Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 25, 2015 | Jun. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | STOCK YARDS BANCORP, INC. | ||
Entity Central Index Key | 835324 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $391,167,000 | ||
Entity Common Stock, Shares Outstanding | 14,738,480 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $42,216 | $34,519 |
Federal funds sold and interest bearing due from banks | 32,025 | 36,251 |
Cash and cash equivalents | 74,241 | 70,770 |
Mortgage loans held for sale | 3,747 | 1,757 |
Securities available-for-sale (amortized cost of $509,276 in 2014 and $493,066 in 2013) | 513,056 | 490,031 |
Federal Home Loan Bank stock and other securities | 6,347 | 7,347 |
Loans | 1,868,550 | 1,721,350 |
Less allowance for loan losses | 24,920 | 28,522 |
Net loans | 1,843,630 | 1,692,828 |
Premises and equipment, net | 39,088 | 39,813 |
Bank owned life insurance | 30,107 | 29,180 |
Accrued interest receivable | 5,980 | 5,712 |
Other assets | 47,672 | 51,824 |
Total assets | 2,563,868 | 2,389,262 |
Deposits | ||
Non-interest bearing | 523,947 | 423,350 |
Interest bearing | 1,599,680 | 1,557,587 |
Total deposits | 2,123,627 | 1,980,937 |
Securities sold under agreements to repurchase | 69,559 | 62,615 |
Federal funds purchased | 47,390 | 55,295 |
Accrued interest payable | 131 | 128 |
Other liabilities | 26,434 | 26,514 |
Federal Home Loan Bank advances | 36,832 | 34,329 |
Total liabilities | 2,303,973 | 2,159,818 |
Stockholders' equity: | ||
Preferred stock, no par value; 1,000,000 shares authorized; no shares issued or outstanding | ||
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding 14,744,684 shares in 2014 and 14,608,556 shares in 2013 | 10,035 | 9,581 |
Additional paid-in capital | 38,191 | 33,255 |
Retained earnings | 209,584 | 188,825 |
Accumulated other comprehensive income (loss) | 2,085 | -2,217 |
Total stockholders' equity | 259,895 | 229,444 |
Total liabilities and stockholders' equity | $2,563,868 | $2,389,262 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets | ||
Securities available for sale, amortized cost (in dollars) | $509,276 | $493,066 |
Preferred stock, par value (in dollars per share) | $0 | $0 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 14,744,684 | 14,608,556 |
Common stock, shares outstanding | 14,744,684 | 14,608,556 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest income: | |||
Loans | $79,884 | $78,703 | $79,398 |
Federal funds sold | 292 | 295 | 320 |
Mortgage loans held for sale | 174 | 219 | 344 |
Securities | |||
Taxable | 7,565 | 6,099 | 5,657 |
Tax-exempt | 1,172 | 1,148 | 1,182 |
Total interest income | 89,087 | 86,464 | 86,901 |
Interest expense: | |||
Deposits | 4,321 | 5,011 | 7,166 |
Securities sold under agreements to repurchase | 140 | 146 | 180 |
Federal funds purchased | 29 | 32 | 31 |
Federal Home Loan Bank advances | 840 | 887 | 2,461 |
Subordinated debentures | 3,090 | 3,113 | |
Total interest expense | 5,330 | 9,166 | 12,951 |
Net interest income | 83,757 | 77,298 | 73,950 |
(Credit) provision for loan losses | -400 | 6,550 | 11,500 |
Net interest income after provision for loan losses | 84,157 | 70,748 | 62,450 |
Non-interest income: | |||
Investment management and trust services | 18,212 | 16,287 | 14,278 |
Service charges on deposit accounts | 8,883 | 8,986 | 8,516 |
Bankcard transaction revenue | 4,673 | 4,378 | 3,985 |
Mortgage banking revenue | 2,653 | 3,978 | 5,771 |
Loss on sales of securities available for sale | -9 | -5 | |
Brokerage commissions and fees | 2,060 | 2,159 | 2,593 |
Bank owned life insurance income | 927 | 1,031 | 1,006 |
Gain on acquisition | 449 | ||
Other | 1,756 | 1,739 | 2,308 |
Total non-interest income | 39,155 | 39,002 | 38,457 |
Non-interest expenses: | |||
Salaries and employee benefits | 44,687 | 41,145 | 37,960 |
Net occupancy expense | 5,963 | 5,615 | 5,651 |
Data processing expense | 6,393 | 6,319 | 5,278 |
Furniture and equipment expense | 1,016 | 1,126 | 1,306 |
FDIC insurance | 1,314 | 1,431 | 1,494 |
Acquisition costs | 1,548 | ||
(Gain) loss on other real estate owned | -271 | 652 | 1,410 |
Other | 14,107 | 13,516 | 12,373 |
Total non-interest expenses | 73,209 | 71,352 | 65,472 |
Income before income taxes | 50,103 | 38,398 | 35,435 |
Income tax expense | 15,281 | 11,228 | 9,634 |
Net income | $34,822 | $27,170 | $25,801 |
Net income per share, basic (in dollars per share) | $2.39 | $1.91 | $1.86 |
Net income per share, diluted (in dollars per share) | $2.36 | $1.89 | $1.85 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Comprehensive Income | |||
Net income | $34,822 | $27,170 | $25,801 |
Unrealized (losses) gains on securities available-for-sale: | |||
Unrealized gains (losses) arising during the period (net of tax of $2,383, $(4,234), and $(24), respectively) | 4,423 | -7,863 | -45 |
Unrealized gains on hedging instruments: | |||
Unrealized gains arising during the period (net of tax of $0, $8, and $0, respectively) | 16 | ||
Minimum pension liability adjustment (net of tax of $(69), $111, and $2, respectively) | -127 | 206 | 4 |
Reclassification adjustment for securities losses reclassified out of other comprehensive income into loss on sale of securities available-for-sale (net of tax $3, $2, and $0, respectively) | 6 | 3 | |
Other comprehensive income (loss) | 4,302 | -7,638 | -41 |
Comprehensive income | $39,124 | $19,532 | $25,760 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Comprehensive Income | |||
Unrealized gain (loss) on securities available-for-sale arising during the period, tax | $2,383 | ($4,234) | ($24) |
Unrealized gains on hedging instruments arising during the period, tax | 0 | 8 | 0 |
Reclassification adjustment for securities losses reclassified out of other comprehensive income into loss on sale of securities available- for- sale, tax | 3 | 2 | 0 |
Minimum pension liability adjustment, tax | ($69) | $111 | $2 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Total |
In Thousands, unless otherwise specified | |||||
Balance at Dec. 31, 2011 | $6,953 | $14,599 | $160,672 | $5,462 | $187,686 |
Balance (in shares) at Dec. 31, 2011 | 13,819 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 25,801 | 25,801 | |||
Other comprehensive income (loss), net of tax | -41 | -41 | |||
Stock compensation expense | 1,481 | 1,481 | |||
Stock issued for exercise of stock options and dividend reinvestment plan, net of withholdings to satisfy employee tax obligations upon vesting of stock awards | 233 | 1,166 | -2 | 1,397 | |
Stock issued for exercise of stock options and dividend reinvestment plan, net of withholdings to satisfy employee tax obligations upon vesting of stock awards (in shares) | 70 | ||||
Stock issued for non-vested restricted stock | 190 | 1,108 | -1,298 | ||
Stock issued for non-vested restricted stock (in shares) | 57 | ||||
Cash dividends, $0.77, $0.81 and $0.88 per share for the year ended December 31, 2012, 2013 and 2014 respectively | -10,691 | -10,691 | |||
Shares repurchased or cancelled | -103 | -623 | 168 | -558 | |
Shares repurchased or cancelled (in shares) | -31 | ||||
Balance at Dec. 31, 2012 | 7,273 | 17,731 | 174,650 | 5,421 | 205,075 |
Balance (in shares) at Dec. 31, 2012 | 13,915 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 27,170 | 27,170 | |||
Other comprehensive income (loss), net of tax | -7,638 | -7,638 | |||
Stock compensation expense | 1,940 | 1,940 | |||
Stock issued for exercise of stock options and dividend reinvestment plan, net of withholdings to satisfy employee tax obligations upon vesting of stock awards | 503 | 3,041 | -169 | 3,375 | |
Stock issued for exercise of stock options and dividend reinvestment plan, net of withholdings to satisfy employee tax obligations upon vesting of stock awards (in shares) | 151 | ||||
Stock issued for non-vested restricted stock | 184 | 1,083 | -1,267 | ||
Stock issued for non-vested restricted stock (in shares) | 55 | ||||
Stock issued for acquisition | 1,769 | 10,429 | 12,198 | ||
Stock issued for acquisition (in shares) | 531 | ||||
Cash dividends, $0.77, $0.81 and $0.88 per share for the year ended December 31, 2012, 2013 and 2014 respectively | -11,670 | -11,670 | |||
Shares repurchased or cancelled | -148 | -969 | 111 | -1,006 | |
Shares repurchased or cancelled (in shares) | -43 | ||||
Balance at Dec. 31, 2013 | 9,581 | 33,255 | 188,825 | -2,217 | 229,444 |
Balance (in shares) at Dec. 31, 2013 | 14,609 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 34,822 | 34,822 | |||
Other comprehensive income (loss), net of tax | 4,302 | 4,302 | |||
Stock compensation expense | 2,016 | 2,016 | |||
Stock issued for exercise of stock options and dividend reinvestment plan, net of withholdings to satisfy employee tax obligations upon vesting of stock awards | 419 | 2,889 | -114 | 3,194 | |
Stock issued for exercise of stock options and dividend reinvestment plan, net of withholdings to satisfy employee tax obligations upon vesting of stock awards (in shares) | 126 | ||||
Stock issued for non-vested restricted stock | 160 | 994 | -1,155 | -1 | |
Stock issued for non-vested restricted stock (in shares) | 48 | ||||
Cash dividends, $0.77, $0.81 and $0.88 per share for the year ended December 31, 2012, 2013 and 2014 respectively | -12,924 | -12,924 | |||
Shares repurchased or cancelled | -125 | -963 | 130 | -958 | |
Shares repurchased or cancelled (in shares) | -38 | ||||
Balance at Dec. 31, 2014 | $10,035 | $38,191 | $209,584 | $2,085 | $259,895 |
Balance (in shares) at Dec. 31, 2014 | 14,745 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Consolidated Statements of Changes in Stockholders' Equity | |||
Cash dividends (in dollars per share) | $0.88 | $0.81 | $0.77 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net income | $34,822 | $27,170 | $25,801 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
(Credit) provision for loan losses | -400 | 6,550 | 11,500 |
Depreciation, amortization and accretion, net | 7,413 | 7,969 | 4,964 |
Deferred income tax (benefit) expense | -318 | 570 | -2,933 |
Loss on sale of securities available-for-sale | 9 | 5 | |
Gain on sales of mortgage loans held for sale | -1,576 | -2,657 | -4,321 |
Origination of mortgage loans held for sale | -89,069 | -149,745 | -241,128 |
Proceeds from sale of mortgage loans held for sale | 88,655 | 164,692 | 235,783 |
Bank owned life insurance income | -927 | -1,031 | -1,006 |
Increase in value of private investment fund | -637 | ||
Proceeds from liquidation of private investment fund | 2,846 | ||
(Gain) loss on other real estate owned | -271 | 652 | 1,410 |
Loss on the disposal of premises and equipment | 33 | 51 | 190 |
Gain on acquisition | -449 | ||
Stock compensation expense | 2,016 | 1,940 | 1,481 |
Excess tax benefits from share-based compensation arrangements | -378 | -265 | -83 |
(Increase) decrease in accrued interest receivable and other assets | -235 | 736 | 769 |
Increase (decrease) in accrued interest payable and other liabilities | 112 | 2,141 | -19,840 |
Net cash provided by operating activities | 39,886 | 58,329 | 14,796 |
Investing activities | |||
Purchases of securities available-for-sale | -328,894 | -443,969 | -488,390 |
Proceeds from sale of securities available for sale | 7,732 | 696 | 0 |
Proceeds from maturities of securities available-for-sale | 304,078 | 406,385 | 452,447 |
Net increase in loans | -156,200 | -112,156 | -53,599 |
Purchases of premises and equipment | -2,525 | -2,365 | -3,301 |
Acquisition, net of cash acquired | 8,963 | ||
Proceeds from disposal of equipment | 344 | 3 | |
Proceeds from sale of other real estate owned | 5,507 | 6,578 | 2,976 |
Net cash used in investing activities | -169,958 | -135,868 | -89,864 |
Financing activities | |||
Net increase in deposits | 142,690 | 78,809 | 163,954 |
Net (decrease) increase in securities sold under agreements to repurchase and federal funds purchased | -961 | 39,551 | -27,702 |
Proceeds from Federal Home Loan Bank advances | 42,740 | 12,510 | 31,462 |
Repayments of Federal Home Loan Bank advances | -40,237 | -10,063 | -60,011 |
Repayments of subordinated debentures | -30,900 | -10,000 | |
Issuance of common stock for options and dividend reinvestment plan | 2,473 | 2,435 | 961 |
Excess tax benefits from share-based compensation arrangements | 378 | 265 | 83 |
Common stock repurchases | -616 | -331 | -205 |
Cash dividends paid | -12,924 | -11,670 | -10,691 |
Net cash used in financing activities | 133,543 | 80,606 | 87,851 |
Net increase in cash and cash equivalents | 3,471 | 3,067 | 12,783 |
Cash and cash equivalents at beginning of year | 70,770 | 67,703 | 54,920 |
Cash and cash equivalents at end of period | $74,241 | $70,770 | $67,703 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies | ||||||||||
Principles of Consolidation and Nature of Operations | |||||||||||
The consolidated financial statements include the accounts of Stock Yards Bancorp, Inc. (“Bancorp”) and its wholly owned subsidiary, Stock Yards Bank & Trust Company (“the Bank”). Significant intercompany transactions and accounts have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the 2014 presentation. Bancorp has evaluated subsequent events for recognition or disclosure up to the date on which financial statements were issued and determined there were none. | |||||||||||
In addition to traditional commercial and personal banking activities, Bancorp has an investment management and trust department offering a wide range of investment management, retirement planning, trust and estate administration and financial planning services. Bancorp’s primary market area is Louisville, Kentucky and surrounding communities including southern Indiana. Other markets include Indianapolis, Indiana and Cincinnati, Ohio. | |||||||||||
Basis of Financial Statement Presentation and Use of Estimates | |||||||||||
The consolidated financial statements of Bancorp and its subsidiaries have been prepared in conformity with U.S. generally accepted accounting principles (US GAAP) and conform to predominant practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of related revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of other real estate owned, and estimated income tax assets, liabilities and expense. | |||||||||||
Cash Equivalents and Cash Flows | |||||||||||
Cash and cash equivalents include cash and due from banks and Federal funds sold as segregated in the accompanying consolidated balance sheets. The following supplemental cash flow information addresses certain cash payments and noncash transactions for each of the years in the three-year period ended December 31, 2014 as follows: | |||||||||||
Years ended December 31 | |||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||
Cash payments: | |||||||||||
Income tax payments | $ | 13,042 | $ | 8,350 | $ | 10,685 | |||||
Cash paid for interest | 5,327 | 9,210 | 13,017 | ||||||||
Non-cash transactions: | |||||||||||
Transfers from loans to other real estate owned | $ | 5,798 | $ | 5,246 | $ | 4,486 | |||||
Securities | |||||||||||
Securities available-for-sale include securities that may be sold in response to changes in interest rates, resultant prepayment risk and other factors related to interest rate and prepayment risk changes. Securities available-for-sale are carried at fair value with unrealized gains or losses, net of tax effect, included in stockholders’ equity. Amortization of premiums and accretion of discounts are recorded using the interest method over the life of the security. Gains or losses on sales of securities are computed on a specific identification basis. Declines in fair value of investment securities available-for-sale (with certain exceptions for debt securities noted below) that are deemed to be other-than-temporary are charged to earnings as a realized loss, and a new cost basis for the securities is established. In evaluating other-than-temporary impairment, management considers the length of time and extent to which fair value has been less than cost, financial condition and near-term prospects of the issuer, and the intent and ability of Bancorp to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value in the near term. Declines in fair value of debt securities below amortized cost are deemed to be other-than-temporary in circumstances where: (1) Bancorp has the intent to sell a security; (2) it is more likely than not that Bancorp will be required to sell the security before recovery of its amortized cost basis; or (3) Bancorp does not expect to recover the entire amortized cost basis of the security. If Bancorp intends to sell a security or if it is more likely than not that Bancorp will be required to sell the security before recovery, an other-than-temporary impairment write-down is recognized in earnings equal to the difference between the security’s amortized cost basis and its fair value. If Bancorp does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the other-than-temporary impairment write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in other comprehensive income. Declines in value judged to be other-than-temporary are included in gains (losses) on sales of securities available-for-sale in the consolidated statements of income. See Note 4 to Bancorp’s consolidated financial statements for additional information on investment securities. | |||||||||||
Mortgage Loans Held for Sale | |||||||||||
Mortgage loans held for sale are initially recorded at the lower of cost or market value on an individual loan basis. All of these loans are covered by investor commitments. | |||||||||||
Loans | |||||||||||
Loans are stated at the unpaid principal balance plus deferred loan origination fees, net of deferred loan costs. Loan fees, net of any costs, are deferred and amortized over the life of the related loan on an effective yield basis. Interest income on loans is recorded on the accrual basis except for those loans in a non-accrual income status. Loans are placed in a non-accrual income status when prospects for recovering both principal and accrued interest are considered doubtful or when a default of principal or interest has existed for 90 days or more unless such loan is well secured and in the process of collection. When a loan is placed on non-accrual status, any interest previously accrued but not yet collected is reversed against current income. Interest income is recorded on a cash basis during the period a loan is on non-accrual status so long as the recovery of principal is reasonably assured. Non-accrual loans may be returned to accrual status once prospects for recovering both principal and accrued interest are reasonably assured. Loans are accounted for as troubled debt restructuring when Bancorp, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. If a loan is restructured at a market rate for a new loan with comparable risk, no principal forgiveness has been granted, and the loan is not impaired based on the terms specified by the restructuring agreement, it shall be removed from restructured status generally after six months of performance. | |||||||||||
Loans are classified as impaired when it is probable Bancorp will be unable to collect interest and principal according to the terms of the loan agreement. These loans are measured based on the present value of future cash flows discounted at the loans’ effective interest rate or at the estimated fair value of the loans’ collateral, if applicable. Impaired loans consist of loans in non-accrual status or loans accounted for as troubled debt restructuring. | |||||||||||
Allowance for Loan Losses | |||||||||||
The allowance for loan losses is management’s estimate of probable inherent losses on outstanding loans. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Prior to 2013, management measured the appropriateness of the allowance for loan losses in its entirety using (a) quantitative (historical loss rates) and qualitative factors (management adjustment factors); (b) specific allocations on impaired loans, and (c) an unallocated amount. The unallocated amount was evaluated on the loan portfolio in its entirety and was based on additional factors, such as national and local economic trends and conditions, changes in volume and severity of past due loans, volume of non-accrual loans, volume and severity of adversely classified or graded loans and other factors and trends that affect specific loans and categories of loans, such as a heightened risk in the commercial and industrial loan portfolios. Bancorp utilized the sum of all allowance amounts derived as described above, including a reasonable unallocated allowance, as an indicator of the appropriate level of allowance for loan and lease losses. | |||||||||||
During 2013, Bancorp refined its allowance calculation to allocate the portion of allowance that was previously deemed to be unallocated to instead be included in management’s determination of appropriate qualitative factors. This refined allowance calculation includes specific allowance allocations for qualitative factors including, among other factors, (i) national and local economic conditions, (ii) the quality and experience of lending staff and management, (iii) changes in lending policies and procedures, (iv) changes in volume and severity of past due loans, classified loans and non-performing loans, (v) potential impact of any concentrations of credit, (vi) changes in the nature and terms of loans such as growth rates and utilization rates, (vii) changes in the value of underlying collateral for collateral-dependent loans, considering Bancorp’s disposition bias, and (viii) the effect of other external factors such as the legal and regulatory environment. Bancorp may also consider other qualitative factors for additional allowance allocations, including changes in Bancorp’s loan review process. Changes in the criteria used in this evaluation or the availability of new information could cause the allowance to be increased or decreased in future periods. In addition, bank regulatory agencies, as part of their examination process, may require adjustments to the allowance for loan losses based on their judgments and estimates. | |||||||||||
Based on this quantitative and qualitative analysis, (credits) provisions are made to the allowance for loan losses. Such (credits) provisions are reflected as a (benefit to) charge against current earnings in Bancorp’s consolidated statements of income. | |||||||||||
The adequacy of the allowance for loan losses is monitored by the internal loan review staff and reported quarterly to the Audit Committee of the Board of Directors. This committee has approved the overall methodology. Various regulatory agencies, as an integral part of their examination process, periodically review the adequacy of Bancorp’s allowance for loan losses. Such agencies may require Bancorp to make additional provisions to the allowance based upon their judgments about information available to them at the time of their examinations. | |||||||||||
Acquired loans | |||||||||||
Bancorp acquired loans in the second quarter of 2013 as part of the acquisition referenced in Note 2 to the consolidated financial statements. Acquired loans were initially recorded at their acquisition date fair values. US GAAP prohibits carryover of the allowance for loan losses as any credit losses in the loans are included in the determination of the fair value of the loans at the acquisition date. Fair values for acquired loans were based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, default rates, loss severity, collateral values, discount rates, payment speeds, prepayment risk, and liquidity risk at the time of acquisition. | |||||||||||
Acquired loans that had evidence of deterioration in credit quality since origination and for which it was probable, at acquisition, that Bancorp would be unable to collect all contractually required payments were specifically identified and analyzed. The excess of cash flows expected at acquisition over the estimated fair value is referred to as accretable discount and will be recognized as interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as non-accretable discount. The non-accretable discount represents estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows require Bancorp to evaluate the need for an allowance for loan losses on these loans. Subsequent improvements in expected cash flows will result in the reversal of a corresponding amount of the non-accretable discount which Bancorp will reclassify as an accretable discount that will be recognized into interest income over the remaining life of the loan using the interest method. Bancorp’s evaluation of the amount of future cash flows that it expects to collect is performed in a similar manner as that used to determine its allowance for loan losses. Charge-offs of the principal amount on credit-impaired acquired loans would be first applied to non-accretable discount. | |||||||||||
For acquired loans that are not deemed impaired at acquisition, the methods used to estimate the required allowance for loan losses for acquired loans is the same for originated loans except that any initial fair value adjustment is taken into consideration when calculating any required allowance. | |||||||||||
Premises and Equipment | |||||||||||
Premises and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation of premises and equipment is computed using straight-line methods over the estimated useful lives of the assets ranging from 3 to 40 years. Leasehold improvements are amortized on the straight-line method over the terms of the related leases, including expected renewals, or over the useful lives of the improvements, whichever is shorter. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. | |||||||||||
Other Assets | |||||||||||
Bank-owned life insurance (BOLI) is carried at net realizable value, which considers any applicable surrender charges. Also, Bancorp maintains life insurance policies other than BOLI in conjunction with its non-qualified defined benefit and non-qualified compensation plans. | |||||||||||
Other real estate is carried at the lower of cost or estimated fair value minus estimated selling costs. Any write downs to fair value at the date of acquisition are charged to the allowance for loan losses. In certain situations, improvements to prepare assets for sale are capitalized if those costs increase the estimated fair value of the asset. Expenses incurred in maintaining assets, write downs to reflect subsequent declines in value, and realized gains or losses are reflected in operations and are included in non-interest income and expense. | |||||||||||
Bancorp’s investment in a domestic private investment fund was comprised of bank and other financial industry securities and was accounted for as an equity-method investment in accordance with US GAAP until its liquidation in 2012. | |||||||||||
MSRs are amortized in proportion to and over the period of estimated net servicing income, considering appropriate prepayment assumptions. MSRs are evaluated quarterly for impairment by comparing the carrying value to the fair value. | |||||||||||
Goodwill is measured and evaluated at least annually for impairment. No impairment charges have been deemed necessary or recorded to date, as the fair value is substantially in excess of the carrying value. | |||||||||||
Securities Sold Under Agreements to Repurchase | |||||||||||
Bancorp enters into sales of securities under agreement to repurchase at a specified future date. Such repurchase agreements are considered financing agreements and, accordingly, the obligation to repurchase assets sold is reflected as a liability in the consolidated balance sheets of Bancorp. Repurchase agreements are collateralized by debt securities which are owned and under the control of Bancorp. These agreements are used in conjunction with collateralized corporate cash management accounts. | |||||||||||
Repurchased Shares of Common Stock | |||||||||||
The repurchase of Bancorp’s common stock is recorded at cost, and repurchased shares are returned to the status of authorized, but unissued. Amounts recorded in common stock are based on the stated value of the shares, as there is no par value. Residual amounts are recorded in additional paid in capital. | |||||||||||
Income Taxes | |||||||||||
Bancorp accounts for income taxes using the asset and liability method. The objective of the asset and liability method is to establish deferred tax assets and liabilities for temporary differences between the financial reporting and the tax bases of Bancorp’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of income in the period that includes the enactment date. | |||||||||||
Realization of deferred tax assets associated with the investment in partnerships is dependent upon generating sufficient taxable capital gain income prior to their expiration. A valuation allowance to reflect management’s estimate of the temporary deductible differences that may expire prior to their utilization has been recorded at year-end 2014. No valuation allowance for deferred tax assets was recorded as of December 31, 2013 because Bancorp has sufficient prior taxable income, future projected taxable income, and tax planning strategies to allow for utilization of the deductible temporary differences and capital loss carryforwards within the carryforward period. | |||||||||||
To the extent unrecognized income tax benefits become realized or the related accrued interest is no longer necessary, Bancorp’s provision for income taxes would be favorably impacted. As of December 31, 2014 and 2013, the gross amount of unrecognized tax benefits was $40,000. If recognized, the tax benefits would reduce tax expense and accordingly, increase net income. The amount of unrecognized tax benefits may increase or decrease in the future for various reasons including adding amounts for current tax year positions, expiration of open income tax returns due to statutes of limitation, changes in management’s judgment about the level of uncertainty, status of examination, litigation and legislative activity and the addition or elimination of uncertain tax positions. Stock Yards Bancorp, Inc. and its wholly-owned subsidiary file consolidated income tax returns in applicable jurisdictions. | |||||||||||
Bancorp’s policy is to report interest and penalties, if any, related to unrecognized tax benefits in income tax expense. As of December 31, 2014 and 2013, the amount accrued for the potential payment of interest and penalties was $2,000. | |||||||||||
Bancorp invests in certain partnerships that yield low-income housing, historic and new market tax credits as well as tax deductible losses. The tax benefits and related investment amortization expenses for low-income housing credits are recognized in income tax expense using an effective yield method over the life of the investment. In 2014, the amortization method for investments in new markets and historic tax credit partnerships was changed from the effective yield method to the flow through method. The flow through method matches the amortization period with the time frame over which the credits are realized and amortization expense is recorded as other non-interest expense. | |||||||||||
Net Income Per Share | |||||||||||
Basic net income per common share is determined by dividing net income by the weighted average number of shares of common stock outstanding. Diluted net income per share is determined by dividing net income by the weighted average number of shares of common stock outstanding plus the weighted average number of shares that would be issued upon exercise of dilutive options and stock appreciation rights, assuming proceeds are used to repurchase shares under the treasury stock method. | |||||||||||
Comprehensive Income | |||||||||||
Comprehensive income is defined as the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. For Bancorp, this includes net income, changes in unrealized gains and losses on available-for-sale investment securities and cash flow hedging instruments, net of taxes, and minimum pension liability adjustments, net of taxes. | |||||||||||
Segment Information | |||||||||||
Bancorp provides a broad range of financial services to individuals, corporations and others through its thirty-four full service banking locations as of December 31, 2014. These services include loan and deposit services, cash management services, securities brokerage activities, mortgage origination and investment management and trust activities. Bancorp’s operations are considered by management to be aggregated in two reportable operating segments: commercial banking and investment management and trust. | |||||||||||
Stock-Based Compensation | |||||||||||
For all awards, stock-based compensation expense is recognized over the period in which it is earned based on the fair value of the portion of stock-based payment awards that are ultimately expected to vest, reduced for estimated forfeitures. US GAAP requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||
Derivatives | |||||||||||
Bancorp uses derivative financial instruments as part of its interest rate risk management, including interest rate swaps. US GAAP establishes accounting and reporting standards for derivative instruments and hedging activities. As required by US GAAP, Bancorp’s interest rate swaps are recognized as other assets and liabilities in the consolidated balance sheet at fair value. Accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. To qualify for hedge accounting, Bancorp must comply with detailed rules and documentation requirements at inception of the hedge, and hedge effectiveness is assessed at inception and periodically throughout the life of each hedging relationship. Hedge ineffectiveness, if any, is measured periodically throughout the life of the hedging relationship. | |||||||||||
For derivatives designated as cash flow hedges, the effective portion of changes in fair value of the derivative is initially reported in other comprehensive income and subsequently reclassified to interest income or expense when the hedged transaction affects earnings, while the ineffective portion of changes in fair value of derivative, if any, is recognized immediately in other noninterest income. Bancorp assesses effectiveness of each hedging relationship by comparing the cumulative changes in cash flows of the derivative hedging instrument with the cumulative changes in cash flows of the designated hedged item or transaction. No component of the change in the fair value of the hedging instrument is excluded from the assessment of hedge effectiveness. | |||||||||||
Bancorp offers interest rate swaps to customers desiring long-term fixed rate lending whereby Bancorp receives interest at a fixed rate and pays interest at a variable rate. Simultaneously, Bancorp enters into an interest rate swap agreement with an unrelated counterparty whereby Bancorp pays interest at a fixed rate and receives interest at a variable rate. Because of matching terms of offsetting contracts and the collateral provisions mitigating any non-performance risk, changes in fair value subsequent to initial recognition have an insignificant effect on earnings. Because these derivative instruments have not been designated as hedging instruments, the derivative instruments are recognized on the consolidated balance sheet at fair value, with changes in fair value, due to changes in prevailing interest rates, recorded in other noninterest income. | |||||||||||
Bancorp had no fair value hedging relationships at December 31, 2014 or 2013. Bancorp does not use derivatives for trading or speculative purposes. | |||||||||||
See Note 21 to the consolidated financial statement for more information regarding derivatives. | |||||||||||
Restrictions_on_Cash_and_Due_f
Restrictions on Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2014 | |
Restrictions on Cash and Due from Banks | |
Restrictions on Cash and Due from Banks | (2) Restrictions on Cash and Due from Banks |
Bancorp is required to maintain an average reserve balance in cash or with the Federal Reserve Bank relating to customer deposits. The amount of those required reserve balances was approximately $1,720,000 and $1,105,000 at December 31, 2014 and 2013, respectively, and is within federal funds sold and interest bearing due from banks in the consolidated balance sheet. | |
Acquisition
Acquisition | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Acquisition | |||||||||||
Acquisition | (3) Acquisition | ||||||||||
On April 30, 2013, Bancorp completed the acquisition of 100% of the outstanding shares of THE BANCorp, Inc. (“Oldham”), parent company of THE BANK — Oldham County, Inc. As a result of the transaction, THE BANK — Oldham County merged into Stock Yards Bank & Trust Company. Since the acquisition date, results of operations acquired in the Oldham transaction have been included in Bancorp’s financial results. | |||||||||||
The Oldham transaction has been accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration transferred were recorded at estimated fair value on the acquisition date. Assets acquired totaled approximately $146.0 million, including $39.8 million of loans. Liabilities assumed totaled $125.1 million, including $120.4 million of deposits. Fair value adjustments resulted in net assets acquired in excess of the consideration paid. Accordingly, a non-taxable gain of $449 thousand was recognized. | |||||||||||
The following table summarizes the consideration paid and the amounts of assets acquired and liabilities assumed, adjusted for fair value at the acquisition date. | |||||||||||
(dollars in thousands) | Dollars | ||||||||||
Purchase price: | |||||||||||
Value of: | |||||||||||
Cash | $ | 8,297 | |||||||||
Equity instruments (531,288 common shares of Bancorp) | 12,198 | ||||||||||
Total purchase price | 20,495 | ||||||||||
Identifiable assets: | |||||||||||
Cash and federal funds sold | 17,260 | ||||||||||
Investment securities | 81,827 | ||||||||||
Loans | 39,755 | ||||||||||
Premises and equipment | 4,008 | ||||||||||
Core deposit intangible | 2,543 | ||||||||||
Other assets | 605 | ||||||||||
Total identifiable assets | 145,998 | ||||||||||
Identifiable liabilities: | |||||||||||
Deposits | 120,435 | ||||||||||
Securities sold under agreement to repurchase | 2,762 | ||||||||||
Other liabilities | 1,857 | ||||||||||
Total identifiable liabilities | 125,054 | ||||||||||
Net gain resulting from acquisition | $ | 449 | |||||||||
Acquisition costs (included in other non-interest expenses in Bancorp’s income statement for the year ended December 31, 2013) | $ | 1,548 | |||||||||
Fair value of the common shares issued as part of the consideration paid was determined based on the closing market price of Bancorp’s common shares on the acquisition date. | |||||||||||
Bancorp recorded a core deposit intangible of $2.5 million which is being amortized using methods that anticipate the life of the underlying deposits to which the intangible is attributable. At December 31, 2014, the unamortized core deposit intangible was $1.8 million. See Note 7 for details on the core deposit intangible. | |||||||||||
In many cases, determining the fair value of acquired assets and assumed liabilities required Bancorp to estimate cash flows expected to result from those assets and liabilities and to discount those cash flows at appropriate rates of interest. The most significant of these determinations related to the valuation of acquired loans. Below is an analysis of the fair value of acquired loans as of December 31, 2014. | |||||||||||
(in thousands) | Acquired | Acquired non- | Total | ||||||||
impaired | impaired | acquired | |||||||||
loans | loans | loans | |||||||||
Contractually required principal and interest at acquisition | $ | 3,285 | $ | 37,763 | $ | 41,048 | |||||
Contractual cash flows not expected to be collected | (372 | ) | (723 | ) | (1,095 | ) | |||||
Expected cash flows at acquisition | 2,913 | 37,040 | 39,953 | ||||||||
Interest component of expected cash flows | (174 | ) | (24 | ) | (198 | ) | |||||
Basis in acquired loans at acquisition - estimated fair value | $ | 2,739 | $ | 37,016 | $ | 39,755 | |||||
Fair values of checking, savings and money market deposit accounts acquired from Oldham were assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. Certificate of deposit accounts were valued at the present value of the certificates’ expected contractual payments discounted at market rates as of the acquisition date for similar certificates. | |||||||||||
In connection with the Oldham acquisition, Bancorp incurred expenses totaling $1.5 million related to executing the transaction and integrating and conforming acquired operations with and into Bancorp. Those expenses consisted largely of conversion of systems and/or integration of operations. | |||||||||||
Securities
Securities | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Securities | ||||||||||||||||||||
Securities | (4) Securities | |||||||||||||||||||
The amortized cost, unrealized gains and losses, and fair value of securities available-for-sale follow: | ||||||||||||||||||||
(in thousands) | Amortized | Unrealized | ||||||||||||||||||
December 31, 2014 | cost | Gains | Losses | Fair value | ||||||||||||||||
U.S. Treasury and other U.S. government obligations | $ | 70,000 | $ | — | $ | — | $ | 70,000 | ||||||||||||
Government sponsored enterprise obligations | 203,531 | 2,017 | 562 | 204,986 | ||||||||||||||||
Mortgage-backed securities - government agencies | 173,573 | 2,042 | 1,345 | 174,270 | ||||||||||||||||
Obligations of states and political subdivisions | 61,416 | 1,560 | 142 | 62,834 | ||||||||||||||||
Corporate equity securities | 756 | 210 | — | 966 | ||||||||||||||||
Total securities available-for-sale | $ | 509,276 | $ | 5,829 | $ | 2,049 | $ | 513,056 | ||||||||||||
(in thousands) | Amortized | Unrealized | ||||||||||||||||||
December 31, 2013 | cost | Gains | Losses | Fair value | ||||||||||||||||
U.S. Treasury and other U.S. government obligations | $ | 110,000 | $ | — | $ | — | $ | 110,000 | ||||||||||||
Government sponsored enterprise obligations | 138,094 | 1,623 | 1,872 | 137,845 | ||||||||||||||||
Mortgage-backed securities - government agencies | 176,524 | 1,391 | 5,222 | 172,693 | ||||||||||||||||
Obligations of states and political subdivisions | 68,448 | 1,473 | 428 | 69,493 | ||||||||||||||||
Total securities available-for-sale | $ | 493,066 | $ | 4,487 | $ | 7,522 | $ | 490,031 | ||||||||||||
There were no securities held-to-maturity as of December 31, 2014 or 2013. | ||||||||||||||||||||
Corporate equity securities, included in the available-for-sale portfolio at December 31, 2014, consist of common stock in a publicly-traded small business investment company. | ||||||||||||||||||||
In 2014, Bancorp sold securities with total fair market value of $7.7 million, generating a net loss of $9 thousand. These securities consisted of mortgage-backed securities with small remaining balances, obligations of state and political subdivisions, and agency securities. In 2013, Bancorp sold obligations of state and political subdivisions with total fair market value of $696 thousand, generating a loss of $5 thousand. These sales were made in the ordinary course of portfolio management. In 2012, there were no securities sold. Management has the intent and ability to hold all remaining investment securities available-for-sale for the foreseeable future. | ||||||||||||||||||||
A summary of the available-for-sale investment securities by maturity groupings as of December 31, 2014 is shown below. | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Securities available-for-sale | Amortized cost | Fair value | ||||||||||||||||||
Due within 1 year | $ | 113,369 | $ | 113,589 | ||||||||||||||||
Due after 1 but within 5 years | 128,738 | 130,181 | ||||||||||||||||||
Due after 5 but within 10 years | 25,044 | 25,632 | ||||||||||||||||||
Due after 10 years | 67,796 | 68,418 | ||||||||||||||||||
Corporate equity securities | 756 | 966 | ||||||||||||||||||
Mortgage-backed securities - government agencies | 173,573 | 174,270 | ||||||||||||||||||
Total securities available for sale | $ | 509,276 | $ | 513,056 | ||||||||||||||||
Actual maturities may differ from contractual maturities because some issuers have the right to call or prepay obligations. In addition to equity securities, the investment portfolio includes agency mortgage-backed securities, which are guaranteed by agencies such as the FHLMC, FNMA, and GNMA. These securities differ from traditional debt securities primarily in that they may have uncertain principal payment dates and are priced based on estimated prepayment rates on the underlying collateral. | ||||||||||||||||||||
Securities with a carrying value of approximately $263.1 million at December 31, 2014 and $243.5 million at December 31, 2013 were pledged to secure accounts of commercial depositors in cash management accounts, public deposits, and cash balances for certain investment management and trust accounts. | ||||||||||||||||||||
At year end 2014 and 2013, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. | ||||||||||||||||||||
Securities with unrealized losses at December 31, 2014 and 2013, not recognized in the statements of income are as follows: | ||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
(in thousands) | value | losses | value | losses | value | losses | ||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Government sponsored enterprise obligations | $ | 36,979 | $ | 30 | $ | 26,848 | $ | 532 | $ | 63,827 | $ | 562 | ||||||||
Mortgage-backed securities - government agencies | 4,038 | 77 | 49,325 | 1,268 | 53,363 | 1,345 | ||||||||||||||
Obligations of states and political subdivisions | 12,655 | 67 | 6,297 | 75 | 18,952 | 142 | ||||||||||||||
Total temporarily impaired securities | $ | 53,672 | $ | 174 | $ | 82,470 | $ | 1,875 | $ | 136,142 | $ | 2,049 | ||||||||
December 31, 2013 | ||||||||||||||||||||
Government sponsored enterprise obligations | $ | 76,755 | $ | 1,429 | $ | 4,353 | $ | 443 | $ | 81,108 | $ | 1,872 | ||||||||
Mortgage-backed securities - government agencies | 112,652 | 4,400 | 8,752 | 822 | 121,404 | 5,222 | ||||||||||||||
Obligations of states and political subdivisions | 22,092 | 405 | 1,211 | 23 | 23,303 | 428 | ||||||||||||||
Total temporarily impaired securities | $ | 211,499 | $ | 6,234 | $ | 14,316 | $ | 1,288 | $ | 225,815 | $ | 7,522 | ||||||||
The applicable dates for determining when securities are in an unrealized loss position are December 31, 2014 and 2013. As such, it is possible that a security had a market value higher than its amortized cost on other days during the past twelve months, but is not in the “Investments with an unrealized loss of less than 12 months” category above. | ||||||||||||||||||||
Unrealized losses on Bancorp’s investment securities portfolio have not been recognized as expense because the securities are of high credit quality, and the decline in fair values is largely due to changes in the prevailing interest rate environment since the purchase date. Fair value is expected to recover as securities reach their maturity date and/or the interest rate environment returns to conditions similar to when these securities were purchased. These investments consist of 80 and 155 separate investment positions as of December 31, 2014 and 2013, respectively. Because management does not intend to sell the investments, and it is not likely that Bancorp will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, Bancorp does not consider these securities to be other-than-temporarily impaired at December 31, 2014. | ||||||||||||||||||||
FHLB stock and other securities are investments held by Bancorp which are not readily marketable and are carried at cost. This category includes holdings of Federal Home Loan Bank of Cincinnati (FHLB) stock which are required for access to FHLB borrowing, and are classified as restricted securities. As of December 31, 2013, FHLB Stock and other securities included a $1 million Community Reinvestment Act (CRA) investment which matured in the second quarter of 2014. | ||||||||||||||||||||
Loans
Loans | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||
Loans | (5) Loans | |||||||||||||||||||||||
The composition of loans by primary loan portfolio segment follows: | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||||||||||||
Commercial and industrial | $ | 577,911 | $ | 510,739 | ||||||||||||||||||||
Construction and development, excluding undeveloped land | 95,733 | 99,719 | ||||||||||||||||||||||
Undeveloped land | 22,268 | 29,871 | ||||||||||||||||||||||
Real estate mortgage | 1,133,953 | 1,046,823 | ||||||||||||||||||||||
Consumer | 38,685 | 34,198 | ||||||||||||||||||||||
$ | 1,868,550 | $ | 1,721,350 | |||||||||||||||||||||
Loan balances include deferred loan origination fees, net of deferred loan costs. At December 31, 2014 and 2013, net deferred loan costs exceeded deferred loan fees, resulting in net balances of ($331) thousand, compared to ($139) thousand at December 31, 2013. During 2013 and 2014, deferred loan origination costs exceeded deferred fees for new loans, resulting in the net balance decrease. | ||||||||||||||||||||||||
Bancorp’s credit exposure is diversified with secured and unsecured loans to individuals and businesses. No specific industry concentration exceeds ten percent of loans. While Bancorp has a diversified loan portfolio, a customer’s ability to honor contracts is somewhat dependent upon the economic stability and/or industry in which that customer does business. Loans outstanding and related unfunded commitments are primarily concentrated within Bancorp’s current market areas, which encompass the Louisville, Indianapolis and Cincinnati metropolitan markets. | ||||||||||||||||||||||||
Bancorp occasionally enters into loan participation agreements with other banks in the ordinary course of business to diversify credit risk. For certain sold participation loans, Bancorp has retained effective control of the loans, typically by restricting the participating institutions from pledging or selling their share of the loan without permission from Bancorp. US GAAP requires the participated portion of these loans to be recorded as secured borrowings. The participated portions of these loans are included in the commercial and industrial loan totals above, and a corresponding liability is reflected in other liabilities. At December 31, 2014 and 2013, the total participated portions of loans of this nature were $8.1 million and $9.4 million respectively. | ||||||||||||||||||||||||
Loans to directors and their associates, including loans to companies for which directors are principal owners, and executive officers are presented in the following table. | ||||||||||||||||||||||||
(in thousands) | Year ended December 31, | |||||||||||||||||||||||
Loans to directors and executive officers | 2014 | 2013 | ||||||||||||||||||||||
Balance as of January 1 | $ | 8,667 | $ | 6,099 | ||||||||||||||||||||
New loans | — | 2,210 | ||||||||||||||||||||||
Repayment of term loans | 1,222 | 892 | ||||||||||||||||||||||
Changes in balances of revolving lines of credit | 4,345 | 1,250 | ||||||||||||||||||||||
Balance as of December 31 | $ | 11,790 | $ | 8,667 | ||||||||||||||||||||
None of the loans to directors and executive officers were past due or considered potential problem loans during 2014 or 2013. | ||||||||||||||||||||||||
The following tables present the balance in the recorded investment in loans and roll-forward of allowance for loan losses by portfolio segment and based on impairment evaluation method as of December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||
Type of loan | ||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||
and development | ||||||||||||||||||||||||
Commercial | excluding | |||||||||||||||||||||||
(in thousands) | and | undeveloped | Undeveloped | Real estate | ||||||||||||||||||||
December 31, 2014 | industrial | land | land | mortgage | Consumer | Total | ||||||||||||||||||
Loans | $ | 577,911 | $ | 95,733 | $ | 22,268 | $ | 1,133,953 | $ | 38,685 | $ | 1,868,550 | ||||||||||||
Loans individually evaluated for impairment | $ | 6,239 | $ | 516 | $ | 1,000 | $ | 3,720 | $ | 76 | $ | 11,551 | ||||||||||||
Loans collectively evaluated for impairment | $ | 571,600 | $ | 94,603 | $ | 21,268 | $ | 1,129,766 | $ | 38,600 | $ | 1,855,837 | ||||||||||||
Loans acquired with deteriorated credit quality | $ | 72 | $ | 614 | $ | — | $ | 467 | $ | 9 | $ | 1,162 | ||||||||||||
Construction | ||||||||||||||||||||||||
and development | ||||||||||||||||||||||||
Commercial | excluding | |||||||||||||||||||||||
and | undeveloped | Undeveloped | Real estate | |||||||||||||||||||||
industrial | land | land | mortgage | Consumer | Unallocated | Total | ||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||
At December 31, 2013 | $ | 7,644 | $ | 2,555 | $ | 5,376 | $ | 12,604 | $ | 343 | $ | — | $ | 28,522 | ||||||||||
Provision (credit) | 4,593 | (1,584 | ) | (2,244 | ) | (1,190 | ) | 25 | — | (400 | ) | |||||||||||||
Charge-offs | (661 | ) | (250 | ) | (1,753 | ) | (993 | ) | (587 | ) | — | (4,244 | ) | |||||||||||
Recoveries | 243 | — | 166 | 120 | 513 | — | 1,042 | |||||||||||||||||
At December 31, 2014 | $ | 11,819 | $ | 721 | $ | 1,545 | $ | 10,541 | $ | 294 | $ | — | $ | 24,920 | ||||||||||
Allowance for loans individually evaluated for impairment | $ | 529 | $ | 15 | $ | 500 | $ | 256 | $ | 76 | $ | — | $ | 1,376 | ||||||||||
Allowance for loans collectively evaluated for impairment | $ | 11,290 | $ | 706 | $ | 1,045 | $ | 10,285 | $ | 218 | $ | — | $ | 23,544 | ||||||||||
Allowance for loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Type of loan | ||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||
and development | ||||||||||||||||||||||||
Commercial | excluding | |||||||||||||||||||||||
(in thousands) | and | undeveloped | Undeveloped | Real estate | ||||||||||||||||||||
December 31, 2013 | industrial | land | land | mortgage | Consumer | Total | ||||||||||||||||||
Loans | $ | 510,739 | $ | 99,719 | $ | 29,871 | $ | 1,046,823 | $ | 34,198 | $ | 1,721,350 | ||||||||||||
Loans individually evaluated for impairment | $ | 7,579 | $ | 26 | $ | 7,340 | $ | 7,478 | $ | 84 | $ | 22,507 | ||||||||||||
Loans collectively evaluated for impairment | $ | 502,535 | $ | 98,428 | $ | 22,531 | $ | 1,038,824 | $ | 34,095 | $ | 1,696,413 | ||||||||||||
Loans acquired with deteriorated credit quality | $ | 625 | $ | 1,265 | $ | — | $ | 521 | $ | 19 | $ | 2,430 | ||||||||||||
Construction | ||||||||||||||||||||||||
and development | ||||||||||||||||||||||||
Commercial | excluding | |||||||||||||||||||||||
and | undeveloped | Undeveloped | Real estate | |||||||||||||||||||||
industrial | land | land | mortgage | Consumer | Unallocated | Total | ||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||
At December 31, 2012 | $ | 5,949 | $ | 1,638 | $ | 2,898 | $ | 14,288 | $ | 362 | $ | 6,746 | $ | 31,881 | ||||||||||
Provision | 1,583 | 779 | 10,358 | 490 | 86 | (6,746 | ) | 6,550 | ||||||||||||||||
Charge-offs | (457 | ) | (25 | ) | (7,961 | ) | (2,758 | ) | (763 | ) | — | (11,964 | ) | |||||||||||
Recoveries | 569 | 163 | 81 | 584 | 658 | — | 2,055 | |||||||||||||||||
At December 31, 2013 | $ | 7,644 | $ | 2,555 | $ | 5,376 | $ | 12,604 | $ | 343 | $ | — | $ | 28,522 | ||||||||||
Allowance for loans individually evaluated for impairment | $ | 762 | $ | — | $ | — | $ | 606 | $ | 84 | $ | — | $ | 1,452 | ||||||||||
Allowance for loans collectively evaluated for impairment | $ | 6,882 | $ | 2,555 | $ | 5,376 | $ | 11,998 | $ | 259 | $ | — | $ | 27,070 | ||||||||||
Allowance for loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Type of loan | ||||||||||||||||||||||||
(in thousands) | Commercial | Construction | Real estate | |||||||||||||||||||||
December 31, 2012 | and industrial | and development | mortgage | Consumer | Total | |||||||||||||||||||
Loans | $ | 426,930 | $ | 131,253 | $ | 989,631 | $ | 36,780 | $ | 1,584,594 | ||||||||||||||
Loans individually evaluated for impairment | $ | 8,667 | $ | 10,863 | $ | 9,795 | $ | 4 | $ | 29,329 | ||||||||||||||
Loans collectively evaluated for impairment | $ | 418,263 | $ | 120,390 | $ | 979,836 | $ | 36,776 | $ | 1,555,265 | ||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Commercial | Construction | Real estate | ||||||||||||||||||||||
and industrial | and development | mortgage | Consumer | Unallocated | Total | |||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||
At December 31, 2011 | $ | 7,364 | $ | 3,546 | $ | 11,182 | $ | 540 | $ | 7,113 | $ | 29,745 | ||||||||||||
Provision | 3,024 | 2,716 | 6,308 | (181 | ) | (367 | ) | 11,500 | ||||||||||||||||
Charge-offs | (4,523 | ) | (1,726 | ) | (3,451 | ) | (798 | ) | — | (10,498 | ) | |||||||||||||
Recoveries | 84 | — | 249 | 801 | — | 1,134 | ||||||||||||||||||
At December 31, 2012 | $ | 5,949 | $ | 4,536 | $ | 14,288 | $ | 362 | $ | 6,746 | $ | 31,881 | ||||||||||||
Allowance for loans individually evaluated for impairment | $ | 156 | $ | 2,898 | $ | 563 | $ | — | $ | — | $ | 3,617 | ||||||||||||
Allowance for loans collectively evaluated for impairment | $ | 5,793 | $ | 1,638 | $ | 13,725 | $ | 362 | $ | 6,746 | $ | 28,264 | ||||||||||||
Allowance for loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
The considerations by Bancorp in computing its allowance for loan losses are determined based on the various risk characteristics of each loan segment. Relevant risk characteristics are as follows: | ||||||||||||||||||||||||
· | Commercial and industrial loans: Loans in this category are made to businesses. Generally these loans are secured by assets of the business and repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer and/or business spending will have an effect on the credit quality in this loan category. | |||||||||||||||||||||||
· | Construction and development, excluding undeveloped land: Loans in this category primarily include land loans to local individuals, contractors and developers for developing the land for sale or for the purpose of making improvements thereon. Repayment is derived from sale of the lots/ units including any pre-sold units. Credit risk is affected by market conditions, time to sell at an adequate price and cost overruns. This category also includes commercial development projects Bancorp finances, which in most cases require only interest to be paid during construction, and then convert to permanent financing requiring principal amortization. Credit risk is affected by construction delays, cost overruns, market conditions and the availability of permanent financing, to the extent such permanent financing is not being provided by us. | |||||||||||||||||||||||
· | Undeveloped land: Loans in this category are secured by land initially acquired for development by the borrower, but for which no development has yet taken place. Credit risk is affected by market conditions, time to sell at an adequate price and cost overruns. Credit risk is also affected by market conditions and the availability of permanent financing, to the extent such permanent financing is not being provided by us. Prior to 2013 loans in this category were recorded within construction and development loans. | |||||||||||||||||||||||
· | Real estate mortgage: Loans in this category are made to and secured by owner-occupied residential real estate, income-producing investment properties and owner-occupied real estate used for business purposes. Repayment is dependent on the credit quality of the individual borrower. The underlying properties are generally located largely in Bancorp’s primary market area. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this loan category. The cash flows of the income producing investment properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on credit quality. In the case of owner-occupied real estate used for business purposes, a weakened economy and resultant decreased consumer and/or business spending will have an adverse effect on credit quality. | |||||||||||||||||||||||
· | Consumer: Loans in this category may be either secured or unsecured and repayment is dependent on the credit quality of the individual borrower and, if applicable, sale of the collateral securing the loan (such as automobiles). Therefore, the overall health of the economy, including unemployment rates and housing prices, will have a significant effect on the credit quality in this loan category. | |||||||||||||||||||||||
During 2013, Bancorp refined its allowance calculation to allocate the portion of the allowance that was previously deemed to be unallocated to instead be included in management’s determination of the appropriate qualitative factors. This refined allowance calculation included specific allowance allocations to loan portfolio segments for qualitative factors including, among other factors, (i) national and local economic and business conditions, (ii) the quality and experience of lending staff and management, (iii) changes in lending policies and procedures, (iv) changes in volume and severity of past due loans, classified loans and non-performing loans, (v) potential impact of any concentrations of credit, (vi) changes in the nature and terms of loans such as growth rates and utilization rates, (vii) changes in the value of underlying collateral for collateral-dependent loans, considering Bancorp’s disposition bias, and (viii) the effect of other external factors such as the legal and regulatory environment. Bancorp may also consider other qualitative factors in future periods for additional allowance allocations, including, among other factors, changes in Bancorp’s loan review process. Because Bancorp refined its allowance calculation during 2013 such that it no longer maintains unallocated allowance, Bancorp’s allocation of its allowance by loan segment at December 31, 2014 and 2013 are not comparable with prior periods. | ||||||||||||||||||||||||
Also in 2013, as a result of analyses of non-performing loan metrics, Bancorp expanded the classifications for loans to include undeveloped land, which was previously recorded within construction and development loans. | ||||||||||||||||||||||||
Bancorp has loans that were acquired in the Oldham acquisition, for which there was, at acquisition, evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is included in the balance sheet amounts of loans at December 31, 2014 and 2013. Changes in the interest component of the fair value adjustment for acquired impaired loans for the years ended December 31, 2013 and 2014 are shown in the following table: | ||||||||||||||||||||||||
(in thousands) | Accretable | Non-accretable | ||||||||||||||||||||||
discount | discount | |||||||||||||||||||||||
Balance at December 31, 2012 | $ | — | $ | — | ||||||||||||||||||||
Additions due to Oldham acquisition | 174 | 372 | ||||||||||||||||||||||
Accretion | (37 | ) | (3 | ) | ||||||||||||||||||||
Reclassifications from (to) non-accretable difference | — | — | ||||||||||||||||||||||
Disposals | — | — | ||||||||||||||||||||||
Balance at December 31, 2013 | 137 | 369 | ||||||||||||||||||||||
Accretion | (75 | ) | (103 | ) | ||||||||||||||||||||
Reclassifications from (to) non-accretable difference | — | — | ||||||||||||||||||||||
Disposals | — | — | ||||||||||||||||||||||
Balance at December 31, 2014 | $ | 62 | $ | 266 | ||||||||||||||||||||
Accretion in the non-accretable discount column represents accretion recorded upon payoff of loans. | ||||||||||||||||||||||||
The following tables present loans individually evaluated for impairment as of December 31, 2014 and 2013. | ||||||||||||||||||||||||
Unpaid | Average | |||||||||||||||||||||||
(in thousands) | Recorded | principal | Related | recorded | ||||||||||||||||||||
December 31, 2014 | investment | balance | allowance | investment | ||||||||||||||||||||
Loans with no related allowance recorded | ||||||||||||||||||||||||
Commercial and industrial | $ | 396 | $ | 408 | $ | — | $ | 896 | ||||||||||||||||
Construction and development, excluding undeveloped land | 26 | 151 | — | 26 | ||||||||||||||||||||
Undeveloped land | 500 | 3,188 | — | 5,708 | ||||||||||||||||||||
Real estate mortgage | 2,803 | 3,240 | — | 2,999 | ||||||||||||||||||||
Consumer | — | — | — | — | ||||||||||||||||||||
Subtotal | 3,725 | 6,987 | — | 9,629 | ||||||||||||||||||||
Loans with an allowance recorded | ||||||||||||||||||||||||
Commercial and industrial | $ | 5,843 | $ | 6,318 | $ | 529 | $ | 6,697 | ||||||||||||||||
Construction and development, excluding undeveloped land | 490 | 490 | 15 | 196 | ||||||||||||||||||||
Undeveloped land | 500 | 1,596 | 500 | 100 | ||||||||||||||||||||
Real estate mortgage | 917 | 917 | 256 | 1,995 | ||||||||||||||||||||
Consumer | 76 | 76 | 76 | 80 | ||||||||||||||||||||
Subtotal | 7,826 | 9,397 | 1,376 | 9,068 | ||||||||||||||||||||
Total | ||||||||||||||||||||||||
Commercial and industrial | $ | 6,239 | $ | 6,726 | $ | 529 | $ | 7,593 | ||||||||||||||||
Construction and development, excluding undeveloped land | 516 | 641 | 15 | 222 | ||||||||||||||||||||
Undeveloped land | 1,000 | 4,784 | 500 | 5,808 | ||||||||||||||||||||
Real estate mortgage | 3,720 | 4,157 | 256 | 4,994 | ||||||||||||||||||||
Consumer | 76 | 76 | 76 | 80 | ||||||||||||||||||||
Total | $ | 11,551 | $ | 16,384 | $ | 1,376 | $ | 18,697 | ||||||||||||||||
Unpaid | Average | |||||||||||||||||||||||
(in thousands) | Recorded | principal | Related | recorded | ||||||||||||||||||||
December 31, 2013 | investment | balance | allowance | investment | ||||||||||||||||||||
Loans with no related allowance recorded | ||||||||||||||||||||||||
Commercial and industrial | $ | 830 | $ | 974 | $ | — | $ | 4,499 | ||||||||||||||||
Construction and development, excluding undeveloped land | 26 | 151 | — | 54 | ||||||||||||||||||||
Undeveloped land | 7,340 | 9,932 | — | 3,272 | ||||||||||||||||||||
Real estate mortgage | 3,731 | 5,069 | — | 5,559 | ||||||||||||||||||||
Consumer | — | — | — | 3 | ||||||||||||||||||||
Subtotal | 11,927 | 16,126 | — | 13,387 | ||||||||||||||||||||
Loans with an allowance recorded | ||||||||||||||||||||||||
Commercial and industrial | $ | 6,749 | $ | 6,749 | $ | 762 | $ | 3,806 | ||||||||||||||||
Construction and development, excluding undeveloped land | — | — | — | 259 | ||||||||||||||||||||
Undeveloped land | — | — | — | 7,152 | ||||||||||||||||||||
Real estate mortgage | 3,747 | 4,065 | 606 | 3,705 | ||||||||||||||||||||
Consumer | 84 | 84 | 84 | 34 | ||||||||||||||||||||
Subtotal | 10,580 | 10,898 | 1,452 | 14,956 | ||||||||||||||||||||
Total | ||||||||||||||||||||||||
Commercial and industrial | $ | 7,579 | $ | 7,723 | $ | 762 | $ | 8,305 | ||||||||||||||||
Construction and development, excluding undeveloped land | 26 | 151 | — | 313 | ||||||||||||||||||||
Undeveloped land | 7,340 | 9,932 | — | 10,424 | ||||||||||||||||||||
Real estate mortgage | 7,478 | 9,134 | 606 | 9,264 | ||||||||||||||||||||
Consumer | 84 | 84 | 84 | 37 | ||||||||||||||||||||
Total | $ | 22,507 | $ | 27,024 | $ | 1,452 | $ | 28,343 | ||||||||||||||||
Differences between recorded investment amounts and unpaid principal balance amounts less related allowance are due to partial charge-offs which have occurred over the life of loans and fair value adjustments recorded for loans acquired. | ||||||||||||||||||||||||
Interest income on impaired or non-accrual loans (cash basis) was $284 thousand, $185 thousand and $157 thousand in 2014, 2013, and 2012, respectively. Interest income that would have been recorded if non-accrual loans were on a current basis in accordance with their original terms was $376 thousand, $1.2 million and $1.2 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
Impaired loans include non-accrual loans and loans accounted for as troubled debt restructurings (TDR), which continue to accrue interest. Non-performing loans include the balance of impaired loans plus any loans over 90 days past due and still accruing interest. Loans past due more than 90 days or more and still accruing interest amounted to $329 thousand and $437 thousand at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
The following table presents the recorded investment in non-accrual loans as of December 31, 2014 and 2013. | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||||||||||||
Commercial and industrial | $ | 381 | $ | 846 | ||||||||||||||||||||
Construction and development, excluding undeveloped land | 516 | 26 | ||||||||||||||||||||||
Undeveloped land | 1,000 | 7,340 | ||||||||||||||||||||||
Real estate mortgage | 3,302 | 7,046 | ||||||||||||||||||||||
Consumer | — | — | ||||||||||||||||||||||
Total | $ | 5,199 | $ | 15,258 | ||||||||||||||||||||
On December 31, 2014 and 2013, Bancorp had $6.4 million and $7.2 million of accruing loans classified as TDR, respectively. | ||||||||||||||||||||||||
Bancorp did not modify and classify any additional loans as TDR during the year ended December 31, 2014. The following table presents the recorded investment in loans modified and classified as TDR during the year ended December 31, 2013. | ||||||||||||||||||||||||
(dollars in thousands) | Number of | Recorded | ||||||||||||||||||||||
December 31, 2013 | contracts | investment | ||||||||||||||||||||||
Commercial & industrial | 1 | $ | 796 | |||||||||||||||||||||
Real estate mortgage | 1 | 85 | ||||||||||||||||||||||
Total | 2 | $ | 881 | |||||||||||||||||||||
Bancorp did not have any loans accounted for as TDR that were restructured and experienced a payment default within the previous year as of December 31, 2014. The following table presents the recorded investment in loans accounted for as TDR that were restructured and experienced a payment default during the year ending December 31, 2013. | ||||||||||||||||||||||||
(dollars in thousands) | Number of | Recorded | ||||||||||||||||||||||
December 31, 2013 | Contracts | investment | ||||||||||||||||||||||
Commercial & industrial | 1 | $ | 790 | |||||||||||||||||||||
Real estate mortgage | 2 | 2,425 | ||||||||||||||||||||||
Total | 3 | $ | 3,215 | |||||||||||||||||||||
Loans accounted for as TDR include modifications from original terms such as those due to bankruptcy proceedings, certain modifications of amortization periods or extended suspension of principal payments due to customer financial difficulties. Loans accounted for as TDR, which have not defaulted, are individually evaluated for impairment and, at December 31, 2014, had a total allowance allocation of $703 thousand, compared to $942 thousand at December 31, 2013. | ||||||||||||||||||||||||
At December 31, 2014 and 2013, Bancorp had outstanding commitments to lend additional funds totaling $458 thousand and $262 thousand, respectively, to borrowers whose loans have been modified as TDR. | ||||||||||||||||||||||||
The following table presents the aging of the recorded investment in loans as of December 31, 2014 and 2013. | ||||||||||||||||||||||||
Greater | ||||||||||||||||||||||||
than | Recorded | |||||||||||||||||||||||
90 days | investment | |||||||||||||||||||||||
past due | > 90 days | |||||||||||||||||||||||
30-59 days | 60-89 days | (includes | Total | Total | and | |||||||||||||||||||
(in thousands) | past due | past due | non-accrual) | past due | Current | loans | accruing | |||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Commercial and industrial | $ | 3,860 | $ | 3 | $ | 382 | $ | 4,245 | $ | 573,666 | $ | 577,911 | $ | 1 | ||||||||||
Construction and development, excluding undeveloped land | 69 | — | 757 | 826 | 94,907 | 95,733 | 241 | |||||||||||||||||
Undeveloped land | — | — | 1,000 | 1,000 | 21,268 | 22,268 | — | |||||||||||||||||
Real estate mortgage | 4,536 | 1,532 | 3,389 | 9,457 | 1,124,496 | 1,133,953 | 87 | |||||||||||||||||
Consumer | 43 | 18 | — | 61 | 38,624 | 38,685 | — | |||||||||||||||||
Total | $ | 8,508 | $ | 1,553 | $ | 5,528 | $ | 15,589 | $ | 1,852,961 | $ | 1,868,550 | $ | 329 | ||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Commercial and industrial | $ | 808 | $ | 201 | $ | 1,268 | $ | 2,277 | $ | 508,462 | $ | 510,739 | $ | 421 | ||||||||||
Construction and development, excluding undeveloped land | 429 | — | 26 | 455 | 99,264 | 99,719 | — | |||||||||||||||||
Undeveloped land | — | — | 7,340 | 7,340 | 22,531 | 29,871 | — | |||||||||||||||||
Real estate mortgage | 4,529 | 1,180 | 7,062 | 12,771 | 1,034,052 | 1,046,823 | 16 | |||||||||||||||||
Consumer | 110 | — | — | 110 | 34,088 | 34,198 | — | |||||||||||||||||
Total | $ | 5,876 | $ | 1,381 | $ | 15,696 | $ | 22,953 | $ | 1,698,397 | $ | 1,721,350 | $ | 437 | ||||||||||
Consistent with regulatory guidance, Bancorp categorizes loans into credit risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends. Pass-rated loans included all risk-rated loans other than those classified as special mention, substandard, and doubtful, which are defined below: | ||||||||||||||||||||||||
· | Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. These potential weaknesses may result in deterioration of repayment prospects for the loan or of Bancorp’s credit position at some future date. | |||||||||||||||||||||||
· | Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize repayment of the debt. They are characterized by the distinct possibility that Bancorp will sustain some loss if the deficiencies are not corrected. | |||||||||||||||||||||||
· | Substandard non-performing: Loans classified as substandard non-performing have all the characteristics of substandard loans and have been placed on non-accrual status or have been accounted for as troubled debt restructurings. | |||||||||||||||||||||||
· | 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 repayment in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. | |||||||||||||||||||||||
As of December 31, 2014 and 2013, the internally assigned risk grades of loans by category were as follows: | ||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||
and | ||||||||||||||||||||||||
development, | ||||||||||||||||||||||||
excluding | ||||||||||||||||||||||||
Commercial | undeveloped | Undeveloped | Real estate | |||||||||||||||||||||
(in thousands) | and industrial | land | land | mortgage | Consumer | Total | ||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Grade | ||||||||||||||||||||||||
Pass | $ | 553,739 | $ | 88,389 | $ | 20,578 | $ | 1,114,116 | $ | 38,533 | $ | 1,815,355 | ||||||||||||
Special mention | 6,215 | 4,867 | 530 | 13,112 | 76 | 24,800 | ||||||||||||||||||
Substandard | 11,717 | 1,720 | 160 | 2,918 | — | 16,515 | ||||||||||||||||||
Substandard non-performing | 6,240 | 757 | 1,000 | 3,807 | 76 | 11,880 | ||||||||||||||||||
Doubtful | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 577,911 | $ | 95,733 | $ | 22,268 | $ | 1,133,953 | $ | 38,685 | $ | 1,868,550 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Grade | ||||||||||||||||||||||||
Pass | $ | 486,140 | $ | 87,896 | $ | 22,366 | $ | 1,014,216 | $ | 34,028 | $ | 1,644,646 | ||||||||||||
Special mention | 12,983 | 7,091 | — | 17,916 | 86 | 38,076 | ||||||||||||||||||
Substandard | 3,616 | 4,706 | 165 | 7,197 | — | 15,684 | ||||||||||||||||||
Substandard non-performing | 8,000 | 26 | 7,340 | 7,494 | 84 | 22,944 | ||||||||||||||||||
Doubtful | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 510,739 | $ | 99,719 | $ | 29,871 | $ | 1,046,823 | $ | 34,198 | $ | 1,721,350 | ||||||||||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Premises and Equipment | ||||||||
Premises and Equipment | (6) Premises and Equipment | |||||||
A summary of premises and equipment follows: | ||||||||
December 31, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Land | $ | 6,733 | $ | 6,803 | ||||
Buildings and improvements | 43,818 | 43,259 | ||||||
Furniture and equipment | 18,426 | 17,149 | ||||||
Construction in progress | 305 | 231 | ||||||
69,282 | 67,442 | |||||||
Accumulated depreciation and amortization | (30,194 | ) | (27,629 | ) | ||||
Total premises and equipment | $ | 39,088 | $ | 39,813 | ||||
Depreciation expense related to premises and equipment was $2.9 million in 2014, $3.0 million in 2013 and $3.1 million in 2012. | ||||||||
Other_Assets
Other Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Assets. | ||||||||
Other Assets | (7) Other Assets | |||||||
A summary of major components of other assets as of December 31, 2014 and 2013 follows: | ||||||||
(in thousands) | 2014 | 2013 | ||||||
Net deferred tax asset | $ | 12,377 | $ | 14,554 | ||||
Cash surrender value of life insurance other than BOLI | 12,019 | 10,949 | ||||||
Other real estate owned and other foreclosed property | 5,977 | 5,592 | ||||||
Investments in tax credit related ventures | 5,090 | 5,506 | ||||||
Other short term receivables | 2,149 | 1,624 | ||||||
Core deposit intangible | 1,820 | 2,151 | ||||||
Mortgage servicing rights (MSRs) | 1,131 | 1,832 | ||||||
Goodwill | 682 | 682 | ||||||
Investment in bank in expansion market | 520 | 520 | ||||||
Other | 5,907 | 8,414 | ||||||
Total | $ | 47,672 | $ | 51,824 | ||||
Bancorp maintains life insurance policies other than BOLI in conjunction with its non-qualified defined benefit retirement and non-qualified compensation plans. | ||||||||
Mortgage servicing rights (MSRs) are initially recognized at fair value when mortgage loans are sold and amortized in proportion to and over the period of estimated net servicing income, considering appropriate prepayment assumptions. MSRs are evaluated quarterly for impairment by comparing carrying value to fair value. Estimated fair values of MSRs at December 31, 2014 and 2013 were $3.4 million and $4.0 million, respectively. Total outstanding principal balances of loans serviced for others were $421.1 million and $435.3 million at December 31, 2014, and 2013 respectively. | ||||||||
Changes in the net carrying amount of MSRs for the years ended December 31, 2014 and 2013 are shown in the following table. | ||||||||
(in thousands) | 2014 | 2013 | ||||||
Balance at January 1 | $ | 1,832 | $ | 2,088 | ||||
Originations | 258 | 776 | ||||||
Amortization | (959 | ) | (1,032 | ) | ||||
Balance at December 31 | $ | 1,131 | $ | 1,832 | ||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Taxes | |||||||||||
Income Taxes | (8) Income Taxes | ||||||||||
Components of income tax expense (benefit) from operations for the years ended December 31, 2014, 2013, and 2012 were as follows: | |||||||||||
Year ended December 31, | |||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||
Current tax expense | |||||||||||
Federal | $ | 14,958 | $ | 10,322 | $ | 11,895 | |||||
State | 641 | 336 | 672 | ||||||||
Total current tax expense | 15,599 | 10,658 | 12,567 | ||||||||
Deferred tax (benefit) expense | |||||||||||
Federal | (385 | ) | 450 | (2,800 | ) | ||||||
State | 26 | 120 | (133 | ) | |||||||
Total deferred tax benefit | (359 | ) | 570 | (2,933 | ) | ||||||
Change in valuation allowance | 41 | — | — | ||||||||
Total income tax expense | $ | 15,281 | $ | 11,228 | $ | 9,634 | |||||
Components of income tax (benefit) expense recorded directly to stockholders’ equity for the years ended December 31, 2014, 2013, and 2012 were as follows: | |||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||
Unrealized gain (loss) on securities available for sale | $ | 2,383 | $ | (4,234 | ) | $ | (24 | ) | |||
Reclassification adjustment for securities losses realized in income | 3 | 2 | — | ||||||||
Unrealized gain on derivatives | — | 8 | — | ||||||||
Compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes | (378 | ) | (265 | ) | (83 | ) | |||||
Minimum pension liability adjustment | (69 | ) | 111 | 2 | |||||||
Total income tax (benefit) expense recorded directly to stockholders’ equity | $ | 1,939 | $ | (4,378 | ) | $ | (105 | ) | |||
An analysis of the difference between the statutory and effective tax rates from operations for the years ended December 31, 2014, 2013, and 2012 were as follows: | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. federal income tax rate | 35 | % | 35 | % | 35 | % | |||||
Tax exempt interest income | (1.5 | ) | (2.1 | ) | (3.8 | ) | |||||
Tax credits | (3.1 | ) | (2.5 | ) | (2.2 | ) | |||||
Cash surrender value of life insurance | (1.4 | ) | (2.0 | ) | (1.9 | ) | |||||
State income taxes | 0.9 | 0.8 | 1 | ||||||||
Nontaxable gain on acquisition | — | (0.4 | ) | — | |||||||
Nondeductible acquisition costs | — | 0.2 | — | ||||||||
Other, net | 0.6 | 0.2 | (0.9 | ) | |||||||
30.5 | % | 29.2 | % | 27.2 | % | ||||||
The increase in the effective tax rate from 2013 to 2014 arose from proportionally lower nontaxable income from the increase in cash value of life insurance and municipal securities. This was partially offset by the effect of reclassifying amortization of tax credit investments to other non-interest expense in 2014. The increase in the effective tax rate from 2012 to 2013 is primarily the result of higher tax-exempt interest in 2012 due to a $740 thousand prepayment penalty received on a tax-exempt loan. | |||||||||||
The reduction of tax expense attributable to tax credits arises from inclusion of tax credits and, in some cases, the amortization of related investments in income tax expense. Prior to 2014, all tax credit investment amortization was included in income tax expense using the effective yield method. In 2014, Bancorp began using the flow through method of amortization for investments not qualifying as affordable housing projects. | |||||||||||
The effects of temporary differences that gave rise to significant portions of deferred tax assets and deferred tax liabilities for the years ended December 31, 2014 and 2013 were as follows: | |||||||||||
December 31, | |||||||||||
(In thousands) | 2014 | 2013 | |||||||||
Allowance for loan loss | $ | 8,929 | $ | 10,236 | |||||||
Deferred compensation | 5,442 | 4,778 | |||||||||
Accrued expenses | 1,854 | 1,604 | |||||||||
Investments in partnerships | 1,031 | 826 | |||||||||
Write-downs and costs associated with other real estate owned | 491 | 749 | |||||||||
Loans | 678 | 564 | |||||||||
Other-than-temporary impairment | 310 | 311 | |||||||||
Other assets | 219 | 299 | |||||||||
Total deferred tax assets | 18,954 | 19,367 | |||||||||
Securities | 2,594 | 354 | |||||||||
Property and equipment | 1,250 | 1,377 | |||||||||
Loan costs | 756 | 702 | |||||||||
Prepayment penalty on modification of FHLB advances | 76 | 156 | |||||||||
Mortgage servicing rights | 356 | 608 | |||||||||
Leases | 422 | 428 | |||||||||
Core deposit intangible | 652 | 772 | |||||||||
Other liabilities | 430 | 416 | |||||||||
Total deferred tax liabilities | 6,536 | 4,813 | |||||||||
Valuation allowance | 41 | — | |||||||||
Net deferred tax asset | $ | 12,377 | $ | 14,554 | |||||||
As a result of the acquisition of Oldham, Bancorp has a federal net operating loss carryforward of $62 thousand as of January 1, 2014. Bancorp expects to fully utilize this loss upon filing the 2014 federal tax return. | |||||||||||
A valuation allowance is recognized for a deferred tax asset if, based on the weight of available evidence, it is more-likely-than-not that some portion of the entire deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projection for future taxable income over the periods which the temporary differences resulting in the remaining deferred tax assets are deductible, management believes it is more-likely-than-not that Bancorp will realize the benefits of these deductible differences, net of the valuation allowance, at December 31, 2014. | |||||||||||
Realization of deferred tax assets associated with the investment in tax credit partnerships is dependent upon generating sufficient taxable capital gain income prior to their expiration. A valuation allowance to reflect management’s estimate of the temporary deductible differences that may expire prior to their utilization has been recorded as of December 31, 2014. No valuation allowance for deferred tax assets was recorded as of December 31, 2013 because Bancorp has sufficient prior taxable income, future projected taxable income, and tax planning strategies to allow for utilization of the deductible temporary differences, net operating losses and capital losses within the carryback and carryforward periods. | |||||||||||
US GAAP provides guidance on the financial statement recognition and measurement of tax positions taken, or expected to be taken, in tax returns. As of December 31, 2014 and 2013, the gross amount of unrecognized tax benefits was $40 thousand. If recognized, all of the tax benefits would increase net income, resulting in a decrease in the effective tax rate. The amount of unrecognized tax benefits may increase or decrease in future periods for various reasons including adding amounts for current tax year positions, expiration of open income tax returns due to statutes of limitation, changes in management’s judgment about the level of uncertainty, status of examination, litigation and legislative activity and the addition or elimination of uncertain tax positions. | |||||||||||
During the second quarter of 2014, the IRS completed the examination of Bancorp’s 2011 corporate income tax return. There were no significant adjustments to taxable income. Federal income tax returns are subject to examination for the years after 2011 and state income tax returns are subject to examination for the years after 2010. | |||||||||||
Bancorp’s policy is to report interest and penalties, if any, related to unrecognized tax benefits in income tax expense. As of December 31, 2014 and 2013, the amount accrued for the potential payment of interest and penalties was $2 thousand. | |||||||||||
A reconciliation of the amount of unrecognized tax benefits for the years ended December 31, 2014 and 2013 follows: | |||||||||||
(In thousands) | 2014 | 2013 | |||||||||
Balance as of January 1 | $ | 40 | $ | 70 | |||||||
Increases - current year tax positions | 11 | 11 | |||||||||
Lapse of statute of limitations | (11 | ) | (41 | ) | |||||||
Balance as of December 31 | $ | 40 | $ | 40 | |||||||
Deposits
Deposits | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deposits | ||||||||
Deposits | (9) Deposits | |||||||
The composition of interest bearing deposits follows: | ||||||||
December 31, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Interest bearing demand | $ | 502,801 | $ | 462,291 | ||||
Savings | 111,624 | 101,551 | ||||||
Money market | 673,925 | 643,787 | ||||||
Time deposits greater than $250,000 | 41,137 | 40,604 | ||||||
Other time deposits | 270,193 | 309,354 | ||||||
Total interest bearing deposits | $ | 1,599,680 | $ | 1,557,587 | ||||
Interest expense related to certificates of deposit and other time deposits in denominations of $250 thousand or more was $437 thousand, $657 thousand, and $945 thousand, respectively, for the years ended December 31, 2014, 2013 and 2012. | ||||||||
At December 31, 2014, the scheduled maturities of time deposits were as follows: | ||||||||
(In thousands) | ||||||||
2014 | $ | 211,341 | ||||||
2015 | 67,473 | |||||||
2016 | 17,805 | |||||||
2017 | 7,811 | |||||||
2018 and thereafter | 6,900 | |||||||
$ | 311,330 | |||||||
Deposits of directors and their associates, including deposits of companies for which directors are principal owners, and executive officers were $19.8 million and $19.1 million at December 31, 2014 and 2013, respectively. | ||||||||
At December 31, 2014 and 2013, Bancorp had $654 thousand and $986 thousand, respectively, of deposits accounts in overdraft status and thus have been reclassified to loans on the accompanying consolidated balance sheets. | ||||||||
Securities_Sold_Under_Agreemen
Securities Sold Under Agreements to Repurchase and Other Short-Term Borrowings | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Securities Sold under Agreements to Repurchase and Other Short-Term Borrowings | ||||||||
Securities Sold Under Agreements to Repurchase and Other Short-Term Borrowings | (10) Securities Sold Under Agreements to Repurchase and Other Short-Term Borrowings | |||||||
Securities sold under agreements to repurchase are a funding source of Bancorp and are primarily used by commercial customers in conjunction with collateralized corporate cash management accounts. Such repurchase agreements are considered financing agreements and generally mature within one business day from the transaction date. Information concerning securities sold under agreements to repurchase is summarized as follows: | ||||||||
December 31, | ||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Average balance during the year | $ | 61,748 | $ | 60,737 | ||||
Average interest rate during the year | 0.23 | % | 0.24 | % | ||||
Maximum month-end balance during the year | $ | 69,559 | $ | 68,383 | ||||
Advances_from_the_Federal_Home
Advances from the Federal Home Loan Bank | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Federal Home Loan Bank Advances | ||||||||||||
Federal Home Loan Bank Advances | (11) Advances from the Federal Home Loan Bank | |||||||||||
Bancorp had outstanding borrowings of $36.8 million at December 31, 2014, via ten separate fixed-rate advances. For two advances totaling $30 million, both of which are non-callable, interest payments are due monthly, with principal due at maturity. For the remaining advances totaling $6.8 million, principal and interest payments are due monthly based on an amortization schedule. | ||||||||||||
The following is a summary of the contractual maturities and average effective rates of outstanding advances: | ||||||||||||
(In thousands) | December 31, 2014 | December 31, 2013 | ||||||||||
Year | Advance | Fixed Rate | Advance | Fixed Rate | ||||||||
2014 | $ | — | — | $ | 10,000 | 0.21 | % | |||||
2015 | 30,000 | 2.30 | % | 20,000 | 3.34 | % | ||||||
2020 | 1,885 | 2.23 | % | 1,931 | 2.23 | % | ||||||
2021 | 497 | 2.12 | % | 564 | 2.12 | % | ||||||
2024 | 3,064 | 2.36 | % | 408 | 2.40 | % | ||||||
2028 | 1,386 | 1.47 | % | 1,426 | 1.46 | % | ||||||
Total | $ | 36,832 | 2.27 | % | $ | 34,329 | 2.26 | % | ||||
Advances from the FHLB are collateralized by certain commercial and residential real estate mortgage loans under a blanket mortgage collateral agreement and FHLB stock. Bancorp views the borrowings as an effective alternative to higher cost time deposits to fund loan growth. At December 31, 2014, the amount of available credit from the FHLB totaled $404.8 million. | ||||||||||||
Subordinated_Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2014 | |
Subordinated Debentures | |
Subordinated Debentures | (12) Subordinated Debentures |
In 2008, Bancorp formed S.Y. Bancorp Capital Trust II (“the Trust”), a Delaware statutory trust and 100%-owned finance subsidiary. S.Y. Bancorp Capital Trust II issued $30.0 million of 10% fixed rate cumulative trust preferred securities and invested the proceeds, along with $900,000 received from the purchase of its common equity securities, in $30.9 million of a fixed rate subordinated debenture of Bancorp. The principal asset of S.Y. Bancorp Capital Trust II was a $30.9 million subordinated debenture of Bancorp. The interest rate on both the trust preferred securities and the subordinated debentures was fixed at 10.00%. The trust preferred securities, the assets of the Trust, and the common securities issued by the Trust were redeemable in whole or in part on or after December 31, 2013, or at any time in whole, but not in part, from the date of issuance upon the occurrence of certain events. | |
On December 31, 2013, Bancorp redeemed all of these securities at par value. Remaining unamortized issuance costs of $1.3 million were recognized as non-interest expense in the fourth quarter of 2013. The Trust has subsequently been dissolved. | |
Preferred_Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2014 | |
Preferred Stock | |
Preferred Stock | (13) Preferred Stock |
Bancorp has a class of preferred stock (no par value; 1,000,000 shares authorized); the relative rights, preferences and other terms of the class or any series within the class will be determined by the Board of Directors prior to any issuance. None of this stock has been issued to date. | |
Net_Income_per_Share_and_Commo
Net Income per Share and Common Stock Dividends | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Net Income Per Share | |||||||||||
Net Income Per Share | (14) Net Income per Share and Common Stock Dividends | ||||||||||
The following table reflects the numerators (net income) and denominators (average shares outstanding) for the basic and diluted net income per share computations: | |||||||||||
(In thousands, except per share data) | 2014 | 2013 | 2012 | ||||||||
Net income, basic and diluted | $ | 34,822 | $ | 27,170 | $ | 25,801 | |||||
Average shares outstanding, basic | 14,559 | 14,223 | 13,875 | ||||||||
Effect of dilutive securities | 203 | 130 | 57 | ||||||||
Average shares outstanding including dilutive securities | 14,762 | 14,353 | 13,932 | ||||||||
Net income per share, basic | $ | 2.39 | $ | 1.91 | $ | 1.86 | |||||
Net income per share, diluted | $ | 2.36 | $ | 1.89 | $ | 1.85 | |||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Employee Benefit Plans | |||||||||||
Employee Benefit Plans | (15) Employee Benefit Plans | ||||||||||
Bancorp has a combined employee stock ownership and profit sharing plan (“KSOP”). The plan is a defined contribution plan and is available to all employees meeting certain eligibility requirements. In general, for employees who work more than 1,000 hours per year, Bancorp matches employee contributions up to 6% of the employee’s salary, and contributes an additional amount of Bancorp stock equal to 2% of the employee’s salary. Employer matching expenses related to contributions to the plan for 2014, 2013, and 2012 were $1.7 million, $1.7 million, and $1.5 million, respectively, and are recorded within salaries and employee benefits. Employee and employer contributions are made in accordance with the terms of the plan. As of December 31, 2014 and 2013, the KSOP held 489,005 and 497,958, respectively, shares of Bancorp stock. | |||||||||||
In addition Bancorp has non-qualified plans into which directors and certain senior officers may defer director fees or salary/incentives. Bancorp matched certain executives’ deferrals into the senior officers’ plan amounting to approximately $228 thousand, $205 thousand, and $146 thousand in 2014, 2013 and 2012 respectively. At December 31, 2014 and 2013, the amounts included in other liabilities in the consolidated financial statements for this plan were $4.7 million and $4.0 million, were comprised primarily of participants’ contributions, and represented the fair value of mutual fund investments directed by participants. | |||||||||||
Bancorp sponsors an unfunded non-qualified defined benefit retirement plan for three key officers (two current and one retired), and has no plans to increase the number of or the benefits to participants. Benefits vest based on 25 years of service. The former officer and one current officer are fully vested, and one current officer will be fully vested in 2017. Bancorp uses a December 31 measurement date for this plan. At December 31, 2014 and 2013, the accumulated benefit obligation for the plan included in other liabilities in the consolidated financial statements was $2.2 million and $1.9 million, respectively. Discount rates of 3.85% and 4.72% were used in 2014 and 2013, respectively, in determining the actuarial present value of the projected benefit obligation. The actuarially determined pension costs are expensed and accrued over the service period, and benefits are paid from Bancorp’s assets. Bancorp maintains life insurance policies, for which it is the ultimate beneficiary, on certain current and former executives. The income from these policies helps offset the cost of benefits. The liability for Bancorp’s plan met the benefit obligation as of December 31, 2014 and 2013. | |||||||||||
Information about the components of the net periodic benefit cost of the defined benefit plan, recorded in salaries and employee benefits, is as follows: | |||||||||||
Year ended December 31, | |||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||
Components of net periodic benefit cost: | |||||||||||
Service cost | $ | — | $ | — | $ | — | |||||
Interest cost | 90 | 83 | 86 | ||||||||
Expected return on plan assets | — | — | — | ||||||||
Amortization of prior service cost | — | — | — | ||||||||
Amortization of net losses | 36 | 60 | 56 | ||||||||
Net periodic benefit cost | $ | 126 | $ | 143 | $ | 142 | |||||
The benefits expected to be paid in each year from 2015 to 2019 and beyond are listed in the table below. | |||||||||||
(In thousands) | Benefits | ||||||||||
2015 | $ | 84 | |||||||||
2016 | 84 | ||||||||||
2017 | 84 | ||||||||||
2018 | 84 | ||||||||||
2019 | 84 | ||||||||||
Beyond 2019 | 3,362 | ||||||||||
Total future payments | $ | 3,782 | |||||||||
The expected benefits to be paid are based on the same assumptions used to measure Bancorp’s benefit obligation at December 31, 2014. There are no obligations for other post-retirement and post-employment benefits. | |||||||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||
Stock-Based Compensation | (16) Stock-Based Compensation | |||||||||||||||||
The fair value of all awards granted, net of estimated forfeitures, is recognized as compensation expense over the respective service period. | ||||||||||||||||||
Bancorp currently has one stock-based compensation plan. Initially, in the 2005 Stock Incentive Plan, there were 735,000 shares of common stock reserved for issuance of stock based awards. In 2010, shareholders approved an additional 700,000 shares of common stock for issuance under the plan. As of December 31, 2014, there were 454,566 shares available for future awards. | ||||||||||||||||||
Options and stock appreciation rights (SARs) granted generally have a vesting schedule of 20% per year. Options and SARs expire ten years after the grant date unless forfeited due to employment termination. No stock options have been granted since 2007. | ||||||||||||||||||
Restricted shares granted to officers generally vest over five years. All restricted shares have been granted at a price equal to the market value of common stock at the time of grant. Because grantees are entitled to dividend payments during the performance period, the fair value of these restricted shares is equal to the market value of the shares on the date of grant. | ||||||||||||||||||
Grants of performance stock units (“PSUs”) vest based upon service and a single three-year performance period which begins January 1 of the first year of the performance period. Because grantees are not entitled to dividend payments during the performance period, the fair value of these PSUs is estimated based upon the fair value of the underlying shares on the date of grant, adjusted for non-payment of dividends. | ||||||||||||||||||
Grants of restricted stock units (“RSUs”) to directors are time-based and vest 12 months after grant date. Because grantees are entitled to deferred dividend payments at the end of the vesting period, the fair value of the RSUs are estimated based on the fair value of the underlying shares on the date of grant. | ||||||||||||||||||
Bancorp has recognized stock-based compensation expense, within salaries and employee benefits for employees, and within other non-interest expense for directors, in the consolidated statements of income as follows: | ||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||||||
Stock-based compensation expense before income taxes | $ | 2,016 | $ | 1,940 | $ | 1,481 | ||||||||||||
Less: deferred tax benefit | (706 | ) | (679 | ) | (518 | ) | ||||||||||||
Reduction of net income | $ | 1,310 | $ | 1,261 | $ | 963 | ||||||||||||
As of December 31, 2014 Bancorp has $3.3 million of unrecognized stock-based compensation expense that will be recorded as compensation expense over the next five years as awards vest. Bancorp received cash of $2.5 million, $2.4 million and $937 thousand from the exercise of options during 2014, 2013 and 2012, respectively. | ||||||||||||||||||
The fair values of Bancorp’s stock options and SARs are estimated at the date of grant using the Black-Scholes option pricing model, a leading formula for calculating the value of stock options and SARs. This model requires the input of subjective assumptions, changes to which can materially affect the fair value estimate. The fair value of restricted shares is determined by Bancorp’s closing stock price on the date of grant. The following assumptions were used in SAR valuations at the grant date in each year: | ||||||||||||||||||
Assumptions | 2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | 2.94 | % | 2.80 | % | 2.52 | % | ||||||||||||
Expected volatility | 23.66 | % | 22.54 | % | 22.04 | % | ||||||||||||
Risk free interest rate | 2.22 | % | 1.26 | % | 1.44 | % | ||||||||||||
Expected life of SARs | 7.0 years | 6.6 years | 7.6 years | |||||||||||||||
Dividend yield and expected volatility are based on historical information for Bancorp corresponding to the expected life of options and SARs granted. Expected volatility is the volatility of the underlying shares for the expected term on a monthly basis. The risk free interest rate is the implied yield currently available on U.S. Treasury issues with a remaining term equal to the expected life of the options. The expected life of SARs is based on actual experience of past like-term SARs and options. Bancorp evaluates historical exercise and post-vesting termination behavior when determining the expected life. | ||||||||||||||||||
A summary of stock option and SARs activity and related information for the year ended December 31, 2014 follows. | ||||||||||||||||||
Weighted | ||||||||||||||||||
Weighted | Aggregate | Weighted | average | |||||||||||||||
Options | average | intrinsic | average | remaining | ||||||||||||||
and SARs | Exercise | exercise | value | fair | contractual | |||||||||||||
(in thousands) | price | price | (in thousands) | value | life (in years) | |||||||||||||
At December 31, 2013 | ||||||||||||||||||
Vested and exercisable | 579 | $ | 20.25-26.83 | $ | 23.83 | $ | 4,685 | $ | 5.43 | 3.4 | ||||||||
Unvested | 218 | 21.03-24.87 | 22.7 | 2,011 | 4.36 | 7.7 | ||||||||||||
Total outstanding | 797 | 20.25-26.83 | 23.52 | 6,696 | 5.14 | 4.6 | ||||||||||||
Activity during 2014 | ||||||||||||||||||
Granted | 62 | 29.05-29.16 | 29.05 | 267 | 5.37 | |||||||||||||
Exercised | (135 | ) | 20.25-26.83 | 23.03 | 1,083 | 5.27 | ||||||||||||
Forfeited | (6 | ) | 21.03-23.76 | 22.78 | 66 | 4.43 | ||||||||||||
At December 31, 2014 | ||||||||||||||||||
Vested and exercisable | 524 | 24.02-26.83 | 23.84 | 4,981 | 5.35 | 3.5 | ||||||||||||
Unvested | 194 | 21.03-29.16 | 24.83 | 1,650 | 4.57 | 7.7 | ||||||||||||
Total outstanding | 718 | 21.03-29.16 | 24.11 | $ | 6,631 | 5.14 | 4.6 | |||||||||||
Vested year-to-date | 80 | $ | 21.03-24.87 | $ | 22.49 | $ | 872 | $ | 4.63 | |||||||||
Intrinsic value for stock options and SARs is defined as the amount by which the current market price of the underlying stock exceeds the exercise or grant price. | ||||||||||||||||||
The aggregate intrinsic value of stock options and SARs exercised in 2014, 2013 and 2012 was $1.1 million, $1.1 million and $305 thousand, respectively. The aggregate intrinsic value of stock options and SARs exercised was calculated as the difference in the closing price of Bancorp’s common shares on the date of exercise and the exercise price, multiplied by the number of shares exercised. | ||||||||||||||||||
The weighted average Black-Scholes fair values of SARs granted in 2014, 2013 and 2012 were $5.37, $3.61 and $3.93, respectively. | ||||||||||||||||||
Options and SARs outstanding, stated in thousands, at December 31, 2014 were as follows: | ||||||||||||||||||
Expiration | Number of | Options and | Weighted average | |||||||||||||||
options and | SARs | exercise price of | ||||||||||||||||
SARs | exercisable | options and SARs | ||||||||||||||||
outstanding | outstanding | |||||||||||||||||
2016 | 117 | 117 | $ | 24.07 | ||||||||||||||
2017 | 117 | 117 | 26.81 | |||||||||||||||
2018 | 70 | 70 | 23.37 | |||||||||||||||
2019 | 72 | 72 | 22.14 | |||||||||||||||
2020 | 75 | 61 | 21.03 | |||||||||||||||
2021 | 59 | 35 | 23.78 | |||||||||||||||
2022 | 92 | 37 | 22.87 | |||||||||||||||
2023 | 54 | 15 | 22.89 | |||||||||||||||
2024 | 62 | — | 29.05 | |||||||||||||||
718 | 524 | $ | 24.11 | |||||||||||||||
For the three year period ending December 31, 2014, Bancorp granted shares of restricted common stock as outlined in the following table: | ||||||||||||||||||
Grant date | ||||||||||||||||||
weighted- | ||||||||||||||||||
Number | average cost | |||||||||||||||||
Unvested at December 31, 2011 | 95,007 | $ | 22.49 | |||||||||||||||
Shares awarded | 57,156 | 22.71 | ||||||||||||||||
Restrictions lapsed and shares released to employees/directors | (30,782 | ) | 22.66 | |||||||||||||||
Shares forfeited | (7,471 | ) | 22.59 | |||||||||||||||
Unvested at December 31, 2012 | 113,910 | $ | 22.55 | |||||||||||||||
Shares awarded | 55,275 | 22.93 | ||||||||||||||||
Restrictions lapsed and shares released to employees/directors | (39,909 | ) | 22.29 | |||||||||||||||
Shares forfeited | (4,720 | ) | 23.45 | |||||||||||||||
Unvested at December 31, 2013 | 124,556 | $ | 22.77 | |||||||||||||||
Shares awarded | 39,730 | 29.12 | ||||||||||||||||
Restrictions lapsed and shares released to employees/directors | (44,724 | ) | 22.69 | |||||||||||||||
Shares forfeited | (5,469 | ) | 23.77 | |||||||||||||||
Unvested at December 31, 2014 | 114,093 | $ | 24.95 | |||||||||||||||
Bancorp awarded PSUs to executive officers of Bancorp, the single three-year performance period for which began January 1 of the award year. The following table outlines the PSU grants. | ||||||||||||||||||
Fair | ||||||||||||||||||
Vesting | value at | Expected | ||||||||||||||||
Grant | period | grant | shares to | |||||||||||||||
year | in years | date | be awarded | |||||||||||||||
2012 | 3 | $ | 20.57 | 28,079 | ||||||||||||||
2013 | 3 | 20.38 | 36,792 | |||||||||||||||
2014 | 3 | 26.42 | 25,012 | |||||||||||||||
In the first quarter of 2014, Bancorp awarded 3,920 RSUs to directors of Bancorp with a grant date fair value of $120 thousand. | ||||||||||||||||||
Bancorp has no equity compensation plans which have not been approved by security holders. The following table provides detail of the number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance under all the Bancorp’s equity compensation plans as of December 31, 2014. | ||||||||||||||||||
Plan category (shares in thousands) | Number of shares | Weighted | Shares | |||||||||||||||
to be issued upon | average | available for | ||||||||||||||||
exercise | exercise price | future | ||||||||||||||||
issuance (a) | ||||||||||||||||||
Equity compensation plans approved by security holders: | ||||||||||||||||||
Stock options | 234 | $ | 25.44 | 455 | ||||||||||||||
Stock appreciation rights (SARs) | (b) | (b) | (a) | |||||||||||||||
Restricted common stock | 114 | N/A | (a) | |||||||||||||||
Performance stock units | (c) | N/A | (a) | |||||||||||||||
Restricted stock units | 4 | N/A | (a) | |||||||||||||||
Total shares | 352 | 455 | ||||||||||||||||
(a) | Under the 2005 Stock Incentive plan, shares of stock are authorized for issuance as incentive and nonqualified stock options, SARs, restricted stock, and restricted stock units | |||||||||||||||||
(b) | At December 31, 2014, approximately 484,000 SARs were outstanding at a weighted average grant price of $23.46. The number of shares to be issued upon exercise will be determined based on the difference between the grant price and the market price at the date of exercise. | |||||||||||||||||
(c) | The number of shares to be issued is dependend upon Bancorp achieving certain predefined performance targets and ranges from zero shares to approximately 108,000 shares. | |||||||||||||||||
Dividend_Restriction
Dividend Restriction | 12 Months Ended |
Dec. 31, 2014 | |
Dividend Restriction | |
Dividend Restriction | (17) Dividend Restriction |
Bancorp’s principal source of cash revenues is dividends paid to it as the sole shareholder of the Bank. At any balance sheet date, the Bank’s regulatory dividend restriction represents the Bank’s net income of the prior two years less any dividends paid for the same two years. At December 31, 2014, the Bank may pay an amount equal to $34.3 million in dividends to Bancorp without regulatory approval subject to the ongoing capital requirements of the Bank. | |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingent Liabilities | |||||
Commitments and Contingent Liabilities | (18) Commitments and Contingent Liabilities | ||||
As of December 31, 2014, Bancorp had various commitments outstanding that arose in the normal course of business, including standby letters of credit and commitments to extend credit, which are properly not reflected in the consolidated financial statements. In management’s opinion, commitments to extend credit of $463.0 million including standby letters of credit of $11.0 million represent normal banking transactions, and no significant losses are anticipated to result from these commitments as of December 31, 2014. Commitments to extend credit were $464.2 million, including letters of credit of $15.2 million, as of December 31, 2013. Bancorp’s maximum exposure to credit loss in the event of nonperformance by the other party to these commitments is represented by the contractual amount of these instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses. Commitments to extend credit are mainly comprised of commercial lines of credit, construction and home equity credit lines. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Bancorp uses the same credit and collateral policies in making commitments and conditional guarantees as for on-balance sheet instruments. Bancorp evaluates each customer’s creditworthiness on a case by case basis. The amount of collateral obtained is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, inventory, equipment, and real estate. | |||||
Standby letters of credit and financial guarantees written are conditional commitments issued by Bancorp to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support private commercial transactions. Standby letters of credit generally have maturities of one to two years. | |||||
Bancorp leases certain facilities under non-cancelable operating leases. Future minimum lease commitments for these leases are outlined in the table below. | |||||
Year | Total amount | ||||
2015 | $ | 1,457,000 | |||
2016 | 1,464,000 | ||||
2017 | 1,419,000 | ||||
2018 | 1,002,000 | ||||
2019 | 798,000 | ||||
Thereafter | 1,644,000 | ||||
Total | $ | 7,784,000 | |||
Rent expense, net of sublease income, was $1.7 million in 2014, $1.7 million in 2013, and $1.8 million in 2012. | |||||
To provide service to commercial accounts, Bancorp aids customers with letters of credits or other financial contracts with other financial institutions. Accordingly, Bancorp has entered into agreements to guarantee performance of several customers’ contracts with other financial institutions. Bancorp will make payments under these agreements if a customer defaults on its obligations to the other financial institutions. The terms of the agreements range from 1 to 19 months. The maximum potential future payment guaranteed by Bancorp at December 31, 2014 was $4.0 million. If an event of default on all contracts had occurred at December 31, 2014, Bancorp would have been required to make payments of approximately $2.7 million. No payments have ever been required as a result of default on these contracts. These agreements are normally secured by collateral acceptable to Bancorp, which limits credit risk associated with the agreements. | |||||
Also, as of December 31, 2014, in the normal course of business, there were pending legal actions and proceedings in which claims for damages are asserted. Management, after discussion with legal counsel, believes the ultimate result of these legal actions and proceedings will not have a material adverse effect on the consolidated financial position or results of operations of Bancorp. | |||||
Assets_and_Liabilities_Measure
Assets and Liabilities Measured and Reported at Fair Value | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Assets and Liabilities Measured and Reported at Fair Value | |||||||||||||||||
Fair Value Measurements | (19) Assets and Liabilities Measured and Reported at Fair Value | ||||||||||||||||
Bancorp follows the provisions of the authoritative guidance for fair value measurements. This guidance is definitional and disclosure oriented and addresses how companies should approach measuring fair value when required by US GAAP. The guidance also prescribes various disclosures about financial statement categories and amounts which are measured at fair value, if such disclosures are not already specified elsewhere in US GAAP. | |||||||||||||||||
The authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between participants at the measurement date. The guidance also establishes a hierarchy to group assets and liabilities carried at fair value in three levels based upon the markets in which the assets and liabilities trade and the reliability of assumptions used to determine fair value. | |||||||||||||||||
These levels are: | |||||||||||||||||
Level 1Valuation is based upon quoted prices for identical instruments traded in active markets. | |||||||||||||||||
Level 2Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. | |||||||||||||||||
Level 3Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions would reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques could include pricing models, discounted cash flows and other similar techniques. | |||||||||||||||||
Authoritative guidance requires maximization of use of observable inputs and minimization of use of unobservable inputs in fair value measurements. Where there exists limited or no observable market data, Bancorp derives its own estimates by generally considering characteristics of the asset/liability, the current economic and competitive environment and other factors. For this reason, results cannot be determined with precision and may not be realized on an actual sale or immediate settlement of the asset or liability. | |||||||||||||||||
Bancorp’s investment securities available-for-sale and interest rate swaps are recorded at fair value on a recurring basis. Other accounts including mortgage loans held for sale, mortgage servicing rights, impaired loans and other real estate owned may be recorded at fair value on a non-recurring basis, generally in the application of lower of cost or market adjustments or write-downs of specific assets. | |||||||||||||||||
The portfolio of investment securities available-for-sale is comprised of U.S. Treasury and other U.S. government obligations, debt securities of U.S. government-sponsored corporations (including mortgage-backed securities), obligations of state and political subdivisions and corporate equity securities. U.S. Treasury and corporate equity securities, included in the 2014 table, are priced using quoted prices of identical securities in an active market. These measurements are classified as Level 1 in the hierarchy above. All other securities are priced using standard industry models or matrices with various assumptions such as yield curves, volatility, prepayment speeds, default rates, time value, credit rating and market prices for similar instruments. These assumptions are generally observable in the market place and can be derived from or supported by observable data. These measurements are classified as Level 2 in the hierarchy above. | |||||||||||||||||
Interest rate swaps are valued using primarily Level 2 inputs. Fair value measurements generally based on benchmark forward yield curves and other relevant observable market data. For purposes of potential valuation adjustments to derivative positions, Bancorp evaluates the credit risk of its counterparties as well as its own credit risk. To date, Bancorp has not realized any losses due to a counterparty’s inability to perform and the change in value of derivative assets and liabilities attributable to credit risk was not significant during 2014. | |||||||||||||||||
Below are carrying values of assets measured at fair value on a recurring basis. | |||||||||||||||||
Fair value at December 31, 2014 | |||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | |||||||||||||||||
Investment securities available-for-sale | |||||||||||||||||
U.S. Treasury and other U.S. government obligations | $ | 70,000 | $ | 70,000 | $ | — | $ | — | |||||||||
Government sponsored enterprise obligations | 204,986 | — | 204,986 | — | |||||||||||||
Mortgage-backed securities - government agencies | 174,270 | — | 174,270 | — | |||||||||||||
Obligations of states and political subdivisions | 62,834 | — | 62,834 | — | |||||||||||||
Corporate equity securities | 966 | 966 | — | — | |||||||||||||
Total investment securities available-for-sale | 513,056 | 70,966 | 442,090 | — | |||||||||||||
Interest rate swaps | 425 | — | 425 | — | |||||||||||||
Total assets | $ | 513,481 | $ | 70,966 | $ | 442,515 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Interest rate swaps | $ | 401 | $ | — | $ | 401 | $ | — | |||||||||
Fair value at December 31, 2013 | |||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | |||||||||||||||||
Investment securities available-for-sale | |||||||||||||||||
U.S. Treasury and other U.S. government obligations | $ | 110,000 | $ | 110,000 | $ | — | $ | — | |||||||||
Government sponsored enterprise obligations | 137,845 | — | 137,845 | — | |||||||||||||
Mortgage-backed securities - government agencies | 172,693 | — | 172,693 | — | |||||||||||||
Obligations of states and political subdivisions | 69,493 | — | 69,493 | — | |||||||||||||
Total investment securities available for sale | 490,031 | 110,000 | 380,031 | — | |||||||||||||
Interest rate swaps | 299 | — | 299 | — | |||||||||||||
Total assets | $ | 490,330 | $ | 110,000 | $ | 380,330 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Interest rate swaps | $ | 275 | $ | — | $ | 275 | $ | — | |||||||||
Bancorp did not have any financial instruments classified within Level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis at December 31, 2014 or 2013. | |||||||||||||||||
MSRs are recorded at fair value upon capitalization, are amortized to correspond with estimated servicing income, and are periodically assessed for impairment based on fair value at the reporting date. Fair value is based on a valuation model that calculates the present value of estimated net servicing income. The model incorporates assumptions that market participants would use in estimating future net servicing income. These measurements are classified as Level 3. At December 31, 2014 and 2013 there was no valuation allowance for the mortgage servicing rights, as the fair value exceeded the cost. Accordingly, the MSRs are not included in either table below for December 31, 2014 or 2013. See Note 7 for more information regarding MSRs. | |||||||||||||||||
For impaired loans in the table below, the fair value is calculated as the carrying value of only loans with a specific valuation allowance, less the specific allowance. The fair value of impaired loans were primarily measured based on the value of the collateral securing these loans. Impaired loans are classified within Level 3 of the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory, and/or accounts receivable. Bancorp determines the value of the collateral based on independent appraisals performed by qualified licensed appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Appraised values are discounted for costs to sell and may be discounted further based on management’s historical knowledge, changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts by management are subjective and are typically significant unobservable inputs for determining fair value. As of December 31, 2014, total impaired loans with a valuation allowance were $7.8 million, and the specific allowance totaled $1.4 million, resulting in a fair value of $6.4 million, compared to total impaired loans with a valuation allowance of $10.6 million, and the specific allowance allocation totaling $1.5 million, resulting in a fair value of $9.1 million at December 31, 2013. The losses represent the change in the specific allowances for the period indicated. | |||||||||||||||||
Other real estate owned (“OREO”), which is carried at the lower of cost or fair value, is periodically assessed for impairment based on fair value at the reporting date. Fair value is based on appraisals performed by external parties which use judgments and assumptions that are property-specific and sensitive to changes in the overall economic environment. The appraisals are sometimes further discounted based on management’s historical knowledge, and/or changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Many of these inputs are not observable and, accordingly, these measurements are classified as Level 3. For OREO in the table below, the fair value is the carrying value of only parcels of OREO which have a carrying value equal to appraised value. The losses represent write-downs which occurred during the period indicated. At December 31, 2014 and 2013, the carrying value of all other real estate owned was $6.0 million and $5.6 million, respectively. | |||||||||||||||||
Below are carrying values of assets measured at fair value on a non-recurring basis. | |||||||||||||||||
Fair value at December 31, 2014 | |||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | Total losses | ||||||||||||
Impaired loans | $ | 6,449 | $ | — | $ | — | $ | 6,449 | $ | (405 | ) | ||||||
Other real estate owned | 5,032 | — | — | 5,032 | (42 | ) | |||||||||||
Total | $ | 11,481 | $ | — | $ | — | $ | 11,481 | $ | (447 | ) | ||||||
Fair value at December 31, 2013 | |||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | Total losses | ||||||||||||
Impaired loans | $ | 9,128 | $ | — | $ | — | $ | 9,128 | $ | (992 | ) | ||||||
Other real estate owned | 3,774 | — | — | 3,774 | (816 | ) | |||||||||||
Total | $ | 12,902 | $ | — | $ | — | $ | 12,902 | $ | (1,808 | ) | ||||||
In the case of the securities portfolio, Bancorp monitors the valuation technique utilized by pricing agencies to ascertain when transfers between levels have occurred. The nature of the remaining assets and liabilities is such that transfers in and out of any level are expected to be rare. For the twelve months ended December 31, 2014, there were no transfers between Levels 1, 2, or 3. For Level 3 assets measured at fair value on a non-recurring basis as of December 31, 2014, the significant unobservable inputs used in the fair value measurements are presented below. | |||||||||||||||||
Significant | Weighted | ||||||||||||||||
Carrying | Valuation | unobservable | average of | ||||||||||||||
(Dollars in thousands) | amount | technique | input | input | |||||||||||||
Impaired loans collateral dependent | 1,945 | Appraisal | Appraisal discounts (%) | 7.1 | % | ||||||||||||
Impaired loans cash flow dependent | 4,504 | Discounted cash flow | Discount rate (%) | 5.3 | % | ||||||||||||
Other real estate owned | 5,032 | Appraisal | Appraisal discounts (%) | 14.4 | % | ||||||||||||
Disclosure_of_Financial_Instru
Disclosure of Financial Instruments Not Reported at Fair Value | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Financial Instruments Not Reported at Fair Value | |||||||||||||||||
Fair Value of Financial Instruments | (20) Disclosure of Financial Instruments Not Reported at Fair Value | ||||||||||||||||
US GAAP requires disclosure of the fair value of financial assets and liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis. The carrying amounts, estimated fair values, and placement in the fair value hierarchy of Bancorp’s financial instruments are as follows: | |||||||||||||||||
Carrying | |||||||||||||||||
(in thousands) | amount | Fair value | Level 1 | Level 2 | Level 3 | ||||||||||||
December 31, 2014 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and short-term investments | $ | 74,241 | $ | 74,241 | $ | 74,241 | $ | — | $ | — | |||||||
Mortgage loans held for sale | 3,747 | 3,876 | — | 3,876 | — | ||||||||||||
Federal Home Loan Bank stock and other securities | 6,347 | 6,347 | — | 6,347 | — | ||||||||||||
Loans, net | 1,843,630 | 1,863,568 | — | — | 1,863,568 | ||||||||||||
Accrued interest receivable | 5,980 | 5,980 | 5,980 | — | — | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ | 2,123,627 | $ | 2,124,904 | $ | — | $ | 2,124,904 | $ | — | |||||||
Short-term borrowings | 116,949 | 116,949 | — | 116,949 | — | ||||||||||||
FHLB Advances | 36,832 | 37,714 | — | 37,714 | — | ||||||||||||
Accrued interest payable | 131 | 131 | 131 | — | — | ||||||||||||
December 31, 2013 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and short-term investments | $ | 70,770 | $ | 70,770 | $ | 70,770 | $ | — | $ | — | |||||||
Mortgage loans held for sale | 1,757 | 1,817 | — | 1,817 | — | ||||||||||||
Federal Home Loan Bank stock and other securities | 7,347 | 7,347 | — | 7,347 | — | ||||||||||||
Loans, net | 1,692,828 | 1,703,291 | — | — | 1,703,291 | ||||||||||||
Accrued interest receivable | 5,712 | 5,712 | 5,712 | — | — | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ | 1,980,937 | $ | 1,983,029 | $ | — | $ | 1,983,029 | $ | — | |||||||
Short-term borrowings | 117,910 | 117,910 | — | 117,910 | — | ||||||||||||
FHLB Advances | 34,329 | 35,166 | — | 35,166 | — | ||||||||||||
Accrued interest payable | 128 | 128 | 128 | — | — | ||||||||||||
Management used the following methods and assumptions to estimate the fair value of each class of financial instrument for which it is practicable to estimate the value. | |||||||||||||||||
Cash, short-term investments, accrued interest receivable/payable and short-term borrowings | |||||||||||||||||
For these short-term instruments, carrying amount is a reasonable estimate of fair value. | |||||||||||||||||
Federal Home Loan Bank stock and other securities | |||||||||||||||||
For these securities without readily available market values, carrying amount is a reasonable estimate of fair value as it equals the amount due from FHLB or other issuer at upon redemption. | |||||||||||||||||
Mortgage loans held for sale | |||||||||||||||||
Mortgage loans held for sale are initially recorded at the lower of cost or market value. The portfolio is comprised of residential real estate loans and fair value is determined by market quotes for similar loans based on loan type, term, rate, size and the borrower’s credit score. | |||||||||||||||||
Loans, net | |||||||||||||||||
US GAAP prescribes the exit price concept for estimating fair value of loans. Because there is not an active market (exit price) for trading virtually all types of loans in Bancorp’s portfolio, fair value of loans is estimated by discounting future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities (e.g. entrance price). | |||||||||||||||||
Deposits | |||||||||||||||||
Fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. Fair value of fixed-rate certificates of deposits is estimated by discounting future cash flows using the rates currently offered for deposits of similar remaining maturities. | |||||||||||||||||
Federal Home Loan Bank advances | |||||||||||||||||
Fair value of FHLB advances is estimated by discounting future cash flows using estimates of current market rate for instruments with similar terms and remaining maturities. | |||||||||||||||||
Commitments to extend credit and standby letters of credit | |||||||||||||||||
Fair values of commitments to extend credit are estimated using fees currently charged to enter into similar agreements and the creditworthiness of the customers. Fair values of standby letters of credit are based on fees currently charged for similar agreements or estimated cost to terminate them or otherwise settle obligations with counterparties at the reporting date. Fair value of commitments to extend credit, letters of credit and lines of credit is not presented since management believes the fair value to be insignificant. | |||||||||||||||||
Limitations | |||||||||||||||||
Fair value estimates are made at a specific point in time based on relevant market information and information about financial instruments. Because no market exists for a significant portion of Bancorp’s financial instruments, fair value estimates are based on judgments regarding future expected losses, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Therefore, calculated fair value estimates in many instances cannot be substantiated by comparison to independent markets and, in many cases, may not be realizable in a current sale of the instrument. Changes in assumptions could significantly affect estimates. | |||||||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Derivative Financial Instruments | |||||||||||||||
Derivative Financial Instruments | (21) Derivative Financial Instruments | ||||||||||||||
Occasionally, Bancorp enters into free-standing interest rate swaps for the benefits of its commercial customers who desire to hedge their exposure to changing interest rates. Bancorp offsets its interest rate exposure on commercial customer transactions by entering into offsetting swap agreements with approved reputable independent counterparties with substantially matching terms. These undesignated derivative instruments are recognized on the consolidated balance sheet at fair value. Because of matching terms of offsetting contracts and the collateral provisions mitigating any non-performance risk, changes in fair value subsequent to initial recognition are expected to have an insignificant effect on earnings. Exchanges of cash flows related to the undesignated interest rate swap agreements for 2014 were offsetting and therefore had no net effect on Bancorp’s earnings or cash flows. | |||||||||||||||
Interest rate swap agreements derive their value from underlying interest rates. These transactions involve both credit and market risk. The notional amounts are amounts on which calculations, payments, and the value of the derivative are based. Notional amounts do not represent direct credit exposures. Direct credit exposure is limited to the net difference between the calculated amounts to be received and paid, if any. Bancorp is exposed to credit-related losses in the event of nonperformance by the counterparties to these agreements. Bancorp mitigates the credit risk of its financial contracts through credit approvals, limits and monitoring procedures, and does not expect any counterparties to fail their obligations. | |||||||||||||||
At December 31, 2014 and 2013, Bancorp had outstanding undesignated interest rate swap contracts as follows: | |||||||||||||||
Receiving | Paying | ||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||
(dollar amounts in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Notional amount | $ | 7,217 | $ | 5,159 | $ | 7,217 | $ | 5,159 | |||||||
Weighted average maturity (years) | 6.8 | 6.4 | 6.8 | 6.4 | |||||||||||
Fair value | $ | (401 | ) | $ | (275 | ) | $ | 401 | $ | 275 | |||||
In December 2013, Bancorp entered into an interest rate swap to hedge cash flows of a $10 million rolling fixed-rate three-month FHLB borrowing. For the purposes of hedging, the rolling fixed rate advances are considered to be a floating rate liability. The interest rate swap involves exchange of Bancorp’s floating rate interest payments for fixed rate swap payments on the underlying principal amount. This swap was designated, and qualified, for cash-flow hedge accounting. The term of the swap began December 6, 2013 and ends December 6, 2016. For derivative instruments that are designated and qualify as cash flow 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 periods in which the hedged forecasted transaction affects earnings. | |||||||||||||||
(dollars in thousands) | |||||||||||||||
Notional | Maturity | Receive (variable) | Pay fixed | Fair value | Fair value | ||||||||||
amount | date | index | swap rate | December 31, 2014 | December 31, 2013 | ||||||||||
$ | 10,000 | 12/6/16 | US$3 Month LIBOR | 0.715 | % | $ | 24 | $ | 24 | ||||||
Regulatory_Matters
Regulatory Matters | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Regulatory Matters | |||||||||||||||||
Regulatory Matters | (22) Regulatory Matters | ||||||||||||||||
Bancorp and the Bank are subject to various capital requirements prescribed by banking regulations and administered by state and federal banking agencies. Under these requirements, Bancorp and the Bank must meet minimum amounts and percentages of Tier I and total capital, as defined, to risk weighted assets and Tier I capital to average assets. Risk weighted assets are determined by applying certain risk weightings prescribed by the regulations to various categories of assets and off-balance sheet commitments. Capital and risk weighted assets may be further subject to qualitative judgments by regulators as to components, risk weighting and other factors. Failure to meet the capital requirements can result in certain mandatory, and possibly discretionary, corrective actions prescribed by the regulations or determined to be necessary by the regulators, which could materially affect the unaudited consolidated financial statements. Bancorp and the Bank met all capital requirements to which they were subject as of December 31, 2014. | |||||||||||||||||
As of December 2014 and 2013, the Bank’s primary regulator categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since those notifications that management believes have changed the Bank’s capital categories. | |||||||||||||||||
The following table sets forth consolidated Bancorp’s and the Bank’s risk based capital amounts and ratios as of December 31, 2014 and 2013 follows: | |||||||||||||||||
Actual | Minimum for adequately | Minimum for well | |||||||||||||||
capitalized | capitalized | ||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||
December 31, 2014 | |||||||||||||||||
Total risk-based capital (1) | |||||||||||||||||
Consolidated | $ | 280,228 | 13.86 | % | $ | 161,748 | 8.00 | % | NA | NA | |||||||
Bank | 274,345 | 13.59 | % | 161,498 | 8.00 | % | $ | 201,873 | 10.00 | % | |||||||
Tier I risk-based capital (1) | |||||||||||||||||
Consolidated | $ | 255,308 | 12.63 | % | $ | 80,858 | 4.00 | % | NA | NA | |||||||
Bank | 249,425 | 12.36 | % | 80,720 | 4.00 | % | $ | 121,080 | 6.00 | % | |||||||
Leverage (2) | |||||||||||||||||
Consolidated | $ | 255,308 | 10.26 | % | $ | 74,651 | 3.00 | % | NA | NA | |||||||
Bank | 249,425 | 10.04 | % | 74,529 | 3.00 | % | $ | 124,216 | 5.00 | % | |||||||
December 31, 2013 | |||||||||||||||||
Total risk-based capital (1) | |||||||||||||||||
Consolidated | $ | 252,171 | 13.54 | % | $ | 148,993 | 8.00 | % | NA | NA | |||||||
Bank | 239,577 | 12.90 | % | 148,575 | 8.00 | % | $ | 185,719 | 10.00 | % | |||||||
Tier I risk-based capital (1) | |||||||||||||||||
Consolidated | $ | 228,827 | 12.29 | % | $ | 74,476 | 4.00 | % | NA | NA | |||||||
Bank | 219,299 | 11.65 | % | 75,296 | 4.00 | % | $ | 112,944 | 6.00 | % | |||||||
Leverage (2) | |||||||||||||||||
Consolidated | $ | 228,827 | 9.75 | % | $ | 70,408 | 3.00 | % | NA | NA | |||||||
Bank | 219,299 | 9.24 | % | 71,201 | 3.00 | % | $ | 118,668 | 5.00 | % | |||||||
-1 | Ratio is computed in relation to risk-weighted assets. | ||||||||||||||||
-2 | Ratio is computed in relation to average assets. | ||||||||||||||||
NA — Not applicable. Regulatory framework does not define well capitalized for holding companies. | |||||||||||||||||
SY_Bancorp_Inc_parent_company_
S.Y. Bancorp, Inc. (parent company only) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
S.Y. Bancorp, Inc. (parent company only) | |||||||||||
S.Y. Bancorp, Inc. (parent company only) | (23) Stock Yards Bancorp, Inc. (parent company only) | ||||||||||
Condensed Balance Sheets | |||||||||||
December 31, | |||||||||||
(In thousands) | 2014 | 2013 | |||||||||
Assets | |||||||||||
Cash on deposit with subsidiary bank | $ | 2,926 | $ | 7,453 | |||||||
Investment in and receivable from subsidiaries | 254,011 | 216,916 | |||||||||
Other assets | 2,981 | 5,234 | |||||||||
Total assets | $ | 259,918 | $ | 229,603 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Other liabilities | $ | 23 | $ | 159 | |||||||
Total stockholders’ equity | 259,895 | 229,444 | |||||||||
Total liabilities and stockholders’ equity | $ | 259,918 | $ | 229,603 | |||||||
Condensed Statements of Income | |||||||||||
Years ended December 31, | |||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||
Income - dividends and interest from subsidiaries | $ | 3,300 | $ | 30,090 | $ | 10,090 | |||||
Income - interest income from securities | — | 27 | 80 | ||||||||
Other income | 183 | 174 | 637 | ||||||||
Expenses | 2,472 | 7,260 | 5,130 | ||||||||
Income before income taxes and equity in undistributed net income of subsidiary | 1,011 | 23,031 | 5,677 | ||||||||
Income tax benefit | (1,018 | ) | (2,583 | ) | (1,674 | ) | |||||
Income before equity in undistributed net income of subsidiary | 2,029 | 25,614 | 7,351 | ||||||||
Equity in undistributed net income of subsidiary | 32,793 | 1,556 | 18,450 | ||||||||
Net income | $ | 34,822 | $ | 27,170 | $ | 25,801 | |||||
Condensed Statements of Cash Flows | |||||||||||
Years ended December 31 | |||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||
Operating activities | |||||||||||
Net income | $ | 34,822 | $ | 27,170 | $ | 25,801 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed net income of subsidiaries | (32,793 | ) | (1,556 | ) | (18,450 | ) | |||||
Decrease (increase) in receivable from subsidiaries | 2,514 | (21,896 | ) | 50 | |||||||
Stock compensation expense | 2,016 | 1,940 | 1,481 | ||||||||
Excess tax benefits from share- based compensation arrangements | (378 | ) | (265 | ) | (83 | ) | |||||
Depreciation, amortization and accretion, net | 45 | 1,396 | — | ||||||||
(Increase) decrease in other assets | (179 | ) | 4,453 | 1,963 | |||||||
Increase in other liabilities | 115 | 545 | 28 | ||||||||
Net cash provided by operating activities | 6,162 | 11,787 | 10,790 | ||||||||
Investing activities | |||||||||||
Proceeds from maturities of securities available for sale | — | 1,000 | — | ||||||||
Cash for acquisition, net of cash acquired | — | 8,963 | — | ||||||||
Net cash provided by investing activities | — | 9,963 | — | ||||||||
Financing activities | |||||||||||
Repayments of subordinated debentures | — | (30,900 | ) | — | |||||||
Proceeds from stock options | 2,473 | 2,435 | 961 | ||||||||
Excess tax benefit from share-based compensation arrangements | 378 | 265 | 83 | ||||||||
Common stock repurchases | (616 | ) | (331 | ) | (205 | ) | |||||
Cash dividends paid | (12,924 | ) | (11,670 | ) | (10,691 | ) | |||||
Net cash used in financing activities | (10,689 | ) | (40,201 | ) | (9,852 | ) | |||||
Net (decrease) increase in cash | (4,527 | ) | (18,451 | ) | 938 | ||||||
Cash at beginning of year | 7,453 | 25,904 | 24,966 | ||||||||
Cash at end of year | $ | 2,926 | $ | 7,453 | $ | 25,904 | |||||
Segments
Segments | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Segments | |||||||||||
Segments | (24) Segments | ||||||||||
Bancorp’s principal activities include commercial banking and investment management and trust. Commercial banking provides a full range of loan and deposit products to individual consumers and businesses. Commercial banking also includes Bancorp’s mortgage origination and securities brokerage activity. Investment management and trust provides wealth management services including investment management, trust and estate administration, and retirement plan services. | |||||||||||
Financial information for each business segment reflects that which is specifically identifiable or allocated based on an internal allocation method. Income taxes are allocated based on the effective federal income tax rate adjusted for any tax exempt activity. All tax exempt activity and provision for loan losses have been allocated to the commercial banking segment. The measurement of the performance of the business segments is based on the management structure of Bancorp and is not necessarily comparable with similar information for any other financial institution. Information presented is also not necessarily indicative of the segments’ operations if they were independent entities. | |||||||||||
Principally, all of the net assets of Stock Yards Bancorp, Inc. are involved in the commercial banking segment. Bancorp has goodwill of $682,000 related to the 1996 purchase of a bank in southern Indiana. This purchase facilitated Bancorp’s expansion in southern Indiana. Goodwill has been assigned to the commercial banking segment. | |||||||||||
Selected financial information by business segment follows: | |||||||||||
Investment | |||||||||||
Commercial | management | ||||||||||
(In thousands) | banking | and trust | Total | ||||||||
Year ended December 31, 2014 | |||||||||||
Net interest income | $ | 83,570 | $ | 187 | $ | 83,757 | |||||
Credit for loan losses | (400 | ) | — | (400 | ) | ||||||
Investment management and trust services | — | 18,212 | 18,212 | ||||||||
All other non-interest income | 20,913 | 30 | 20,943 | ||||||||
Non-interest expense | 62,523 | 10,686 | 73,209 | ||||||||
Income before income taxes | 42,360 | 7,743 | 50,103 | ||||||||
Tax expense | 12,527 | 2,754 | 15,281 | ||||||||
Net income | $ | 29,833 | $ | 4,989 | $ | 34,822 | |||||
Year ended December 31, 2013 | |||||||||||
Net interest income | $ | 77,144 | $ | 154 | $ | 77,298 | |||||
Provision for loan losses | 6,550 | — | 6,550 | ||||||||
Investment management and trust services | — | 16,287 | 16,287 | ||||||||
All other non-interest income | 22,654 | 61 | 22,715 | ||||||||
Non-interest expense | 61,891 | 9,461 | 71,352 | ||||||||
Income before income taxes | 31,357 | 7,041 | 38,398 | ||||||||
Tax expense | 8,740 | 2,488 | 11,228 | ||||||||
Net income | $ | 22,617 | $ | 4,553 | $ | 27,170 | |||||
Year ended December 31, 2012 | |||||||||||
Net interest income | $ | 73,800 | $ | 150 | $ | 73,950 | |||||
Provision for loan losses | 11,500 | — | 11,500 | ||||||||
Investment management and trust services | — | 14,278 | 14,278 | ||||||||
All other non-interest income | 24,110 | 69 | 24,179 | ||||||||
Non-interest expense | 57,323 | 8,149 | 65,472 | ||||||||
Income before income taxes | 29,087 | 6,348 | 35,435 | ||||||||
Tax expense | 7,412 | 2,222 | 9,634 | ||||||||
Net income | $ | 21,675 | $ | 4,126 | $ | 25,801 | |||||
Quarterly_Operating_Results_un
Quarterly Operating Results (unaudited) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Quarterly Operating Results (unaudited) | ||||||||||||||
Quarterly Operating Results (unaudited) | (25) Quarterly Operating Results (unaudited) | |||||||||||||
Following is a summary of quarterly operating results (unaudited) for 2014, 2013 and 2012: | ||||||||||||||
2014 | ||||||||||||||
(In thousands, except per share data) | 4th quarter | 3rd quarter | 2nd quarter | 1st quarter | ||||||||||
Interest income | $ | 22,778 | $ | 22,692 | $ | 22,013 | $ | 21,604 | ||||||
Interest expense | 1,267 | 1,329 | 1,358 | 1,376 | ||||||||||
Net interest income | 21,511 | 21,363 | 20,655 | 20,228 | ||||||||||
(Credit) provision for loan losses | — | (2,100 | ) | 1,350 | 350 | |||||||||
Net interest income after provision | 21,511 | 23,463 | 19,305 | 19,878 | ||||||||||
Non-interest income | 9,773 | 9,850 | 10,057 | 9,475 | ||||||||||
Non-interest expenses | 19,255 | 18,709 | 17,701 | 17,544 | ||||||||||
Income before income taxes | 12,029 | 14,604 | 11,661 | 11,809 | ||||||||||
Income tax expense | 3,307 | 4,715 | 3,627 | 3,632 | ||||||||||
Net income | $ | 8,722 | $ | 9,889 | $ | 8,034 | $ | 8,177 | ||||||
Basic earnings per share | $ | 0.6 | $ | 0.68 | $ | 0.55 | $ | 0.56 | ||||||
Diluted earnings per share | 0.59 | 0.67 | 0.55 | 0.56 | ||||||||||
2013 | ||||||||||||||
(In thousands, except per share data) | 4th quarter | 3rd quarter | 2nd quarter | 1st quarter | ||||||||||
Interest income | $ | 22,069 | $ | 22,267 | $ | 21,293 | $ | 20,835 | ||||||
Interest expense | 2,226 | 2,250 | 2,318 | 2,372 | ||||||||||
Net interest income | 19,843 | 20,017 | 18,975 | 18,463 | ||||||||||
Provision for loan losses | 1,575 | 1,325 | 1,325 | 2,325 | ||||||||||
Net interest income after provision | 18,268 | 18,692 | 17,650 | 16,138 | ||||||||||
Non-interest income | 9,811 | 9,652 | 10,311 | 9,228 | ||||||||||
Non-interest expenses | 19,380 | 17,571 | 18,822 | 15,579 | ||||||||||
Income before income taxes | 8,699 | 10,773 | 9,139 | 9,787 | ||||||||||
Income tax expense | 2,386 | 3,091 | 2,732 | 3,019 | ||||||||||
Net income | $ | 6,313 | $ | 7,682 | $ | 6,407 | $ | 6,768 | ||||||
Basic earnings per share | $ | 0.44 | $ | 0.53 | $ | 0.45 | $ | 0.49 | ||||||
Diluted earnings per share | 0.43 | 0.53 | 0.45 | 0.49 | ||||||||||
2012 | ||||||||||||||
4th quarter | 3rd quarter | 2nd quarter | 1st quarter | |||||||||||
Interest income | $ | 22,034 | $ | 21,692 | $ | 21,363 | $ | 21,812 | ||||||
Interest expense | 3,724 | 2,897 | 3,068 | 3,262 | ||||||||||
Net interest income | 18,310 | 18,795 | 18,295 | 18,550 | ||||||||||
Provision for loan losses | 2,475 | 2,475 | 2,475 | 4,075 | ||||||||||
Net interest income after provision | 15,835 | 16,320 | 15,820 | 14,475 | ||||||||||
Non-interest income | 10,127 | 9,795 | 9,290 | 9,245 | ||||||||||
Non-interest expenses | 17,183 | 17,045 | 16,508 | 14,736 | ||||||||||
Income before income taxes | 8,779 | 9,070 | 8,602 | 8,984 | ||||||||||
Income tax expense | 2,265 | 2,388 | 2,499 | 2,482 | ||||||||||
Net income | $ | 6,514 | $ | 6,682 | $ | 6,103 | $ | 6,502 | ||||||
Basic earnings per share | $ | 0.47 | $ | 0.48 | $ | 0.44 | $ | 0.47 | ||||||
Diluted earnings per share | 0.47 | 0.48 | 0.44 | 0.47 | ||||||||||
Note: The sum of earnings per share of each of the quarters in 2014, 2013 and 2012 may not add to the year-to-date amount reported in Bancorp’s consolidated financial statements due to rounding. | ||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Principles of Consolidation and Nature of Operations | Principles of Consolidation and Nature of Operations | ||||||||||
The consolidated financial statements include the accounts of Stock Yards Bancorp, Inc. (“Bancorp”) and its wholly owned subsidiary, Stock Yards Bank & Trust Company (“the Bank”). Significant intercompany transactions and accounts have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the 2014 presentation. Bancorp has evaluated subsequent events for recognition or disclosure up to the date on which financial statements were issued and determined there were none. | |||||||||||
In addition to traditional commercial and personal banking activities, Bancorp has an investment management and trust department offering a wide range of investment management, retirement planning, trust and estate administration and financial planning services. Bancorp’s primary market area is Louisville, Kentucky and surrounding communities including southern Indiana. Other markets include Indianapolis, Indiana and Cincinnati, Ohio. | |||||||||||
Basis of Financial Statement Presentation and Use of Estimates | Basis of Financial Statement Presentation and Use of Estimates | ||||||||||
The consolidated financial statements of Bancorp and its subsidiaries have been prepared in conformity with U.S. generally accepted accounting principles (US GAAP) and conform to predominant practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of related revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of other real estate owned, and estimated income tax assets, liabilities and expense. | |||||||||||
Cash Equivalents and Cash Flows | Cash Equivalents and Cash Flows | ||||||||||
Cash and cash equivalents include cash and due from banks and Federal funds sold as segregated in the accompanying consolidated balance sheets. The following supplemental cash flow information addresses certain cash payments and noncash transactions for each of the years in the three-year period ended December 31, 2014 as follows: | |||||||||||
Years ended December 31 | |||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||
Cash payments: | |||||||||||
Income tax payments | $ | 13,042 | $ | 8,350 | $ | 10,685 | |||||
Cash paid for interest | 5,327 | 9,210 | 13,017 | ||||||||
Non-cash transactions: | |||||||||||
Transfers from loans to other real estate owned | $ | 5,798 | $ | 5,246 | $ | 4,486 | |||||
Securities | Securities | ||||||||||
Securities available-for-sale include securities that may be sold in response to changes in interest rates, resultant prepayment risk and other factors related to interest rate and prepayment risk changes. Securities available-for-sale are carried at fair value with unrealized gains or losses, net of tax effect, included in stockholders’ equity. Amortization of premiums and accretion of discounts are recorded using the interest method over the life of the security. Gains or losses on sales of securities are computed on a specific identification basis. Declines in fair value of investment securities available-for-sale (with certain exceptions for debt securities noted below) that are deemed to be other-than-temporary are charged to earnings as a realized loss, and a new cost basis for the securities is established. In evaluating other-than-temporary impairment, management considers the length of time and extent to which fair value has been less than cost, financial condition and near-term prospects of the issuer, and the intent and ability of Bancorp to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value in the near term. Declines in fair value of debt securities below amortized cost are deemed to be other-than-temporary in circumstances where: (1) Bancorp has the intent to sell a security; (2) it is more likely than not that Bancorp will be required to sell the security before recovery of its amortized cost basis; or (3) Bancorp does not expect to recover the entire amortized cost basis of the security. If Bancorp intends to sell a security or if it is more likely than not that Bancorp will be required to sell the security before recovery, an other-than-temporary impairment write-down is recognized in earnings equal to the difference between the security’s amortized cost basis and its fair value. If Bancorp does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the other-than-temporary impairment write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in other comprehensive income. Declines in value judged to be other-than-temporary are included in gains (losses) on sales of securities available-for-sale in the consolidated statements of income. See Note 4 to Bancorp’s consolidated financial statements for additional information on investment securities. | |||||||||||
Mortgage Loans Held for Sale | Mortgage Loans Held for Sale | ||||||||||
Mortgage loans held for sale are initially recorded at the lower of cost or market value on an individual loan basis. All of these loans are covered by investor commitments. | |||||||||||
Loans | Loans | ||||||||||
Loans are stated at the unpaid principal balance plus deferred loan origination fees, net of deferred loan costs. Loan fees, net of any costs, are deferred and amortized over the life of the related loan on an effective yield basis. Interest income on loans is recorded on the accrual basis except for those loans in a non-accrual income status. Loans are placed in a non-accrual income status when prospects for recovering both principal and accrued interest are considered doubtful or when a default of principal or interest has existed for 90 days or more unless such loan is well secured and in the process of collection. When a loan is placed on non-accrual status, any interest previously accrued but not yet collected is reversed against current income. Interest income is recorded on a cash basis during the period a loan is on non-accrual status so long as the recovery of principal is reasonably assured. Non-accrual loans may be returned to accrual status once prospects for recovering both principal and accrued interest are reasonably assured. Loans are accounted for as troubled debt restructuring when Bancorp, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. If a loan is restructured at a market rate for a new loan with comparable risk, no principal forgiveness has been granted, and the loan is not impaired based on the terms specified by the restructuring agreement, it shall be removed from restructured status generally after six months of performance. | |||||||||||
Loans are classified as impaired when it is probable Bancorp will be unable to collect interest and principal according to the terms of the loan agreement. These loans are measured based on the present value of future cash flows discounted at the loans’ effective interest rate or at the estimated fair value of the loans’ collateral, if applicable. Impaired loans consist of loans in non-accrual status or loans accounted for as troubled debt restructuring. | |||||||||||
Allowance for Loan Losses | Allowance for Loan Losses | ||||||||||
The allowance for loan losses is management’s estimate of probable inherent losses on outstanding loans. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Prior to 2013, management measured the appropriateness of the allowance for loan losses in its entirety using (a) quantitative (historical loss rates) and qualitative factors (management adjustment factors); (b) specific allocations on impaired loans, and (c) an unallocated amount. The unallocated amount was evaluated on the loan portfolio in its entirety and was based on additional factors, such as national and local economic trends and conditions, changes in volume and severity of past due loans, volume of non-accrual loans, volume and severity of adversely classified or graded loans and other factors and trends that affect specific loans and categories of loans, such as a heightened risk in the commercial and industrial loan portfolios. Bancorp utilized the sum of all allowance amounts derived as described above, including a reasonable unallocated allowance, as an indicator of the appropriate level of allowance for loan and lease losses. | |||||||||||
During 2013, Bancorp refined its allowance calculation to allocate the portion of allowance that was previously deemed to be unallocated to instead be included in management’s determination of appropriate qualitative factors. This refined allowance calculation includes specific allowance allocations for qualitative factors including, among other factors, (i) national and local economic conditions, (ii) the quality and experience of lending staff and management, (iii) changes in lending policies and procedures, (iv) changes in volume and severity of past due loans, classified loans and non-performing loans, (v) potential impact of any concentrations of credit, (vi) changes in the nature and terms of loans such as growth rates and utilization rates, (vii) changes in the value of underlying collateral for collateral-dependent loans, considering Bancorp’s disposition bias, and (viii) the effect of other external factors such as the legal and regulatory environment. Bancorp may also consider other qualitative factors for additional allowance allocations, including changes in Bancorp’s loan review process. Changes in the criteria used in this evaluation or the availability of new information could cause the allowance to be increased or decreased in future periods. In addition, bank regulatory agencies, as part of their examination process, may require adjustments to the allowance for loan losses based on their judgments and estimates. | |||||||||||
Based on this quantitative and qualitative analysis, (credits) provisions are made to the allowance for loan losses. Such (credits) provisions are reflected as a (benefit to) charge against current earnings in Bancorp’s consolidated statements of income. | |||||||||||
The adequacy of the allowance for loan losses is monitored by the internal loan review staff and reported quarterly to the Audit Committee of the Board of Directors. This committee has approved the overall methodology. Various regulatory agencies, as an integral part of their examination process, periodically review the adequacy of Bancorp’s allowance for loan losses. Such agencies may require Bancorp to make additional provisions to the allowance based upon their judgments about information available to them at the time of their examinations. | |||||||||||
Acquired loans | Acquired loans | ||||||||||
Bancorp acquired loans in the second quarter of 2013 as part of the acquisition referenced in Note 2 to the consolidated financial statements. Acquired loans were initially recorded at their acquisition date fair values. US GAAP prohibits carryover of the allowance for loan losses as any credit losses in the loans are included in the determination of the fair value of the loans at the acquisition date. Fair values for acquired loans were based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, default rates, loss severity, collateral values, discount rates, payment speeds, prepayment risk, and liquidity risk at the time of acquisition. | |||||||||||
Acquired loans that had evidence of deterioration in credit quality since origination and for which it was probable, at acquisition, that Bancorp would be unable to collect all contractually required payments were specifically identified and analyzed. The excess of cash flows expected at acquisition over the estimated fair value is referred to as accretable discount and will be recognized as interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as non-accretable discount. The non-accretable discount represents estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows require Bancorp to evaluate the need for an allowance for loan losses on these loans. Subsequent improvements in expected cash flows will result in the reversal of a corresponding amount of the non-accretable discount which Bancorp will reclassify as an accretable discount that will be recognized into interest income over the remaining life of the loan using the interest method. Bancorp’s evaluation of the amount of future cash flows that it expects to collect is performed in a similar manner as that used to determine its allowance for loan losses. Charge-offs of the principal amount on credit-impaired acquired loans would be first applied to non-accretable discount. | |||||||||||
For acquired loans that are not deemed impaired at acquisition, the methods used to estimate the required allowance for loan losses for acquired loans is the same for originated loans except that any initial fair value adjustment is taken into consideration when calculating any required allowance. | |||||||||||
Premises and Equipment | Premises and Equipment | ||||||||||
Premises and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation of premises and equipment is computed using straight-line methods over the estimated useful lives of the assets ranging from 3 to 40 years. Leasehold improvements are amortized on the straight-line method over the terms of the related leases, including expected renewals, or over the useful lives of the improvements, whichever is shorter. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. | |||||||||||
Other Assets | Other Assets | ||||||||||
Bank-owned life insurance (BOLI) is carried at net realizable value, which considers any applicable surrender charges. Also, Bancorp maintains life insurance policies other than BOLI in conjunction with its non-qualified defined benefit and non-qualified compensation plans. | |||||||||||
Other real estate is carried at the lower of cost or estimated fair value minus estimated selling costs. Any write downs to fair value at the date of acquisition are charged to the allowance for loan losses. In certain situations, improvements to prepare assets for sale are capitalized if those costs increase the estimated fair value of the asset. Expenses incurred in maintaining assets, write downs to reflect subsequent declines in value, and realized gains or losses are reflected in operations and are included in non-interest income and expense. | |||||||||||
Bancorp’s investment in a domestic private investment fund was comprised of bank and other financial industry securities and was accounted for as an equity-method investment in accordance with US GAAP until its liquidation in 2012. | |||||||||||
MSRs are amortized in proportion to and over the period of estimated net servicing income, considering appropriate prepayment assumptions. MSRs are evaluated quarterly for impairment by comparing the carrying value to the fair value. | |||||||||||
Goodwill is measured and evaluated at least annually for impairment. No impairment charges have been deemed necessary or recorded to date, as the fair value is substantially in excess of the carrying value. | |||||||||||
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase | ||||||||||
Bancorp enters into sales of securities under agreement to repurchase at a specified future date. Such repurchase agreements are considered financing agreements and, accordingly, the obligation to repurchase assets sold is reflected as a liability in the consolidated balance sheets of Bancorp. Repurchase agreements are collateralized by debt securities which are owned and under the control of Bancorp. These agreements are used in conjunction with collateralized corporate cash management accounts. | |||||||||||
Repurchased Shares of Common Stock | Repurchased Shares of Common Stock | ||||||||||
The repurchase of Bancorp’s common stock is recorded at cost, and repurchased shares are returned to the status of authorized, but unissued. Amounts recorded in common stock are based on the stated value of the shares, as there is no par value. Residual amounts are recorded in additional paid in capital. | |||||||||||
Income Taxes | Income Taxes | ||||||||||
Bancorp accounts for income taxes using the asset and liability method. The objective of the asset and liability method is to establish deferred tax assets and liabilities for temporary differences between the financial reporting and the tax bases of Bancorp’s assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of income in the period that includes the enactment date. | |||||||||||
Realization of deferred tax assets associated with the investment in partnerships is dependent upon generating sufficient taxable capital gain income prior to their expiration. A valuation allowance to reflect management’s estimate of the temporary deductible differences that may expire prior to their utilization has been recorded at year-end 2014. No valuation allowance for deferred tax assets was recorded as of December 31, 2013 because Bancorp has sufficient prior taxable income, future projected taxable income, and tax planning strategies to allow for utilization of the deductible temporary differences and capital loss carryforwards within the carryforward period. | |||||||||||
To the extent unrecognized income tax benefits become realized or the related accrued interest is no longer necessary, Bancorp’s provision for income taxes would be favorably impacted. As of December 31, 2014 and 2013, the gross amount of unrecognized tax benefits was $40,000. If recognized, the tax benefits would reduce tax expense and accordingly, increase net income. The amount of unrecognized tax benefits may increase or decrease in the future for various reasons including adding amounts for current tax year positions, expiration of open income tax returns due to statutes of limitation, changes in management’s judgment about the level of uncertainty, status of examination, litigation and legislative activity and the addition or elimination of uncertain tax positions. Stock Yards Bancorp, Inc. and its wholly-owned subsidiary file consolidated income tax returns in applicable jurisdictions. | |||||||||||
Bancorp’s policy is to report interest and penalties, if any, related to unrecognized tax benefits in income tax expense. As of December 31, 2014 and 2013, the amount accrued for the potential payment of interest and penalties was $2,000. | |||||||||||
Bancorp invests in certain partnerships that yield low-income housing, historic and new market tax credits as well as tax deductible losses. The tax benefits and related investment amortization expenses for low-income housing credits are recognized in income tax expense using an effective yield method over the life of the investment. In 2014, the amortization method for investments in new markets and historic tax credit partnerships was changed from the effective yield method to the flow through method. The flow through method matches the amortization period with the time frame over which the credits are realized and amortization expense is recorded as other non-interest expense. | |||||||||||
Net Income Per Share | Net Income Per Share | ||||||||||
Basic net income per common share is determined by dividing net income by the weighted average number of shares of common stock outstanding. Diluted net income per share is determined by dividing net income by the weighted average number of shares of common stock outstanding plus the weighted average number of shares that would be issued upon exercise of dilutive options and stock appreciation rights, assuming proceeds are used to repurchase shares under the treasury stock method. | |||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||
Comprehensive income is defined as the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. For Bancorp, this includes net income, changes in unrealized gains and losses on available-for-sale investment securities and cash flow hedging instruments, net of taxes, and minimum pension liability adjustments, net of taxes. | |||||||||||
Segment Information | Segment Information | ||||||||||
Bancorp provides a broad range of financial services to individuals, corporations and others through its thirty-four full service banking locations as of December 31, 2014. These services include loan and deposit services, cash management services, securities brokerage activities, mortgage origination and investment management and trust activities. Bancorp’s operations are considered by management to be aggregated in two reportable operating segments: commercial banking and investment management and trust. | |||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||
For all awards, stock-based compensation expense is recognized over the period in which it is earned based on the fair value of the portion of stock-based payment awards that are ultimately expected to vest, reduced for estimated forfeitures. US GAAP requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||
Derivatives | Derivatives | ||||||||||
Bancorp uses derivative financial instruments as part of its interest rate risk management, including interest rate swaps. US GAAP establishes accounting and reporting standards for derivative instruments and hedging activities. As required by US GAAP, Bancorp’s interest rate swaps are recognized as other assets and liabilities in the consolidated balance sheet at fair value. Accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. To qualify for hedge accounting, Bancorp must comply with detailed rules and documentation requirements at inception of the hedge, and hedge effectiveness is assessed at inception and periodically throughout the life of each hedging relationship. Hedge ineffectiveness, if any, is measured periodically throughout the life of the hedging relationship. | |||||||||||
For derivatives designated as cash flow hedges, the effective portion of changes in fair value of the derivative is initially reported in other comprehensive income and subsequently reclassified to interest income or expense when the hedged transaction affects earnings, while the ineffective portion of changes in fair value of derivative, if any, is recognized immediately in other noninterest income. Bancorp assesses effectiveness of each hedging relationship by comparing the cumulative changes in cash flows of the derivative hedging instrument with the cumulative changes in cash flows of the designated hedged item or transaction. No component of the change in the fair value of the hedging instrument is excluded from the assessment of hedge effectiveness. | |||||||||||
Bancorp offers interest rate swaps to customers desiring long-term fixed rate lending whereby Bancorp receives interest at a fixed rate and pays interest at a variable rate. Simultaneously, Bancorp enters into an interest rate swap agreement with an unrelated counterparty whereby Bancorp pays interest at a fixed rate and receives interest at a variable rate. Because of matching terms of offsetting contracts and the collateral provisions mitigating any non-performance risk, changes in fair value subsequent to initial recognition have an insignificant effect on earnings. Because these derivative instruments have not been designated as hedging instruments, the derivative instruments are recognized on the consolidated balance sheet at fair value, with changes in fair value, due to changes in prevailing interest rates, recorded in other noninterest income. | |||||||||||
Bancorp had no fair value hedging relationships at December 31, 2014 or 2013. Bancorp does not use derivatives for trading or speculative purposes. | |||||||||||
See Note 21 to the consolidated financial statement for more information regarding derivatives. | |||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Summary of Significant Accounting Policies | |||||||||||
Schedule of supplemental cash flow information | |||||||||||
Years ended December 31 | |||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||
Cash payments: | |||||||||||
Income tax payments | $ | 13,042 | $ | 8,350 | $ | 10,685 | |||||
Cash paid for interest | 5,327 | 9,210 | 13,017 | ||||||||
Non-cash transactions: | |||||||||||
Transfers from loans to other real estate owned | $ | 5,798 | $ | 5,246 | $ | 4,486 | |||||
Acquisition_Tables
Acquisition (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Acquisition | |||||||||||
Summary of consideration paid and the amounts of assets acquired and liabilities assumed, adjusted for fair value at the acquisition date | |||||||||||
(dollars in thousands) | Dollars | ||||||||||
Purchase price: | |||||||||||
Value of: | |||||||||||
Cash | $ | 8,297 | |||||||||
Equity instruments (531,288 common shares of Bancorp) | 12,198 | ||||||||||
Total purchase price | 20,495 | ||||||||||
Identifiable assets: | |||||||||||
Cash and federal funds sold | 17,260 | ||||||||||
Investment securities | 81,827 | ||||||||||
Loans | 39,755 | ||||||||||
Premises and equipment | 4,008 | ||||||||||
Core deposit intangible | 2,543 | ||||||||||
Other assets | 605 | ||||||||||
Total identifiable assets | 145,998 | ||||||||||
Identifiable liabilities: | |||||||||||
Deposits | 120,435 | ||||||||||
Securities sold under agreement to repurchase | 2,762 | ||||||||||
Other liabilities | 1,857 | ||||||||||
Total identifiable liabilities | 125,054 | ||||||||||
Net gain resulting from acquisition | $ | 449 | |||||||||
Acquisition costs (included in other non-interest expenses in Bancorp’s income statement for the year ended December 31, 2013) | $ | 1,548 | |||||||||
Schedule of fair value of acquired loans | Below is an analysis of the fair value of acquired loans as of December 31, 2014. | ||||||||||
(in thousands) | Acquired | Acquired non- | Total | ||||||||
impaired | impaired | acquired | |||||||||
loans | loans | loans | |||||||||
Contractually required principal and interest at acquisition | $ | 3,285 | $ | 37,763 | $ | 41,048 | |||||
Contractual cash flows not expected to be collected | (372 | ) | (723 | ) | (1,095 | ) | |||||
Expected cash flows at acquisition | 2,913 | 37,040 | 39,953 | ||||||||
Interest component of expected cash flows | (174 | ) | (24 | ) | (198 | ) | |||||
Basis in acquired loans at acquisition - estimated fair value | $ | 2,739 | $ | 37,016 | $ | 39,755 | |||||
Securities_Tables
Securities (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Securities | ||||||||||||||||||||
Schedule of amortized cost, unrealized gains and losses, and fair value of securities available for sale | ||||||||||||||||||||
(in thousands) | Amortized | Unrealized | ||||||||||||||||||
December 31, 2014 | cost | Gains | Losses | Fair value | ||||||||||||||||
U.S. Treasury and other U.S. government obligations | $ | 70,000 | $ | — | $ | — | $ | 70,000 | ||||||||||||
Government sponsored enterprise obligations | 203,531 | 2,017 | 562 | 204,986 | ||||||||||||||||
Mortgage-backed securities - government agencies | 173,573 | 2,042 | 1,345 | 174,270 | ||||||||||||||||
Obligations of states and political subdivisions | 61,416 | 1,560 | 142 | 62,834 | ||||||||||||||||
Corporate equity securities | 756 | 210 | — | 966 | ||||||||||||||||
Total securities available-for-sale | $ | 509,276 | $ | 5,829 | $ | 2,049 | $ | 513,056 | ||||||||||||
(in thousands) | Amortized | Unrealized | ||||||||||||||||||
December 31, 2013 | cost | Gains | Losses | Fair value | ||||||||||||||||
U.S. Treasury and other U.S. government obligations | $ | 110,000 | $ | — | $ | — | $ | 110,000 | ||||||||||||
Government sponsored enterprise obligations | 138,094 | 1,623 | 1,872 | 137,845 | ||||||||||||||||
Mortgage-backed securities - government agencies | 176,524 | 1,391 | 5,222 | 172,693 | ||||||||||||||||
Obligations of states and political subdivisions | 68,448 | 1,473 | 428 | 69,493 | ||||||||||||||||
Total securities available-for-sale | $ | 493,066 | $ | 4,487 | $ | 7,522 | $ | 490,031 | ||||||||||||
Summary of securities based on contractual maturity | A summary of the available-for-sale investment securities by maturity groupings as of December 31, 2014 is shown below. | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Securities available-for-sale | Amortized cost | Fair value | ||||||||||||||||||
Due within 1 year | $ | 113,369 | $ | 113,589 | ||||||||||||||||
Due after 1 but within 5 years | 128,738 | 130,181 | ||||||||||||||||||
Due after 5 but within 10 years | 25,044 | 25,632 | ||||||||||||||||||
Due after 10 years | 67,796 | 68,418 | ||||||||||||||||||
Corporate equity securities | 756 | 966 | ||||||||||||||||||
Mortgage-backed securities - government agencies | 173,573 | 174,270 | ||||||||||||||||||
Total securities available for sale | $ | 509,276 | $ | 513,056 | ||||||||||||||||
Schedule of securities with unrealized losses not recognized in the statements of income | ||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
(in thousands) | value | losses | value | losses | value | losses | ||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Government sponsored enterprise obligations | $ | 36,979 | $ | 30 | $ | 26,848 | $ | 532 | $ | 63,827 | $ | 562 | ||||||||
Mortgage-backed securities - government agencies | 4,038 | 77 | 49,325 | 1,268 | 53,363 | 1,345 | ||||||||||||||
Obligations of states and political subdivisions | 12,655 | 67 | 6,297 | 75 | 18,952 | 142 | ||||||||||||||
Total temporarily impaired securities | $ | 53,672 | $ | 174 | $ | 82,470 | $ | 1,875 | $ | 136,142 | $ | 2,049 | ||||||||
December 31, 2013 | ||||||||||||||||||||
Government sponsored enterprise obligations | $ | 76,755 | $ | 1,429 | $ | 4,353 | $ | 443 | $ | 81,108 | $ | 1,872 | ||||||||
Mortgage-backed securities - government agencies | 112,652 | 4,400 | 8,752 | 822 | 121,404 | 5,222 | ||||||||||||||
Obligations of states and political subdivisions | 22,092 | 405 | 1,211 | 23 | 23,303 | 428 | ||||||||||||||
Total temporarily impaired securities | $ | 211,499 | $ | 6,234 | $ | 14,316 | $ | 1,288 | $ | 225,815 | $ | 7,522 | ||||||||
Loans_Tables
Loans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||
Schedule of loans by primary loan portfolio segment | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||||||||||||
Commercial and industrial | $ | 577,911 | $ | 510,739 | ||||||||||||||||||||
Construction and development, excluding undeveloped land | 95,733 | 99,719 | ||||||||||||||||||||||
Undeveloped land | 22,268 | 29,871 | ||||||||||||||||||||||
Real estate mortgage | 1,133,953 | 1,046,823 | ||||||||||||||||||||||
Consumer | 38,685 | 34,198 | ||||||||||||||||||||||
$ | 1,868,550 | $ | 1,721,350 | |||||||||||||||||||||
Schedule of loans to directors and their associates, including loans to companies for which directors are principal owners, and executive officers | ||||||||||||||||||||||||
(in thousands) | Year ended December 31, | |||||||||||||||||||||||
Loans to directors and executive officers | 2014 | 2013 | ||||||||||||||||||||||
Balance as of January 1 | $ | 8,667 | $ | 6,099 | ||||||||||||||||||||
New loans | — | 2,210 | ||||||||||||||||||||||
Repayment of term loans | 1,222 | 892 | ||||||||||||||||||||||
Changes in balances of revolving lines of credit | 4,345 | 1,250 | ||||||||||||||||||||||
Balance as of December 31 | $ | 11,790 | $ | 8,667 | ||||||||||||||||||||
Schedule of the balance in the recorded investment in loans and allowance for loan losses by portfolio segment and based on impairment method | ||||||||||||||||||||||||
Type of loan | ||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||
and development | ||||||||||||||||||||||||
Commercial | excluding | |||||||||||||||||||||||
(in thousands) | and | undeveloped | Undeveloped | Real estate | ||||||||||||||||||||
December 31, 2014 | industrial | land | land | mortgage | Consumer | Total | ||||||||||||||||||
Loans | $ | 577,911 | $ | 95,733 | $ | 22,268 | $ | 1,133,953 | $ | 38,685 | $ | 1,868,550 | ||||||||||||
Loans individually evaluated for impairment | $ | 6,239 | $ | 516 | $ | 1,000 | $ | 3,720 | $ | 76 | $ | 11,551 | ||||||||||||
Loans collectively evaluated for impairment | $ | 571,600 | $ | 94,603 | $ | 21,268 | $ | 1,129,766 | $ | 38,600 | $ | 1,855,837 | ||||||||||||
Loans acquired with deteriorated credit quality | $ | 72 | $ | 614 | $ | — | $ | 467 | $ | 9 | $ | 1,162 | ||||||||||||
Construction | ||||||||||||||||||||||||
and development | ||||||||||||||||||||||||
Commercial | excluding | |||||||||||||||||||||||
and | undeveloped | Undeveloped | Real estate | |||||||||||||||||||||
industrial | land | land | mortgage | Consumer | Unallocated | Total | ||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||
At December 31, 2013 | $ | 7,644 | $ | 2,555 | $ | 5,376 | $ | 12,604 | $ | 343 | $ | — | $ | 28,522 | ||||||||||
Provision (credit) | 4,593 | (1,584 | ) | (2,244 | ) | (1,190 | ) | 25 | — | (400 | ) | |||||||||||||
Charge-offs | (661 | ) | (250 | ) | (1,753 | ) | (993 | ) | (587 | ) | — | (4,244 | ) | |||||||||||
Recoveries | 243 | — | 166 | 120 | 513 | — | 1,042 | |||||||||||||||||
At December 31, 2014 | $ | 11,819 | $ | 721 | $ | 1,545 | $ | 10,541 | $ | 294 | $ | — | $ | 24,920 | ||||||||||
Allowance for loans individually evaluated for impairment | $ | 529 | $ | 15 | $ | 500 | $ | 256 | $ | 76 | $ | — | $ | 1,376 | ||||||||||
Allowance for loans collectively evaluated for impairment | $ | 11,290 | $ | 706 | $ | 1,045 | $ | 10,285 | $ | 218 | $ | — | $ | 23,544 | ||||||||||
Allowance for loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Type of loan | ||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||
and development | ||||||||||||||||||||||||
Commercial | excluding | |||||||||||||||||||||||
(in thousands) | and | undeveloped | Undeveloped | Real estate | ||||||||||||||||||||
December 31, 2013 | industrial | land | land | mortgage | Consumer | Total | ||||||||||||||||||
Loans | $ | 510,739 | $ | 99,719 | $ | 29,871 | $ | 1,046,823 | $ | 34,198 | $ | 1,721,350 | ||||||||||||
Loans individually evaluated for impairment | $ | 7,579 | $ | 26 | $ | 7,340 | $ | 7,478 | $ | 84 | $ | 22,507 | ||||||||||||
Loans collectively evaluated for impairment | $ | 502,535 | $ | 98,428 | $ | 22,531 | $ | 1,038,824 | $ | 34,095 | $ | 1,696,413 | ||||||||||||
Loans acquired with deteriorated credit quality | $ | 625 | $ | 1,265 | $ | — | $ | 521 | $ | 19 | $ | 2,430 | ||||||||||||
Construction | ||||||||||||||||||||||||
and development | ||||||||||||||||||||||||
Commercial | excluding | |||||||||||||||||||||||
and | undeveloped | Undeveloped | Real estate | |||||||||||||||||||||
industrial | land | land | mortgage | Consumer | Unallocated | Total | ||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||
At December 31, 2012 | $ | 5,949 | $ | 1,638 | $ | 2,898 | $ | 14,288 | $ | 362 | $ | 6,746 | $ | 31,881 | ||||||||||
Provision | 1,583 | 779 | 10,358 | 490 | 86 | (6,746 | ) | 6,550 | ||||||||||||||||
Charge-offs | (457 | ) | (25 | ) | (7,961 | ) | (2,758 | ) | (763 | ) | — | (11,964 | ) | |||||||||||
Recoveries | 569 | 163 | 81 | 584 | 658 | — | 2,055 | |||||||||||||||||
At December 31, 2013 | $ | 7,644 | $ | 2,555 | $ | 5,376 | $ | 12,604 | $ | 343 | $ | — | $ | 28,522 | ||||||||||
Allowance for loans individually evaluated for impairment | $ | 762 | $ | — | $ | — | $ | 606 | $ | 84 | $ | — | $ | 1,452 | ||||||||||
Allowance for loans collectively evaluated for impairment | $ | 6,882 | $ | 2,555 | $ | 5,376 | $ | 11,998 | $ | 259 | $ | — | $ | 27,070 | ||||||||||
Allowance for loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Type of loan | ||||||||||||||||||||||||
(in thousands) | Commercial | Construction | Real estate | |||||||||||||||||||||
December 31, 2012 | and industrial | and development | mortgage | Consumer | Total | |||||||||||||||||||
Loans | $ | 426,930 | $ | 131,253 | $ | 989,631 | $ | 36,780 | $ | 1,584,594 | ||||||||||||||
Loans individually evaluated for impairment | $ | 8,667 | $ | 10,863 | $ | 9,795 | $ | 4 | $ | 29,329 | ||||||||||||||
Loans collectively evaluated for impairment | $ | 418,263 | $ | 120,390 | $ | 979,836 | $ | 36,776 | $ | 1,555,265 | ||||||||||||||
Loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Commercial | Construction | Real estate | ||||||||||||||||||||||
and industrial | and development | mortgage | Consumer | Unallocated | Total | |||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||
At December 31, 2011 | $ | 7,364 | $ | 3,546 | $ | 11,182 | $ | 540 | $ | 7,113 | $ | 29,745 | ||||||||||||
Provision | 3,024 | 2,716 | 6,308 | (181 | ) | (367 | ) | 11,500 | ||||||||||||||||
Charge-offs | (4,523 | ) | (1,726 | ) | (3,451 | ) | (798 | ) | — | (10,498 | ) | |||||||||||||
Recoveries | 84 | — | 249 | 801 | — | 1,134 | ||||||||||||||||||
At December 31, 2012 | $ | 5,949 | $ | 4,536 | $ | 14,288 | $ | 362 | $ | 6,746 | $ | 31,881 | ||||||||||||
Allowance for loans individually evaluated for impairment | $ | 156 | $ | 2,898 | $ | 563 | $ | — | $ | — | $ | 3,617 | ||||||||||||
Allowance for loans collectively evaluated for impairment | $ | 5,793 | $ | 1,638 | $ | 13,725 | $ | 362 | $ | 6,746 | $ | 28,264 | ||||||||||||
Allowance for loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Schedule of changes in the interest component of the fair value adjustment for acquired impaired loans | ||||||||||||||||||||||||
(in thousands) | Accretable | Non-accretable | ||||||||||||||||||||||
discount | discount | |||||||||||||||||||||||
Balance at December 31, 2012 | $ | — | $ | — | ||||||||||||||||||||
Additions due to Oldham acquisition | 174 | 372 | ||||||||||||||||||||||
Accretion | (37 | ) | (3 | ) | ||||||||||||||||||||
Reclassifications from (to) non-accretable difference | — | — | ||||||||||||||||||||||
Disposals | — | — | ||||||||||||||||||||||
Balance at December 31, 2013 | 137 | 369 | ||||||||||||||||||||||
Accretion | (75 | ) | (103 | ) | ||||||||||||||||||||
Reclassifications from (to) non-accretable difference | — | — | ||||||||||||||||||||||
Disposals | — | — | ||||||||||||||||||||||
Balance at December 31, 2014 | $ | 62 | $ | 266 | ||||||||||||||||||||
Schedule of loans individually evaluated for impairment | ||||||||||||||||||||||||
Unpaid | Average | |||||||||||||||||||||||
(in thousands) | Recorded | principal | Related | recorded | ||||||||||||||||||||
December 31, 2014 | investment | balance | allowance | investment | ||||||||||||||||||||
Loans with no related allowance recorded | ||||||||||||||||||||||||
Commercial and industrial | $ | 396 | $ | 408 | $ | — | $ | 896 | ||||||||||||||||
Construction and development, excluding undeveloped land | 26 | 151 | — | 26 | ||||||||||||||||||||
Undeveloped land | 500 | 3,188 | — | 5,708 | ||||||||||||||||||||
Real estate mortgage | 2,803 | 3,240 | — | 2,999 | ||||||||||||||||||||
Consumer | — | — | — | — | ||||||||||||||||||||
Subtotal | 3,725 | 6,987 | — | 9,629 | ||||||||||||||||||||
Loans with an allowance recorded | ||||||||||||||||||||||||
Commercial and industrial | $ | 5,843 | $ | 6,318 | $ | 529 | $ | 6,697 | ||||||||||||||||
Construction and development, excluding undeveloped land | 490 | 490 | 15 | 196 | ||||||||||||||||||||
Undeveloped land | 500 | 1,596 | 500 | 100 | ||||||||||||||||||||
Real estate mortgage | 917 | 917 | 256 | 1,995 | ||||||||||||||||||||
Consumer | 76 | 76 | 76 | 80 | ||||||||||||||||||||
Subtotal | 7,826 | 9,397 | 1,376 | 9,068 | ||||||||||||||||||||
Total | ||||||||||||||||||||||||
Commercial and industrial | $ | 6,239 | $ | 6,726 | $ | 529 | $ | 7,593 | ||||||||||||||||
Construction and development, excluding undeveloped land | 516 | 641 | 15 | 222 | ||||||||||||||||||||
Undeveloped land | 1,000 | 4,784 | 500 | 5,808 | ||||||||||||||||||||
Real estate mortgage | 3,720 | 4,157 | 256 | 4,994 | ||||||||||||||||||||
Consumer | 76 | 76 | 76 | 80 | ||||||||||||||||||||
Total | $ | 11,551 | $ | 16,384 | $ | 1,376 | $ | 18,697 | ||||||||||||||||
Unpaid | Average | |||||||||||||||||||||||
(in thousands) | Recorded | principal | Related | recorded | ||||||||||||||||||||
December 31, 2013 | investment | balance | allowance | investment | ||||||||||||||||||||
Loans with no related allowance recorded | ||||||||||||||||||||||||
Commercial and industrial | $ | 830 | $ | 974 | $ | — | $ | 4,499 | ||||||||||||||||
Construction and development, excluding undeveloped land | 26 | 151 | — | 54 | ||||||||||||||||||||
Undeveloped land | 7,340 | 9,932 | — | 3,272 | ||||||||||||||||||||
Real estate mortgage | 3,731 | 5,069 | — | 5,559 | ||||||||||||||||||||
Consumer | — | — | — | 3 | ||||||||||||||||||||
Subtotal | 11,927 | 16,126 | — | 13,387 | ||||||||||||||||||||
Loans with an allowance recorded | ||||||||||||||||||||||||
Commercial and industrial | $ | 6,749 | $ | 6,749 | $ | 762 | $ | 3,806 | ||||||||||||||||
Construction and development, excluding undeveloped land | — | — | — | 259 | ||||||||||||||||||||
Undeveloped land | — | — | — | 7,152 | ||||||||||||||||||||
Real estate mortgage | 3,747 | 4,065 | 606 | 3,705 | ||||||||||||||||||||
Consumer | 84 | 84 | 84 | 34 | ||||||||||||||||||||
Subtotal | 10,580 | 10,898 | 1,452 | 14,956 | ||||||||||||||||||||
Total | ||||||||||||||||||||||||
Commercial and industrial | $ | 7,579 | $ | 7,723 | $ | 762 | $ | 8,305 | ||||||||||||||||
Construction and development, excluding undeveloped land | 26 | 151 | — | 313 | ||||||||||||||||||||
Undeveloped land | 7,340 | 9,932 | — | 10,424 | ||||||||||||||||||||
Real estate mortgage | 7,478 | 9,134 | 606 | 9,264 | ||||||||||||||||||||
Consumer | 84 | 84 | 84 | 37 | ||||||||||||||||||||
Total | $ | 22,507 | $ | 27,024 | $ | 1,452 | $ | 28,343 | ||||||||||||||||
Schedule of recorded investment in non-accrual loans | ||||||||||||||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||||||||||||||
Commercial and industrial | $ | 381 | $ | 846 | ||||||||||||||||||||
Construction and development, excluding undeveloped land | 516 | 26 | ||||||||||||||||||||||
Undeveloped land | 1,000 | 7,340 | ||||||||||||||||||||||
Real estate mortgage | 3,302 | 7,046 | ||||||||||||||||||||||
Consumer | — | — | ||||||||||||||||||||||
Total | $ | 5,199 | $ | 15,258 | ||||||||||||||||||||
Schedule of the recorded investment in loans modified and classified as TDR | ||||||||||||||||||||||||
(dollars in thousands) | Number of | Recorded | ||||||||||||||||||||||
December 31, 2013 | contracts | investment | ||||||||||||||||||||||
Commercial & industrial | 1 | $ | 796 | |||||||||||||||||||||
Real estate mortgage | 1 | 85 | ||||||||||||||||||||||
Total | 2 | $ | 881 | |||||||||||||||||||||
Schedule of the recorded investment in loans accounted for as TDR that were restructured and experienced a payment default | ||||||||||||||||||||||||
(dollars in thousands) | Number of | Recorded | ||||||||||||||||||||||
December 31, 2013 | Contracts | investment | ||||||||||||||||||||||
Commercial & industrial | 1 | $ | 790 | |||||||||||||||||||||
Real estate mortgage | 2 | 2,425 | ||||||||||||||||||||||
Total | 3 | $ | 3,215 | |||||||||||||||||||||
Schedule of aging of loans | ||||||||||||||||||||||||
Greater | ||||||||||||||||||||||||
than | Recorded | |||||||||||||||||||||||
90 days | investment | |||||||||||||||||||||||
past due | > 90 days | |||||||||||||||||||||||
30-59 days | 60-89 days | (includes | Total | Total | and | |||||||||||||||||||
(in thousands) | past due | past due | non-accrual) | past due | Current | loans | accruing | |||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Commercial and industrial | $ | 3,860 | $ | 3 | $ | 382 | $ | 4,245 | $ | 573,666 | $ | 577,911 | $ | 1 | ||||||||||
Construction and development, excluding undeveloped land | 69 | — | 757 | 826 | 94,907 | 95,733 | 241 | |||||||||||||||||
Undeveloped land | — | — | 1,000 | 1,000 | 21,268 | 22,268 | — | |||||||||||||||||
Real estate mortgage | 4,536 | 1,532 | 3,389 | 9,457 | 1,124,496 | 1,133,953 | 87 | |||||||||||||||||
Consumer | 43 | 18 | — | 61 | 38,624 | 38,685 | — | |||||||||||||||||
Total | $ | 8,508 | $ | 1,553 | $ | 5,528 | $ | 15,589 | $ | 1,852,961 | $ | 1,868,550 | $ | 329 | ||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Commercial and industrial | $ | 808 | $ | 201 | $ | 1,268 | $ | 2,277 | $ | 508,462 | $ | 510,739 | $ | 421 | ||||||||||
Construction and development, excluding undeveloped land | 429 | — | 26 | 455 | 99,264 | 99,719 | — | |||||||||||||||||
Undeveloped land | — | — | 7,340 | 7,340 | 22,531 | 29,871 | — | |||||||||||||||||
Real estate mortgage | 4,529 | 1,180 | 7,062 | 12,771 | 1,034,052 | 1,046,823 | 16 | |||||||||||||||||
Consumer | 110 | — | — | 110 | 34,088 | 34,198 | — | |||||||||||||||||
Total | $ | 5,876 | $ | 1,381 | $ | 15,696 | $ | 22,953 | $ | 1,698,397 | $ | 1,721,350 | $ | 437 | ||||||||||
Schedule of credit risk profile by internally assigned grade | ||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||
and | ||||||||||||||||||||||||
development, | ||||||||||||||||||||||||
excluding | ||||||||||||||||||||||||
Commercial | undeveloped | Undeveloped | Real estate | |||||||||||||||||||||
(in thousands) | and industrial | land | land | mortgage | Consumer | Total | ||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||
Grade | ||||||||||||||||||||||||
Pass | $ | 553,739 | $ | 88,389 | $ | 20,578 | $ | 1,114,116 | $ | 38,533 | $ | 1,815,355 | ||||||||||||
Special mention | 6,215 | 4,867 | 530 | 13,112 | 76 | 24,800 | ||||||||||||||||||
Substandard | 11,717 | 1,720 | 160 | 2,918 | — | 16,515 | ||||||||||||||||||
Substandard non-performing | 6,240 | 757 | 1,000 | 3,807 | 76 | 11,880 | ||||||||||||||||||
Doubtful | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 577,911 | $ | 95,733 | $ | 22,268 | $ | 1,133,953 | $ | 38,685 | $ | 1,868,550 | ||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Grade | ||||||||||||||||||||||||
Pass | $ | 486,140 | $ | 87,896 | $ | 22,366 | $ | 1,014,216 | $ | 34,028 | $ | 1,644,646 | ||||||||||||
Special mention | 12,983 | 7,091 | — | 17,916 | 86 | 38,076 | ||||||||||||||||||
Substandard | 3,616 | 4,706 | 165 | 7,197 | — | 15,684 | ||||||||||||||||||
Substandard non-performing | 8,000 | 26 | 7,340 | 7,494 | 84 | 22,944 | ||||||||||||||||||
Doubtful | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 510,739 | $ | 99,719 | $ | 29,871 | $ | 1,046,823 | $ | 34,198 | $ | 1,721,350 | ||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Premises and Equipment | ||||||||
Summary of premises and equipment | ||||||||
December 31, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Land | $ | 6,733 | $ | 6,803 | ||||
Buildings and improvements | 43,818 | 43,259 | ||||||
Furniture and equipment | 18,426 | 17,149 | ||||||
Construction in progress | 305 | 231 | ||||||
69,282 | 67,442 | |||||||
Accumulated depreciation and amortization | (30,194 | ) | (27,629 | ) | ||||
Total premises and equipment | $ | 39,088 | $ | 39,813 | ||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Assets. | ||||||||
Summary of major components of other assets | ||||||||
(in thousands) | 2014 | 2013 | ||||||
Net deferred tax asset | $ | 12,377 | $ | 14,554 | ||||
Cash surrender value of life insurance other than BOLI | 12,019 | 10,949 | ||||||
Other real estate owned and other foreclosed property | 5,977 | 5,592 | ||||||
Investments in tax credit related ventures | 5,090 | 5,506 | ||||||
Other short term receivables | 2,149 | 1,624 | ||||||
Core deposit intangible | 1,820 | 2,151 | ||||||
Mortgage servicing rights (MSRs) | 1,131 | 1,832 | ||||||
Goodwill | 682 | 682 | ||||||
Investment in bank in expansion market | 520 | 520 | ||||||
Other | 5,907 | 8,414 | ||||||
Total | $ | 47,672 | $ | 51,824 | ||||
Schedule of changes in net carrying amount of MSRs | ||||||||
(in thousands) | 2014 | 2013 | ||||||
Balance at January 1 | $ | 1,832 | $ | 2,088 | ||||
Originations | 258 | 776 | ||||||
Amortization | (959 | ) | (1,032 | ) | ||||
Balance at December 31 | $ | 1,131 | $ | 1,832 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Taxes | |||||||||||
Schedule of components of income tax expense (benefit) from operations | |||||||||||
Year ended December 31, | |||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||
Current tax expense | |||||||||||
Federal | $ | 14,958 | $ | 10,322 | $ | 11,895 | |||||
State | 641 | 336 | 672 | ||||||||
Total current tax expense | 15,599 | 10,658 | 12,567 | ||||||||
Deferred tax (benefit) expense | |||||||||||
Federal | (385 | ) | 450 | (2,800 | ) | ||||||
State | 26 | 120 | (133 | ) | |||||||
Total deferred tax benefit | (359 | ) | 570 | (2,933 | ) | ||||||
Change in valuation allowance | 41 | — | — | ||||||||
Total income tax expense | $ | 15,281 | $ | 11,228 | $ | 9,634 | |||||
Schedule of components of income tax (benefit) expense recorded directly to stockholders' equity | |||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||
Unrealized gain (loss) on securities available for sale | $ | 2,383 | $ | (4,234 | ) | $ | (24 | ) | |||
Reclassification adjustment for securities losses realized in income | 3 | 2 | — | ||||||||
Unrealized gain on derivatives | — | 8 | — | ||||||||
Compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes | (378 | ) | (265 | ) | (83 | ) | |||||
Minimum pension liability adjustment | (69 | ) | 111 | 2 | |||||||
Total income tax (benefit) expense recorded directly to stockholders’ equity | $ | 1,939 | $ | (4,378 | ) | $ | (105 | ) | |||
Schedule of analysis of the difference between the statutory and effective tax rates from operations | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
U.S. federal income tax rate | 35 | % | 35 | % | 35 | % | |||||
Tax exempt interest income | (1.5 | ) | (2.1 | ) | (3.8 | ) | |||||
Tax credits | (3.1 | ) | (2.5 | ) | (2.2 | ) | |||||
Cash surrender value of life insurance | (1.4 | ) | (2.0 | ) | (1.9 | ) | |||||
State income taxes | 0.9 | 0.8 | 1 | ||||||||
Nontaxable gain on acquisition | — | (0.4 | ) | — | |||||||
Nondeductible acquisition costs | — | 0.2 | — | ||||||||
Other, net | 0.6 | 0.2 | (0.9 | ) | |||||||
30.5 | % | 29.2 | % | 27.2 | % | ||||||
Schedule of effects of temporary differences that gave rise to significant portions of deferred tax assets and deferred tax liabilities | |||||||||||
December 31, | |||||||||||
(In thousands) | 2014 | 2013 | |||||||||
Allowance for loan loss | $ | 8,929 | $ | 10,236 | |||||||
Deferred compensation | 5,442 | 4,778 | |||||||||
Accrued expenses | 1,854 | 1,604 | |||||||||
Investments in partnerships | 1,031 | 826 | |||||||||
Write-downs and costs associated with other real estate owned | 491 | 749 | |||||||||
Loans | 678 | 564 | |||||||||
Other-than-temporary impairment | 310 | 311 | |||||||||
Other assets | 219 | 299 | |||||||||
Total deferred tax assets | 18,954 | 19,367 | |||||||||
Securities | 2,594 | 354 | |||||||||
Property and equipment | 1,250 | 1,377 | |||||||||
Loan costs | 756 | 702 | |||||||||
Prepayment penalty on modification of FHLB advances | 76 | 156 | |||||||||
Mortgage servicing rights | 356 | 608 | |||||||||
Leases | 422 | 428 | |||||||||
Core deposit intangible | 652 | 772 | |||||||||
Other liabilities | 430 | 416 | |||||||||
Total deferred tax liabilities | 6,536 | 4,813 | |||||||||
Valuation allowance | 41 | — | |||||||||
Net deferred tax asset | $ | 12,377 | $ | 14,554 | |||||||
Schedule of reconciliation of the amount of unrecognized tax benefits | |||||||||||
(In thousands) | 2014 | 2013 | |||||||||
Balance as of January 1 | $ | 40 | $ | 70 | |||||||
Increases - current year tax positions | 11 | 11 | |||||||||
Lapse of statute of limitations | (11 | ) | (41 | ) | |||||||
Balance as of December 31 | $ | 40 | $ | 40 | |||||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deposits | ||||||||
Schedule of composition of interest bearing deposits | ||||||||
December 31, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Interest bearing demand | $ | 502,801 | $ | 462,291 | ||||
Savings | 111,624 | 101,551 | ||||||
Money market | 673,925 | 643,787 | ||||||
Time deposits greater than $250,000 | 41,137 | 40,604 | ||||||
Other time deposits | 270,193 | 309,354 | ||||||
Total interest bearing deposits | $ | 1,599,680 | $ | 1,557,587 | ||||
Schedule of maturities of time deposits | ||||||||
(In thousands) | ||||||||
2014 | $ | 211,341 | ||||||
2015 | 67,473 | |||||||
2016 | 17,805 | |||||||
2017 | 7,811 | |||||||
2018 and thereafter | 6,900 | |||||||
$ | 311,330 | |||||||
Securities_Sold_Under_Agreemen1
Securities Sold Under Agreements to Repurchase and Other Short-Term Borrowings (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Securities Sold under Agreements to Repurchase and Other Short-Term Borrowings | ||||||||
Summary of information concerning securities sold under agreements to repurchase | ||||||||
December 31, | ||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Average balance during the year | $ | 61,748 | $ | 60,737 | ||||
Average interest rate during the year | 0.23 | % | 0.24 | % | ||||
Maximum month-end balance during the year | $ | 69,559 | $ | 68,383 | ||||
Advances_from_the_Federal_Home1
Advances from the Federal Home Loan Bank (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Federal Home Loan Bank Advances | ||||||||||||
Summary of the contractual maturities and average effective rates of outstanding advances | ||||||||||||
(In thousands) | December 31, 2014 | December 31, 2013 | ||||||||||
Year | Advance | Fixed Rate | Advance | Fixed Rate | ||||||||
2014 | $ | — | — | $ | 10,000 | 0.21 | % | |||||
2015 | 30,000 | 2.30 | % | 20,000 | 3.34 | % | ||||||
2020 | 1,885 | 2.23 | % | 1,931 | 2.23 | % | ||||||
2021 | 497 | 2.12 | % | 564 | 2.12 | % | ||||||
2024 | 3,064 | 2.36 | % | 408 | 2.40 | % | ||||||
2028 | 1,386 | 1.47 | % | 1,426 | 1.46 | % | ||||||
Total | $ | 36,832 | 2.27 | % | $ | 34,329 | 2.26 | % | ||||
Net_Income_per_Share_and_Commo1
Net Income per Share and Common Stock Dividends (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Net Income Per Share | |||||||||||
Schedule of the numerators (net income) and denominators (average shares outstanding) for the basic and diluted net income per share computations | |||||||||||
(In thousands, except per share data) | 2014 | 2013 | 2012 | ||||||||
Net income, basic and diluted | $ | 34,822 | $ | 27,170 | $ | 25,801 | |||||
Average shares outstanding, basic | 14,559 | 14,223 | 13,875 | ||||||||
Effect of dilutive securities | 203 | 130 | 57 | ||||||||
Average shares outstanding including dilutive securities | 14,762 | 14,353 | 13,932 | ||||||||
Net income per share, basic | $ | 2.39 | $ | 1.91 | $ | 1.86 | |||||
Net income per share, diluted | $ | 2.36 | $ | 1.89 | $ | 1.85 | |||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Employee Benefit Plans | |||||||||||
Schedule of components of the net periodic benefit cost of the defined benefit plan | |||||||||||
Year ended December 31, | |||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||
Components of net periodic benefit cost: | |||||||||||
Service cost | $ | — | $ | — | $ | — | |||||
Interest cost | 90 | 83 | 86 | ||||||||
Expected return on plan assets | — | — | — | ||||||||
Amortization of prior service cost | — | — | — | ||||||||
Amortization of net losses | 36 | 60 | 56 | ||||||||
Net periodic benefit cost | $ | 126 | $ | 143 | $ | 142 | |||||
Schedule of benefits expected to be paid in each year | |||||||||||
(In thousands) | Benefits | ||||||||||
2015 | $ | 84 | |||||||||
2016 | 84 | ||||||||||
2017 | 84 | ||||||||||
2018 | 84 | ||||||||||
2019 | 84 | ||||||||||
Beyond 2019 | 3,362 | ||||||||||
Total future payments | $ | 3,782 | |||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||
Schedule of stock-based compensation expense, within salaries and employee benefits | ||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||||||
Stock-based compensation expense before income taxes | $ | 2,016 | $ | 1,940 | $ | 1,481 | ||||||||||||
Less: deferred tax benefit | (706 | ) | (679 | ) | (518 | ) | ||||||||||||
Reduction of net income | $ | 1,310 | $ | 1,261 | $ | 963 | ||||||||||||
Schedule of assumptions used in SAR valuations | ||||||||||||||||||
Assumptions | 2014 | 2013 | 2012 | |||||||||||||||
Dividend yield | 2.94 | % | 2.80 | % | 2.52 | % | ||||||||||||
Expected volatility | 23.66 | % | 22.54 | % | 22.04 | % | ||||||||||||
Risk free interest rate | 2.22 | % | 1.26 | % | 1.44 | % | ||||||||||||
Expected life of SARs | 7.0 years | 6.6 years | 7.6 years | |||||||||||||||
Schedule of stock option and SARs activity and related information | ||||||||||||||||||
Weighted | ||||||||||||||||||
Weighted | Aggregate | Weighted | average | |||||||||||||||
Options | average | intrinsic | average | remaining | ||||||||||||||
and SARs | Exercise | exercise | value | fair | contractual | |||||||||||||
(in thousands) | price | price | (in thousands) | value | life (in years) | |||||||||||||
At December 31, 2013 | ||||||||||||||||||
Vested and exercisable | 579 | $ | 20.25-26.83 | $ | 23.83 | $ | 4,685 | $ | 5.43 | 3.4 | ||||||||
Unvested | 218 | 21.03-24.87 | 22.7 | 2,011 | 4.36 | 7.7 | ||||||||||||
Total outstanding | 797 | 20.25-26.83 | 23.52 | 6,696 | 5.14 | 4.6 | ||||||||||||
Activity during 2014 | ||||||||||||||||||
Granted | 62 | 29.05-29.16 | 29.05 | 267 | 5.37 | |||||||||||||
Exercised | (135 | ) | 20.25-26.83 | 23.03 | 1,083 | 5.27 | ||||||||||||
Forfeited | (6 | ) | 21.03-23.76 | 22.78 | 66 | 4.43 | ||||||||||||
At December 31, 2014 | ||||||||||||||||||
Vested and exercisable | 524 | 24.02-26.83 | 23.84 | 4,981 | 5.35 | 3.5 | ||||||||||||
Unvested | 194 | 21.03-29.16 | 24.83 | 1,650 | 4.57 | 7.7 | ||||||||||||
Total outstanding | 718 | 21.03-29.16 | 24.11 | $ | 6,631 | 5.14 | 4.6 | |||||||||||
Vested year-to-date | 80 | $ | 21.03-24.87 | $ | 22.49 | $ | 872 | $ | 4.63 | |||||||||
Schedule of options and SARs outstanding | Options and SARs outstanding, stated in thousands, at December 31, 2014 were as follows: | |||||||||||||||||
Expiration | Number of | Options and | Weighted average | |||||||||||||||
options and | SARs | exercise price of | ||||||||||||||||
SARs | exercisable | options and SARs | ||||||||||||||||
outstanding | outstanding | |||||||||||||||||
2016 | 117 | 117 | $ | 24.07 | ||||||||||||||
2017 | 117 | 117 | 26.81 | |||||||||||||||
2018 | 70 | 70 | 23.37 | |||||||||||||||
2019 | 72 | 72 | 22.14 | |||||||||||||||
2020 | 75 | 61 | 21.03 | |||||||||||||||
2021 | 59 | 35 | 23.78 | |||||||||||||||
2022 | 92 | 37 | 22.87 | |||||||||||||||
2023 | 54 | 15 | 22.89 | |||||||||||||||
2024 | 62 | — | 29.05 | |||||||||||||||
718 | 524 | $ | 24.11 | |||||||||||||||
Schedule of restricted common stock activity | ||||||||||||||||||
Grant date | ||||||||||||||||||
weighted- | ||||||||||||||||||
Number | average cost | |||||||||||||||||
Unvested at December 31, 2011 | 95,007 | $ | 22.49 | |||||||||||||||
Shares awarded | 57,156 | 22.71 | ||||||||||||||||
Restrictions lapsed and shares released to employees/directors | (30,782 | ) | 22.66 | |||||||||||||||
Shares forfeited | (7,471 | ) | 22.59 | |||||||||||||||
Unvested at December 31, 2012 | 113,910 | $ | 22.55 | |||||||||||||||
Shares awarded | 55,275 | 22.93 | ||||||||||||||||
Restrictions lapsed and shares released to employees/directors | (39,909 | ) | 22.29 | |||||||||||||||
Shares forfeited | (4,720 | ) | 23.45 | |||||||||||||||
Unvested at December 31, 2013 | 124,556 | $ | 22.77 | |||||||||||||||
Shares awarded | 39,730 | 29.12 | ||||||||||||||||
Restrictions lapsed and shares released to employees/directors | (44,724 | ) | 22.69 | |||||||||||||||
Shares forfeited | (5,469 | ) | 23.77 | |||||||||||||||
Unvested at December 31, 2014 | 114,093 | $ | 24.95 | |||||||||||||||
Schedule of PSU grants | ||||||||||||||||||
Fair | ||||||||||||||||||
Vesting | value at | Expected | ||||||||||||||||
Grant | period | grant | shares to | |||||||||||||||
year | in years | date | be awarded | |||||||||||||||
2012 | 3 | $ | 20.57 | 28,079 | ||||||||||||||
2013 | 3 | 20.38 | 36,792 | |||||||||||||||
2014 | 3 | 26.42 | 25,012 | |||||||||||||||
Schedule of number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance | The following table provides detail of the number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance under all the Bancorp’s equity compensation plans as of December 31, 2014. | |||||||||||||||||
Plan category (shares in thousands) | Number of shares | Weighted | Shares | |||||||||||||||
to be issued upon | average | available for | ||||||||||||||||
exercise | exercise price | future | ||||||||||||||||
issuance (a) | ||||||||||||||||||
Equity compensation plans approved by security holders: | ||||||||||||||||||
Stock options | 234 | $ | 25.44 | 455 | ||||||||||||||
Stock appreciation rights (SARs) | (b) | (b) | (a) | |||||||||||||||
Restricted common stock | 114 | N/A | (a) | |||||||||||||||
Performance stock units | (c) | N/A | (a) | |||||||||||||||
Restricted stock units | 4 | N/A | (a) | |||||||||||||||
Total shares | 352 | 455 | ||||||||||||||||
(a) | Under the 2005 Stock Incentive plan, shares of stock are authorized for issuance as incentive and nonqualified stock options, SARs, restricted stock, and restricted stock units | |||||||||||||||||
(b) | At December 31, 2014, approximately 484,000 SARs were outstanding at a weighted average grant price of $23.46. The number of shares to be issued upon exercise will be determined based on the difference between the grant price and the market price at the date of exercise. | |||||||||||||||||
(c) | The number of shares to be issued is dependend upon Bancorp achieving certain predefined performance targets and ranges from zero shares to approximately 108,000 shares. | |||||||||||||||||
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingent Liabilities | |||||
Schedule of future minimum lease commitments under non-cancelable operating leases | |||||
Year | Total amount | ||||
2015 | $ | 1,457,000 | |||
2016 | 1,464,000 | ||||
2017 | 1,419,000 | ||||
2018 | 1,002,000 | ||||
2019 | 798,000 | ||||
Thereafter | 1,644,000 | ||||
Total | $ | 7,784,000 | |||
Assets_and_Liabilities_Measure1
Assets and Liabilities Measured and Reported at Fair Value (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Assets and Liabilities Measured and Reported at Fair Value | |||||||||||||||||
Schedule of the carrying values of assets and liabilities measured at fair value on a recurring basis | |||||||||||||||||
Fair value at December 31, 2014 | |||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | |||||||||||||||||
Investment securities available-for-sale | |||||||||||||||||
U.S. Treasury and other U.S. government obligations | $ | 70,000 | $ | 70,000 | $ | — | $ | — | |||||||||
Government sponsored enterprise obligations | 204,986 | — | 204,986 | — | |||||||||||||
Mortgage-backed securities - government agencies | 174,270 | — | 174,270 | — | |||||||||||||
Obligations of states and political subdivisions | 62,834 | — | 62,834 | — | |||||||||||||
Corporate equity securities | 966 | 966 | — | — | |||||||||||||
Total investment securities available-for-sale | 513,056 | 70,966 | 442,090 | — | |||||||||||||
Interest rate swaps | 425 | — | 425 | — | |||||||||||||
Total assets | $ | 513,481 | $ | 70,966 | $ | 442,515 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Interest rate swaps | $ | 401 | $ | — | $ | 401 | $ | — | |||||||||
Fair value at December 31, 2013 | |||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | |||||||||||||||||
Investment securities available-for-sale | |||||||||||||||||
U.S. Treasury and other U.S. government obligations | $ | 110,000 | $ | 110,000 | $ | — | $ | — | |||||||||
Government sponsored enterprise obligations | 137,845 | — | 137,845 | — | |||||||||||||
Mortgage-backed securities - government agencies | 172,693 | — | 172,693 | — | |||||||||||||
Obligations of states and political subdivisions | 69,493 | — | 69,493 | — | |||||||||||||
Total investment securities available for sale | 490,031 | 110,000 | 380,031 | — | |||||||||||||
Interest rate swaps | 299 | — | 299 | — | |||||||||||||
Total assets | $ | 490,330 | $ | 110,000 | $ | 380,330 | $ | — | |||||||||
Liabilities | |||||||||||||||||
Interest rate swaps | $ | 275 | $ | — | $ | 275 | $ | — | |||||||||
Schedule of the carrying values of assets measured at fair value on a non-recurring basis | |||||||||||||||||
Fair value at December 31, 2014 | |||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | Total losses | ||||||||||||
Impaired loans | $ | 6,449 | $ | — | $ | — | $ | 6,449 | $ | (405 | ) | ||||||
Other real estate owned | 5,032 | — | — | 5,032 | (42 | ) | |||||||||||
Total | $ | 11,481 | $ | — | $ | — | $ | 11,481 | $ | (447 | ) | ||||||
Fair value at December 31, 2013 | |||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | Total losses | ||||||||||||
Impaired loans | $ | 9,128 | $ | — | $ | — | $ | 9,128 | $ | (992 | ) | ||||||
Other real estate owned | 3,774 | — | — | 3,774 | (816 | ) | |||||||||||
Total | $ | 12,902 | $ | — | $ | — | $ | 12,902 | $ | (1,808 | ) | ||||||
Schedule of unobservable inputs in fair value measurements | |||||||||||||||||
Significant | Weighted | ||||||||||||||||
Carrying | Valuation | unobservable | average of | ||||||||||||||
(Dollars in thousands) | amount | technique | input | input | |||||||||||||
Impaired loans collateral dependent | 1,945 | Appraisal | Appraisal discounts (%) | 7.1 | % | ||||||||||||
Impaired loans cash flow dependent | 4,504 | Discounted cash flow | Discount rate (%) | 5.3 | % | ||||||||||||
Other real estate owned | 5,032 | Appraisal | Appraisal discounts (%) | 14.4 | % | ||||||||||||
Disclosure_of_Financial_Instru1
Disclosure of Financial Instruments Not Reported at Fair Value (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Financial Instruments Not Reported at Fair Value | |||||||||||||||||
Schedule of carrying amounts, estimated fair values, and placement in the fair value hierarchy of Bancorp's financial instruments | |||||||||||||||||
Carrying | |||||||||||||||||
(in thousands) | amount | Fair value | Level 1 | Level 2 | Level 3 | ||||||||||||
December 31, 2014 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and short-term investments | $ | 74,241 | $ | 74,241 | $ | 74,241 | $ | — | $ | — | |||||||
Mortgage loans held for sale | 3,747 | 3,876 | — | 3,876 | — | ||||||||||||
Federal Home Loan Bank stock and other securities | 6,347 | 6,347 | — | 6,347 | — | ||||||||||||
Loans, net | 1,843,630 | 1,863,568 | — | — | 1,863,568 | ||||||||||||
Accrued interest receivable | 5,980 | 5,980 | 5,980 | — | — | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ | 2,123,627 | $ | 2,124,904 | $ | — | $ | 2,124,904 | $ | — | |||||||
Short-term borrowings | 116,949 | 116,949 | — | 116,949 | — | ||||||||||||
FHLB Advances | 36,832 | 37,714 | — | 37,714 | — | ||||||||||||
Accrued interest payable | 131 | 131 | 131 | — | — | ||||||||||||
December 31, 2013 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and short-term investments | $ | 70,770 | $ | 70,770 | $ | 70,770 | $ | — | $ | — | |||||||
Mortgage loans held for sale | 1,757 | 1,817 | — | 1,817 | — | ||||||||||||
Federal Home Loan Bank stock and other securities | 7,347 | 7,347 | — | 7,347 | — | ||||||||||||
Loans, net | 1,692,828 | 1,703,291 | — | — | 1,703,291 | ||||||||||||
Accrued interest receivable | 5,712 | 5,712 | 5,712 | — | — | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ | 1,980,937 | $ | 1,983,029 | $ | — | $ | 1,983,029 | $ | — | |||||||
Short-term borrowings | 117,910 | 117,910 | — | 117,910 | — | ||||||||||||
FHLB Advances | 34,329 | 35,166 | — | 35,166 | — | ||||||||||||
Accrued interest payable | 128 | 128 | 128 | — | — | ||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Undesignated | |||||||||||||||
Derivative financial instruments | |||||||||||||||
Schedule of outstanding interest rate swap contracts | |||||||||||||||
Receiving | Paying | ||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||
(dollar amounts in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Notional amount | $ | 7,217 | $ | 5,159 | $ | 7,217 | $ | 5,159 | |||||||
Weighted average maturity (years) | 6.8 | 6.4 | 6.8 | 6.4 | |||||||||||
Fair value | $ | (401 | ) | $ | (275 | ) | $ | 401 | $ | 275 | |||||
Designated as hedges | Cash flow hedges | |||||||||||||||
Derivative financial instruments | |||||||||||||||
Schedule of outstanding interest rate swap contracts | |||||||||||||||
(dollars in thousands) | |||||||||||||||
Notional | Maturity | Receive (variable) | Pay fixed | Fair value | Fair value | ||||||||||
amount | date | index | swap rate | December 31, 2014 | December 31, 2013 | ||||||||||
$ | 10,000 | 12/6/16 | US$3 Month LIBOR | 0.715 | % | $ | 24 | $ | 24 | ||||||
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Regulatory Matters | |||||||||||||||||
Schedule of the risk based capital amounts and ratios | |||||||||||||||||
Actual | Minimum for adequately | Minimum for well | |||||||||||||||
capitalized | capitalized | ||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||
December 31, 2014 | |||||||||||||||||
Total risk-based capital (1) | |||||||||||||||||
Consolidated | $ | 280,228 | 13.86 | % | $ | 161,748 | 8.00 | % | NA | NA | |||||||
Bank | 274,345 | 13.59 | % | 161,498 | 8.00 | % | $ | 201,873 | 10.00 | % | |||||||
Tier I risk-based capital (1) | |||||||||||||||||
Consolidated | $ | 255,308 | 12.63 | % | $ | 80,858 | 4.00 | % | NA | NA | |||||||
Bank | 249,425 | 12.36 | % | 80,720 | 4.00 | % | $ | 121,080 | 6.00 | % | |||||||
Leverage (2) | |||||||||||||||||
Consolidated | $ | 255,308 | 10.26 | % | $ | 74,651 | 3.00 | % | NA | NA | |||||||
Bank | 249,425 | 10.04 | % | 74,529 | 3.00 | % | $ | 124,216 | 5.00 | % | |||||||
December 31, 2013 | |||||||||||||||||
Total risk-based capital (1) | |||||||||||||||||
Consolidated | $ | 252,171 | 13.54 | % | $ | 148,993 | 8.00 | % | NA | NA | |||||||
Bank | 239,577 | 12.90 | % | 148,575 | 8.00 | % | $ | 185,719 | 10.00 | % | |||||||
Tier I risk-based capital (1) | |||||||||||||||||
Consolidated | $ | 228,827 | 12.29 | % | $ | 74,476 | 4.00 | % | NA | NA | |||||||
Bank | 219,299 | 11.65 | % | 75,296 | 4.00 | % | $ | 112,944 | 6.00 | % | |||||||
Leverage (2) | |||||||||||||||||
Consolidated | $ | 228,827 | 9.75 | % | $ | 70,408 | 3.00 | % | NA | NA | |||||||
Bank | 219,299 | 9.24 | % | 71,201 | 3.00 | % | $ | 118,668 | 5.00 | % | |||||||
-1 | Ratio is computed in relation to risk-weighted assets. | ||||||||||||||||
-2 | Ratio is computed in relation to average assets. | ||||||||||||||||
NA — Not applicable. Regulatory framework does not define well capitalized for holding companies. | |||||||||||||||||
SY_Bancorp_Inc_parent_company_1
S.Y. Bancorp, Inc. (parent company only) (Tables) (S.Y. Bancorp, Inc.) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
S.Y. Bancorp, Inc. | |||||||||||
Condensed financial information of parent company only | |||||||||||
Schedule of condensed balance sheet | |||||||||||
December 31, | |||||||||||
(In thousands) | 2014 | 2013 | |||||||||
Assets | |||||||||||
Cash on deposit with subsidiary bank | $ | 2,926 | $ | 7,453 | |||||||
Investment in and receivable from subsidiaries | 254,011 | 216,916 | |||||||||
Other assets | 2,981 | 5,234 | |||||||||
Total assets | $ | 259,918 | $ | 229,603 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Other liabilities | $ | 23 | $ | 159 | |||||||
Total stockholders’ equity | 259,895 | 229,444 | |||||||||
Total liabilities and stockholders’ equity | $ | 259,918 | $ | 229,603 | |||||||
Schedule of condensed statement of income | |||||||||||
Years ended December 31, | |||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||
Income - dividends and interest from subsidiaries | $ | 3,300 | $ | 30,090 | $ | 10,090 | |||||
Income - interest income from securities | — | 27 | 80 | ||||||||
Other income | 183 | 174 | 637 | ||||||||
Expenses | 2,472 | 7,260 | 5,130 | ||||||||
Income before income taxes and equity in undistributed net income of subsidiary | 1,011 | 23,031 | 5,677 | ||||||||
Income tax benefit | (1,018 | ) | (2,583 | ) | (1,674 | ) | |||||
Income before equity in undistributed net income of subsidiary | 2,029 | 25,614 | 7,351 | ||||||||
Equity in undistributed net income of subsidiary | 32,793 | 1,556 | 18,450 | ||||||||
Net income | $ | 34,822 | $ | 27,170 | $ | 25,801 | |||||
Schedule of condensed statement of cash flows | |||||||||||
Years ended December 31 | |||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||
Operating activities | |||||||||||
Net income | $ | 34,822 | $ | 27,170 | $ | 25,801 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed net income of subsidiaries | (32,793 | ) | (1,556 | ) | (18,450 | ) | |||||
Decrease (increase) in receivable from subsidiaries | 2,514 | (21,896 | ) | 50 | |||||||
Stock compensation expense | 2,016 | 1,940 | 1,481 | ||||||||
Excess tax benefits from share- based compensation arrangements | (378 | ) | (265 | ) | (83 | ) | |||||
Depreciation, amortization and accretion, net | 45 | 1,396 | — | ||||||||
(Increase) decrease in other assets | (179 | ) | 4,453 | 1,963 | |||||||
Increase in other liabilities | 115 | 545 | 28 | ||||||||
Net cash provided by operating activities | 6,162 | 11,787 | 10,790 | ||||||||
Investing activities | |||||||||||
Proceeds from maturities of securities available for sale | — | 1,000 | — | ||||||||
Cash for acquisition, net of cash acquired | — | 8,963 | — | ||||||||
Net cash provided by investing activities | — | 9,963 | — | ||||||||
Financing activities | |||||||||||
Repayments of subordinated debentures | — | (30,900 | ) | — | |||||||
Proceeds from stock options | 2,473 | 2,435 | 961 | ||||||||
Excess tax benefit from share-based compensation arrangements | 378 | 265 | 83 | ||||||||
Common stock repurchases | (616 | ) | (331 | ) | (205 | ) | |||||
Cash dividends paid | (12,924 | ) | (11,670 | ) | (10,691 | ) | |||||
Net cash used in financing activities | (10,689 | ) | (40,201 | ) | (9,852 | ) | |||||
Net (decrease) increase in cash | (4,527 | ) | (18,451 | ) | 938 | ||||||
Cash at beginning of year | 7,453 | 25,904 | 24,966 | ||||||||
Cash at end of year | $ | 2,926 | $ | 7,453 | $ | 25,904 | |||||
Segments_Tables
Segments (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Segments | |||||||||||
Summary of selected financial information by business segment | |||||||||||
Investment | |||||||||||
Commercial | management | ||||||||||
(In thousands) | banking | and trust | Total | ||||||||
Year ended December 31, 2014 | |||||||||||
Net interest income | $ | 83,570 | $ | 187 | $ | 83,757 | |||||
Credit for loan losses | (400 | ) | — | (400 | ) | ||||||
Investment management and trust services | — | 18,212 | 18,212 | ||||||||
All other non-interest income | 20,913 | 30 | 20,943 | ||||||||
Non-interest expense | 62,523 | 10,686 | 73,209 | ||||||||
Income before income taxes | 42,360 | 7,743 | 50,103 | ||||||||
Tax expense | 12,527 | 2,754 | 15,281 | ||||||||
Net income | $ | 29,833 | $ | 4,989 | $ | 34,822 | |||||
Year ended December 31, 2013 | |||||||||||
Net interest income | $ | 77,144 | $ | 154 | $ | 77,298 | |||||
Provision for loan losses | 6,550 | — | 6,550 | ||||||||
Investment management and trust services | — | 16,287 | 16,287 | ||||||||
All other non-interest income | 22,654 | 61 | 22,715 | ||||||||
Non-interest expense | 61,891 | 9,461 | 71,352 | ||||||||
Income before income taxes | 31,357 | 7,041 | 38,398 | ||||||||
Tax expense | 8,740 | 2,488 | 11,228 | ||||||||
Net income | $ | 22,617 | $ | 4,553 | $ | 27,170 | |||||
Year ended December 31, 2012 | |||||||||||
Net interest income | $ | 73,800 | $ | 150 | $ | 73,950 | |||||
Provision for loan losses | 11,500 | — | 11,500 | ||||||||
Investment management and trust services | — | 14,278 | 14,278 | ||||||||
All other non-interest income | 24,110 | 69 | 24,179 | ||||||||
Non-interest expense | 57,323 | 8,149 | 65,472 | ||||||||
Income before income taxes | 29,087 | 6,348 | 35,435 | ||||||||
Tax expense | 7,412 | 2,222 | 9,634 | ||||||||
Net income | $ | 21,675 | $ | 4,126 | $ | 25,801 | |||||
Quarterly_Operating_Results_un1
Quarterly Operating Results (unaudited) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Quarterly Operating Results (unaudited) | ||||||||||||||
Summary of quarterly operating results (unaudited) | ||||||||||||||
2014 | ||||||||||||||
(In thousands, except per share data) | 4th quarter | 3rd quarter | 2nd quarter | 1st quarter | ||||||||||
Interest income | $ | 22,778 | $ | 22,692 | $ | 22,013 | $ | 21,604 | ||||||
Interest expense | 1,267 | 1,329 | 1,358 | 1,376 | ||||||||||
Net interest income | 21,511 | 21,363 | 20,655 | 20,228 | ||||||||||
(Credit) provision for loan losses | — | (2,100 | ) | 1,350 | 350 | |||||||||
Net interest income after provision | 21,511 | 23,463 | 19,305 | 19,878 | ||||||||||
Non-interest income | 9,773 | 9,850 | 10,057 | 9,475 | ||||||||||
Non-interest expenses | 19,255 | 18,709 | 17,701 | 17,544 | ||||||||||
Income before income taxes | 12,029 | 14,604 | 11,661 | 11,809 | ||||||||||
Income tax expense | 3,307 | 4,715 | 3,627 | 3,632 | ||||||||||
Net income | $ | 8,722 | $ | 9,889 | $ | 8,034 | $ | 8,177 | ||||||
Basic earnings per share | $ | 0.6 | $ | 0.68 | $ | 0.55 | $ | 0.56 | ||||||
Diluted earnings per share | 0.59 | 0.67 | 0.55 | 0.56 | ||||||||||
2013 | ||||||||||||||
(In thousands, except per share data) | 4th quarter | 3rd quarter | 2nd quarter | 1st quarter | ||||||||||
Interest income | $ | 22,069 | $ | 22,267 | $ | 21,293 | $ | 20,835 | ||||||
Interest expense | 2,226 | 2,250 | 2,318 | 2,372 | ||||||||||
Net interest income | 19,843 | 20,017 | 18,975 | 18,463 | ||||||||||
Provision for loan losses | 1,575 | 1,325 | 1,325 | 2,325 | ||||||||||
Net interest income after provision | 18,268 | 18,692 | 17,650 | 16,138 | ||||||||||
Non-interest income | 9,811 | 9,652 | 10,311 | 9,228 | ||||||||||
Non-interest expenses | 19,380 | 17,571 | 18,822 | 15,579 | ||||||||||
Income before income taxes | 8,699 | 10,773 | 9,139 | 9,787 | ||||||||||
Income tax expense | 2,386 | 3,091 | 2,732 | 3,019 | ||||||||||
Net income | $ | 6,313 | $ | 7,682 | $ | 6,407 | $ | 6,768 | ||||||
Basic earnings per share | $ | 0.44 | $ | 0.53 | $ | 0.45 | $ | 0.49 | ||||||
Diluted earnings per share | 0.43 | 0.53 | 0.45 | 0.49 | ||||||||||
2012 | ||||||||||||||
4th quarter | 3rd quarter | 2nd quarter | 1st quarter | |||||||||||
Interest income | $ | 22,034 | $ | 21,692 | $ | 21,363 | $ | 21,812 | ||||||
Interest expense | 3,724 | 2,897 | 3,068 | 3,262 | ||||||||||
Net interest income | 18,310 | 18,795 | 18,295 | 18,550 | ||||||||||
Provision for loan losses | 2,475 | 2,475 | 2,475 | 4,075 | ||||||||||
Net interest income after provision | 15,835 | 16,320 | 15,820 | 14,475 | ||||||||||
Non-interest income | 10,127 | 9,795 | 9,290 | 9,245 | ||||||||||
Non-interest expenses | 17,183 | 17,045 | 16,508 | 14,736 | ||||||||||
Income before income taxes | 8,779 | 9,070 | 8,602 | 8,984 | ||||||||||
Income tax expense | 2,265 | 2,388 | 2,499 | 2,482 | ||||||||||
Net income | $ | 6,514 | $ | 6,682 | $ | 6,103 | $ | 6,502 | ||||||
Basic earnings per share | $ | 0.47 | $ | 0.48 | $ | 0.44 | $ | 0.47 | ||||||
Diluted earnings per share | 0.47 | 0.48 | 0.44 | 0.47 | ||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | |||
Cash payments: | |||
Income Taxes Paid, Net | $13,042,000 | $8,350,000 | $10,685,000 |
Interest Paid, Net | 5,327,000 | 9,210,000 | 13,017,000 |
Non-cash transactions: | |||
Real Estate Owned, Transfer to Real Estate Owned | 5,798,000 | 5,246,000 | 4,486,000 |
Other Assets | |||
Impairment charges of goodwill | 0 | ||
Repurchased Shares of Common Stock | |||
Common Stock, No Par Value | $0 | $0 | |
Income Taxes | |||
Valuation allowance for deferred tax assets | 41,000 | 0 | |
Gross amount of unrecognized tax benefits | 40,000 | 40,000 | 70,000 |
Amount accrued for the potential payment of interest and penalties | $2,000 | $2,000 | |
Segment Information | |||
Total number of full service branches | 34 | ||
Number of operating segments | 2 | ||
Minimum | |||
Premises and equipment | |||
Estimated useful lives of the assets | 3 years | ||
Maximum | |||
Premises and equipment | |||
Estimated useful lives of the assets | 40 years |
Restrictions_on_Cash_and_Due_f1
Restrictions on Cash and Due from Banks (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Restrictions on Cash and Due from Banks | ||
Average reserve balance in cash or with the Federal Reserve Bank relating to customer deposits | $1,720,000 | $1,105,000 |
Acquisition_Details
Acquisition (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2014 | Jun. 30, 2013 | |
Identifiable liabilities: | ||||
Net gain resulting from acquisition | $449,000 | |||
Acquisition costs (included in other non-interest expenses in Bancorp's income statement for the nine months ended September 30, 2013) | 1,548,000 | |||
Oldham | ||||
Acquisition | ||||
Percentage of outstanding shares acquired | 100.00% | |||
Amount of loans and leases included in assets acquired | 39,800,000 | |||
Purchase price: | ||||
Cash | 8,297,000 | |||
Equity instruments (531,288 common shares of Bancorp) | 12,198,000 | |||
Total purchase price | 20,495,000 | |||
Common stock converted (in shares) | 531,288 | |||
Identifiable assets: | ||||
Cash and federal funds sold | 17,260,000 | |||
Investment securities | 81,827,000 | |||
Loans | 39,755,000 | |||
Premises and equipment | 4,008,000 | |||
Other assets | 605,000 | |||
Total identifiable assets: | 145,998,000 | |||
Identifiable liabilities: | ||||
Deposits | 120,435,000 | |||
Securities sold under agreement to repurchase | 2,762,000 | |||
Other liabilities | 1,857,000 | |||
Total identifiable liabilities | 125,054,000 | |||
Net gain resulting from acquisition | 449,000 | |||
Acquisition costs (included in other non-interest expenses in Bancorp's income statement for the nine months ended September 30, 2013) | 1,548,000 | |||
Oldham | Core deposit | ||||
Identifiable assets: | ||||
Core deposit intangible | $2,543,000 | $1,800,000 | $2,500,000 |
Acquisition_Details_2
Acquisition (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Apr. 30, 2013 |
Acquisition related expenses | ||
Total | $1,548 | |
Oldham | ||
Acquired loans | ||
Contractually required principal and interest at acquisition | 41,048 | |
Contractual cash flows not expected to be collected | -1,095 | |
Expected cash flows at acquisition | 39,953 | |
Interest component of expected cash flows | -198 | |
Basis in acquired loans at acquisition - estimated fair value | 39,755 | |
Acquisition related expenses | ||
Total | 1,548 | |
Oldham | Impaired loans | ||
Acquired loans | ||
Contractually required principal and interest at acquisition | 3,285 | |
Contractual cash flows not expected to be collected | -372 | |
Expected cash flows at acquisition | 2,913 | |
Interest component of expected cash flows | -174 | |
Basis in acquired loans at acquisition - estimated fair value | 2,739 | |
Oldham | Acquired non-impaired loans | ||
Acquired loans | ||
Contractually required principal and interest at acquisition | 37,763 | |
Contractual cash flows not expected to be collected | -723 | |
Expected cash flows at acquisition | 37,040 | |
Interest component of expected cash flows | -24 | |
Basis in acquired loans at acquisition - estimated fair value | $37,016 |
Securities_Details
Securities (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Securities available for sale | |||
Securities available for sale, amortized cost | $509,276,000 | $493,066,000 | |
Unrealized gains | 5,829,000 | 4,487,000 | |
Unrealized losses | 2,049,000 | 7,522,000 | |
Total securities available-for-sale, fair value | 513,056,000 | 490,031,000 | |
Securities available-for-sale sold | 7,732,000 | 696,000 | 0 |
Loss on available-for-sale securities sold | 9,000 | 5,000 | |
Held to maturity securities | 0 | 0 | |
U.S. Treasury and other U.S. government obligations | |||
Securities available for sale | |||
Securities available for sale, amortized cost | 70,000,000 | 110,000,000 | |
Total securities available-for-sale, fair value | 70,000,000 | 110,000,000 | |
Government sponsored enterprise obligations | |||
Securities available for sale | |||
Securities available for sale, amortized cost | 203,531,000 | 138,094,000 | |
Unrealized gains | 2,017,000 | 1,623,000 | |
Unrealized losses | 562,000 | 1,872,000 | |
Total securities available-for-sale, fair value | 204,986,000 | 137,845,000 | |
Mortgage-backed securities - government agencies | |||
Securities available for sale | |||
Securities available for sale, amortized cost | 173,573,000 | 176,524,000 | |
Unrealized gains | 2,042,000 | 1,391,000 | |
Unrealized losses | 1,345,000 | 5,222,000 | |
Total securities available-for-sale, fair value | 174,270,000 | 172,693,000 | |
Obligations of states and political subdivisions | |||
Securities available for sale | |||
Securities available for sale, amortized cost | 61,416,000 | 68,448,000 | |
Unrealized gains | 1,560,000 | 1,473,000 | |
Unrealized losses | 142,000 | 428,000 | |
Total securities available-for-sale, fair value | 62,834,000 | 69,493,000 | |
Common stock | |||
Securities available for sale | |||
Securities available for sale, amortized cost | 756,000 | ||
Unrealized gains | 210,000 | ||
Total securities available-for-sale, fair value | $966,000 |
Securities_Details_2
Securities (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
item | item | |
Amortized cost | ||
Due within 1 year | $113,369,000 | |
Due after 1 but within 5 years | 128,738,000 | |
Due after 5 but within 10 years | 25,044,000 | |
Due after 10 years | 67,796,000 | |
Corporate equity securities | 756,000 | |
Mortgage-backed securities - government agencies | 173,573,000 | |
Total securities available for sale | 509,276,000 | |
Fair value | ||
Due within 1 year | 113,589,000 | |
Due after 1 but within 5 years | 130,181,000 | |
Due after 5 but within 10 years | 25,632,000 | |
Due after 10 years | 68,418,000 | |
Corporate equity securities | 966,000 | |
Mortgage-backed securities - government agencies | 174,270,000 | |
Total securities available-for-sale, fair value | 513,056,000 | 490,031,000 |
Carrying value of securities pledged to secure accounts of commercial depositors | $263,100,000 | $243,500,000 |
Number of holdings that consisted of a security issued by a single institution, except the issue made by US government and its agencies | 0 | 0 |
Maximum amount of holdings that consisted of a security issued by a single institution, except the issue made by US government and its agencies (as a percent) | 10.00% | 10.00% |
Securities_Details_3
Securities (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | item | item |
Fair value | ||
Less than 12 months | $53,672 | $211,499 |
12 months or more | 82,470 | 14,316 |
Total | 136,142 | 225,815 |
Unrealized losses | ||
Less than 12 months | 174 | 6,234 |
12 months or more | 1,875 | 1,288 |
Total | 2,049 | 7,522 |
Number of securities | 80 | 155 |
Federal Home Loan Bank stock and other securities | 6,347 | 7,347 |
Government sponsored enterprise obligations | ||
Fair value | ||
Less than 12 months | 36,979 | 76,755 |
12 months or more | 26,848 | 4,353 |
Total | 63,827 | 81,108 |
Unrealized losses | ||
Less than 12 months | 30 | 1,429 |
12 months or more | 532 | 443 |
Total | 562 | 1,872 |
Mortgage-backed securities - government agencies | ||
Fair value | ||
Less than 12 months | 4,038 | 112,652 |
12 months or more | 49,325 | 8,752 |
Total | 53,363 | 121,404 |
Unrealized losses | ||
Less than 12 months | 77 | 4,400 |
12 months or more | 1,268 | 822 |
Total | 1,345 | 5,222 |
Obligations of states and political subdivisions | ||
Fair value | ||
Less than 12 months | 12,655 | 22,092 |
12 months or more | 6,297 | 1,211 |
Total | 18,952 | 23,303 |
Unrealized losses | ||
Less than 12 months | 67 | 405 |
12 months or more | 75 | 23 |
Total | 142 | 428 |
CRA investments | ||
Unrealized losses | ||
Federal Home Loan Bank stock and other securities | $1,000 |
Loans_Details
Loans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Composition of loans by primary loan classification | |||
Loans | $1,868,550,000 | $1,721,350,000 | $1,584,594,000 |
Net deferred loan (costs) fees | -331,000 | -139,000 | |
Loans under participation agreements with other banks | 8,100,000 | 9,400,000 | |
Loans to directors and their associates, including loans to companies for which directors are principal owners, and executive officers | |||
Balance at the beginning of the period | 8,667,000 | 6,099,000 | |
New loans | 2,210,000 | ||
Repayment of term loans | 1,222,000 | 892,000 | |
Changes in balances of revolving lines of credit | 4,345,000 | 1,250,000 | |
Balance at the end of the period | 11,790,000 | 8,667,000 | |
Commercial and industrial | |||
Composition of loans by primary loan classification | |||
Loans | 577,911,000 | 510,739,000 | 426,930,000 |
Construction and development excluding undeveloped land | |||
Composition of loans by primary loan classification | |||
Loans | 95,733,000 | 99,719,000 | |
Undeveloped land | |||
Composition of loans by primary loan classification | |||
Loans | 22,268,000 | 29,871,000 | |
Real estate mortgage | |||
Composition of loans by primary loan classification | |||
Loans | 1,133,953,000 | 1,046,823,000 | 989,631,000 |
Consumer | |||
Composition of loans by primary loan classification | |||
Loans | $38,685,000 | $34,198,000 | $36,780,000 |
Loans_Details_2
Loans (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Balance in the recorded investment in loans and allowance for loan losses by portfolio segment and based on impairment method | |||
Loans | $1,868,550 | $1,721,350 | $1,584,594 |
Loans individually evaluated for impairment | 11,551 | 22,507 | 29,329 |
Loans collectively evaluated for impairment | 1,855,837 | 1,696,413 | 1,555,265 |
Loans acquired with deteriorated credit quality | 1,162 | 2,430 | |
Allowance for loan losses | |||
Balance at the beginning of the period | 28,522 | 31,881 | 29,745 |
Provision (credit) | -400 | 6,550 | 11,500 |
Charge-offs | -4,244 | -11,964 | -10,498 |
Recoveries | 1,042 | 2,055 | 1,134 |
Balance at the end of the period | 24,920 | 28,522 | 31,881 |
Allowance for loans individually evaluated for impairment | 1,376 | 1,452 | 3,617 |
Allowance for loans collectively evaluated for impairment | 23,544 | 27,070 | 28,264 |
Commercial and industrial | |||
Balance in the recorded investment in loans and allowance for loan losses by portfolio segment and based on impairment method | |||
Loans | 577,911 | 510,739 | 426,930 |
Loans individually evaluated for impairment | 6,239 | 7,579 | 8,667 |
Loans collectively evaluated for impairment | 571,600 | 502,535 | 418,263 |
Loans acquired with deteriorated credit quality | 72 | 625 | |
Allowance for loan losses | |||
Balance at the beginning of the period | 7,644 | 5,949 | 7,364 |
Provision (credit) | 4,593 | 1,583 | 3,024 |
Charge-offs | -661 | -457 | -4,523 |
Recoveries | 243 | 569 | 84 |
Balance at the end of the period | 11,819 | 7,644 | 5,949 |
Allowance for loans individually evaluated for impairment | 529 | 762 | 156 |
Allowance for loans collectively evaluated for impairment | 11,290 | 6,882 | 5,793 |
Construction and development excluding undeveloped land | |||
Balance in the recorded investment in loans and allowance for loan losses by portfolio segment and based on impairment method | |||
Loans | 95,733 | 99,719 | |
Loans individually evaluated for impairment | 516 | 26 | |
Loans collectively evaluated for impairment | 94,603 | 98,428 | |
Loans acquired with deteriorated credit quality | 614 | 1,265 | |
Allowance for loan losses | |||
Balance at the beginning of the period | 2,555 | 1,638 | |
Provision (credit) | -1,584 | 779 | |
Charge-offs | -250 | -25 | |
Recoveries | 163 | ||
Balance at the end of the period | 721 | 2,555 | |
Allowance for loans individually evaluated for impairment | 15 | ||
Allowance for loans collectively evaluated for impairment | 706 | 2,555 | |
Undeveloped land | |||
Balance in the recorded investment in loans and allowance for loan losses by portfolio segment and based on impairment method | |||
Loans | 22,268 | 29,871 | |
Loans individually evaluated for impairment | 1,000 | 7,340 | |
Loans collectively evaluated for impairment | 21,268 | 22,531 | |
Allowance for loan losses | |||
Balance at the beginning of the period | 5,376 | 2,898 | |
Provision (credit) | -2,244 | 10,358 | |
Charge-offs | -1,753 | -7,961 | |
Recoveries | 166 | 81 | |
Balance at the end of the period | 1,545 | 5,376 | |
Allowance for loans individually evaluated for impairment | 500 | ||
Allowance for loans collectively evaluated for impairment | 1,045 | 5,376 | |
Real estate mortgage | |||
Balance in the recorded investment in loans and allowance for loan losses by portfolio segment and based on impairment method | |||
Loans | 1,133,953 | 1,046,823 | 989,631 |
Loans individually evaluated for impairment | 3,720 | 7,478 | 9,795 |
Loans collectively evaluated for impairment | 1,129,766 | 1,038,824 | 979,836 |
Loans acquired with deteriorated credit quality | 467 | 521 | |
Allowance for loan losses | |||
Balance at the beginning of the period | 12,604 | 14,288 | 11,182 |
Provision (credit) | -1,190 | 490 | 6,308 |
Charge-offs | -993 | -2,758 | -3,451 |
Recoveries | 120 | 584 | 249 |
Balance at the end of the period | 10,541 | 12,604 | 14,288 |
Allowance for loans individually evaluated for impairment | 256 | 606 | 563 |
Allowance for loans collectively evaluated for impairment | 10,285 | 11,998 | 13,725 |
Consumer | |||
Balance in the recorded investment in loans and allowance for loan losses by portfolio segment and based on impairment method | |||
Loans | 38,685 | 34,198 | 36,780 |
Loans individually evaluated for impairment | 76 | 84 | 4 |
Loans collectively evaluated for impairment | 38,600 | 34,095 | 36,776 |
Loans acquired with deteriorated credit quality | 9 | 19 | |
Allowance for loan losses | |||
Balance at the beginning of the period | 343 | 362 | 540 |
Provision (credit) | 25 | 86 | -181 |
Charge-offs | -587 | -763 | -798 |
Recoveries | 513 | 658 | 801 |
Balance at the end of the period | 294 | 343 | 362 |
Allowance for loans individually evaluated for impairment | 76 | 84 | |
Allowance for loans collectively evaluated for impairment | 218 | 259 | 362 |
Unallocated | |||
Allowance for loan losses | |||
Balance at the beginning of the period | 6,746 | 7,113 | |
Provision (credit) | -6,746 | -367 | |
Balance at the end of the period | 6,746 | ||
Allowance for loans collectively evaluated for impairment | 6,746 | ||
Construction and development | |||
Balance in the recorded investment in loans and allowance for loan losses by portfolio segment and based on impairment method | |||
Loans | 131,253 | ||
Loans individually evaluated for impairment | 10,863 | ||
Loans collectively evaluated for impairment | 120,390 | ||
Allowance for loan losses | |||
Balance at the beginning of the period | 3,546 | ||
Provision (credit) | 2,716 | ||
Charge-offs | -1,726 | ||
Balance at the end of the period | 4,536 | ||
Allowance for loans individually evaluated for impairment | 2,898 | ||
Allowance for loans collectively evaluated for impairment | $1,638 |
Loans_Details_3
Loans (Details 3) (Impaired loans, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Changes in accretable discount related to credit impaired acquired loans | ||
Balance at the beginning of period | $137 | |
Accretion | -75 | -37 |
Balance at the end of period | 62 | 137 |
Accretion - Non- accretable | -103 | -3 |
Balance at the end of period | 266 | 369 |
Oldham | ||
Changes in accretable discount related to credit impaired acquired loans | ||
Additions due to acquisition | 174 | |
Additions due to acquisition - Non-accretable | $372 |
Loans_Details_4
Loans (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Recorded investment | |||
Loans with no related allowance recorded | $3,725 | $11,927 | |
Loans with an allowance recorded | 7,826 | 10,580 | |
Total | 11,551 | 22,507 | |
Unpaid principal balance | |||
Loans with no related allowance recorded | 6,987 | 16,126 | |
Loans with an allowance recorded | 9,397 | 10,898 | |
Total | 16,384 | 27,024 | |
Related allowance | 1,376 | 1,452 | |
Average recorded investment | |||
Loans with no related allowance recorded | 9,629 | 13,387 | |
Loans with an allowance recorded | 9,068 | 14,956 | |
Total | 18,697 | 28,343 | |
Additional disclosure | |||
Interest income on impaired or non-accrual loans (cash basis) | 284 | 185 | 157 |
Interest income that would have been recorded if non-accrual loans were on a current basis | 376 | 1,200 | 1,200 |
Loans past due more than 90 days or more and still accruing interest | 329 | 437 | |
Recorded investment in non-accrual loans | 5,199 | 15,258 | |
Commercial and industrial | |||
Recorded investment | |||
Loans with no related allowance recorded | 396 | 830 | |
Loans with an allowance recorded | 5,843 | 6,749 | |
Total | 6,239 | 7,579 | |
Unpaid principal balance | |||
Loans with no related allowance recorded | 408 | 974 | |
Loans with an allowance recorded | 6,318 | 6,749 | |
Total | 6,726 | 7,723 | |
Related allowance | 529 | 762 | |
Average recorded investment | |||
Loans with no related allowance recorded | 896 | 4,499 | |
Loans with an allowance recorded | 6,697 | 3,806 | |
Total | 7,593 | 8,305 | |
Additional disclosure | |||
Loans past due more than 90 days or more and still accruing interest | 1 | 421 | |
Recorded investment in non-accrual loans | 381 | 846 | |
Construction and development excluding undeveloped land | |||
Recorded investment | |||
Loans with no related allowance recorded | 26 | 26 | |
Loans with an allowance recorded | 490 | ||
Total | 516 | 26 | |
Unpaid principal balance | |||
Loans with no related allowance recorded | 151 | 151 | |
Loans with an allowance recorded | 490 | ||
Total | 641 | 151 | |
Related allowance | 15 | ||
Average recorded investment | |||
Loans with no related allowance recorded | 26 | 54 | |
Loans with an allowance recorded | 196 | 259 | |
Total | 222 | 313 | |
Additional disclosure | |||
Loans past due more than 90 days or more and still accruing interest | 241 | ||
Recorded investment in non-accrual loans | 516 | 26 | |
Undeveloped land | |||
Recorded investment | |||
Loans with no related allowance recorded | 500 | 7,340 | |
Loans with an allowance recorded | 500 | ||
Total | 1,000 | 7,340 | |
Unpaid principal balance | |||
Loans with no related allowance recorded | 3,188 | 9,932 | |
Loans with an allowance recorded | 1,596 | ||
Total | 4,784 | 9,932 | |
Related allowance | 500 | ||
Average recorded investment | |||
Loans with no related allowance recorded | 5,708 | 3,272 | |
Loans with an allowance recorded | 100 | 7,152 | |
Total | 5,808 | 10,424 | |
Additional disclosure | |||
Recorded investment in non-accrual loans | 1,000 | 7,340 | |
Real estate mortgage | |||
Recorded investment | |||
Loans with no related allowance recorded | 2,803 | 3,731 | |
Loans with an allowance recorded | 917 | 3,747 | |
Total | 3,720 | 7,478 | |
Unpaid principal balance | |||
Loans with no related allowance recorded | 3,240 | 5,069 | |
Loans with an allowance recorded | 917 | 4,065 | |
Total | 4,157 | 9,134 | |
Related allowance | 256 | 606 | |
Average recorded investment | |||
Loans with no related allowance recorded | 2,999 | 5,559 | |
Loans with an allowance recorded | 1,995 | 3,705 | |
Total | 4,994 | 9,264 | |
Additional disclosure | |||
Loans past due more than 90 days or more and still accruing interest | 87 | 16 | |
Recorded investment in non-accrual loans | 3,302 | 7,046 | |
Consumer | |||
Recorded investment | |||
Loans with an allowance recorded | 76 | 84 | |
Total | 76 | 84 | |
Unpaid principal balance | |||
Loans with an allowance recorded | 76 | 84 | |
Total | 76 | 84 | |
Related allowance | 76 | 84 | |
Average recorded investment | |||
Loans with no related allowance recorded | 3 | ||
Loans with an allowance recorded | 80 | 34 | |
Total | $80 | $37 |
Loans_Details_5
Loans (Details 5) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2014 | |
item | ||
Recorded investment in loans modified and classified as TDRs | ||
Number of contracts | 2 | |
Loans classified as TDR | $7,200,000 | $6,400,000 |
Pre-modification outstanding recorded investment | 881,000 | |
Recorded investment in loans accounted for as TDR that were restructured and experienced a payment default | ||
Number of contracts | 3 | |
Recorded Investment | 3,215,000 | |
Total related allowance allocation for TDRs individually evaluated for impairment | 942,000 | 703,000 |
Outstanding commitments to lend additional funds to borrowers with loans classified as troubled debt restructurings | 262,000 | 458,000 |
Commercial and industrial | ||
Recorded investment in loans modified and classified as TDRs | ||
Number of contracts | 1 | |
Pre-modification outstanding recorded investment | 796,000 | |
Recorded investment in loans accounted for as TDR that were restructured and experienced a payment default | ||
Number of contracts | 1 | |
Recorded Investment | 790,000 | |
Real estate mortgage | ||
Recorded investment in loans modified and classified as TDRs | ||
Number of contracts | 1 | |
Pre-modification outstanding recorded investment | 85,000 | |
Recorded investment in loans accounted for as TDR that were restructured and experienced a payment default | ||
Number of contracts | 2 | |
Recorded Investment | $2,425,000 |
Loans_Details_6
Loans (Details 6) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Aging of the recorded investment in past due loans | |||
30-59 days past due | $8,508 | $5,876 | |
60-89 days past due | 1,553 | 1,381 | |
Greater than 90 days past due (includes non-accrual) | 5,528 | 15,696 | |
Total past due | 15,589 | 22,953 | |
Current | 1,852,961 | 1,698,397 | |
Total loans | 1,868,550 | 1,721,350 | 1,584,594 |
Recorded investment greater than 90 days and accruing | 329 | 437 | |
Commercial and industrial | |||
Aging of the recorded investment in past due loans | |||
30-59 days past due | 3,860 | 808 | |
60-89 days past due | 3 | 201 | |
Greater than 90 days past due (includes non-accrual) | 382 | 1,268 | |
Total past due | 4,245 | 2,277 | |
Current | 573,666 | 508,462 | |
Total loans | 577,911 | 510,739 | 426,930 |
Recorded investment greater than 90 days and accruing | 1 | 421 | |
Construction and development excluding undeveloped land | |||
Aging of the recorded investment in past due loans | |||
30-59 days past due | 69 | 429 | |
Greater than 90 days past due (includes non-accrual) | 757 | 26 | |
Total past due | 826 | 455 | |
Current | 94,907 | 99,264 | |
Total loans | 95,733 | 99,719 | |
Recorded investment greater than 90 days and accruing | 241 | ||
Undeveloped land | |||
Aging of the recorded investment in past due loans | |||
Greater than 90 days past due (includes non-accrual) | 1,000 | 7,340 | |
Total past due | 1,000 | 7,340 | |
Current | 21,268 | 22,531 | |
Total loans | 22,268 | 29,871 | |
Real estate mortgage | |||
Aging of the recorded investment in past due loans | |||
30-59 days past due | 4,536 | 4,529 | |
60-89 days past due | 1,532 | 1,180 | |
Greater than 90 days past due (includes non-accrual) | 3,389 | 7,062 | |
Total past due | 9,457 | 12,771 | |
Current | 1,124,496 | 1,034,052 | |
Total loans | 1,133,953 | 1,046,823 | 989,631 |
Recorded investment greater than 90 days and accruing | 87 | 16 | |
Consumer | |||
Aging of the recorded investment in past due loans | |||
30-59 days past due | 43 | 110 | |
60-89 days past due | 18 | ||
Total past due | 61 | 110 | |
Current | 38,624 | 34,088 | |
Total loans | $38,685 | $34,198 | $36,780 |
Loans_Details_7
Loans (Details 7) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Credit risk profile by internally assigned grade | |||
Loans | $1,868,550 | $1,721,350 | $1,584,594 |
Pass | |||
Credit risk profile by internally assigned grade | |||
Loans | 1,815,355 | 1,644,646 | |
Special mention | |||
Credit risk profile by internally assigned grade | |||
Loans | 24,800 | 38,076 | |
Substandard | |||
Credit risk profile by internally assigned grade | |||
Loans | 16,515 | 15,684 | |
Substandard non-performing | |||
Credit risk profile by internally assigned grade | |||
Loans | 11,880 | 22,944 | |
Commercial and industrial | |||
Credit risk profile by internally assigned grade | |||
Loans | 577,911 | 510,739 | 426,930 |
Commercial and industrial | Pass | |||
Credit risk profile by internally assigned grade | |||
Loans | 553,739 | 486,140 | |
Commercial and industrial | Special mention | |||
Credit risk profile by internally assigned grade | |||
Loans | 6,215 | 12,983 | |
Commercial and industrial | Substandard | |||
Credit risk profile by internally assigned grade | |||
Loans | 11,717 | 3,616 | |
Commercial and industrial | Substandard non-performing | |||
Credit risk profile by internally assigned grade | |||
Loans | 6,240 | 8,000 | |
Construction and development excluding undeveloped land | |||
Credit risk profile by internally assigned grade | |||
Loans | 95,733 | 99,719 | |
Construction and development excluding undeveloped land | Pass | |||
Credit risk profile by internally assigned grade | |||
Loans | 88,389 | 87,896 | |
Construction and development excluding undeveloped land | Special mention | |||
Credit risk profile by internally assigned grade | |||
Loans | 4,867 | 7,091 | |
Construction and development excluding undeveloped land | Substandard | |||
Credit risk profile by internally assigned grade | |||
Loans | 1,720 | 4,706 | |
Construction and development excluding undeveloped land | Substandard non-performing | |||
Credit risk profile by internally assigned grade | |||
Loans | 757 | 26 | |
Undeveloped land | |||
Credit risk profile by internally assigned grade | |||
Loans | 22,268 | 29,871 | |
Undeveloped land | Pass | |||
Credit risk profile by internally assigned grade | |||
Loans | 20,578 | 22,366 | |
Undeveloped land | Special mention | |||
Credit risk profile by internally assigned grade | |||
Loans | 530 | ||
Undeveloped land | Substandard | |||
Credit risk profile by internally assigned grade | |||
Loans | 160 | 165 | |
Undeveloped land | Substandard non-performing | |||
Credit risk profile by internally assigned grade | |||
Loans | 1,000 | 7,340 | |
Real estate mortgage | |||
Credit risk profile by internally assigned grade | |||
Loans | 1,133,953 | 1,046,823 | 989,631 |
Real estate mortgage | Pass | |||
Credit risk profile by internally assigned grade | |||
Loans | 1,114,116 | 1,014,216 | |
Real estate mortgage | Special mention | |||
Credit risk profile by internally assigned grade | |||
Loans | 13,112 | 17,916 | |
Real estate mortgage | Substandard | |||
Credit risk profile by internally assigned grade | |||
Loans | 2,918 | 7,197 | |
Real estate mortgage | Substandard non-performing | |||
Credit risk profile by internally assigned grade | |||
Loans | 3,807 | 7,494 | |
Consumer | |||
Credit risk profile by internally assigned grade | |||
Loans | 38,685 | 34,198 | 36,780 |
Consumer | Pass | |||
Credit risk profile by internally assigned grade | |||
Loans | 38,533 | 34,028 | |
Consumer | Special mention | |||
Credit risk profile by internally assigned grade | |||
Loans | 76 | 86 | |
Consumer | Substandard non-performing | |||
Credit risk profile by internally assigned grade | |||
Loans | 76 | 84 | |
Construction and development | |||
Credit risk profile by internally assigned grade | |||
Loans | $131,253 |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Premises and equipment | |||
Premises and equipment, gross | $69,282,000 | $67,442,000 | |
Accumulated depreciation and amortization | -30,194,000 | -27,629,000 | |
Premises and equipment, net | 39,088,000 | 39,813,000 | |
Depreciation expense related to premises and equipment | 2,900,000 | 3,000,000 | 3,100,000 |
Land | |||
Premises and equipment | |||
Premises and equipment, gross | 6,733,000 | 6,803,000 | |
Buildings and improvements | |||
Premises and equipment | |||
Premises and equipment, gross | 43,818,000 | 43,259,000 | |
Furniture and equipment | |||
Premises and equipment | |||
Premises and equipment, gross | 18,426,000 | 17,149,000 | |
Construction in progress | |||
Premises and equipment | |||
Premises and equipment, gross | $305,000 | $231,000 |
Other_Assets_Details
Other Assets (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Other Assets. | ||
Net deferred tax asset | $12,377,000 | $14,554,000 |
Cash surrender value of life insurance other than BOLI | 12,019,000 | 10,949,000 |
Other Real Estate, Foreclosed Assets, and Repossessed Assets | 5,977,000 | 5,592,000 |
Investments in tax credit related ventures | 5,090,000 | 5,506,000 |
Core deposit intangible | 1,820,000 | 2,151,000 |
Mortgage servicing rights (MSRs) | 1,131,000 | 1,832,000 |
Other short term receivables | 2,149,000 | 1,624,000 |
Goodwill | 682,000 | 682,000 |
Investment in bank in expansion market | 520,000 | 520,000 |
Other | 5,907,000 | 8,414,000 |
Total | 47,672,000 | 51,824,000 |
Estimated fair values of MSRs | 3,400,000 | 4,000,000 |
Total outstanding principal balances of loans serviced for others | 421,100,000 | 435,300,000 |
Changes in net carrying amount of finite-lived intangible MSRs | ||
Balance at beginning of period | 1,832,000 | 2,088,000 |
Originations | 258,000 | 776,000 |
Amortization | -959,000 | -1,032,000 |
Balance at end of period | $1,131,000 | $1,832,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current tax expense | |||||||||||||||
Federal | $14,958 | $10,322 | $11,895 | ||||||||||||
State | 641 | 336 | 672 | ||||||||||||
Total current tax expense | 15,599 | 10,658 | 12,567 | ||||||||||||
Deferred tax (benefit) expense | |||||||||||||||
Federal | -385 | 450 | -2,800 | ||||||||||||
State | 26 | 120 | -133 | ||||||||||||
Total deferred tax benefit | -359 | 570 | -2,933 | ||||||||||||
Change in valuation allowance | 41 | ||||||||||||||
Total income tax expense | 3,307 | 4,715 | 3,627 | 3,632 | 2,386 | 3,091 | 2,732 | 3,019 | 2,265 | 2,388 | 2,499 | 2,482 | 15,281 | 11,228 | 9,634 |
Components of income tax expense (benefit) recorded directly to stockholders' equity | |||||||||||||||
Unrealized gain (loss) on securities available-for-sale arising during the period, tax | 2,383 | -4,234 | -24 | ||||||||||||
Reclassification adjustment for securities losses realized in income | 3 | 2 | 0 | ||||||||||||
Unrealized gains on hedging instruments arising during the period, tax | 0 | 8 | 0 | ||||||||||||
Compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes | -378 | -265 | -83 | ||||||||||||
Minimum Pension Liability adjustment | -69 | 111 | 2 | ||||||||||||
Total income tax (benefit) expense recorded directly to stockholders' equity | $1,939 | ($4,378) | ($105) |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Analysis of the difference between the statutory and effective tax rates from operations | |||
U.S. federal statutory tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
Tax exempt interest income (as a percent) | -1.50% | -2.10% | -3.80% |
Tax credits (as a percent) | -3.10% | -2.50% | -2.20% |
Cash surrender value of life insurance (as a percent) | -1.40% | -2.00% | -1.90% |
State income taxes (as a percent) | 0.90% | 0.80% | 1.00% |
Non-taxable gain on acquisition (as a percent) | -0.40% | ||
Non-deductible acquisition costs (as a percent) | 0.20% | ||
Other, net (as a percent) | 0.60% | 0.20% | -0.90% |
Effective tax rate (as a percent) | 30.50% | 29.20% | 27.20% |
Prepayment penalty | $740,000 | ||
Deferred tax assets and deferred tax liabilities | |||
Allowance for loan loss | 8,929,000 | 10,236,000 | |
Deferred compensation | 5,442,000 | 4,778,000 | |
Accrued expenses | 1,854,000 | 1,604,000 | |
Investments in partnerships | 1,031,000 | 826,000 | |
Write-downs and costs associated with other real estate owned | 491,000 | 749,000 | |
Loans | 678,000 | 564,000 | |
Other-than-temporary impairment | 310,000 | 311,000 | |
Other assets | 219,000 | 299,000 | |
Total deferred tax assets | 18,954,000 | 19,367,000 | |
Securities | 2,594,000 | 354,000 | |
Property and equipment | 1,250,000 | 1,377,000 | |
Loan costs | 756,000 | 702,000 | |
Prepayment penalty on modification of FHLB advances | 76,000 | 156,000 | |
Mortgage servicing rights | 356,000 | 608,000 | |
Leases | 422,000 | 428,000 | |
Core deposit intangible | 652,000 | 772,000 | |
Other liabilities | 430,000 | 416,000 | |
Total deferred tax liabilities | 6,536,000 | 4,813,000 | |
Valuation allowance | 41,000 | 0 | |
Net deferred tax asset | $12,377,000 | $14,554,000 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Jan. 01, 2014 | |
Income Taxes | |||
Federal net operating loss carryforward as a result of the acquisition of Oldham | $62,000 | ||
Valuation allowance for deferred tax assets | 41,000 | 0 | |
Gross amount of unrecognized tax benefits | 40,000 | 40,000 | |
Amount accrued for the potential payment of interest and penalties | 2,000 | 2,000 | |
Reconciliation of the amount of unrecognized tax benefits | |||
Balance at the beginning of the period | 40,000 | 70,000 | |
Increases - current year tax positions | 11,000 | 11,000 | |
Lapse of statute of limitations | -11,000 | -41,000 | |
Balance at the end of the period | $40,000 | $40,000 |
Deposits_Details
Deposits (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Deposits | |||
Interest bearing demand | $502,801,000 | $462,291,000 | |
Savings | 111,624,000 | 101,551,000 | |
Money market | 673,925,000 | 643,787,000 | |
Time deposits greater than $250,000 | 41,137,000 | 40,604,000 | |
Other time deposits | 270,193,000 | 309,354,000 | |
Total | 1,599,680,000 | 1,557,587,000 | |
Interest expense related to certificates of deposit and other time deposits in denominations of $100,000 or more | 437,000 | 657,000 | 945,000 |
Scheduled maturities of time deposits | |||
2014 | 211,341,000 | ||
2015 | 67,473,000 | ||
2016 | 17,805,000 | ||
2017 | 7,811,000 | ||
2018 and thereafter | 6,900,000 | ||
Total | 311,330,000 | ||
Deposits of directors and their associates, including deposits of companies for which directors are principal owners, and executive officers | 19,800,000 | 19,100,000 | |
Deposits accounts in overdraft status and thus have been reclassified to loans | $654,000 | $986,000 |
Securities_Sold_Under_Agreemen2
Securities Sold Under Agreements to Repurchase and Other Short-Term Borrowings (Details) (Securities Sold under Agreements to Repurchase [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Securities Sold under Agreements to Repurchase [Member] | ||
Securities sold under agreements to repurchase | ||
Maturity period of securities sold under agreements to repurchase | 1 day | |
Average balance during the year | $61,748 | $60,737 |
Average interest rate during the year (as a percent) | 0.23% | 0.24% |
Maximum month-end balance during the year | $69,559 | $68,383 |
Advances_from_the_Federal_Home2
Advances from the Federal Home Loan Bank (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
item | ||
Federal Home Loan Bank Advances | ||
Federal Home Loan Bank advances | $36,832,000 | $34,329,000 |
Separate advances | 10 | |
Number of separate advances with principal amount due at maturity | 2 | |
Amount of separate advances with principal amount due at maturity | 30,000,000 | |
Amount of remaining advances with principal paid monthly | 6,800,000 | |
Advance | ||
2014 | 10,000,000 | |
2015 | 30,000,000 | 20,000,000 |
2020 | 1,885,000 | 1,931,000 |
2021 | 497,000 | 564,000 |
2024 | 3,064,000 | 408,000 |
2028 | 1,386,000 | 1,426,000 |
Total | 36,832,000 | 34,329,000 |
Rate (as a percent) | ||
2014 | 0.21% | |
2015 | 2.30% | 3.34% |
2020 | 2.23% | 2.23% |
2021 | 2.12% | 2.12% |
2024 | 2.36% | 2.40% |
2028 | 1.47% | 1.46% |
Total | 2.27% | 2.26% |
Amount of available credit from the FHLB | $404,800,000 |
Subordinated_Debentures_Detail
Subordinated Debentures (Details) (S.Y. Bancorp Capital Trust II, USD $) | 12 Months Ended | |
Dec. 31, 2008 | Dec. 31, 2013 | |
Subordinated Debentures | ||
Ownership interest in subsidiary (as a percent) | 100.00% | |
Amount of trust preferred securities issued | $30,000,000 | |
Fixed rate of interest on trust preferred securities (as a percent) | 10.00% | |
Amount received from purchase of common equity securities | 900,000 | |
Investment in subordinated debenture | 30,900,000 | |
Unamortized issuance costs of trust preferred securities recognized as non-interest expense during the period | 1,300,000 | |
Subordinated debt maturing 2038 | ||
Subordinated Debentures | ||
Subordinated debenture of Bancorp | $30,900,000 | |
Fixed rate of interest on subordinated debenture (as a percent) | 10.00% |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $0 | $0 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Net_Income_per_Share_and_Commo2
Net Income per Share and Common Stock Dividends (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $8,722 | $9,889 | $8,034 | $8,177 | $6,313 | $7,682 | $6,407 | $6,768 | $6,514 | $6,682 | $6,103 | $6,502 | $34,822 | $27,170 | $25,801 |
Average shares outstanding, basic | 14,559 | 14,223 | 13,875 | ||||||||||||
Dilutive securities (in shares) | 203 | 130 | 57 | ||||||||||||
Average shares outstanding including dilutive securities | 14,762 | 14,353 | 13,932 | ||||||||||||
Net income per share, basic (in dollars per share) | $0.60 | $0.68 | $0.55 | $0.56 | $0.44 | $0.53 | $0.45 | $0.49 | $0.47 | $0.48 | $0.44 | $0.47 | $2.39 | $1.91 | $1.86 |
Net income per share, diluted (in dollars per share) | $0.59 | $0.67 | $0.55 | $0.56 | $0.43 | $0.53 | $0.45 | $0.49 | $0.47 | $0.48 | $0.44 | $0.47 | $2.36 | $1.89 | $1.85 |
S.Y. Bancorp, Inc. | |||||||||||||||
Net income | $34,822 | $27,170 | $25,801 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | |||
Additional Contribution in stock | 2.00% | ||
Employer expenses related to contributions to the plan | $1,700,000 | $1,700,000 | $1,500,000 |
Number of shares held by KSOP | 489,005 | 497,958 | |
Amount contributed to the senior officers' plan | 228,000 | 205,000 | 146,000 |
Amounts included in other liabilities for senior officers' plan | 4,700,000 | 4,000,000 | |
Number of key officers covered under defined benefit retirement plan | 3 | ||
Number of current key officers covered under defined benefit retirement plan | 2 | ||
Number of retired key officers covered under defined benefit retirement plan | 1 | ||
Period of service based on which benefits will vest | 25 years | ||
Accumulated benefit obligation for defined benefit retirement plan included in other liabilities | 2,200,000 | 1,900,000 | |
Discount rate used in determining the actuarial present value of the projected benefit obligation (as a percent) | 3.85% | 4.72% | |
Components of net periodic benefit cost: | |||
Interest cost | 90,000 | 83,000 | 86,000 |
Amortization of net losses | 36,000 | 60,000 | 56,000 |
Net periodic benefit cost | 126,000 | 143,000 | 142,000 |
Benefits expected to be paid in each year | |||
2014 | 84,000 | ||
2015 | 84,000 | ||
2016 | 84,000 | ||
2017 | 84,000 | ||
2018 | 84,000 | ||
Beyond 2018 | 3,362,000 | ||
Total future payments | $3,782,000 | ||
Minimum | |||
Number of hours | 1000 hours | ||
Maximum | |||
Defined Contribution Plan, Employer Matching Contribution | 6.00% |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Mar. 31, 2014 | Dec. 31, 2005 | |
plan | ||||||
Stock-Based Compensation | ||||||
Number of stock-based compensation plans | 1 | |||||
Number of shares reserved under the plan | 735,000 | |||||
Number of additional shares authorized under the plan | 700,000 | |||||
Number of shares available for future awards | 454,566,000 | |||||
Stock-based compensation | ||||||
Stock-based compensation expense before income taxes | $2,016,000 | $1,940,000 | $1,481,000 | |||
Less: deferred tax benefit | -706,000 | -679,000 | -518,000 | |||
Reduction of net income | 1,310,000 | 1,261,000 | 963,000 | |||
Unrecognized stock-based compensation expense | 3,300,000 | |||||
Period of recognition of stock-based compensation expense | 5 years | |||||
Amount received from exercise of options | $2,500,000 | $2,400,000 | $937,000 | |||
Options and SARs | ||||||
Stock-based compensation | ||||||
Award vesting limit per year (as a percent) | 20.00% | |||||
Assumptions used in SAR/Option valuations | ||||||
Dividend yield (as a percent) | 2.94% | 2.80% | 2.52% | |||
Expected volatility (as a percent) | 23.66% | 22.54% | 22.04% | |||
Risk free interest rate (as a percent) | 2.22% | 1.26% | 1.44% | |||
Expected life of awards | 7 years | 6 years 7 months 6 days | 7 years 7 months 6 days | |||
Restricted stock | ||||||
Stock-based compensation | ||||||
Shares awarded (in shares) | 39,730 | 55,275 | 57,156 | |||
Restricted stock | Maximum | ||||||
Stock-based compensation | ||||||
Award vesting period | 5 years | |||||
Restricted stock units (RSUs) | Executive Officer | ||||||
Stock-Based Compensation | ||||||
Number of shares available for future awards | 25,012,000 | 36,792,000 | 28,079,000 | |||
Stock-based compensation | ||||||
Award vesting period | 3 years | 3 years | 3 years | |||
Restricted stock units (RSUs) | Directors | ||||||
Stock-based compensation | ||||||
Award vesting period | 12 months | |||||
Shares awarded (in shares) | 3,920 |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Vested and exercisable | Minimum | |||
Exercise price per share | |||
Exercise price per share (in dollars per share) | $24.02 | $20.25 | |
Vested and exercisable | Maximum | |||
Exercise price per share | |||
Exercise price per share (in dollars per share) | $26.83 | $26.83 | |
Unvested | Minimum | |||
Exercise price per share | |||
Exercise price per share (in dollars per share) | $21.03 | $21.03 | |
Unvested | Maximum | |||
Exercise price per share | |||
Exercise price per share (in dollars per share) | $29.16 | $24.87 | |
Outstanding | Minimum | |||
Exercise price per share | |||
Exercise price per share (in dollars per share) | $21.03 | $20.25 | |
Outstanding | Maximum | |||
Exercise price per share | |||
Exercise price per share (in dollars per share) | $29.16 | $26.83 | |
Granted | Minimum | |||
Exercise price per share | |||
Exercise price per share (in dollars per share) | $29.05 | ||
Granted | Maximum | |||
Exercise price per share | |||
Exercise price per share (in dollars per share) | $29.16 | ||
Exercised | Minimum | |||
Exercise price per share | |||
Exercise price per share (in dollars per share) | $20.25 | ||
Exercised | Maximum | |||
Exercise price per share | |||
Exercise price per share (in dollars per share) | $26.83 | ||
Forfeited | Minimum | |||
Exercise price per share | |||
Exercise price per share (in dollars per share) | $21.03 | ||
Forfeited | Maximum | |||
Exercise price per share | |||
Exercise price per share (in dollars per share) | $23.76 | ||
Vested year-to-date | Minimum | |||
Exercise price per share | |||
Exercise price per share (in dollars per share) | $21.03 | ||
Vested year-to-date | Maximum | |||
Exercise price per share | |||
Exercise price per share (in dollars per share) | $24.87 | ||
Options and SARs | |||
Options and SARs | |||
Vested and exercisable at the beginning of the period (in shares) | 579 | ||
Unvested at the beginning of the period (in shares) | 218 | ||
Total outstanding at the beginning of the period (in shares) | 797 | ||
Granted (in shares) | 62 | ||
Exercised (in shares) | -135 | ||
Forfeited (in shares) | -6 | ||
Vested and exercisable at the end of the period (in shares) | 524 | 579 | |
Unvested at the end of the period (in shares) | 194 | 218 | |
Total outstanding at the end of the period (in shares) | 718 | 797 | |
Vested year-to-date (in shares) | 80 | ||
Weighted average exercise price | |||
Vested and exercisable at the beginning of the period (in dollars per share) | $23.83 | ||
Unvested at the beginning of the period (in dollars per share) | $22.70 | ||
Total outstanding at the beginning of the period (in dollars per share) | $23.52 | ||
Granted (in dollars per share) | $29.05 | ||
Exercised (in dollars per share) | $23.03 | ||
Forfeited (in dollars per share) | $22.78 | ||
Vested and exercisable at the end of the period (in dollars per share) | $23.84 | $23.83 | |
Unvested at the end of the period (in dollars per share) | $24.83 | $22.70 | |
Total outstanding at the end of the period (in dollars per share) | $24.11 | $23.52 | |
Vested during year (in dollars per share) | $22.49 | ||
Aggregate intrinsic value | |||
Vested and exercisable at the beginning of the period (in dollars) | $4,685 | ||
Unvested at the beginning of the period (in dollars) | 2,011 | ||
Total outstanding at the beginning of the period (in dollars) | 6,696 | ||
Granted (in dollars) | 267 | ||
Exercised (in dollars) | 1,083 | 1,100 | 305 |
Forfeited (in dollars) | 66 | ||
Vested and exercisable at the end of the period (in dollars) | 4,981 | 4,685 | |
Unvested at the end of the period (in dollars) | 1,650 | 2,011 | |
Total outstanding at the end of the period (in dollars) | 6,631 | 6,696 | |
Vested during year (in dollars) | $872 | ||
Weighted average fair value | |||
Vested and exercisable at the beginning of the period (in dollars per share) | $5.43 | ||
Unvested at the beginning of the period (in dollars per share) | $4.36 | ||
Total outstanding at the beginning of the period (in dollars per share) | $5.14 | ||
Granted (in dollars per share) | $5.37 | $3.61 | $3.93 |
Exercised (in dollars per share) | $5.27 | ||
Forfeited (in dollars per share) | $4.43 | ||
Vested and exercisable at the end of the period (in dollars per share) | $5.35 | $5.43 | |
Unvested at the end of the period (in dollars per share) | $4.57 | $4.36 | |
Total outstanding at the end of the period (in dollars per share) | $5.14 | $5.14 | |
Vested during year (in dollars per share) | $4.63 | ||
Weighted average remaining contractual life | |||
Vested and exercisable | 3 years 6 months | 3 years 4 months 24 days | |
Unvested | 7 years 8 months 12 days | 7 years 8 months 12 days | |
Total outstanding | 4 years 7 months 6 days | 4 years 7 months 6 days |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 5) (Options and SARs, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Options and SARs outstanding | ||
Number of awards options and SARs outstanding (in shares) | 718 | 797 |
Options and SARs exercisable (in shares) | 524 | 579 |
Weighted average exercise price of options and SARs (in dollars per share) | $24.11 | $23.52 |
2016 | ||
Options and SARs outstanding | ||
Number of awards options and SARs outstanding (in shares) | 117 | |
Options and SARs exercisable (in shares) | 117 | |
Weighted average exercise price of options and SARs (in dollars per share) | $24.07 | |
2017 | ||
Options and SARs outstanding | ||
Number of awards options and SARs outstanding (in shares) | 117 | |
Options and SARs exercisable (in shares) | 117 | |
Weighted average exercise price of options and SARs (in dollars per share) | $26.81 | |
2018 | ||
Options and SARs outstanding | ||
Number of awards options and SARs outstanding (in shares) | 70 | |
Options and SARs exercisable (in shares) | 70 | |
Weighted average exercise price of options and SARs (in dollars per share) | $23.37 | |
2019 | ||
Options and SARs outstanding | ||
Number of awards options and SARs outstanding (in shares) | 72 | |
Options and SARs exercisable (in shares) | 72 | |
Weighted average exercise price of options and SARs (in dollars per share) | $22.14 | |
2020 | ||
Options and SARs outstanding | ||
Number of awards options and SARs outstanding (in shares) | 75 | |
Options and SARs exercisable (in shares) | 61 | |
Weighted average exercise price of options and SARs (in dollars per share) | $21.03 | |
2021 | ||
Options and SARs outstanding | ||
Number of awards options and SARs outstanding (in shares) | 59 | |
Options and SARs exercisable (in shares) | 35 | |
Weighted average exercise price of options and SARs (in dollars per share) | $23.78 | |
2022 | ||
Options and SARs outstanding | ||
Number of awards options and SARs outstanding (in shares) | 92 | |
Options and SARs exercisable (in shares) | 37 | |
Weighted average exercise price of options and SARs (in dollars per share) | $22.87 | |
2023 | ||
Options and SARs outstanding | ||
Number of awards options and SARs outstanding (in shares) | 54 | |
Options and SARs exercisable (in shares) | 15 | |
Weighted average exercise price of options and SARs (in dollars per share) | $22.89 | |
2024 | ||
Options and SARs outstanding | ||
Number of awards options and SARs outstanding (in shares) | 62 | |
Weighted average exercise price of options and SARs (in dollars per share) | $29.05 |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details 3) (Restricted stock, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted stock | |||
Number | |||
Unvested at the beginning of the period (in shares) | 124,556 | 113,910 | 95,007 |
Shares awarded (in shares) | 39,730 | 55,275 | 57,156 |
Restrictions lapsed and shares released to employees/directors (in shares) | -44,724 | -39,909 | -30,782 |
Shares forfeited (in shares) | -5,469 | -4,720 | -7,471 |
Unvested at the end of the period (in shares) | 114,093 | 124,556 | 113,910 |
Grant date weighted-average cost | |||
Unvested at the beginning of the period (in dollars per share) | $22.77 | $22.55 | $22.49 |
Fair value at grant date (in dollars per share) | $29.12 | $22.93 | $22.71 |
Restrictions lapsed and shares released to employees/directors (in dollars per share) | $22.69 | $22.29 | $22.66 |
Shares forfeited (in dollars per share) | $23.77 | $23.45 | $22.59 |
Unvested at the end of the period (in dollars per share) | $24.95 | $22.77 | $22.55 |
StockBased_Compensation_Detail4
Stock-Based Compensation (Details 4) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 |
Stock-based compensation | ||||
Expected shares to be awarded | 454,566,000 | |||
Restricted stock units (RSUs) | Executive Officer | ||||
Stock-based compensation | ||||
Performance period | 3 years | |||
Vesting period | 3 years | 3 years | 3 years | |
Shares awarded (in dollars per share) | $26.42 | $20.38 | $20.57 | |
Expected shares to be awarded | 25,012,000 | 36,792,000 | 28,079,000 | |
Restricted stock units (RSUs) | Directors | ||||
Stock-based compensation | ||||
Vesting period | 12 months | |||
Shares awarded (in shares) | 3,920 | |||
Fair value on grant date | $120 |
StockBased_Compensation_Detail5
Stock-Based Compensation (Details 6) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Stock-based compensation | ||
Number of shares to be issued upon exercise | 352,000 | |
Shares available for future issuance | 454,566,000 | |
Stock options | ||
Stock-based compensation | ||
Number of shares to be issued upon exercise | 234,000 | |
Weighted average exercise price | 25.44 | |
Shares available for future issuance | 455,000 | |
SARs | ||
Stock-based compensation | ||
Outstanding SARs | 484,000 | |
Weighted average grant price (in dollars per share) | $23.46 | |
Restricted stock | ||
Stock-based compensation | ||
Number of shares to be issued upon exercise | 114,000 | |
Performance stock units | Minimum | ||
Stock-based compensation | ||
Number of shares to be issued upon exercise | 0 | |
Performance stock units | Maximum | ||
Stock-based compensation | ||
Number of shares to be issued upon exercise | 108,000 | |
Restricted stock units (RSUs) | ||
Stock-based compensation | ||
Number of shares to be issued upon exercise | 4,000 |
Dividend_Restriction_Details
Dividend Restriction (Details) (Bank, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Bank | |
Dividend restrictions | |
Prior period considered for net income in determining regulatory dividend restriction | 2 years |
Period for which dividend is deducted from net income to determine regulatory dividend restriction | 2 years |
Maximum amount of dividend that Bank may pay to Bancorp without regulatory approval subject to the ongoing capital requirements of the Bank | $34.30 |
Commitments_and_Contingent_Lia2
Commitments and Contingent Liabilities (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | |
Future minimum lease commitments under non-cancelable operating leases | ||||
2015 | 1,457,000 | |||
2016 | 1,464,000 | |||
2017 | 1,419,000 | |||
2018 | 1,002,000 | |||
2019 | 798,000 | |||
Thereafter | 1,644,000 | |||
Total | 7,784,000 | |||
Rent expense, net of sublease income | 1,700,000 | 1,700,000 | 1,800,000 | |
Commitments to extend credit and standby letters of credit | ||||
Commitments and contingent liabilities | ||||
The amount of commitments made by the entity | 464,200,000 | 463,000,000 | ||
Standby letters of credit | ||||
Commitments and contingent liabilities | ||||
The amount of commitments made by the entity | 15,200,000 | 11,000,000 | ||
Standby letters of credit | Minimum | ||||
Commitments and contingent liabilities | ||||
Term of the guarantee agreements | 1 year | |||
Standby letters of credit | Maximum | ||||
Commitments and contingent liabilities | ||||
Term of the guarantee agreements | 2 years | |||
Agreements to guarantee performance of customers contracts | ||||
Commitments and contingent liabilities | ||||
Expected payment required in an event of default on all contracts | 2,700,000 | |||
Maximum potential future payments | 4,000,000 | |||
Agreements to guarantee performance of customers contracts | Minimum | ||||
Commitments and contingent liabilities | ||||
Term of the guarantee agreements | 1 month | |||
Agreements to guarantee performance of customers contracts | Maximum | ||||
Commitments and contingent liabilities | ||||
Term of the guarantee agreements | 19 months |
Assets_and_Liabilities_Measure2
Assets and Liabilities Measured and Reported at Fair Value (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | |||
Investment securities available for sale | $513,056 | $490,031 | |
Fair Value Measurements | |||
Other real estate owned | 5,977 | 5,592 | |
Impaired loans with a valuation allowance | 7,826 | 10,580 | |
Amount of valuation allowance | 1,376 | 1,452 | |
Impaired loans | 6,400 | 9,100 | |
(Gain) loss on other real estate owned | -271 | 652 | 1,410 |
Level 1 to Level 2 transfer, assets | 0 | ||
Level 2 to Level 1 transfer, assets | 0 | ||
Level 1 to Level 2 transfer, liabilities | 0 | ||
Level 2 to Level 1 transfer, liabilities | 0 | ||
Transfers into/out of Level 3, assets | 0 | ||
Transfers into/out of Level 3, liabilities | 0 | ||
U.S. Treasury and other U.S. government obligations | |||
Assets | |||
Investment securities available for sale | 70,000 | 110,000 | |
Government sponsored enterprise obligations | |||
Assets | |||
Investment securities available for sale | 204,986 | 137,845 | |
Mortgage-backed securities - government agencies | |||
Assets | |||
Investment securities available for sale | 174,270 | 172,693 | |
Obligations of states and political subdivisions | |||
Assets | |||
Investment securities available for sale | 62,834 | 69,493 | |
Mortgage Servicing Rights (MSR) | |||
Fair Value Measurements | |||
Amount of valuation allowance | 0 | 0 | |
Common stock | |||
Assets | |||
Investment securities available for sale | 966 | ||
Recurring basis | Fair value | |||
Assets | |||
Investment securities available for sale | 513,056 | 490,031 | |
Interest rate swaps | 425 | 299 | |
Total assets | 513,481 | 490,330 | |
Liabilities | |||
Interest rate swaps | 401 | 275 | |
Recurring basis | Level 1 | |||
Assets | |||
Investment securities available for sale | 70,966 | 110,000 | |
Total assets | 70,966 | 110,000 | |
Recurring basis | Level 2 | |||
Assets | |||
Investment securities available for sale | 442,090 | 380,031 | |
Interest rate swaps | 425 | 299 | |
Total assets | 442,515 | 380,330 | |
Liabilities | |||
Interest rate swaps | 401 | 275 | |
Recurring basis | U.S. Treasury and other U.S. government obligations | Fair value | |||
Assets | |||
Investment securities available for sale | 70,000 | 110,000 | |
Recurring basis | U.S. Treasury and other U.S. government obligations | Level 1 | |||
Assets | |||
Investment securities available for sale | 70,000 | 110,000 | |
Recurring basis | Government sponsored enterprise obligations | Fair value | |||
Assets | |||
Investment securities available for sale | 204,986 | 137,845 | |
Recurring basis | Government sponsored enterprise obligations | Level 2 | |||
Assets | |||
Investment securities available for sale | 204,986 | 137,845 | |
Recurring basis | Mortgage-backed securities - government agencies | Fair value | |||
Assets | |||
Investment securities available for sale | 174,270 | 172,693 | |
Recurring basis | Mortgage-backed securities - government agencies | Level 2 | |||
Assets | |||
Investment securities available for sale | 174,270 | 172,693 | |
Recurring basis | Obligations of states and political subdivisions | Fair value | |||
Assets | |||
Investment securities available for sale | 62,834 | 69,493 | |
Recurring basis | Obligations of states and political subdivisions | Level 2 | |||
Assets | |||
Investment securities available for sale | 62,834 | 69,493 | |
Recurring basis | Common stock | Fair value | |||
Assets | |||
Investment securities available for sale | 966 | ||
Recurring basis | Common stock | Level 1 | |||
Assets | |||
Investment securities available for sale | 966 | ||
Non-recurring basis | |||
Fair Value Measurements | |||
Losses | -405 | -992 | |
(Gain) loss on other real estate owned | -42 | -816 | |
Total, losses | -447 | -1,808 | |
Non-recurring basis | Fair value | |||
Fair Value Measurements | |||
Impaired loans | 6,449 | 9,128 | |
Other real estate owned | 5,032 | 3,774 | |
Assets, Fair Value Disclosure, Nonrecurring | 11,481 | 12,902 | |
Non-recurring basis | Level 3 | |||
Fair Value Measurements | |||
Impaired loans | 6,449 | 9,128 | |
Other real estate owned | 5,032 | 3,774 | |
Assets, Fair Value Disclosure, Nonrecurring | $11,481 | $12,902 |
Assets_and_Liabilities_Measure3
Assets and Liabilities Measured and Reported at Fair Value (Details 2) (Non-recurring basis, Level 3, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Impaired loans | Appraisal Discount Method | |
Fair Value Measurements | |
Carrying amount | 1,945 |
Impaired loans | Appraisal Discount Method | Weighted Average | |
Fair Value Measurements | |
Weighted average of input | 7.10% |
Impaired loans | Discounted Cash Flow Valuation Technique | |
Fair Value Measurements | |
Carrying amount | 4,504 |
Impaired loans | Discounted Cash Flow Valuation Technique | Weighted Average | |
Fair Value Measurements | |
Weighted average of input | 5.30% |
Other Real Estate Owned | Appraisal Discount Method | |
Fair Value Measurements | |
Carrying amount | 5,032 |
Other Real Estate Owned | Appraisal Discount Method | Weighted Average | |
Fair Value Measurements | |
Weighted average of input | 14.40% |
Disclosure_of_Financial_Instru2
Disclosure of Financial Instruments Not Reported at Fair Value (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets | ||
Accrued interest receivable | $5,980 | $5,712 |
Financial liabilities | ||
Accrued interest payable | 131 | 128 |
Level 1 | ||
Financial assets | ||
Cash and short-term investments | 74,241 | 70,770 |
Accrued interest receivable | 5,980 | 5,712 |
Financial liabilities | ||
Accrued interest payable | 131 | 128 |
Level 2 | ||
Financial assets | ||
Mortgage loans held for sale | 3,876 | 1,817 |
Federal Home Loan Bank stock and other securities | 6,347 | 7,347 |
Financial liabilities | ||
Deposits | 2,124,904 | 1,983,029 |
Short-term borrowings | 116,949 | 117,910 |
Long-term borrowings | 37,714 | 35,166 |
Level 3 | ||
Financial assets | ||
Loans, net | 1,863,568 | 1,703,291 |
Carrying amount | ||
Financial assets | ||
Cash and short-term investments | 74,241 | 70,770 |
Mortgage loans held for sale | 3,747 | 1,757 |
Federal Home Loan Bank stock and other securities | 6,347 | 7,347 |
Loans, net | 1,843,630 | 1,692,828 |
Accrued interest receivable | 5,980 | 5,712 |
Financial liabilities | ||
Deposits | 2,123,627 | 1,980,937 |
Short-term borrowings | 116,949 | 117,910 |
Long-term borrowings | 36,832 | 34,329 |
Accrued interest payable | 131 | 128 |
Fair value | ||
Financial assets | ||
Cash and short-term investments | 74,241 | 70,770 |
Mortgage loans held for sale | 3,876 | 1,817 |
Federal Home Loan Bank stock and other securities | 6,347 | 7,347 |
Loans, net | 1,863,568 | 1,703,291 |
Accrued interest receivable | 5,980 | 5,712 |
Financial liabilities | ||
Deposits | 2,124,904 | 1,983,029 |
Short-term borrowings | 116,949 | 117,910 |
Long-term borrowings | 37,714 | 35,166 |
Accrued interest payable | $131 | $128 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (Undesignated, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Receiving | ||
Derivative financial instruments | ||
Notional amount | $7,217 | $5,159 |
Weighted average maturity | 6 years 9 months 18 days | 6 years 4 months 24 days |
Fair value | -401 | -275 |
Paying | ||
Derivative financial instruments | ||
Notional amount | 7,217 | 5,159 |
Weighted average maturity | 6 years 9 months 18 days | 6 years 4 months 24 days |
Fair value | $401 | $275 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (Designated as hedges, Cash flow hedges, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Interest rate swap | ||
Derivative financial instruments | ||
Notional amount | 10,000 | |
Fair value of asset | 24 | $24 |
Receiving | ||
Derivative financial instruments | ||
Receive (variable) index | US$ 3 Month LIBOR | |
Paying | ||
Derivative financial instruments | ||
Pay fixed swap rate (as a percent) | 0.72% |
Regulatory_Matters_Details
Regulatory Matters (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total risk-based capital | ||
Actual Amount | $280,228 | $252,171 |
Actual Ratio (as a percent) | 13.86% | 13.54% |
Minimum for adequately capitalized Amount | 161,748 | 148,993 |
Minimum for adequately capitalized Ratio (as a percent) | 8.00% | 8.00% |
Tier I risk-based capital | ||
Actual Amount | 255,308 | 228,827 |
Actual Ratio (as a percent) | 12.63% | 12.29% |
Minimum for adequately capitalized Amount | 80,858 | 74,476 |
Minimum for adequately capitalized Ratio (as a percent) | 4.00% | 4.00% |
Leverage | ||
Actual Amount | 255,308 | 228,827 |
Actual Ratio (as a percent) | 10.26% | 9.75% |
Minimum for adequately capitalized Amount | 74,651 | 70,408 |
Minimum for adequately capitalized Ratio (as a percent) | 3.00% | 3.00% |
Subordinated debentures, which qualified as Tier 1 capital | 255,308 | 228,827 |
Bank | ||
Total risk-based capital | ||
Actual Amount | 274,345 | 239,577 |
Actual Ratio (as a percent) | 13.59% | 12.90% |
Minimum for adequately capitalized Amount | 161,498 | 148,575 |
Minimum for adequately capitalized Ratio (as a percent) | 8.00% | 8.00% |
Minimum for well capitalized Amount | 201,873 | 185,719 |
Minimum for well capitalized Ratio (as a percent) | 10.00% | 10.00% |
Tier I risk-based capital | ||
Actual Amount | 249,425 | 219,299 |
Actual Ratio (as a percent) | 12.36% | 11.65% |
Minimum for adequately capitalized Amount | 80,720 | 75,296 |
Minimum for adequately capitalized Ratio (as a percent) | 4.00% | 4.00% |
Minimum for well capitalized Amount | 121,080 | 112,944 |
Minimum for well capitalized Ratio (as a percent) | 6.00% | 6.00% |
Leverage | ||
Actual Amount | 249,425 | 219,299 |
Actual Ratio (as a percent) | 10.04% | 9.24% |
Minimum for adequately capitalized Amount | 74,529 | 71,201 |
Minimum for adequately capitalized Ratio (as a percent) | 3.00% | 3.00% |
Minimum for well capitalized Amount | 124,216 | 118,668 |
Minimum for well capitalized Ratio (as a percent) | 5.00% | 5.00% |
Subordinated debentures, which qualified as Tier 1 capital | $249,425 | $219,299 |
SY_Bancorp_Inc_parent_company_2
S.Y. Bancorp, Inc. (parent company only) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Assets | |||||||||||||||||
Cash on deposit with subsidiary bank | $42,216 | $34,519 | $42,216 | $34,519 | |||||||||||||
Securities available for sale (amortized cost of $1,000 in 2012) | 513,056 | 490,031 | 513,056 | 490,031 | |||||||||||||
Other Assets | 47,672 | 51,824 | 47,672 | 51,824 | |||||||||||||
Total assets | 2,563,868 | 2,389,262 | 2,563,868 | 2,389,262 | |||||||||||||
Liabilities and stockholders' equity | |||||||||||||||||
Other Liabilities | 26,434 | 26,514 | 26,434 | 26,514 | |||||||||||||
Total stockholders' equity | 259,895 | 229,444 | 205,075 | 259,895 | 229,444 | 205,075 | 187,686 | ||||||||||
Total liabilities and stockholders' equity | 2,563,868 | 2,389,262 | 2,563,868 | 2,389,262 | |||||||||||||
Securities available for sale, amortized cost | 509,276 | 493,066 | 509,276 | 493,066 | |||||||||||||
Condensed Statements of Income | |||||||||||||||||
Income - interest income from securities | 7,565 | 6,099 | 5,657 | ||||||||||||||
Income before income taxes | 12,029 | 14,604 | 11,661 | 11,809 | 8,699 | 10,773 | 9,139 | 9,787 | 8,779 | 9,070 | 8,602 | 8,984 | 50,103 | 38,398 | 35,435 | ||
Income tax benefit | 3,307 | 4,715 | 3,627 | 3,632 | 2,386 | 3,091 | 2,732 | 3,019 | 2,265 | 2,388 | 2,499 | 2,482 | 15,281 | 11,228 | 9,634 | ||
Net income | 8,722 | 9,889 | 8,034 | 8,177 | 6,313 | 7,682 | 6,407 | 6,768 | 6,514 | 6,682 | 6,103 | 6,502 | 34,822 | 27,170 | 25,801 | ||
Operating activities | |||||||||||||||||
Net income | 8,722 | 9,889 | 8,034 | 8,177 | 6,313 | 7,682 | 6,407 | 6,768 | 6,514 | 6,682 | 6,103 | 6,502 | 34,822 | 27,170 | 25,801 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Share-based Compensation | 2,016 | 1,940 | 1,481 | ||||||||||||||
Excess tax benefits from share-based compensation arrangements | -378 | -265 | -83 | ||||||||||||||
Depreciation, Amortization and Accretion, Net | 7,413 | 7,969 | 4,964 | ||||||||||||||
Net cash provided by operating activities | 39,886 | 58,329 | 14,796 | ||||||||||||||
Investing activities | |||||||||||||||||
Proceeds from maturities of securities available-for-sale | 304,078 | 406,385 | 452,447 | ||||||||||||||
Cash for acquisition, net of cash acquired | 8,963 | ||||||||||||||||
Net cash used in investing activities | -169,958 | -135,868 | -89,864 | ||||||||||||||
Financing activities | |||||||||||||||||
Repayments of subordinated debentures | -30,900 | -10,000 | |||||||||||||||
Excess Tax Benefit from Share-based Compensation, Financing Activities | 378 | 265 | 83 | ||||||||||||||
Common stock repurchases | -616 | -331 | -205 | ||||||||||||||
Cash dividends paid | -12,924 | -11,670 | -10,691 | ||||||||||||||
Net cash used in financing activities | 133,543 | 80,606 | 87,851 | ||||||||||||||
Net increase in cash and cash equivalents | 3,471 | 3,067 | 12,783 | ||||||||||||||
Cash at beginning of year | 34,519 | 34,519 | |||||||||||||||
Cash at end of year | 42,216 | 34,519 | 42,216 | 34,519 | |||||||||||||
S.Y. Bancorp, Inc. | |||||||||||||||||
Assets | |||||||||||||||||
Cash on deposit with subsidiary bank | 2,926 | 7,453 | 25,904 | 2,926 | 7,453 | 25,904 | 24,966 | ||||||||||
Investment in and receivable from subsidiaries | 254,011 | 216,916 | 254,011 | 216,916 | |||||||||||||
Other Assets | 2,981 | 5,234 | 2,981 | 5,234 | |||||||||||||
Total assets | 259,918 | 229,603 | 259,918 | 229,603 | |||||||||||||
Liabilities and stockholders' equity | |||||||||||||||||
Other Liabilities | 23 | 159 | 23 | 159 | |||||||||||||
Total stockholders' equity | 259,895 | 229,444 | 259,895 | 229,444 | |||||||||||||
Total liabilities and stockholders' equity | 259,918 | 229,603 | 259,918 | 229,603 | |||||||||||||
Condensed Statements of Income | |||||||||||||||||
Income - dividends and interest from subsidiaries | 3,300 | 30,090 | 10,090 | ||||||||||||||
Income - interest income from securities | 27 | 80 | |||||||||||||||
Other income | 183 | 174 | 637 | ||||||||||||||
Expenses | 2,472 | 7,260 | 5,130 | ||||||||||||||
Income before income taxes | 1,011 | 23,031 | 5,677 | ||||||||||||||
Income tax benefit | -1,018 | -2,583 | -1,674 | ||||||||||||||
Income before equity in undistributed net income of subsidiary | 2,029 | 25,614 | 7,351 | ||||||||||||||
Equity in undistributed net (loss) income of subsidiaries | 32,793 | 1,556 | 18,450 | ||||||||||||||
Net income | 34,822 | 27,170 | 25,801 | ||||||||||||||
Operating activities | |||||||||||||||||
Net income | 34,822 | 27,170 | 25,801 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Equity in undistributed net (loss) income of subsidiaries | -32,793 | -1,556 | -18,450 | ||||||||||||||
Decrease (increase) in receivable from subsidiaries | 2,514 | -21,896 | 50 | ||||||||||||||
Share-based Compensation | 2,016 | 1,940 | 1,481 | ||||||||||||||
Excess tax benefits from share-based compensation arrangements | -378 | -265 | -83 | ||||||||||||||
Depreciation, Amortization and Accretion, Net | 45 | 1,396 | |||||||||||||||
(Increase) decrease in other assets | -179 | 4,453 | 1,963 | ||||||||||||||
Increase in other liabilities | 115 | 545 | 28 | ||||||||||||||
Net cash provided by operating activities | 6,162 | 11,787 | 10,790 | ||||||||||||||
Investing activities | |||||||||||||||||
Proceeds from maturities of securities available-for-sale | 1,000 | ||||||||||||||||
Cash for acquisition, net of cash acquired | 8,963 | ||||||||||||||||
Net cash used in investing activities | 9,963 | ||||||||||||||||
Financing activities | |||||||||||||||||
Repayments of subordinated debentures | -30,900 | ||||||||||||||||
Proceeds from stock options | 2,473 | 2,435 | 961 | ||||||||||||||
Excess Tax Benefit from Share-based Compensation, Financing Activities | 378 | 265 | 83 | ||||||||||||||
Common stock repurchases | -616 | -331 | -205 | ||||||||||||||
Cash dividends paid | -12,924 | -11,670 | -10,691 | ||||||||||||||
Net cash used in financing activities | -10,689 | -40,201 | -9,852 | ||||||||||||||
Net increase in cash and cash equivalents | -4,527 | -18,451 | 938 | ||||||||||||||
Cash at beginning of year | 7,453 | 25,904 | 7,453 | 25,904 | 24,966 | ||||||||||||
Cash at end of year | $2,926 | $7,453 | $25,904 | $2,926 | $7,453 | $25,904 | $24,966 |
Segments_Details
Segments (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Selected financial information by business segment | |||||||||||||||
Goodwill related to the 1996 purchase of a bank in southern Indiana | $682,000 | $682,000 | $682,000 | $682,000 | |||||||||||
Net interest income | 21,511,000 | 21,363,000 | 20,655,000 | 20,228,000 | 19,843,000 | 20,017,000 | 18,975,000 | 18,463,000 | 18,310,000 | 18,795,000 | 18,295,000 | 18,550,000 | 83,757,000 | 77,298,000 | 73,950,000 |
(Credit) provision for loan losses | -2,100,000 | 1,350,000 | 350,000 | 1,575,000 | 1,325,000 | 1,325,000 | 2,325,000 | 2,475,000 | 2,475,000 | 2,475,000 | 4,075,000 | -400,000 | 6,550,000 | 11,500,000 | |
Investment management and trust services | 18,212,000 | 16,287,000 | 14,278,000 | ||||||||||||
All other non-interest income | 20,943,000 | 22,715,000 | 24,179,000 | ||||||||||||
Non-interest expense | 19,255,000 | 18,709,000 | 17,701,000 | 17,544,000 | 19,380,000 | 17,571,000 | 18,822,000 | 15,579,000 | 17,183,000 | 17,045,000 | 16,508,000 | 14,736,000 | 73,209,000 | 71,352,000 | 65,472,000 |
Income before income taxes | 12,029,000 | 14,604,000 | 11,661,000 | 11,809,000 | 8,699,000 | 10,773,000 | 9,139,000 | 9,787,000 | 8,779,000 | 9,070,000 | 8,602,000 | 8,984,000 | 50,103,000 | 38,398,000 | 35,435,000 |
Income tax expense | 3,307,000 | 4,715,000 | 3,627,000 | 3,632,000 | 2,386,000 | 3,091,000 | 2,732,000 | 3,019,000 | 2,265,000 | 2,388,000 | 2,499,000 | 2,482,000 | 15,281,000 | 11,228,000 | 9,634,000 |
Net income | 8,722,000 | 9,889,000 | 8,034,000 | 8,177,000 | 6,313,000 | 7,682,000 | 6,407,000 | 6,768,000 | 6,514,000 | 6,682,000 | 6,103,000 | 6,502,000 | 34,822,000 | 27,170,000 | 25,801,000 |
Operating Segments | Commercial banking | |||||||||||||||
Selected financial information by business segment | |||||||||||||||
Goodwill related to the 1996 purchase of a bank in southern Indiana | 682,000 | 682,000 | |||||||||||||
Net interest income | 83,570,000 | 77,144,000 | 73,800,000 | ||||||||||||
(Credit) provision for loan losses | -400,000 | 6,550,000 | 11,500,000 | ||||||||||||
All other non-interest income | 20,913,000 | 22,654,000 | 24,110,000 | ||||||||||||
Non-interest expense | 62,523,000 | 61,891,000 | 57,323,000 | ||||||||||||
Income before income taxes | 42,360,000 | 31,357,000 | 29,087,000 | ||||||||||||
Income tax expense | 12,527,000 | 8,740,000 | 7,412,000 | ||||||||||||
Net income | 29,833,000 | 22,617,000 | 21,675,000 | ||||||||||||
Operating Segments | Investment management and trust | |||||||||||||||
Selected financial information by business segment | |||||||||||||||
Net interest income | 187,000 | 154,000 | 150,000 | ||||||||||||
Investment management and trust services | 18,212,000 | 16,287,000 | 14,278,000 | ||||||||||||
All other non-interest income | 30,000 | 61,000 | 69,000 | ||||||||||||
Non-interest expense | 10,686,000 | 9,461,000 | 8,149,000 | ||||||||||||
Income before income taxes | 7,743,000 | 7,041,000 | 6,348,000 | ||||||||||||
Income tax expense | 2,754,000 | 2,488,000 | 2,222,000 | ||||||||||||
Net income | $4,989,000 | $4,553,000 | $4,126,000 |
Quarterly_Operating_Results_un2
Quarterly Operating Results (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Operating Results (unaudited) | |||||||||||||||
Interest income | $22,778 | $22,692 | $22,013 | $21,604 | $22,069 | $22,267 | $21,293 | $20,835 | $22,034 | $21,692 | $21,363 | $21,812 | $89,087 | $86,464 | $86,901 |
Interest expense | 1,267 | 1,329 | 1,358 | 1,376 | 2,226 | 2,250 | 2,318 | 2,372 | 3,724 | 2,897 | 3,068 | 3,262 | 5,330 | 9,166 | 12,951 |
Net interest income | 21,511 | 21,363 | 20,655 | 20,228 | 19,843 | 20,017 | 18,975 | 18,463 | 18,310 | 18,795 | 18,295 | 18,550 | 83,757 | 77,298 | 73,950 |
(Credit) provision for loan losses | -2,100 | 1,350 | 350 | 1,575 | 1,325 | 1,325 | 2,325 | 2,475 | 2,475 | 2,475 | 4,075 | -400 | 6,550 | 11,500 | |
Net interest income after provision for loan losses | 21,511 | 23,463 | 19,305 | 19,878 | 18,268 | 18,692 | 17,650 | 16,138 | 15,835 | 16,320 | 15,820 | 14,475 | 84,157 | 70,748 | 62,450 |
Non-interest income | 9,773 | 9,850 | 10,057 | 9,475 | 9,811 | 9,652 | 10,311 | 9,228 | 10,127 | 9,795 | 9,290 | 9,245 | 39,155 | 39,002 | 38,457 |
Non-interest expenses | 19,255 | 18,709 | 17,701 | 17,544 | 19,380 | 17,571 | 18,822 | 15,579 | 17,183 | 17,045 | 16,508 | 14,736 | 73,209 | 71,352 | 65,472 |
Income before income taxes | 12,029 | 14,604 | 11,661 | 11,809 | 8,699 | 10,773 | 9,139 | 9,787 | 8,779 | 9,070 | 8,602 | 8,984 | 50,103 | 38,398 | 35,435 |
Income tax expense | 3,307 | 4,715 | 3,627 | 3,632 | 2,386 | 3,091 | 2,732 | 3,019 | 2,265 | 2,388 | 2,499 | 2,482 | 15,281 | 11,228 | 9,634 |
Net income | $8,722 | $9,889 | $8,034 | $8,177 | $6,313 | $7,682 | $6,407 | $6,768 | $6,514 | $6,682 | $6,103 | $6,502 | $34,822 | $27,170 | $25,801 |
Basic earnings per share (in dollars per share) | $0.60 | $0.68 | $0.55 | $0.56 | $0.44 | $0.53 | $0.45 | $0.49 | $0.47 | $0.48 | $0.44 | $0.47 | $2.39 | $1.91 | $1.86 |
Diluted earnings per share (in dollars per share) | $0.59 | $0.67 | $0.55 | $0.56 | $0.43 | $0.53 | $0.45 | $0.49 | $0.47 | $0.48 | $0.44 | $0.47 | $2.36 | $1.89 | $1.85 |