,571 | [2] |
Due after one year through five years, Amortized Cost | 49,790 | [1] | 38,056 | [2] |
Due after five years through ten years, Amortized Cost | 51,793 | [1] | 40,635 | [2] |
Due after ten years, Amortized Cost | 797 | [1] | 18,415 | [2] |
Subtotal | 110,239 | [1] | 107,677 | [2] |
Mortgage-related securities, Amortized Cost | 163,507 | [1] | 190,653 | [2] |
Total | 273,746 | [1] | 298,330 | [2] |
Due in one year or less, Estimated Market Value | 7,869 | [1] | 10,590 | [2] |
Due after one year through five years, Estimated Market Value | 49,721 | [1] | 38,171 | [2] |
Due after five years through ten years, Estimated Market Value | 50,117 | [1] | 40,714 | [2] |
Due after ten years, Estimated Market Value | 824 | [1] | 19,044 | [2] |
Subtotal | 108,531 | [1] | 108,519 | [2] |
Mortgage-related securities, Estimated Market Value | 163,606 | [1] | 194,529 | [2] |
Total | $272,137 | [1] | $303,048 | [2] |
[1] | Included in the investment portfolio, but not in the table above, are mutual funds with an estimated market value, as of December 31, 2013, of $13.7 million, which have no stated maturity. | |||
[2] | Included in the investment portfolio, but not in the table above, are mutual funds with an estimated market value, as of December 31, 2012, of $13.4 million, which have no stated maturity. |
Amortized_Cost_and_Estimated_F2
Amortized Cost and Estimated Fair Value of Investment and Mortgage-Related Securities by Contractual Maturity (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Investment securities without maturity | $163,507 | [1] | $190,653 | [2] |
Mutual funds | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Investment securities without maturity | $13,700 | $13,400 | ||
[1] | Included in the investment portfolio, but not in the table above, are mutual funds with an estimated market value, as of December 31, 2013, of $13.7 million, which have no stated maturity. | |||
[2] | Included in the investment portfolio, but not in the table above, are mutual funds with an estimated market value, as of December 31, 2012, of $13.4 million, which have no stated maturity. |
Loans_and_Leases_Outstanding_D
Loans and Leases Outstanding (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans held for sale | $1,350 | $3,412 |
Real estate loans | 1,161,524 | 1,056,339 |
Commercial and industrial | 328,459 | 291,620 |
Consumer | 16,926 | 17,666 |
Leases | 40,276 | 32,831 |
Total | 1,547,185 | 1,398,456 |
Total loans and leases | 1,548,535 | 1,401,868 |
Loans with predetermined rates | 850,168 | 723,417 |
Loans with adjustable or floating rates | 698,367 | 678,451 |
Total loans and leases | 1,548,535 | 1,401,868 |
Net deferred loan origination costs included in the above loan table | 222 | 402 |
Commercial mortgage | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Real estate loans | 625,341 | 546,358 |
Total | 625,341 | 546,358 |
Home equity lines and loans | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Real estate loans | 189,571 | 194,861 |
Total | 189,571 | 194,861 |
Residential mortgage | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Real estate loans | 300,243 | 288,212 |
Total | 300,243 | 288,212 |
Construction | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Real estate loans | 46,369 | 26,908 |
Total | $46,369 | $26,908 |
Components_of_Net_Investments_
Components of Net Investments in Leases (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Minimum lease payments receivable | $45,866 | $37,349 |
Unearned lease income | -7,534 | -6,099 |
Initial direct costs and deferred fees | 1,944 | 1,581 |
Total | $40,276 | $32,831 |
NonPerforming_Loans_and_Leases
Non-Performing Loans and Leases (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Non-accrual loans and leases | $10,530 | [1] | $14,040 | [1] |
Total non-performing loans and leases | 10,530 | [1] | 14,768 | [1] |
Commercial mortgage | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Non-accrual loans and leases | 478 | [1] | 631 | [1] |
Home equity lines and loans | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Non-accrual loans and leases | 1,262 | [1] | 2,792 | [1] |
Residential mortgage | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Non-accrual loans and leases | 4,377 | [1] | 3,748 | [1] |
Construction | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Non-accrual loans and leases | 830 | [1] | 3,314 | [1] |
Loans and leases 90 days or more past due and still accruing | ' | 728 | [1] | |
Commercial and industrial | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Non-accrual loans and leases | 3,539 | [1] | 3,506 | [1] |
Consumer | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Non-accrual loans and leases | 20 | [1] | 7 | [1] |
Leases | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Non-accrual loans and leases | $24 | [1] | $42 | [1] |
[1] | Purchased credit-impaired loans, which have been recorded at their fair values at the acquisition date and which are performing as expected are excluded from this table with the exception of $238 thousand and $90 thousand as of December 31, 2013 and 2012, respectively, of purchased credit-impaired loans which became non-performing subsequent to the merger. |
NonPerforming_Loans_and_Leases1
Non-Performing Loans and Leases (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Purchased credit-impaired loans | $238 | $90 |
Outstanding_Principal_Balance_
Outstanding Principal Balance and Related Carrying Amount of Credit-Impaired Loans (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' | ' | ||
Outstanding principal balance | $14,293 | $19,527 | ||
Carrying amount | $9,880 | [1] | $12,128 | [1] |
[1] | Includes $293 thousand and $319 thousand of purchased credit-impaired loans as of December 31, 2013 and 2012, respectively, for which the Corporation could not estimate the timing or amount of expected cash flows to be collected at the acquisition date, and for which no accretable yield is recognized. Additionally, the table above includes $238 thousand and $90 thousand as of December 31, 2013 and 2012, respectively, of purchased credit-impaired loans that subsequently became non-performing, which are disclosed in Note 5C, above, and which also have no accretable yield. |
Outstanding_Principal_Balance_1
Outstanding Principal Balance and Related Carrying Amount of Credit-Impaired Loans (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' | ' |
Credit-impaired loans not expected to be collected at acquisition | $293 | $319 |
Purchased credit-impaired loans | $238 | $90 |
Schedule_of_Changes_in_Accreta
Schedule of Changes in Accretable Discount on Purchased Credit-Impaired Loans (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' | ' |
Beginning Balance | $8,025 | $9,537 |
Accretion | -1,893 | -1,458 |
Reclassification from nonaccretable difference | 1,198 | 1,299 |
Additions/adjustments | -257 | 18 |
Disposals | -939 | -1,371 |
Ending Balance | $6,134 | $8,025 |
Aging_of_Corporations_Loan_and
Aging of Corporation's Loan and Lease Portfolio (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 - 59 Days Past Due | $1,619 | $1,627 | ||
60 - 89 Days Past Due | 99 | 425 | ||
Over 89 Days Past Due | ' | 728 | ||
Total Past Due | 1,718 | 2,780 | ||
Current | 1,534,937 | 1,381,636 | ||
Total Accruing Loans and Leases | 1,536,655 | 1,384,416 | ||
Non accrual Loans and Leases | 10,530 | [1] | 14,040 | [1] |
Total | 1,547,185 | 1,398,456 | ||
Commercial mortgage | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 - 59 Days Past Due | 241 | 704 | ||
60 - 89 Days Past Due | ' | 130 | ||
Total Past Due | 241 | 834 | ||
Current | 624,622 | 544,893 | ||
Total Accruing Loans and Leases | 624,863 | 545,727 | ||
Non accrual Loans and Leases | 478 | [1] | 631 | [1] |
Total | 625,341 | 546,358 | ||
Home equity lines and loans | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 - 59 Days Past Due | 209 | 107 | ||
60 - 89 Days Past Due | ' | 84 | ||
Total Past Due | 209 | 191 | ||
Current | 188,100 | 191,878 | ||
Total Accruing Loans and Leases | 188,309 | 192,069 | ||
Non accrual Loans and Leases | 1,262 | [1] | 2,792 | [1] |
Total | 189,571 | 194,861 | ||
Residential mortgage | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 - 59 Days Past Due | 773 | 399 | ||
60 - 89 Days Past Due | 35 | 141 | ||
Total Past Due | 808 | 540 | ||
Current | 295,058 | 283,924 | ||
Total Accruing Loans and Leases | 295,866 | 284,464 | ||
Non accrual Loans and Leases | 4,377 | [1] | 3,748 | [1] |
Total | 300,243 | 288,212 | ||
Construction | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Over 89 Days Past Due | ' | 728 | ||
Total Past Due | ' | 728 | ||
Current | 45,539 | 22,866 | ||
Total Accruing Loans and Leases | 45,539 | 23,594 | ||
Non accrual Loans and Leases | 830 | [1] | 3,314 | [1] |
Total | 46,369 | 26,908 | ||
Commercial and industrial | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 - 59 Days Past Due | 334 | 376 | ||
60 - 89 Days Past Due | ' | 50 | ||
Total Past Due | 334 | 426 | ||
Current | 324,586 | 287,688 | ||
Total Accruing Loans and Leases | 324,920 | 288,114 | ||
Non accrual Loans and Leases | 3,539 | [1] | 3,506 | [1] |
Total | 328,459 | 291,620 | ||
Consumer | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 - 59 Days Past Due | 2 | 8 | ||
60 - 89 Days Past Due | 4 | 7 | ||
Total Past Due | 6 | 15 | ||
Current | 16,900 | 17,644 | ||
Total Accruing Loans and Leases | 16,906 | 17,659 | ||
Non accrual Loans and Leases | 20 | [1] | 7 | [1] |
Total | 16,926 | 17,666 | ||
Leases | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
30 - 59 Days Past Due | 60 | 33 | ||
60 - 89 Days Past Due | 60 | 13 | ||
Total Past Due | 120 | 46 | ||
Current | 40,132 | 32,743 | ||
Total Accruing Loans and Leases | 40,252 | 32,789 | ||
Non accrual Loans and Leases | 24 | [1] | 42 | [1] |
Total | $40,276 | $32,831 | ||
[1] | Purchased credit-impaired loans, which have been recorded at their fair values at the acquisition date and which are performing as expected are excluded from this table with the exception of $238 thousand and $90 thousand as of December 31, 2013 and 2012, respectively, of purchased credit-impaired loans which became non-performing subsequent to the merger. |
Roll_forward_of_Corporations_A
Roll forward of Corporation's Allowance for Loan and Leases Losses by Loan Category (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Balance, beginning of period | $14,425 | $12,753 | $10,275 |
Charge-offs | -2,979 | -2,867 | -4,648 |
Recoveries | 494 | 536 | 1,038 |
Provision for loan and lease losses | 3,575 | 4,003 | 6,088 |
Balance, end of period | 15,515 | 14,425 | 12,753 |
Commercial mortgage | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Balance, beginning of period | 3,907 | 3,165 | 2,534 |
Charge-offs | -71 | -234 | -827 |
Recoveries | 20 | 4 | ' |
Provision for loan and lease losses | -59 | 972 | 1,458 |
Balance, end of period | 3,797 | 3,907 | 3,165 |
Home equity lines and loans | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Balance, beginning of period | 1,857 | 1,707 | 1,563 |
Charge-offs | -513 | -375 | -514 |
Recoveries | 67 | ' | 190 |
Provision for loan and lease losses | 793 | 525 | 468 |
Balance, end of period | 2,204 | 1,857 | 1,707 |
Residential mortgage | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Balance, beginning of period | 2,024 | 1,592 | 843 |
Charge-offs | -307 | -209 | -391 |
Recoveries | 18 | 75 | ' |
Provision for loan and lease losses | 711 | 566 | 1,140 |
Balance, end of period | 2,446 | 2,024 | 1,592 |
Construction | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Balance, beginning of period | 1,019 | 1,384 | 633 |
Charge-offs | -737 | -1,131 | -1,174 |
Recoveries | 24 | 15 | ' |
Provision for loan and lease losses | 539 | 751 | 1,925 |
Balance, end of period | 845 | 1,019 | 1,384 |
Commercial and industrial | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Balance, beginning of period | 4,637 | 3,816 | 3,565 |
Charge-offs | -781 | -458 | -633 |
Recoveries | 65 | 143 | 307 |
Provision for loan and lease losses | 1,090 | 1,136 | 577 |
Balance, end of period | 5,011 | 4,637 | 3,816 |
Consumer | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Balance, beginning of period | 189 | 119 | 115 |
Charge-offs | -194 | -96 | -92 |
Recoveries | 10 | 7 | 11 |
Provision for loan and lease losses | 254 | 159 | 85 |
Balance, end of period | 259 | 189 | 119 |
Leases | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Balance, beginning of period | 493 | 532 | 766 |
Charge-offs | -376 | -364 | -1,017 |
Recoveries | 290 | 292 | 530 |
Provision for loan and lease losses | 197 | 33 | 253 |
Balance, end of period | 604 | 493 | 532 |
Unallocated | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Balance, beginning of period | 299 | 438 | 256 |
Provision for loan and lease losses | 50 | -139 | 182 |
Balance, end of period | $349 | $299 | $438 |
Allocation_of_Allowance_for_Lo
Allocation of Allowance for Loan and Lease Losses by Portfolio Segment Based on Methodology Used to Evaluate Loans and Leases for Impairment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
In Thousands, unless otherwise specified | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Total | $15,515 | $14,425 | $12,753 | $10,275 | |
Commercial mortgage | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Total | 3,797 | 3,907 | 3,165 | 2,534 | |
Home equity lines and loans | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Total | 2,204 | 1,857 | 1,707 | 1,563 | |
Residential mortgage | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Total | 2,446 | 2,024 | 1,592 | 843 | |
Construction | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Total | 845 | 1,019 | 1,384 | 633 | |
Commercial and industrial | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Total | 5,011 | 4,637 | 3,816 | 3,565 | |
Consumer | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Total | 259 | 189 | 119 | 115 | |
Leases | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Total | 604 | 493 | 532 | 766 | |
Unallocated | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Total | 349 | 299 | 438 | 256 | |
Allowance for Loan and Lease Losses | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Individually evaluated for impairment | 1,519 | 2,354 | ' | ' | |
Collectively evaluated for impairment | 13,996 | 12,033 | ' | ' | |
Purchased credit-impaired | ' | 38 | [1] | ' | ' |
Total | 15,515 | 14,425 | ' | ' | |
Allowance for Loan and Lease Losses | Commercial mortgage | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Collectively evaluated for impairment | 3,797 | 3,894 | ' | ' | |
Purchased credit-impaired | ' | 13 | [1] | ' | ' |
Total | 3,797 | 3,907 | ' | ' | |
Allowance for Loan and Lease Losses | Home equity lines and loans | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Individually evaluated for impairment | 121 | 217 | ' | ' | |
Collectively evaluated for impairment | 2,083 | 1,640 | ' | ' | |
Total | 2,204 | 1,857 | ' | ' | |
Allowance for Loan and Lease Losses | Residential mortgage | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Individually evaluated for impairment | 814 | 667 | ' | ' | |
Collectively evaluated for impairment | 1,632 | 1,357 | ' | ' | |
Total | 2,446 | 2,024 | ' | ' | |
Allowance for Loan and Lease Losses | Construction | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Individually evaluated for impairment | ' | 543 | ' | ' | |
Collectively evaluated for impairment | 845 | 451 | ' | ' | |
Purchased credit-impaired | ' | 25 | [1] | ' | ' |
Total | 845 | 1,019 | ' | ' | |
Allowance for Loan and Lease Losses | Commercial and industrial | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Individually evaluated for impairment | 532 | 919 | ' | ' | |
Collectively evaluated for impairment | 4,479 | 3,718 | ' | ' | |
Total | 5,011 | 4,637 | ' | ' | |
Allowance for Loan and Lease Losses | Consumer | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Individually evaluated for impairment | 52 | 8 | ' | ' | |
Collectively evaluated for impairment | 207 | 181 | ' | ' | |
Total | 259 | 189 | ' | ' | |
Allowance for Loan and Lease Losses | Leases | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Collectively evaluated for impairment | 604 | 493 | ' | ' | |
Total | 604 | 493 | ' | ' | |
Allowance for Loan and Lease Losses | Unallocated | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | |
Collectively evaluated for impairment | 349 | 299 | ' | ' | |
Total | $349 | $299 | ' | ' | |
[1] | Purchased credit-impaired loans are evaluated for impairment on an individual basis |
Carrying_Value_for_Loans_and_L
Carrying Value for Loans and Leases by Portfolio Segment Based on Methodology Used to Evaluate Loans and Leases for Impairment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Total | $1,547,185 | $1,398,456 | ||
Commercial mortgage | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Total | 625,341 | 546,358 | ||
Home equity lines and loans | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Total | 189,571 | 194,861 | ||
Residential mortgage | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Total | 300,243 | 288,212 | ||
Construction | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Total | 46,369 | 26,908 | ||
Commercial and industrial | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Total | 328,459 | 291,620 | ||
Consumer | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Total | 16,926 | 17,666 | ||
Leases | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Total | 40,276 | 32,831 | ||
Carrying value of loans and leases | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Individually evaluated for impairment | 17,506 | 21,790 | ||
Collectively evaluated for impairment | 1,519,799 | 1,364,538 | ||
Purchased credit-impaired | 9,880 | [1] | 12,128 | [1] |
Total | 1,547,185 | 1,398,456 | ||
Carrying value of loans and leases | Commercial mortgage | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Individually evaluated for impairment | 236 | 541 | ||
Collectively evaluated for impairment | 616,077 | 535,506 | ||
Purchased credit-impaired | 9,028 | [1] | 10,311 | [1] |
Total | 625,341 | 546,358 | ||
Carrying value of loans and leases | Home equity lines and loans | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Individually evaluated for impairment | 1,428 | 3,403 | ||
Collectively evaluated for impairment | 188,128 | 191,439 | ||
Purchased credit-impaired | 15 | [1] | 19 | [1] |
Total | 189,571 | 194,861 | ||
Carrying value of loans and leases | Residential mortgage | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Individually evaluated for impairment | 9,860 | 9,211 | ||
Collectively evaluated for impairment | 290,345 | 278,951 | ||
Purchased credit-impaired | 38 | [1] | 50 | [1] |
Total | 300,243 | 288,212 | ||
Carrying value of loans and leases | Construction | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Individually evaluated for impairment | 1,172 | 4,631 | ||
Collectively evaluated for impairment | 44,715 | 20,785 | ||
Purchased credit-impaired | 482 | [1] | 1,492 | [1] |
Total | 46,369 | 26,908 | ||
Carrying value of loans and leases | Commercial and industrial | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Individually evaluated for impairment | 4,758 | 3,997 | ||
Collectively evaluated for impairment | 323,384 | 287,367 | ||
Purchased credit-impaired | 317 | [1] | 256 | [1] |
Total | 328,459 | 291,620 | ||
Carrying value of loans and leases | Consumer | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Individually evaluated for impairment | 52 | 7 | ||
Collectively evaluated for impairment | 16,874 | 17,659 | ||
Total | 16,926 | 17,666 | ||
Carrying value of loans and leases | Leases | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ||
Collectively evaluated for impairment | 40,276 | 32,831 | ||
Total | $40,276 | $32,831 | ||
[1] | Purchased credit-impaired loans are evaluated for impairment on an individual basis |
Carrying_Value_of_Loans_and_Le
Carrying Value of Loans and Leases by Portfolio Segment Based on Credit Quality Indicators used to Allocate Allowance for Loan and Lease Losses (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | $1,547,185 | $1,398,456 |
Pass | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 984,250 | 833,141 |
Special Mention | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 3,180 | 9,788 |
Substandard | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 12,739 | 21,957 |
Pass, Special Mention and Substandard | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 1,000,169 | 864,886 |
Performing | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 541,333 | 526,981 |
Non-performing | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 5,683 | 6,589 |
Performing and Non-performing | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 547,016 | 533,570 |
Commercial mortgage | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 625,341 | 546,358 |
Commercial mortgage | Pass | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 620,227 | 538,470 |
Commercial mortgage | Special Mention | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 2,793 | 2,215 |
Commercial mortgage | Substandard | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 2,321 | 5,673 |
Commercial mortgage | Pass, Special Mention and Substandard | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 625,341 | 546,358 |
Construction | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 46,369 | 26,908 |
Construction | Pass | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 43,812 | 16,504 |
Construction | Special Mention | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | ' | 1,317 |
Construction | Substandard | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 2,557 | 9,087 |
Construction | Pass, Special Mention and Substandard | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 46,369 | 26,908 |
Commercial and industrial | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 328,459 | 291,620 |
Commercial and industrial | Pass | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 320,211 | 278,167 |
Commercial and industrial | Special Mention | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 387 | 6,256 |
Commercial and industrial | Substandard | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 7,861 | 7,197 |
Commercial and industrial | Pass, Special Mention and Substandard | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 328,459 | 291,620 |
Residential mortgage | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 300,243 | 288,212 |
Residential mortgage | Performing | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 295,866 | 284,464 |
Residential mortgage | Non-performing | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 4,377 | 3,748 |
Residential mortgage | Performing and Non-performing | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 300,243 | 288,212 |
Home equity lines and loans | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 189,571 | 194,861 |
Home equity lines and loans | Performing | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 188,309 | 192,069 |
Home equity lines and loans | Non-performing | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 1,262 | 2,792 |
Home equity lines and loans | Performing and Non-performing | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 189,571 | 194,861 |
Consumer | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 16,926 | 17,666 |
Consumer | Performing | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 16,906 | 17,659 |
Consumer | Non-performing | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 20 | 7 |
Consumer | Performing and Non-performing | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 16,926 | 17,666 |
Leases | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 40,276 | 32,831 |
Leases | Performing | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 40,252 | 32,789 |
Leases | Non-performing | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | 24 | 42 |
Leases | Performing and Non-performing | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Allowance for loan and lease losses | $40,276 | $32,831 |
Balance_of_Troubled_Debt_Restr
Balance of Troubled Debt Restructurings (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Modifications [Line Items] | ' | ' |
TDRs included in nonperforming loans and leases | $1,699 | $3,106 |
TDRs in compliance with modified terms | 7,277 | 8,008 |
Total TDRs | $8,976 | $11,114 |
Loan_and_Lease_Modifications_C
Loan and Lease Modifications Categorized as Troubled Debt Restructurings (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Contract | Contract | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 10 | 13 |
Pre-Modification Outstanding Recorded Investment | $1,710 | $2,225 |
Post-Modification Outstanding Recorded Investment | 1,710 | 2,236 |
Residential mortgage | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 2 | 3 |
Pre-Modification Outstanding Recorded Investment | 674 | 1,235 |
Post-Modification Outstanding Recorded Investment | 674 | 1,235 |
Commercial and industrial | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 2 | 1 |
Pre-Modification Outstanding Recorded Investment | 930 | 39 |
Post-Modification Outstanding Recorded Investment | 930 | 39 |
Home equity lines and loans | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 2 | 5 |
Pre-Modification Outstanding Recorded Investment | 40 | 908 |
Post-Modification Outstanding Recorded Investment | 40 | 919 |
Consumer | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 1 | ' |
Pre-Modification Outstanding Recorded Investment | 33 | ' |
Post-Modification Outstanding Recorded Investment | 33 | ' |
Leases | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 3 | 4 |
Pre-Modification Outstanding Recorded Investment | 33 | 43 |
Post-Modification Outstanding Recorded Investment | $33 | $43 |
Types_of_Loan_and_Lease_Modifi
Types of Loan and Lease Modifications (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Contract | Contract | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Interest Rate Change | 2 | 1 |
Loan Term Extension | ' | 1 |
Interest Rate Change and Term Extension | 1 | 6 |
Interest Rate Change with Interest-Only Period | 3 | 1 |
Contractual Payment Reduction (Leases only) | 3 | 4 |
Forgiveness of Interest | 1 | ' |
Residential mortgage | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Loan Term Extension | ' | 1 |
Interest Rate Change and Term Extension | 1 | 2 |
Forgiveness of Interest | 1 | ' |
Commercial and industrial | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Interest Rate Change and Term Extension | ' | 1 |
Interest Rate Change with Interest-Only Period | 2 | ' |
Home equity lines and loans | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Interest Rate Change | 1 | 1 |
Interest Rate Change and Term Extension | ' | 3 |
Interest Rate Change with Interest-Only Period | 1 | 1 |
Consumer | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Interest Rate Change | 1 | ' |
Leases | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Contractual Payment Reduction (Leases only) | 3 | 4 |
Recorded_Investment_and_Princi
Recorded Investment and Principal Balance of Impaired Loans by Portfolio Segment Their Related Allowance for Loan and Lease Losses and Interest Income Recognized (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded Investment | $17,506 | [1] | $21,790 | [1] | $19,320 | |
Principal Balance | 19,140 | 22,563 | 21,598 | |||
Related Allowance | 1,519 | 2,354 | 1,321 | |||
Average Principal Balance | 21,053 | 24,675 | 22,373 | |||
Interest Income Recognized | 365 | 507 | 550 | |||
Cash-Basis Interest Income Recognized | ' | ' | ' | |||
Impaired loans with related allowance | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded Investment | 8,611 | [1] | 11,967 | [1] | 9,523 | |
Principal Balance | 8,745 | 12,069 | 11,352 | |||
Related Allowance | 1,519 | 2,354 | 1,321 | |||
Average Principal Balance | 8,910 | 12,775 | 11,829 | |||
Interest Income Recognized | 186 | 243 | 236 | |||
Cash-Basis Interest Income Recognized | ' | ' | ' | |||
Impaired loans with related allowance | Home equity lines and loans | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded Investment | 277 | [1] | 1,261 | [1] | 448 | |
Principal Balance | 279 | 1,321 | 456 | |||
Related Allowance | 121 | 217 | 75 | |||
Average Principal Balance | 308 | 1,327 | 456 | |||
Interest Income Recognized | 6 | 42 | 1 | |||
Cash-Basis Interest Income Recognized | ' | ' | ' | |||
Impaired loans with related allowance | Residential mortgage | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded Investment | 5,297 | [1] | 4,778 | [1] | 2,654 | |
Principal Balance | 5,312 | 4,793 | 2,682 | |||
Related Allowance | 814 | 667 | 358 | |||
Average Principal Balance | 5,343 | 4,764 | 2,696 | |||
Interest Income Recognized | 95 | 152 | 130 | |||
Cash-Basis Interest Income Recognized | ' | ' | ' | |||
Impaired loans with related allowance | Construction Loans | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded Investment | ' | 2,564 | [1] | 4,853 | ||
Principal Balance | ' | 2,564 | 6,054 | |||
Related Allowance | ' | 543 | 640 | |||
Average Principal Balance | ' | 3,272 | 6,478 | |||
Interest Income Recognized | ' | ' | 73 | |||
Cash-Basis Interest Income Recognized | ' | ' | ' | |||
Impaired loans with related allowance | Commercial and industrial | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded Investment | 2,985 | [1] | 3,357 | [1] | 1,568 | |
Principal Balance | 3,100 | 3,383 | 2,160 | |||
Related Allowance | 532 | 919 | 248 | |||
Average Principal Balance | 3,210 | 3,402 | 2,199 | |||
Interest Income Recognized | 82 | 49 | 32 | |||
Cash-Basis Interest Income Recognized | ' | ' | ' | |||
Impaired loans with related allowance | Consumer | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded Investment | 52 | [1] | 7 | [1] | ' | |
Principal Balance | 54 | 8 | ' | |||
Related Allowance | 52 | 8 | ' | |||
Average Principal Balance | 49 | 10 | ' | |||
Interest Income Recognized | 3 | ' | ' | |||
Cash-Basis Interest Income Recognized | ' | ' | ' | |||
Impaired loans without related allowance | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded Investment | 8,895 | [1],[2] | 9,823 | [1],[3] | 9,797 | [4] |
Principal Balance | 10,395 | [2] | 10,494 | [3] | 10,246 | [4] |
Average Principal Balance | 12,143 | [2] | 11,900 | [3] | 10,544 | [4] |
Interest Income Recognized | 179 | [2] | 264 | [3] | 314 | [4] |
Cash-Basis Interest Income Recognized | ' | [2] | ' | [3] | ' | [4] |
Impaired loans without related allowance | Home equity lines and loans | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded Investment | 1,151 | [1],[2] | 2,142 | [1],[3] | 2,266 | [4] |
Principal Balance | 1,159 | [2] | 2,223 | [3] | 2,310 | [4] |
Average Principal Balance | 1,252 | [2] | 2,478 | [3] | 2,316 | [4] |
Interest Income Recognized | 6 | [2] | 22 | [3] | 46 | [4] |
Cash-Basis Interest Income Recognized | ' | [2] | ' | [3] | ' | [4] |
Impaired loans without related allowance | Residential mortgage | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded Investment | 4,563 | [1],[2] | 4,433 | [1],[3] | 5,492 | [4] |
Principal Balance | 4,911 | [2] | 4,741 | [3] | 5,863 | [4] |
Average Principal Balance | 5,177 | [2] | 4,735 | [3] | 5,865 | [4] |
Interest Income Recognized | 123 | [2] | 154 | [3] | 191 | [4] |
Cash-Basis Interest Income Recognized | ' | [2] | ' | [3] | ' | [4] |
Impaired loans without related allowance | Construction Loans | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded Investment | 1,172 | [1],[2] | 2,067 | [1],[3] | 1,209 | [4] |
Principal Balance | 2,134 | [2] | 2,317 | [3] | 1,213 | [4] |
Average Principal Balance | 3,452 | [2] | 3,461 | [3] | 1,326 | [4] |
Interest Income Recognized | 27 | [2] | 58 | [3] | 56 | [4] |
Cash-Basis Interest Income Recognized | ' | [2] | ' | [3] | ' | [4] |
Impaired loans without related allowance | Commercial and industrial | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded Investment | 1,773 | [1],[2] | 640 | [1],[3] | 825 | [4] |
Principal Balance | 1,954 | [2] | 639 | [3] | 855 | [4] |
Average Principal Balance | 1,979 | [2] | 645 | [3] | 1,031 | [4] |
Interest Income Recognized | 23 | [2] | 16 | [3] | 20 | [4] |
Cash-Basis Interest Income Recognized | ' | [2] | ' | [3] | ' | [4] |
Impaired loans without related allowance | Consumer | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded Investment | ' | ' | 5 | [4] | ||
Principal Balance | ' | ' | 5 | [4] | ||
Average Principal Balance | ' | ' | 6 | [4] | ||
Interest Income Recognized | ' | ' | 1 | [4] | ||
Cash-Basis Interest Income Recognized | ' | ' | ' | [4] | ||
Impaired loans without related allowance | Commercial Mortgage | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded Investment | 236 | [1],[2] | 541 | [1],[3] | ' | |
Principal Balance | 237 | [2] | 574 | [3] | ' | |
Average Principal Balance | 283 | [2] | 581 | [3] | ' | |
Interest Income Recognized | ' | 14 | [3] | ' | ||
Cash-Basis Interest Income Recognized | ' | [2] | ' | [3] | ' | |
[1] | Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. | |||||
[2] | The table above does not include the recorded investment of $63 thousand of impaired leases without a related allowance for loan and lease losses. | |||||
[3] | The table above does not include the recorded investment of $168 thousand of impaired leases without a related allowance for loan and lease losses. | |||||
[4] | The table above does not include the recorded investment of $680 thousand of impaired leases without a related allowance for loan and lease losses. |
Recorded_Investment_and_Princi1
Recorded Investment and Principal Balance of Impaired Loans by Portfolio Segment Their Related Allowance for Loan and Lease Losses and Interest Income Recognized (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
In Thousands, unless otherwise specified | ||||||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded investment of impaired lease without related allowance | $17,506 | [1] | $21,790 | [1] | $19,320 | |
Impaired loans without related allowance | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded investment of impaired lease without related allowance | 8,895 | [1],[2] | 9,823 | [1],[3] | 9,797 | [4] |
Leases | Impaired loans without related allowance | ' | ' | ' | |||
Financing Receivable, Impaired [Line Items] | ' | ' | ' | |||
Recorded investment of impaired lease without related allowance | $63 | $168 | $680 | |||
[1] | Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. | |||||
[2] | The table above does not include the recorded investment of $63 thousand of impaired leases without a related allowance for loan and lease losses. | |||||
[3] | The table above does not include the recorded investment of $168 thousand of impaired leases without a related allowance for loan and lease losses. | |||||
[4] | The table above does not include the recorded investment of $680 thousand of impaired leases without a related allowance for loan and lease losses. |
Other_Real_Estate_Owned_Additi
Other Real Estate Owned - Additional Information (Detail) | Dec. 31, 2013 |
Property | |
Real Estate [Line Items] | ' |
Number of real estate properties owned | 5 |
Residential Properties | ' |
Real Estate [Line Items] | ' |
Number of real estate properties owned | 3 |
Commercial property | ' |
Real Estate [Line Items] | ' |
Number of real estate properties owned | 1 |
Land | ' |
Real Estate [Line Items] | ' |
Number of real estate properties owned | 1 |
Summary_of_Changes_in_Other_Re
Summary of Changes in Other Real Estate Owned (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Real Estate [Line Items] | ' | ' |
Balance January 1 | $906 | $549 |
Additions | 853 | 949 |
Capitalized cost | 485 | 61 |
Sales | -1,389 | -653 |
Balance December 31 | $855 | $906 |
Summary_of_Premises_and_Equipm
Summary of Premises and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Less: accumulated depreciation | ($35,996) | ($34,354) |
Total | 31,796 | 31,170 |
Land | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment | 5,306 | 5,306 |
Building | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment | 23,557 | 22,966 |
Furniture and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment | 23,379 | 21,598 |
Leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment | 14,979 | 13,729 |
Construction in progress | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment | $571 | $1,925 |
Premises_and_Equipment_Additio
Premises and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation and amortization expense | $3 | $2.90 | $2.80 |
Rent expense on leased premises and equipment | $3.40 | $2.70 | $2.20 |
Future_Minimum_Cash_Rent_Commi
Future Minimum Cash Rent Commitments under Various Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
2014 | $3,061 |
2015 | 3,107 |
2016 | 2,960 |
2017 | 2,980 |
2018 | 3,030 |
2019 and thereafter | 37,633 |
Total | $52,771 |
Summary_of_Activity_Related_to
Summary of Activity Related to Mortgage Servicing Rights (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Servicing Asset at Amortized Cost [Line Items] | ' | ' | ' |
Balance, beginning of period | $4,491 | $4,041 | $4,925 |
Additions | 1,002 | 1,579 | 651 |
Amortization | -740 | -966 | -749 |
Impairment | -3 | -163 | -786 |
Balance, end of period | 4,750 | 4,491 | 4,041 |
Fair value | 5,733 | 4,638 | 4,041 |
Loans serviced for others | $628,879 | $595,317 | $574,422 |
Summary_of_Activity_Related_to1
Summary of Activity Related to Changes in Impairment Valuation Allowance (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Valuation Allowance for Impairment of Recognized Servicing Assets [Line Items] | ' | ' | ' |
Balance, January 1 | ($1,545) | ($1,382) | ($596) |
Impairment | -126 | -278 | -800 |
Recovery | 123 | 115 | 14 |
Balance, December 31 | ($1,548) | ($1,545) | ($1,382) |
Summary_of_Key_Economic_Assump
Summary of Key Economic Assumptions and Sensitivity of Current Fair Value of MSRs (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ' | ' | ' | |
Fair value amount of MSRs | $5,733 | $4,638 | $4,041 | |
Weighted average life (in years) | '6 years 3 months 18 days | ' | ' | |
Prepayment speeds (constant prepayment rate) | 11.10% | [1] | ' | ' |
10% adverse change | -206 | ' | ' | |
20% adverse change | -402 | ' | ' | |
Discount rate | 10.50% | ' | ' | |
10% adverse change | -231 | ' | ' | |
20% adverse change | ($445) | ' | ' | |
[1] | Represents the weighted average prepayment rate for the life of the MSR asset. |
Recovered_Sheet1
Mortgage Servicing Rights ("MSR"S) - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ' | ' | ' |
Fair value of the mortgage MSRs | $5,733 | $4,638 | $4,041 |
Percentage of sensitivity of the current fair value | 10.00% | ' | ' |
Components_of_Deposits_Detail
Components of Deposits (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Deposits [Line Items] | ' | ' | ||
Savings | $135,240 | $129,091 | ||
NOW accounts | 266,787 | [1] | 270,279 | [1] |
Market rate accounts | 587,247 | [1] | 604,632 | [1] |
Time deposits, less than $100 | 88,056 | 121,994 | ||
Time deposits, $100 or more | 52,738 | 96,592 | ||
Wholesale time deposits | 34,639 | 12,421 | ||
Total interest-bearing deposits | 1,164,707 | 1,235,009 | ||
Non-interest-bearing deposits | 426,640 | 399,673 | ||
Total deposits | $1,591,347 | $1,634,682 | ||
[1] | Includes wholesale deposits. |
Deposits_Additional_Informatio
Deposits - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deposits [Line Items] | ' | ' |
Aggregate amount of deposit overdrafts included as loans | $795 | $603 |
Details_of_Maturities_of_Retai
Details of Maturities of Retail Time Deposits (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
$100 or more | ' |
Time Deposits [Line Items] | ' |
2014 | $41,622 |
2015 | 4,818 |
2016 | 1,846 |
2017 | 2,127 |
2018 | 2,325 |
Total | 52,738 |
Less than $100 | ' |
Time Deposits [Line Items] | ' |
2014 | 61,993 |
2015 | 15,818 |
2016 | 3,381 |
2017 | 3,239 |
2018 | 3,602 |
2019 and thereafter | 23 |
Total | $88,056 |
Schedule_of_Maturities_of_Whol
Schedule of Maturities of Wholesale Time Deposits (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
$100 or more | ' |
Time Deposits [Line Items] | ' |
2014 | $41,622 |
2015 | 4,818 |
2016 | 1,846 |
2017 | 2,127 |
Total | 52,738 |
Less than $100 | ' |
Time Deposits [Line Items] | ' |
2014 | 61,993 |
2015 | 15,818 |
2016 | 3,381 |
2017 | 3,239 |
Total | 88,056 |
Wholesale time deposits | $100 or more | ' |
Time Deposits [Line Items] | ' |
2014 | 8,303 |
2015 | 9,967 |
2016 | 4,983 |
2017 | 11,195 |
Total | 34,448 |
Wholesale time deposits | Less than $100 | ' |
Time Deposits [Line Items] | ' |
2014 | 191 |
Total | $191 |
Shortterm_and_Other_Borrowings2
Short-term and Other Borrowings - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Short term borrowing | $10,891,000 | $9,403,000 |
Other borrowings | 205,644,000 | 161,315,000 |
Maximum borrowing capacity with FHLB | 841,500,000 | ' |
Unused capacity funds | 628,400,000 | ' |
Capital stock of FHLB | 11,654,000 | 10,761,000 |
Convertible-Fixed | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other borrowings | 21,492,000 | 42,630,000 |
Federal Home Loan Bank Borrowings | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other borrowings | 205,600,000 | 161,300,000 |
Federal Home Loan Bank Borrowings | Convertible-Fixed | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other borrowings | 21,500,000 | 42,600,000 |
Overnight Fed Funds | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Unused capacity funds | 64,000,000 | ' |
Federal Reserve Discount Window | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Unused capacity funds | $73,300,000 | ' |
Summary_of_ShortTerm_Borrowing
Summary of Short-Term Borrowings (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Short-term Debt [Line Items] | ' | ' |
Short-term borrowings | $10,891 | $9,403 |
Repurchase Agreements | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term borrowings | $10,891 | $9,403 |
Information_Concerning_ShortTe
Information Concerning Short-Term Borrowings (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Short-term Debt [Line Items] | ' | ' |
Balance at period-end | $10,891 | $9,403 |
Maximum amount outstanding at any month end | 75,588 | 19,029 |
Average balance outstanding during the period | $16,457 | $13,525 |
Weighted-average interest rate, as of the period-end | 0.10% | 0.15% |
Weighted-average interest rate, paid during the period | 0.15% | 0.16% |
Maturity_of_FHLB_Advances_and_
Maturity of FHLB Advances and Other Borrowings (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Total | $205,644 | $161,315 |
Federal Home Loan Bank Advances And Other Borrowings | ' | ' |
Within one year | 3,917 | 35,458 |
Over one year through five years | 196,727 | 104,244 |
Over five years through ten years | 5,000 | 21,613 |
Over ten years | ' | ' |
Total | $205,644 | $161,315 |
Rate_and_Maturity_Information_
Rate and Maturity Information on Federal Home Loan Bank Advances and Other Borrowings (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Schedule Of Debt Instruments [Line Items] | ' | ' | ||
Balance | $205,644 | $161,315 | ||
Fixed Amortizing | ' | ' | ||
Schedule Of Debt Instruments [Line Items] | ' | ' | ||
Maturity Start Range | 9-Apr-15 | [1] | ' | |
Maturity End Range | 9-Apr-15 | [1] | ' | |
Weighted Average Rate | 3.57% | ' | ||
Coupon Rate Minimum | 3.57% | ' | ||
Coupon Rate Maximum | 3.57% | ' | ||
Balance | 2,102 | 4,285 | ||
Adjustable Amortizing | ' | ' | ||
Schedule Of Debt Instruments [Line Items] | ' | ' | ||
Maturity Start Range | 31-Dec-16 | [1],[2] | ' | |
Maturity End Range | 31-Dec-16 | [1],[2] | ' | |
Weighted Average Rate | 3.25% | [2] | ' | |
Coupon Rate Minimum | 3.25% | [2] | ' | |
Coupon Rate Maximum | 3.25% | [2] | ' | |
Balance | 7,050 | [2] | 9,400 | [2] |
Bullet Maturity | Fixed Rate | ' | ' | ||
Schedule Of Debt Instruments [Line Items] | ' | ' | ||
Maturity Start Range | 23-Mar-15 | [1] | ' | |
Maturity End Range | 28-May-19 | [1] | ' | |
Weighted Average Rate | 1.37% | ' | ||
Coupon Rate Minimum | 0.58% | ' | ||
Coupon Rate Maximum | 2.41% | ' | ||
Balance | 140,000 | 90,000 | ||
Bullet Maturity | Variable Rate | ' | ' | ||
Schedule Of Debt Instruments [Line Items] | ' | ' | ||
Maturity Start Range | 25-Jun-15 | [1] | ' | |
Maturity End Range | 28-Nov-17 | [1] | ' | |
Weighted Average Rate | 0.45% | ' | ||
Coupon Rate Minimum | 0.38% | ' | ||
Coupon Rate Maximum | 0.54% | ' | ||
Balance | 35,000 | 15,000 | ||
Convertible-Fixed | ' | ' | ||
Schedule Of Debt Instruments [Line Items] | ' | ' | ||
Maturity Start Range | 3-Jan-18 | [1] | ' | |
Maturity End Range | 20-Aug-18 | [1] | ' | |
Weighted Average Rate | 2.95% | ' | ||
Coupon Rate Minimum | 2.58% | ' | ||
Coupon Rate Maximum | 3.50% | ' | ||
Balance | $21,492 | $42,630 | ||
[1] | Maturity range refers to December 31, 2013 balances | |||
[2] | Loans from correspondent banks other than FHLB |
Derivatives_and_Hedging_Activi2
Derivatives and Hedging Activities - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative [Line Items] | ' | ' |
Effective Date | 30-Nov-15 | 30-Nov-15 |
Maturity Date | 28-Nov-22 | 28-Nov-22 |
Federal Home Loan Bank Borrowings | ' | ' |
Derivative [Line Items] | ' | ' |
FHLB borrowing | ' | 15 |
Details_Derivative_Positions_D
Details Derivative Positions (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative [Line Items] | ' | ' |
Notional Amount | $15,000 | $15,000 |
Trade Date | 13-Dec-12 | 13-Dec-12 |
Effective Date | 30-Nov-15 | 30-Nov-15 |
Maturity Date | 28-Nov-22 | 28-Nov-22 |
Receive (Variable) Index | 'US 3-Month LIBOR | 'US 3-Month LIBOR |
Current Project Receive Rate | 3.60% | 2.34% |
Pay Fixed Swap Rate | 2.38% | 2.38% |
Fair Value of Asset (Liability) | $1,142 | ($36) |
Recovered_Sheet2
Disclosure About Fair Value Of Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Collateral securing loan | Minimum | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Discount on appraisals of collateral securing loan | 10.00% |
Collateral securing loan | Maximum | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Discount on appraisals of collateral securing loan | 50.00% |
Term Loan | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Term loan | 7.1 |
Carrying_Amount_Estimated_Fair
Carrying Amount, Estimated Fair Value and Fair Value Hierarchy Level (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
In Thousands, unless otherwise specified | ||||||
Financial assets: | ' | ' | ' | ' | ||
Cash and cash equivalents | $81,071 | $175,686 | $69,140 | $89,484 | ||
Investment securities-available for sale | 285,808 | 316,614 | ' | ' | ||
Investment securities-trading | 3,437 | 1,447 | ' | ' | ||
Net portfolio loans and leases | 1,531,670 | 1,384,031 | ' | ' | ||
Mortgage servicing rights | 4,750 | 4,491 | ' | ' | ||
Other assets | 18,846 | 10,912 | ' | ' | ||
Financial liabilities: | ' | ' | ' | ' | ||
Deposits | 1,591,347 | 1,634,682 | ' | ' | ||
Short-term borrowings | 10,891 | 9,403 | ' | ' | ||
FHLB advances and other borrowings | 205,644 | 161,315 | ' | ' | ||
Other liabilities | 23,044 | 25,688 | ' | ' | ||
Carrying Amount | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Investment securities-available for sale | 285,808 | [1] | 316,614 | [1] | ' | ' |
Investment securities-trading | 3,437 | [1] | 1,447 | [1] | ' | ' |
Total financial assets | 1,929,905 | 1,907,416 | ' | ' | ||
Financial liabilities: | ' | ' | ' | ' | ||
Total financial liabilities | 1,831,767 | 1,832,321 | ' | ' | ||
Carrying Amount | Level 1 | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Cash and cash equivalents | 81,071 | [1] | 175,686 | [1] | ' | ' |
Carrying Amount | Level 2 | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Loans held for sale | 1,350 | [1] | 3,412 | [1] | ' | ' |
Financial liabilities: | ' | ' | ' | ' | ||
Deposits | 1,591,347 | [1] | 1,634,682 | [1] | ' | ' |
Short-term borrowings | 10,891 | [1] | 9,403 | [1] | ' | ' |
FHLB advances and other borrowings | 205,644 | [1] | 161,315 | [1] | ' | ' |
Other liabilities | 23,885 | [1] | 26,921 | [1] | ' | ' |
Carrying Amount | Level 3 | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Net portfolio loans and leases | 1,531,670 | [1] | 1,384,031 | [1] | ' | ' |
Mortgage servicing rights | 4,750 | [1] | 4,491 | [1] | ' | ' |
Other assets | 21,819 | [1] | 21,735 | [1] | ' | ' |
Estimated Fair Value | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Investment securities-available for sale | 285,808 | [1] | 316,614 | [1] | ' | ' |
Investment securities-trading | 3,437 | [1] | 1,447 | [1] | ' | ' |
Total financial assets | 1,933,849 | 1,936,221 | ' | ' | ||
Financial liabilities: | ' | ' | ' | ' | ||
Total financial liabilities | 1,831,140 | 1,835,971 | ' | ' | ||
Estimated Fair Value | Level 1 | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Cash and cash equivalents | 81,071 | [1] | 175,686 | [1] | ' | ' |
Estimated Fair Value | Level 2 | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Loans held for sale | 1,350 | [1] | 3,482 | [1] | ' | ' |
Financial liabilities: | ' | ' | ' | ' | ||
Deposits | 1,591,215 | [1] | 1,635,374 | [1] | ' | ' |
Short-term borrowings | 10,891 | [1] | 9,403 | [1] | ' | ' |
FHLB advances and other borrowings | 205,149 | [1] | 164,273 | [1] | ' | ' |
Other liabilities | 23,885 | [1] | 26,921 | [1] | ' | ' |
Estimated Fair Value | Level 3 | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Net portfolio loans and leases | 1,534,631 | [1] | 1,412,619 | [1] | ' | ' |
Mortgage servicing rights | 5,733 | [1] | 4,638 | [1] | ' | ' |
Other assets | $21,819 | [1] | $21,735 | [1] | ' | ' |
[1] | see Note 13 in the Notes to Consolidated Financial Statements for a description of hierarchy levels |
Fair_Value_of_Assets_Measured_
Fair Value of Assets Measured on Recurring and Non-Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | $289.20 | $318 |
Total assets measured at fair value on a non-recurring basis | 17.2 | 21.5 |
Obligations of the U.S. government agencies | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | 69.6 | 73.9 |
Obligations of state and political subdivisions | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | 37 | 30.4 |
Mortgage-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | 119.4 | 131.8 |
Total assets measured at fair value on a non-recurring basis | 0.2 | 0.9 |
Collateralized mortgage obligations | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | 44.2 | 62.7 |
Mutual funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | 14.9 | 15 |
Investment certificate of deposit | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | ' | 2.3 |
Other debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | 4.1 | 1.9 |
Impaired loans and leases | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value on a non-recurring basis | 16.1 | 19.7 |
Other real estate owned | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value on a non-recurring basis | 0.9 | 0.9 |
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | 14.9 | 15 |
Level 1 | Mutual funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | 14.9 | 15 |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | 274.3 | 303 |
Level 2 | Obligations of the U.S. government agencies | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | 69.6 | 73.9 |
Level 2 | Obligations of state and political subdivisions | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | 37 | 30.4 |
Level 2 | Mortgage-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | 119.4 | 131.8 |
Level 2 | Collateralized mortgage obligations | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | 44.2 | 62.7 |
Level 2 | Investment certificate of deposit | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | ' | 2.3 |
Level 2 | Other debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | 4.1 | 1.9 |
Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured on a recurring basis at fair value | 0 | 0 |
Total assets measured at fair value on a non-recurring basis | 17.2 | 21.5 |
Level 3 | Mortgage-backed securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value on a non-recurring basis | 0.2 | 0.9 |
Level 3 | Impaired loans and leases | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value on a non-recurring basis | 16.1 | 19.7 |
Level 3 | Other real estate owned | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value on a non-recurring basis | $0.90 | $0.90 |
Fair_Value_Measurement_Additio
Fair Value Measurement - Additional Information (Detail) (Allowance for Loan and Lease Losses, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Loan and Lease Losses | ' | ' |
Fair Value Measurements Disclosure [Line Items] | ' | ' |
Net increase (decrease) in allowance | $218 | $975 |
Four_Zero_One_K_Plan_and_Other
Four Zero One (K) Plan and Other Defined Contribution Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Deferred compensation expense | $906 | $271 | $203 |
Four Zero One K Plan | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Percentage the corporation contributes for employee's contribution | 100.00% | ' | ' |
Maximum percentage the corporation contributes for defined benefit plan | 3.00% | ' | ' |
Corporation's expenses for 401(K) Plan | 803 | 747 | 618 |
The corporation's expense for non - matching discretionary contribution | 1,000 | 879 | 652 |
SERP III | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Deferred compensation expense | $221 | ' | ' |
Pension_and_Postretirement_Ben2
Pension and Postretirement Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
OptionPlan | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Percentage of asset allocation, investments for long-term growth | 60.00% | ' | ||
Percentage of asset allocation, production of current income | 40.00% | ' | ||
Percentage of corporation's future pension expense | 10.00% | ' | ||
QDBP | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Number of defined benefit pension plans | 3 | ' | ||
Percentage of asset allocation | 100.00% | 100.00% | ||
QDBP | Minimum | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Defined benefit plan employee eligible age | 20.5 | ' | ||
SERP I and SERP II | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Number of defined benefit pension plans | 2 | ' | ||
Maximum defined benefit plan curtailment | 20.00% | ' | ||
Expected contribution to SERP | 146 | ' | ||
PRBP | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Percentage of maximum annual payment under Post Retirement Benefit Plan | 120.00% | ' | ||
Equity Securities | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Common stock allowed to be retained by QDBP | 2.10% | 1.70% | ||
Percentage of asset allocation | 60.00% | ' | ||
Equity Securities | QDBP | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Percentage of asset allocation | 63.00% | [1] | 61.00% | [1] |
Subsidiaries | QDBP | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Common stock allowed to be retained by QDBP | 2.50% | ' | ||
[1] | Includes Bryn Mawr Bank Corporation common stock in the amount of $951 thousand, or 2.1%, and $702 thousand, or 1.7%, at December 31, 2013 and 2012, respectively. |
Actuarial_Assumptions_Used_to_
Actuarial Assumptions Used to Determine Benefit Obligations (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
QDBP | ' | ' |
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | ' | ' |
Discount rate | 4.60% | 3.70% |
Expected long-term rate of return on plan assets | 7.50% | 7.50% |
SERP I and SERP II | ' | ' |
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | ' | ' |
Discount rate | 4.60% | 3.70% |
Rate of increase for future compensation | 3.50% | 3.50% |
PRBP | ' | ' |
Schedule of Pension and Other Postretirement Benefits Changes in Benefit Obligation and Fair Value of Plan Assets [Line Items] | ' | ' |
Discount rate | 4.60% | 3.70% |
Changes_in_Benefit_Obligations
Changes in Benefit Obligations and Plan Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in plan assets | ' | ' | ' |
Fair value of plan assets at December 31 | $45,573 | $40,666 | ' |
QDBP | ' | ' | ' |
Change in benefit obligations | ' | ' | ' |
Benefit obligation at January 1 | 40,825 | 38,056 | ' |
Interest cost | 1,484 | 1,576 | 1,708 |
Actuarial (gain) loss | -4,145 | 2,973 | ' |
Benefits paid | -1,798 | -1,780 | ' |
Benefit obligation at December 31 | 36,366 | 40,825 | 38,056 |
Change in plan assets | ' | ' | ' |
Fair value of plan assets at January 1 | 40,666 | 38,295 | ' |
Actual return on plan assets | 6,705 | 4,151 | ' |
Benefits paid | -1,798 | -1,780 | ' |
Fair value of plan assets at December 31 | 45,573 | 40,666 | 38,295 |
Funded status at year end (plan assets less benefit obligations) | 9,207 | -159 | ' |
Amounts included in the consolidated balance sheet as other assets (liabilities) and accumulated other comprehensive income including the following: | ' | ' | ' |
Prepaid benefit cost/(accrued liability) | 16,346 | 16,573 | ' |
Net actuarial loss | -7,139 | -16,732 | ' |
Unrecognized net initial obligation | ' | ' | ' |
Net amount recognized | 9,207 | -159 | ' |
SERP I and SERP II | ' | ' | ' |
Change in benefit obligations | ' | ' | ' |
Benefit obligation at January 1 | 6,693 | 5,862 | ' |
Service cost | 71 | 243 | 230 |
Interest cost | 188 | 243 | 248 |
Actuarial (gain) loss | 10 | 491 | ' |
Curtailments | -2,808 | ' | ' |
Benefits paid | -146 | -146 | ' |
Benefit obligation at December 31 | 4,008 | 6,693 | 5,862 |
Change in plan assets | ' | ' | ' |
Employer contribution | 146 | 146 | ' |
Benefits paid | -146 | -146 | ' |
Funded status at year end (plan assets less benefit obligations) | -4,008 | -6,693 | ' |
Amounts included in the consolidated balance sheet as other assets (liabilities) and accumulated other comprehensive income including the following: | ' | ' | ' |
Prepaid benefit cost/(accrued liability) | -3,201 | -3,669 | ' |
Net actuarial loss | -790 | -2,169 | ' |
Prior service cost | -17 | -855 | ' |
Unrecognized net initial obligation | ' | ' | ' |
Net amount recognized | -4,008 | -6,693 | ' |
PRBP | ' | ' | ' |
Change in benefit obligations | ' | ' | ' |
Benefit obligation at January 1 | 842 | 913 | ' |
Interest cost | 29 | 36 | 48 |
Plan participants contribution | 38 | 49 | ' |
Actuarial (gain) loss | -65 | 36 | ' |
Benefits paid | -156 | -192 | ' |
Benefit obligation at December 31 | 688 | 842 | 913 |
Change in plan assets | ' | ' | ' |
Employer contribution | 118 | 143 | ' |
Plan participants' contribution | 38 | 49 | ' |
Benefits paid | -156 | -192 | ' |
Funded status at year end (plan assets less benefit obligations) | -688 | -842 | ' |
Amounts included in the consolidated balance sheet as other assets (liabilities) and accumulated other comprehensive income including the following: | ' | ' | ' |
Prepaid benefit cost/(accrued liability) | -250 | -263 | ' |
Net actuarial loss | -438 | -579 | ' |
Unrecognized net initial obligation | ' | ' | ' |
Net amount recognized | ($688) | ($842) | ' |
Components_of_Net_Periodic_Pen
Components of Net Periodic Pension Costs (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Gain on curtailment | $690 | ' | ' |
Discount Rate Used in the Calculation of Periodic Pension Costs | 3.70% | 4.20% | 5.30% |
QDBP | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Interest cost | 1,484 | 1,576 | 1,708 |
Expected return on plan assets | -2,981 | -2,804 | -2,214 |
Recognition of net actuarial loss | 1,724 | 1,786 | 899 |
Net periodic pension (benefit) cost | 227 | 558 | 393 |
SERP I and SERP II | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 71 | 243 | 230 |
Interest cost | 188 | 243 | 248 |
Amortization of prior service cost | 31 | 82 | 82 |
Recognition of net actuarial loss | 78 | 86 | 49 |
Gain on curtailment | -690 | ' | ' |
Net periodic pension (benefit) cost | -322 | 654 | 609 |
PRBP | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Interest cost | 29 | 36 | 48 |
Settlement | ' | ' | ' |
Amortization of transition obligation | ' | 26 | 26 |
Amortization of prior service cost | ' | ' | -55 |
Recognition of net actuarial loss | 76 | 79 | 77 |
Net periodic pension (benefit) cost | $105 | 141 | 96 |
Details_of_Plan_Asset_Allocati
Details of Plan Asset Allocation and Qualified Defined Benefit Plan's Policy Asset Allocation Range (Detail) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
QDBP | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Percentage of QDBP Plan Assets | 100.00% | 100.00% | ||
Equity Securities | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Asset Allocation Range, Minimum | 50.00% | [1],[2] | 50.00% | [1],[2] |
Asset Allocation Range, Maximum | 65.00% | [1],[2] | 65.00% | [1],[2] |
Percentage of QDBP Plan Assets | 60.00% | ' | ||
Equity Securities | QDBP | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Percentage of QDBP Plan Assets | 63.00% | [2] | 61.00% | [2] |
Fixed Income Investments | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Asset Allocation Range, Minimum | 10.00% | [1] | 10.00% | [1] |
Asset Allocation Range, Maximum | 30.00% | [1] | 30.00% | [1] |
Fixed Income Investments | QDBP | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Percentage of QDBP Plan Assets | 14.00% | 19.00% | ||
Alternative Investments | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Asset Allocation Range, Minimum | 0.00% | [1] | 0.00% | [1] |
Asset Allocation Range, Maximum | 30.00% | [1] | 30.00% | [1] |
Alternative Investments | QDBP | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Percentage of QDBP Plan Assets | 20.00% | 14.00% | ||
Cash reserves | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Asset Allocation Range, Minimum | 1.00% | [1] | 1.00% | [1] |
Asset Allocation Range, Maximum | 5.00% | [1] | 5.00% | [1] |
Cash reserves | QDBP | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ||
Percentage of QDBP Plan Assets | 3.00% | [1] | 6.00% | [1] |
[1] | Asset categories that fall outside the asset allocation range (policy) are outside the range on a short-term basis and is often related to the timing of plan funding and subsequent investment. Reallocation is done regularly in order to adhere to the plan's asset allocation policy | |||
[2] | Includes Bryn Mawr Bank Corporation common stock in the amount of $951 thousand, or 2.1%, and $702 thousand, or 1.7%, at December 31, 2013 and 2012, respectively. |
Details_of_Plan_Asset_Allocati1
Details of Plan Asset Allocation and Qualified Defined Benefit Plan's Policy Asset Allocation Range (Parenthetical) (Detail) (Equity Securities, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Equity Securities | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Bryn Mawr Bank Corporation common stock included in plan assets | $951 | $702 |
Percentage of Bryn Mawr Bank Corporation common stock included in plan assets | 2.10% | 1.70% |
Fair_Value_of_Qualified_Define
Fair Value of Qualified Defined Benefit Plan Assets Measured on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Total assets measured on a recurring basis at fair value | $45,573 | $40,666 | |
Cash reserves | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Total assets measured on a recurring basis at fair value | 1,218 | 2,576 | |
Alternative Investments | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Total assets measured on a recurring basis at fair value | 9,196 | [1] | 5,664 |
Common Stock | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Total assets measured on a recurring basis at fair value | 2,698 | 703 | |
Equity mutual funds | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Total assets measured on a recurring basis at fair value | 26,187 | 23,950 | |
Mutual funds | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Total assets measured on a recurring basis at fair value | 6,274 | 7,773 | |
Level 1 | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Total assets measured on a recurring basis at fair value | 42,124 | 37,271 | |
Level 1 | Cash reserves | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Total assets measured on a recurring basis at fair value | 1,218 | 2,576 | |
Level 1 | Alternative Investments | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Total assets measured on a recurring basis at fair value | 5,747 | [1] | 2,269 |
Level 1 | Common Stock | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Total assets measured on a recurring basis at fair value | 2,698 | 703 | |
Level 1 | Equity mutual funds | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Total assets measured on a recurring basis at fair value | 26,187 | 23,950 | |
Level 1 | Mutual funds | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Total assets measured on a recurring basis at fair value | 6,274 | 7,773 | |
Level 2 | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Total assets measured on a recurring basis at fair value | 3,449 | 3,395 | |
Level 2 | Alternative Investments | ' | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | |
Total assets measured on a recurring basis at fair value | $3,449 | [1] | $3,395 |
[1] | Alternative investments include exchange-traded products which are considered Level 1 and hedge fund investments which are considered Level 2. |
Benefit_Payments_Which_Reflect
Benefit Payments, Which Reflect Expected Future Services, Expected to be Paid Over Next Ten Years (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
QDBP | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $1,863 |
2015 | 1,948 |
2016 | 1,976 |
2017 | 1,975 |
2018 | 2,029 |
2019-2022 | 10,846 |
SERP I and SERP II | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | 146 |
2015 | 260 |
2016 | 258 |
2017 | 255 |
2018 | 252 |
2019-2022 | 1,340 |
PRBP | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | 117 |
2015 | 106 |
2016 | 95 |
2017 | 84 |
2018 | 74 |
2019-2022 | $240 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive (Loss) Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning balance | ($10,078) | ($11,365) | ($6,757) |
Net change | 4,513 | 1,287 | -4,608 |
Ending balance | -5,565 | -10,078 | -11,365 |
Accumulated Net Unrealized Investment Gain (Loss) | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning balance | 3,164 | 1,792 | 1,054 |
Net change | -4,021 | 1,372 | 738 |
Ending balance | -857 | 3,164 | 1,792 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning balance | -23 | ' | ' |
Net change | 766 | -23 | ' |
Ending balance | 743 | -23 | ' |
Accumulated Defined Benefit Plans Adjustment | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning balance | -13,219 | -13,157 | -7,811 |
Net change | 7,768 | -62 | -5,346 |
Ending balance | ($5,451) | ($13,219) | ($13,157) |
Amounts_Reclassified_from_Each
Amounts Reclassified from Each Component of Accumulated Other Comprehensive (Loss) Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net gain on curtailment of nonqualified pension plan | ' | ' | ' | ' | ' | ' | ' | ' | $690 | ' | ' | |||
Income (loss) before income taxes | 9,890 | 9,638 | 9,342 | 8,160 | 7,977 | 8,310 | 8,153 | 7,777 | 37,030 | 32,217 | 29,143 | |||
Less: income tax (expense) benefit | -3,419 | -3,237 | -3,090 | -2,840 | -2,673 | -2,885 | -2,808 | -2,704 | -12,586 | -11,070 | -9,541 | |||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Accumulated Net Unrealized Investment Gain (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Realization of loss (gain) on sale of investment securities available for sale | ' | ' | ' | ' | ' | ' | ' | ' | -8 | 1,415 | 1,783 | |||
Less: income tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | 3 | -495 | -624 | |||
Net of income tax | ' | ' | ' | ' | ' | ' | ' | ' | -5 | 920 | 1,159 | |||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Unfunded pension liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amortization of net loss included in net periodic pension costs | ' | ' | ' | ' | ' | ' | ' | ' | 1,878 | [1] | 1,951 | [1] | 1,025 | [1] |
Amortization of prior service cost included in net periodic pension costs | ' | ' | ' | ' | ' | ' | ' | ' | 31 | [1] | 82 | [1] | 27 | [1] |
Amortization of transition obligation included in net periodic pension costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26 | [1] | 26 | [1] | |
Net gain on curtailment of nonqualified pension plan | ' | ' | ' | ' | ' | ' | ' | ' | -690 | ' | ' | |||
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 1,219 | 2,059 | 1,078 | |||
Less: income tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | 427 | 721 | 377 | |||
Net of income tax | ' | ' | ' | ' | ' | ' | ' | ' | $792 | $1,338 | $701 | |||
[1] | Accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 15-Pension and Other Post-Retirement Benefit Plans |
Components_of_Net_Deferred_Tax
Components of Net Deferred Tax Asset (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Loan and lease loss reserve | $6,124 | $6,010 |
Other reserves | 1,190 | 1,506 |
Net operating loss carry-forward | 1,841 | 2,187 |
Alternative minimum tax credits | 567 | 568 |
Amortizing fair value adjustments, FKF merger | 2,367 | 2,778 |
Unrealized depreciation of available for sale securities | 462 | ' |
Defined benefit plans | 4,142 | 8,494 |
Total deferred tax asset | 16,693 | 21,543 |
Deferred tax liabilities: | ' | ' |
Other reserves | -219 | -165 |
QDBP | -5,721 | -5,800 |
Originated MSRs | -1,663 | -1,572 |
Unrealized appreciation of derivative used for cash flow hedge | -400 | ' |
Unrealized appreciation of available for sale securities | ' | -1,703 |
Total deferred tax liability | -8,003 | -9,240 |
Total net deferred tax asset | $8,690 | $12,303 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | 15-May-12 | |
Internal Revenue Service (IRS) | Davidson Trust Company | ||
Income Taxes [Line Items] | ' | ' | ' |
Deferred tax assets related to leasing subsidiary | $86,000 | ' | ' |
Percentage of deferred tax assets related to leasing subsidiary valuation allowance | 100.00% | ' | ' |
Net deferred tax liability | ' | ' | 1,300,000 |
Likelihood of tax benefit realized upon ultimate settlement tax benefit sustained | 50.00% | ' | ' |
Net operating loss carry-forwards for federal income tax purpose | ' | 5,300,000 | ' |
Alternative minimum tax credit carry forward | ' | 567,000 | ' |
Net operating loss carry-forwards expiration year | ' | '2030 | ' |
Unrecognized deferred income taxes | $563,000 | ' | ' |
Components_of_Provision_Benefi
Components of Provision (Benefit) for Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components Of Income Tax Expense Benefit [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current | ' | ' | ' | ' | ' | ' | ' | ' | $11,391 | $11,575 | $6,231 |
Deferred | ' | ' | ' | ' | ' | ' | ' | ' | 1,195 | -505 | 3,310 |
Income tax expense | $3,419 | $3,237 | $3,090 | $2,840 | $2,673 | $2,885 | $2,808 | $2,704 | $12,586 | $11,070 | $9,541 |
Applicable_Income_Taxes_Differ
Applicable Income Taxes Differed from Amount Derived by Applying Statutory Federal Tax Rate to Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation Of Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Computed tax expense at statutory federal rate | ' | ' | ' | ' | ' | ' | ' | ' | $12,960 | $11,276 | $10,200 |
Tax-exempt income | ' | ' | ' | ' | ' | ' | ' | ' | -414 | -382 | -395 |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | 40 | 176 | -264 |
Income tax expense | $3,419 | $3,237 | $3,090 | $2,840 | $2,673 | $2,885 | $2,808 | $2,704 | $12,586 | $11,070 | $9,541 |
Computed tax expense at statutory federal rate | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
Tax-exempt income | ' | ' | ' | ' | ' | ' | ' | ' | -1.10% | -1.20% | -1.40% |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | 0.10% | 0.50% | -0.90% |
Total income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 34.00% | 34.30% | 32.70% |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Apr. 28, 2010 | Apr. 25, 2007 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Minimum | Maximum | Stock Option | Performance Share Program | Restricted Stock Awards | Restricted Stock Awards | Restricted Stock Awards | Performance Stock Awards | Performance Stock Awards | Performance Stock Awards | First Keystone Financial Inc. | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock award for grants | ' | 445,002 | 428,996 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum earnings of PSAs and PSUs | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fully vested options which had been granted to former FKF employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,133 |
Interest rate option period | ' | ' | ' | '1 month | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock award expenses | ' | ' | ' | ' | ' | $179 | ' | $322 | ' | ' | $503 | ' | ' | ' |
Not-yet-recognized compensation expense of unvested award | ' | ' | ' | ' | ' | $64 | ' | $475 | ' | ' | $1,500 | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | ' | ' | '8 months | ' | '1 year 8 months 12 days | ' | ' | '2 years 2 months 12 days | ' | ' | ' |
Performance shares granted | ' | ' | ' | ' | ' | ' | 75,367 | 6,665 | 31,948 | 29,741 | 75,367 | 73,217 | 60,238 | ' |
Expected volatility | 27.97% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk free rate of return | 0.73% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Correlation co-efficient | 0.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining_Shares_Authorized_to
Remaining Shares Authorized to be Granted for Options, Restricted Stock Awards and Performance Stock Awards (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Options, RSAs or PSAs | ' | ' | ' |
Options, RSAs or PSAs | ' | ' | ' |
Balance, Number of Shares | 292,781 | 377,496 | 425,884 |
Unexercised options expired | 250 | 9,883 | 19,330 |
Unexercised options cancelled | 650 | 5,755 | 19,464 |
Balance, Number of Shares | 216,905 | 292,781 | 377,496 |
Restricted Stock Awards | ' | ' | ' |
Options, RSAs or PSAs | ' | ' | ' |
Balance, Number of Shares | 60,287 | 38,681 | 11,920 |
Stock awards granted | -6,665 | -31,948 | -29,741 |
PSAs forfeited | 3,681 | ' | ' |
Balance, Number of Shares | 54,156 | 60,287 | 38,681 |
Restricted Stock Awards | Four year cliff-vesting | ' | ' | ' |
Options, RSAs or PSAs | ' | ' | ' |
Stock awards granted | ' | ' | -15,648 |
Restricted Stock Awards | Three year cliff-vesting | ' | ' | ' |
Options, RSAs or PSAs | ' | ' | ' |
Stock awards granted | ' | -31,948 | -14,093 |
Performance Share Program | ' | ' | ' |
Options, RSAs or PSAs | ' | ' | ' |
Stock awards granted | -75,367 | ' | ' |
Performance Share Program | Three year cliff-vesting | ' | ' | ' |
Options, RSAs or PSAs | ' | ' | ' |
Stock awards granted | ' | -73,217 | -60,238 |
Performance Stock Awards | ' | ' | ' |
Options, RSAs or PSAs | ' | ' | ' |
Balance, Number of Shares | 186,113 | 117,708 | 60,267 |
Stock awards granted | -75,367 | -73,217 | -60,238 |
PSAs forfeited | 1,575 | 4,812 | 2,797 |
Balance, Number of Shares | 204,980 | 186,113 | 117,708 |
Options, RSAs or RSUs | ' | ' | ' |
Options, RSAs or PSAs | ' | ' | ' |
PSAs forfeited | 3,681 | ' | ' |
Options, RSAs or RSUs | Three year cliff-vesting | ' | ' | ' |
Options, RSAs or PSAs | ' | ' | ' |
Stock awards granted | -6,665 | ' | ' |
Options, PSAs or PSUs | ' | ' | ' |
Options, RSAs or PSAs | ' | ' | ' |
PSAs forfeited | 1,575 | ' | ' |
Options, PSAs or PSUs | Three year cliff-vesting | ' | ' | ' |
Options, RSAs or PSAs | ' | ' | ' |
Stock awards granted | -75,367 | ' | ' |
Remaining_Shares_Authorized_to1
Remaining Shares Authorized to be Granted for Options, Restricted Stock Awards and Performance Stock Awards (Parenthetical) (Detail) | 12 Months Ended | ||||||
Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | |
Four year cliff-vesting | Three year cliff-vesting | Three year cliff-vesting | Three year cliff-vesting | Three year cliff-vesting | Three year cliff-vesting | Three year cliff-vesting | |
Restricted Stock Awards | Restricted Stock Awards | Restricted Stock Awards | Performance Share Program | Performance Share Program | Options, RSAs or RSUs | Options, PSAs or PSUs | |
Share Based Compensation Shares Authorized Under Award Type [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | '4 years | '3 years | '3 years | '3 years | '3 years | '3 years | '3 years |
WeightedAverage_Assumptions_Us
Weighted-Average Assumptions Used for Grants Issued (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected volatility of Corporation's stock | 27.97% |
Risk-free interest rate | 0.73% |
Stock Options | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected dividend yield | 2.60% |
Expected volatility of Corporation's stock | 24.00% |
Risk-free interest rate | 3.70% |
Expected life in years | '7 years |
Weighted average fair value of options granted | 4.83 |
Schedule_of_Information_about_
Schedule of Information about Options Outstanding (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options outstanding, Shares | 783,476 | 876,470 | 993,710 |
Granted, Shares | 12,225 | ' | ' |
Forfeited, Shares | -650 | -5,755 | -16,320 |
Expired, Shares | -250 | -9,883 | -32,330 |
Exercised, Shares | -203,715 | -77,356 | -68,590 |
Options outstanding, Shares | 591,086 | 783,476 | 876,470 |
Options outstanding,Weighted Average Exercise Price | $20.40 | $20.17 | $19.82 |
Granted,Weighted Average Exercise Price | $21.28 | ' | ' |
Forfeited,Weighted Average Exercise Price | $19.65 | $20.56 | $20.94 |
Expired,Weighted Average Exercise Price | $22 | $21.93 | $21.87 |
Exercised,Weighted Average Exercise Price | $19.49 | $17.60 | $14.08 |
Options outstanding,Weighted Average Exercise Price | $20.73 | $20.40 | $20.17 |
Options outstanding, beginning of period, Weighted Average Grant Date Fair Value | $4.62 | $4.49 | $4.44 |
Granted, Weighted Average Grant Date Fair Value | $4.83 | ' | ' |
Forfeited, Weighted Average Grant Date Fair Value | $4.62 | $4.74 | $4.79 |
Expired, Weighted Average Grant Date Fair Value | $4.90 | $5.01 | $5.04 |
Exercised, Weighted Average Grant Date Fair Value | $4.39 | $3.69 | $2.79 |
Options outstanding, end of period, Weighted Average Grant Date Fair Value | $4.70 | $4.62 | $4.49 |
Information_Related_to_Options
Information Related to Options (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Options Outstanding Options Outstanding | 591,086 | |
Options Outstanding Remaining Contractual Life | '3 years 2 months 16 days | |
Options Exercisable Number Exercisable At 12/31/12 | 560,940 | |
Options Exercisable Remaining Contractual Life | '3 years 1 month 6 days | |
Options Exercisable Weighted Average Exercise Price | $20.87 | [1] |
Exercise Price Range One | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of Exercise Prices, minimum | $10.36 | |
Range of Exercise Prices, maximum | $18.59 | |
Options Outstanding Options Outstanding | 140,277 | |
Options Outstanding Remaining Contractual Life | '5 years 2 months 27 days | |
Options Exercisable Number Exercisable At 12/31/12 | 110,131 | |
Options Exercisable Remaining Contractual Life | '5 years 2 months 27 days | |
Options Exercisable Weighted Average Exercise Price | $18.09 | [1] |
Exercise Price Range Two | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of Exercise Prices, minimum | $18.60 | |
Range of Exercise Prices, maximum | $19.69 | |
Options Outstanding Options Outstanding | 111,000 | |
Options Outstanding Remaining Contractual Life | '1 year 4 months 6 days | |
Options Exercisable Number Exercisable At 12/31/12 | 111,000 | |
Options Exercisable Remaining Contractual Life | '1 year 4 months 6 days | |
Options Exercisable Weighted Average Exercise Price | $18.91 | [1] |
Exercise Price Range Three | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of Exercise Prices, minimum | $19.70 | |
Range of Exercise Prices, maximum | $21.48 | |
Options Outstanding Options Outstanding | 121,300 | |
Options Outstanding Remaining Contractual Life | '1 year 6 months 4 days | |
Options Exercisable Number Exercisable At 12/31/12 | 121,300 | |
Options Exercisable Remaining Contractual Life | '1 year 6 months 4 days | |
Options Exercisable Weighted Average Exercise Price | $21.05 | [1] |
Exercise Price Range Four | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of Exercise Prices, minimum | $21.49 | |
Range of Exercise Prices, maximum | $22.03 | |
Options Outstanding Options Outstanding | 101,745 | |
Options Outstanding Remaining Contractual Life | '3 years 5 months 1 day | |
Options Exercisable Number Exercisable At 12/31/12 | 101,745 | |
Options Exercisable Remaining Contractual Life | '3 years 5 months 1 day | |
Options Exercisable Weighted Average Exercise Price | $21.99 | [1] |
Exercise Price Range Five | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of Exercise Prices, minimum | $22.04 | |
Range of Exercise Prices, maximum | $23.97 | |
Options Outstanding Options Outstanding | 9,000 | |
Options Outstanding Remaining Contractual Life | '2 years 3 months 4 days | |
Options Exercisable Number Exercisable At 12/31/12 | 9,000 | |
Options Exercisable Remaining Contractual Life | '2 years 3 months 4 days | |
Options Exercisable Weighted Average Exercise Price | $23 | [1] |
Exercise Price Range Six | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Range of Exercise Prices, minimum | $23.98 | |
Range of Exercise Prices, maximum | $24.27 | |
Options Outstanding Options Outstanding | 107,764 | |
Options Outstanding Remaining Contractual Life | '4 years 3 months 7 days | |
Options Exercisable Number Exercisable At 12/31/12 | 107,764 | |
Options Exercisable Remaining Contractual Life | '4 years 3 months 7 days | |
Options Exercisable Weighted Average Exercise Price | $24.27 | [1] |
[1] | price of exercisable options |
Schedule_of_Information_about_1
Schedule of Information about Unvested Options (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Balance, Number of Shares | 80,756 | 158,515 | 249,574 |
Granted, Shares | 12,225 | ' | ' |
Vested, Shares | -62,185 | -72,004 | -74,739 |
Forfeited, Shares | -650 | -5,755 | -16,320 |
Balance, Number of Shares | 30,146 | 80,756 | 158,515 |
Balance,Weighted Average Grant Date Fair Value | $4.65 | $4.73 | $4.76 |
Granted,Weighted Average Grant Date Fair Value | $4.83 | ' | ' |
Vested,Weighted Average Grant Date Fair Value | $4.80 | $4.82 | $4.82 |
Forfeited,Weighted Average Grant Date Fair Value | $4.62 | $4.74 | $4.79 |
Balance,Weighted Average Grant Date Fair Value | $4.42 | $4.65 | $4.73 |
Schedule_of_Proceeds_Related_T
Schedule of Proceeds, Related Tax Benefits Realized from Options Exercised and Intrinsic Value of Options Exercised (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Proceeds from strike price of value of options exercised | $3,970 | $1,362 | $966 |
Related tax benefit recognized | 376 | 100 | 141 |
Proceeds of options exercised | 4,346 | 1,462 | 1,107 |
Intrinsic value of options exercised | $1,215 | $269 | $444 |
Schedule_of_Information_about_2
Schedule of Information about Options Outstanding and Exercisable (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number | 591,086 | 783,476 | 876,470 | 993,710 |
Weighted average exercise price | $20.73 | $20.40 | $20.17 | $19.82 |
Aggregate intrinsic value | $5,583,266 | $1,691,778 | $549,495 | ' |
Weighted average contractual term | '3 years 2 months 12 days | '3 years 7 months 6 days | '4 years 3 months 18 days | ' |
Number of shares, Exercisable | 560,940 | 702,720 | 717,955 | ' |
Weighted average exercise price, Exercisable | $20.87 | $20.46 | $20.10 | ' |
Aggregate intrinsic value, Exercisable | $5,224,227 | $1,455,766 | $437,549 | ' |
Weighted average contractual term in years, Exercisable | '3 years 1 month 6 days | '3 years 3 months 18 days | '3 years 8 months 12 days | ' |
Schedule_of_Unvested_Restricte
Schedule of Unvested Restricted Stock Awards (Detail) (Restricted Stock Awards, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock Awards | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Balance, Number of Shares | 60,287 | 38,681 | 11,920 |
Granted, Number of Shares | 6,665 | 31,948 | 29,741 |
Vested, Number of Shares | -9,115 | -10,342 | -2,980 |
Forfeited, Number of Shares | -3,681 | ' | ' |
Balance, Number of Shares | 54,156 | 60,287 | 38,681 |
Balance, Weighted Average Grant Date Fair Value | $19.05 | $18.01 | $16.78 |
Granted, Weighted Average Grant Date Fair Value | $22.50 | $20.41 | $18.37 |
Vested, Weighted Average Grant Date Fair Value | $19.20 | $19.34 | $16.78 |
Forfeited, Weighted Average Grant Date Fair Value | $20.38 | ' | ' |
Balance, Weighted Average Grant Date Fair Value | $19.36 | $19.05 | $18.01 |
Schedule_of_Unvested_Performan
Schedule of Unvested Performance Stock Awards (Detail) (Performance Stock Awards, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Performance Stock Awards | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Balance, Number of Shares | 186,113 | 117,708 | 60,267 |
Granted, Number of Shares | 75,367 | 73,217 | 60,238 |
Vested, Number of Shares | -54,925 | ' | ' |
Forfeited, Number of Shares | -1,575 | -4,812 | -2,797 |
Balance, Number of Shares | 204,980 | 186,113 | 117,708 |
Balance, Weighted Average Grant Date Fair Value | $10.62 | $9.86 | $9.64 |
Granted, Weighted Average Grant Date Fair Value | $13.38 | $11.80 | $10.07 |
Vested, Weighted Average Grant Date Fair Value | $9.64 | ' | ' |
Forfeited, Weighted Average Grant Date Fair Value | $10.77 | $9.88 | $9.64 |
Balance, Weighted Average Grant Date Fair Value | $11.90 | $10.62 | $9.86 |
Calculation_of_Basic_and_Dilut
Calculation 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, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||||
Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Numerator-Net income available to common shareholders | $6,471 | $6,401 | $6,252 | $5,320 | $5,304 | $5,425 | $5,345 | $5,073 | $24,444 | $21,147 | $19,602 | |||||||||||
Denominator for basic earnings per share -Weighted average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 13,311,215 | [1] | 13,090,110 | [1] | 12,659,824 | [1] | ||||||||
Effect of dilutive potential common shares | ' | ' | ' | ' | ' | ' | ' | ' | 260,395 | 151,736 | 82,313 | |||||||||||
Denominator for diluted earnings per share -Adjusted weighted average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 13,571,610 | 13,241,846 | 12,742,137 | |||||||||||
Basic earnings per share | $0.48 | [2] | $0.48 | [2] | $0.47 | [2] | $0.40 | [2] | $0.40 | [2] | $0.41 | [2] | $0.41 | [2] | $0.39 | [2] | $1.84 | $1.62 | $1.55 | |||
Diluted earnings per share | $0.47 | [2] | $0.47 | [2] | $0.46 | [2] | $0.40 | [2] | $0.40 | [2] | $0.41 | [2] | $0.40 | [2] | $0.39 | [2] | $1.80 | $1.60 | $1.54 | |||
Antidilutive shares excluded from computation of average dilutive earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | 848,477 | 941,005 | |||||||||||
[1] | excludes restricted stock | |||||||||||||||||||||
[2] | Earnings per share is computed independently for each period shown. As a result, the sum of the quarters may not equal the total earnings per share for the year. |
Components_of_Other_Operating_
Components of Other Operating Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Noninterest Income [Line Items] | ' | ' | ' |
Merchant interchange fees | $814 | $665 | $559 |
Commissions and fees | 578 | 510 | 468 |
Safe deposit box rentals | 387 | 398 | 407 |
Insurance commissions | 651 | 444 | 403 |
Other investment income | 348 | 349 | 153 |
Title insurance income | 192 | 272 | 119 |
Rent income | 202 | 162 | 116 |
Miscellaneous other income | 1,542 | 1,043 | 1,181 |
Other operating income | $4,714 | $3,843 | $3,406 |
Components_of_Other_Operating_1
Components of Other Operating Expense (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Noninterest Expense [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Information technology | ' | ' | ' | ' | ' | ' | ' | ' | $2,876 | $2,060 | $1,518 |
Loan processing | ' | ' | ' | ' | ' | ' | ' | ' | 966 | 1,485 | 1,114 |
Other taxes | ' | ' | ' | ' | ' | ' | ' | ' | 1,007 | 1,164 | 973 |
Temporary help and recruiting | ' | ' | ' | ' | ' | ' | ' | ' | 1,624 | 1,031 | 532 |
Telephone and data lines | ' | ' | ' | ' | ' | ' | ' | ' | 1,378 | 652 | 514 |
Travel and entertainment | ' | ' | ' | ' | ' | ' | ' | ' | 630 | 567 | 507 |
Stationary and supplies | ' | ' | ' | ' | ' | ' | ' | ' | 508 | 516 | 496 |
Postage | ' | ' | ' | ' | ' | ' | ' | ' | 515 | 433 | 415 |
Director fees | ' | ' | ' | ' | ' | ' | ' | ' | 452 | 409 | 359 |
Outsourced services | ' | ' | ' | ' | ' | ' | ' | ' | 457 | 355 | 180 |
Portfolio maintenance | ' | ' | ' | ' | ' | ' | ' | ' | 366 | 266 | 313 |
Dues and subscriptions | ' | ' | ' | ' | ' | ' | ' | ' | 394 | 326 | 287 |
Contributions | ' | ' | ' | ' | ' | ' | ' | ' | 355 | 301 | 279 |
Insurance | ' | ' | ' | ' | ' | ' | ' | ' | 689 | 402 | 277 |
Deferred compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | 906 | 271 | 203 |
Miscellaneous other expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,637 | 1,962 | 1,879 |
Other operating expense | $20,658 | $19,323 | $20,524 | $20,235 | $21,089 | $18,889 | $18,128 | $16,795 | $14,760 | $12,200 | $9,846 |
Loan_Activity_Loans_Granted_to
Loan Activity, Loans Granted to Principal Officers, Directors and Their Affiliates (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | ' | ' |
Balance, January 1 | $2,884 | $6,004 |
Additions | 200 | 5 |
Amounts collected | -52 | -3,125 |
Balance, December 31 | $3,032 | $2,884 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | USD ($) | UAH |
Related Party Transaction [Line Items] | ' | ' |
Related party deposits | $2 | 1.7 |
Recovered_Sheet3
Financial Instruments With Off-Balance Sheet Risk, Contingencies And Concentration Of Credit Risk - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
LegalMatter | LegalMatter | LegalMatter | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | ' |
Number of make-whole requests settled | 2 | 0 | 0 |
Value of make-whole requests settled | $278,000 | ' | ' |
Commitments to Extend Credit | ' | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | ' |
Off-balance sheet liabilities | 405,300,000 | ' | ' |
Standby Letters of Credit | ' | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | ' |
Off-balance sheet liabilities | $21,200,000 | ' | ' |
Dividend_Restrictions_Addition
Dividend Restrictions - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Restrictions on Subsidiary Dividends and Loans or Advances [Line Items] | ' | ' |
Total retained net income available for dividend | $24.80 | $24.80 |
Regulatory_Capital_Requirement2
Regulatory Capital Requirements - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Apr. 27, 2012 | Apr. 30, 2012 | Apr. 27, 2012 | Apr. 27, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Before Amendment | After Amendment | First Keystone Financial Inc. | Private Wealth Management Group Of Hershey Trust Company | Dividend Reinvestment And Share Purchase Plan | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Prospectus in Shelf Registration Statement securities authorized to be issued | ' | $150,000,000 | ' | ' | ' | ' | ' |
Number of common stock shares registered Shelf Registration Statement | ' | ' | 850,000 | 1,500,000 | ' | ' | ' |
Maximum amount of investment under Dividend Reinvestment and Stock Purchase Plan | 120,000 | ' | ' | ' | ' | ' | ' |
Shares issued | ' | ' | ' | ' | ' | ' | 7,455 |
Value of shares issued | ' | ' | ' | ' | ' | ' | 176,000 |
Common shares issued, shares | ' | ' | ' | ' | 1,630,053 | 322,101 | ' |
Value of common shares issued | ' | ' | ' | ' | $26,500,000 | $6,700,000 | ' |
Corporations_and_Banks_Actual_
Corporation's and Bank's Actual Capital Amounts and Ratios (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Total (Tier II) capital to risk weighted assets | $200,667 | $174,885 |
Tier I capital to risk weighted assets | 185,022 | 160,425 |
Tier I capital to average assets | 185,022 | 160,425 |
Total (Tier II) capital to risk weighted assets | 12.55% | 12.02% |
Tier I capital to risk weighted assets | 11.57% | 11.02% |
Tier I capital to average assets | 9.29% | 8.72% |
Total (Tier II) capital to risk weighted assets | 159,924 | 145,528 |
Tier I capital to risk weighted assets | 95,954 | 87,317 |
Tier I capital to average assets | 99,543 | 91,989 |
Total (Tier II) capital to risk weighted assets | 10.00% | 10.00% |
Tier I capital to risk weighted assets | 6.00% | 6.00% |
Tier I capital to average assets | 5.00% | 5.00% |
Subsidiaries | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Total (Tier II) capital to risk weighted assets | 197,463 | 176,985 |
Tier I capital to risk weighted assets | 181,818 | 162,525 |
Tier I capital to average assets | 181,818 | 162,525 |
Total (Tier II) capital to risk weighted assets | 12.38% | 12.20% |
Tier I capital to risk weighted assets | 11.40% | 11.20% |
Tier I capital to average assets | 9.14% | 8.84% |
Total (Tier II) capital to risk weighted assets | 159,493 | 145,124 |
Tier I capital to risk weighted assets | 95,696 | 87,074 |
Tier I capital to average assets | $99,424 | $91,940 |
Total (Tier II) capital to risk weighted assets | 10.00% | 10.00% |
Tier I capital to risk weighted assets | 6.00% | 6.00% |
Tier I capital to average assets | 5.00% | 5.00% |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Interest income | $20,525 | $19,820 | $19,217 | $18,855 | $18,682 | $18,081 | $18,188 | $18,372 | $78,417 | $73,323 | $74,562 | ||||||||
Interest expense | 1,400 | 1,287 | 1,294 | 1,446 | 1,786 | 2,130 | 2,285 | 2,387 | 5,427 | 8,588 | 11,661 | ||||||||
Net interest income | 19,125 | 18,533 | 17,923 | 17,409 | 16,896 | 15,951 | 15,903 | 15,985 | 72,990 | 64,735 | 62,901 | ||||||||
Provision for loan and lease losses | 812 | 959 | 1,000 | 804 | 1,000 | 1,000 | 1,003 | 1,000 | 3,575 | 4,003 | 6,088 | ||||||||
Other income | 12,235 | 11,387 | 12,943 | 11,790 | 13,170 | 12,248 | 11,381 | 9,587 | ' | ' | ' | ||||||||
Other expense | 20,658 | 19,323 | 20,524 | 20,235 | 21,089 | 18,889 | 18,128 | 16,795 | 14,760 | 12,200 | 9,846 | ||||||||
Income (loss) before income taxes | 9,890 | 9,638 | 9,342 | 8,160 | 7,977 | 8,310 | 8,153 | 7,777 | 37,030 | 32,217 | 29,143 | ||||||||
Income tax expense (benefit) | 3,419 | 3,237 | 3,090 | 2,840 | 2,673 | 2,885 | 2,808 | 2,704 | 12,586 | 11,070 | 9,541 | ||||||||
Net income (loss) | $6,471 | $6,401 | $6,252 | $5,320 | $5,304 | $5,425 | $5,345 | $5,073 | $24,444 | $21,147 | $19,602 | ||||||||
Basic earnings per common share | $0.48 | [1] | $0.48 | [1] | $0.47 | [1] | $0.40 | [1] | $0.40 | [1] | $0.41 | [1] | $0.41 | [1] | $0.39 | [1] | $1.84 | $1.62 | $1.55 |
Diluted earnings per common share | $0.47 | [1] | $0.47 | [1] | $0.46 | [1] | $0.40 | [1] | $0.40 | [1] | $0.41 | [1] | $0.40 | [1] | $0.39 | [1] | $1.80 | $1.60 | $1.54 |
Dividend declared | $0.18 | $0.17 | $0.17 | $0.17 | $0.16 | $0.16 | $0.16 | $0.16 | $0.69 | $0.64 | $0.60 | ||||||||
[1] | Earnings per share is computed independently for each period shown. As a result, the sum of the quarters may not equal the total earnings per share for the year. |
Condensed_Balance_Sheet_of_Par
Condensed Balance Sheet of Parent (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ' | ' |
Cash | $81,071 | $175,686 | $69,140 | $89,484 |
Premises and equipment, net | 31,796 | 31,170 | ' | ' |
Goodwill | 32,843 | 32,897 | 24,689 | ' |
Other assets | 18,846 | 10,912 | ' | ' |
Total assets | 2,061,665 | 2,035,885 | 1,773,400 | ' |
Liabilities and shareholders' equity: | ' | ' | ' | ' |
Borrowings | 10,891 | 9,403 | ' | ' |
Other liabilities | 23,044 | 25,688 | ' | ' |
Total liabilities | 1,831,767 | 1,832,321 | ' | ' |
Common stock, par value $1, authorized 100,000,000 shares issued 16,596,869 shares and 16,390,608 shares as of December 31, 2013 and 2012, respectively, and outstanding 13,650,354 shares and 13,412,690 shares as of December 31, 2013 and 2012, respectively | 16,597 | 16,390 | ' | ' |
Paid-in capital in excess of par value | 95,673 | 89,137 | ' | ' |
Less common stock in treasury, at cost-2,946,515 shares and 2,977,918 shares as of December 31, 2013 and 2012, respectively | -30,764 | -30,745 | ' | ' |
Accumulated other comprehensive loss, net of deferred income taxes benefit | -5,565 | -10,078 | -11,365 | -6,757 |
Retained earnings | 153,957 | 138,860 | ' | ' |
Total shareholders' equity | 229,898 | 203,564 | 184,379 | 160,037 |
Total liabilities and shareholders' equity | 2,061,665 | 2,035,885 | ' | ' |
Parent Company | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Cash | 5,435 | 5,392 | 4,402 | 4,208 |
Investment securities | 401 | 99 | ' | ' |
Investments in subsidiaries, as equity in net assets | 227,245 | 206,496 | ' | ' |
Premises and equipment, net | 2,582 | 2,681 | ' | ' |
Goodwill | 245 | 245 | ' | ' |
Other assets | 2,164 | 896 | ' | ' |
Total assets | 238,072 | 215,809 | ' | ' |
Liabilities and shareholders' equity: | ' | ' | ' | ' |
Borrowings | 7,050 | 9,400 | ' | ' |
Other liabilities | 1,124 | 2,845 | ' | ' |
Total liabilities | 8,174 | 12,245 | ' | ' |
Common stock, par value $1, authorized 100,000,000 shares issued 16,596,869 shares and 16,390,608 shares as of December 31, 2013 and 2012, respectively, and outstanding 13,650,354 shares and 13,412,690 shares as of December 31, 2013 and 2012, respectively | 16,597 | 16,390 | ' | ' |
Paid-in capital in excess of par value | 95,673 | 89,137 | ' | ' |
Less common stock in treasury, at cost-2,946,515 shares and 2,977,918 shares as of December 31, 2013 and 2012, respectively | -30,764 | -30,745 | ' | ' |
Accumulated other comprehensive loss, net of deferred income taxes benefit | -5,565 | -10,078 | ' | ' |
Retained earnings | 153,957 | 138,860 | ' | ' |
Total shareholders' equity | 229,898 | 203,564 | ' | ' |
Total liabilities and shareholders' equity | $238,072 | $215,809 | ' | ' |
Condensed_Balance_Sheet_of_Par1
Condensed Balance Sheet of Parent (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 16,596,869 | 16,390,608 |
Common stock, shares outstanding | 13,650,354 | 13,412,690 |
Common stock in treasury, shares | 2,946,515 | 2,977,918 |
Parent Company | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 16,596,869 | 16,390,608 |
Common stock, shares outstanding | 13,650,354 | 13,412,690 |
Common stock in treasury, shares | 2,946,515 | 2,977,918 |
Condensed_Income_Statement_of_
Condensed Income Statement of Parent (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before equity in undistributed income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | $37,030 | $32,217 | $29,143 |
Income (loss) before income taxes | 9,890 | 9,638 | 9,342 | 8,160 | 7,977 | 8,310 | 8,153 | 7,777 | 37,030 | 32,217 | 29,143 |
Income tax expense (benefit) | 3,419 | 3,237 | 3,090 | 2,840 | 2,673 | 2,885 | 2,808 | 2,704 | 12,586 | 11,070 | 9,541 |
Net income | 6,471 | 6,401 | 6,252 | 5,320 | 5,304 | 5,425 | 5,345 | 5,073 | 24,444 | 21,147 | 19,602 |
Parent Company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 8,165 | 13,075 | 9,650 |
Interest and other income | ' | ' | ' | ' | ' | ' | ' | ' | 2,062 | 2,672 | 2,646 |
Total operating income | ' | ' | ' | ' | ' | ' | ' | ' | 10,227 | 15,747 | 12,296 |
Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1,996 | 2,410 | 2,678 |
Income before equity in undistributed income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 8,231 | 13,337 | 9,618 |
Equity in undistributed income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 16,236 | 7,761 | 9,973 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 24,467 | 21,098 | 19,591 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 23 | -49 | -11 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | $24,444 | $21,147 | $19,602 |
Condensed_Cash_Flow_of_Parent_
Condensed Cash Flow of Parent (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $6,471 | $6,401 | $6,252 | $5,320 | $5,304 | $5,425 | $5,345 | $5,073 | $24,444 | $21,147 | $19,602 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 6,836 | 6,713 | 5,688 |
Net gain on sale of available for sale securities | ' | ' | ' | ' | ' | ' | ' | ' | 8 | -1,415 | -1,783 |
Stock-based compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | 1,004 | 1,283 | 876 |
Net accretion of fair value adjustments | ' | ' | ' | ' | ' | ' | ' | ' | -3,490 | -1,892 | -2,037 |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 39,881 | 32,643 | 26,526 |
Investing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of available for sale securities | ' | ' | ' | ' | ' | ' | ' | ' | 14,942 | 40,640 | 89,661 |
Acquisitions, net of cash acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | -15,951 | -13,367 |
Net cash used in investing activities | ' | ' | ' | ' | ' | ' | ' | ' | -131,698 | -90,798 | -69,050 |
Financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | -9,297 | -8,529 | -7,679 |
Proceeds from sale of treasury stock | ' | ' | ' | ' | ' | ' | ' | ' | 764 | 317 | ' |
Repurchase of treasury stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -42 |
Proceeds from issuance of common stock | ' | ' | ' | ' | ' | ' | ' | ' | 176 | 2,118 | 8,325 |
Excess tax benefit from stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | 708 | 112 | 141 |
Proceeds from exercise of stock options | ' | ' | ' | ' | ' | ' | ' | ' | 3,970 | 1,363 | 966 |
Net cash (used in) provided by financing activities | ' | ' | ' | ' | ' | ' | ' | ' | -2,798 | 164,701 | 22,180 |
Change in cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | -94,615 | 106,546 | -20,344 |
Cash and cash equivalents at beginning of period | ' | ' | ' | 175,686 | ' | ' | ' | 69,140 | 175,686 | 69,140 | 89,484 |
Cash and cash equivalents at end of period | 81,071 | ' | ' | ' | 175,686 | ' | ' | ' | 81,071 | 175,686 | 69,140 |
Parent Company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 24,444 | 21,147 | 19,602 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in undistributed income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -16,236 | -7,761 | -9,973 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 98 | 98 | 105 |
Net gain on sale of available for sale securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -38 |
Stock-based compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | 1,004 | 1,283 | 876 |
Net accretion of fair value adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -55 |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | -1,138 | -239 | 360 |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 8,172 | 14,528 | 10,877 |
Investing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of available for sale securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99 |
Acquisitions, net of cash acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | -9,278 | -13,367 |
Sale of subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,500 | 18,411 |
Investment in subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,800 | -17,200 |
Net cash used in investing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,578 | -12,057 |
Financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | -9,297 | -8,529 | -7,679 |
Change in other borrowings | ' | ' | ' | ' | ' | ' | ' | ' | -2,350 | -4,291 | 11,691 |
Decrease in junior subordinated debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -12,028 |
Proceeds from sale of treasury stock | ' | ' | ' | ' | ' | ' | ' | ' | 1,317 | 317 | ' |
Repurchase of treasury stock | ' | ' | ' | ' | ' | ' | ' | ' | -553 | ' | -42 |
Proceeds from issuance of common stock | ' | ' | ' | ' | ' | ' | ' | ' | 176 | 2,118 | 8,325 |
Payment of contingent consideration for business combinations | ' | ' | ' | ' | ' | ' | ' | ' | -2,100 | -1,050 | ' |
Excess tax benefit from stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | 708 | 112 | 141 |
Proceeds from exercise of stock options | ' | ' | ' | ' | ' | ' | ' | ' | 3,970 | 1,363 | 966 |
Net cash (used in) provided by financing activities | ' | ' | ' | ' | ' | ' | ' | ' | -8,129 | -9,960 | 1,374 |
Change in cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | 43 | 990 | 194 |
Cash and cash equivalents at beginning of period | ' | ' | ' | 5,392 | ' | ' | ' | 4,402 | 5,392 | 4,402 | 4,208 |
Cash and cash equivalents at end of period | $5,435 | ' | ' | ' | $5,392 | ' | ' | ' | $5,435 | $5,392 | $4,402 |
Schedule_of_Detail_Segment_Inf
Schedule of Detail Segment Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Net interest income | $19,125 | $18,533 | $17,923 | $17,409 | $16,896 | $15,951 | $15,903 | $15,985 | $72,990 | $64,735 | $62,901 | |||
Less: loan loss provision | 812 | 959 | 1,000 | 804 | 1,000 | 1,000 | 1,003 | 1,000 | 3,575 | 4,003 | 6,088 | |||
Net interest income after loan loss provision | ' | ' | ' | ' | ' | ' | ' | ' | 69,415 | 60,732 | 56,813 | |||
Other income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Fees for wealth management services | ' | ' | ' | ' | ' | ' | ' | ' | 35,184 | 29,798 | 21,669 | |||
Service charges on deposit accounts | ' | ' | ' | ' | ' | ' | ' | ' | 2,445 | 2,477 | 2,495 | |||
Loan servicing and other fees | ' | ' | ' | ' | ' | ' | ' | ' | 1,845 | 1,776 | 1,824 | |||
Net gain on sale of loans | ' | ' | ' | ' | ' | ' | ' | ' | 4,117 | 6,735 | 2,517 | |||
Net (loss) gain on sale of available for sale securities | ' | ' | ' | ' | ' | ' | ' | ' | -8 | 1,415 | 1,783 | |||
Net (loss) gain on sale of other real estate owned | ' | ' | ' | ' | ' | ' | ' | ' | -300 | -86 | -97 | |||
BOLI income | ' | ' | ' | ' | ' | ' | ' | ' | 358 | 428 | 462 | |||
Other operating income | ' | ' | ' | ' | ' | ' | ' | ' | 4,714 | 3,843 | 3,406 | |||
Total non-interest income | ' | ' | ' | ' | ' | ' | ' | ' | 48,355 | 46,386 | 34,059 | |||
Other expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Salaries & wages | ' | ' | ' | ' | ' | ' | ' | ' | 36,346 | 33,131 | 28,084 | |||
Employee benefits | ' | ' | ' | ' | ' | ' | ' | ' | 8,832 | 8,127 | 6,889 | |||
Occupancy & equipment | ' | ' | ' | ' | ' | ' | ' | ' | 6,862 | 5,874 | 5,176 | |||
Amortization of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 2,633 | 2,411 | 1,490 | |||
Professional fees | ' | ' | ' | ' | ' | ' | ' | ' | 2,456 | 2,868 | 2,311 | |||
Other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 23,611 | 22,490 | 17,779 | |||
Total non-interest expenses | ' | ' | ' | ' | ' | ' | ' | ' | 80,740 | 74,901 | 61,729 | |||
Income before equity in undistributed income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 37,030 | 32,217 | 29,143 | |||
Pre-tax segment profit after eliminations | ' | ' | ' | ' | ' | ' | ' | ' | 37,030 | 32,217 | 29,143 | |||
% of segment pre-tax profit after eliminations | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 100.00% | |||
Segment assets | 2,061,665 | ' | ' | ' | 2,035,885 | ' | ' | ' | 2,061,665 | 2,035,885 | 1,773,400 | |||
Banking | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net interest income | ' | ' | ' | ' | ' | ' | ' | ' | 72,987 | 64,731 | 62,894 | |||
Less: loan loss provision | ' | ' | ' | ' | ' | ' | ' | ' | 3,575 | 4,003 | 6,088 | |||
Net interest income after loan loss provision | ' | ' | ' | ' | ' | ' | ' | ' | 69,412 | 60,728 | 56,806 | |||
Other income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Service charges on deposit accounts | ' | ' | ' | ' | ' | ' | ' | ' | 2,445 | 2,477 | 2,495 | |||
Loan servicing and other fees | ' | ' | ' | ' | ' | ' | ' | ' | 1,845 | 1,776 | 1,824 | |||
Net gain on sale of loans | ' | ' | ' | ' | ' | ' | ' | ' | 4,117 | 6,735 | 2,517 | |||
Net (loss) gain on sale of available for sale securities | ' | ' | ' | ' | ' | ' | ' | ' | -8 | 1,415 | 1,783 | |||
Net (loss) gain on sale of other real estate owned | ' | ' | ' | ' | ' | ' | ' | ' | -300 | -86 | -97 | |||
BOLI income | ' | ' | ' | ' | ' | ' | ' | ' | 358 | 428 | 462 | |||
Other operating income | ' | ' | ' | ' | ' | ' | ' | ' | 4,546 | 3,737 | 3,390 | |||
Total non-interest income | ' | ' | ' | ' | ' | ' | ' | ' | 13,003 | 16,482 | 12,374 | |||
Other expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Salaries & wages | ' | ' | ' | ' | ' | ' | ' | ' | 24,210 | 22,248 | 20,016 | |||
Employee benefits | ' | ' | ' | ' | ' | ' | ' | ' | 5,942 | 5,660 | 4,837 | |||
Occupancy & equipment | ' | ' | ' | ' | ' | ' | ' | ' | 5,357 | 4,619 | 4,149 | |||
Amortization of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 312 | 294 | 324 | |||
Professional fees | ' | ' | ' | ' | ' | ' | ' | ' | 2,246 | 2,665 | 2,156 | |||
Other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 20,080 | 19,290 | 15,776 | |||
Total non-interest expenses | ' | ' | ' | ' | ' | ' | ' | ' | 58,147 | 54,776 | 47,258 | |||
Income before equity in undistributed income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 24,268 | 22,434 | 21,922 | |||
Pre-tax segment profit after eliminations | ' | ' | ' | ' | ' | ' | ' | ' | 23,896 | 21,950 | 21,585 | |||
% of segment pre-tax profit after eliminations | ' | ' | ' | ' | ' | ' | ' | ' | 64.50% | 68.10% | 74.10% | |||
Segment assets | 2,020,700 | ' | ' | ' | 1,990,900 | ' | ' | ' | 2,020,700 | 1,990,900 | 1,738,900 | |||
Banking | Intersegment (revenues) expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Other expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | -372 | [1] | -484 | [1] | -337 | [1] |
Wealth Management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net interest income | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 4 | 7 | |||
Net interest income after loan loss provision | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 4 | 7 | |||
Other income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Fees for wealth management services | ' | ' | ' | ' | ' | ' | ' | ' | 35,184 | 29,798 | 21,669 | |||
Other operating income | ' | ' | ' | ' | ' | ' | ' | ' | 168 | 106 | 16 | |||
Total non-interest income | ' | ' | ' | ' | ' | ' | ' | ' | 35,352 | 29,904 | 21,685 | |||
Other expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Salaries & wages | ' | ' | ' | ' | ' | ' | ' | ' | 12,136 | 10,883 | 8,068 | |||
Employee benefits | ' | ' | ' | ' | ' | ' | ' | ' | 2,890 | 2,467 | 2,052 | |||
Occupancy & equipment | ' | ' | ' | ' | ' | ' | ' | ' | 1,505 | 1,255 | 1,027 | |||
Amortization of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 2,321 | 2,117 | 1,166 | |||
Professional fees | ' | ' | ' | ' | ' | ' | ' | ' | 210 | 203 | 155 | |||
Other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 3,531 | 3,200 | 2,003 | |||
Total non-interest expenses | ' | ' | ' | ' | ' | ' | ' | ' | 22,593 | 20,125 | 14,471 | |||
Income before equity in undistributed income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 12,762 | 9,783 | 7,221 | |||
Pre-tax segment profit after eliminations | ' | ' | ' | ' | ' | ' | ' | ' | 13,134 | 10,267 | 7,558 | |||
% of segment pre-tax profit after eliminations | ' | ' | ' | ' | ' | ' | ' | ' | 35.50% | 31.90% | 25.90% | |||
Segment assets | 41,000 | ' | ' | ' | 45,000 | ' | ' | ' | 41,000 | 45,000 | 34,500 | |||
Wealth Management | Intersegment (revenues) expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Other expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | $372 | [1] | $484 | [1] | $337 | [1] |
[1] | Intersegment revenues consist of rental payments, deposit interest and management fees. |
Schedule_of_Wealth_Management_
Schedule of Wealth Management Segment Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Assets under management, administration, supervision and brokerage | $7,268.30 | $6,663.20 |