Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 04, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'UNION FIRST MARKET BANKSHARES CORP | ' | ' |
Entity Central Index Key | '0000883948 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Public Float | ' | ' | $494,929,402 |
Entity Common Stock, Shares Outstanding | ' | 46,858,764 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents: | ' | ' |
Cash and due from banks | $66,090 | $71,426 |
Interest-bearing deposits in other banks | 6,781 | 11,320 |
Money market investments | 1 | 1 |
Federal funds sold | 151 | 155 |
Total cash and cash equivalents | 73,023 | 82,902 |
Securities available for sale, at fair value | 677,348 | 585,382 |
Restricted stock, at cost | 26,036 | 20,687 |
Loans held for sale | 53,185 | 167,698 |
Loans, net of unearned income | 3,039,368 | 2,966,847 |
Less allowance for loan losses | 30,135 | 34,916 |
Net loans | 3,009,233 | 2,931,931 |
Bank premises and equipment, net | 82,815 | 85,409 |
Other real estate owned, net of valuation allowance | 34,116 | 32,834 |
Core deposit intangibles, net | 11,980 | 15,778 |
Goodwill | 59,400 | 59,400 |
Other assets | 149,435 | 113,844 |
Total assets | 4,176,571 | 4,095,865 |
LIABILITIES | ' | ' |
Noninterest-bearing demand deposits | 691,674 | 645,901 |
Interest-bearing deposits: | ' | ' |
NOW accounts | 498,068 | 454,150 |
Money market accounts | 940,215 | 957,130 |
Savings accounts | 235,034 | 207,846 |
Time deposits of $100,000 and over | 427,597 | 508,630 |
Other time deposits | 444,254 | 524,110 |
Total interest-bearing deposits | 2,545,168 | 2,651,866 |
Total deposits | 3,236,842 | 3,297,767 |
Securities sold under agreements to repurchase | 52,455 | 54,270 |
Other short-term borrowings | 211,500 | 78,000 |
Trust preferred capital notes | 60,310 | 60,310 |
Long-term borrowings | 139,049 | 136,815 |
Other liabilities | 38,176 | 32,840 |
Total liabilities | 3,738,332 | 3,660,002 |
Commitments and contingencies | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock, $1.33 par value, shares authorized 36,000,000; issued and outstanding, 24,976,434 shares and 25,270,970 shares, respectively. | 33,020 | 33,510 |
Surplus | 170,770 | 176,635 |
Retained earnings | 236,639 | 215,634 |
Accumulated other comprehensive (loss) income | -2,190 | 10,084 |
Total stockholders' equity | 438,239 | 435,863 |
Total liabilities and stockholders' equity | $4,176,571 | $4,095,865 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Consolidated Balance Sheets [Abstract] | ' | ' |
Common stock, par value | $1.33 | $1.33 |
Common stock, shares authorized | 36,000,000 | 36,000,000 |
Common stock, shares issued | 24,976,434 | 25,270,970 |
Common stock, shares outstanding | 24,976,434 | 25,270,970 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Interest and dividend income: | ' | ' | ' |
Interest and fees on loans | $155,547,000 | $162,637,000 | $168,479,000 |
Interest on Federal funds sold | 1,000 | 1,000 | 1,000 |
Interest on deposits in other banks | 17,000 | 62,000 | 123,000 |
Interest and dividends on securities: | ' | ' | ' |
Taxable | 8,202,000 | 11,912,000 | 13,387,000 |
Nontaxable | 8,360,000 | 7,251,000 | 7,083,000 |
Total interest and dividend income | 172,127,000 | 181,863,000 | 189,073,000 |
Interest expense: | ' | ' | ' |
Interest on deposits | 14,097,000 | 19,446,000 | 24,346,000 |
Interest on federal funds purchased | 89,000 | 50,000 | 7,000 |
Interest on short-term borrowings | 265,000 | 234,000 | 352,000 |
Interest on long-term borrowings | 6,050,000 | 7,778,000 | 8,008,000 |
Total interest expense | 20,501,000 | 27,508,000 | 32,713,000 |
Net interest income | 151,626,000 | 154,355,000 | 156,360,000 |
Provision for loan losses | 6,056,000 | 12,200,000 | 16,800,000 |
Net interest income after provision for loan losses | 145,570,000 | 142,155,000 | 139,560,000 |
Noninterest income: | ' | ' | ' |
Service charges on deposit accounts | 9,492,000 | 9,033,000 | 8,826,000 |
Other service charges, commissions and fees | 12,309,000 | 10,898,000 | 9,736,000 |
Gains on securities transactions, net | 21,000 | 190,000 | 913,000 |
Other-than-temporary impairment losses | ' | ' | -400,000 |
Gains on sales of mortgage loans, net of commissions | 11,900,000 | 16,651,000 | 11,052,000 |
(Losses) gains on sales of bank premises | -340,000 | 2,000 | -996,000 |
Other operating income | 5,346,000 | 4,294,000 | 3,833,000 |
Total noninterest income | 38,728,000 | 41,068,000 | 32,964,000 |
Noninterest expenses: | ' | ' | ' |
Salaries and benefits | 70,369,000 | 68,648,000 | 62,865,000 |
Occupancy expenses | 11,543,000 | 12,150,000 | 11,104,000 |
Furniture and equipment expenses | 6,884,000 | 7,251,000 | 6,920,000 |
Other operating expenses | 48,493,000 | 45,430,000 | 49,926,000 |
Total noninterest expenses | 137,289,000 | 133,479,000 | 130,815,000 |
Income before income taxes | 47,009,000 | 49,744,000 | 41,709,000 |
Income tax expense | 12,513,000 | 14,333,000 | 11,264,000 |
Net income | 34,496,000 | 35,411,000 | 30,445,000 |
Dividends paid and accumulated on preferred stock | ' | ' | 1,499,000 |
Accretion of discount on preferred stock | ' | ' | 1,177,000 |
Net income available to common stockholders | $34,496,000 | $35,411,000 | $27,769,000 |
Earnings per common share, basic | $1.38 | $1.37 | $1.07 |
Earnings per common share, diluted | $1.38 | $1.37 | $1.07 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $34,496 | $35,411 | $30,445 |
Other comprehensive income (loss): | ' | ' | ' |
Change in fair value of cash flow hedges | 583 | -922 | -3,233 |
Reclassification adjustment for losses included in net income (net of tax, $281, $391, and $223 for the year ended December 31, 2013, 2012, and 2011) | 524 | 726 | 415 |
Unrealized (losses) gains on securities: | ' | ' | ' |
Unrealized holding (losses) gains arising during period (net of tax, $7,198, $405, and $4,346 for the year ended December 31, 2013, 2012, and 2011) | -13,367 | 753 | 9,231 |
Reclassification adjustment for losses included in net income (net of tax, $7, $67, and $179 for the year ended December 31, 2013, 2012, and 2011) | -14 | -123 | -334 |
Other comprehensive income (loss) | -12,274 | 434 | 6,079 |
Comprehensive income | $22,222 | $35,845 | $36,524 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ' | ' | ' |
Reclassification adjustment for losses included in net income, tax | $281,000 | $391,000 | $223,000 |
Unrealized holding (losses) gains arising during period, tax | 7,198,000 | 405,000 | 4,346,000 |
Reclassification adjustment for losses included in net income, tax | $7,000 | $67,000 | $179,000 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Preferred Stock [Member] | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Discount on Preferred Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2010 | $35,595,000 | $34,532,000 | $185,763,000 | $169,801,000 | ($1,177,000) | $3,571,000 | $428,085,000 |
Net income | ' | ' | ' | 30,445,000 | ' | ' | 30,445,000 |
Other comprehensive income (loss), (net of tax) | ' | ' | ' | ' | ' | 6,079,000 | 6,079,000 |
Cash dividends on Common Stock | ' | ' | ' | -7,284,000 | ' | ' | -7,284,000 |
Tax benefit from exercise of stock awards | ' | ' | 15,000 | ' | ' | ' | 15,000 |
Stock purchased under stock repurchase plan | -35,595,000 | ' | ' | ' | ' | ' | -35,595,000 |
Dividends on preferred stock | ' | ' | ' | -1,961,000 | ' | ' | -1,961,000 |
Accretion of discount on preferred stock | ' | ' | ' | -1,177,000 | 1,177,000 | ' | ' |
Issuance of common stock under Dividend Reinvestment Plan | ' | 16,000 | 361,000 | ' | ' | ' | 377,000 |
Issuance of common stock under Equity Compensation Plan | ' | 39,000 | 158,000 | ' | ' | ' | 197,000 |
Vesting of restricted stock under Equity Compensation Plan | ' | 23,000 | -23,000 | ' | ' | ' | ' |
Issuance of common stock for services rendered | ' | 62,000 | 502,000 | ' | ' | ' | 564,000 |
Stock-based compensation expense | ' | ' | 717,000 | ' | ' | ' | 717,000 |
Balance at Dec. 31, 2011 | ' | 34,672,000 | 187,493,000 | 189,824,000 | ' | 9,650,000 | 421,639,000 |
Net income | ' | ' | ' | 35,411,000 | ' | ' | 35,411,000 |
Other comprehensive income (loss), (net of tax) | ' | ' | ' | ' | ' | 434,000 | 434,000 |
Cash dividends on Common Stock | ' | ' | ' | -8,969,000 | ' | ' | -8,969,000 |
Stock purchased under stock repurchase plan | ' | -1,291,000 | -13,154,000 | ' | ' | ' | -14,445,000 |
Issuance of common stock under Dividend Reinvestment Plan | ' | 61,000 | 571,000 | -632,000 | ' | ' | ' |
Issuance of common stock under Equity Compensation Plan | ' | 3,000 | 28,000 | ' | ' | ' | 31,000 |
Vesting of restricted stock under Equity Compensation Plan | ' | 21,000 | -21,000 | ' | ' | ' | ' |
Issuance of common stock for services rendered | ' | 49,000 | 516,000 | ' | ' | ' | 565,000 |
Net settle for taxes on Restricted Stock Awards | ' | -5,000 | -50,000 | ' | ' | ' | -55,000 |
Stock-based compensation expense | ' | ' | 1,252,000 | ' | ' | ' | 1,252,000 |
Balance at Dec. 31, 2012 | ' | 33,510,000 | 176,635,000 | 215,634,000 | ' | 10,084,000 | 435,863,000 |
Net income | ' | ' | ' | 34,496,000 | ' | ' | 34,496,000 |
Other comprehensive income (loss), (net of tax) | ' | ' | ' | ' | ' | -12,274,000 | -12,274,000 |
Cash dividends on Common Stock | ' | ' | ' | -12,535,000 | ' | ' | -12,535,000 |
Stock purchased under stock repurchase plan | ' | -664,000 | -8,835,000 | ' | ' | ' | -9,499,000 |
Issuance of common stock under Dividend Reinvestment Plan | ' | 63,000 | 893,000 | -956,000 | ' | ' | ' |
Issuance of common stock under Equity Compensation Plan | ' | 67,000 | 860,000 | ' | ' | ' | 927,000 |
Vesting of restricted stock under Equity Compensation Plan | ' | 26,000 | -26,000 | ' | ' | ' | ' |
Issuance of common stock for services rendered | ' | 25,000 | 452,000 | ' | ' | ' | 477,000 |
Net settle for taxes on Restricted Stock Awards | ' | -7,000 | -98,000 | ' | ' | ' | -105,000 |
Stock-based compensation expense | ' | ' | 889,000 | ' | ' | ' | 889,000 |
Balance at Dec. 31, 2013 | ' | $33,020,000 | $170,770,000 | $236,639,000 | ' | ($2,190,000) | $438,239,000 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other comprehensive income (loss), tax | $7,205 | $339 | $4,167 |
Stock purchased under stock repurchase plan, shares | 500,000 | 970,265 | ' |
Vesting of restricted stock under Equity Compensation Plan, shares | 19,763 | 15,492 | 17,312 |
Net settle for taxes on Restricted Stock Awards, shares | 5,059 | 3,670 | ' |
Preferred Stock [Member] | ' | ' | ' |
Stock purchased under stock repurchase plan, shares | ' | ' | 35,595 |
Common Stock [Member] | ' | ' | ' |
Dividends on common stock, per share | $0.54 | $0.37 | $0.28 |
Issuance of common stock under Dividend Reinvestment Plan, shares | 47,598 | 45,502 | 11,932 |
Issuance of common stock under Equity Compensation Plan , shares | 50,119 | 2,376 | 29,625 |
Issuance of common stock for services rendered, shares | 18,815 | 37,134 | 46,806 |
CONDENSED_CONSOLIDATED_STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Operating activities: | ' | ' | ' | |||
Net income | $34,496,000 | $35,411,000 | $30,445,000 | |||
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities: | ' | ' | ' | |||
Depreciation of bank premises and equipment | 6,024,000 | 6,631,000 | 6,715,000 | |||
Writedown of OREO | 791,000 | 301,000 | 707,000 | |||
Amortization, net | ' | ' | 400,000 | |||
Net amortization related to securities, intangibles, and software | 13,900,000 | 15,466,000 | 20,172,000 | |||
Provision for loan losses | 6,056,000 | 12,200,000 | 16,800,000 | |||
Gains on the sale of investment securities | -21,000 | -190,000 | -913,000 | |||
Deferred tax expense (benefit) | 262,000 | -195,000 | -615,000 | |||
Decrease (increase) in loans held for sale, net | 114,513,000 | -92,875,000 | -849,000 | |||
Losses on sales of other real estate owned, net | 461,000 | 631,000 | 1,065,000 | |||
Losses (gains) on bank premises, net | 340,000 | -2,000 | 996,000 | |||
Stock-based compensation expenses | 889,000 | 1,252,000 | 717,000 | |||
Issuance of common stock grants for services | 477,000 | 565,000 | 657,000 | |||
Net increase in other assets | -27,422,000 | -2,173,000 | -3,089,000 | |||
Increase in other liabilities | 6,263,000 | 987,000 | -2,160,000 | |||
Net cash and cash equivalents provided by (used in) operating activities | 157,029,000 | -21,991,000 | 71,048,000 | |||
Investing activities: | ' | ' | ' | |||
Purchases of securities available for sale | -300,324,000 | -160,751,000 | -217,643,000 | |||
Proceeds from sales of securities available for sale | 43,354,000 | 18,944,000 | 28,800,000 | |||
Proceeds from maturities, calls and paydowns of securities available for sale | 129,942,000 | 168,078,000 | 126,786,000 | |||
Net (increase) decrease in loans | -91,911,000 | -178,639,000 | 62,126,000 | |||
Net increase in bank premises and equipment | -4,759,000 | -2,102,000 | -5,466,000 | |||
Proceeds from sales of other real estate owned | 7,569,000 | 13,152,000 | 14,240,000 | |||
Improvements to other real estate owned | -561,000 | -381,000 | -528,000 | |||
Cash paid for equity-method investments | -2,000,000 | ' | ' | |||
Cash paid in bank acquisition | ' | ' | -26,437,000 | |||
Cash acquired in bank and branch acquisitions | ' | ' | 230,000 | |||
Net cash and cash equivalents used in investing activities | -218,690,000 | -141,699,000 | -17,892,000 | |||
Financing activities: | ' | ' | ' | |||
Net increase in noninterest-bearing deposits | 45,773,000 | 111,366,000 | 45,302,000 | |||
Net increase in NOW accounts | 43,918,000 | 41,545,000 | 19,374,000 | |||
Net (decrease) increase in money market accounts | -16,915,000 | 52,237,000 | 114,012,000 | |||
Net increase in savings accounts | 27,188,000 | 28,689,000 | 24,515,000 | |||
Net decrease in time deposits of $100,000 and over | -81,033,000 | -42,925,000 | -74,186,000 | |||
Net decrease in other time deposits | -79,856,000 | -68,250,000 | -72,840,000 | |||
Net (decrease) increase in short-term borrowings | 131,685,000 | 69,275,000 | -29,972,000 | |||
Net increase (decrease) in long-term borrowings | 2,234,000 | [1] | -18,566,000 | [1] | 489,000 | [1] |
Cash dividends paid - common stock | -12,535,000 | -8,969,000 | -7,284,000 | |||
Cash dividends paid - preferred stock | ' | ' | -1,961,000 | |||
Repurchase of preferred stock | ' | ' | -35,595,000 | |||
Repurchase of common stock | -9,499,000 | -14,445,000 | ' | |||
Issuance of common stock | 927,000 | 31,000 | 574,000 | |||
Taxes paid related to net share settlement of equity awards | -105,000 | -55,000 | -78,000 | |||
Net cash and cash equivalents provided by (used in) financing activities | 51,782,000 | 149,933,000 | -17,650,000 | |||
(Decrease) increase in cash and cash equivalents | -9,879,000 | -13,757,000 | 35,506,000 | |||
Cash and cash equivalents at beginning of the period | 82,902,000 | 96,659,000 | 61,153,000 | |||
Cash and cash equivalents at end of the period | 73,023,000 | 82,902,000 | 96,659,000 | |||
Cash payments for: | ' | ' | ' | |||
Interest | 21,013,000 | 27,960,000 | 33,030,000 | |||
Income taxes | 11,500,000 | 14,661,000 | 8,837,000 | |||
Supplemental schedule of noncash investing and financing activities | ' | ' | ' | |||
Unrealized (loss) gain on securities available for sale | -20,586,000 | 968,000 | -13,064,000 | |||
Changes in fair value of interest rate swap loss | 1,107,000 | -196,000 | -2,818,000 | |||
Transfers from loans to other real estate owned | 8,553,000 | 13,621,000 | 11,625,000 | |||
Transfers from bank premises to other real estate owned | 989,000 | 653,000 | ' | |||
Transactions Related to Bank Acquisitions | ' | ' | ' | |||
Assets acquired | ' | ' | 75,141,000 | |||
Liabilities assumed | ' | ' | $48,934,000 | |||
[1] | See Note 7 "Borrowings" related to 2013 activity. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
The accounting policies and practices of Union First Market Bankshares Corporation and subsidiaries conform to GAAP and follow general practices within the banking industry. Major policies and practices are described below. | |||||
Nature of Operations - Union First Market Bankshares Corporation is a financial holding company and a bank holding company headquartered in Richmond, Virginia and committed to the delivery of financial services through its community bank subsidiary Union First Market Bank and three non-bank financial services affiliates: Union Mortgage Group, Inc., providing a variety of mortgage products, Union Investment Services, Inc. providing securities, brokerage and investment advisory services, and Union Insurance Group, LLC, an insurance agency, which operates in a joint venture with Bankers Insurance, LLC, a large insurance agency owned by community banks across Virginia and managed by the Virginia Bankers Association. | |||||
Principles of Consolidation - The consolidated financial statements include the accounts of the Company, which is a financial holding company and a bank holding company that owns all of the outstanding common stock of its banking subsidiary, Union First Market Bank and of Union Investment Services, Inc. The Company also owns a non-controlling interest in The Payments Company which is accounted for under the equity method of accounting. Union Mortgage Group, Inc. is a wholly owned subsidiary of Union First Market Bank. Union First Market Bank also has a non-controlling interest in Johnson Mortgage Company, LLC, which is accounted for under the equity method of accounting. The Company’s Statutory Trust I and II, wholly owned subsidiaries of the Company, were formed for the purpose of issuing redeemable Trust Preferred Capital Notes in connection with the Company’s acquisitions of Guaranty Financial Corporation and its wholly owned subsidiary, Guaranty Bank, in May 2004 and Prosperity Bank & Trust Company in April 2006. ASC 860, Transfers and Servicing, precludes the Company from consolidating Statutory Trusts I and II. The subordinated debts payable to the trusts are reported as liabilities of the Company. All significant inter-company balances and transactions have been eliminated. | |||||
Variable Interest Entities - Current accounting guidance states that if a business enterprise is the primary beneficiary of a variable interest entity, the assets, liabilities, and results of the activities of the variable interest entity should be included in the consolidated financial statements of the business enterprise. This interpretation explains how to identify variable interest entities and how an enterprise assesses its interest in a variable interest entity to decide whether to consolidate the entity. It also requires existing unconsolidated variable interest entities to be consolidated by their primary beneficiaries if the entities do not effectively disperse risks among parties involved. Variable interest entities that effectively disperse risks will not be consolidated unless a single party holds an interest or combination of interests that effectively recombines risks that were previously dispersed. Management has evaluated the Company’s investment in variable interest entities. The Company’s primary exposure to variable interest entities are the trust preferred securities structures. | |||||
Currently, other than the impact described above from the deconsolidation of the trust preferred capital notes, this accounting guidance has not had a material impact on the financial condition or the operating results of the Company. | |||||
Use of Estimates - The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of goodwill and intangible assets, other real estate owned, deferred tax assets and liabilities, other-than-temporary impairment of securities, and the fair value of financial instruments. | |||||
Business Combinations - Business combinations are accounted for under ASC 805, Business Combinations, using the acquisition method of accounting. The acquisition method of accounting requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their fair values as of that date. To determine the fair values, the Company will continue to rely on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analyses or other valuation techniques. Under the acquisition method of accounting, the Company will identify the acquirer and the closing date and apply applicable recognition principles and conditions. Costs that the Company expects, but is not obligated to incur in the future, to effect its plan to exit an activity of an acquiree or to terminate the employment of or relocate an acquiree’s employees are not liabilities at the acquisition date. The Company will not recognize these costs as part of applying the acquisition method. Instead, the Company will recognize these costs in its post-combination financial statements in accordance with other applicable accounting guidance. | |||||
Acquisition-related costs are costs the Company incurs to effect a business combination. Those costs include advisory, legal, accounting, valuation, and other professional or consulting fees. Some other examples of costs to the Company include systems conversions, integration planning consultants, and advertising costs. The Company will account for acquisition-related costs as expenses in the periods in which the costs are incurred and the services are received, with one exception. The costs to issue debt or equity securities will be recognized in accordance with other applicable accounting guidance. These acquisition-related costs are included within the Consolidated Statements of Income classified within the noninterest expense caption. | |||||
On January 1, 2014, the Company completed the acquisition of StellarOne, a bank holding company based in Charlottesville, Virginia, in an all stock transaction. Additional information on this acquisition is disclosed in Note 20, “Subsequent Events.” | |||||
Cash and Cash Equivalents - For purposes of reporting cash flows, the Company defines cash and cash equivalents as cash, cash due from banks, interest-bearing deposits in other banks, money market investments, other interest-bearing deposits, and federal funds sold. | |||||
Investment Securities - Securities classified as available for sale are those debt and equity securities that management intends to hold for an indefinite period of time, including securities used as part of the Company’s asset/liability strategy, and that may be sold in response to changes in interest rates, liquidity needs, or other similar factors. Securities available for sale are reported at fair value, with unrealized gains or losses, net of deferred taxes, included in accumulated other comprehensive income in stockholders’ equity. | |||||
Debt securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. The Company has no securities in this category. | |||||
Securities classified as held for trading are those debt and equity securities that are bought and held principally for the purpose of selling them in the near term and are reported at fair value, with unrealized gains and losses included in earnings. The Company has no securities in this category. | |||||
Purchased premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, an impairment is other-than-temporary if any of the following conditions exist: the entity intends to sell the security; it is more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis; or, the entity does not expect to recover the security’s entire amortized cost basis (even if the entity does not intend to sell). If a credit loss exists, but an entity does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, the impairment is other-than-temporary and should be separated into a credit portion to be recognized in earnings and the remaining amount relating to all other factors recognized as other comprehensive loss. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. | |||||
Due to restrictions placed upon the Company’s common stock investment in the Federal Reserve Bank and FHLB, these securities have been classified as restricted equity securities and carried at cost. These restricted securities are not subject to the investment security classifications. The FHLB requires the Bank to maintain stock in an amount equal to 4.5% of outstanding borrowings and a specific percentage of the member’s total assets. The Federal Reserve Bank of Richmond requires the Company to maintain stock with a par value equal to 6% of its outstanding capital. | |||||
Loans Held for Sale - Loans originated and intended for sale in the secondary market are sold, servicing released, and carried at the lower of cost or estimated fair value, which is determined in the aggregate based on sales commitments to permanent investors or on current market rates for loans of similar quality and type. In addition, the Company requires a firm purchase commitment from a permanent investor before a loan can be closed, thus limiting interest rate risk. As a result, loans held for sale are stated at fair value. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. | |||||
Loans - The Company originates commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by commercial and residential real estate loans (including acquisition and development loans and residential construction loans) throughout its market area. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in those markets. | |||||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for any charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. | |||||
The Company has two loan portfolio level segments and fourteen loan class levels for reporting purposes. The two loan portfolio level segments are commercial and consumer. | |||||
Within the commercial loan portfolio segment there are seven loan classes for reporting purposes: commercial construction, commercial real estate – owner occupied, commercial real estate – non owner occupied, raw land and lots, single family investment real estate, commercial and industrial, and other commercial. | |||||
Commercial construction loans are generally made to commercial and residential builders for specific construction projects. The successful repayment of these types of loans is generally dependent upon (a) a pre-planned commitment for permanent financing from the Company or another lender, or (b) from the sale of the constructed property. These loans carry more risk than both types of commercial real estate term loans due to the dynamics of construction projects, changes in interest rates, the long-term financing market, and state and local government regulations. As in commercial real estate term lending, the Company manages risk by using specific underwriting policies and procedures for these types of loans and by avoiding concentrations to any one business or industry. | |||||
Commercial real estate – owner occupied loans are term loans made to support owner occupied real estate properties that rely upon the successful operation of the business occupying the property for repayment. General market conditions and economic activity may affect these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by avoiding concentrations to any one business or industry. | |||||
Commercial real estate – non-owner occupied loans are term loans typically made to borrowers to support income producing properties that rely upon the successful operation of the property for repayment. General market conditions and economic activity may impact the performance of these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by diversifying the lending to various lines of businesses, such as retail, office, multi-family, office warehouse, and hotel as well as avoiding concentrations to any one business or industry. | |||||
Raw land and lot loans are loans generally made to residential home builders to support their land and lot inventory needs. Repayment relies upon the successful performance of the underlying residential real estate project. This type of lending carries a higher level of risk as compared to other commercial lending. This class of lending manages risks related to residential real estate market conditions, a functioning first and secondary market in which to sell residential properties, and the borrower’s ability to manage inventory and run projects. The Company manages this risk by lending to experienced builders and developers, by using specific underwriting policies and procedures for these types of loans, and by avoiding concentrations with any particular customer or geographic region. | |||||
Single family investment real estate loans are term loans made to real estate investors to support permanent financing for single family residential income producing properties that rely on the successful operation of the property for repayment. This management mainly involves property maintenance and collection of rents due from tenants. This type of lending carries a lower level of risk as compared to other commercial lending. The Company manages this risk by avoiding concentrations with any particular customer or geographic region. | |||||
Commercial and industrial loans generally support our borrowers need for equipment/vehicle purchases and other short-term or seasonal cash flow needs. Repayment relies upon the successful operation of the business. This type of lending carries a lower level of commercial credit risk as compared to other commercial lending within this segment of lending. The Company manages this risk by using general underwriting policies and procedures for these types of loans and by avoiding concentrations to any one business or industry. | |||||
Other commercial loans generally support small business lines of credit and agricultural lending neither of which are a material source of business for the Company. | |||||
The consumer loan portfolio segment is comprised of seven classes; mortgage, consumer construction, indirect auto, indirect marine, HELOCs, credit card, and other consumer. These are generally small loans spread across many borrowers, supported by computer-based loan approval systems and business line policies and procedures that aid in managing risk. The Company’s consumer portfolio consists principally of loans secured by real estate, followed by indirect auto lending and indirect marine lending. | |||||
The Company manages the unique risks related to consumer construction to acceptable levels through certain policies and procedures, such as limiting loan-to-value ratios at loan origination, requiring standards for appraisers, and not making subprime loans under any circumstances. | |||||
The indirect auto lending generally carries certain risks associated with the values of the collateral that management must mitigate. The Company focuses its indirect auto lending on one to two year old used vehicles where substantial depreciation has already occurred thereby minimizing the risk of significant loss of collateral values in the future. This type of lending places reliance on computer-based loan approval systems to supplement other underwriting standards. | |||||
The indirect marine lending is to borrowers that are well qualified with ample capacity to repay and typically lends against large marine vessels (i.e., yachts). Risks in this class of lending are generally related to the borrower’s ability to guard against the effects of economic downturns or sustained levels of unemployment. This type of lending places reliance on computer-based loan approval systems to supplement other underwriting standards. | |||||
Nonaccruals, Past Dues, and Charge-offs | |||||
The policy for placing commercial loans on nonaccrual status is generally when the loan is 90 days delinquent unless the credit is well secured and in process of collection but, in any event, no later than 180 days past due. Consumer loans are typically charged-off when management judges the loan to be uncollectible or the borrower files for bankruptcy but no later than 120 days past due and generally not placed on nonaccrual status prior to charge off. Commercial loans are typically written down to net realizable value when it is determined that the Company will be unable to collect the principal amount in full and the amount is a confirmed loss, in any event no later than 180 days past due. All classes of loans are considered past due or delinquent when a contractual payment has not been satisfied. In all cases, loans are placed on nonaccrual status or charged off at an earlier date if collection of principal and interest is considered doubtful and in accordance with regulatory requirements. | |||||
For both the commercial and consumer loan segments, all interest accrued but not collected for loans placed on nonaccrual status or charged-off is reversed against interest income and accrual of interest income is terminated. Payments and interest on these loans are accounted for using the cost-recovery method by applying all payments received as a reduction to the outstanding principal balance until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The determination of future payments being reasonably assured varies depending on the circumstances present with the loan; however, the timely payment of contractual amounts owed for six consecutive months is a primary indicator. In addition, the return of a loan to accrual status is considered and approved by the Company’s Special Assets Loan Committee. | |||||
Allowance for Loan Losses | |||||
The provision for loan losses charged to operations is an amount sufficient to bring the allowance for loan losses to an estimated balance that management considers adequate to absorb potential losses in the portfolio. Loans are charged against the allowance when management believes the collectability of the principal is unlikely. Recoveries of amounts previously charged-off are credited to the allowance. Management’s determination of the adequacy of the allowance is based on an evaluation of the composition of the loan portfolio, the value and adequacy of collateral, current economic conditions, historical loan loss experience, and other risk factors. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions, particularly those affecting real estate values. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. | |||||
The Company performs regular credit reviews of the loan portfolio to review the credit quality and adherence to its underwriting standards. The credit reviews consist of reviews by its Internal Audit group and reviews performed by an independent third party. Upon origination, each commercial loan is assigned a risk rating ranging from one to nine, with loans closer to one having less risk, and this risk rating scale is the Company’s primary credit quality indicator. Consumer loans are generally not risk rated; the primary credit quality indicator for this portfolio segment is delinquency status. The Company has various committees that review and ensure that the allowance for loan losses methodology is in accordance with GAAP and loss factors used appropriately reflect the risk characteristics of the loan portfolio. | |||||
The Company’s ALL consists of specific, general, and unallocated components. | |||||
Specific Reserve Component - The specific reserve component relates to impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Upon being identified as impaired, for loans not considered to be collateral dependent, an allowance is established when the discounted cash flows of the impaired loan are lower than the carrying value of that loan. Nonaccrual loans under $100,000 and other impaired loans under $500,000 are aggregated based on similar risk characteristics. The level of credit impairment within the pool(s) is determined based on historical loss factors for loans with similar risk characteristics, taking into consideration environmental factors specifically related to the underlying pool. The impairment of collateral dependent loans is measured based on the fair value of the underlying collateral (based on independent appraisals), less selling costs, compared to the carrying value of the loan. If the Company determines that the value of an impaired collateral dependent loan is less than the recorded investment in the loan, it either recognizes an impairment reserve as a specific component to be provided for in the allowance for loan losses or charges off the deficiency if it is determined that such amount represents a confirmed loss. Typically, a loss is confirmed when the Company is moving towards foreclosure (or final disposition) of the underlying collateral, the collateral deficiency has not improved for two consecutive quarters, or when there is a payment default of 180 days, whichever occurs first. | |||||
The Company obtains independent appraisals from a pre-approved list of independent, third party appraisal firms located in the market in which the collateral is located. The Company’s approved appraiser list is continuously maintained to ensure the list only includes such appraisers that have the experience, reputation, character, and knowledge of the respective real estate market. At a minimum, it is ascertained that the appraiser is currently licensed in the state in which the property is located, experienced in the appraisal of properties similar to the property being appraised, has knowledge of current real estate market conditions and financing trends, and is reputable. The Company’s internal Real Estate Valuation Group, which reports to the Risk and Compliance Group, performs either a technical or administrative review of all appraisals obtained. A technical review will ensure the overall quality of the appraisal, while an administrative review ensures that all of the required components of an appraisal are present. Generally, independent appraisals are updated every 12 to 24 months or as necessary. The Company’s impairment analysis documents the date of the appraisal used in the analysis, whether the officer preparing the report deems it current, and, if not, allows for internal valuation adjustments with justification. Adjustments to appraisals generally include discounts for continued market deterioration subsequent to the appraisal date. Any adjustments from the appraised value to carrying value are documented in the impairment analysis, which is reviewed and approved by senior credit administration officers and the Special Assets Loan Committee. External appraisals are the primary source to value collateral dependent loans; however, the Company may also utilize values obtained through broker price opinions or other valuations sources. These alternative sources of value are used only if deemed to be more representative of value based on updated information regarding collateral resolution. Impairment analyses are updated, reviewed, and approved on a quarterly basis at or near the end of each reporting period. | |||||
General Reserve Component - The general reserve component covers non-impaired loans and is derived from an estimate of credit losses adjusted for various environmental factors applicable to both commercial and consumer loan segments. The estimate of credit losses is a function of the product of net charge-off historical loss experience to the loan balance of the loan portfolio averaged during the preceding twelve quarters, as management has determined this to adequately reflect the losses inherent in the loan portfolio. The environmental factors consist of national, local, and portfolio characteristics and are applied to both the commercial and consumer segments. The following table shows the types of environmental factors management considers: | |||||
ENVIRONMENTAL FACTORS | |||||
Portfolio | National | Local | |||
Experience and ability of lending team | Interest rates | Level of economic activity | |||
Depth of lending team | Inflation | Unemployment | |||
Pace of loan growth | Unemployment | Competition | |||
Franchise expansion | Gross domestic product | Military/government impact | |||
Execution of loan risk rating process | General market risk and other concerns | ||||
Degree of oversight / underwriting standards | Legislative and regulatory environment | ||||
Value of real estate serving as collateral | |||||
Delinquency levels in portfolio | |||||
Charge-off levels in portfolio | |||||
Credit concentrations / nature and volume | |||||
of the portfolio | |||||
Unallocated Component - This component may be used to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Together, the specific, general, and any unallocated allowance for loan loss represents management’s estimate of losses inherent in the current loan portfolio. Though provisions for loan losses may be based on specific loans, the entire allowance for loan losses is available for any loan management deems necessary to charge-off. At December 31, 2013, there were no material amounts considered unallocated as part of the allowance for loan losses. | |||||
Impaired Loans | |||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. A loan that is classified substandard or worse is considered impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. The impairment loan policy is the same for each of the seven classes within the commercial portfolio segment. | |||||
For the consumer loan portfolio segment, large groups of smaller balance homogeneous loans are collectively evaluated for impairment. This evaluation subjects each of the Company’s homogenous pools to a historical loss factor derived from net charge-offs experienced over the preceding twelve quarters. | |||||
The Company applies payments received on impaired loans to principal and interest based on the contractual terms until they are placed on nonaccrual status at which time all payments received are applied to reduce the principal balance and recognition of interest income is terminated as previously discussed. | |||||
Troubled Debt Restructurings - In situations where, for economic or legal reasons related to a borrower’s financial condition, management may grant a concession to the borrower that it would not otherwise consider, the related loan is classified as a TDR. Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, extension of terms that are considered to be below market, conversion to interest only, and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. Restructured loans for which there was no rate concession, and therefore made at a market rate of interest, may subsequently be eligible to be removed from TDR status in periods subsequent to the restructuring depending on the performance of the loan. The Company reviews previously restructured loans quarterly in order to determine whether any have performed, subsequent to the restructure, at a level that would allow for them to be removed from TDR status. The Company generally would consider a change in this classification if the loan has performed under the restructured terms for a consecutive twelve month period and is no longer considered to be impaired. Loans removed from TDR status are collectively evaluated for impairment and due to the significant improvement in the expected future cash flows, these loans are grouped based on their primary risk characteristics, typically using the Company’s internal risk rating system as its primary credit quality indicator, and impairment is measured based on historical loss experience taking into consideration environmental factors. | |||||
Bank Premises and Equipment - Land is carried at cost. Bank premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method based on the type of asset involved. The Company’s policy is to capitalize additions and improvements and to depreciate the cost thereof over their estimated useful lives ranging from 3 to 40 years. Leasehold improvements are amortized over the shorter of the life of the related lease or the estimated life of the related asset. Maintenance, repairs, and renewals are expensed as they are incurred. | |||||
Goodwill and Intangible Assets - The Company’s intangible assets are comprised of goodwill and other intangible assets that were acquired in business combinations. ASC 350, Intangibles-Goodwill and Other, prescribes accounting for goodwill and intangible assets subsequent to initial recognition. The provisions of ASC 350 discontinue the amortization of goodwill and intangible assets with indefinite lives but require at least an annual impairment review and more frequently if certain impairment indicators are in evidence. The Company has determined that core deposit intangibles have a finite life, and therefore, will continue to be amortized over their estimated useful life. | |||||
The Company performed its annual impairment testing in the second quarter of 2013 and determined that there was no impairment to its goodwill or intangible assets. Subsequently, the Company determined that an additional evaluation was necessary at year-end due to potential indicators based on the net losses recorded at the mortgage company during the last two quarters of the year. Based on this additional testing, the Company still has recorded no impairment charges to date for goodwill or intangible assets. | |||||
Other Real Estate Owned - Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis. When the carrying amount exceeds the acquisition date fair value less selling costs, the excess is charged off against the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell, any valuation adjustments occurring from post acquisition reviews are charged to expense as incurred. Revenue and expenses from operations and changes in the valuation allowance are included in OREO and credit-related costs disclosed in Note 14, “Other Operating Expenses.” | |||||
Transfers of Financial Assets - Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. | |||||
Bank Owned Life Insurance - The Company has purchased life insurance on certain key employees and directors. These policies are recorded at their cash surrender value ($86.8 million and $54.8 million at December 31, 2013 and 2012, respectively) and are included in “Other assets” on the Consolidated Balance Sheet. Income generated from polices is recorded as noninterest income. | |||||
Derivatives - Derivatives are recognized as assets and liabilities on the Consolidated Balance Sheet and measured at fair value. The Company’s derivatives are interest rate swap agreements. For asset/liability management purposes, the Company uses interest rate swap agreements to hedge various exposures or to modify the interest rate characteristics of various balance sheet accounts. For those derivatives designated as a cash flow hedge, the effective portion of the derivative’s unrealized gain or loss is recorded as a component of other comprehensive income. For the Company’s loan swaps, offsetting fair values are recorded in other assets and other liabilities with no net effect on other operating income. | |||||
Loan Fees - Fees collected and certain costs incurred related to loan originations are deferred and amortized as an adjustment to interest income over the life of the related loans. Deferred fees and costs are recorded as an adjustment to loans outstanding using a method that approximates a constant yield. | |||||
Stock Compensation Plan - The Company has adopted ASC 718, Compensation – Stock Compensation, which requires the costs resulting from all stock-based payments to employees be recognized in the financial statements. For stock options, compensation cost is estimated at the date of grant, using the Black-Scholes option valuation model for determining fair value of stock options. No options were granted in 2013. The market price of the Company’s common stock at the date of grant is used for nonvested stock awards. The Black–Scholes model employs the following assumptions: | |||||
•Dividend yield - calculated as the ratio of historical dividends paid per share of common stock to the stock price on the date of grant; | |||||
• Expected life (term of the option) - based on the average of the contractual life and vesting schedule for the respective option; | |||||
• Expected volatility - based on the monthly historical volatility of the Company’s stock price over the expected life of the options; and | |||||
• Risk-free interest rate - based upon the Treasury bill yield curve, for periods within the contractual life of the option, in effect at the time of grant. | |||||
ASC 718 requires the Company to estimate forfeitures when recognizing compensation expense and that this estimate of forfeitures be adjusted over the requisite service period or vesting schedule based on the extent to which actual forfeitures differ from such estimates. Changes in estimated forfeitures are recognized through a cumulative catch-up adjustment, which is recognized in the period of change, and also will affect the amount of estimated unamortized compensation expense to be recognized in future periods. | |||||
For more information and tables refer to Note 13, “Employee Benefits.” | |||||
Income Taxes - Deferred income tax assets and liabilities are determined using the asset and liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. Deferred taxes are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely to be realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying Consolidated Balance Sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. | |||||
Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the Consolidated Statements of Income. The Company did not record any material interest or penalties for the periods ending December 31, 2013, 2012, or 2011 related to tax positions taken. As of December 31, 2013 and 2012 there were no accruals for uncertain tax positions. The Company and its wholly-owned subsidiaries file a consolidated income tax return. Each entity provides for income taxes based on its contribution to income or loss of the consolidated group. The Internal Revenue Service has examined the Company’s 2010 and 2009 tax returns. | |||||
Advertising Costs - The Company follows a policy of charging the cost of advertising to expense as incurred. Advertising costs are disclosed in Note 14, “Other Operating Expenses.” | |||||
Earnings Per Common Share – Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the year. Net income available to common stockholders deducts from net income the dividends and discount accretion on preferred stock. Diluted earnings per common share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and nonvested stock and are determined using the treasury stock method. | |||||
Comprehensive Income (Loss) - Comprehensive income (loss) represents all changes in equity that result from recognized transactions and other economic events of the period. Other comprehensive income (loss) refers to revenues, expenses, gains, and losses under GAAP that are included in comprehensive income but excluded from net income, such as unrealized gains and losses on certain investments in debt and equity securities and interest rate swaps. | |||||
Off Balance Sheet Credit Related Financial Instruments - In the ordinary course of business, the Company has entered into commitments to extend credit and standby letters of credit. Such financial instruments are recorded when they are funded. | |||||
Rate Lock Commitments - The Company enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. The period of time between issuance of a loan commitment, closing, and sale of the loan generally ranges from 30 to 120 days. The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Company is not exposed to material losses and will not realize significant gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitments and the best efforts contracts is high due to their similarity. | |||||
The market value of rate lock commitments and best efforts contracts is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Company determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the value of the underlying asset while taking into consideration the probability that the rate lock commitments will close. Because of the high correlation between rate lock commitments and best efforts contracts, no material gain or loss occurs on the rate lock commitments. | |||||
Asset Prepayment Rates - The Company purchases amortizing loan pools and investment securities in which the underlying assets are residential mortgage loans subject to prepayments. The actual principal reduction on these assets varies from the expected contractual principal reduction due to principal prepayments resulting from the borrowers’ election to refinance the underlying mortgage based on market and other conditions. The purchase premiums and discounts associated with these assets are amortized or accreted to interest income over the estimated life of the related assets. The estimated life is calculated by projecting future prepayments and the resulting principal cash flows until maturity. Prepayment rate projections utilize actual prepayment speed experience and available market information on similar instruments. The prepayment rates form the basis for income recognition of premiums and discounts on the related assets. Changes in prepayment estimates may cause the earnings recognized on these assets to vary over the term that the assets are held, creating volatility in the net interest margin. Prepayment rate assumptions are monitored monthly and updated periodically to reflect actual activity and the most recent market projections. | |||||
Concentrations of Credit Risk - Most of the Company’s activities are with customers located in portions of Central and Tidewater Virginia. Securities available for sale and loans also represent concentrations of credit risk and are discussed in Note 2 “Securities” and Note 3 “Loans and Allowance for Loan Losses,” respectively. | |||||
Recent Accounting Pronouncements - In December 2011, FASB issued ASU 2011-11, “Balance Sheet (Topic 210) – Disclosures about Offsetting Assets and Liabilities.” This ASU requires entities to disclose both gross information and net information about both instruments and transactions eligible for offset in the balance sheet and instruments and transactions subject to an agreement similar to a master netting arrangement. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. The adoption of ASU 2011-11 did not have a material impact on the Company's consolidated financial statements. | |||||
In July 2012, the FASB issued ASU 2012-02, “Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment.” The amendments in this ASU apply to all entities that have indefinite-lived intangible assets, other than goodwill, reported in their financial statements. The amendments in this ASU provide an entity with the option to make a qualitative assessment about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it should perform a quantitative impairment test. The amendments also enhance the consistency of impairment testing guidance among long-lived asset categories by permitting an entity to assess qualitative factors to determine whether it is necessary to calculate the asset’s fair value when testing an indefinite-lived intangible asset for impairment. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of ASU 2012-02 did not have a material impact on the Company's consolidated financial statements. | |||||
In January 2013, the FASB issued ASU 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The amendments in this ASU clarify the scope for derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to netting arrangements. An entity is required to apply the amendments for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The adoption of ASU 2013-01 did not have a material impact on the Company's consolidated financial statements. | |||||
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The amendments in this ASU require an entity to present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income. In addition, the amendments require a cross-reference to other disclosures currently required for other reclassification items to be reclassified directly to net income in their entirety in the same reporting period. Companies should apply these amendments for fiscal years, and interim periods within those years, beginning on or after December 15, 2012. The Company has included the required disclosures from ASU 2013-02 in the consolidated financial statements. | |||||
In July 2013, the FASB issued ASU 2013-10, “Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes.” The amendments in this ASU permit the Fed Funds Effective Swap Rate (also referred to as the Overnight Index Swap Rate) to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to interest rates on direct Treasury obligations of the U.S. government and the LIBOR. The amendments also remove the restriction on using different benchmark rates for similar hedges. The amendments apply to all entities that elect to apply hedge accounting of the benchmark interest rate under Topic 815. The amendments are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of ASU 2013-10 did not have a material impact on the Company's consolidated financial statements. | |||||
In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The amendments in this ASU provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The Company does not expect the adoption of ASU 2013-11 to have a material impact on its consolidated financial statements. | |||||
In January 2014, the FASB issued ASU 2014-01, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this ASU should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company is currently assessing the impact that ASU 2014-01 will have on its consolidated financial statements. | |||||
In January 2014, the FASB issued ASU 2014-04, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company is currently assessing the impact that ASU 2014-04 will have on its consolidated financial statements. | |||||
SECURITIES
SECURITIES | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
SECURITIES [Abstract] | ' | |||||||||||||||||
SECURITIES | ' | |||||||||||||||||
2.SECURITIES | ||||||||||||||||||
The amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities as of December 31, 2013 and 2012 are summarized as follows (dollars in thousands): | ||||||||||||||||||
Amortized | Gross Unrealized | Estimated | ||||||||||||||||
Cost | Gains | (Losses) | Fair Value | |||||||||||||||
31-Dec-13 | ||||||||||||||||||
U.S. government and agency securities | $ | 1,654 | $ | 499 | $ | - | $ | 2,153 | ||||||||||
Obligations of states and political subdivisions | 255,335 | 6,107 | -6,612 | 254,830 | ||||||||||||||
Corporate and other bonds | 9,479 | 115 | -160 | 9,434 | ||||||||||||||
Mortgage-backed securities | 405,389 | 4,954 | -2,981 | 407,362 | ||||||||||||||
Other securities | 3,617 | 26 | -74 | 3,569 | ||||||||||||||
Total securities | $ | 675,474 | $ | 11,701 | $ | -9,827 | $ | 677,348 | ||||||||||
31-Dec-12 | ||||||||||||||||||
U.S. government and agency securities | $ | 2,581 | $ | 268 | $ | - | $ | 2,849 | ||||||||||
Obligations of states and political subdivisions | 214,980 | 15,123 | -325 | 229,778 | ||||||||||||||
Corporate and other bonds | 7,353 | 173 | -314 | 7,212 | ||||||||||||||
Mortgage-backed securities | 335,327 | 7,383 | -536 | 342,174 | ||||||||||||||
Other securities | 3,277 | 92 | - | 3,369 | ||||||||||||||
Total securities | $ | 563,518 | $ | 23,039 | $ | -1,175 | $ | 585,382 | ||||||||||
Due to restrictions placed upon the Company’s common stock investment in the Federal Reserve Bank of Richmond and FHLB, these securities have been classified as restricted equity securities and carried at cost. These restricted securities are not subject to the investment security classifications and are included as a separate line item on the Company’s Consolidated Balance Sheet. The FHLB requires the Bank to maintain stock in an amount equal to 4.5% of outstanding borrowings and a specific percentage of the Bank’s total assets. The Federal Reserve Bank of Richmond requires the Company to maintain stock with a par value equal to 6% of its outstanding capital. Restricted equity securities consist of Federal Reserve Bank stock in the amount of $6.7 million and $6.8 million as of December 31, 2013 and 2012 and FHLB stock in the amount of $19.3 million and $13.9 million as of December 31, 2013 and 2012, respectively. | ||||||||||||||||||
The following table shows the gross unrealized losses and fair value (in thousands) of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired. These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. | ||||||||||||||||||
Less than 12 months | More than 12 months | Total | ||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||
31-Dec-13 | ||||||||||||||||||
Obligations of states and political subdivisions | $ | 80,368 | $ | -5,504 | $ | 8,886 | $ | -1,108 | $ | 89,254 | $ | -6,612 | ||||||
Mortgage-backed securities | 168,297 | -2,806 | 24,254 | -175 | 192,551 | -2,981 | ||||||||||||
Corporate bonds and other securities | 6,804 | -80 | 1,720 | -154 | 8,524 | -234 | ||||||||||||
Totals | $ | 255,469 | $ | -8,390 | $ | 34,860 | $ | -1,437 | $ | 290,329 | $ | -9,827 | ||||||
31-Dec-12 | ||||||||||||||||||
Obligations of states and political subdivisions | $ | 22,397 | $ | -283 | $ | 649 | $ | -42 | $ | 23,046 | $ | -325 | ||||||
Mortgage-backed securities | 86,183 | -536 | - | - | 86,183 | -536 | ||||||||||||
Corporate bonds and other securities | - | - | 1,555 | -314 | 1,555 | -314 | ||||||||||||
Totals | $ | 108,580 | $ | -819 | $ | 2,204 | $ | -356 | $ | 110,784 | $ | -1,175 | ||||||
The primary purpose of the investment portfolio is to generate income and meet liquidity needs of the Company through readily saleable financial instruments. The portfolio includes fixed rate bonds, whose prices move inversely with rates. At the end of any accounting period, the investment portfolio has unrealized gains and losses. The Company monitors the portfolio, which is subject to liquidity needs, market rate changes, and credit risk changes, to see if adjustments are needed. The primary cause of temporary impairments was the increase in spreads over comparable Treasury bonds. As of December 31, 2013, there were $34.9 million, or 23 issues, of individual securities that had been in a continuous loss position for more than 12 months. Additionally, these securities had an unrealized loss of $1.4 million and consisted of municipal obligations, mortgage-backed securities, corporate bonds, and other securities. As of December 31, 2012, there were $2.2 million, or 2 issues, of individual securities that had been in a continuous loss position for more than 12 months. Additionally, these securities had an unrealized loss of $356,000 and consisted of municipal obligations and corporate bonds. | ||||||||||||||||||
The following table presents the amortized cost and estimated fair value of securities as of December 31, 2013 and 2012, by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||
Amortized | Estimated | Amortized | Estimated | |||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||||
Due in one year or less | $ | 6,791 | $ | 6,796 | $ | 5,623 | $ | 5,741 | ||||||||||
Due after one year through five years | 21,666 | 22,497 | 16,413 | 17,016 | ||||||||||||||
Due after five years through ten years | 116,735 | 119,269 | 69,164 | 73,501 | ||||||||||||||
Due after ten years | 530,282 | 528,786 | 472,318 | 489,124 | ||||||||||||||
Total securities available for sale | $ | 675,474 | $ | 677,348 | $ | 563,518 | $ | 585,382 | ||||||||||
Securities with an amortized cost of $186.6 million and $183.7 million as of December 31, 2013 and 2012, respectively, were pledged to secure public deposits, repurchase agreements, and for other purposes. | ||||||||||||||||||
During each quarter the Company conducts an assessment of the securities portfolio for OTTI consideration. The assessment considers factors such as external credit ratings, delinquency coverage ratios, market price, management’s judgment, expectations of future performance, and relevant industry research and analysis. An impairment is other-than-temporary if any of the following conditions exist: the entity intends to sell the security; it is more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis; or the entity does not expect to recover the security’s entire amortized cost basis (even if the entity does not intend to sell). If a credit loss exists, but an entity does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, the impairment is other-than-temporary and should be separated into a credit portion to be recognized in earnings and the remaining amount relating to all other factors recognized as other comprehensive loss. Based on the assessment for the year ended December 31, 2013, and in accordance with the guidance, no OTTI was recognized. | ||||||||||||||||||
Based on the assessment for the quarter ended September 30, 2011 and in accordance with the guidance, the Company determined that a single issuer trust preferred security incurred credit-related OTTI of $400,000, which was recognized in earnings for the quarter ended September 30, 2011. There is a possibility that the Company will sell the security before recovering all unamortized costs. The significant inputs the Company considered in determining the amount of the credit loss are as follows: | ||||||||||||||||||
· | The assessment of security credit rating agencies and research performed by third parties; | |||||||||||||||||
· | The continued interest payment deferral by the issuer; | |||||||||||||||||
· | The lack of improving asset quality of the issuer and worsening economic conditions; and | |||||||||||||||||
· | The security is thinly traded and trading at its historical low, below par. | |||||||||||||||||
OTTI recognized for the periods presented is summarized as follow (dollars in thousands): | ||||||||||||||||||
OTTI Losses | ||||||||||||||||||
Cumulative credit losses on investment securities, through December 31, 2012 | $ | 400 | ||||||||||||||||
Cumulative credit losses on investment securities | - | |||||||||||||||||
Additions for credit losses not previously recognized | - | |||||||||||||||||
Cumulative credit losses on investment securities, through December 31, 2013 | $ | 400 | ||||||||||||||||
LOANS_AND_ALLOWANCE_FOR_LOAN_L
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | ' | |||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES | ' | |||||||||||||||||||||||
3.LOANS AND ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||||
Loans are stated at their face amount, net of unearned income, and consist of the following at December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | $ | 213,675 | $ | 202,344 | ||||||||||||||||||||
Commercial Real Estate - Owner Occupied | 500,764 | 513,671 | ||||||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 755,905 | 682,760 | ||||||||||||||||||||||
Raw Land and Lots | 187,529 | 205,726 | ||||||||||||||||||||||
Single Family Investment Real Estate | 237,640 | 233,395 | ||||||||||||||||||||||
Commercial and Industrial | 215,702 | 217,661 | ||||||||||||||||||||||
Other Commercial | 52,490 | 47,551 | ||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 237,414 | 220,567 | ||||||||||||||||||||||
Consumer Construction | 48,984 | 33,969 | ||||||||||||||||||||||
Indirect Auto | 174,843 | 157,518 | ||||||||||||||||||||||
Indirect Marine | 38,633 | 36,586 | ||||||||||||||||||||||
HELOCs | 281,579 | 288,092 | ||||||||||||||||||||||
Credit Card | 23,211 | 21,968 | ||||||||||||||||||||||
Other Consumer | 70,999 | 105,039 | ||||||||||||||||||||||
Total | $ | 3,039,368 | $ | 2,966,847 | ||||||||||||||||||||
The following table shows the aging of the Company’s loan portfolio, by class, at December 31, 2013 (dollars in thousands): | ||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days and still Accruing | Purchased Impaired (net of credit mark) | Nonaccrual | Current | Total Loans | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | $ | - | $ | - | $ | - | $ | - | $ | 1,596 | $ | 212,079 | $ | 213,675 | ||||||||||
Commercial Real Estate - Owner Occupied | 514 | - | 258 | - | 2,037 | 497,955 | 500,764 | |||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 185 | 42 | 1,996 | - | 175 | 753,507 | 755,905 | |||||||||||||||||
Raw Land and Lots | 922 | 545 | - | 2,457 | 2,560 | 181,045 | 187,529 | |||||||||||||||||
Single Family Investment Real Estate | 1,783 | 277 | 563 | 275 | 1,689 | 233,053 | 237,640 | |||||||||||||||||
Commercial and Industrial | 348 | 152 | 220 | - | 3,848 | 211,134 | 215,702 | |||||||||||||||||
Other Commercial | 87 | 1 | 50 | - | 126 | 52,226 | 52,490 | |||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 6,779 | 1,399 | 1,141 | - | 2,446 | 225,649 | 237,414 | |||||||||||||||||
Consumer Construction | - | - | 208 | - | - | 48,776 | 48,984 | |||||||||||||||||
Indirect Auto | 2,237 | 252 | 349 | 7 | - | 171,998 | 174,843 | |||||||||||||||||
Indirect Marine | 459 | - | - | - | 288 | 37,886 | 38,633 | |||||||||||||||||
HELOCs | 2,124 | 422 | 1,190 | 787 | 43 | 277,013 | 281,579 | |||||||||||||||||
Credit Card | 105 | 133 | 281 | - | - | 22,692 | 23,211 | |||||||||||||||||
Other Consumer | 888 | 124 | 490 | 96 | 227 | 69,174 | 70,999 | |||||||||||||||||
Total | $ | 16,431 | $ | 3,347 | $ | 6,746 | $ | 3,622 | $ | 15,035 | $ | 2,994,187 | $ | 3,039,368 | ||||||||||
The following table shows the aging of the Company’s loan portfolio, by class, at December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days and still Accruing | Purchased Impaired (net of credit mark) | Nonaccrual | Current | Total Loans | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | $ | - | $ | - | $ | - | $ | - | $ | 5,781 | $ | 196,563 | $ | 202,344 | ||||||||||
Commercial Real Estate - Owner Occupied | 2,105 | 153 | 1,711 | 247 | 2,206 | 507,249 | 513,671 | |||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 866 | 63 | 207 | - | 812 | 680,812 | 682,760 | |||||||||||||||||
Raw Land and Lots | 277 | - | 75 | 2,942 | 8,760 | 193,672 | 205,726 | |||||||||||||||||
Single Family Investment Real Estate | 1,819 | 261 | 756 | 326 | 3,420 | 226,813 | 233,395 | |||||||||||||||||
Commercial and Industrial | 506 | 270 | 441 | 79 | 2,036 | 214,329 | 217,661 | |||||||||||||||||
Other Commercial | 70 | 182 | 1 | - | 193 | 47,105 | 47,551 | |||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 5,610 | 2,244 | 3,017 | - | 747 | 208,949 | 220,567 | |||||||||||||||||
Consumer Construction | 157 | - | - | - | 235 | 33,577 | 33,969 | |||||||||||||||||
Indirect Auto | 2,504 | 276 | 329 | 21 | - | 154,388 | 157,518 | |||||||||||||||||
Indirect Marine | 67 | - | 114 | - | 158 | 36,247 | 36,586 | |||||||||||||||||
HELOCs | 3,063 | 640 | 1,239 | 845 | 1,325 | 280,980 | 288,092 | |||||||||||||||||
Credit Card | 269 | 101 | 397 | - | - | 21,201 | 21,968 | |||||||||||||||||
Other Consumer | 1,525 | 487 | 556 | 105 | 533 | 101,833 | 105,039 | |||||||||||||||||
Total | $ | 18,838 | $ | 4,677 | $ | 8,843 | $ | 4,565 | $ | 26,206 | $ | 2,903,718 | $ | 2,966,847 | ||||||||||
Nonaccrual loans totaled $15.0 million, $26.2 million, and $44.8 million at December 31, 2013, 2012, and 2011, respectively. Had these loans performed in accordance with their original terms, interest income of approximately $778,000, $1.3 million, and $1.3 million would have been recorded in 2013, 2012, and 2011, respectively. There were no nonaccrual loans excluded from impaired loan disclosure in 2013 or 2012. Loans past due 90 days or more and accruing interest totaled $6.7 million and $8.8 million at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||
The following table shows purchased impaired commercial and consumer loan portfolios, by class and their delinquency status, at December 31, 2013 (dollars in thousands): | ||||||||||||||||||||||||
30-89 Days Past Due | Greater than 90 Days | Current | Total | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Raw Land and Lots | $ | - | $ | - | $ | 2,457 | $ | 2,457 | ||||||||||||||||
Single Family Investment Real Estate | - | - | 275 | 275 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Indirect Auto | - | - | 7 | 7 | ||||||||||||||||||||
HELOCs | - | 31 | 756 | 787 | ||||||||||||||||||||
Other Consumer | 40 | - | 56 | 96 | ||||||||||||||||||||
Total | $ | 40 | $ | 31 | $ | 3,551 | $ | 3,622 | ||||||||||||||||
The following table shows purchased impaired commercial and consumer loan portfolios, by class and their delinquency status, at December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||||
30-89 Days Past Due | Greater than 90 Days | Current | Total | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Real Estate - Owner Occupied | $ | - | $ | 193 | $ | 54 | $ | 247 | ||||||||||||||||
Raw Land and Lots | - | 81 | 2,861 | 2,942 | ||||||||||||||||||||
Single Family Investment Real Estate | - | 14 | 312 | 326 | ||||||||||||||||||||
Commercial and Industrial | - | 79 | - | 79 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Indirect Auto | 3 | 2 | 16 | 21 | ||||||||||||||||||||
HELOCs | - | 51 | 794 | 845 | ||||||||||||||||||||
Other Consumer | - | - | 105 | 105 | ||||||||||||||||||||
Total | $ | 3 | $ | 420 | $ | 4,142 | $ | 4,565 | ||||||||||||||||
The Company measures the amount of impairment by evaluating loans either in their collective homogeneous pools or individually. The following table shows the Company’s impaired loans, by class, at December 31, 2013 (dollars in thousands): | ||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | YTD Average Investment | Interest Income Recognized | ||||||||||||||||||||
Loans without a specific allowance | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | $ | 10,520 | $ | 10,523 | $ | - | $ | 9,073 | $ | 282 | ||||||||||||||
Commercial Real Estate - Owner Occupied | 4,281 | 4,648 | - | 4,845 | 206 | |||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 15,012 | 15,100 | - | 15,288 | 572 | |||||||||||||||||||
Raw Land and Lots | 52,259 | 52,551 | - | 61,606 | 2,024 | |||||||||||||||||||
Single Family Investment Real Estate | 5,520 | 6,021 | - | 6,396 | 261 | |||||||||||||||||||
Commercial and Industrial | 4,035 | 6,835 | - | 7,083 | 195 | |||||||||||||||||||
Other Commercial | 55 | 134 | - | 134 | - | |||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 1,361 | 1,361 | - | 1,374 | 60 | |||||||||||||||||||
Indirect Auto | 11 | 19 | - | 26 | - | |||||||||||||||||||
Indirect Marine | 495 | 874 | - | 887 | 42 | |||||||||||||||||||
HELOCs | 1,604 | 1,755 | - | 1,921 | 11 | |||||||||||||||||||
Other Consumer | 162 | 211 | - | 214 | - | |||||||||||||||||||
Total impaired loans without a specific allowance | $ | 95,315 | $ | 100,032 | $ | - | $ | 108,847 | $ | 3,653 | ||||||||||||||
Loans with a specific allowance | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | $ | 357 | $ | 692 | $ | 135 | $ | 1,136 | $ | 9 | ||||||||||||||
Commercial Real Estate - Owner Occupied | 3,797 | 3,937 | 284 | 4,000 | 181 | |||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 549 | 597 | 76 | 616 | 40 | |||||||||||||||||||
Raw Land and Lots | 1,875 | 1,905 | 83 | 1,985 | 101 | |||||||||||||||||||
Single Family Investment Real Estate | 3,389 | 3,676 | 335 | 3,894 | 114 | |||||||||||||||||||
Commercial and Industrial | 2,722 | 3,086 | 204 | 3,214 | 84 | |||||||||||||||||||
Other Commercial | 255 | 269 | 35 | 254 | 6 | |||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 4,041 | 4,147 | 660 | 4,183 | 123 | |||||||||||||||||||
Other Consumer | 321 | 343 | 151 | 350 | 10 | |||||||||||||||||||
Total impaired loans with a specific allowance | $ | 17,306 | $ | 18,652 | $ | 1,963 | $ | 19,632 | $ | 668 | ||||||||||||||
Total impaired loans | $ | 112,621 | $ | 118,684 | $ | 1,963 | $ | 128,479 | $ | 4,321 | ||||||||||||||
The following table shows the Company’s impaired loans, by class, at December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | YTD Average Investment | Interest Income Recognized | ||||||||||||||||||||
Loans without a specific allowance | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | $ | 28,212 | $ | 28,696 | $ | - | $ | 28,925 | $ | 1,237 | ||||||||||||||
Commercial Real Estate - Owner Occupied | 13,573 | 13,665 | - | 14,579 | 787 | |||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 14,319 | 14,398 | - | 15,482 | 790 | |||||||||||||||||||
Raw Land and Lots | 40,421 | 40,485 | - | 43,162 | 1,538 | |||||||||||||||||||
Single Family Investment Real Estate | 5,487 | 6,185 | - | 7,031 | 253 | |||||||||||||||||||
Commercial and Industrial | 2,201 | 2,232 | - | 2,757 | 154 | |||||||||||||||||||
Other Commercial | 189 | 189 | - | 191 | 11 | |||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 857 | 857 | - | 892 | 43 | |||||||||||||||||||
Indirect Auto | 35 | 42 | - | 56 | - | |||||||||||||||||||
Indirect Marine | 158 | 283 | - | 283 | 3 | |||||||||||||||||||
HELOCs | 1,592 | 1,748 | - | 1,802 | 6 | |||||||||||||||||||
Other Consumer | 286 | 329 | - | 332 | - | |||||||||||||||||||
Total impaired loans without a specific allowance | $ | 107,330 | $ | 109,109 | $ | - | $ | 115,492 | $ | 4,822 | ||||||||||||||
Loans with a specific allowance | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | $ | 4,057 | $ | 4,104 | $ | 643 | $ | 4,914 | $ | 177 | ||||||||||||||
Commercial Real Estate - Owner Occupied | 4,100 | 4,239 | 921 | 4,300 | 124 | |||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 15,084 | 15,121 | 848 | 15,209 | 851 | |||||||||||||||||||
Raw Land and Lots | 10,715 | 10,953 | 2,472 | 11,741 | 190 | |||||||||||||||||||
Single Family Investment Real Estate | 3,341 | 3,437 | 711 | 3,643 | 147 | |||||||||||||||||||
Commercial and Industrial | 4,511 | 4,728 | 1,000 | 4,938 | 110 | |||||||||||||||||||
Other Commercial | 714 | 722 | 153 | 686 | 33 | |||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 2,801 | 2,805 | 545 | 2,851 | 72 | |||||||||||||||||||
Consumer Construction | 235 | 262 | 106 | 230 | - | |||||||||||||||||||
HELOCs | 1,620 | 1,687 | 952 | 1,897 | 27 | |||||||||||||||||||
Other Consumer | 867 | 910 | 273 | 916 | 17 | |||||||||||||||||||
Total impaired loans with a specific allowance | $ | 48,045 | $ | 48,968 | $ | 8,624 | $ | 51,325 | $ | 1,748 | ||||||||||||||
Total impaired loans | $ | 155,375 | $ | 158,077 | $ | 8,624 | $ | 166,817 | $ | 6,570 | ||||||||||||||
For the years ended December 31, 2013, 2012, and 2011, the average investment in impaired loans was $128.5 million, $166.8 million, and $264.5 million, respectively. The interest income recorded on impaired loans was approximately $4.3 million, $6.6 million, and $10.6 million in 2013, 2012, and 2011, respectively. | ||||||||||||||||||||||||
The Company considers TDRs to be impaired loans. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession that it would not otherwise consider to the borrower for economic or legal reasons related to the borrower’s financial difficulties. TDRs totaled $41.8 million and $63.5 million as of December 31, 2013 and December 31, 2012, respectively. All loans that are considered to be TDRs are evaluated for impairment in accordance with the Company’s allowance for loan loss methodology. For the year ended December 31, 2013, the recorded investment in restructured loans prior to modifications was not materially impacted by the modification. | ||||||||||||||||||||||||
The following table provides a summary, by class, of modified loans that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and modified loans that have been placed in nonaccrual status, which are considered to be nonperforming, as of December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
No. of Loans | Recorded Investment | Outstanding Commitment | No. of Loans | Recorded Investment | Outstanding Commitment | |||||||||||||||||||
Performing | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | 1 | $ | 684 | $ | - | 5 | $ | 4,549 | $ | 73 | ||||||||||||||
Commercial Real Estate - Owner Occupied | 4 | 2,278 | - | 11 | 6,009 | - | ||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 6 | 3,771 | - | 10 | 13,103 | - | ||||||||||||||||||
Raw Land and Lots | 15 | 20,741 | - | 13 | 22,886 | - | ||||||||||||||||||
Single Family Investment Real Estate | 13 | 3,497 | - | 6 | 928 | - | ||||||||||||||||||
Commercial and Industrial | 7 | 1,125 | - | 5 | 1,041 | - | ||||||||||||||||||
Other Commercial | - | - | - | 1 | 236 | - | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 10 | 2,318 | - | 12 | 2,256 | - | ||||||||||||||||||
Other Consumer | 3 | 106 | - | 4 | 460 | - | ||||||||||||||||||
Total performing | 59 | $ | 34,520 | $ | - | 67 | $ | 51,468 | $ | 73 | ||||||||||||||
Nonperforming | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | 3 | $ | 947 | $ | - | 4 | 4,260 | - | ||||||||||||||||
Commercial Real Estate - Owner Occupied | 3 | 283 | - | 3 | 1,079 | - | ||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | - | - | - | 2 | 514 | - | ||||||||||||||||||
Raw Land and Lots | 2 | 3,973 | - | 2 | 4,032 | - | ||||||||||||||||||
Single Family Investment Real Estate | 1 | 50 | - | 2 | 427 | - | ||||||||||||||||||
Commercial and Industrial | 8 | 1,195 | - | 7 | 1,251 | - | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 2 | 794 | - | 1 | 202 | - | ||||||||||||||||||
Indirect Marine | - | - | - | 1 | 158 | - | ||||||||||||||||||
Other Consumer | 1 | 62 | - | 1 | 68 | - | ||||||||||||||||||
Total nonperforming | 20 | $ | 7,304 | $ | - | 23 | $ | 11,991 | $ | - | ||||||||||||||
Total performing and nonperforming | 79 | $ | 41,824 | $ | - | 90 | $ | 63,459 | $ | 73 | ||||||||||||||
The Company considers a default of a restructured loan to occur when the borrower is 90 days past due following the restructure or a foreclosure and repossession of the applicable collateral occurs. The following table shows, by class and modification type, TDRs that occurred during the year ended December 31, 2013 as well as TDRs that had a payment default during 2013 that had been restructured during the twelve month period preceding the default (dollars in thousands): | ||||||||||||||||||||||||
Restructurings with | ||||||||||||||||||||||||
All Restructurings | payment default | |||||||||||||||||||||||
No. of Loans | Recorded investment at period end | No. of Loans | Recorded investment at period end | |||||||||||||||||||||
Modified to interest only, at a market rate | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Raw Land and Lots | 1 | $ | 43 | 1 | $ | 43 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 2 | 730 | - | - | ||||||||||||||||||||
Total interest only at market rate of interest | 3 | $ | 773 | 1 | $ | 43 | ||||||||||||||||||
Term modification, at a market rate | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | 2 | $ | 697 | - | $ | - | ||||||||||||||||||
Commercial Real Estate - Owner Occupied | 2 | 1,085 | - | - | ||||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 1 | 745 | - | - | ||||||||||||||||||||
Raw Land and Lots | 3 | 378 | - | - | ||||||||||||||||||||
Single Family Investment Real Estate | 7 | 2,488 | - | - | ||||||||||||||||||||
Commercial and Industrial | 5 | 649 | - | - | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 3 | 707 | - | - | ||||||||||||||||||||
Other Consumer | 1 | 34 | - | - | ||||||||||||||||||||
Total loan term extended at a market rate | 24 | $ | 6,783 | - | $ | - | ||||||||||||||||||
Term modification, below market rate | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Real Estate - Owner Occupied | 1 | $ | 115 | - | $ | - | ||||||||||||||||||
Commercial and Industrial | 1 | 8 | - | - | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 1 | 154 | - | - | ||||||||||||||||||||
Total loan term extended at a below market rate | 3 | $ | 277 | - | $ | - | ||||||||||||||||||
Total | 30 | $ | 7,833 | 1 | $ | 43 | ||||||||||||||||||
The following table shows, by class and modification type, TDRs that occurred during the year ended December 31, 2012 as well as TDRs that had a payment default during 2012 that had been restructured during the twelve month period preceding the default (dollars in thousands): | ||||||||||||||||||||||||
Restructurings with | ||||||||||||||||||||||||
All Restructurings | payment default | |||||||||||||||||||||||
No. of Loans | Recorded investment at period end | No. of Loans | Recorded investment at period end | |||||||||||||||||||||
Modified to interest only, at a market rate | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Real Estate - Owner Occupied | 1 | $ | 216 | - | $ | - | ||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 2 | 759 | - | - | ||||||||||||||||||||
Raw Land and Lots | 3 | 257 | - | - | ||||||||||||||||||||
Single Family Investment Real Estate | 2 | 173 | - | - | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 1 | 124 | - | - | ||||||||||||||||||||
Indirect Marine | 1 | 158 | 1 | 158 | ||||||||||||||||||||
Total interest only at market rate of interest | 10 | $ | 1,687 | 1 | $ | 158 | ||||||||||||||||||
Term modification, at a market rate | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Real Estate - Owner Occupied | 5 | $ | 5,328 | 2 | $ | 1,356 | ||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 2 | 715 | - | - | ||||||||||||||||||||
Raw Land and Lots | 1 | 595 | - | - | ||||||||||||||||||||
Commercial and Industrial | 6 | 408 | - | - | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 5 | 858 | - | - | ||||||||||||||||||||
Indirect Marine | - | - | 1 | 26 | ||||||||||||||||||||
Other Consumer | 4 | 460 | - | - | ||||||||||||||||||||
Total loan term extended at a market rate | 23 | $ | 8,364 | 3 | $ | 1,382 | ||||||||||||||||||
Term modification, below market rate | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Real Estate - Owner Occupied | 4 | $ | 647 | - | $ | - | ||||||||||||||||||
Raw Land and Lots | 1 | 59 | - | - | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 1 | 64 | - | - | ||||||||||||||||||||
Other Consumer | 1 | 68 | - | - | ||||||||||||||||||||
Total loan term extended at a below market rate | 7 | $ | 838 | - | $ | - | ||||||||||||||||||
Interest rate modification, below market rate | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 2 | $ | 2,390 | - | $ | - | ||||||||||||||||||
Total interest only at below market rate of interest | 2 | $ | 2,390 | - | $ | - | ||||||||||||||||||
Total | 42 | $ | 13,279 | 4 | $ | 1,540 | ||||||||||||||||||
The following table shows the allowance for loan loss activity, balances for allowance for credit losses, and loans based on impairment methodology by portfolio segment for the year ended December 31, 2013. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands): | ||||||||||||||||||||||||
Commercial | Consumer | Unallocated | Total | |||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Balance, beginning of the year | $ | 24,821 | $ | 10,107 | $ | -12 | $ | 34,916 | ||||||||||||||||
Recoveries credited to allowance | 1,496 | 1,285 | - | 2,781 | ||||||||||||||||||||
Loans charged off | -8,534 | -5,084 | - | -13,618 | ||||||||||||||||||||
Provision charged to operations | 2,073 | 3,919 | 64 | 6,056 | ||||||||||||||||||||
Balance, end of period | $ | 19,856 | $ | 10,227 | $ | 52 | $ | 30,135 | ||||||||||||||||
Ending Balance, ALL: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,152 | $ | 811 | $ | - | $ | 1,963 | ||||||||||||||||
Loans collectively evaluated for impairment | 18,704 | 9,416 | 52 | 28,172 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | - | - | - | - | ||||||||||||||||||||
Total | $ | 19,856 | $ | 10,227 | $ | 52 | $ | 30,135 | ||||||||||||||||
Ending Balance, Loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 101,894 | $ | 7,105 | $ | - | $ | 108,999 | ||||||||||||||||
Loans collectively evaluated for impairment | 2,059,079 | 867,668 | - | 2,926,747 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | 2,732 | 890 | - | 3,622 | ||||||||||||||||||||
Total | $ | 2,163,705 | $ | 875,663 | $ | - | $ | 3,039,368 | ||||||||||||||||
The following table shows the allowance for loan loss activity, balances for allowance for credit losses, and loans based on impairment methodology by portfolio segment for the year ended December 31, 2012. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands): | ||||||||||||||||||||||||
Commercial | Consumer | Unallocated | Total | |||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Balance, beginning of the year | $ | 27,891 | $ | 11,498 | $ | 81 | $ | 39,470 | ||||||||||||||||
Recoveries credited to allowance | 589 | 1,122 | - | 1,711 | ||||||||||||||||||||
Loans charged off | -12,852 | -5,613 | - | -18,465 | ||||||||||||||||||||
Provision charged to operations | 9,193 | 3,100 | -93 | 12,200 | ||||||||||||||||||||
Balance, end of period | $ | 24,821 | $ | 10,107 | $ | -12 | $ | 34,916 | ||||||||||||||||
Ending Balance, ALL: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 6,626 | $ | 1,876 | $ | - | $ | 8,502 | ||||||||||||||||
Loans collectively evaluated for impairment | 18,073 | 8,231 | -12 | 26,292 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | 122 | - | - | 122 | ||||||||||||||||||||
Total | $ | 24,821 | $ | 10,107 | $ | -12 | $ | 34,916 | ||||||||||||||||
Ending Balance, Loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 143,330 | $ | 7,480 | $ | - | $ | 150,810 | ||||||||||||||||
Loans collectively evaluated for impairment | 1,956,184 | 855,288 | - | 2,811,472 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | 3,594 | 971 | - | 4,565 | ||||||||||||||||||||
Total | $ | 2,103,108 | $ | 863,739 | $ | - | $ | 2,966,847 | ||||||||||||||||
The following table shows the allowance for loan loss activity, balances for allowance for credit losses, and loans based on impairment methodology by portfolio segment for the year ended December 31, 2011. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands): | ||||||||||||||||||||||||
Commercial | Consumer | Unallocated | Total | |||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Balance, beginning of the year | $ | 28,255 | $ | 10,189 | $ | -38 | $ | 38,406 | ||||||||||||||||
Recoveries credited to allowance | 924 | 1,206 | - | 2,130 | ||||||||||||||||||||
Loans charged off | -10,891 | -6,975 | - | -17,866 | ||||||||||||||||||||
Provision charged to operations | 9,603 | 7,078 | 119 | 16,800 | ||||||||||||||||||||
Balance, end of period | $ | 27,891 | $ | 11,498 | $ | 81 | $ | 39,470 | ||||||||||||||||
Ending Balance, ALL: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 10,127 | $ | 1,278 | $ | - | $ | 11,405 | ||||||||||||||||
Loans collectively evaluated for impairment | 17,679 | 10,220 | 81 | 27,980 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | 85 | - | - | 85 | ||||||||||||||||||||
Total | $ | 27,891 | $ | 11,498 | $ | 81 | $ | 39,470 | ||||||||||||||||
Ending Balance, Loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 239,853 | $ | 5,334 | $ | - | $ | 245,187 | ||||||||||||||||
Loans collectively evaluated for impairment | 1,707,560 | 855,939 | - | 2,563,499 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | 8,828 | 1,069 | - | 9,897 | ||||||||||||||||||||
Total | $ | 1,956,241 | $ | 862,342 | $ | - | $ | 2,818,583 | ||||||||||||||||
The Company uses the past due status and trends as the primary credit quality indicator for the consumer loan portfolio segment while a risk rating system is utilized for commercial loans. Commercial loans are graded on a scale of 1 through 9. A general description of the characteristics of the risk grades follows: | ||||||||||||||||||||||||
· | Risk rated 1 loans have little or no risk and are generally secured by cash or cash equivalents; | |||||||||||||||||||||||
· | Risk rated 2 loans have minimal risk to well qualified borrowers and no significant questions as to safety; | |||||||||||||||||||||||
· | Risk rated 3 loans are satisfactory loans with strong borrowers and secondary sources of repayment; | |||||||||||||||||||||||
· | Risk rated 4 loans are satisfactory loans with borrowers not as strong as risk rated 3 loans and may exhibit a greater degree of financial risk based on the type of business supporting the loan; | |||||||||||||||||||||||
· | Risk rated 5 loans are watch loans that warrant more than the normal level of supervision and have the possibility of an event occurring that may weaken the borrower’s ability to repay; | |||||||||||||||||||||||
· | Risk rated 6 loans have increasing potential weaknesses beyond those at which the loan originally was granted and if not addressed could lead to inadequately protecting the Company’s credit position; | |||||||||||||||||||||||
· | Risk rated 7 loans are substandard loans and are inadequately protected by the current sound worth or paying capacity of the obligor or the collateral pledged; these have well defined weaknesses that jeopardize the liquidation of the debt with the distinct possibility the Company will sustain some loss if the deficiencies are not corrected; | |||||||||||||||||||||||
· | Risk rated 8 loans are doubtful of collection and the possibility of loss is high but pending specific borrower plans for recovery, its classification as a loss is deferred until its more exact status is determined; and | |||||||||||||||||||||||
· | Risk rated 9 loans are loss loans which are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. | |||||||||||||||||||||||
The following table shows all loans, excluding purchased impaired loans, in the commercial portfolios by class with their related risk rating current as of December 31, 2013 (dollars in thousands): | ||||||||||||||||||||||||
3-Jan | 4 | 5 | 6 | 7 | 8 | Total | ||||||||||||||||||
Commercial Construction | $ | 24,399 | $ | 148,251 | $ | 20,370 | $ | 13,772 | $ | 6,883 | $ | - | $ | 213,675 | ||||||||||
Commercial Real Estate - Owner Occupied | 149,632 | 324,394 | 10,017 | 10,926 | 5,795 | - | 500,764 | |||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 224,702 | 453,279 | 21,953 | 46,084 | 9,887 | - | 755,905 | |||||||||||||||||
Raw Land and Lots | 8,648 | 98,927 | 14,132 | 16,439 | 46,926 | - | 185,072 | |||||||||||||||||
Single Family Investment Real Estate | 38,327 | 168,564 | 12,302 | 11,522 | 6,650 | - | 237,365 | |||||||||||||||||
Commercial and Industrial | 68,748 | 123,585 | 8,254 | 8,752 | 3,822 | 2,541 | 215,702 | |||||||||||||||||
Other Commercial | 18,593 | 23,160 | 8,529 | 1,897 | 311 | - | 52,490 | |||||||||||||||||
Total | $ | 533,049 | $ | 1,340,160 | $ | 95,557 | $ | 109,392 | $ | 80,274 | $ | 2,541 | $ | 2,160,973 | ||||||||||
The following table shows all loans, excluding purchased impaired loans, in the commercial portfolios by class with their related risk rating current as of December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||||
3-Jan | 4 | 5 | 6 | 7 | 8 | Total | ||||||||||||||||||
Commercial Construction | $ | 5,504 | $ | 117,769 | $ | 14,637 | $ | 33,815 | $ | 30,619 | $ | - | $ | 202,344 | ||||||||||
Commercial Real Estate - Owner Occupied | 145,977 | 321,486 | 15,197 | 19,051 | 11,713 | - | 513,424 | |||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 161,343 | 417,412 | 48,840 | 34,646 | 20,519 | - | 682,760 | |||||||||||||||||
Raw Land and Lots | 3,943 | 114,053 | 13,260 | 29,194 | 42,148 | 186 | 202,784 | |||||||||||||||||
Single Family Investment Real Estate | 43,705 | 156,636 | 12,111 | 13,150 | 7,467 | - | 233,069 | |||||||||||||||||
Commercial and Industrial | 68,308 | 120,442 | 10,584 | 12,064 | 6,045 | 139 | 217,582 | |||||||||||||||||
Other Commercial | 14,189 | 18,260 | 10,710 | 3,489 | 844 | 59 | 47,551 | |||||||||||||||||
Total | $ | 442,969 | $ | 1,266,058 | $ | 125,339 | $ | 145,409 | $ | 119,355 | $ | 384 | $ | 2,099,514 | ||||||||||
The following table shows only purchased impaired loans in the commercial portfolios by class with their related risk rating and credit quality indicator information current as of December 31, 2013 (dollars in thousands): | ||||||||||||||||||||||||
4 | 5 | 6 | 7 | 8 | Total | |||||||||||||||||||
Raw Land and Lots | $ | - | $ | 653 | $ | - | $ | 1,804 | $ | - | $ | 2,457 | ||||||||||||
Single Family Investment Real Estate | 275 | - | - | - | - | 275 | ||||||||||||||||||
Total | $ | 275 | $ | 653 | $ | - | $ | 1,804 | $ | - | $ | 2,732 | ||||||||||||
The following table shows only purchased impaired loans in the commercial portfolios by class with their related risk rating and credit quality indicator information current as of December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||||
5 | 6 | 7 | 8 | Total | ||||||||||||||||||||
Commercial Real Estate - Owner Occupied | $ | - | $ | - | $ | 247 | $ | - | $ | 247 | ||||||||||||||
Raw Land and Lots | - | - | 2,942 | - | 2,942 | |||||||||||||||||||
Single Family Investment Real Estate | 312 | - | 14 | - | 326 | |||||||||||||||||||
Commercial and Industrial | - | - | 79 | - | 79 | |||||||||||||||||||
Total | $ | 312 | $ | - | $ | 3,282 | $ | - | $ | 3,594 | ||||||||||||||
Loans acquired are originally recorded at fair value, with certain loans being identified as impaired at the date of purchase. The fair values were determined based on the credit quality of the portfolio, expected future cash flows, and timing of those expected future cash flows. | ||||||||||||||||||||||||
The following shows changes in the Company’s acquired impaired loan portfolio and accretable yield for ASC 310-30 loans and the acquired performing loan portfolio and remaining discount for ASC 310-20 loans for the years ended December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
ASC 310-30 Loans | ASC 310-20 Loans | ASC 310-30 Loans | ASC 310-20 Loans | |||||||||||||||||||||
Accretable Yield | Carrying Amount of Loans | Remaining Discount | Carrying Amount of Loans | Accretable Yield | Carrying Amount of Loans | Remaining Discount | Carrying Amount of Loans | |||||||||||||||||
Balance at beginning of period | $ | 3,147 | $ | 4,565 | $ | 5,350 | $ | 473,283 | $ | 5,140 | $ | 9,897 | $ | 9,010 | $ | 663,510 | ||||||||
Additions | - | - | - | - | - | - | - | - | ||||||||||||||||
Accretion | -55 | - | -2,009 | - | -353 | - | -3,660 | - | ||||||||||||||||
Charge-offs | -112 | -96 | - | -1,774 | -1,640 | -412 | - | -2,320 | ||||||||||||||||
Transfers to OREO | - | -201 | - | -207 | - | -2,371 | - | -2,895 | ||||||||||||||||
Payments received, net | - | -646 | - | -96,806 | - | -2,549 | - | -185,012 | ||||||||||||||||
Balance at end of period | $ | 2,980 | $ | 3,622 | $ | 3,341 | $ | 374,496 | $ | 3,147 | $ | 4,565 | $ | 5,350 | $ | 473,283 | ||||||||
BANK_PREMISES_AND_EQUIPMENT
BANK PREMISES AND EQUIPMENT | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
BANK PREMISES AND EQUIPMENT [Abstract] | ' | |||||
BANK PREMISES AND EQUIPMENT | ' | |||||
4.BANK PREMISES AND EQUIPMENT | ||||||
Bank premises and equipment as of December 31, 2013 and 2012 are as follows (dollars in thousands): | ||||||
2013 | 2012 | |||||
Land | $ | 23,652 | $ | 24,493 | ||
Land improvements and buildings | 62,329 | 62,721 | ||||
Leasehold improvements | 5,313 | 5,290 | ||||
Furniture and equipment | 36,133 | 37,707 | ||||
Equipment lease | 62 | 62 | ||||
Construction in progress | 9,323 | 6,634 | ||||
Total | 136,812 | 136,907 | ||||
Less accumulated depreciation and amortization | 53,997 | 51,498 | ||||
Bank premises and equipment, net | $ | 82,815 | $ | 85,409 | ||
Depreciation expense for 2013, 2012, and 2011 was $6.0 million, $6.6 million, and $6.7 million, respectively. Future minimum rental payments required under non-cancelable operating leases for bank premises that have initial or remaining terms in excess of one year as of December 31, 2013 are as follows for the years ending (dollars in thousands): | ||||||
2014 | $ | 5,380 | ||||
2015 | 4,985 | |||||
2016 | 4,232 | |||||
2017 | 3,967 | |||||
2018 | 3,807 | |||||
Thereafter | 10,410 | |||||
Total of future payments | $ | 32,781 | ||||
The leases contain options to extend for periods up to 20 years. Rental expense for the years ended December 31, 2013, 2012, and 2011 totaled $5.7 million, $5.9 million, and $4.9 million, respectively. | ||||||
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INTANGIBLE ASSETS [Abstract] | ' | ||||||||
INTANGIBLE ASSETS | ' | ||||||||
5.INTANGIBLE ASSETS | |||||||||
The Company’s intangible assets consist of core deposits, trademarks, and goodwill arising from previous acquisitions. The Company has determined that core deposit intangibles and trademarks have a finite life and amortizes them over their estimated useful life. Core deposit intangible assets are being amortized over the period of expected benefit, which ranges from 4 to 14 years, using an accelerated method. The trademark intangible, acquired through previous acquisitions, was amortized over three years using the straight-line method. In accordance with ASC 350, Intangibles-Goodwill and Other, the Company reviews the carrying value of indefinite lived intangible assets at least annually or more frequently if certain impairment indicators exist. The Company performed its annual impairment testing in the second quarter of 2013 and determined that there was no impairment to its goodwill or intangible assets. Subsequently, the Company determined that an additional evaluation was necessary at year-end due to potential indicators based on the net losses recorded at the mortgage company during the last two quarters of the year. Based on this additional testing, the Company still has recorded no impairment charges to date for goodwill or intangible assets. | |||||||||
Information concerning intangible assets with a finite life is presented in the following table (dollars in thousands): | |||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||
31-Dec-13 | |||||||||
Amortizable core deposit intangibles | $ | 46,615 | $ | 34,635 | $ | 11,980 | |||
Trademark intangible | 1,200 | 1,200 | - | ||||||
31-Dec-12 | |||||||||
Amortizable core deposit intangibles | $ | 46,615 | $ | 30,837 | $ | 15,778 | |||
Trademark intangible | 1,200 | 1,167 | 33 | ||||||
Amortization expense of core deposit intangibles for the years ended December 31, 2013, 2012, and 2011 totaled $3.8 million, $4.9 million, and $6.1 million, respectively. Amortization expense of the trademark intangibles for the year ended December 31, 2013 was $33,000 and for both years ended December 31, 2012 and 2011 totaled $400,000. As of December 31, 2013, the estimated remaining amortization expense of core deposit intangibles is as follows (dollars in thousands): | |||||||||
2014 | $ | 2,898 | |||||||
2015 | 2,463 | ||||||||
2016 | 1,862 | ||||||||
2017 | 1,437 | ||||||||
2018 | 906 | ||||||||
Thereafter | 2,414 | ||||||||
Total estimated amortization expense | $ | 11,980 | |||||||
DEPOSITS
DEPOSITS | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
DEPOSITS [Abstract] | ' | |||||
DEPOSITS | ' | |||||
6.DEPOSITS | ||||||
The major types of interest-bearing deposits are as follows for the years ending (dollars in thousands): | ||||||
2013 | 2012 | |||||
Interest-bearing deposits: | ||||||
NOW accounts | $ | 498,068 | $ | 454,150 | ||
Money market accounts | 940,215 | 957,130 | ||||
Savings accounts | 235,034 | 207,846 | ||||
Time deposits of $100,000 and over | 427,597 | 508,630 | ||||
Other time deposits | 444,254 | 524,110 | ||||
Total interest-bearing deposits | $ | 2,545,168 | $ | 2,651,866 | ||
As of December 31, 2013, the scheduled maturities of time deposits are as follows for the years ending (dollars in thousands): | ||||||
2014 | $ | 563,788 | ||||
2015 | 141,329 | |||||
2016 | 76,595 | |||||
2017 | 37,814 | |||||
2018 | 52,325 | |||||
Total scheduled maturities of time deposits | $ | 871,851 | ||||
The amount of time deposits held in CDARS accounts was $32.0 million and $36.7 million as of December 31, 2013 and 2012, respectively. These deposits had a maturity of less than one year. | ||||||
The Company classifies deposit overdrafts as other consumer loans. As of December 31, 2013 and 2012, these deposits totaled $1.8 million and $5.7 million, respectively. | ||||||
BORROWINGS
BORROWINGS | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
BORROWINGS [Abstract] | ' | |||||||||||||
BORROWINGS | ' | |||||||||||||
7.BORROWINGS | ||||||||||||||
Short-term Borrowings | ||||||||||||||
Total short-term borrowings consist of securities sold under agreements to repurchase, which are secured transactions with customers and generally mature the day following the date sold. Also included in total short-term borrowings are federal funds purchased, which are secured overnight borrowings from other financial institutions, and short-term FHLB advances. Total short-term borrowings consist of the following as of December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||
2013 | 2012 | |||||||||||||
Securities sold under agreements to repurchase | $ | 52,455 | $ | 54,270 | ||||||||||
Other short-term borrowings | 211,500 | 78,000 | ||||||||||||
Total short-term borrowings | $ | 263,955 | $ | 132,270 | ||||||||||
Maximum month-end outstanding balance | $ | 263,955 | $ | 154,116 | ||||||||||
Average outstanding balance during the period | 119,433 | 91,993 | ||||||||||||
Average interest rate during the period | 0.30% | 0.31% | ||||||||||||
Average interest rate at end of period | 0.30% | 0.28% | ||||||||||||
Other short-term borrowings: | ||||||||||||||
Federal Funds purchased | $ | 31,500 | $ | 38,000 | ||||||||||
FHLB | $ | 180,000 | $ | 40,000 | ||||||||||
The Bank maintains federal funds lines with several correspondent banks; the remaining available balance was $93.5 million and $87.0 million at December 31, 2013 and 2012, respectively. The Company has certain restrictive covenants related to certain asset quality, capital, and profitability metrics associated with these lines and is considered to be in compliance with these covenants. Additionally, the Company had a collateral dependent line of credit with the FHLB of up to $805.2 million and $802.2 million at December 31, 2013 and 2012, respectively. | ||||||||||||||
Long-term Borrowings | ||||||||||||||
In connection with two bank acquisitions prior to 2006, the Company issued trust preferred capital notes to fund the cash portion of those acquisitions, collectively totaling $58.5 million. The trust preferred capital notes currently qualify for Tier 1 capital of the Company for regulatory purposes. | ||||||||||||||
Principal | Investment(1) | Spread to | Rate | Maturity | ||||||||||
3-Month LIBOR | ||||||||||||||
Trust Preferred Capital Note - Statutory Trust I | $ | 22,500,000 | $ | 696,000 | 2.75% | 3.00% | 6/17/34 | |||||||
Trust Preferred Capital Note - Statutory Trust II | 36,000,000 | 1,114,000 | 1.40% | 1.65% | 6/15/36 | |||||||||
Total | $ | 58,500,000 | ||||||||||||
(1) reported as 'Other Assets' within the Consolidated Balance Sheets | ||||||||||||||
As part of a prior acquisition, the Company assumed subordinated debt with terms of LIBOR plus 1.45% and a maturity date of April 2016. At December 31, 2013, the carrying value of the subordinated debt, net of the purchase accounting discount, was $16.4 million. | ||||||||||||||
On August 23, 2012, the Company modified its fixed rate FHLB advances to floating rate advances which resulted in reducing the Company’s FHLB borrowing costs. In connection with this modification, the Company incurred a prepayment penalty of $19.6 million on the original advances, which is included as a component of long-term borrowings in the Company’s Consolidated Balance Sheet. In accordance with ASC 470-50, Modifications and Extinguishments, the Company will amortize this prepayment penalty over the term of the modified advances using the effective rate method. The amortization expense is included as a component of interest expense on long-term borrowings in the Company’s Consolidated Income Statement. Amortization expense for the years ended December 31, 2013 and 2012 was $1.7 million and $612,000, respectively. | ||||||||||||||
As of December 31, 2013, the advances from the FHLB consist of the following (dollars in thousands): | ||||||||||||||
Long Term Type | Spread to | Interest Rate | Maturity Date | Conversion Date | Option Frequency | Advance Amount | ||||||||
3-Month LIBOR | ||||||||||||||
Adjustable Rate Credit | 0.44% | 0.69% | 8/23/22 | n/a | n/a | $ | 55,000 | |||||||
Adjustable Rate Credit | 0.45% | 0.70% | 11/23/22 | n/a | n/a | 65,000 | ||||||||
Adjustable Rate Credit | 0.45% | 0.70% | 11/23/22 | n/a | n/a | 10,000 | ||||||||
Adjustable Rate Credit | 0.45% | 0.70% | 11/23/22 | n/a | n/a | 10,000 | ||||||||
$ | 140,000 | |||||||||||||
As of December 31, 2012, the advances from the FHLB consisted of the following (dollars in thousands): | ||||||||||||||
Long Term Type | Spread to | Interest Rate | Maturity Date | Conversion Date | Option Frequency | Advance Amount | ||||||||
3-Month LIBOR | ||||||||||||||
Adjustable Rate Credit | 0.44% | 0.75% | 8/23/22 | n/a | n/a | $ | 55,000 | |||||||
Adjustable Rate Credit | 0.45% | 0.76% | 11/23/22 | n/a | n/a | 65,000 | ||||||||
Adjustable Rate Credit | 0.45% | 0.76% | 11/23/22 | n/a | n/a | 10,000 | ||||||||
Adjustable Rate Credit | 0.45% | 0.76% | 11/23/22 | n/a | n/a | 10,000 | ||||||||
$ | 140,000 | |||||||||||||
The carrying value of the loans and securities pledged as collateral for FHLB advances totaled $1.1 billion and $1.0 billion as of December 31, 2013 and 2012, respectively. | ||||||||||||||
As of December 31, 2013, the contractual maturities of long-term debt are as follows for the years ending (dollars in thousands): | ||||||||||||||
Subordinated Debt | FHLB Advances | Prepayment Penalty | Total Long-term Borrowings | |||||||||||
2014 | $ | - | $ | - | $ | -1,787 | $ | -1,787 | ||||||
2015 | - | - | -1,831 | -1,831 | ||||||||||
2016 | 16,359 | - | -1,882 | 14,477 | ||||||||||
2017 | - | - | -1,923 | -1,923 | ||||||||||
2018 | - | - | -1,969 | -1,969 | ||||||||||
Thereafter | - | 140,000 | -7,918 | 132,082 | ||||||||||
Total long-term borrowings | $ | 16,359 | $ | 140,000 | $ | -17,310 | $ | 139,049 | ||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | |||||
COMMITMENTS AND CONTINGENCIES | ' | |||||
8.COMMITMENTS AND CONTINGENCIES | ||||||
Litigation Matters | ||||||
In the ordinary course of its operations, the Company and its subsidiaries are parties to various legal proceedings. Based on the information presently available, and after consultation with legal counsel, management believes that the ultimate outcome in such proceedings, in the aggregate, will not have a material adverse effect on the business or the financial condition or results of operations of the Company. | ||||||
Litigation Relating to the StellarOne Acquisition | ||||||
In a joint press release issued on June 10, 2013, the Company announced the signing of a definitive merger agreement for the acquisition of StellarOne Corporation. The Company closed the acquisition of StellarOne on January 1, 2014. On June 14, 2013, in response to the initial announcement of the definitive merger agreement, Jaclyn Crescente, individually and on behalf of all other StellarOne shareholders, filed a class action complaint against StellarOne, its current directors, StellarOne Bank, and the Company, in the U.S. District Court for the Western District of Virginia, Charlottesville Division (Case No. 3:13-cv-00021-NKM) (the “District Court”). The complaint alleges that the StellarOne directors breached their fiduciary duties by approving the merger with the Company and that the Company aided and abetted in such breaches of duty. The complaint seeks, among other things, equitable relief and/or money damages in the event that the transaction is completed. StellarOne and the Company believe that the claims are without merit; however, in order to eliminate the expense and uncertainties of further litigation, StellarOne, the Company, and the other defendants have entered into a memorandum of understanding with the plaintiffs in order to settle the litigation. Under the terms of the memorandum of understanding, plaintiffs agree to settle the lawsuit and release the defendants from all claims relating to the acquisition of StellarOne, subject to approval by the District Court. On February 3, 2014, the District Court granted preliminary approval to the memorandum of understanding and to a class action settlement in the case. If the District Court grants final approval, the lawsuit will be dismissed. | ||||||
Financial Instruments with Off-Balance Sheet Risk | ||||||
The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance Sheet. The contractual amounts of these instruments reflect the extent of the Company’s involvement in particular classes of financial instruments. | ||||||
The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and letters of credit written is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Unless noted otherwise, the Company does not require collateral or other security to support off-balance sheet financial instruments with credit risk. | ||||||
Commitments to extend credit are agreements to lend to customers as long as there are no violations of any conditions established in the contracts. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. | ||||||
Letters of credit written are conditional commitments issued by the Company to guarantee the performance of customers to third parties. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. | ||||||
UMG, a wholly owned subsidiary of the Bank, uses rate lock commitments during the origination process and for loans held for sale. These commitments to sell loans are designed to mitigate UMG’s exposure to fluctuations in interest rates in connection with rate lock commitments and loans held for sale. At December 31, 2013, the Company held approximately $2.0 million in loans available for sale in which the related rate lock commitment had expired; accordingly, a valuation adjustment of $94,000 was recorded to properly reflect the lower of cost or market value of these loans. This valuation adjustment was recorded within the mortgage segment; there was a $92,000 valuation adjustment in the prior year. | ||||||
The following table presents the balances of commitments and contingencies (dollars in thousands): | ||||||
2013 | 2012 | |||||
Commitments with off-balance sheet risk: | ||||||
Commitments to extend credit (1) | $ | 891,680 | $ | 844,766 | ||
Standby letters of credit | 48,107 | 45,536 | ||||
Mortgage loan rate lock commitments | 54,834 | 133,326 | ||||
Total commitments with off-balance sheet risk | $ | 994,621 | $ | 1,023,628 | ||
Commitments with balance sheet risk: | ||||||
Loans held for sale | $ | 53,185 | $ | 167,698 | ||
Total other commitments | $ | 1,047,806 | $ | 1,191,326 | ||
(1) Includes unfunded overdraft protection. | ||||||
The Company must maintain a reserve against its deposits in accordance with Regulation D of the Federal Reserve Act. For the final weekly reporting period in the periods ended December 31, 2013 and 2012, the aggregate amount of daily average required reserves was approximately $16.0 million and $14.2 million, respectively. | ||||||
The Company has approximately $9.6 million in deposits in other financial institutions, of which $3.1 million serves as collateral for the trust swap further discussed in Note 9 “Derivatives.” The Dodd-Frank Act, which was signed into law on July 21, 2010, provided unlimited deposit insurance coverage for transaction accounts, but such provision expired on December 31, 2012. As of January 1, 2013, the deposit insurance coverage for transaction accounts is up to at least $250,000. The Company had approximately $5.6 million in deposits in other financial institutions that were uninsured at December 31, 2013. On an annual basis, the Company’s management evaluates the loss risk of its uninsured deposits in financial counter-parties. | ||||||
For asset/liability management purposes, the Company uses interest rate swap agreements to hedge various exposures or to modify the interest rate characteristics of various balance sheet accounts. See Note 9 “Derivatives” in these “Notes to the Consolidated Financial Statements” for additional information. | ||||||
As disclosed in the Company’s Form 10-Q as of September 30, 2013, UMG has identified errors with respect to disclosures made to certain customers during the period from November 2011 through August 2013 in connection with certain loans originated pursuant to insured loan programs administered by the United States Department of Agriculture and Federal Housing Administration. These disclosure errors understated to the borrowers the amount of mortgage insurance premiums that were required to be assessed over the life of the loans under guidelines enacted by these loan programs. The Company has, however, taken certain remedial action with respect to the affected borrowers to address the disclosure errors as permitted under applicable law. Virtually all of these loans were sold to third parties prior to the identification of the errors. At December 31, 2013, the Company accrued $966,000 for contractual indemnification claims specifically related to these errors in mortgage insurance premium calculations. In the ordinary course of business, the Company records an indemnification reserve relating to mortgage loans previously sold based on historical statistics and loss rates and as of December 31, 2013 and 2012, the Company’s indemnification reserve was $627,000 and $446,000, respectively. | ||||||
DERIVATIVES
DERIVATIVES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
DERIVATIVES [Abstract] | ' | ||||||||||||||||
DERIVATIVES | ' | ||||||||||||||||
9.DERIVATIVES | |||||||||||||||||
During the second quarter of 2010, the Company entered into an interest rate swap agreement (the “trust swap”) as part of the management of interest rate risk. The Company designated the trust swap as a cash flow hedge intended to protect against the variability of cash flows associated with the aforementioned Statutory Trust II preferred capital securities. The trust swap hedges the interest rate risk, wherein the Company receives interest of LIBOR from a counterparty and pays a fixed rate of 3.51% to the same counterparty calculated on a notional amount of $36.0 million. The term of the trust swap is six years with a fixed rate that started June 15, 2011. The trust swap was entered into with a counterparty that met the Company’s credit standards and the agreement contains collateral provisions protecting the at-risk party. The Company believes that the credit risk inherent in the contract is not significant. At December 31, 2013, the Company pledged $3.1 million of cash as collateral for the trust swap. | |||||||||||||||||
During the third quarter of 2013, the Company entered into eight interest rate swap agreements (the “prime loan swaps”) as part of the management of interest rate risk. The Company designated the prime loan swaps as cash flow hedges intended to protect the Company against the variability in the expected future cash flows on the designated variable rate loan products. The prime loan swaps hedge the underlying cash flows, wherein the Company receives a fixed interest rate ranging from 4.71% to 6.09% from counterparty and pays interest based on the Wall Street Journal prime index, with a spread of up to 1%, to the same counterparty calculated on a notional amount of $100.0 million. Four of the eight prime loan swaps contain floor rates ranging from 4.00% to 5.00%. The term of the prime loan swaps is six years with a fixed rate that started September 17, 2013. The prime loan swaps were entered into with a counterparty that met the Company’s credit standards and the agreement contains collateral provision protecting the at-risk party. The Company believes that the credit risk inherent in the contract is not significant. At December 31, 2013, the Company pledged securities with a market value of $5.7 million as collateral for the prime loan swaps. | |||||||||||||||||
Amounts receivable or payable are recognized as accrued under the terms of the agreements. In accordance with ASC 815, Derivatives and Hedging, the Company has designated the previously discussed derivatives as cash flow hedges, with the effective portions of the derivatives’ unrealized gains or losses recorded as a component of other comprehensive income. The ineffective portions of the unrealized gains or losses, if any, would be recorded in other expense. The Company has assessed the effectiveness of each hedging relationship by comparing the changes in cash flows on the designated hedged item. The Company’s cash flow hedges are deemed to be effective. At December 31, 2013, the fair value of the Company’s cash flow hedges was an unrealized loss of $3.6 million, the amount the Company would have expected to pay if the contract was terminated. The below asset and liability are recorded as a component of other comprehensive income recorded in the Company’s Consolidated Statements of Comprehensive Income. | |||||||||||||||||
Shown below is a summary of the derivatives designated as cash flow hedges at December 31, 2013 and 2012 (dollars in thousands): | |||||||||||||||||
Notional | Receive | Pay | Life | ||||||||||||||
Positions | Amount | Asset | Liability | Rate | Rate | (Years) | |||||||||||
As of December 31, 2013 | |||||||||||||||||
Pay fixed - receive floating interest rate swaps | 1 | $ | 36,000 | $ | - | $ | 3,046 | 0.25% | 3.51% | 3.46 | |||||||
Receive fixed - pay floating interest rate swaps | 8 | $ | 100,000 | $ | - | $ | 516 | 5.17% | * | 3.89% | * | 5.72 | |||||
Notional | Receive | Pay | Life | ||||||||||||||
Positions | Amount | Asset | Liability | Rate | Rate | (Years) | |||||||||||
As of December 31, 2012 | |||||||||||||||||
Pay fixed - receive floating interest rate swaps | 1 | $ | 36,000 | $ | - | $ | 4,489 | 0.31% | 3.51% | 4.46 | |||||||
*This receive rate is a weighted average rate for the 8 loan swaps that have a receive rate range from 4.71% to 6.09%. The pay rate is a weighted average rate taking into consideration the floor rates discussed above. | |||||||||||||||||
During the normal course of business, the Company enters into interest rate swap loan relationships (“loan swaps”) with borrowers to meet their financing needs. Upon entering into the loan swaps, the Company enters into offsetting positions with counterparties in order to minimize interest rate risk. These back-to-back loan swaps qualify as financial derivatives with fair values reported in other assets and other liabilities. Shown below is a summary regarding loan swap derivative activities at December 31, 2013 and 2012 (dollars in thousands): | |||||||||||||||||
Notional | Receive | Pay | Life | ||||||||||||||
Positions | Amount | Asset | Liability | Rate | Rate | (Years) | |||||||||||
As of December 31, 2013 | |||||||||||||||||
Receive fixed - pay floating interest rate swaps | 1 | $ | 718 | $ | 33 | $ | - | 4.58% | 2.92% | 8.59 | |||||||
Pay fixed - receive floating interest rate swaps | 1 | $ | 718 | $ | - | $ | 33 | 2.92% | 4.58% | 8.59 | |||||||
Notional | Receive | Pay | Life | ||||||||||||||
Positions | Amount | Asset | Liability | Rate | Rate | (Years) | |||||||||||
As of December 31, 2012 | |||||||||||||||||
Receive fixed - pay floating interest rate swaps | 1 | $ | 744 | $ | 18 | $ | - | 4.58% | 2.96% | 9.59 | |||||||
Pay fixed - receive floating interest rate swaps | 1 | $ | 744 | $ | - | $ | 18 | 2.96% | 4.58% | 9.59 | |||||||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | ' | ||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | ||||||||
10.ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||
The change in accumulated other comprehensive income (loss) for the year ended December 31, 2013 is summarized as follows, net of tax (dollars in thousands): | |||||||||
Unrealized Gains (losses) on Securities | Change in FV of Cash Flow Hedges | Total | |||||||
Balance - December 31, 2012 | $ | 14,573 | $ | -4,489 | $ | 10,084 | |||
Other comprehensive income (loss) | -13,367 | 583 | -12,784 | ||||||
Amounts reclassified from accumulated other comprehensive income | -14 | 524 | 510 | ||||||
Net current period other comprehensive income (loss) | -13,381 | 1,107 | -12,274 | ||||||
Balance - December 31, 2013 | $ | 1,192 | $ | -3,382 | $ | -2,190 | |||
The change in accumulated other comprehensive income (loss) for the year ended December 31, 2012 is summarized as follows, net of tax (dollars in thousands): | |||||||||
Unrealized Gains (losses) on Securities | Change in FV of Cash Flow Hedge | Total | |||||||
Balance - December 31, 2011 | $ | 13,943 | $ | -4,293 | $ | 9,650 | |||
Other comprehensive income (loss) | 753 | -922 | -169 | ||||||
Amounts reclassified from accumulated other comprehensive income | -123 | 726 | 603 | ||||||
Net current period other comprehensive income (loss) | 630 | -196 | 434 | ||||||
Balance - December 31, 2012 | $ | 14,573 | $ | -4,489 | $ | 10,084 | |||
The change in accumulated other comprehensive income (loss) for the year ended December 31, 2011 is summarized as follows, net of tax (dollars in thousands): | |||||||||
Unrealized Gains (losses) on Securities | Change in FV of Cash Flow Hedge | Total | |||||||
Balance - December 31, 2010 | $ | 5,046 | $ | -1,475 | $ | 3,571 | |||
Other comprehensive income (loss) | 9,231 | -3,233 | 5,998 | ||||||
Amounts reclassified from accumulated other comprehensive income | -334 | 415 | 81 | ||||||
Net current period other comprehensive income (loss) | 8,897 | -2,818 | 6,079 | ||||||
Balance - December 31, 2011 | $ | 13,943 | $ | -4,293 | $ | 9,650 | |||
Reclassifications of unrealized gains (losses) on available-for-sale securities are reported in the Consolidated Income Statement as "Gains on securities transactions, net" with the corresponding income tax effect being reflected as a component of income tax expense. The Company reported gains of $21,000, $190,000, and $913,000 for the years ended December 31, 2013, 2012, and 2011, respectively, related to gains/losses on the sale of securities. As discussed in Note 2 “Securities”, the Company determined that a single issuer trust preferred security incurred credit-related OTTI of $400,000 during the year ended December 31, 2011, which is included in the reclassification above. The tax effect of these transactions during the years ended December 31, 2013, 2012, and 2011 were $7,000, $67,000, and $179,000, respectively, which were included as a component of income tax expense. | |||||||||
Reclassifications of the change in fair value of cash flow hedges are reported in interest income and interest expense in the Consolidated Income Statement with the corresponding income tax effect being reflected as a component of income tax expense. The Company reported net interest expense of $805,000, $1.1 million, and $638,000 for the years ended December 31, 2013, 2012, and 2011, respectively. The tax effect of these transactions during the years ended December 31, 2013, 2012, and 2011 were $281,000, $391,000, and $223,000, respectively, which were included as a component of income tax expense. | |||||||||
REGULATORY_MATTERS_AND_CAPITAL
REGULATORY MATTERS AND CAPITAL | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
REGULATORY MATTERS AND CAPITAL [Abstract] | ' | ||||||||||||||
REGULATORY MATTERS AND CAPITAL | ' | ||||||||||||||
11.REGULATORY MATTERS AND CAPITAL | |||||||||||||||
The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on financial statements of the Company and the subsidiary bank. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to financial holding companies and bank holding companies, but only to their bank subsidiaries. | |||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios of total risk-weighted assets (as defined) and Tier 1 capital (as defined) to average assets (as defined) and risk-weighted assets. | |||||||||||||||
As of December 31, 2013, the most recent notification from the Federal Reserve Bank categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well-capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since that notification that management believes have changed the Bank’s category. | |||||||||||||||
The Company and the Bank’s capital amounts and ratios are also presented in the following table at December 31, 2013 and 2012 (dollars in thousands): | |||||||||||||||
Actual | Required for Capital Adequacy Purposes | Required in Order to Be Well Capitalized Under PCA | |||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||
As of December 31, 2013 | |||||||||||||||
Total capital to risk weighted assets: | |||||||||||||||
Consolidated | $ | 465,360 | 14.17% | $ | 262,730 | 8.00% | NA | NA | |||||||
Union First Market Bank | 442,784 | 13.56% | 261,229 | 8.00% | $ | 326,537 | 10.00% | ||||||||
Tier 1 capital to risk weighted assets: | |||||||||||||||
Consolidated | 428,490 | 13.05% | 131,338 | 4.00% | NA | NA | |||||||||
Union First Market Bank | 405,925 | 12.43% | 130,628 | 4.00% | 195,941 | 6.00% | |||||||||
Tier 1 capital to average adjusted assets: | |||||||||||||||
Consolidated | 428,490 | 10.70% | 160,183 | 4.00% | NA | NA | |||||||||
Union First Market Bank | 405,925 | 10.19% | 159,342 | 4.00% | 199,178 | 5.00% | |||||||||
As of December 31, 2012 | |||||||||||||||
Total capital to risk weighted assets: | |||||||||||||||
Consolidated | $ | 454,444 | 14.57% | $ | 249,487 | 8.00% | NA | NA | |||||||
Union First Market Bank | 438,860 | 14.14% | 248,294 | 8.00% | $ | 310,367 | 10.00% | ||||||||
Tier 1 capital to risk weighted assets: | |||||||||||||||
Consolidated | 409,879 | 13.14% | 124,743 | 4.00% | NA | NA | |||||||||
Union First Market Bank | 394,296 | 12.70% | 124,147 | 4.00% | 186,220 | 6.00% | |||||||||
Tier 1 capital to average adjusted assets: | |||||||||||||||
Consolidated | 409,879 | 10.29% | 159,408 | 4.00% | NA | NA | |||||||||
Union First Market Bank | 394,296 | 9.94% | 158,631 | 4.00% | 198,288 | 5.00% | |||||||||
In February 2012, the Company repurchased 335,649 shares of its common stock for an aggregate purchase price of $4,363,437, or $13.00 per share. The repurchase was funded with cash on hand. The Company transferred 115,384 of the repurchased shares to its ESOP for $13.00 per share. The remaining 220,265 shares were retired. In December 2012, the Company repurchased and retired 750,000 shares of its common stock for an aggregate purchase price of $11,580,000, or $15.44 per share. The repurchase was funded with cash on hand. In the first quarter 2013, the Company repurchased 500,000 shares of its common stock for an aggregate purchase price of $9,500,000, or $19.00 per share. The repurchase was funded with cash on hand and the shares were retired. | |||||||||||||||
In July 2013, the FRB issued a final rule that makes technical changes to its market risk capital rule to align it with the Basel III regulatory capital framework and meet certain requirements of the Dodd-Frank Act. The final new capital rules require the Company to comply with the following new minimum capital ratios, effective January 1, 2015: (1) a new common equity Tier 1 capital ratio of 4.5% of risk-weighted assets; (2) a Tier 1 capital ratio of 6% of risk-weighted assets (increased from the current requirement of 4%); (3) a total capital ratio of 8% of risk-weighted assets (unchanged from current requirement); and, (4) a leverage ratio of 4% of total assets. | |||||||||||||||
If the new capital ratios described above had been effective as of December 31, 2013, based on management’s interpretation and understanding of the new rules, the Company would have remained “well capitalized” as of such date. | |||||||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | |||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||||||||||
12.FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||||||
The Company follows ASC 820, Fair Value Measurements and Disclosures, (“ASC 820”) to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. This codification clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants. | ||||||||||||||||||||||||||||
ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy under ASC 820 based on these two types of inputs are as follows: | ||||||||||||||||||||||||||||
Level 1 | Valuation is based on quoted prices in active markets for identical assets and liabilities. | |||||||||||||||||||||||||||
Level 2 | Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the markets. | |||||||||||||||||||||||||||
Level 3 | Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. These unobservable inputs reflect the Company’s assumptions about what market participants would use and information that is reasonably available under the circumstances without undue cost and effort. | |||||||||||||||||||||||||||
The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements. | ||||||||||||||||||||||||||||
Derivative instruments | ||||||||||||||||||||||||||||
As discussed in Note 9 “Derivatives,” the Company records derivative instruments at fair value on a recurring basis. The Company utilizes derivative instruments as part of the management of interest rate risk to modify the repricing characteristics of certain portions of the Company’s interest-bearing assets and liabilities. The Company has contracted with a third party vendor to provide valuations for derivatives using standard valuation techniques and therefore classifies such valuations as Level 2. Third party valuations are validated by the Company using Bloomberg Valuation Service’s derivative pricing functions. The Company has considered counterparty credit risk in the valuation of its derivative assets and has considered its own credit risk in the valuation of its derivative liabilities. | ||||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||
Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data (Level 2). If the inputs used to provide the evaluation for certain securities are unobservable and/or there is little, if any, market activity then the security would fall to the lowest level of the hierarchy (Level 3). | ||||||||||||||||||||||||||||
The Company’s investment portfolio is primarily valued using fair value measurements that are considered to be Level 2. The Company has contracted with a third party portfolio accounting service vendor for valuation of its securities portfolio. The vendor’s primary source for security valuation is Interactive Data Corporation (“IDC”), which evaluates securities based on market data. IDC utilizes evaluated pricing models that vary by asset class and include available trade, bid, and other market information. Generally, the methodology includes broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. | ||||||||||||||||||||||||||||
The vendor utilizes proprietary valuation matrices for valuing all municipals securities. The initial curves for determining the price, movement, and yield relationships within the municipal matrices are derived from industry benchmark curves or sourced from a municipal trading desk. The securities are further broken down according to issuer, credit support, state of issuance, and rating to incorporate additional spreads to the industry benchmark curves. | ||||||||||||||||||||||||||||
The Company uses Bloomberg Valuation Service, an independent information source that draws on quantitative models and market data contributed from over 4,000 market participants, to validate third party valuations. Any material differences between valuation sources are researched by further analyzing the various inputs that are utilized by each pricing source. No material differences were identified during the validation as of December 31, 2013 and 2012. | ||||||||||||||||||||||||||||
The carrying value of restricted Federal Reserve Bank and FHLB stock approximates fair value based on the redemption provisions of each entity and is therefore excluded from the following table. | ||||||||||||||||||||||||||||
The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis at December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 using | ||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Balance | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Interest rate swap - loans | $ | - | $ | 33 | $ | - | $ | 33 | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||
U.S. government and agency securities | - | 2,153 | - | 2,153 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | - | 254,830 | - | 254,830 | ||||||||||||||||||||||||
Corporate and other bonds | - | 9,434 | - | 9,434 | ||||||||||||||||||||||||
Mortgage-backed securities | - | 407,362 | - | 407,362 | ||||||||||||||||||||||||
Other securities | - | 3,569 | - | 3,569 | ||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Interest rate swap - loans | $ | - | $ | 33 | $ | - | $ | 33 | ||||||||||||||||||||
Cash flow hedge - prime loan swap | - | 516 | - | 516 | ||||||||||||||||||||||||
Cash flow hedge - trust preferred | - | 3,046 | - | 3,046 | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 using | ||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Balance | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Interest rate swap - loans | $ | - | $ | 18 | $ | - | $ | 18 | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||
U.S. government and agency securities | - | 2,849 | - | 2,849 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | - | 229,778 | - | 229,778 | ||||||||||||||||||||||||
Corporate and other bonds | - | 7,212 | - | 7,212 | ||||||||||||||||||||||||
Mortgage-backed securities | - | 342,174 | - | 342,174 | ||||||||||||||||||||||||
Other securities | - | 3,369 | - | 3,369 | ||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Interest rate swap - loans | $ | - | $ | 18 | $ | - | $ | 18 | ||||||||||||||||||||
Cash flow hedge - trust preferred | - | 4,489 | - | 4,489 | ||||||||||||||||||||||||
Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. | ||||||||||||||||||||||||||||
The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements. | ||||||||||||||||||||||||||||
Loans held for sale | ||||||||||||||||||||||||||||
Loans held for sale are carried at the lower of cost or market value. These loans currently consist of residential loans originated for sale in the secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale (Level 2). As such, the Company records any fair value adjustments on a nonrecurring basis. Nonrecurring fair value adjustments of $363,000 and $0 were recorded on loans held for sale during the years ended December 31, 2013 and 2012, respectively. Gains and losses on the sale of loans are recorded within the mortgage segment and are reported on a separate line item in the Consolidated Statements of Income. | ||||||||||||||||||||||||||||
Impaired loans | ||||||||||||||||||||||||||||
Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreements will not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Collateral dependent loans are reported at the fair value of the underlying collateral if repayment is solely from the underlying value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Company’s collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser using observable market data. When evaluating the fair value, management may discount the appraisal further if, based on their understanding of the market conditions, it is determined the collateral is further impaired below the appraised value (Level 3). The value of business equipment is based upon an outside appraisal, of one year or less, if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Collateral dependent impaired loans allocated to the allowance for loan losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Consolidated Statements of Income. | ||||||||||||||||||||||||||||
Other real estate owned | ||||||||||||||||||||||||||||
Fair values of OREO are carried at fair value less selling costs. Fair value is based upon independent market prices, appraised values of the collateral, or management’s estimation of the value of the collateral. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the foreclosed asset as Level 3 valuation. Total valuation expenses related to OREO properties for the years ended December 31, 2013 and 2012 were $791,000 and $301,000, respectively. | ||||||||||||||||||||||||||||
The following tables summarize the Company’s financial assets that were measured at fair value on a nonrecurring basis at December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 using | ||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Balance | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Loans held for sale | $ | - | $ | 53,185 | $ | - | $ | 53,185 | ||||||||||||||||||||
Impaired loans | - | - | 7,985 | 7,985 | ||||||||||||||||||||||||
Other real estate owned | - | - | 34,116 | 34,116 | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 using | ||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Balance | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Loans held for sale | $ | - | $ | 167,698 | $ | - | $ | 167,698 | ||||||||||||||||||||
Impaired loans | - | - | 30,104 | 30,104 | ||||||||||||||||||||||||
Other real estate owned | - | - | 32,834 | 32,834 | ||||||||||||||||||||||||
The following table displays quantitative information about Level 3 Fair Value Measurements for December 31, 2013 (dollars in thousands): | ||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Inputs | Weighted Average | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Commercial Construction | $ | 219 | Market comparables | Discount applied to market comparables (1) | 0% | |||||||||||||||||||||||
Commercial Real Estate - Owner Occupied | 2,043 | Market comparables | Discount applied to market comparables (1) | 17% | ||||||||||||||||||||||||
Raw Land and Lots | 908 | Market comparables | Discount applied to market comparables (1) | 10% | ||||||||||||||||||||||||
Single Family Investment Real Estate | 1,332 | Market comparables | Discount applied to market comparables (1) | 0% | ||||||||||||||||||||||||
Commercial and Industrial | 1,719 | Market comparables | Discount applied to market comparables (1) | 28% | ||||||||||||||||||||||||
Other (2) | 1,764 | Market comparables | Discount applied to market comparables (1) | 0% | ||||||||||||||||||||||||
Total Impaired Loans | 7,985 | |||||||||||||||||||||||||||
Other real estate owned | 34,116 | Market comparables | Discount applied to market comparables (1) | 33% | ||||||||||||||||||||||||
Total | $ | 42,101 | ||||||||||||||||||||||||||
(1) A discount percentage (in addition to expected selling costs) is applied based on age of independent appraisals, current market conditions, and experience within the local market. | ||||||||||||||||||||||||||||
(2) The "Other" category of the impaired loans section from the table above consists of Other Commercial, Mortgage, Consumer Construction, HELOCs, and Other Consumer. | ||||||||||||||||||||||||||||
The following table displays quantitative information about Level 3 Fair Value Measurements for December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | ||||||||||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Inputs | Weighted Average | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Commercial Construction | $ | 3,190 | Market comparables | Discount applied to market comparables (1) | 6% | |||||||||||||||||||||||
Commercial Real Estate - Owner Occupied | 2,001 | Market comparables | Discount applied to market comparables (1) | 13% | ||||||||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 13,100 | Market comparables | Discount applied to market comparables (1) | 9% | ||||||||||||||||||||||||
Raw Land and Lots | 7,300 | Market comparables | Discount applied to market comparables (1) | 6% | ||||||||||||||||||||||||
Single Family Investment Real Estate | 1,241 | Market comparables | Discount applied to market comparables (1) | 6% | ||||||||||||||||||||||||
Commercial and Industrial | 1,810 | Market comparables | Discount applied to market comparables (1) | 23% | ||||||||||||||||||||||||
Other (2) | 1,462 | Market comparables | Discount applied to market comparables (1) | 27% | ||||||||||||||||||||||||
Total Impaired Loans | 30,104 | |||||||||||||||||||||||||||
Other real estate owned | 32,834 | Market comparables | Discount applied to market comparables (1) | 33% | ||||||||||||||||||||||||
Total | $ | 62,938 | ||||||||||||||||||||||||||
(1) A discount percentage (in addition to expected selling costs) is applied based on age of independent appraisals, current market conditions, and experience within the local market. | ||||||||||||||||||||||||||||
(2) The "Other" category of the impaired loans section from the table above consists of Other Commercial, Mortgage, Consumer Construction, HELOCs, and Other Consumer. | ||||||||||||||||||||||||||||
ASC 825, Financial Instruments, requires disclosure about fair value of financial instruments for interim periods and excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. | ||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||
For those short-term instruments, the carrying amount is a reasonable estimate of fair value. | ||||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||
The fair value of performing loans is estimated by discounting expected future cash flows using a yield curve that is constructed by adding a loan spread to a market yield curve. Loan spreads are based on spreads currently observed in the market for loans of similar type and structure. Fair value for impaired loans and their respective level within the fair value hierarchy, are described in the previous disclosure related to fair value measurements of assets that are measured on a nonrecurring basis. | ||||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||||
The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. | ||||||||||||||||||||||||||||
Borrowings | ||||||||||||||||||||||||||||
The carrying value of the Company’s repurchase agreements is a reasonable estimate of fair value. Other borrowings are discounted using the current yield curve for the same type of borrowing. For borrowings with embedded optionality, a third party source is used to value the instrument. The Company validates all third party valuations for borrowings with optionality using Bloomberg’s derivative pricing functions. | ||||||||||||||||||||||||||||
Accrued interest | ||||||||||||||||||||||||||||
The carrying amounts of accrued interest approximate fair value. | ||||||||||||||||||||||||||||
Commitments to extend credit and standby letters of credit | ||||||||||||||||||||||||||||
The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. At December 31, 2013 and 2012, the fair value of loan commitments and standby letters of credit was immaterial. | ||||||||||||||||||||||||||||
The carrying values and estimated fair values of the Company’s financial instruments as of December 31, 2013 and 2012 are as follows (dollars in thousands): | ||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 using | ||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total Fair Value | |||||||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Balance | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 73,023 | $ | 73,023 | $ | - | $ | - | $ | 73,023 | ||||||||||||||||||
Securities available for sale | 677,348 | - | 677,348 | - | 677,348 | |||||||||||||||||||||||
Restricted stock | 26,036 | - | 26,036 | - | 26,036 | |||||||||||||||||||||||
Loans held for sale | 53,185 | - | 53,185 | - | 53,185 | |||||||||||||||||||||||
Net loans | 3,009,233 | - | - | 3,035,504 | 3,035,504 | |||||||||||||||||||||||
Interest rate swap - loans | 33 | - | 33 | - | 33 | |||||||||||||||||||||||
Accrued interest receivable | 15,000 | - | 15,000 | - | 15,000 | |||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Deposits | $ | 3,236,843 | $ | - | $ | 3,238,777 | $ | - | $ | 3,238,777 | ||||||||||||||||||
Borrowings | 463,314 | - | 443,237 | - | 443,237 | |||||||||||||||||||||||
Accrued interest payable | 902 | - | 902 | - | 902 | |||||||||||||||||||||||
Cash flow hedge - prime loan swap | 516 | - | 516 | - | 516 | |||||||||||||||||||||||
Cash flow hedge - trust preferred | 3,046 | - | 3,046 | - | 3,046 | |||||||||||||||||||||||
Interest rate swap - loans | 33 | - | 33 | - | 33 | |||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 using | ||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total Fair Value | |||||||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Balance | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 82,902 | $ | 82,902 | $ | - | $ | - | $ | 82,902 | ||||||||||||||||||
Securities available for sale | 585,382 | - | 585,382 | - | 585,382 | |||||||||||||||||||||||
Restricted stock | 20,687 | - | 20,687 | - | 20,687 | |||||||||||||||||||||||
Loans held for sale | 167,698 | - | 167,698 | - | 167,698 | |||||||||||||||||||||||
Net loans | 2,931,931 | - | - | 2,956,339 | 2,956,339 | |||||||||||||||||||||||
Interest rate swap - loans | 18 | - | 18 | - | 18 | |||||||||||||||||||||||
Accrued interest receivable | 19,663 | - | 19,663 | - | 19,663 | |||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Deposits | $ | 3,297,767 | $ | - | $ | 3,309,149 | $ | - | $ | 3,309,149 | ||||||||||||||||||
Borrowings | 329,395 | - | 309,019 | - | 309,019 | |||||||||||||||||||||||
Accrued interest payable | 1,414 | - | 1,414 | - | 1,414 | |||||||||||||||||||||||
Cash flow hedge – trust preferred | 4,489 | - | 4,489 | - | 4,489 | |||||||||||||||||||||||
Interest rate swap - loans | 18 | - | 18 | - | 18 | |||||||||||||||||||||||
The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. | ||||||||||||||||||||||||||||
EMPLOYEE_BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
EMPLOYEE BENEFITS [Abstract] | ' | |||||||||||||
EMPLOYEE BENEFITS | ' | |||||||||||||
13.EMPLOYEE BENEFITS | ||||||||||||||
The Company has a 401(k) Plan that allows employees to make contributions for retirement. The 401(k) Plan provides for the Company to match employee contributions based on each employee’s contribution percentage. For each employee’s 1% through 3% dollar contributions, the Company will match 100% of such dollar contributions, and for each employee’s 4% through 5% dollar contributions, the Company will match 50% of such dollar contributions. The Bank also has an ESOP. All full and part-time employees of the Bank with 1,000 hours of service are eligible to participate in the ESOP. The Company makes discretionary profit sharing contributions into the 401(k) Plan, ESOP, and in cash. Company discretionary contributions to both the 401(k) Plan and the ESOP are allocated to participant accounts in proportion to each participant’s compensation and vest over five and six year periods, respectively. Employee contributions to the ESOP are not allowed. | ||||||||||||||
The following were payments made to the Company’s employees, in accordance with the plans described above, in 2013, 2012, and 2011 (dollars in thousands): | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Bank | UMG | Bank | UMG | Bank | UMG | |||||||||
401(k) Plan | $ 2,002 | $ 569 | $ 1,427 | $ 588 | $ 1,374 | $ 355 | ||||||||
ESOP | 1,774 | - | 1,896 | - | 1,700 | - | ||||||||
Cash | 482 | - | 314 | - | 315 | - | ||||||||
Total | $ 4,258 | $ 569 | $ 3,637 | $ 588 | $ 3,389 | $ 355 | ||||||||
The Company had an obligation to certain members of the Bank’s Board of Directors under deferred compensation plans in the amount of $903,000 and $957,000 at December 31, 2013 and 2012, respectively. The expenses related to the deferred compensation plans were $86,000, $84,000, and $80,000 for the years ended December 31, 2013, 2012, and 2011, respectively. The Company owns life insurance policies on plan beneficiaries as an informal funding vehicle to meet future benefit obligations. | ||||||||||||||
The Company’s Board of Directors has approved an annual incentive compensation plan (the Management Incentive Plan, or “MIP”) as a means of attracting, rewarding, and retaining key executives. Each annual MIP, as it may be amended from time to time, is based on both corporate and individual objectives established annually for each participant. Each participant is evaluated within these two categories to determine eligibility and rate of incentive compensation based on performance. Salaries and benefits expense for incentive compensation under the MIP was $939,000, $835,000, and $711,000 for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||||||||
The Company’s 2011 Stock Incentive Plan (the “2011 Plan”) provides, and the 2003 Stock Incentive Plan (the “2003 Plan”) provided until it expired in June 2013, for the granting of stock-based awards in the form of incentive stock options intended to comply with the requirements of Section 422 of the Internal Revenue Code of 1986 (“incentive stock options”), non-statutory stock options, and nonvested stock to key employees of the Company and its subsidiaries. The Company issues new shares to satisfy stock-based awards. Under both plans, the option price cannot be less than the fair market value of the stock on the grant date, and the stock option’s maximum term is ten years from the date of grant and vests in equal annual installments of 20% over a five year vesting schedule. The 2011 Plan became effective on January 1, 2011 after its approval by shareholders at the annual meeting of shareholders held on April 26, 2011. The following table summarizes the shares available in the 2011 Plan as of December 31, 2013: | ||||||||||||||
2011 Plan | ||||||||||||||
Beginning Authorization | 1,000,000 | |||||||||||||
Granted | -387,594 | |||||||||||||
Expired, forfeited, or cancelled | 26,857 | |||||||||||||
Remaining available for grant | 639,263 | |||||||||||||
For the year ended December 31, 2013, the Company recognized stock-based compensation expense (included in salaries and benefits expense) of approximately $889,000 (or $708,000 net of tax), or $0.04 per common share. For years ended December 31, 2012 and 2011, respectively, the Company recognized stock-based compensation expense of approximately $1.3 million and $717,000 ($943,000 and $552,000, net of tax), or approximately $0.05 per common share for the year ended December 31, 2012 and approximately $0.02 for the year ended December 31, 2011. | ||||||||||||||
Stock Options | ||||||||||||||
The following table summarizes the stock option activity for the last three years: | ||||||||||||||
Stock Options | Weighted Average Exercise Price | Options Exercisable | Weighted Average Exercise Price | |||||||||||
(shares) | (shares) | |||||||||||||
Balance, December 31, 2010 | 324,776 | $ 19.38 | 183,544 | $ 20.90 | ||||||||||
Granted | 134,046 | 12.11 | ||||||||||||
Exercised | -29,625 | 10.21 | ||||||||||||
Forfeited | -6,447 | 17.22 | ||||||||||||
Balance, December 31, 2011 | 422,750 | 17.70 | 184,985 | 22.28 | ||||||||||
Granted | 131,657 | 14.40 | ||||||||||||
Exercised | -2,376 | 12.11 | ||||||||||||
Forfeited | -51,453 | 17.11 | ||||||||||||
Balance, December 31, 2012 | 500,578 | 16.92 | 218,825 | 20.59 | ||||||||||
Granted | - | - | ||||||||||||
Exercised | -50,119 | 18.45 | ||||||||||||
Forfeited | -47,513 | 19.04 | ||||||||||||
Balance, December 31, 2013 | 402,946 | 16.48 | 200,904 | 18.96 | ||||||||||
A summary of the options outstanding at December 31, 2013 is as follows: | ||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Number Exercisable | Weighted Average Exercise Price | |||||||||
(shares) | (shares) | |||||||||||||
$ | 113,045 | 6.87 | yrs | $ | 45,044 | $ | ||||||||
12.11 | 12.11 | 12.11 | ||||||||||||
$ | - | $ | 4,558 | 5.75 | $ | 3,188 | $ | |||||||
12.59 | 14.08 | 13.18 | 13.10 | |||||||||||
$ | 114,887 | 8.15 | $ | 21,569 | $ | |||||||||
14.40 | 14.40 | 14.40 | ||||||||||||
$ | 1,000 | 6.42 | $ | 600 | $ | |||||||||
14.82 | 14.82 | 14.82 | ||||||||||||
$ | 91,088 | 6.32 | $ | 52,135 | $ | |||||||||
16.45 | 16.45 | 16.45 | ||||||||||||
$ | - | $ | 22,335 | 0.72 | $ | 22,335 | $ | |||||||
20.41 | 22.65 | 22.29 | 22.29 | |||||||||||
$ | 17,813 | 1.07 | $ | 17,813 | $ | |||||||||
23.50 | 23.50 | 23.50 | ||||||||||||
$ | 3,750 | 1.58 | $ | 3,750 | $ | |||||||||
27.51 | 27.51 | 27.51 | ||||||||||||
$ | 15,995 | 3.15 | $ | 15,995 | $ | |||||||||
27.62 | 27.62 | 27.62 | ||||||||||||
$ | 18,475 | 2.15 | $ | 18,475 | $ | |||||||||
31.57 | 31.57 | 31.57 | ||||||||||||
$ | - | $ | 402,946 | 6.09 | yrs | $ | 200,904 | $ | ||||||
12.11 | 31.57 | 16.48 | 18.96 | |||||||||||
The Company issues shares upon option exercise from the Company’s authorized but unissued shares, and the Company expects to issue an insignificant amount of shares for option exercises during 2014. | ||||||||||||||
The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table for the years ended December 31, 2013, 2012, and 2011. No options have been granted since February of 2012: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Dividend yield(1) | - | 2.47% | 2.36% | |||||||||||
Expected life in years(2) | - | 7.0 | 7.0 | |||||||||||
Expected volatility(3) | - | 41.53% | 41.02% | |||||||||||
Risk-free interest rate(4) | - | 1.24% | 2.71% | |||||||||||
Weighted average fair value per option granted | $ - | $ 4.76 | $ 4.31 | |||||||||||
(1) Calculated as the ratio of historical dividends paid per share of common stock to the stock price on the date of grant. | ||||||||||||||
(2) Based on the average of the contractual life and vesting schedule for the respective option. | ||||||||||||||
(3) Based on the monthly historical volatility of the Company’s stock price over the expected life of the options. | ||||||||||||||
(4) Based upon the U.S. Treasury bill yield curve, for periods within the contractual life of the option, in effect at the time of grant. | ||||||||||||||
The following table summarizes information concerning stock options issued to the Company’s employees that are vested or are expected to vest and stock options exercisable as of December 31, 2013: | ||||||||||||||
Stock Options Vested or Expected to Vest | Exercisable | |||||||||||||
Stock options (number of shares) | 393,582 | 200,904 | ||||||||||||
Weighted average remaining contractual life in years | 6.05 | 4.67 | ||||||||||||
Weighted average exercise price on shares above water | $ | 15.12 | $ | 16.48 | ||||||||||
Aggregate intrinsic value | $ | 3,433,532 | $ | 1,355,386 | ||||||||||
During the year ended December 31, 2013, there were 30 stock option awards exercised with a total intrinsic value (the amount by which the stock price exceeds the exercise price) and fair value of approximately $268,000 and $1.2 million, respectively. Cash received from the exercise of stock options for the year ended December 31, 2013 was approximately $927,000, and the tax benefit realized from tax deductions associated with options exercised during the year was $54,000. | ||||||||||||||
The fair value of all stock options vested during 2013 was approximately $335,000 and the total intrinsic value of all stock options outstanding was $3.5 million. | ||||||||||||||
During the year ended December 31, 2012, there were two stock option awards exercised with a total intrinsic value and fair value of approximately $7,400 and $36,000, respectively. Cash received from the exercise of stock options for the year ended December 31, 2012 was approximately $29,000, and the tax benefit realized from tax deductions associated with options exercised during the year was $2,600. | ||||||||||||||
The fair value of all stock options vested during 2012 was approximately $279,000 and the total intrinsic value of all stock options outstanding was $623,000. | ||||||||||||||
During the year ended December 31, 2011, the total intrinsic value for stock options exercised was $88,000. The total intrinsic value of stock options outstanding was $1,000. The fair value of stock options vested was approximately $238,000. Cash received from the exercise of stock options for the year ended December 31, 2011 was approximately $302,000, and the tax benefits realized from tax deductions associated with options exercised during the year were $15,000. | ||||||||||||||
Nonvested Stock | ||||||||||||||
The 2011 Plan permits, and the 2003 Plan permitted until it expired in June 2013, the granting of nonvested stock but are limited to one-third of the aggregate number of total awards granted. This equity component of compensation is divided between restricted (time-based) stock grants and performance-based stock grants. Generally, the restricted stock vests 50% on each of the third and fourth anniversaries from the date of the grant. The performance-based stock is subject to vesting based on achieving certain performance metrics; the grant of performance-based stock is subject to approval by the Company’s Compensation Committee at its sole discretion. The value of the nonvested stock awards was calculated by multiplying the fair market value of the Company’s common stock on grant date by the number of shares awarded. Employees have the right to vote the shares and to receive cash or stock dividends (restricted stock), if any, except for the nonvested stock under the performance-based component (performance stock). | ||||||||||||||
The following table summarizes the nonvested stock activity for the year ended December 31, 2013: | ||||||||||||||
Number of Shares of Restricted Stock | Weighted Average Grant-Date Fair Value | |||||||||||||
Balance, December 31, 2012 | 187,700 | $ | 13.15 | |||||||||||
Granted | 126,172 | 18.80 | ||||||||||||
Vested | -19,763 | 13.26 | ||||||||||||
Forfeited | -33,346 | 15.22 | ||||||||||||
Balance, December 31, 2013 | 260,763 | 16.47 | ||||||||||||
The estimated unamortized compensation expense, net of estimated forfeitures, related to nonvested stock and stock options issued and outstanding as of December 31, 2013 that will be recognized in future periods is as follows (dollars in thousands): | ||||||||||||||
Stock Options | Restricted Stock | Total | ||||||||||||
2014 | $ | 315 | $ | 1,194 | $ | 1,509 | ||||||||
2015 | 241 | 960 | 1,201 | |||||||||||
2016 | 143 | 342 | 485 | |||||||||||
2017 | 27 | 44 | 71 | |||||||||||
Total | $ | 726 | $ | 2,540 | $ | 3,266 | ||||||||
At December 31, 2013, there was $3.3 million of total unrecognized compensation cost related to nonvested stock-based compensation arrangements granted under the plan. The cost is expected to be recognized through 2017. | ||||||||||||||
OTHER_OPERATING_EXPENSES
OTHER OPERATING EXPENSES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
OTHER OPERATING EXPENSES [Abstract] | ' | ||||||||
OTHER OPERATING EXPENSES | ' | ||||||||
14.OTHER OPERATING EXPENSES | |||||||||
The following table presents the Consolidated Statement of Income line “Other Operating Expenses” broken into greater detail for the years ended December 31, 2013, 2012 and 2011, respectively (dollars in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Printing, postage, and supplies | $ | 2,970 | $ | 2,649 | $ | 2,179 | |||
Communications expense | 2,681 | 3,070 | 2,931 | ||||||
Technology and data processing | 7,754 | 7,510 | 7,795 | ||||||
Professional services | 3,419 | 3,035 | 2,989 | ||||||
Marketing and advertising expense | 4,312 | 5,473 | 5,869 | ||||||
FDIC assessment premiums and other insurance | 3,110 | 2,373 | 4,936 | ||||||
Other taxes | 3,181 | 3,017 | 2,838 | ||||||
Loan related expenses | 2,447 | 2,254 | 2,058 | ||||||
OREO and credit-related expenses(1) | 4,880 | 4,639 | 5,668 | ||||||
Amortization of intangible assets | 3,831 | 5,336 | 6,522 | ||||||
Acquisition and conversion costs | 2,132 | - | 426 | ||||||
Other expenses | 7,776 | 6,074 | 5,715 | ||||||
Total other operating expenses | $ | 48,493 | $ | 45,430 | $ | 49,926 | |||
(1) OREO related costs include foreclosure related expenses, gains/losses on the sale of OREO, valuation reserves, and asset resolution related legal expenses. | |||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INCOME TAXES [Abstract] | ' | ||||||||
INCOME TAXES | ' | ||||||||
15.INCOME TAXES | |||||||||
The Company files income tax returns in the U.S., the Commonwealth of Virginia, and other states. With few exceptions, the Company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years prior to 2010. | |||||||||
Net deferred tax assets and liabilities consist of the following components as of December 31, 2013 and 2012 (dollars in thousands): | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Allowance for loan losses | $ | 10,657 | $ | 12,221 | |||||
Benefit plans | 1,385 | 1,429 | |||||||
Nonaccrual loans | 983 | 1,148 | |||||||
Acquisition accounting | 2,252 | 2,980 | |||||||
Stock grants | 1,379 | 1,232 | |||||||
Other real estate owned | 3,282 | 2,709 | |||||||
Securities available for sale | 901 | - | |||||||
Other | 1,777 | 1,018 | |||||||
Total deferred tax assets | $ | 22,616 | $ | 22,737 | |||||
Deferred tax liabilities: | |||||||||
Acquisition accounting | $ | 5,232 | $ | 6,057 | |||||
Securities available for sale | - | 6,101 | |||||||
Other | 747 | 899 | |||||||
Total deferred tax liabilities | 5,979 | 13,057 | |||||||
Net deferred tax asset | $ | 16,637 | $ | 9,680 | |||||
In assessing the ability to realize deferred tax assets, management considers the scheduled reversal of temporary differences, projected future taxable income, and tax planning strategies. At December 31, 2013, management believed that it is not likely that the Company would realize its deferred tax asset related to net operating losses generated at the state level and accordingly established a valuation allowance of $828,000. The Company’s bank subsidiary is not subject to a state income tax in its primary place of business (Virginia). The Company’s other subsidiaries are subject to state income taxes and have generated losses for state income tax purposes for which the Company is currently not able to utilize. The primary change in management’s estimate of the recoverability of the state net operating loss is related to the recent performance of the Company’s mortgage segment. State net operating loss carryovers will begin to expire after 2026. | |||||||||
The provision for income taxes charged to operations for the years ended December 31, 2013, 2012, and 2011 consists of the following (dollars in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Current tax expense | $ | 12,251 | $ | 14,528 | $ | 11,879 | |||
Deferred tax expense (benefit) | 262 | -195 | -615 | ||||||
Income tax expense | $ | 12,513 | $ | 14,333 | $ | 11,264 | |||
The income tax expense differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income for the years ended December 31, 2013, 2012, and 2011, due to the following (dollars in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Computed "expected" tax expense | $ | 16,453 | $ | 17,411 | $ | 14,600 | |||
(Decrease) in taxes resulting from: | |||||||||
Tax-exempt interest income, net | -3,308 | -2,614 | -2,681 | ||||||
Other, net | -632 | -464 | -655 | ||||||
Income tax expense | $ | 12,513 | $ | 14,333 | $ | 11,264 | |||
The effective tax rates were 26.6%, 28.8%, and 27.1%, for years ended December 31, 2013, 2012, and 2011, respectively. Tax credits totaled approximately $306,000, $217,000, and $203,000 for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
EARNINGS PER SHARE [Abstract] | ' | ||||||
EARNINGS PER SHARE | ' | ||||||
16.EARNINGS PER SHARE | |||||||
Basic EPS was computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed using the weighted average number of common shares outstanding during the period, including the effect of dilutive potential common shares outstanding attributable to stock awards. | |||||||
There were approximately 104,126 shares underlying anti-dilutive options as of December 31, 2013, compared to 309,952 and 383,101 shares as of December 31, 2012, and 2011, respectively, which were excluded from the calculation of diluted EPS. | |||||||
The following is a reconciliation of the denominators of the basic and diluted EPS computations for the years ended December 31, 2013, 2012, and 2011 (in thousands except per share data): | |||||||
Net Income Available to Common Stockholders (Numerator) | Weighted Average Shares (Denominator) | Per Share Amount | |||||
For the Year Ended December 31, 2013 | |||||||
Basic EPS | $ 34,496 | 24,975 | $ 1.38 | ||||
Effect of dilutive stock awards | - | 56 | - | ||||
Diluted EPS | $ 34,496 | 25,031 | $ 1.38 | ||||
For the Year Ended December 31, 2012 | |||||||
Basic EPS | $ 35,411 | 25,872 | $ 1.37 | ||||
Effect of dilutive stock awards | - | 29 | - | ||||
Diluted EPS | $ 35,411 | 25,901 | $ 1.37 | ||||
For the Year Ended December 31, 2011 | |||||||
Basic EPS | $ 27,769 | 25,981 | $ 1.07 | ||||
Effect of dilutive stock awards | - | 29 | - | ||||
Diluted EPS | $ 27,769 | 26,010 | $ 1.07 | ||||
SEGMENT_REPORTING_DISCLOSURES
SEGMENT REPORTING DISCLOSURES | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
SEGMENT REPORTING DISCLOSURES [Abstract] | ' | |||||||||||
SEGMENT REPORTING DISCLOSURES | ' | |||||||||||
17.SEGMENT REPORTING DISCLOSURES | ||||||||||||
The Company has two reportable segments: a traditional full service community bank and a mortgage loan origination business. The community bank business for 2013 includes one subsidiary bank, which provides loan, deposit, investment, and trust services to retail and commercial customers throughout its 90 retail locations in Virginia. The mortgage segment includes one mortgage company, which provides a variety of mortgage loan products principally in Virginia, North Carolina, South Carolina, Maryland, and the Washington D.C. metro area. These loans are originated and sold primarily in the secondary market through purchase commitments from investors, which serves to mitigate the Company’s exposure to interest rate risk. | ||||||||||||
Profit and loss is measured by net income after taxes including realized gains and losses on the Company’s investment portfolio. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Inter-segment transactions are recorded at cost and eliminated as part of the consolidation process. | ||||||||||||
Both of the Company’s reportable segments are service-based. The mortgage business is a fee-based business while the bank is driven principally by net interest income. The bank segment provides a distribution and referral network through its customers for the mortgage loan origination business. The mortgage segment offers a more limited referral network for the bank segment, due largely to the minimal degree of overlapping geographic markets. | ||||||||||||
The community bank segment provides the mortgage segment with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest at the three month LIBOR rate plus 1.5%, floor of 2%. These transactions are eliminated in the consolidation process. A management fee for operations and administrative support services is charged to all subsidiaries and eliminated in the consolidated totals. | ||||||||||||
Information about reportable segments and reconciliation of such information to the consolidated financial statements for years ended December 31, 2013, 2012, and 2011 is as follows (dollars in thousands): | ||||||||||||
Community Bank | Mortgage | Eliminations | Consolidated | |||||||||
For the Year Ended December 31, 2013 | ||||||||||||
Net interest income | $ | 149,975 | $ | 1,651 | $ | - | $ | 151,626 | ||||
Provision for loan losses | 6,056 | - | - | 6,056 | ||||||||
Net interest income after provision for loan losses | 143,919 | 1,651 | - | 145,570 | ||||||||
Noninterest income | 27,492 | 11,906 | -670 | 38,728 | ||||||||
Noninterest expenses | 120,256 | 17,703 | -670 | 137,289 | ||||||||
Income before income taxes | 51,155 | -4,146 | - | 47,009 | ||||||||
Income tax expense | 14,000 | -1,487 | - | 12,513 | ||||||||
Net income | $ | 37,155 | $ | -2,659 | $ | - | $ | 34,496 | ||||
Total assets | $ | 4,170,682 | $ | 63,715 | $ | -57,826 | $ | 4,176,571 | ||||
For the Year Ended December 31, 2012 | ||||||||||||
Net interest income | $ | 153,024 | $ | 1,331 | $ | - | $ | 154,355 | ||||
Provision for loan losses | 12,200 | - | - | 12,200 | ||||||||
Net interest income after provision for loan losses | 140,824 | 1,331 | - | 142,155 | ||||||||
Noninterest income | 24,876 | 16,660 | -468 | 41,068 | ||||||||
Noninterest expenses | 119,976 | 13,971 | -468 | 133,479 | ||||||||
Income before income taxes | 45,724 | 4,020 | - | 49,744 | ||||||||
Income tax expense | 12,858 | 1,475 | - | 14,333 | ||||||||
Net income | $ | 32,866 | $ | 2,545 | $ | - | $ | 35,411 | ||||
Total assets | $ | 4,081,544 | $ | 187,836 | $ | -173,515 | $ | 4,095,865 | ||||
For the Year Ended December 31, 2011 | ||||||||||||
Net interest income | $ | 155,045 | $ | 1,315 | $ | - | $ | 156,360 | ||||
Provision for loan losses | 16,800 | - | - | 16,800 | ||||||||
Net interest income after provision for loan losses | 138,245 | 1,315 | - | 139,560 | ||||||||
Noninterest income | 22,382 | 11,050 | -468 | 32,964 | ||||||||
Noninterest expenses | 121,490 | 9,793 | -468 | 130,815 | ||||||||
Income before income taxes | 39,137 | 2,572 | - | 41,709 | ||||||||
Income tax expense | 10,304 | 960 | - | 11,264 | ||||||||
Net income | $ | 28,833 | $ | 1,612 | $ | - | $ | 30,445 | ||||
Total assets | $ | 3,904,013 | $ | 84,445 | $ | -81,371 | $ | 3,907,087 | ||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
RELATED PARTY TRANSACTIONS [Abstract] | ' | ||||
RELATED PARTY TRANSACTIONS | ' | ||||
18.RELATED PARTY TRANSACTIONS | |||||
The Company, through its subsidiaries, has entered into loan transactions with its directors, principal officers, and affiliated companies in which they are principal stockholders. Such transactions were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other customers, and did not, in the opinion of management, involve more than normal credit risk or present other unfavorable features. There were no changes in terms or loan modifications from the preceding period. The following schedule summarizes the changes in loan amounts outstanding to these persons during the periods indicated (dollars in thousands): | |||||
2013 | 2012 | ||||
Loans outstanding at January 1 | $ 51,543 | $ 29,416 | |||
New loans and advances | 8,496 | 29,132 | |||
Loan repayments | -7,440 | -7,005 | |||
Reclassification(1) | -17,716 | - | |||
Balance at December 31 | $ 34,883 | $ 51,543 | |||
-1 | Primarily loans of $17.5 million to two former directors who retired from the Board in April 2013 and loans to other persons no longer considered related party or loans that were not considered related party in 2012 that subsequently became related party loans in 2013. | ||||
The Company, through its subsidiaries, has also entered into deposit transactions with its directors, principal officers, and affiliated companies in which they are principal stockholders, all of which are under the same terms as other customers. The aggregate amount of these deposit accounts was $22.2 million for both years ended December 31, 2013 and 2012, respectively. | |||||
In December 2012, the Company received authorization from its Board of Directors to purchase up to 750,000 shares of the Company’s common stock on the open market or in private transactions. The repurchase program was authorized through December 31, 2013. Subsequently, in December 2012, the Company entered into an agreement to purchase 750,000 shares of its common stock from Markel Corporation, then the Company’s largest shareholder, for an aggregate purchase price of $11,580,000, or $15.44 per share. The repurchase was funded with cash on hand. Steven A. Markel, Vice Chairman of Markel Corporation, was a member of the Company’s Board of Directors as of the purchase date. The Company retired the shares. On December 12 and 20, 2012, the Company filed Current Reports on Form 8-K with respect to authorization and repurchase. | |||||
During the first quarter of 2013, the Company entered into an agreement to purchase 500,000 shares of its common stock from Markel Corporation, for an aggregate purchase price of $9,500,000, or $19.00 per share. The repurchase was funded with cash on hand and the shares were retired. The Company was authorized to repurchase an additional 250,000 shares under the repurchase authorization, but the authorization expired December 31, 2013 with no additional share repurchases. | |||||
PARENT_COMPANY_FINANCIAL_INFOR
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
PARENT COMPANY FINANCIAL INFORMATION [Abstract] | ' | |||||
PARENT COMPANY FINANCIAL INFORMATION | ' | |||||
19.PARENT COMPANY FINANCIAL INFORMATION | ||||||
The primary source of funds for the dividends paid by Union First Market Bankshares Corporation (for this note only, the “Parent Company”) is dividends received from its subsidiaries. The payments of dividends by the Bank to the Parent Company are subject to certain statutory limitations which contemplate that the current year earnings and earnings retained for the two preceding years may be paid to the Parent Company without regulatory approval. As of December 31, 2013, the aggregate amount of unrestricted funds, which could be transferred from the Company’s Bank to the Parent Company, without prior regulatory approval, totaled approximately $46.8 million, or 10.7%, of the consolidated net assets. | ||||||
Financial information for the Parent Company is as follows: | ||||||
PARENT COMPANY | ||||||
BALANCE SHEETS | ||||||
AS OF DECEMBER 31, 2013 and 2012 | ||||||
(Dollars in thousands) | ||||||
2013 | 2012 | |||||
ASSETS | ||||||
Cash | $ 10,092 | $ 6,505 | ||||
Bank premises and equipment, net | 12,673 | 13,141 | ||||
Other assets | 6,662 | 4,593 | ||||
Investment in subsidiaries | 486,168 | 490,199 | ||||
Total assets | $ 515,595 | $ 514,438 | ||||
LIABILITIES & STOCKHOLDERS' EQUITY | ||||||
Long-term borrowings | $ 8,750 | $ 9,375 | ||||
Trust preferred capital notes | 60,310 | 60,310 | ||||
Other liabilities | 8,296 | 8,890 | ||||
Total liabilities | 77,356 | 78,575 | ||||
Common stock | 33,020 | 33,510 | ||||
Surplus | 170,770 | 176,635 | ||||
Retained earnings | 236,639 | 215,634 | ||||
Accumulated other comprehensive income (loss) | -2,190 | 10,084 | ||||
Total stockholders' equity | 438,239 | 435,863 | ||||
Total liabilities and stockholders' equity | $ 515,595 | $ 514,438 | ||||
PARENT COMPANY | ||||||
STATEMENTS OF INCOME | ||||||
YEARS ENDED DECEMBER 31, 2013, 2012 and 2011 | ||||||
(Dollars in thousands) | ||||||
2013 | 2012 | 2011 | ||||
Income: | ||||||
Interest and dividend income | $ 6 | $ 8 | $ 624 | |||
Dividends received from subsidiaries | 31,323 | 23,141 | 8,612 | |||
Equity in undistributed net income from subsidiaries | 7,685 | 15,158 | 23,941 | |||
Gains on sale of securities, net | - | - | 430 | |||
Gains (losses) on sale of fixed assets, net | - | - | -1 | |||
Other operating income | 1,155 | 1,155 | 1,616 | |||
Total income | 40,169 | 39,462 | 35,222 | |||
Expenses: | ||||||
Interest expense | $ 3,060 | 3,152 | 2,627 | |||
Occupancy expenses | 583 | 586 | 590 | |||
Furniture and equipment expenses | - | - | 1,023 | |||
Other operating expenses | 2,030 | 313 | 537 | |||
Total expenses | 5,673 | 4,051 | 4,777 | |||
Net income | 34,496 | 35,411 | 30,445 | |||
Dividends paid on preferred stock | $ - | - | 1,499 | |||
Amortization of discount on preferred stock | $ - | - | 1,177 | |||
Net income available to common stockholders | $ 34,496 | $ 35,411 | $ 27,769 | |||
PARENT COMPANY | ||||||
CONDENSED STATEMENTS OF CASH FLOWS | ||||||
YEARS ENDED DECEMBER 31, 2013, 2012 and 2011 | ||||||
(Dollars in thousands) | ||||||
2013 | 2012 | 2011 | ||||
Operating activities: | ||||||
Net income | $ 34,496 | $ 35,411 | $ 30,445 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Equity in undistributed net income of subsidiaries | -7,685 | -15,158 | -23,941 | |||
Depreciation of bank premises and equipment | 468 | 473 | 1,089 | |||
Gains on sale of investment securities | - | - | -430 | |||
Tax benefit from exercise of equity-based awards | - | - | 15 | |||
Issuance of common stock grants for services | 477 | 565 | 564 | |||
Net (increase) decrease in other assets | -2,069 | -756 | 811 | |||
Net (decrease) increase in other liabilities | 1,737 | 2,781 | 1,744 | |||
Net cash and cash equivalents provided by operating activities | 27,424 | 23,316 | 10,297 | |||
Investing activities: | ||||||
Sale of securities available for sale | - | - | 13,588 | |||
Net decrease (increase) in bank premises and equipment | - | -23 | 1,455 | |||
Payments for equity method investment | -2,000 | - | - | |||
Payments for investments in and advances to subsidiaries | - | - | -2,391 | |||
Net cash and cash equivalents provided by (used in) investing activities | -2,000 | -23 | 12,652 | |||
Financing activities: | ||||||
Payments on long-term borrowings | -625 | -625 | -625 | |||
Cash dividends paid | -12,535 | -8,969 | -9,245 | |||
Repurchase of preferred stock | - | - | -35,595 | |||
Net Issuance (repurchase) of common stock | -8,677 | -14,469 | 574 | |||
Net cash and cash equivalents used in financing activities | -21,837 | -24,063 | -44,891 | |||
Net increase (decrease) in cash and cash equivalents | 3,587 | -770 | -21,942 | |||
Cash and cash equivalents at beginning of the period | 6,505 | 7,275 | 29,217 | |||
Cash and cash equivalents at end of the period | $ 10,092 | $ 6,505 | $ 7,275 | |||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
SUBSEQUENT EVENTS [Abstract] | ' | |||||
SUBSEQUENT EVENTS | ' | |||||
20.SUBSEQUENT EVENTS | ||||||
The Company’s management has evaluated subsequent events through March 11, 2014, the date the financial statements were available to be issued. | ||||||
StellarOne Acquisition | ||||||
On January 1, 2014, the Company completed the acquisition of StellarOne, a bank holding company based in Charlottesville, Virginia, in an all stock transaction. StellarOne’s common shareholders received 0.9739 shares of the Company’s common stock in exchange for each share of StellarOne’s common stock, resulting in the Company issuing 22,147,874 common shares at a fair value of $549.5 million. As a result of the transaction, StellarOne’s former bank subsidiary, StellarOne Bank, became a wholly owned bank subsidiary of the Company. The Company expects to operate StellarOne Bank as a separate wholly-owned bank subsidiary until May 2014, at which time StellarOne Bank is expected to be merged with and into the Bank. As part of the acquisition plan and cost control efforts, the Company decided to consolidate 13 overlapping bank branches into nearby locations during 2014. In all cases, customers can use branches within close proximity or continue to use the Bank’s other delivery channels including online and mobile banking as the Company works to retain and reassign employees affected by the branch closures. | ||||||
The transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the acquisition date. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition. The following table provides a preliminary assessment of the assets purchased, liabilities assumed, and the consideration transferred (dollars in thousands, except share and per share data): | ||||||
Preliminary Statement of Net Assets Acquired (at fair value) and consideration transferred: | ||||||
Fair value of assets acquired: | ||||||
Cash and cash equivalents | $ | 49,989 | ||||
Securities available for sale | 460,892 | |||||
Loans held for sale | 10,922 | |||||
Loans | 2,239,616 | |||||
Bank premise and equipment | 80,480 | |||||
OREO | 4,319 | |||||
Core deposit intangible | 29,570 | |||||
Other assets | 95,397 | |||||
Total assets | $ | 2,971,185 | ||||
Fair value of liabilities assumed: | ||||||
Deposits | $ | 2,479,874 | ||||
Short-term borrowings | 4,227 | |||||
Long-term borrowings | 118,154 | |||||
Subordinated debt | 25,543 | |||||
Other liabilities | 22,576 | |||||
Total liabilities | $ | 2,650,374 | ||||
Net identifiable assets acquired | $ | 320,811 | ||||
Preliminary Goodwill (1) | 228,711 | |||||
Net assets acquired | $ | 549,522 | ||||
Consideration : | ||||||
Company's common shares issued | 22,147,874 | |||||
Purchase price per share of the Company's common stock (2) | $ | 24.81 | ||||
Value of Company common stock issued | $ | 549,488 | ||||
Value of stock options outstanding | 34 | |||||
Fair value of total consideration transferred | $ | 549,522 | ||||
(1) - No goodwill is expected to be deductible for federal income tax purposes. The goodwill will be primarily allocated to the community bank segment. | ||||||
(2) - The value of the shares of common stock exchanged with StellarOne shareholders was based upon the closing price of the Company's common stock at December 31, 2013, the last trading day prior to the date of acquisition. | ||||||
The estimated fair values of the assets acquired and liabilities assumed at the acquisition date, presented in the table above, include some amounts that are based on preliminary fair value estimates. The following factors led to certain balances having preliminary fair value estimates: | ||||||
· | The Company engaged third party specialists to assist in valuing certain assets and liabilities and this work (including management’s review and approval) is not yet complete; | |||||
· | The proximity of the acquisition date (January 1, 2014) and the date that the Company’s financial statements were issued (March 11, 2014); and | |||||
· | The audit of StellarOne’s opening balance sheet has not been completed. | |||||
In many cases, determining the fair value of the acquired assets and assumed liabilities required the Company 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 those determinations related to the fair valuation of acquired loans. For such loans, the excess of cash flows expected at acquisition over the estimated fair value is recognized as interest income over the remaining lives of the loans. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition reflects the impact of estimated credit losses and other factors, such as prepayments. In accordance with GAAP, there was no carry-over of StellarOne’s previously established allowance for credit losses. | ||||||
The acquired loans were divided into loans with evidence of credit quality deterioration which are accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality, (acquired impaired) and loans that do not meet this criteria, which are accounted for under ASC 310-20, Receivables – Nonrefundable Fees and Other Costs, (acquired performing). In addition, the loans are further categorized into different loan pools per loan types. The Company determined expected cash flows on the acquired loans based on the best available information at the date of acquisition. If new information is obtained about facts and circumstances about expected cash flows that existed as of the acquisition date, management will adjust accordingly in accordance with accounting for business combinations. | ||||||
The fair values of the acquired performing loans were $2.1 billion and the fair values of the acquired impaired loans were $137.6 million. The gross contractually required principal and interest payments receivable for acquired performing loans was $2.5 billion. The best estimate of contractual cash flows not expected to be collected related to the acquired performing loans is $35.4 million. | ||||||
The following table presents the acquired impaired loans receivable at the acquisition date (dollars in thousands): | ||||||
Contractually required principal and interest payments | $ | 204,503 | ||||
Nonaccretable difference | -33,853 | |||||
Cash flows expected to be collected | 170,650 | |||||
Accretable difference | -33,046 | |||||
Fair value of loans acquired with a deterioration of credit quality | $ | 137,604 | ||||
The amounts of StellarOne’s revenue and earnings included in the Company’s Consolidated Statement of Income for the year ended December 31, 2013, and the revenue and earnings of the combined entity had the acquisition date been January 1, 2012, are presented in the pro forma table below. These results combine the historical results of StellarOne into the Company’s Consolidated Statement of Income, and while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition taken place on January 1, 2012. In particular, no adjustments have been made to adjust provision for loan losses in 2013 on the acquired loan portfolio and related income taxes. In addition, expenses related to systems conversions and other costs of integration are expected to be recorded during 2014 and those costs will be expensed as incurred. The Company expects to achieve further operating cost savings and other business synergies, including branch closures, as a result of the acquisition which are not reflected in the pro forma amounts below (dollars in thousands): | ||||||
Pro forma for the year ended | ||||||
December 31, | ||||||
2013 | 2012 | |||||
(unaudited) | (unaudited) | |||||
Total revenues (net interest income plus noninterest income) | $ | 320,162 | $ | 333,684 | ||
Net income | $ | 56,223 | $ | 57,809 | ||
Other Subsequent Events | ||||||
On January 9, 2013, the Bank finalized a forbearance agreement with a borrower in which the Bank acquired 190,152.5 shares of common stock of Virginia National Bankshares Corporation (formerly Virginia National Bank), a national banking association, with an aggregate value of approximately $2.6 million in partial settlement of certain debt owed to the Bank. The common stock served as collateral securing loans made by the Bank to the borrower. On March 6, 2014 the Bank entered into an agreement to sell all of the above-mentioned shares at an aggregate value of $3.8 million. In accordance with the forbearance agreement the proceeds from the sale of the common stock will be applied to the borrower’s contractually obligated loan amount that remains outstanding. The common stock acquired is recorded in Other Assets on the Company’s Consolidated Balance Sheets as of the years ended December 31, 2013 and 2012. | ||||||
On January 30, 2014, the Company’s Board of Directors authorized a share repurchase program to purchase up to $65.0 million worth of the Company’s common stock on the open market or in privately negotiated transactions. The repurchase program is authorized through December 31, 2015. | ||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||
Nature of Operations | ' | ||||
Nature of Operations - Union First Market Bankshares Corporation is a financial holding company and a bank holding company headquartered in Richmond, Virginia and committed to the delivery of financial services through its community bank subsidiary Union First Market Bank and three non-bank financial services affiliates: Union Mortgage Group, Inc., providing a variety of mortgage products, Union Investment Services, Inc. providing securities, brokerage and investment advisory services, and Union Insurance Group, LLC, an insurance agency, which operates in a joint venture with Bankers Insurance, LLC, a large insurance agency owned by community banks across Virginia and managed by the Virginia Bankers Association. | |||||
Principles of Consolidation | ' | ||||
Principles of Consolidation - The consolidated financial statements include the accounts of the Company, which is a financial holding company and a bank holding company that owns all of the outstanding common stock of its banking subsidiary, Union First Market Bank and of Union Investment Services, Inc. The Company also owns a non-controlling interest in The Payments Company which is accounted for under the equity method of accounting. Union Mortgage Group, Inc. is a wholly owned subsidiary of Union First Market Bank. Union First Market Bank also has a non-controlling interest in Johnson Mortgage Company, LLC, which is accounted for under the equity method of accounting. The Company’s Statutory Trust I and II, wholly owned subsidiaries of the Company, were formed for the purpose of issuing redeemable Trust Preferred Capital Notes in connection with the Company’s acquisitions of Guaranty Financial Corporation and its wholly owned subsidiary, Guaranty Bank, in May 2004 and Prosperity Bank & Trust Company in April 2006. ASC 860, Transfers and Servicing, precludes the Company from consolidating Statutory Trusts I and II. The subordinated debts payable to the trusts are reported as liabilities of the Company. All significant inter-company balances and transactions have been eliminated. | |||||
Variable Interest Entities | ' | ||||
Variable Interest Entities - Current accounting guidance states that if a business enterprise is the primary beneficiary of a variable interest entity, the assets, liabilities, and results of the activities of the variable interest entity should be included in the consolidated financial statements of the business enterprise. This interpretation explains how to identify variable interest entities and how an enterprise assesses its interest in a variable interest entity to decide whether to consolidate the entity. It also requires existing unconsolidated variable interest entities to be consolidated by their primary beneficiaries if the entities do not effectively disperse risks among parties involved. Variable interest entities that effectively disperse risks will not be consolidated unless a single party holds an interest or combination of interests that effectively recombines risks that were previously dispersed. Management has evaluated the Company’s investment in variable interest entities. The Company’s primary exposure to variable interest entities are the trust preferred securities structures. | |||||
Currently, other than the impact described above from the deconsolidation of the trust preferred capital notes, this accounting guidance has not had a material impact on the financial condition or the operating results of the Company. | |||||
Use of Estimates | ' | ||||
Use of Estimates - The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of goodwill and intangible assets, other real estate owned, deferred tax assets and liabilities, other-than-temporary impairment of securities, and the fair value of financial instruments. | |||||
Business Combinations | ' | ||||
Business Combinations - Business combinations are accounted for under ASC 805, Business Combinations, using the acquisition method of accounting. The acquisition method of accounting requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their fair values as of that date. To determine the fair values, the Company will continue to rely on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analyses or other valuation techniques. Under the acquisition method of accounting, the Company will identify the acquirer and the closing date and apply applicable recognition principles and conditions. Costs that the Company expects, but is not obligated to incur in the future, to effect its plan to exit an activity of an acquiree or to terminate the employment of or relocate an acquiree’s employees are not liabilities at the acquisition date. The Company will not recognize these costs as part of applying the acquisition method. Instead, the Company will recognize these costs in its post-combination financial statements in accordance with other applicable accounting guidance. | |||||
Acquisition-related costs are costs the Company incurs to effect a business combination. Those costs include advisory, legal, accounting, valuation, and other professional or consulting fees. Some other examples of costs to the Company include systems conversions, integration planning consultants, and advertising costs. The Company will account for acquisition-related costs as expenses in the periods in which the costs are incurred and the services are received, with one exception. The costs to issue debt or equity securities will be recognized in accordance with other applicable accounting guidance. These acquisition-related costs are included within the Consolidated Statements of Income classified within the noninterest expense caption. | |||||
On January 1, 2014, the Company completed the acquisition of StellarOne, a bank holding company based in Charlottesville, Virginia, in an all stock transaction. Additional information on this acquisition is disclosed in Note 20, “Subsequent Events.” | |||||
Cash and Cash Equivalents | ' | ||||
Cash and Cash Equivalents - For purposes of reporting cash flows, the Company defines cash and cash equivalents as cash, cash due from banks, interest-bearing deposits in other banks, money market investments, other interest-bearing deposits, and federal funds sold. | |||||
Investment Securities | ' | ||||
Investment Securities - Securities classified as available for sale are those debt and equity securities that management intends to hold for an indefinite period of time, including securities used as part of the Company’s asset/liability strategy, and that may be sold in response to changes in interest rates, liquidity needs, or other similar factors. Securities available for sale are reported at fair value, with unrealized gains or losses, net of deferred taxes, included in accumulated other comprehensive income in stockholders’ equity. | |||||
Debt securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. The Company has no securities in this category. | |||||
Securities classified as held for trading are those debt and equity securities that are bought and held principally for the purpose of selling them in the near term and are reported at fair value, with unrealized gains and losses included in earnings. The Company has no securities in this category. | |||||
Purchased premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, an impairment is other-than-temporary if any of the following conditions exist: the entity intends to sell the security; it is more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis; or, the entity does not expect to recover the security’s entire amortized cost basis (even if the entity does not intend to sell). If a credit loss exists, but an entity does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, the impairment is other-than-temporary and should be separated into a credit portion to be recognized in earnings and the remaining amount relating to all other factors recognized as other comprehensive loss. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. | |||||
Due to restrictions placed upon the Company’s common stock investment in the Federal Reserve Bank and FHLB, these securities have been classified as restricted equity securities and carried at cost. These restricted securities are not subject to the investment security classifications. The FHLB requires the Bank to maintain stock in an amount equal to 4.5% of outstanding borrowings and a specific percentage of the member’s total assets. The Federal Reserve Bank of Richmond requires the Company to maintain stock with a par value equal to 6% of its outstanding capital. | |||||
Loans Held for Sale | ' | ||||
Loans Held for Sale - Loans originated and intended for sale in the secondary market are sold, servicing released, and carried at the lower of cost or estimated fair value, which is determined in the aggregate based on sales commitments to permanent investors or on current market rates for loans of similar quality and type. In addition, the Company requires a firm purchase commitment from a permanent investor before a loan can be closed, thus limiting interest rate risk. As a result, loans held for sale are stated at fair value. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. | |||||
Loans | ' | ||||
Loans - The Company originates commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by commercial and residential real estate loans (including acquisition and development loans and residential construction loans) throughout its market area. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in those markets. | |||||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for any charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. | |||||
The Company has two loan portfolio level segments and fourteen loan class levels for reporting purposes. The two loan portfolio level segments are commercial and consumer. | |||||
Within the commercial loan portfolio segment there are seven loan classes for reporting purposes: commercial construction, commercial real estate – owner occupied, commercial real estate – non owner occupied, raw land and lots, single family investment real estate, commercial and industrial, and other commercial. | |||||
Commercial construction loans are generally made to commercial and residential builders for specific construction projects. The successful repayment of these types of loans is generally dependent upon (a) a pre-planned commitment for permanent financing from the Company or another lender, or (b) from the sale of the constructed property. These loans carry more risk than both types of commercial real estate term loans due to the dynamics of construction projects, changes in interest rates, the long-term financing market, and state and local government regulations. As in commercial real estate term lending, the Company manages risk by using specific underwriting policies and procedures for these types of loans and by avoiding concentrations to any one business or industry. | |||||
Commercial real estate – owner occupied loans are term loans made to support owner occupied real estate properties that rely upon the successful operation of the business occupying the property for repayment. General market conditions and economic activity may affect these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by avoiding concentrations to any one business or industry. | |||||
Commercial real estate – non-owner occupied loans are term loans typically made to borrowers to support income producing properties that rely upon the successful operation of the property for repayment. General market conditions and economic activity may impact the performance of these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by diversifying the lending to various lines of businesses, such as retail, office, multi-family, office warehouse, and hotel as well as avoiding concentrations to any one business or industry. | |||||
Raw land and lot loans are loans generally made to residential home builders to support their land and lot inventory needs. Repayment relies upon the successful performance of the underlying residential real estate project. This type of lending carries a higher level of risk as compared to other commercial lending. This class of lending manages risks related to residential real estate market conditions, a functioning first and secondary market in which to sell residential properties, and the borrower’s ability to manage inventory and run projects. The Company manages this risk by lending to experienced builders and developers, by using specific underwriting policies and procedures for these types of loans, and by avoiding concentrations with any particular customer or geographic region. | |||||
Single family investment real estate loans are term loans made to real estate investors to support permanent financing for single family residential income producing properties that rely on the successful operation of the property for repayment. This management mainly involves property maintenance and collection of rents due from tenants. This type of lending carries a lower level of risk as compared to other commercial lending. The Company manages this risk by avoiding concentrations with any particular customer or geographic region. | |||||
Commercial and industrial loans generally support our borrowers need for equipment/vehicle purchases and other short-term or seasonal cash flow needs. Repayment relies upon the successful operation of the business. This type of lending carries a lower level of commercial credit risk as compared to other commercial lending within this segment of lending. The Company manages this risk by using general underwriting policies and procedures for these types of loans and by avoiding concentrations to any one business or industry. | |||||
Other commercial loans generally support small business lines of credit and agricultural lending neither of which are a material source of business for the Company. | |||||
The consumer loan portfolio segment is comprised of seven classes; mortgage, consumer construction, indirect auto, indirect marine, HELOCs, credit card, and other consumer. These are generally small loans spread across many borrowers, supported by computer-based loan approval systems and business line policies and procedures that aid in managing risk. The Company’s consumer portfolio consists principally of loans secured by real estate, followed by indirect auto lending and indirect marine lending. | |||||
The Company manages the unique risks related to consumer construction to acceptable levels through certain policies and procedures, such as limiting loan-to-value ratios at loan origination, requiring standards for appraisers, and not making subprime loans under any circumstances. | |||||
The indirect auto lending generally carries certain risks associated with the values of the collateral that management must mitigate. The Company focuses its indirect auto lending on one to two year old used vehicles where substantial depreciation has already occurred thereby minimizing the risk of significant loss of collateral values in the future. This type of lending places reliance on computer-based loan approval systems to supplement other underwriting standards. | |||||
The indirect marine lending is to borrowers that are well qualified with ample capacity to repay and typically lends against large marine vessels (i.e., yachts). Risks in this class of lending are generally related to the borrower’s ability to guard against the effects of economic downturns or sustained levels of unemployment. This type of lending places reliance on computer-based loan approval systems to supplement other underwriting standards. | |||||
Nonaccruals, Past Dues, and Charge-offs | |||||
The policy for placing commercial loans on nonaccrual status is generally when the loan is 90 days delinquent unless the credit is well secured and in process of collection but, in any event, no later than 180 days past due. Consumer loans are typically charged-off when management judges the loan to be uncollectible or the borrower files for bankruptcy but no later than 120 days past due and generally not placed on nonaccrual status prior to charge off. Commercial loans are typically written down to net realizable value when it is determined that the Company will be unable to collect the principal amount in full and the amount is a confirmed loss, in any event no later than 180 days past due. All classes of loans are considered past due or delinquent when a contractual payment has not been satisfied. In all cases, loans are placed on nonaccrual status or charged off at an earlier date if collection of principal and interest is considered doubtful and in accordance with regulatory requirements. | |||||
For both the commercial and consumer loan segments, all interest accrued but not collected for loans placed on nonaccrual status or charged-off is reversed against interest income and accrual of interest income is terminated. Payments and interest on these loans are accounted for using the cost-recovery method by applying all payments received as a reduction to the outstanding principal balance until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The determination of future payments being reasonably assured varies depending on the circumstances present with the loan; however, the timely payment of contractual amounts owed for six consecutive months is a primary indicator. In addition, the return of a loan to accrual status is considered and approved by the Company’s Special Assets Loan Committee. | |||||
Allowance for Loan Losses | ' | ||||
Allowance for Loan Losses | |||||
The provision for loan losses charged to operations is an amount sufficient to bring the allowance for loan losses to an estimated balance that management considers adequate to absorb potential losses in the portfolio. Loans are charged against the allowance when management believes the collectability of the principal is unlikely. Recoveries of amounts previously charged-off are credited to the allowance. Management’s determination of the adequacy of the allowance is based on an evaluation of the composition of the loan portfolio, the value and adequacy of collateral, current economic conditions, historical loan loss experience, and other risk factors. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions, particularly those affecting real estate values. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. | |||||
The Company performs regular credit reviews of the loan portfolio to review the credit quality and adherence to its underwriting standards. The credit reviews consist of reviews by its Internal Audit group and reviews performed by an independent third party. Upon origination, each commercial loan is assigned a risk rating ranging from one to nine, with loans closer to one having less risk, and this risk rating scale is the Company’s primary credit quality indicator. Consumer loans are generally not risk rated; the primary credit quality indicator for this portfolio segment is delinquency status. The Company has various committees that review and ensure that the allowance for loan losses methodology is in accordance with GAAP and loss factors used appropriately reflect the risk characteristics of the loan portfolio. | |||||
The Company’s ALL consists of specific, general, and unallocated components. | |||||
Specific Reserve Component - The specific reserve component relates to impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Upon being identified as impaired, for loans not considered to be collateral dependent, an allowance is established when the discounted cash flows of the impaired loan are lower than the carrying value of that loan. Nonaccrual loans under $100,000 and other impaired loans under $500,000 are aggregated based on similar risk characteristics. The level of credit impairment within the pool(s) is determined based on historical loss factors for loans with similar risk characteristics, taking into consideration environmental factors specifically related to the underlying pool. The impairment of collateral dependent loans is measured based on the fair value of the underlying collateral (based on independent appraisals), less selling costs, compared to the carrying value of the loan. If the Company determines that the value of an impaired collateral dependent loan is less than the recorded investment in the loan, it either recognizes an impairment reserve as a specific component to be provided for in the allowance for loan losses or charges off the deficiency if it is determined that such amount represents a confirmed loss. Typically, a loss is confirmed when the Company is moving towards foreclosure (or final disposition) of the underlying collateral, the collateral deficiency has not improved for two consecutive quarters, or when there is a payment default of 180 days, whichever occurs first. | |||||
The Company obtains independent appraisals from a pre-approved list of independent, third party appraisal firms located in the market in which the collateral is located. The Company’s approved appraiser list is continuously maintained to ensure the list only includes such appraisers that have the experience, reputation, character, and knowledge of the respective real estate market. At a minimum, it is ascertained that the appraiser is currently licensed in the state in which the property is located, experienced in the appraisal of properties similar to the property being appraised, has knowledge of current real estate market conditions and financing trends, and is reputable. The Company’s internal Real Estate Valuation Group, which reports to the Risk and Compliance Group, performs either a technical or administrative review of all appraisals obtained. A technical review will ensure the overall quality of the appraisal, while an administrative review ensures that all of the required components of an appraisal are present. Generally, independent appraisals are updated every 12 to 24 months or as necessary. The Company’s impairment analysis documents the date of the appraisal used in the analysis, whether the officer preparing the report deems it current, and, if not, allows for internal valuation adjustments with justification. Adjustments to appraisals generally include discounts for continued market deterioration subsequent to the appraisal date. Any adjustments from the appraised value to carrying value are documented in the impairment analysis, which is reviewed and approved by senior credit administration officers and the Special Assets Loan Committee. External appraisals are the primary source to value collateral dependent loans; however, the Company may also utilize values obtained through broker price opinions or other valuations sources. These alternative sources of value are used only if deemed to be more representative of value based on updated information regarding collateral resolution. Impairment analyses are updated, reviewed, and approved on a quarterly basis at or near the end of each reporting period. | |||||
General Reserve Component - The general reserve component covers non-impaired loans and is derived from an estimate of credit losses adjusted for various environmental factors applicable to both commercial and consumer loan segments. The estimate of credit losses is a function of the product of net charge-off historical loss experience to the loan balance of the loan portfolio averaged during the preceding twelve quarters, as management has determined this to adequately reflect the losses inherent in the loan portfolio. The environmental factors consist of national, local, and portfolio characteristics and are applied to both the commercial and consumer segments. The following table shows the types of environmental factors management considers: | |||||
ENVIRONMENTAL FACTORS | |||||
Portfolio | National | Local | |||
Experience and ability of lending team | Interest rates | Level of economic activity | |||
Depth of lending team | Inflation | Unemployment | |||
Pace of loan growth | Unemployment | Competition | |||
Franchise expansion | Gross domestic product | Military/government impact | |||
Execution of loan risk rating process | General market risk and other concerns | ||||
Degree of oversight / underwriting standards | Legislative and regulatory environment | ||||
Value of real estate serving as collateral | |||||
Delinquency levels in portfolio | |||||
Charge-off levels in portfolio | |||||
Credit concentrations / nature and volume | |||||
of the portfolio | |||||
Unallocated Component - This component may be used to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Together, the specific, general, and any unallocated allowance for loan loss represents management’s estimate of losses inherent in the current loan portfolio. Though provisions for loan losses may be based on specific loans, the entire allowance for loan losses is available for any loan management deems necessary to charge-off. At December 31, 2013, there were no material amounts considered unallocated as part of the allowance for loan losses. | |||||
Impaired Loans | ' | ||||
Impaired Loans | |||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. A loan that is classified substandard or worse is considered impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. The impairment loan policy is the same for each of the seven classes within the commercial portfolio segment. | |||||
For the consumer loan portfolio segment, large groups of smaller balance homogeneous loans are collectively evaluated for impairment. This evaluation subjects each of the Company’s homogenous pools to a historical loss factor derived from net charge-offs experienced over the preceding twelve quarters. | |||||
The Company applies payments received on impaired loans to principal and interest based on the contractual terms until they are placed on nonaccrual status at which time all payments received are applied to reduce the principal balance and recognition of interest income is terminated as previously discussed. | |||||
Troubled Debt Restructurings | ' | ||||
Troubled Debt Restructurings - In situations where, for economic or legal reasons related to a borrower’s financial condition, management may grant a concession to the borrower that it would not otherwise consider, the related loan is classified as a TDR. Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, extension of terms that are considered to be below market, conversion to interest only, and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. Restructured loans for which there was no rate concession, and therefore made at a market rate of interest, may subsequently be eligible to be removed from TDR status in periods subsequent to the restructuring depending on the performance of the loan. The Company reviews previously restructured loans quarterly in order to determine whether any have performed, subsequent to the restructure, at a level that would allow for them to be removed from TDR status. The Company generally would consider a change in this classification if the loan has performed under the restructured terms for a consecutive twelve month period and is no longer considered to be impaired. Loans removed from TDR status are collectively evaluated for impairment and due to the significant improvement in the expected future cash flows, these loans are grouped based on their primary risk characteristics, typically using the Company’s internal risk rating system as its primary credit quality indicator, and impairment is measured based on historical loss experience taking into consideration environmental factors. | |||||
Bank Premises and Equipment | ' | ||||
Bank Premises and Equipment - Land is carried at cost. Bank premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method based on the type of asset involved. The Company’s policy is to capitalize additions and improvements and to depreciate the cost thereof over their estimated useful lives ranging from 3 to 40 years. Leasehold improvements are amortized over the shorter of the life of the related lease or the estimated life of the related asset. Maintenance, repairs, and renewals are expensed as they are incurred. | |||||
Goodwill and Intangible Assets | ' | ||||
Goodwill and Intangible Assets - The Company’s intangible assets are comprised of goodwill and other intangible assets that were acquired in business combinations. ASC 350, Intangibles-Goodwill and Other, prescribes accounting for goodwill and intangible assets subsequent to initial recognition. The provisions of ASC 350 discontinue the amortization of goodwill and intangible assets with indefinite lives but require at least an annual impairment review and more frequently if certain impairment indicators are in evidence. The Company has determined that core deposit intangibles have a finite life, and therefore, will continue to be amortized over their estimated useful life. | |||||
The Company performed its annual impairment testing in the second quarter of 2013 and determined that there was no impairment to its goodwill or intangible assets. Subsequently, the Company determined that an additional evaluation was necessary at year-end due to potential indicators based on the net losses recorded at the mortgage company during the last two quarters of the year. Based on this additional testing, the Company still has recorded no impairment charges to date for goodwill or intangible assets. | |||||
Other Real Estate Owned | ' | ||||
Other Real Estate Owned - Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis. When the carrying amount exceeds the acquisition date fair value less selling costs, the excess is charged off against the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell, any valuation adjustments occurring from post acquisition reviews are charged to expense as incurred. Revenue and expenses from operations and changes in the valuation allowance are included in OREO and credit-related costs disclosed in Note 14, “Other Operating Expenses.” | |||||
Transfers of Financial Assets | ' | ||||
Transfers of Financial Assets - Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. | |||||
Bank Owned Life Insurance | ' | ||||
Bank Owned Life Insurance - The Company has purchased life insurance on certain key employees and directors. These policies are recorded at their cash surrender value ($86.8 million and $54.8 million at December 31, 2013 and 2012, respectively) and are included in “Other assets” on the Consolidated Balance Sheet. Income generated from polices is recorded as noninterest income. | |||||
Derivatives | ' | ||||
Derivatives - Derivatives are recognized as assets and liabilities on the Consolidated Balance Sheet and measured at fair value. The Company’s derivatives are interest rate swap agreements. For asset/liability management purposes, the Company uses interest rate swap agreements to hedge various exposures or to modify the interest rate characteristics of various balance sheet accounts. For those derivatives designated as a cash flow hedge, the effective portion of the derivative’s unrealized gain or loss is recorded as a component of other comprehensive income. For the Company’s loan swaps, offsetting fair values are recorded in other assets and other liabilities with no net effect on other operating income. | |||||
Loan Fees | ' | ||||
Loan Fees - Fees collected and certain costs incurred related to loan originations are deferred and amortized as an adjustment to interest income over the life of the related loans. Deferred fees and costs are recorded as an adjustment to loans outstanding using a method that approximates a constant yield. | |||||
Stock Compensation Plan | ' | ||||
Stock Compensation Plan - The Company has adopted ASC 718, Compensation – Stock Compensation, which requires the costs resulting from all stock-based payments to employees be recognized in the financial statements. For stock options, compensation cost is estimated at the date of grant, using the Black-Scholes option valuation model for determining fair value of stock options. No options were granted in 2013. The market price of the Company’s common stock at the date of grant is used for nonvested stock awards. The Black–Scholes model employs the following assumptions: | |||||
•Dividend yield - calculated as the ratio of historical dividends paid per share of common stock to the stock price on the date of grant; | |||||
• Expected life (term of the option) - based on the average of the contractual life and vesting schedule for the respective option; | |||||
• Expected volatility - based on the monthly historical volatility of the Company’s stock price over the expected life of the options; and | |||||
• Risk-free interest rate - based upon the Treasury bill yield curve, for periods within the contractual life of the option, in effect at the time of grant. | |||||
ASC 718 requires the Company to estimate forfeitures when recognizing compensation expense and that this estimate of forfeitures be adjusted over the requisite service period or vesting schedule based on the extent to which actual forfeitures differ from such estimates. Changes in estimated forfeitures are recognized through a cumulative catch-up adjustment, which is recognized in the period of change, and also will affect the amount of estimated unamortized compensation expense to be recognized in future periods. | |||||
For more information and tables refer to Note 13, “Employee Benefits.” | |||||
Income Taxes | ' | ||||
Income Taxes - Deferred income tax assets and liabilities are determined using the asset and liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. Deferred taxes are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely to be realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying Consolidated Balance Sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. | |||||
Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the Consolidated Statements of Income. The Company did not record any material interest or penalties for the periods ending December 31, 2013, 2012, or 2011 related to tax positions taken. As of December 31, 2013 and 2012 there were no accruals for uncertain tax positions. The Company and its wholly-owned subsidiaries file a consolidated income tax return. Each entity provides for income taxes based on its contribution to income or loss of the consolidated group. The Internal Revenue Service has examined the Company’s 2010 and 2009 tax returns. | |||||
Advertising Costs | ' | ||||
Advertising Costs - The Company follows a policy of charging the cost of advertising to expense as incurred. Advertising costs are disclosed in Note 14, “Other Operating Expenses.” | |||||
Earnings Per Common Share | ' | ||||
Earnings Per Common Share – Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the year. Net income available to common stockholders deducts from net income the dividends and discount accretion on preferred stock. Diluted earnings per common share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and nonvested stock and are determined using the treasury stock method. | |||||
Comprehensive Income (Loss) | ' | ||||
Comprehensive Income (Loss) - Comprehensive income (loss) represents all changes in equity that result from recognized transactions and other economic events of the period. Other comprehensive income (loss) refers to revenues, expenses, gains, and losses under GAAP that are included in comprehensive income but excluded from net income, such as unrealized gains and losses on certain investments in debt and equity securities and interest rate swaps. | |||||
Off Balance Sheet Credit Related Financial Instruments | ' | ||||
Off Balance Sheet Credit Related Financial Instruments - In the ordinary course of business, the Company has entered into commitments to extend credit and standby letters of credit. Such financial instruments are recorded when they are funded. | |||||
Rate Lock Commitments | ' | ||||
Rate Lock Commitments - The Company enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. The period of time between issuance of a loan commitment, closing, and sale of the loan generally ranges from 30 to 120 days. The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Company is not exposed to material losses and will not realize significant gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitments and the best efforts contracts is high due to their similarity. | |||||
The market value of rate lock commitments and best efforts contracts is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Company determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the value of the underlying asset while taking into consideration the probability that the rate lock commitments will close. Because of the high correlation between rate lock commitments and best efforts contracts, no material gain or loss occurs on the rate lock commitments. | |||||
Asset Prepayment Rates | ' | ||||
Asset Prepayment Rates - The Company purchases amortizing loan pools and investment securities in which the underlying assets are residential mortgage loans subject to prepayments. The actual principal reduction on these assets varies from the expected contractual principal reduction due to principal prepayments resulting from the borrowers’ election to refinance the underlying mortgage based on market and other conditions. The purchase premiums and discounts associated with these assets are amortized or accreted to interest income over the estimated life of the related assets. The estimated life is calculated by projecting future prepayments and the resulting principal cash flows until maturity. Prepayment rate projections utilize actual prepayment speed experience and available market information on similar instruments. The prepayment rates form the basis for income recognition of premiums and discounts on the related assets. Changes in prepayment estimates may cause the earnings recognized on these assets to vary over the term that the assets are held, creating volatility in the net interest margin. Prepayment rate assumptions are monitored monthly and updated periodically to reflect actual activity and the most recent market projections. | |||||
Concentrations of Credit Risk | ' | ||||
Concentrations of Credit Risk - Most of the Company’s activities are with customers located in portions of Central and Tidewater Virginia. Securities available for sale and loans also represent concentrations of credit risk and are discussed in Note 2 “Securities” and Note 3 “Loans and Allowance for Loan Losses,” respectively. | |||||
Recent Accounting Pronouncements | ' | ||||
Recent Accounting Pronouncements - In December 2011, FASB issued ASU 2011-11, “Balance Sheet (Topic 210) – Disclosures about Offsetting Assets and Liabilities.” This ASU requires entities to disclose both gross information and net information about both instruments and transactions eligible for offset in the balance sheet and instruments and transactions subject to an agreement similar to a master netting arrangement. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. The adoption of ASU 2011-11 did not have a material impact on the Company's consolidated financial statements. | |||||
In July 2012, the FASB issued ASU 2012-02, “Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment.” The amendments in this ASU apply to all entities that have indefinite-lived intangible assets, other than goodwill, reported in their financial statements. The amendments in this ASU provide an entity with the option to make a qualitative assessment about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it should perform a quantitative impairment test. The amendments also enhance the consistency of impairment testing guidance among long-lived asset categories by permitting an entity to assess qualitative factors to determine whether it is necessary to calculate the asset’s fair value when testing an indefinite-lived intangible asset for impairment. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of ASU 2012-02 did not have a material impact on the Company's consolidated financial statements. | |||||
In January 2013, the FASB issued ASU 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The amendments in this ASU clarify the scope for derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to netting arrangements. An entity is required to apply the amendments for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The adoption of ASU 2013-01 did not have a material impact on the Company's consolidated financial statements. | |||||
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The amendments in this ASU require an entity to present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income. In addition, the amendments require a cross-reference to other disclosures currently required for other reclassification items to be reclassified directly to net income in their entirety in the same reporting period. Companies should apply these amendments for fiscal years, and interim periods within those years, beginning on or after December 15, 2012. The Company has included the required disclosures from ASU 2013-02 in the consolidated financial statements. | |||||
In July 2013, the FASB issued ASU 2013-10, “Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes.” The amendments in this ASU permit the Fed Funds Effective Swap Rate (also referred to as the Overnight Index Swap Rate) to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to interest rates on direct Treasury obligations of the U.S. government and the LIBOR. The amendments also remove the restriction on using different benchmark rates for similar hedges. The amendments apply to all entities that elect to apply hedge accounting of the benchmark interest rate under Topic 815. The amendments are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of ASU 2013-10 did not have a material impact on the Company's consolidated financial statements. | |||||
In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The amendments in this ASU provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The Company does not expect the adoption of ASU 2013-11 to have a material impact on its consolidated financial statements. | |||||
In January 2014, the FASB issued ASU 2014-01, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this ASU should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company is currently assessing the impact that ASU 2014-01 will have on its consolidated financial statements. | |||||
In January 2014, the FASB issued ASU 2014-04, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company is currently assessing the impact that ASU 2014-04 will have on its consolidated financial statements. | |||||
SECURITIES_Tables
SECURITIES (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
SECURITIES [Abstract] | ' | |||||||||||||||||
Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Investment Securities | ' | |||||||||||||||||
The amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities as of December 31, 2013 and 2012 are summarized as follows (dollars in thousands): | ||||||||||||||||||
Amortized | Gross Unrealized | Estimated | ||||||||||||||||
Cost | Gains | (Losses) | Fair Value | |||||||||||||||
31-Dec-13 | ||||||||||||||||||
U.S. government and agency securities | $ | 1,654 | $ | 499 | $ | - | $ | 2,153 | ||||||||||
Obligations of states and political subdivisions | 255,335 | 6,107 | -6,612 | 254,830 | ||||||||||||||
Corporate and other bonds | 9,479 | 115 | -160 | 9,434 | ||||||||||||||
Mortgage-backed securities | 405,389 | 4,954 | -2,981 | 407,362 | ||||||||||||||
Other securities | 3,617 | 26 | -74 | 3,569 | ||||||||||||||
Total securities | $ | 675,474 | $ | 11,701 | $ | -9,827 | $ | 677,348 | ||||||||||
31-Dec-12 | ||||||||||||||||||
U.S. government and agency securities | $ | 2,581 | $ | 268 | $ | - | $ | 2,849 | ||||||||||
Obligations of states and political subdivisions | 214,980 | 15,123 | -325 | 229,778 | ||||||||||||||
Corporate and other bonds | 7,353 | 173 | -314 | 7,212 | ||||||||||||||
Mortgage-backed securities | 335,327 | 7,383 | -536 | 342,174 | ||||||||||||||
Other securities | 3,277 | 92 | - | 3,369 | ||||||||||||||
Total securities | $ | 563,518 | $ | 23,039 | $ | -1,175 | $ | 585,382 | ||||||||||
Schedule of Gross Unrealized Losses and Fair Value of Investments | ' | |||||||||||||||||
The following table shows the gross unrealized losses and fair value (in thousands) of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired. These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. | ||||||||||||||||||
Less than 12 months | More than 12 months | Total | ||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||
31-Dec-13 | ||||||||||||||||||
Obligations of states and political subdivisions | $ | 80,368 | $ | -5,504 | $ | 8,886 | $ | -1,108 | $ | 89,254 | $ | -6,612 | ||||||
Mortgage-backed securities | 168,297 | -2,806 | 24,254 | -175 | 192,551 | -2,981 | ||||||||||||
Corporate bonds and other securities | 6,804 | -80 | 1,720 | -154 | 8,524 | -234 | ||||||||||||
Totals | $ | 255,469 | $ | -8,390 | $ | 34,860 | $ | -1,437 | $ | 290,329 | $ | -9,827 | ||||||
31-Dec-12 | ||||||||||||||||||
Obligations of states and political subdivisions | $ | 22,397 | $ | -283 | $ | 649 | $ | -42 | $ | 23,046 | $ | -325 | ||||||
Mortgage-backed securities | 86,183 | -536 | - | - | 86,183 | -536 | ||||||||||||
Corporate bonds and other securities | - | - | 1,555 | -314 | 1,555 | -314 | ||||||||||||
Totals | $ | 108,580 | $ | -819 | $ | 2,204 | $ | -356 | $ | 110,784 | $ | -1,175 | ||||||
Schedule of Amortized Cost and Estimated Fair Value of Securities | ' | |||||||||||||||||
The following table presents the amortized cost and estimated fair value of securities as of December 31, 2013 and 2012, by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||
Amortized | Estimated | Amortized | Estimated | |||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||||
Due in one year or less | $ | 6,791 | $ | 6,796 | $ | 5,623 | $ | 5,741 | ||||||||||
Due after one year through five years | 21,666 | 22,497 | 16,413 | 17,016 | ||||||||||||||
Due after five years through ten years | 116,735 | 119,269 | 69,164 | 73,501 | ||||||||||||||
Due after ten years | 530,282 | 528,786 | 472,318 | 489,124 | ||||||||||||||
Total securities available for sale | $ | 675,474 | $ | 677,348 | $ | 563,518 | $ | 585,382 | ||||||||||
Schedule of Other-Than-Temporary Impairment | ' | |||||||||||||||||
OTTI recognized for the periods presented is summarized as follow (dollars in thousands): | ||||||||||||||||||
OTTI Losses | ||||||||||||||||||
Cumulative credit losses on investment securities, through December 31, 2012 | $ | 400 | ||||||||||||||||
Cumulative credit losses on investment securities | - | |||||||||||||||||
Additions for credit losses not previously recognized | - | |||||||||||||||||
Cumulative credit losses on investment securities, through December 31, 2013 | $ | 400 | ||||||||||||||||
LOANS_AND_ALLOWANCE_FOR_LOAN_L1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | ' | |||||||||||||||||||||||
Loans Stated at Face Amount, Net of Unearned Income | ' | |||||||||||||||||||||||
Loans are stated at their face amount, net of unearned income, and consist of the following at December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | $ | 213,675 | $ | 202,344 | ||||||||||||||||||||
Commercial Real Estate - Owner Occupied | 500,764 | 513,671 | ||||||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 755,905 | 682,760 | ||||||||||||||||||||||
Raw Land and Lots | 187,529 | 205,726 | ||||||||||||||||||||||
Single Family Investment Real Estate | 237,640 | 233,395 | ||||||||||||||||||||||
Commercial and Industrial | 215,702 | 217,661 | ||||||||||||||||||||||
Other Commercial | 52,490 | 47,551 | ||||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 237,414 | 220,567 | ||||||||||||||||||||||
Consumer Construction | 48,984 | 33,969 | ||||||||||||||||||||||
Indirect Auto | 174,843 | 157,518 | ||||||||||||||||||||||
Indirect Marine | 38,633 | 36,586 | ||||||||||||||||||||||
HELOCs | 281,579 | 288,092 | ||||||||||||||||||||||
Credit Card | 23,211 | 21,968 | ||||||||||||||||||||||
Other Consumer | 70,999 | 105,039 | ||||||||||||||||||||||
Total | $ | 3,039,368 | $ | 2,966,847 | ||||||||||||||||||||
Summary of Aging of the Loan Portfolio by Class | ' | |||||||||||||||||||||||
The following table shows the aging of the Company’s loan portfolio, by class, at December 31, 2013 (dollars in thousands): | ||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days and still Accruing | Purchased Impaired (net of credit mark) | Nonaccrual | Current | Total Loans | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | $ | - | $ | - | $ | - | $ | - | $ | 1,596 | $ | 212,079 | $ | 213,675 | ||||||||||
Commercial Real Estate - Owner Occupied | 514 | - | 258 | - | 2,037 | 497,955 | 500,764 | |||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 185 | 42 | 1,996 | - | 175 | 753,507 | 755,905 | |||||||||||||||||
Raw Land and Lots | 922 | 545 | - | 2,457 | 2,560 | 181,045 | 187,529 | |||||||||||||||||
Single Family Investment Real Estate | 1,783 | 277 | 563 | 275 | 1,689 | 233,053 | 237,640 | |||||||||||||||||
Commercial and Industrial | 348 | 152 | 220 | - | 3,848 | 211,134 | 215,702 | |||||||||||||||||
Other Commercial | 87 | 1 | 50 | - | 126 | 52,226 | 52,490 | |||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 6,779 | 1,399 | 1,141 | - | 2,446 | 225,649 | 237,414 | |||||||||||||||||
Consumer Construction | - | - | 208 | - | - | 48,776 | 48,984 | |||||||||||||||||
Indirect Auto | 2,237 | 252 | 349 | 7 | - | 171,998 | 174,843 | |||||||||||||||||
Indirect Marine | 459 | - | - | - | 288 | 37,886 | 38,633 | |||||||||||||||||
HELOCs | 2,124 | 422 | 1,190 | 787 | 43 | 277,013 | 281,579 | |||||||||||||||||
Credit Card | 105 | 133 | 281 | - | - | 22,692 | 23,211 | |||||||||||||||||
Other Consumer | 888 | 124 | 490 | 96 | 227 | 69,174 | 70,999 | |||||||||||||||||
Total | $ | 16,431 | $ | 3,347 | $ | 6,746 | $ | 3,622 | $ | 15,035 | $ | 2,994,187 | $ | 3,039,368 | ||||||||||
The following table shows the aging of the Company’s loan portfolio, by class, at December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days and still Accruing | Purchased Impaired (net of credit mark) | Nonaccrual | Current | Total Loans | ||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | $ | - | $ | - | $ | - | $ | - | $ | 5,781 | $ | 196,563 | $ | 202,344 | ||||||||||
Commercial Real Estate - Owner Occupied | 2,105 | 153 | 1,711 | 247 | 2,206 | 507,249 | 513,671 | |||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 866 | 63 | 207 | - | 812 | 680,812 | 682,760 | |||||||||||||||||
Raw Land and Lots | 277 | - | 75 | 2,942 | 8,760 | 193,672 | 205,726 | |||||||||||||||||
Single Family Investment Real Estate | 1,819 | 261 | 756 | 326 | 3,420 | 226,813 | 233,395 | |||||||||||||||||
Commercial and Industrial | 506 | 270 | 441 | 79 | 2,036 | 214,329 | 217,661 | |||||||||||||||||
Other Commercial | 70 | 182 | 1 | - | 193 | 47,105 | 47,551 | |||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 5,610 | 2,244 | 3,017 | - | 747 | 208,949 | 220,567 | |||||||||||||||||
Consumer Construction | 157 | - | - | - | 235 | 33,577 | 33,969 | |||||||||||||||||
Indirect Auto | 2,504 | 276 | 329 | 21 | - | 154,388 | 157,518 | |||||||||||||||||
Indirect Marine | 67 | - | 114 | - | 158 | 36,247 | 36,586 | |||||||||||||||||
HELOCs | 3,063 | 640 | 1,239 | 845 | 1,325 | 280,980 | 288,092 | |||||||||||||||||
Credit Card | 269 | 101 | 397 | - | - | 21,201 | 21,968 | |||||||||||||||||
Other Consumer | 1,525 | 487 | 556 | 105 | 533 | 101,833 | 105,039 | |||||||||||||||||
Total | $ | 18,838 | $ | 4,677 | $ | 8,843 | $ | 4,565 | $ | 26,206 | $ | 2,903,718 | $ | 2,966,847 | ||||||||||
Purchased Impaired Commercial and Consumer Loan Portfolios by Class | ' | |||||||||||||||||||||||
The following table shows purchased impaired commercial and consumer loan portfolios, by class and their delinquency status, at December 31, 2013 (dollars in thousands): | ||||||||||||||||||||||||
30-89 Days Past Due | Greater than 90 Days | Current | Total | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Raw Land and Lots | $ | - | $ | - | $ | 2,457 | $ | 2,457 | ||||||||||||||||
Single Family Investment Real Estate | - | - | 275 | 275 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Indirect Auto | - | - | 7 | 7 | ||||||||||||||||||||
HELOCs | - | 31 | 756 | 787 | ||||||||||||||||||||
Other Consumer | 40 | - | 56 | 96 | ||||||||||||||||||||
Total | $ | 40 | $ | 31 | $ | 3,551 | $ | 3,622 | ||||||||||||||||
The following table shows purchased impaired commercial and consumer loan portfolios, by class and their delinquency status, at December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||||
30-89 Days Past Due | Greater than 90 Days | Current | Total | |||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Real Estate - Owner Occupied | $ | - | $ | 193 | $ | 54 | $ | 247 | ||||||||||||||||
Raw Land and Lots | - | 81 | 2,861 | 2,942 | ||||||||||||||||||||
Single Family Investment Real Estate | - | 14 | 312 | 326 | ||||||||||||||||||||
Commercial and Industrial | - | 79 | - | 79 | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Indirect Auto | 3 | 2 | 16 | 21 | ||||||||||||||||||||
HELOCs | - | 51 | 794 | 845 | ||||||||||||||||||||
Other Consumer | - | - | 105 | 105 | ||||||||||||||||||||
Total | $ | 3 | $ | 420 | $ | 4,142 | $ | 4,565 | ||||||||||||||||
Impaired Loans by Class | ' | |||||||||||||||||||||||
The following table shows the Company’s impaired loans, by class, at December 31, 2013 (dollars in thousands): | ||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | YTD Average Investment | Interest Income Recognized | ||||||||||||||||||||
Loans without a specific allowance | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | $ | 10,520 | $ | 10,523 | $ | - | $ | 9,073 | $ | 282 | ||||||||||||||
Commercial Real Estate - Owner Occupied | 4,281 | 4,648 | - | 4,845 | 206 | |||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 15,012 | 15,100 | - | 15,288 | 572 | |||||||||||||||||||
Raw Land and Lots | 52,259 | 52,551 | - | 61,606 | 2,024 | |||||||||||||||||||
Single Family Investment Real Estate | 5,520 | 6,021 | - | 6,396 | 261 | |||||||||||||||||||
Commercial and Industrial | 4,035 | 6,835 | - | 7,083 | 195 | |||||||||||||||||||
Other Commercial | 55 | 134 | - | 134 | - | |||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 1,361 | 1,361 | - | 1,374 | 60 | |||||||||||||||||||
Indirect Auto | 11 | 19 | - | 26 | - | |||||||||||||||||||
Indirect Marine | 495 | 874 | - | 887 | 42 | |||||||||||||||||||
HELOCs | 1,604 | 1,755 | - | 1,921 | 11 | |||||||||||||||||||
Other Consumer | 162 | 211 | - | 214 | - | |||||||||||||||||||
Total impaired loans without a specific allowance | $ | 95,315 | $ | 100,032 | $ | - | $ | 108,847 | $ | 3,653 | ||||||||||||||
Loans with a specific allowance | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | $ | 357 | $ | 692 | $ | 135 | $ | 1,136 | $ | 9 | ||||||||||||||
Commercial Real Estate - Owner Occupied | 3,797 | 3,937 | 284 | 4,000 | 181 | |||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 549 | 597 | 76 | 616 | 40 | |||||||||||||||||||
Raw Land and Lots | 1,875 | 1,905 | 83 | 1,985 | 101 | |||||||||||||||||||
Single Family Investment Real Estate | 3,389 | 3,676 | 335 | 3,894 | 114 | |||||||||||||||||||
Commercial and Industrial | 2,722 | 3,086 | 204 | 3,214 | 84 | |||||||||||||||||||
Other Commercial | 255 | 269 | 35 | 254 | 6 | |||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 4,041 | 4,147 | 660 | 4,183 | 123 | |||||||||||||||||||
Other Consumer | 321 | 343 | 151 | 350 | 10 | |||||||||||||||||||
Total impaired loans with a specific allowance | $ | 17,306 | $ | 18,652 | $ | 1,963 | $ | 19,632 | $ | 668 | ||||||||||||||
Total impaired loans | $ | 112,621 | $ | 118,684 | $ | 1,963 | $ | 128,479 | $ | 4,321 | ||||||||||||||
The following table shows the Company’s impaired loans, by class, at December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | YTD Average Investment | Interest Income Recognized | ||||||||||||||||||||
Loans without a specific allowance | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | $ | 28,212 | $ | 28,696 | $ | - | $ | 28,925 | $ | 1,237 | ||||||||||||||
Commercial Real Estate - Owner Occupied | 13,573 | 13,665 | - | 14,579 | 787 | |||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 14,319 | 14,398 | - | 15,482 | 790 | |||||||||||||||||||
Raw Land and Lots | 40,421 | 40,485 | - | 43,162 | 1,538 | |||||||||||||||||||
Single Family Investment Real Estate | 5,487 | 6,185 | - | 7,031 | 253 | |||||||||||||||||||
Commercial and Industrial | 2,201 | 2,232 | - | 2,757 | 154 | |||||||||||||||||||
Other Commercial | 189 | 189 | - | 191 | 11 | |||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 857 | 857 | - | 892 | 43 | |||||||||||||||||||
Indirect Auto | 35 | 42 | - | 56 | - | |||||||||||||||||||
Indirect Marine | 158 | 283 | - | 283 | 3 | |||||||||||||||||||
HELOCs | 1,592 | 1,748 | - | 1,802 | 6 | |||||||||||||||||||
Other Consumer | 286 | 329 | - | 332 | - | |||||||||||||||||||
Total impaired loans without a specific allowance | $ | 107,330 | $ | 109,109 | $ | - | $ | 115,492 | $ | 4,822 | ||||||||||||||
Loans with a specific allowance | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | $ | 4,057 | $ | 4,104 | $ | 643 | $ | 4,914 | $ | 177 | ||||||||||||||
Commercial Real Estate - Owner Occupied | 4,100 | 4,239 | 921 | 4,300 | 124 | |||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 15,084 | 15,121 | 848 | 15,209 | 851 | |||||||||||||||||||
Raw Land and Lots | 10,715 | 10,953 | 2,472 | 11,741 | 190 | |||||||||||||||||||
Single Family Investment Real Estate | 3,341 | 3,437 | 711 | 3,643 | 147 | |||||||||||||||||||
Commercial and Industrial | 4,511 | 4,728 | 1,000 | 4,938 | 110 | |||||||||||||||||||
Other Commercial | 714 | 722 | 153 | 686 | 33 | |||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 2,801 | 2,805 | 545 | 2,851 | 72 | |||||||||||||||||||
Consumer Construction | 235 | 262 | 106 | 230 | - | |||||||||||||||||||
HELOCs | 1,620 | 1,687 | 952 | 1,897 | 27 | |||||||||||||||||||
Other Consumer | 867 | 910 | 273 | 916 | 17 | |||||||||||||||||||
Total impaired loans with a specific allowance | $ | 48,045 | $ | 48,968 | $ | 8,624 | $ | 51,325 | $ | 1,748 | ||||||||||||||
Total impaired loans | $ | 155,375 | $ | 158,077 | $ | 8,624 | $ | 166,817 | $ | 6,570 | ||||||||||||||
Summary of Modified Loans that Continue to Accrue Interest Under the Terms of Restructuring Agreement | ' | |||||||||||||||||||||||
The following table provides a summary, by class, of modified loans that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and modified loans that have been placed in nonaccrual status, which are considered to be nonperforming, as of December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
No. of Loans | Recorded Investment | Outstanding Commitment | No. of Loans | Recorded Investment | Outstanding Commitment | |||||||||||||||||||
Performing | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | 1 | $ | 684 | $ | - | 5 | $ | 4,549 | $ | 73 | ||||||||||||||
Commercial Real Estate - Owner Occupied | 4 | 2,278 | - | 11 | 6,009 | - | ||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 6 | 3,771 | - | 10 | 13,103 | - | ||||||||||||||||||
Raw Land and Lots | 15 | 20,741 | - | 13 | 22,886 | - | ||||||||||||||||||
Single Family Investment Real Estate | 13 | 3,497 | - | 6 | 928 | - | ||||||||||||||||||
Commercial and Industrial | 7 | 1,125 | - | 5 | 1,041 | - | ||||||||||||||||||
Other Commercial | - | - | - | 1 | 236 | - | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 10 | 2,318 | - | 12 | 2,256 | - | ||||||||||||||||||
Other Consumer | 3 | 106 | - | 4 | 460 | - | ||||||||||||||||||
Total performing | 59 | $ | 34,520 | $ | - | 67 | $ | 51,468 | $ | 73 | ||||||||||||||
Nonperforming | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | 3 | $ | 947 | $ | - | 4 | 4,260 | - | ||||||||||||||||
Commercial Real Estate - Owner Occupied | 3 | 283 | - | 3 | 1,079 | - | ||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | - | - | - | 2 | 514 | - | ||||||||||||||||||
Raw Land and Lots | 2 | 3,973 | - | 2 | 4,032 | - | ||||||||||||||||||
Single Family Investment Real Estate | 1 | 50 | - | 2 | 427 | - | ||||||||||||||||||
Commercial and Industrial | 8 | 1,195 | - | 7 | 1,251 | - | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 2 | 794 | - | 1 | 202 | - | ||||||||||||||||||
Indirect Marine | - | - | - | 1 | 158 | - | ||||||||||||||||||
Other Consumer | 1 | 62 | - | 1 | 68 | - | ||||||||||||||||||
Total nonperforming | 20 | $ | 7,304 | $ | - | 23 | $ | 11,991 | $ | - | ||||||||||||||
Total performing and nonperforming | 79 | $ | 41,824 | $ | - | 90 | $ | 63,459 | $ | 73 | ||||||||||||||
Schedule of TDR by Class and Modification Type | ' | |||||||||||||||||||||||
The following table shows, by class and modification type, TDRs that occurred during the year ended December 31, 2013 as well as TDRs that had a payment default during 2013 that had been restructured during the twelve month period preceding the default (dollars in thousands): | ||||||||||||||||||||||||
Restructurings with | ||||||||||||||||||||||||
All Restructurings | payment default | |||||||||||||||||||||||
No. of Loans | Recorded investment at period end | No. of Loans | Recorded investment at period end | |||||||||||||||||||||
Modified to interest only, at a market rate | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Raw Land and Lots | 1 | $ | 43 | 1 | $ | 43 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 2 | 730 | - | - | ||||||||||||||||||||
Total interest only at market rate of interest | 3 | $ | 773 | 1 | $ | 43 | ||||||||||||||||||
Term modification, at a market rate | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Construction | 2 | $ | 697 | - | $ | - | ||||||||||||||||||
Commercial Real Estate - Owner Occupied | 2 | 1,085 | - | - | ||||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 1 | 745 | - | - | ||||||||||||||||||||
Raw Land and Lots | 3 | 378 | - | - | ||||||||||||||||||||
Single Family Investment Real Estate | 7 | 2,488 | - | - | ||||||||||||||||||||
Commercial and Industrial | 5 | 649 | - | - | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 3 | 707 | - | - | ||||||||||||||||||||
Other Consumer | 1 | 34 | - | - | ||||||||||||||||||||
Total loan term extended at a market rate | 24 | $ | 6,783 | - | $ | - | ||||||||||||||||||
Term modification, below market rate | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Real Estate - Owner Occupied | 1 | $ | 115 | - | $ | - | ||||||||||||||||||
Commercial and Industrial | 1 | 8 | - | - | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 1 | 154 | - | - | ||||||||||||||||||||
Total loan term extended at a below market rate | 3 | $ | 277 | - | $ | - | ||||||||||||||||||
Total | 30 | $ | 7,833 | 1 | $ | 43 | ||||||||||||||||||
The following table shows, by class and modification type, TDRs that occurred during the year ended December 31, 2012 as well as TDRs that had a payment default during 2012 that had been restructured during the twelve month period preceding the default (dollars in thousands): | ||||||||||||||||||||||||
Restructurings with | ||||||||||||||||||||||||
All Restructurings | payment default | |||||||||||||||||||||||
No. of Loans | Recorded investment at period end | No. of Loans | Recorded investment at period end | |||||||||||||||||||||
Modified to interest only, at a market rate | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Real Estate - Owner Occupied | 1 | $ | 216 | - | $ | - | ||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 2 | 759 | - | - | ||||||||||||||||||||
Raw Land and Lots | 3 | 257 | - | - | ||||||||||||||||||||
Single Family Investment Real Estate | 2 | 173 | - | - | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 1 | 124 | - | - | ||||||||||||||||||||
Indirect Marine | 1 | 158 | 1 | 158 | ||||||||||||||||||||
Total interest only at market rate of interest | 10 | $ | 1,687 | 1 | $ | 158 | ||||||||||||||||||
Term modification, at a market rate | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Real Estate - Owner Occupied | 5 | $ | 5,328 | 2 | $ | 1,356 | ||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 2 | 715 | - | - | ||||||||||||||||||||
Raw Land and Lots | 1 | 595 | - | - | ||||||||||||||||||||
Commercial and Industrial | 6 | 408 | - | - | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 5 | 858 | - | - | ||||||||||||||||||||
Indirect Marine | - | - | 1 | 26 | ||||||||||||||||||||
Other Consumer | 4 | 460 | - | - | ||||||||||||||||||||
Total loan term extended at a market rate | 23 | $ | 8,364 | 3 | $ | 1,382 | ||||||||||||||||||
Term modification, below market rate | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Real Estate - Owner Occupied | 4 | $ | 647 | - | $ | - | ||||||||||||||||||
Raw Land and Lots | 1 | 59 | - | - | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Mortgage | 1 | 64 | - | - | ||||||||||||||||||||
Other Consumer | 1 | 68 | - | - | ||||||||||||||||||||
Total loan term extended at a below market rate | 7 | $ | 838 | - | $ | - | ||||||||||||||||||
Interest rate modification, below market rate | ||||||||||||||||||||||||
Commercial: | ||||||||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 2 | $ | 2,390 | - | $ | - | ||||||||||||||||||
Total interest only at below market rate of interest | 2 | $ | 2,390 | - | $ | - | ||||||||||||||||||
Total | 42 | $ | 13,279 | 4 | $ | 1,540 | ||||||||||||||||||
Allowance for Loan Loss Activity, by Portfolio Segment, Balances for Allowance for Credit Losses, and Loans Based on Impairment Methodology | ' | |||||||||||||||||||||||
The following table shows the allowance for loan loss activity, balances for allowance for credit losses, and loans based on impairment methodology by portfolio segment for the year ended December 31, 2013. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands): | ||||||||||||||||||||||||
Commercial | Consumer | Unallocated | Total | |||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Balance, beginning of the year | $ | 24,821 | $ | 10,107 | $ | -12 | $ | 34,916 | ||||||||||||||||
Recoveries credited to allowance | 1,496 | 1,285 | - | 2,781 | ||||||||||||||||||||
Loans charged off | -8,534 | -5,084 | - | -13,618 | ||||||||||||||||||||
Provision charged to operations | 2,073 | 3,919 | 64 | 6,056 | ||||||||||||||||||||
Balance, end of period | $ | 19,856 | $ | 10,227 | $ | 52 | $ | 30,135 | ||||||||||||||||
Ending Balance, ALL: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,152 | $ | 811 | $ | - | $ | 1,963 | ||||||||||||||||
Loans collectively evaluated for impairment | 18,704 | 9,416 | 52 | 28,172 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | - | - | - | - | ||||||||||||||||||||
Total | $ | 19,856 | $ | 10,227 | $ | 52 | $ | 30,135 | ||||||||||||||||
Ending Balance, Loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 101,894 | $ | 7,105 | $ | - | $ | 108,999 | ||||||||||||||||
Loans collectively evaluated for impairment | 2,059,079 | 867,668 | - | 2,926,747 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | 2,732 | 890 | - | 3,622 | ||||||||||||||||||||
Total | $ | 2,163,705 | $ | 875,663 | $ | - | $ | 3,039,368 | ||||||||||||||||
The following table shows the allowance for loan loss activity, balances for allowance for credit losses, and loans based on impairment methodology by portfolio segment for the year ended December 31, 2012. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands): | ||||||||||||||||||||||||
Commercial | Consumer | Unallocated | Total | |||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Balance, beginning of the year | $ | 27,891 | $ | 11,498 | $ | 81 | $ | 39,470 | ||||||||||||||||
Recoveries credited to allowance | 589 | 1,122 | - | 1,711 | ||||||||||||||||||||
Loans charged off | -12,852 | -5,613 | - | -18,465 | ||||||||||||||||||||
Provision charged to operations | 9,193 | 3,100 | -93 | 12,200 | ||||||||||||||||||||
Balance, end of period | $ | 24,821 | $ | 10,107 | $ | -12 | $ | 34,916 | ||||||||||||||||
Ending Balance, ALL: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 6,626 | $ | 1,876 | $ | - | $ | 8,502 | ||||||||||||||||
Loans collectively evaluated for impairment | 18,073 | 8,231 | -12 | 26,292 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | 122 | - | - | 122 | ||||||||||||||||||||
Total | $ | 24,821 | $ | 10,107 | $ | -12 | $ | 34,916 | ||||||||||||||||
Ending Balance, Loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 143,330 | $ | 7,480 | $ | - | $ | 150,810 | ||||||||||||||||
Loans collectively evaluated for impairment | 1,956,184 | 855,288 | - | 2,811,472 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | 3,594 | 971 | - | 4,565 | ||||||||||||||||||||
Total | $ | 2,103,108 | $ | 863,739 | $ | - | $ | 2,966,847 | ||||||||||||||||
The following table shows the allowance for loan loss activity, balances for allowance for credit losses, and loans based on impairment methodology by portfolio segment for the year ended December 31, 2011. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands): | ||||||||||||||||||||||||
Commercial | Consumer | Unallocated | Total | |||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Balance, beginning of the year | $ | 28,255 | $ | 10,189 | $ | -38 | $ | 38,406 | ||||||||||||||||
Recoveries credited to allowance | 924 | 1,206 | - | 2,130 | ||||||||||||||||||||
Loans charged off | -10,891 | -6,975 | - | -17,866 | ||||||||||||||||||||
Provision charged to operations | 9,603 | 7,078 | 119 | 16,800 | ||||||||||||||||||||
Balance, end of period | $ | 27,891 | $ | 11,498 | $ | 81 | $ | 39,470 | ||||||||||||||||
Ending Balance, ALL: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 10,127 | $ | 1,278 | $ | - | $ | 11,405 | ||||||||||||||||
Loans collectively evaluated for impairment | 17,679 | 10,220 | 81 | 27,980 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | 85 | - | - | 85 | ||||||||||||||||||||
Total | $ | 27,891 | $ | 11,498 | $ | 81 | $ | 39,470 | ||||||||||||||||
Ending Balance, Loans: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 239,853 | $ | 5,334 | $ | - | $ | 245,187 | ||||||||||||||||
Loans collectively evaluated for impairment | 1,707,560 | 855,939 | - | 2,563,499 | ||||||||||||||||||||
Loans acquired with deteriorated credit quality | 8,828 | 1,069 | - | 9,897 | ||||||||||||||||||||
Total | $ | 1,956,241 | $ | 862,342 | $ | - | $ | 2,818,583 | ||||||||||||||||
Loans Receivables Related Risk Rating Excluding Purchased Impaired Loans | ' | |||||||||||||||||||||||
The following table shows all loans, excluding purchased impaired loans, in the commercial portfolios by class with their related risk rating current as of December 31, 2013 (dollars in thousands): | ||||||||||||||||||||||||
3-Jan | 4 | 5 | 6 | 7 | 8 | Total | ||||||||||||||||||
Commercial Construction | $ | 24,399 | $ | 148,251 | $ | 20,370 | $ | 13,772 | $ | 6,883 | $ | - | $ | 213,675 | ||||||||||
Commercial Real Estate - Owner Occupied | 149,632 | 324,394 | 10,017 | 10,926 | 5,795 | - | 500,764 | |||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 224,702 | 453,279 | 21,953 | 46,084 | 9,887 | - | 755,905 | |||||||||||||||||
Raw Land and Lots | 8,648 | 98,927 | 14,132 | 16,439 | 46,926 | - | 185,072 | |||||||||||||||||
Single Family Investment Real Estate | 38,327 | 168,564 | 12,302 | 11,522 | 6,650 | - | 237,365 | |||||||||||||||||
Commercial and Industrial | 68,748 | 123,585 | 8,254 | 8,752 | 3,822 | 2,541 | 215,702 | |||||||||||||||||
Other Commercial | 18,593 | 23,160 | 8,529 | 1,897 | 311 | - | 52,490 | |||||||||||||||||
Total | $ | 533,049 | $ | 1,340,160 | $ | 95,557 | $ | 109,392 | $ | 80,274 | $ | 2,541 | $ | 2,160,973 | ||||||||||
The following table shows all loans, excluding purchased impaired loans, in the commercial portfolios by class with their related risk rating current as of December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||||
3-Jan | 4 | 5 | 6 | 7 | 8 | Total | ||||||||||||||||||
Commercial Construction | $ | 5,504 | $ | 117,769 | $ | 14,637 | $ | 33,815 | $ | 30,619 | $ | - | $ | 202,344 | ||||||||||
Commercial Real Estate - Owner Occupied | 145,977 | 321,486 | 15,197 | 19,051 | 11,713 | - | 513,424 | |||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 161,343 | 417,412 | 48,840 | 34,646 | 20,519 | - | 682,760 | |||||||||||||||||
Raw Land and Lots | 3,943 | 114,053 | 13,260 | 29,194 | 42,148 | 186 | 202,784 | |||||||||||||||||
Single Family Investment Real Estate | 43,705 | 156,636 | 12,111 | 13,150 | 7,467 | - | 233,069 | |||||||||||||||||
Commercial and Industrial | 68,308 | 120,442 | 10,584 | 12,064 | 6,045 | 139 | 217,582 | |||||||||||||||||
Other Commercial | 14,189 | 18,260 | 10,710 | 3,489 | 844 | 59 | 47,551 | |||||||||||||||||
Total | $ | 442,969 | $ | 1,266,058 | $ | 125,339 | $ | 145,409 | $ | 119,355 | $ | 384 | $ | 2,099,514 | ||||||||||
Loans Receivables Related Risk Rating Including Purchased Impaired Loans | ' | |||||||||||||||||||||||
The following table shows only purchased impaired loans in the commercial portfolios by class with their related risk rating and credit quality indicator information current as of December 31, 2013 (dollars in thousands): | ||||||||||||||||||||||||
4 | 5 | 6 | 7 | 8 | Total | |||||||||||||||||||
Raw Land and Lots | $ | - | $ | 653 | $ | - | $ | 1,804 | $ | - | $ | 2,457 | ||||||||||||
Single Family Investment Real Estate | 275 | - | - | - | - | 275 | ||||||||||||||||||
Total | $ | 275 | $ | 653 | $ | - | $ | 1,804 | $ | - | $ | 2,732 | ||||||||||||
The following table shows only purchased impaired loans in the commercial portfolios by class with their related risk rating and credit quality indicator information current as of December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||||
5 | 6 | 7 | 8 | Total | ||||||||||||||||||||
Commercial Real Estate - Owner Occupied | $ | - | $ | - | $ | 247 | $ | - | $ | 247 | ||||||||||||||
Raw Land and Lots | - | - | 2,942 | - | 2,942 | |||||||||||||||||||
Single Family Investment Real Estate | 312 | - | 14 | - | 326 | |||||||||||||||||||
Commercial and Industrial | - | - | 79 | - | 79 | |||||||||||||||||||
Total | $ | 312 | $ | - | $ | 3,282 | $ | - | $ | 3,594 | ||||||||||||||
Schedule of Acquired Loan Portfolio and Accretable Yield | ' | |||||||||||||||||||||||
The following shows changes in the Company’s acquired impaired loan portfolio and accretable yield for ASC 310-30 loans and the acquired performing loan portfolio and remaining discount for ASC 310-20 loans for the years ended December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
ASC 310-30 Loans | ASC 310-20 Loans | ASC 310-30 Loans | ASC 310-20 Loans | |||||||||||||||||||||
Accretable Yield | Carrying Amount of Loans | Remaining Discount | Carrying Amount of Loans | Accretable Yield | Carrying Amount of Loans | Remaining Discount | Carrying Amount of Loans | |||||||||||||||||
Balance at beginning of period | $ | 3,147 | $ | 4,565 | $ | 5,350 | $ | 473,283 | $ | 5,140 | $ | 9,897 | $ | 9,010 | $ | 663,510 | ||||||||
Additions | - | - | - | - | - | - | - | - | ||||||||||||||||
Accretion | -55 | - | -2,009 | - | -353 | - | -3,660 | - | ||||||||||||||||
Charge-offs | -112 | -96 | - | -1,774 | -1,640 | -412 | - | -2,320 | ||||||||||||||||
Transfers to OREO | - | -201 | - | -207 | - | -2,371 | - | -2,895 | ||||||||||||||||
Payments received, net | - | -646 | - | -96,806 | - | -2,549 | - | -185,012 | ||||||||||||||||
Balance at end of period | $ | 2,980 | $ | 3,622 | $ | 3,341 | $ | 374,496 | $ | 3,147 | $ | 4,565 | $ | 5,350 | $ | 473,283 | ||||||||
BANK_PREMISES_AND_EQUIPMENT_Ta
BANK PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
BANK PREMISES AND EQUIPMENT [Abstract] | ' | |||||
Summary of Bank Premises and Equipment | ' | |||||
Bank premises and equipment as of December 31, 2013 and 2012 are as follows (dollars in thousands): | ||||||
2013 | 2012 | |||||
Land | $ | 23,652 | $ | 24,493 | ||
Land improvements and buildings | 62,329 | 62,721 | ||||
Leasehold improvements | 5,313 | 5,290 | ||||
Furniture and equipment | 36,133 | 37,707 | ||||
Equipment lease | 62 | 62 | ||||
Construction in progress | 9,323 | 6,634 | ||||
Total | 136,812 | 136,907 | ||||
Less accumulated depreciation and amortization | 53,997 | 51,498 | ||||
Bank premises and equipment, net | $ | 82,815 | $ | 85,409 | ||
Schedule of Future Minimum Rental Payments Required | ' | |||||
Future minimum rental payments required under non-cancelable operating leases for bank premises that have initial or remaining terms in excess of one year as of December 31, 2013 are as follows for the years ending (dollars in thousands): | ||||||
2014 | $ | 5,380 | ||||
2015 | 4,985 | |||||
2016 | 4,232 | |||||
2017 | 3,967 | |||||
2018 | 3,807 | |||||
Thereafter | 10,410 | |||||
Total of future payments | $ | 32,781 | ||||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INTANGIBLE ASSETS [Abstract] | ' | ||||||||
Information Concerning Intangible Assets with Finite Life | ' | ||||||||
Information concerning intangible assets with a finite life is presented in the following table (dollars in thousands): | |||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||
31-Dec-13 | |||||||||
Amortizable core deposit intangibles | $ | 46,615 | $ | 34,635 | $ | 11,980 | |||
Trademark intangible | 1,200 | 1,200 | - | ||||||
31-Dec-12 | |||||||||
Amortizable core deposit intangibles | $ | 46,615 | $ | 30,837 | $ | 15,778 | |||
Trademark intangible | 1,200 | 1,167 | 33 | ||||||
Estimated Remaining Amortization Expense of Core Deposit Intangibles | ' | ||||||||
As of December 31, 2013, the estimated remaining amortization expense of core deposit intangibles is as follows (dollars in thousands): | |||||||||
2014 | $ | 2,898 | |||||||
2015 | 2,463 | ||||||||
2016 | 1,862 | ||||||||
2017 | 1,437 | ||||||||
2018 | 906 | ||||||||
Thereafter | 2,414 | ||||||||
Total estimated amortization expense | $ | 11,980 | |||||||
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
DEPOSITS [Abstract] | ' | |||||
Schedule of Deposits by Type | ' | |||||
The major types of interest-bearing deposits are as follows for the years ending (dollars in thousands): | ||||||
2013 | 2012 | |||||
Interest-bearing deposits: | ||||||
NOW accounts | $ | 498,068 | $ | 454,150 | ||
Money market accounts | 940,215 | 957,130 | ||||
Savings accounts | 235,034 | 207,846 | ||||
Time deposits of $100,000 and over | 427,597 | 508,630 | ||||
Other time deposits | 444,254 | 524,110 | ||||
Total interest-bearing deposits | $ | 2,545,168 | $ | 2,651,866 | ||
Scheduled Maturities of Time Deposits | ' | |||||
As of December 31, 2013, the scheduled maturities of time deposits are as follows for the years ending (dollars in thousands): | ||||||
2014 | $ | 563,788 | ||||
2015 | 141,329 | |||||
2016 | 76,595 | |||||
2017 | 37,814 | |||||
2018 | 52,325 | |||||
Total scheduled maturities of time deposits | $ | 871,851 | ||||
BORROWINGS_Tables
BORROWINGS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
BORROWINGS [Abstract] | ' | |||||||||||||
Short-Term Borrowings | ' | |||||||||||||
Total short-term borrowings consist of the following as of December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||
2013 | 2012 | |||||||||||||
Securities sold under agreements to repurchase | $ | 52,455 | $ | 54,270 | ||||||||||
Other short-term borrowings | 211,500 | 78,000 | ||||||||||||
Total short-term borrowings | $ | 263,955 | $ | 132,270 | ||||||||||
Maximum month-end outstanding balance | $ | 263,955 | $ | 154,116 | ||||||||||
Average outstanding balance during the period | 119,433 | 91,993 | ||||||||||||
Average interest rate during the period | 0.30% | 0.31% | ||||||||||||
Average interest rate at end of period | 0.30% | 0.28% | ||||||||||||
Other short-term borrowings: | ||||||||||||||
Federal Funds purchased | $ | 31,500 | $ | 38,000 | ||||||||||
FHLB | $ | 180,000 | $ | 40,000 | ||||||||||
Trust Preferred Capital Notes Qualify for Tier 1 Capital | ' | |||||||||||||
The trust preferred capital notes currently qualify for Tier 1 capital of the Company for regulatory purposes. | ||||||||||||||
Principal | Investment(1) | Spread to | Rate | Maturity | ||||||||||
3-Month LIBOR | ||||||||||||||
Trust Preferred Capital Note - Statutory Trust I | $ | 22,500,000 | $ | 696,000 | 2.75% | 3.00% | 6/17/34 | |||||||
Trust Preferred Capital Note - Statutory Trust II | 36,000,000 | 1,114,000 | 1.40% | 1.65% | 6/15/36 | |||||||||
Total | $ | 58,500,000 | ||||||||||||
(1) reported as 'Other Assets' within the Consolidated Balance Sheets | ||||||||||||||
Advances from the FHLB | ' | |||||||||||||
As of December 31, 2013, the advances from the FHLB consist of the following (dollars in thousands): | ||||||||||||||
Long Term Type | Spread to | Interest Rate | Maturity Date | Conversion Date | Option Frequency | Advance Amount | ||||||||
3-Month LIBOR | ||||||||||||||
Adjustable Rate Credit | 0.44% | 0.69% | 8/23/22 | n/a | n/a | $ | 55,000 | |||||||
Adjustable Rate Credit | 0.45% | 0.70% | 11/23/22 | n/a | n/a | 65,000 | ||||||||
Adjustable Rate Credit | 0.45% | 0.70% | 11/23/22 | n/a | n/a | 10,000 | ||||||||
Adjustable Rate Credit | 0.45% | 0.70% | 11/23/22 | n/a | n/a | 10,000 | ||||||||
$ | 140,000 | |||||||||||||
As of December 31, 2012, the advances from the FHLB consisted of the following (dollars in thousands): | ||||||||||||||
Long Term Type | Spread to | Interest Rate | Maturity Date | Conversion Date | Option Frequency | Advance Amount | ||||||||
3-Month LIBOR | ||||||||||||||
Adjustable Rate Credit | 0.44% | 0.75% | 8/23/22 | n/a | n/a | $ | 55,000 | |||||||
Adjustable Rate Credit | 0.45% | 0.76% | 11/23/22 | n/a | n/a | 65,000 | ||||||||
Adjustable Rate Credit | 0.45% | 0.76% | 11/23/22 | n/a | n/a | 10,000 | ||||||||
Adjustable Rate Credit | 0.45% | 0.76% | 11/23/22 | n/a | n/a | 10,000 | ||||||||
$ | 140,000 | |||||||||||||
Contractual Maturities of Long-Term Debt | ' | |||||||||||||
As of December 31, 2013, the contractual maturities of long-term debt are as follows for the years ending (dollars in thousands): | ||||||||||||||
Subordinated Debt | FHLB Advances | Prepayment Penalty | Total Long-term Borrowings | |||||||||||
2014 | $ | - | $ | - | $ | -1,787 | $ | -1,787 | ||||||
2015 | - | - | -1,831 | -1,831 | ||||||||||
2016 | 16,359 | - | -1,882 | 14,477 | ||||||||||
2017 | - | - | -1,923 | -1,923 | ||||||||||
2018 | - | - | -1,969 | -1,969 | ||||||||||
Thereafter | - | 140,000 | -7,918 | 132,082 | ||||||||||
Total long-term borrowings | $ | 16,359 | $ | 140,000 | $ | -17,310 | $ | 139,049 | ||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | |||||
Balances of Commitments and Contingencies | ' | |||||
The following table presents the balances of commitments and contingencies (dollars in thousands): | ||||||
2013 | 2012 | |||||
Commitments with off-balance sheet risk: | ||||||
Commitments to extend credit (1) | $ | 891,680 | $ | 844,766 | ||
Standby letters of credit | 48,107 | 45,536 | ||||
Mortgage loan rate lock commitments | 54,834 | 133,326 | ||||
Total commitments with off-balance sheet risk | $ | 994,621 | $ | 1,023,628 | ||
Commitments with balance sheet risk: | ||||||
Loans held for sale | $ | 53,185 | $ | 167,698 | ||
Total other commitments | $ | 1,047,806 | $ | 1,191,326 | ||
(1) Includes unfunded overdraft protection. | ||||||
DERIVATIVES_Tables
DERIVATIVES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Cash Flow Hedging [Member] | ' | ||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||
Summary of the Derivatives | ' | ||||||||||||||||
Shown below is a summary of the derivatives designated as cash flow hedges at December 31, 2013 and 2012 (dollars in thousands): | |||||||||||||||||
Notional | Receive | Pay | Life | ||||||||||||||
Positions | Amount | Asset | Liability | Rate | Rate | (Years) | |||||||||||
As of December 31, 2013 | |||||||||||||||||
Pay fixed - receive floating interest rate swaps | 1 | $ | 36,000 | $ | - | $ | 3,046 | 0.25% | 3.51% | 3.46 | |||||||
Receive fixed - pay floating interest rate swaps | 8 | $ | 100,000 | $ | - | $ | 516 | 5.17% | * | 3.89% | * | 5.72 | |||||
Notional | Receive | Pay | Life | ||||||||||||||
Positions | Amount | Asset | Liability | Rate | Rate | (Years) | |||||||||||
As of December 31, 2012 | |||||||||||||||||
Pay fixed - receive floating interest rate swaps | 1 | $ | 36,000 | $ | - | $ | 4,489 | 0.31% | 3.51% | 4.46 | |||||||
*This receive rate is a weighted average rate for the 8 loan swaps that have a receive rate range from 4.71% to 6.09%. The pay rate is a weighted average rate taking into consideration the floor rates discussed above. | |||||||||||||||||
Interest Rate Swap [Member] | ' | ||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||
Summary of the Derivatives | ' | ||||||||||||||||
Shown below is a summary regarding loan swap derivative activities at December 31, 2013 and 2012 (dollars in thousands): | |||||||||||||||||
Notional | Receive | Pay | Life | ||||||||||||||
Positions | Amount | Asset | Liability | Rate | Rate | (Years) | |||||||||||
As of December 31, 2013 | |||||||||||||||||
Receive fixed - pay floating interest rate swaps | 1 | $ | 718 | $ | 33 | $ | - | 4.58% | 2.92% | 8.59 | |||||||
Pay fixed - receive floating interest rate swaps | 1 | $ | 718 | $ | - | $ | 33 | 2.92% | 4.58% | 8.59 | |||||||
Notional | Receive | Pay | Life | ||||||||||||||
Positions | Amount | Asset | Liability | Rate | Rate | (Years) | |||||||||||
As of December 31, 2012 | |||||||||||||||||
Receive fixed - pay floating interest rate swaps | 1 | $ | 744 | $ | 18 | $ | - | 4.58% | 2.96% | 9.59 | |||||||
Pay fixed - receive floating interest rate swaps | 1 | $ | 744 | $ | - | $ | 18 | 2.96% | 4.58% | 9.59 | |||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | ' | ||||||||
Change in Accumulated Other Comprehensive Income | ' | ||||||||
The change in accumulated other comprehensive income (loss) for the year ended December 31, 2013 is summarized as follows, net of tax (dollars in thousands): | |||||||||
Unrealized Gains (losses) on Securities | Change in FV of Cash Flow Hedges | Total | |||||||
Balance - December 31, 2012 | $ | 14,573 | $ | -4,489 | $ | 10,084 | |||
Other comprehensive income (loss) | -13,367 | 583 | -12,784 | ||||||
Amounts reclassified from accumulated other comprehensive income | -14 | 524 | 510 | ||||||
Net current period other comprehensive income (loss) | -13,381 | 1,107 | -12,274 | ||||||
Balance - December 31, 2013 | $ | 1,192 | $ | -3,382 | $ | -2,190 | |||
The change in accumulated other comprehensive income (loss) for the year ended December 31, 2012 is summarized as follows, net of tax (dollars in thousands): | |||||||||
Unrealized Gains (losses) on Securities | Change in FV of Cash Flow Hedge | Total | |||||||
Balance - December 31, 2011 | $ | 13,943 | $ | -4,293 | $ | 9,650 | |||
Other comprehensive income (loss) | 753 | -922 | -169 | ||||||
Amounts reclassified from accumulated other comprehensive income | -123 | 726 | 603 | ||||||
Net current period other comprehensive income (loss) | 630 | -196 | 434 | ||||||
Balance - December 31, 2012 | $ | 14,573 | $ | -4,489 | $ | 10,084 | |||
The change in accumulated other comprehensive income (loss) for the year ended December 31, 2011 is summarized as follows, net of tax (dollars in thousands): | |||||||||
Unrealized Gains (losses) on Securities | Change in FV of Cash Flow Hedge | Total | |||||||
Balance - December 31, 2010 | $ | 5,046 | $ | -1,475 | $ | 3,571 | |||
Other comprehensive income (loss) | 9,231 | -3,233 | 5,998 | ||||||
Amounts reclassified from accumulated other comprehensive income | -334 | 415 | 81 | ||||||
Net current period other comprehensive income (loss) | 8,897 | -2,818 | 6,079 | ||||||
Balance - December 31, 2011 | $ | 13,943 | $ | -4,293 | $ | 9,650 | |||
REGULATORY_MATTERS_AND_CAPITAL1
REGULATORY MATTERS AND CAPITAL (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
REGULATORY MATTERS AND CAPITAL [Abstract] | ' | ||||||||||||||
Schedule of Bank Capital Amount and Ratio | ' | ||||||||||||||
The Company and the Bank’s capital amounts and ratios are also presented in the following table at December 31, 2013 and 2012 (dollars in thousands): | |||||||||||||||
Actual | Required for Capital Adequacy Purposes | Required in Order to Be Well Capitalized Under PCA | |||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||
As of December 31, 2013 | |||||||||||||||
Total capital to risk weighted assets: | |||||||||||||||
Consolidated | $ | 465,360 | 14.17% | $ | 262,730 | 8.00% | NA | NA | |||||||
Union First Market Bank | 442,784 | 13.56% | 261,229 | 8.00% | $ | 326,537 | 10.00% | ||||||||
Tier 1 capital to risk weighted assets: | |||||||||||||||
Consolidated | 428,490 | 13.05% | 131,338 | 4.00% | NA | NA | |||||||||
Union First Market Bank | 405,925 | 12.43% | 130,628 | 4.00% | 195,941 | 6.00% | |||||||||
Tier 1 capital to average adjusted assets: | |||||||||||||||
Consolidated | 428,490 | 10.70% | 160,183 | 4.00% | NA | NA | |||||||||
Union First Market Bank | 405,925 | 10.19% | 159,342 | 4.00% | 199,178 | 5.00% | |||||||||
As of December 31, 2012 | |||||||||||||||
Total capital to risk weighted assets: | |||||||||||||||
Consolidated | $ | 454,444 | 14.57% | $ | 249,487 | 8.00% | NA | NA | |||||||
Union First Market Bank | 438,860 | 14.14% | 248,294 | 8.00% | $ | 310,367 | 10.00% | ||||||||
Tier 1 capital to risk weighted assets: | |||||||||||||||
Consolidated | 409,879 | 13.14% | 124,743 | 4.00% | NA | NA | |||||||||
Union First Market Bank | 394,296 | 12.70% | 124,147 | 4.00% | 186,220 | 6.00% | |||||||||
Tier 1 capital to average adjusted assets: | |||||||||||||||
Consolidated | 409,879 | 10.29% | 159,408 | 4.00% | NA | NA | |||||||||
Union First Market Bank | 394,296 | 9.94% | 158,631 | 4.00% | 198,288 | 5.00% | |||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | |||||||||||||||||||||||||||
The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis at December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 using | ||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Balance | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Interest rate swap - loans | $ | - | $ | 33 | $ | - | $ | 33 | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||
U.S. government and agency securities | - | 2,153 | - | 2,153 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | - | 254,830 | - | 254,830 | ||||||||||||||||||||||||
Corporate and other bonds | - | 9,434 | - | 9,434 | ||||||||||||||||||||||||
Mortgage-backed securities | - | 407,362 | - | 407,362 | ||||||||||||||||||||||||
Other securities | - | 3,569 | - | 3,569 | ||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Interest rate swap - loans | $ | - | $ | 33 | $ | - | $ | 33 | ||||||||||||||||||||
Cash flow hedge - prime loan swap | - | 516 | - | 516 | ||||||||||||||||||||||||
Cash flow hedge - trust preferred | - | 3,046 | - | 3,046 | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 using | ||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Balance | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Interest rate swap - loans | $ | - | $ | 18 | $ | - | $ | 18 | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||||||||||
U.S. government and agency securities | - | 2,849 | - | 2,849 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | - | 229,778 | - | 229,778 | ||||||||||||||||||||||||
Corporate and other bonds | - | 7,212 | - | 7,212 | ||||||||||||||||||||||||
Mortgage-backed securities | - | 342,174 | - | 342,174 | ||||||||||||||||||||||||
Other securities | - | 3,369 | - | 3,369 | ||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Interest rate swap - loans | $ | - | $ | 18 | $ | - | $ | 18 | ||||||||||||||||||||
Cash flow hedge - trust preferred | - | 4,489 | - | 4,489 | ||||||||||||||||||||||||
Schedule of Financial Assets Measured at Fair Value on Nonrecurring Basis | ' | |||||||||||||||||||||||||||
The following tables summarize the Company’s financial assets that were measured at fair value on a nonrecurring basis at December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 using | ||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Balance | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Loans held for sale | $ | - | $ | 53,185 | $ | - | $ | 53,185 | ||||||||||||||||||||
Impaired loans | - | - | 7,985 | 7,985 | ||||||||||||||||||||||||
Other real estate owned | - | - | 34,116 | 34,116 | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 using | ||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Balance | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Loans held for sale | $ | - | $ | 167,698 | $ | - | $ | 167,698 | ||||||||||||||||||||
Impaired loans | - | - | 30,104 | 30,104 | ||||||||||||||||||||||||
Other real estate owned | - | - | 32,834 | 32,834 | ||||||||||||||||||||||||
Summary of Quantitative Information About Level 3 Fair Value Measurements | ' | |||||||||||||||||||||||||||
The following table displays quantitative information about Level 3 Fair Value Measurements for December 31, 2013 (dollars in thousands): | ||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Inputs | Weighted Average | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Commercial Construction | $ | 219 | Market comparables | Discount applied to market comparables (1) | 0% | |||||||||||||||||||||||
Commercial Real Estate - Owner Occupied | 2,043 | Market comparables | Discount applied to market comparables (1) | 17% | ||||||||||||||||||||||||
Raw Land and Lots | 908 | Market comparables | Discount applied to market comparables (1) | 10% | ||||||||||||||||||||||||
Single Family Investment Real Estate | 1,332 | Market comparables | Discount applied to market comparables (1) | 0% | ||||||||||||||||||||||||
Commercial and Industrial | 1,719 | Market comparables | Discount applied to market comparables (1) | 28% | ||||||||||||||||||||||||
Other (2) | 1,764 | Market comparables | Discount applied to market comparables (1) | 0% | ||||||||||||||||||||||||
Total Impaired Loans | 7,985 | |||||||||||||||||||||||||||
Other real estate owned | 34,116 | Market comparables | Discount applied to market comparables (1) | 33% | ||||||||||||||||||||||||
Total | $ | 42,101 | ||||||||||||||||||||||||||
(1) A discount percentage (in addition to expected selling costs) is applied based on age of independent appraisals, current market conditions, and experience within the local market. | ||||||||||||||||||||||||||||
(2) The "Other" category of the impaired loans section from the table above consists of Other Commercial, Mortgage, Consumer Construction, HELOCs, and Other Consumer. | ||||||||||||||||||||||||||||
The following table displays quantitative information about Level 3 Fair Value Measurements for December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | ||||||||||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Inputs | Weighted Average | |||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Commercial Construction | $ | 3,190 | Market comparables | Discount applied to market comparables (1) | 6% | |||||||||||||||||||||||
Commercial Real Estate - Owner Occupied | 2,001 | Market comparables | Discount applied to market comparables (1) | 13% | ||||||||||||||||||||||||
Commercial Real Estate - Non-Owner Occupied | 13,100 | Market comparables | Discount applied to market comparables (1) | 9% | ||||||||||||||||||||||||
Raw Land and Lots | 7,300 | Market comparables | Discount applied to market comparables (1) | 6% | ||||||||||||||||||||||||
Single Family Investment Real Estate | 1,241 | Market comparables | Discount applied to market comparables (1) | 6% | ||||||||||||||||||||||||
Commercial and Industrial | 1,810 | Market comparables | Discount applied to market comparables (1) | 23% | ||||||||||||||||||||||||
Other (2) | 1,462 | Market comparables | Discount applied to market comparables (1) | 27% | ||||||||||||||||||||||||
Total Impaired Loans | 30,104 | |||||||||||||||||||||||||||
Other real estate owned | 32,834 | Market comparables | Discount applied to market comparables (1) | 33% | ||||||||||||||||||||||||
Total | $ | 62,938 | ||||||||||||||||||||||||||
(1) A discount percentage (in addition to expected selling costs) is applied based on age of independent appraisals, current market conditions, and experience within the local market. | ||||||||||||||||||||||||||||
(2) The "Other" category of the impaired loans section from the table above consists of Other Commercial, Mortgage, Consumer Construction, HELOCs, and Other Consumer. | ||||||||||||||||||||||||||||
Carrying Values and Estimated Fair Values of the Company's Financial Instruments | ' | |||||||||||||||||||||||||||
The carrying values and estimated fair values of the Company’s financial instruments as of December 31, 2013 and 2012 are as follows (dollars in thousands): | ||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 using | ||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total Fair Value | |||||||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Balance | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 73,023 | $ | 73,023 | $ | - | $ | - | $ | 73,023 | ||||||||||||||||||
Securities available for sale | 677,348 | - | 677,348 | - | 677,348 | |||||||||||||||||||||||
Restricted stock | 26,036 | - | 26,036 | - | 26,036 | |||||||||||||||||||||||
Loans held for sale | 53,185 | - | 53,185 | - | 53,185 | |||||||||||||||||||||||
Net loans | 3,009,233 | - | - | 3,035,504 | 3,035,504 | |||||||||||||||||||||||
Interest rate swap - loans | 33 | - | 33 | - | 33 | |||||||||||||||||||||||
Accrued interest receivable | 15,000 | - | 15,000 | - | 15,000 | |||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Deposits | $ | 3,236,843 | $ | - | $ | 3,238,777 | $ | - | $ | 3,238,777 | ||||||||||||||||||
Borrowings | 463,314 | - | 443,237 | - | 443,237 | |||||||||||||||||||||||
Accrued interest payable | 902 | - | 902 | - | 902 | |||||||||||||||||||||||
Cash flow hedge - prime loan swap | 516 | - | 516 | - | 516 | |||||||||||||||||||||||
Cash flow hedge - trust preferred | 3,046 | - | 3,046 | - | 3,046 | |||||||||||||||||||||||
Interest rate swap - loans | 33 | - | 33 | - | 33 | |||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 using | ||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total Fair Value | |||||||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Balance | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 82,902 | $ | 82,902 | $ | - | $ | - | $ | 82,902 | ||||||||||||||||||
Securities available for sale | 585,382 | - | 585,382 | - | 585,382 | |||||||||||||||||||||||
Restricted stock | 20,687 | - | 20,687 | - | 20,687 | |||||||||||||||||||||||
Loans held for sale | 167,698 | - | 167,698 | - | 167,698 | |||||||||||||||||||||||
Net loans | 2,931,931 | - | - | 2,956,339 | 2,956,339 | |||||||||||||||||||||||
Interest rate swap - loans | 18 | - | 18 | - | 18 | |||||||||||||||||||||||
Accrued interest receivable | 19,663 | - | 19,663 | - | 19,663 | |||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Deposits | $ | 3,297,767 | $ | - | $ | 3,309,149 | $ | - | $ | 3,309,149 | ||||||||||||||||||
Borrowings | 329,395 | - | 309,019 | - | 309,019 | |||||||||||||||||||||||
Accrued interest payable | 1,414 | - | 1,414 | - | 1,414 | |||||||||||||||||||||||
Cash flow hedge – trust preferred | 4,489 | - | 4,489 | - | 4,489 | |||||||||||||||||||||||
Interest rate swap - loans | 18 | - | 18 | - | 18 | |||||||||||||||||||||||
EMPLOYEE_BENEFITS_Tables
EMPLOYEE BENEFITS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
EMPLOYEE BENEFITS [Abstract] | ' | |||||||||||||
Payment Made For Employee Benefit Plans | ' | |||||||||||||
The following were payments made to the Company’s employees, in accordance with the plans described above, in 2013, 2012, and 2011 (dollars in thousands): | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Bank | UMG | Bank | UMG | Bank | UMG | |||||||||
401(k) Plan | $ 2,002 | $ 569 | $ 1,427 | $ 588 | $ 1,374 | $ 355 | ||||||||
ESOP | 1,774 | - | 1,896 | - | 1,700 | - | ||||||||
Cash | 482 | - | 314 | - | 315 | - | ||||||||
Total | $ 4,258 | $ 569 | $ 3,637 | $ 588 | $ 3,389 | $ 355 | ||||||||
Summary of Shares Available in Each Plan | ' | |||||||||||||
The following table summarizes the shares available in the 2011 Plan as of December 31, 2013: | ||||||||||||||
2011 Plan | ||||||||||||||
Beginning Authorization | 1,000,000 | |||||||||||||
Granted | -387,594 | |||||||||||||
Expired, forfeited, or cancelled | 26,857 | |||||||||||||
Remaining available for grant | 639,263 | |||||||||||||
Summary of Stock Option Activity | ' | |||||||||||||
The following table summarizes the stock option activity for the last three years: | ||||||||||||||
Stock Options | Weighted Average Exercise Price | Options Exercisable | Weighted Average Exercise Price | |||||||||||
(shares) | (shares) | |||||||||||||
Balance, December 31, 2010 | 324,776 | $ 19.38 | 183,544 | $ 20.90 | ||||||||||
Granted | 134,046 | 12.11 | ||||||||||||
Exercised | -29,625 | 10.21 | ||||||||||||
Forfeited | -6,447 | 17.22 | ||||||||||||
Balance, December 31, 2011 | 422,750 | 17.70 | 184,985 | 22.28 | ||||||||||
Granted | 131,657 | 14.40 | ||||||||||||
Exercised | -2,376 | 12.11 | ||||||||||||
Forfeited | -51,453 | 17.11 | ||||||||||||
Balance, December 31, 2012 | 500,578 | 16.92 | 218,825 | 20.59 | ||||||||||
Granted | - | - | ||||||||||||
Exercised | -50,119 | 18.45 | ||||||||||||
Forfeited | -47,513 | 19.04 | ||||||||||||
Balance, December 31, 2013 | 402,946 | 16.48 | 200,904 | 18.96 | ||||||||||
Summary of the options outstanding | ' | |||||||||||||
A summary of the options outstanding at December 31, 2013 is as follows: | ||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Number Exercisable | Weighted Average Exercise Price | |||||||||
(shares) | (shares) | |||||||||||||
$ | 113,045 | 6.87 | yrs | $ | 45,044 | $ | ||||||||
12.11 | 12.11 | 12.11 | ||||||||||||
$ | - | $ | 4,558 | 5.75 | $ | 3,188 | $ | |||||||
12.59 | 14.08 | 13.18 | 13.10 | |||||||||||
$ | 114,887 | 8.15 | $ | 21,569 | $ | |||||||||
14.40 | 14.40 | 14.40 | ||||||||||||
$ | 1,000 | 6.42 | $ | 600 | $ | |||||||||
14.82 | 14.82 | 14.82 | ||||||||||||
$ | 91,088 | 6.32 | $ | 52,135 | $ | |||||||||
16.45 | 16.45 | 16.45 | ||||||||||||
$ | - | $ | 22,335 | 0.72 | $ | 22,335 | $ | |||||||
20.41 | 22.65 | 22.29 | 22.29 | |||||||||||
$ | 17,813 | 1.07 | $ | 17,813 | $ | |||||||||
23.50 | 23.50 | 23.50 | ||||||||||||
$ | 3,750 | 1.58 | $ | 3,750 | $ | |||||||||
27.51 | 27.51 | 27.51 | ||||||||||||
$ | 15,995 | 3.15 | $ | 15,995 | $ | |||||||||
27.62 | 27.62 | 27.62 | ||||||||||||
$ | 18,475 | 2.15 | $ | 18,475 | $ | |||||||||
31.57 | 31.57 | 31.57 | ||||||||||||
$ | - | $ | 402,946 | 6.09 | yrs | $ | 200,904 | $ | ||||||
12.11 | 31.57 | 16.48 | 18.96 | |||||||||||
Estimated Stock Option on the Date of Grant Fair Value | ' | |||||||||||||
The Company issues shares upon option exercise from the Company’s authorized but unissued shares, and the Company expects to issue an insignificant amount of shares for option exercises during 2014. | ||||||||||||||
The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table for the years ended December 31, 2013, 2012, and 2011. No options have been granted since February of 2012: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Dividend yield(1) | - | 2.47% | 2.36% | |||||||||||
Expected life in years(2) | - | 7.0 | 7.0 | |||||||||||
Expected volatility(3) | - | 41.53% | 41.02% | |||||||||||
Risk-free interest rate(4) | - | 1.24% | 2.71% | |||||||||||
Weighted average fair value per option granted | $ - | $ 4.76 | $ 4.31 | |||||||||||
(1) Calculated as the ratio of historical dividends paid per share of common stock to the stock price on the date of grant. | ||||||||||||||
(2) Based on the average of the contractual life and vesting schedule for the respective option. | ||||||||||||||
(3) Based on the monthly historical volatility of the Company’s stock price over the expected life of the options. | ||||||||||||||
(4) Based upon the U.S. Treasury bill yield curve, for periods within the contractual life of the option, in effect at the time of grant. | ||||||||||||||
Summary of Information Concerning Stock Options | ' | |||||||||||||
The following table summarizes information concerning stock options issued to the Company’s employees that are vested or are expected to vest and stock options exercisable as of December 31, 2013: | ||||||||||||||
Stock Options Vested or Expected to Vest | Exercisable | |||||||||||||
Stock options (number of shares) | 393,582 | 200,904 | ||||||||||||
Weighted average remaining contractual life in years | 6.05 | 4.67 | ||||||||||||
Weighted average exercise price on shares above water | $ | 15.12 | $ | 16.48 | ||||||||||
Aggregate intrinsic value | $ | 3,433,532 | $ | 1,355,386 | ||||||||||
Summary of Nonvested Stock Activity | ' | |||||||||||||
The following table summarizes the nonvested stock activity for the year ended December 31, 2013: | ||||||||||||||
Number of Shares of Restricted Stock | Weighted Average Grant-Date Fair Value | |||||||||||||
Balance, December 31, 2012 | 187,700 | $ | 13.15 | |||||||||||
Granted | 126,172 | 18.80 | ||||||||||||
Vested | -19,763 | 13.26 | ||||||||||||
Forfeited | -33,346 | 15.22 | ||||||||||||
Balance, December 31, 2013 | 260,763 | 16.47 | ||||||||||||
Estimated Unamortized Compensation Expense Recognized in Future | ' | |||||||||||||
The estimated unamortized compensation expense, net of estimated forfeitures, related to nonvested stock and stock options issued and outstanding as of December 31, 2013 that will be recognized in future periods is as follows (dollars in thousands): | ||||||||||||||
Stock Options | Restricted Stock | Total | ||||||||||||
2014 | $ | 315 | $ | 1,194 | $ | 1,509 | ||||||||
2015 | 241 | 960 | 1,201 | |||||||||||
2016 | 143 | 342 | 485 | |||||||||||
2017 | 27 | 44 | 71 | |||||||||||
Total | $ | 726 | $ | 2,540 | $ | 3,266 | ||||||||
OTHER_OPERATING_EXPENSES_Table
OTHER OPERATING EXPENSES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
OTHER OPERATING EXPENSES [Abstract] | ' | ||||||||
Summary of Other Operating Expenses | ' | ||||||||
The following table presents the Consolidated Statement of Income line “Other Operating Expenses” broken into greater detail for the years ended December 31, 2013, 2012 and 2011, respectively (dollars in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Printing, postage, and supplies | $ | 2,970 | $ | 2,649 | $ | 2,179 | |||
Communications expense | 2,681 | 3,070 | 2,931 | ||||||
Technology and data processing | 7,754 | 7,510 | 7,795 | ||||||
Professional services | 3,419 | 3,035 | 2,989 | ||||||
Marketing and advertising expense | 4,312 | 5,473 | 5,869 | ||||||
FDIC assessment premiums and other insurance | 3,110 | 2,373 | 4,936 | ||||||
Other taxes | 3,181 | 3,017 | 2,838 | ||||||
Loan related expenses | 2,447 | 2,254 | 2,058 | ||||||
OREO and credit-related expenses(1) | 4,880 | 4,639 | 5,668 | ||||||
Amortization of intangible assets | 3,831 | 5,336 | 6,522 | ||||||
Acquisition and conversion costs | 2,132 | - | 426 | ||||||
Other expenses | 7,776 | 6,074 | 5,715 | ||||||
Total other operating expenses | $ | 48,493 | $ | 45,430 | $ | 49,926 | |||
(1) OREO related costs include foreclosure related expenses, gains/losses on the sale of OREO, valuation reserves, and asset resolution related legal expenses. | |||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INCOME TAXES [Abstract] | ' | ||||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||
Net deferred tax assets and liabilities consist of the following components as of December 31, 2013 and 2012 (dollars in thousands): | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Allowance for loan losses | $ | 10,657 | $ | 12,221 | |||||
Benefit plans | 1,385 | 1,429 | |||||||
Nonaccrual loans | 983 | 1,148 | |||||||
Acquisition accounting | 2,252 | 2,980 | |||||||
Stock grants | 1,379 | 1,232 | |||||||
Other real estate owned | 3,282 | 2,709 | |||||||
Securities available for sale | 901 | - | |||||||
Other | 1,777 | 1,018 | |||||||
Total deferred tax assets | $ | 22,616 | $ | 22,737 | |||||
Deferred tax liabilities: | |||||||||
Acquisition accounting | $ | 5,232 | $ | 6,057 | |||||
Securities available for sale | - | 6,101 | |||||||
Other | 747 | 899 | |||||||
Total deferred tax liabilities | 5,979 | 13,057 | |||||||
Net deferred tax asset | $ | 16,637 | $ | 9,680 | |||||
Provision for Income Taxes Charged to Operations | ' | ||||||||
The provision for income taxes charged to operations for the years ended December 31, 2013, 2012, and 2011 consists of the following (dollars in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Current tax expense | $ | 12,251 | $ | 14,528 | $ | 11,879 | |||
Deferred tax expense (benefit) | 262 | -195 | -615 | ||||||
Income tax expense | $ | 12,513 | $ | 14,333 | $ | 11,264 | |||
Schedule of Income Tax Expense, Difference in Income Tax Rate to Pretax Income | ' | ||||||||
The income tax expense differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income for the years ended December 31, 2013, 2012, and 2011, due to the following (dollars in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Computed "expected" tax expense | $ | 16,453 | $ | 17,411 | $ | 14,600 | |||
(Decrease) in taxes resulting from: | |||||||||
Tax-exempt interest income, net | -3,308 | -2,614 | -2,681 | ||||||
Other, net | -632 | -464 | -655 | ||||||
Income tax expense | $ | 12,513 | $ | 14,333 | $ | 11,264 | |||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
EARNINGS PER SHARE [Abstract] | ' | ||||||
Reconcilement of the Denominators of the Basic and Diluted EPS Computations | ' | ||||||
The following is a reconciliation of the denominators of the basic and diluted EPS computations for the years ended December 31, 2013, 2012, and 2011 (in thousands except per share data): | |||||||
Net Income Available to Common Stockholders (Numerator) | Weighted Average Shares (Denominator) | Per Share Amount | |||||
For the Year Ended December 31, 2013 | |||||||
Basic EPS | $ 34,496 | 24,975 | $ 1.38 | ||||
Effect of dilutive stock awards | - | 56 | - | ||||
Diluted EPS | $ 34,496 | 25,031 | $ 1.38 | ||||
For the Year Ended December 31, 2012 | |||||||
Basic EPS | $ 35,411 | 25,872 | $ 1.37 | ||||
Effect of dilutive stock awards | - | 29 | - | ||||
Diluted EPS | $ 35,411 | 25,901 | $ 1.37 | ||||
For the Year Ended December 31, 2011 | |||||||
Basic EPS | $ 27,769 | 25,981 | $ 1.07 | ||||
Effect of dilutive stock awards | - | 29 | - | ||||
Diluted EPS | $ 27,769 | 26,010 | $ 1.07 | ||||
SEGMENT_REPORTING_DISCLOSURES_
SEGMENT REPORTING DISCLOSURES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
SEGMENT REPORTING DISCLOSURES [Abstract] | ' | |||||||||||
Information About Reportable Segments and Reconciliation | ' | |||||||||||
Information about reportable segments and reconciliation of such information to the consolidated financial statements for years ended December 31, 2013, 2012, and 2011 is as follows (dollars in thousands): | ||||||||||||
Community Bank | Mortgage | Eliminations | Consolidated | |||||||||
For the Year Ended December 31, 2013 | ||||||||||||
Net interest income | $ | 149,975 | $ | 1,651 | $ | - | $ | 151,626 | ||||
Provision for loan losses | 6,056 | - | - | 6,056 | ||||||||
Net interest income after provision for loan losses | 143,919 | 1,651 | - | 145,570 | ||||||||
Noninterest income | 27,492 | 11,906 | -670 | 38,728 | ||||||||
Noninterest expenses | 120,256 | 17,703 | -670 | 137,289 | ||||||||
Income before income taxes | 51,155 | -4,146 | - | 47,009 | ||||||||
Income tax expense | 14,000 | -1,487 | - | 12,513 | ||||||||
Net income | $ | 37,155 | $ | -2,659 | $ | - | $ | 34,496 | ||||
Total assets | $ | 4,170,682 | $ | 63,715 | $ | -57,826 | $ | 4,176,571 | ||||
For the Year Ended December 31, 2012 | ||||||||||||
Net interest income | $ | 153,024 | $ | 1,331 | $ | - | $ | 154,355 | ||||
Provision for loan losses | 12,200 | - | - | 12,200 | ||||||||
Net interest income after provision for loan losses | 140,824 | 1,331 | - | 142,155 | ||||||||
Noninterest income | 24,876 | 16,660 | -468 | 41,068 | ||||||||
Noninterest expenses | 119,976 | 13,971 | -468 | 133,479 | ||||||||
Income before income taxes | 45,724 | 4,020 | - | 49,744 | ||||||||
Income tax expense | 12,858 | 1,475 | - | 14,333 | ||||||||
Net income | $ | 32,866 | $ | 2,545 | $ | - | $ | 35,411 | ||||
Total assets | $ | 4,081,544 | $ | 187,836 | $ | -173,515 | $ | 4,095,865 | ||||
For the Year Ended December 31, 2011 | ||||||||||||
Net interest income | $ | 155,045 | $ | 1,315 | $ | - | $ | 156,360 | ||||
Provision for loan losses | 16,800 | - | - | 16,800 | ||||||||
Net interest income after provision for loan losses | 138,245 | 1,315 | - | 139,560 | ||||||||
Noninterest income | 22,382 | 11,050 | -468 | 32,964 | ||||||||
Noninterest expenses | 121,490 | 9,793 | -468 | 130,815 | ||||||||
Income before income taxes | 39,137 | 2,572 | - | 41,709 | ||||||||
Income tax expense | 10,304 | 960 | - | 11,264 | ||||||||
Net income | $ | 28,833 | $ | 1,612 | $ | - | $ | 30,445 | ||||
Total assets | $ | 3,904,013 | $ | 84,445 | $ | -81,371 | $ | 3,907,087 | ||||
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
RELATED PARTY TRANSACTIONS [Abstract] | ' | ||||
Schedule of Loans and Leases Receivable, Related Parties | ' | ||||
The following schedule summarizes the changes in loan amounts outstanding to these persons during the periods indicated (dollars in thousands): | |||||
2013 | 2012 | ||||
Loans outstanding at January 1 | $ 51,543 | $ 29,416 | |||
New loans and advances | 8,496 | 29,132 | |||
Loan repayments | -7,440 | -7,005 | |||
Reclassification(1) | -17,716 | - | |||
Balance at December 31 | $ 34,883 | $ 51,543 | |||
-1 | Primarily loans of $17.5 million to two former directors who retired from the Board in April 2013 and loans to other persons no longer considered related party or loans that were not considered related party in 2012 that subsequently became related party loans in 2013. | ||||
PARENT_COMPANY_FINANCIAL_INFOR1
PARENT COMPANY FINANCIAL INFORMATION (Tables) (Parent Company [Member]) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Parent Company [Member] | ' | |||||
Financial Information for the Parent Company - Balance Sheets | ' | |||||
Financial information for the Parent Company is as follows: | ||||||
PARENT COMPANY | ||||||
BALANCE SHEETS | ||||||
AS OF DECEMBER 31, 2013 and 2012 | ||||||
(Dollars in thousands) | ||||||
2013 | 2012 | |||||
ASSETS | ||||||
Cash | $ 10,092 | $ 6,505 | ||||
Bank premises and equipment, net | 12,673 | 13,141 | ||||
Other assets | 6,662 | 4,593 | ||||
Investment in subsidiaries | 486,168 | 490,199 | ||||
Total assets | $ 515,595 | $ 514,438 | ||||
LIABILITIES & STOCKHOLDERS' EQUITY | ||||||
Long-term borrowings | $ 8,750 | $ 9,375 | ||||
Trust preferred capital notes | 60,310 | 60,310 | ||||
Other liabilities | 8,296 | 8,890 | ||||
Total liabilities | 77,356 | 78,575 | ||||
Common stock | 33,020 | 33,510 | ||||
Surplus | 170,770 | 176,635 | ||||
Retained earnings | 236,639 | 215,634 | ||||
Accumulated other comprehensive income (loss) | -2,190 | 10,084 | ||||
Total stockholders' equity | 438,239 | 435,863 | ||||
Total liabilities and stockholders' equity | $ 515,595 | $ 514,438 | ||||
Financial Information for the Parent Company - Statements of Income | ' | |||||
PARENT COMPANY | ||||||
STATEMENTS OF INCOME | ||||||
YEARS ENDED DECEMBER 31, 2013, 2012 and 2011 | ||||||
(Dollars in thousands) | ||||||
2013 | 2012 | 2011 | ||||
Income: | ||||||
Interest and dividend income | $ 6 | $ 8 | $ 624 | |||
Dividends received from subsidiaries | 31,323 | 23,141 | 8,612 | |||
Equity in undistributed net income from subsidiaries | 7,685 | 15,158 | 23,941 | |||
Gains on sale of securities, net | - | - | 430 | |||
Gains (losses) on sale of fixed assets, net | - | - | -1 | |||
Other operating income | 1,155 | 1,155 | 1,616 | |||
Total income | 40,169 | 39,462 | 35,222 | |||
Expenses: | ||||||
Interest expense | $ 3,060 | 3,152 | 2,627 | |||
Occupancy expenses | 583 | 586 | 590 | |||
Furniture and equipment expenses | - | - | 1,023 | |||
Other operating expenses | 2,030 | 313 | 537 | |||
Total expenses | 5,673 | 4,051 | 4,777 | |||
Net income | 34,496 | 35,411 | 30,445 | |||
Dividends paid on preferred stock | $ - | - | 1,499 | |||
Amortization of discount on preferred stock | $ - | - | 1,177 | |||
Net income available to common stockholders | $ 34,496 | $ 35,411 | $ 27,769 | |||
Financial Information for the Parent Company - Statements of Cash Flows | ' | |||||
PARENT COMPANY | ||||||
CONDENSED STATEMENTS OF CASH FLOWS | ||||||
YEARS ENDED DECEMBER 31, 2013, 2012 and 2011 | ||||||
(Dollars in thousands) | ||||||
2013 | 2012 | 2011 | ||||
Operating activities: | ||||||
Net income | $ 34,496 | $ 35,411 | $ 30,445 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Equity in undistributed net income of subsidiaries | -7,685 | -15,158 | -23,941 | |||
Depreciation of bank premises and equipment | 468 | 473 | 1,089 | |||
Gains on sale of investment securities | - | - | -430 | |||
Tax benefit from exercise of equity-based awards | - | - | 15 | |||
Issuance of common stock grants for services | 477 | 565 | 564 | |||
Net (increase) decrease in other assets | -2,069 | -756 | 811 | |||
Net (decrease) increase in other liabilities | 1,737 | 2,781 | 1,744 | |||
Net cash and cash equivalents provided by operating activities | 27,424 | 23,316 | 10,297 | |||
Investing activities: | ||||||
Sale of securities available for sale | - | - | 13,588 | |||
Net decrease (increase) in bank premises and equipment | - | -23 | 1,455 | |||
Payments for equity method investment | -2,000 | - | - | |||
Payments for investments in and advances to subsidiaries | - | - | -2,391 | |||
Net cash and cash equivalents provided by (used in) investing activities | -2,000 | -23 | 12,652 | |||
Financing activities: | ||||||
Payments on long-term borrowings | -625 | -625 | -625 | |||
Cash dividends paid | -12,535 | -8,969 | -9,245 | |||
Repurchase of preferred stock | - | - | -35,595 | |||
Net Issuance (repurchase) of common stock | -8,677 | -14,469 | 574 | |||
Net cash and cash equivalents used in financing activities | -21,837 | -24,063 | -44,891 | |||
Net increase (decrease) in cash and cash equivalents | 3,587 | -770 | -21,942 | |||
Cash and cash equivalents at beginning of the period | 6,505 | 7,275 | 29,217 | |||
Cash and cash equivalents at end of the period | $ 10,092 | $ 6,505 | $ 7,275 | |||
SUBSEQUENT_EVENTS_Tables
SUBSEQUENT EVENTS (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
SUBSEQUENT EVENTS [Abstract] | ' | |||||
Schedule of Business Acquisition and the Amounts of Acquired Identifiable Assets and Liabilities | ' | |||||
Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition. The following table provides a preliminary assessment of the assets purchased, liabilities assumed, and the consideration transferred (dollars in thousands, except share and per share data): | ||||||
Preliminary Statement of Net Assets Acquired (at fair value) and consideration transferred: | ||||||
Fair value of assets acquired: | ||||||
Cash and cash equivalents | $ | 49,989 | ||||
Securities available for sale | 460,892 | |||||
Loans held for sale | 10,922 | |||||
Loans | 2,239,616 | |||||
Bank premise and equipment | 80,480 | |||||
OREO | 4,319 | |||||
Core deposit intangible | 29,570 | |||||
Other assets | 95,397 | |||||
Total assets | $ | 2,971,185 | ||||
Fair value of liabilities assumed: | ||||||
Deposits | $ | 2,479,874 | ||||
Short-term borrowings | 4,227 | |||||
Long-term borrowings | 118,154 | |||||
Subordinated debt | 25,543 | |||||
Other liabilities | 22,576 | |||||
Total liabilities | $ | 2,650,374 | ||||
Net identifiable assets acquired | $ | 320,811 | ||||
Preliminary Goodwill (1) | 228,711 | |||||
Net assets acquired | $ | 549,522 | ||||
Consideration : | ||||||
Company's common shares issued | 22,147,874 | |||||
Purchase price per share of the Company's common stock (2) | $ | 24.81 | ||||
Value of Company common stock issued | $ | 549,488 | ||||
Value of stock options outstanding | 34 | |||||
Fair value of total consideration transferred | $ | 549,522 | ||||
(1) - No goodwill is expected to be deductible for federal income tax purposes. The goodwill will be primarily allocated to the community bank segment. | ||||||
(2) - The value of the shares of common stock exchanged with StellarOne shareholders was based upon the closing price of the Company's common stock at December 31, 2013, the last trading day prior to the date of acquisition. | ||||||
Outstanding Principal Balance and Carrying Amount of Acquired Impaired Loans | ' | |||||
The following table presents the acquired impaired loans receivable at the acquisition date (dollars in thousands): | ||||||
Contractually required principal and interest payments | $ | 204,503 | ||||
Nonaccretable difference | -33,853 | |||||
Cash flows expected to be collected | 170,650 | |||||
Accretable difference | -33,046 | |||||
Fair value of loans acquired with a deterioration of credit quality | $ | 137,604 | ||||
Business Acquisition, Pro Forma Information | ' | |||||
The Company expects to achieve further operating cost savings and other business synergies, including branch closures, as a result of the acquisition which are not reflected in the pro forma amounts below (dollars in thousands): | ||||||
Pro forma for the year ended | ||||||
December 31, | ||||||
2013 | 2012 | |||||
(unaudited) | (unaudited) | |||||
Total revenues (net interest income plus noninterest income) | $ | 320,162 | $ | 333,684 | ||
Net income | $ | 56,223 | $ | 57,809 | ||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
loan | ||||
Federal Home Loan Bank requires Bank to maintain percentage of stock equal to outstanding borrowings | ' | 4.50% | ' | ' |
Percentage of Federal Reserve Bank of Richmond reserve | ' | 6.00% | ' | ' |
Number of loan portfolio level segments | ' | 2 | ' | ' |
Number of loan class levels for reporting purposes | ' | 14 | ' | ' |
Number of loan class levels for reporting purposes within commercial loan portfolio segment | ' | 7 | ' | ' |
Held to maturity debt securities | ' | $0 | ' | ' |
Held for trading securities | ' | 0 | ' | ' |
Future payments, contractual term | ' | '6 months | ' | ' |
Accruals for uncertain tax positions | ' | 0 | 0 | ' |
Impairment charges for goodwill or intangible assets | 0 | 0 | ' | ' |
Life insurance purchase price | ' | $86,800,000 | $54,800,000 | ' |
Options granted | ' | 0 | 131,657 | 134,046 |
Minimum [Member] | ' | ' | ' | ' |
Commercial loans on nonaccrual status, period | ' | '90 days | ' | ' |
Period of updation of independent appraisal | ' | '12 months | ' | ' |
Period between issuance loan commitment and sale of loan | ' | '30 days | ' | ' |
Estimated useful life of bank primises | ' | '3 years | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Maximum period for net realizable value | ' | '180 days | ' | ' |
Commercial loans on nonaccrual status, period | ' | '180 days | ' | ' |
Period of updation of independent appraisal | ' | '24 months | ' | ' |
Period between issuance loan commitment and sale of loan | ' | '120 days | ' | ' |
Estimated useful life of bank primises | ' | '40 years | ' | ' |
Maximum tax benefit realized | ' | 50.00% | ' | ' |
SECURITIES_Narrative_Details
SECURITIES (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | item | |||
SECURITIES [Abstract] | ' | ' | ' | ' |
Federal Home Loan Bank requires Bank to maintain percentage of stock equal to outstanding borrowings | ' | 4.50% | ' | ' |
Percentage of Federal Reserve Bank of Richmond reserve | ' | 6.00% | ' | ' |
Restricted equity securities consist of Federal Reserve Bank stock | ' | $6,700,000 | $6,800,000 | ' |
Federal Home Loan Bank Stock | ' | 19,300,000 | 13,900,000 | ' |
More than 12 Months, Unrealized Losses | ' | 1,437,000 | 356,000 | ' |
Individual securities that had been in a continuous loss position for more than 12 months, amount | ' | 34,860,000 | 2,204,000 | ' |
Individual securities that had been in a continuous loss position | ' | 23 | 2 | ' |
Securities pledged to secure public deposits, repurchase agreements and other purposes-Amortized cost | ' | 186,600,000 | 183,700,000 | ' |
Credit-related OTTI | $400,000 | $0 | ' | $400,000 |
SECURITIES_Amortized_Cost_Gros
SECURITIES (Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Investment Securities) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities | ' | ' |
Amortized Cost | $675,474 | $563,518 |
Gross Unrealized Gains | 11,701 | 23,039 |
Gross Unrealized (Losses) | -9,827 | -1,175 |
Total securities available for sale, Estimated Fair Value | 677,348 | 585,382 |
US Government Agencies Debt Securities [Member] | ' | ' |
Amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities | ' | ' |
Amortized Cost | 1,654 | 2,581 |
Gross Unrealized Gains | 499 | 268 |
Gross Unrealized (Losses) | ' | ' |
Total securities available for sale, Estimated Fair Value | 2,153 | 2,849 |
Obligations of States and Political Subdivisions [Member] | ' | ' |
Amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities | ' | ' |
Amortized Cost | 255,335 | 214,980 |
Gross Unrealized Gains | 6,107 | 15,123 |
Gross Unrealized (Losses) | -6,612 | -325 |
Total securities available for sale, Estimated Fair Value | 254,830 | 229,778 |
Corporate and Other Bonds [Member] | ' | ' |
Amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities | ' | ' |
Amortized Cost | 9,479 | 7,353 |
Gross Unrealized Gains | 115 | 173 |
Gross Unrealized (Losses) | -160 | -314 |
Total securities available for sale, Estimated Fair Value | 9,434 | 7,212 |
Mortgage Backed Securities [Member] | ' | ' |
Amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities | ' | ' |
Amortized Cost | 405,389 | 335,327 |
Gross Unrealized Gains | 4,954 | 7,383 |
Gross Unrealized (Losses) | -2,981 | -536 |
Total securities available for sale, Estimated Fair Value | 407,362 | 342,174 |
Other Securities [Member] | ' | ' |
Amortized cost, gross unrealized gains and losses, and estimated fair values of investment securities | ' | ' |
Amortized Cost | 3,617 | 3,277 |
Gross Unrealized Gains | 26 | 92 |
Gross Unrealized (Losses) | -74 | ' |
Total securities available for sale, Estimated Fair Value | $3,569 | $3,369 |
SECURITIES_Schedule_of_Gross_U
SECURITIES (Schedule of Gross Unrealized Losses and Fair Value of Investments) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of gross unrealized losses and fair value of investments | ' | ' |
Less than 12 months, Fair value | $255,469 | $108,580 |
Less than 12 months, Unrealized Losses | -8,390 | -819 |
More than 12 Months, Fair value | 34,860 | 2,204 |
More than 12 Months, Unrealized Losses | -1,437 | -356 |
Fair value, Total | 290,329 | 110,784 |
Unrealized Losses, Total | -9,827 | -1,175 |
Obligations of States and Political Subdivisions [Member] | ' | ' |
Schedule of gross unrealized losses and fair value of investments | ' | ' |
Less than 12 months, Fair value | 80,368 | 22,397 |
Less than 12 months, Unrealized Losses | -5,504 | -283 |
More than 12 Months, Fair value | 8,886 | 649 |
More than 12 Months, Unrealized Losses | -1,108 | -42 |
Fair value, Total | 89,254 | 23,046 |
Unrealized Losses, Total | -6,612 | -325 |
Mortgage Backed Securities [Member] | ' | ' |
Schedule of gross unrealized losses and fair value of investments | ' | ' |
Less than 12 months, Fair value | 168,297 | 86,183 |
Less than 12 months, Unrealized Losses | -2,806 | -536 |
More than 12 Months, Fair value | 24,254 | ' |
More than 12 Months, Unrealized Losses | -175 | ' |
Fair value, Total | 192,551 | 86,183 |
Unrealized Losses, Total | -2,981 | -536 |
Corporate Bonds and Other Securities [Member] | ' | ' |
Schedule of gross unrealized losses and fair value of investments | ' | ' |
Less than 12 months, Fair value | 6,804 | ' |
Less than 12 months, Unrealized Losses | -80 | ' |
More than 12 Months, Fair value | 1,720 | 1,555 |
More than 12 Months, Unrealized Losses | -154 | -314 |
Fair value, Total | 8,524 | 1,555 |
Unrealized Losses, Total | ($234) | ($314) |
SECURITIES_Schedule_of_Amortiz
SECURITIES (Schedule of Amortized Cost and Estimated Fair Value of Securities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of amortized cost and estimated fair value of securities | ' | ' |
Due in one year or less, Amortized Cost | $6,791 | $5,623 |
Due in one year or less, Estimated Fair Value | 6,796 | 5,741 |
Due after one year through five years, Amortized Cost | 21,666 | 16,413 |
Due after one year through five years, Estimated Fair Value | 22,497 | 17,016 |
Due after five years through ten years, Amortized Cost | 116,735 | 69,164 |
Due after five years through ten years, Estimated Fair Value | 119,269 | 73,501 |
Due after ten years, Amortized Cost | 530,282 | 472,318 |
Due after ten years, Estimated Fair Value | 528,786 | 489,124 |
Total securities available for sale, Amortized Cost | 675,474 | 563,518 |
Total securities available for sale, Estimated Fair Value | $677,348 | $585,382 |
SECURITIES_Schedule_of_OtherTh
SECURITIES (Schedule of Other-Than-Temporary Impairment) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Schedule of other-than-temporary impairment | ' |
Cumulative credit losses on investment securities, through December 31, 2012 | $400 |
Cumulative credit losses on investment securities | ' |
Additions for credit losses not previously recognized | ' |
Cumulative credit losses on investment securities, through December 31, 2013 | $400 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans | $3,039,368,000 | $2,966,847,000 | $2,818,583,000 |
Net interest income | 151,626,000 | 154,355,000 | 156,360,000 |
Loans and interest accrued 90 days past due | 6,746,000 | 8,843,000 | ' |
Average investment in impaired loans | 128,479,000 | 166,817,000 | 264,500,000 |
Interest income recorded on impaired loans | 4,321,000 | 6,570,000 | 10,600,000 |
Period for restructured loan to be considered default | '90 days | ' | ' |
Recorded Investment | 112,621,000 | 155,375,000 | ' |
Loans considered to be trouble debt restructurings | 41,824,000 | 63,459,000 | ' |
Nonaccrual loans excluded from impaired loan | 0 | 0 | ' |
Nonaccrual Loans [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans | 15,000,000 | 26,200,000 | 44,800,000 |
Net interest income | $778,000 | $1,300,000 | $1,300,000 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Stated at Face Amount, Net of Unearned Income) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Loans stated at face amount, net of unearned income | ' | ' | ' |
Loans, net of unearned income | $3,039,368 | $2,966,847 | $2,818,583 |
Commercial Construction [Member] | ' | ' | ' |
Loans stated at face amount, net of unearned income | ' | ' | ' |
Loans, net of unearned income | 213,675 | 202,344 | ' |
Commercial Real Estate - Owner Occupied [Member] | ' | ' | ' |
Loans stated at face amount, net of unearned income | ' | ' | ' |
Loans, net of unearned income | 500,764 | 513,671 | ' |
Commercial Real Estate - Non-Owner Occupied [Member] | ' | ' | ' |
Loans stated at face amount, net of unearned income | ' | ' | ' |
Loans, net of unearned income | 755,905 | 682,760 | ' |
Raw Land and Lots [Member] | ' | ' | ' |
Loans stated at face amount, net of unearned income | ' | ' | ' |
Loans, net of unearned income | 187,529 | 205,726 | ' |
Single Family Investment Real Estate [Member] | ' | ' | ' |
Loans stated at face amount, net of unearned income | ' | ' | ' |
Loans, net of unearned income | 237,640 | 233,395 | ' |
Commercial and Industrial [Member] | ' | ' | ' |
Loans stated at face amount, net of unearned income | ' | ' | ' |
Loans, net of unearned income | 215,702 | 217,661 | ' |
Other Commercial [Member] | ' | ' | ' |
Loans stated at face amount, net of unearned income | ' | ' | ' |
Loans, net of unearned income | 52,490 | 47,551 | ' |
Mortgage [Member] | ' | ' | ' |
Loans stated at face amount, net of unearned income | ' | ' | ' |
Loans, net of unearned income | 237,414 | 220,567 | ' |
Consumer Construction [Member] | ' | ' | ' |
Loans stated at face amount, net of unearned income | ' | ' | ' |
Loans, net of unearned income | 48,984 | 33,969 | ' |
Indirect Auto [Member] | ' | ' | ' |
Loans stated at face amount, net of unearned income | ' | ' | ' |
Loans, net of unearned income | 174,843 | 157,518 | ' |
Indirect Marine [Member] | ' | ' | ' |
Loans stated at face amount, net of unearned income | ' | ' | ' |
Loans, net of unearned income | 38,633 | 36,586 | ' |
HELOCs [Member] | ' | ' | ' |
Loans stated at face amount, net of unearned income | ' | ' | ' |
Loans, net of unearned income | 281,579 | 288,092 | ' |
Credit Card [Member] | ' | ' | ' |
Loans stated at face amount, net of unearned income | ' | ' | ' |
Loans, net of unearned income | 23,211 | 21,968 | ' |
Other Consumer [Member] | ' | ' | ' |
Loans stated at face amount, net of unearned income | ' | ' | ' |
Loans, net of unearned income | $70,999 | $105,039 | ' |
LOANS_AND_ALLOWANCE_FOR_LOAN_L4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Aging of the Loan Portfolio by Class) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Summary of aging of the loan portfolio, by class | ' | ' | ' |
30-59 Days Past Due | $16,431 | $18,838 | ' |
60-89 Days Past Due | 3,347 | 4,677 | ' |
Greater Than 90 Days and still Accruing | 6,746 | 8,843 | ' |
Purchased Impaired (net of credit mark) | 3,622 | 4,565 | 9,897 |
Nonaccrual | 15,035 | 26,206 | ' |
Current | 2,994,187 | 2,903,718 | ' |
Total Loans | 3,039,368 | 2,966,847 | 2,818,583 |
Commercial Construction [Member] | ' | ' | ' |
Summary of aging of the loan portfolio, by class | ' | ' | ' |
30-59 Days Past Due | ' | ' | ' |
60-89 Days Past Due | ' | ' | ' |
Greater Than 90 Days and still Accruing | ' | ' | ' |
Purchased Impaired (net of credit mark) | ' | ' | ' |
Nonaccrual | 1,596 | 5,781 | ' |
Current | 212,079 | 196,563 | ' |
Total Loans | 213,675 | 202,344 | ' |
Commercial Real Estate - Owner Occupied [Member] | ' | ' | ' |
Summary of aging of the loan portfolio, by class | ' | ' | ' |
30-59 Days Past Due | 514 | 2,105 | ' |
60-89 Days Past Due | ' | 153 | ' |
Greater Than 90 Days and still Accruing | 258 | 1,711 | ' |
Purchased Impaired (net of credit mark) | ' | 247 | ' |
Nonaccrual | 2,037 | 2,206 | ' |
Current | 497,955 | 507,249 | ' |
Total Loans | 500,764 | 513,671 | ' |
Commercial Real Estate - Non-Owner Occupied [Member] | ' | ' | ' |
Summary of aging of the loan portfolio, by class | ' | ' | ' |
30-59 Days Past Due | 185 | 866 | ' |
60-89 Days Past Due | 42 | 63 | ' |
Greater Than 90 Days and still Accruing | 1,996 | 207 | ' |
Purchased Impaired (net of credit mark) | ' | ' | ' |
Nonaccrual | 175 | 812 | ' |
Current | 753,507 | 680,812 | ' |
Total Loans | 755,905 | 682,760 | ' |
Raw Land and Lots [Member] | ' | ' | ' |
Summary of aging of the loan portfolio, by class | ' | ' | ' |
30-59 Days Past Due | 922 | 277 | ' |
60-89 Days Past Due | 545 | ' | ' |
Greater Than 90 Days and still Accruing | ' | 75 | ' |
Purchased Impaired (net of credit mark) | 2,457 | 2,942 | ' |
Nonaccrual | 2,560 | 8,760 | ' |
Current | 181,045 | 193,672 | ' |
Total Loans | 187,529 | 205,726 | ' |
Single Family Investment Real Estate [Member] | ' | ' | ' |
Summary of aging of the loan portfolio, by class | ' | ' | ' |
30-59 Days Past Due | 1,783 | 1,819 | ' |
60-89 Days Past Due | 277 | 261 | ' |
Greater Than 90 Days and still Accruing | 563 | 756 | ' |
Purchased Impaired (net of credit mark) | 275 | 326 | ' |
Nonaccrual | 1,689 | 3,420 | ' |
Current | 233,053 | 226,813 | ' |
Total Loans | 237,640 | 233,395 | ' |
Commercial and Industrial [Member] | ' | ' | ' |
Summary of aging of the loan portfolio, by class | ' | ' | ' |
30-59 Days Past Due | 348 | 506 | ' |
60-89 Days Past Due | 152 | 270 | ' |
Greater Than 90 Days and still Accruing | 220 | 441 | ' |
Purchased Impaired (net of credit mark) | ' | 79 | ' |
Nonaccrual | 3,848 | 2,036 | ' |
Current | 211,134 | 214,329 | ' |
Total Loans | 215,702 | 217,661 | ' |
Other Commercial [Member] | ' | ' | ' |
Summary of aging of the loan portfolio, by class | ' | ' | ' |
30-59 Days Past Due | 87 | 70 | ' |
60-89 Days Past Due | 1 | 182 | ' |
Greater Than 90 Days and still Accruing | 50 | 1 | ' |
Purchased Impaired (net of credit mark) | ' | ' | ' |
Nonaccrual | 126 | 193 | ' |
Current | 52,226 | 47,105 | ' |
Total Loans | 52,490 | 47,551 | ' |
Mortgage [Member] | ' | ' | ' |
Summary of aging of the loan portfolio, by class | ' | ' | ' |
30-59 Days Past Due | 6,779 | 5,610 | ' |
60-89 Days Past Due | 1,399 | 2,244 | ' |
Greater Than 90 Days and still Accruing | 1,141 | 3,017 | ' |
Purchased Impaired (net of credit mark) | ' | ' | ' |
Nonaccrual | 2,446 | 747 | ' |
Current | 225,649 | 208,949 | ' |
Total Loans | 237,414 | 220,567 | ' |
Consumer Construction [Member] | ' | ' | ' |
Summary of aging of the loan portfolio, by class | ' | ' | ' |
30-59 Days Past Due | ' | 157 | ' |
60-89 Days Past Due | ' | ' | ' |
Greater Than 90 Days and still Accruing | 208 | ' | ' |
Purchased Impaired (net of credit mark) | ' | ' | ' |
Nonaccrual | ' | 235 | ' |
Current | 48,776 | 33,577 | ' |
Total Loans | 48,984 | 33,969 | ' |
Indirect Auto [Member] | ' | ' | ' |
Summary of aging of the loan portfolio, by class | ' | ' | ' |
30-59 Days Past Due | 2,237 | 2,504 | ' |
60-89 Days Past Due | 252 | 276 | ' |
Greater Than 90 Days and still Accruing | 349 | 329 | ' |
Purchased Impaired (net of credit mark) | 7 | 21 | ' |
Nonaccrual | ' | ' | ' |
Current | 171,998 | 154,388 | ' |
Total Loans | 174,843 | 157,518 | ' |
Indirect Marine [Member] | ' | ' | ' |
Summary of aging of the loan portfolio, by class | ' | ' | ' |
30-59 Days Past Due | 459 | 67 | ' |
60-89 Days Past Due | ' | ' | ' |
Greater Than 90 Days and still Accruing | ' | 114 | ' |
Purchased Impaired (net of credit mark) | ' | ' | ' |
Nonaccrual | 288 | 158 | ' |
Current | 37,886 | 36,247 | ' |
Total Loans | 38,633 | 36,586 | ' |
HELOCs [Member] | ' | ' | ' |
Summary of aging of the loan portfolio, by class | ' | ' | ' |
30-59 Days Past Due | 2,124 | 3,063 | ' |
60-89 Days Past Due | 422 | 640 | ' |
Greater Than 90 Days and still Accruing | 1,190 | 1,239 | ' |
Purchased Impaired (net of credit mark) | 787 | 845 | ' |
Nonaccrual | 43 | 1,325 | ' |
Current | 277,013 | 280,980 | ' |
Total Loans | 281,579 | 288,092 | ' |
Credit Card [Member] | ' | ' | ' |
Summary of aging of the loan portfolio, by class | ' | ' | ' |
30-59 Days Past Due | 105 | 269 | ' |
60-89 Days Past Due | 133 | 101 | ' |
Greater Than 90 Days and still Accruing | 281 | 397 | ' |
Purchased Impaired (net of credit mark) | ' | ' | ' |
Nonaccrual | ' | ' | ' |
Current | 22,692 | 21,201 | ' |
Total Loans | 23,211 | 21,968 | ' |
Other Consumer [Member] | ' | ' | ' |
Summary of aging of the loan portfolio, by class | ' | ' | ' |
30-59 Days Past Due | 888 | 1,525 | ' |
60-89 Days Past Due | 124 | 487 | ' |
Greater Than 90 Days and still Accruing | 490 | 556 | ' |
Purchased Impaired (net of credit mark) | 96 | 105 | ' |
Nonaccrual | 227 | 533 | ' |
Current | 69,174 | 101,833 | ' |
Total Loans | $70,999 | $105,039 | ' |
LOANS_AND_ALLOWANCE_FOR_LOAN_L5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Purchased Impaired Commercial and Consumer Loan Portfolios by Class) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Schedule of purchased impaired commercial and consumer loan portfolios, by class | ' | ' | ' |
Current | $2,994,187 | $2,903,718 | ' |
Total | 3,622 | 4,565 | 9,897 |
Commercial Real Estate - Owner Occupied [Member] | ' | ' | ' |
Schedule of purchased impaired commercial and consumer loan portfolios, by class | ' | ' | ' |
Current | 497,955 | 507,249 | ' |
Total | ' | 247 | ' |
Raw Land and Lots [Member] | ' | ' | ' |
Schedule of purchased impaired commercial and consumer loan portfolios, by class | ' | ' | ' |
Current | 181,045 | 193,672 | ' |
Total | 2,457 | 2,942 | ' |
Single Family Investment Real Estate [Member] | ' | ' | ' |
Schedule of purchased impaired commercial and consumer loan portfolios, by class | ' | ' | ' |
Current | 233,053 | 226,813 | ' |
Total | 275 | 326 | ' |
Commercial and Industrial [Member] | ' | ' | ' |
Schedule of purchased impaired commercial and consumer loan portfolios, by class | ' | ' | ' |
Current | 211,134 | 214,329 | ' |
Total | ' | 79 | ' |
Indirect Auto [Member] | ' | ' | ' |
Schedule of purchased impaired commercial and consumer loan portfolios, by class | ' | ' | ' |
Current | 171,998 | 154,388 | ' |
Total | 7 | 21 | ' |
HELOCs [Member] | ' | ' | ' |
Schedule of purchased impaired commercial and consumer loan portfolios, by class | ' | ' | ' |
Current | 277,013 | 280,980 | ' |
Total | 787 | 845 | ' |
Other Consumer [Member] | ' | ' | ' |
Schedule of purchased impaired commercial and consumer loan portfolios, by class | ' | ' | ' |
Current | 69,174 | 101,833 | ' |
Total | 96 | 105 | ' |
Purchased Impaired [Member] | ' | ' | ' |
Schedule of purchased impaired commercial and consumer loan portfolios, by class | ' | ' | ' |
30-89 Days Past Due | 40 | 3 | ' |
Greater than 90 Days | 31 | 420 | ' |
Current | 3,551 | 4,142 | ' |
Total | 3,622 | 4,565 | 9,897 |
Purchased Impaired [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' | ' |
Schedule of purchased impaired commercial and consumer loan portfolios, by class | ' | ' | ' |
30-89 Days Past Due | ' | ' | ' |
Greater than 90 Days | ' | 193 | ' |
Current | ' | 54 | ' |
Total | ' | 247 | ' |
Purchased Impaired [Member] | Raw Land and Lots [Member] | ' | ' | ' |
Schedule of purchased impaired commercial and consumer loan portfolios, by class | ' | ' | ' |
30-89 Days Past Due | ' | ' | ' |
Greater than 90 Days | ' | 81 | ' |
Current | 2,457 | 2,861 | ' |
Total | 2,457 | 2,942 | ' |
Purchased Impaired [Member] | Single Family Investment Real Estate [Member] | ' | ' | ' |
Schedule of purchased impaired commercial and consumer loan portfolios, by class | ' | ' | ' |
30-89 Days Past Due | ' | ' | ' |
Greater than 90 Days | ' | 14 | ' |
Current | 275 | 312 | ' |
Total | 275 | 326 | ' |
Purchased Impaired [Member] | Commercial and Industrial [Member] | ' | ' | ' |
Schedule of purchased impaired commercial and consumer loan portfolios, by class | ' | ' | ' |
30-89 Days Past Due | ' | ' | ' |
Greater than 90 Days | ' | 79 | ' |
Current | ' | ' | ' |
Total | ' | 79 | ' |
Purchased Impaired [Member] | Indirect Auto [Member] | ' | ' | ' |
Schedule of purchased impaired commercial and consumer loan portfolios, by class | ' | ' | ' |
30-89 Days Past Due | ' | 3 | ' |
Greater than 90 Days | ' | 2 | ' |
Current | 7 | 16 | ' |
Total | 7 | 21 | ' |
Purchased Impaired [Member] | HELOCs [Member] | ' | ' | ' |
Schedule of purchased impaired commercial and consumer loan portfolios, by class | ' | ' | ' |
30-89 Days Past Due | ' | ' | ' |
Greater than 90 Days | 31 | 51 | ' |
Current | 756 | 794 | ' |
Total | 787 | 845 | ' |
Purchased Impaired [Member] | Other Consumer [Member] | ' | ' | ' |
Schedule of purchased impaired commercial and consumer loan portfolios, by class | ' | ' | ' |
30-89 Days Past Due | 40 | ' | ' |
Greater than 90 Days | ' | ' | ' |
Current | 56 | 105 | ' |
Total | $96 | $105 | ' |
LOANS_AND_ALLOWANCE_FOR_LOAN_L6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Impaired Loans Individually Evaluated for Impairment by Class) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Impaired loans individually evaluated for impairment, by class | ' | ' | ' |
Loans without a specific allowance, Recorded Investment | $95,315 | $107,330 | ' |
Loans without a specific allowance, Unpaid Principal Balance | 100,032 | 109,109 | ' |
Loans without a specific allowance, YTD Average Investment | 108,847 | 115,492 | ' |
Loans without a specific allowance, Interest Income Recognized | 3,653 | 4,822 | ' |
Loans with a specific allowance, Recorded Investment | 17,306 | 48,045 | ' |
Loans with a specific allowance, Unpaid Principal Balance | 18,652 | 48,968 | ' |
Loans with a specific allowance, Related Allowance | 1,963 | 8,624 | ' |
Loans with a specific allowance, YTD Average Investment | 19,632 | 51,325 | ' |
Loans with a specific allowance, Interest Income Recognized | 668 | 1,748 | ' |
Recorded Investment | 112,621 | 155,375 | ' |
Unpaid Principal Balance | 118,684 | 158,077 | ' |
Year to Date Average Investment | 128,479 | 166,817 | 264,500 |
Interest Income Recognized | 4,321 | 6,570 | 10,600 |
Commercial Construction [Member] | ' | ' | ' |
Impaired loans individually evaluated for impairment, by class | ' | ' | ' |
Loans without a specific allowance, Recorded Investment | 10,520 | 28,212 | ' |
Loans without a specific allowance, Unpaid Principal Balance | 10,523 | 28,696 | ' |
Loans without a specific allowance, YTD Average Investment | 9,073 | 28,925 | ' |
Loans without a specific allowance, Interest Income Recognized | 282 | 1,237 | ' |
Loans with a specific allowance, Recorded Investment | 357 | 4,057 | ' |
Loans with a specific allowance, Unpaid Principal Balance | 692 | 4,104 | ' |
Loans with a specific allowance, Related Allowance | 135 | 643 | ' |
Loans with a specific allowance, YTD Average Investment | 1,136 | 4,914 | ' |
Loans with a specific allowance, Interest Income Recognized | 9 | 177 | ' |
Commercial Real Estate - Owner Occupied [Member] | ' | ' | ' |
Impaired loans individually evaluated for impairment, by class | ' | ' | ' |
Loans without a specific allowance, Recorded Investment | 4,281 | 13,573 | ' |
Loans without a specific allowance, Unpaid Principal Balance | 4,648 | 13,665 | ' |
Loans without a specific allowance, YTD Average Investment | 4,845 | 14,579 | ' |
Loans without a specific allowance, Interest Income Recognized | 206 | 787 | ' |
Loans with a specific allowance, Recorded Investment | 3,797 | 4,100 | ' |
Loans with a specific allowance, Unpaid Principal Balance | 3,937 | 4,239 | ' |
Loans with a specific allowance, Related Allowance | 284 | 921 | ' |
Loans with a specific allowance, YTD Average Investment | 4,000 | 4,300 | ' |
Loans with a specific allowance, Interest Income Recognized | 181 | 124 | ' |
Commercial Real Estate - Non-Owner Occupied [Member] | ' | ' | ' |
Impaired loans individually evaluated for impairment, by class | ' | ' | ' |
Loans without a specific allowance, Recorded Investment | 15,012 | 14,319 | ' |
Loans without a specific allowance, Unpaid Principal Balance | 15,100 | 14,398 | ' |
Loans without a specific allowance, YTD Average Investment | 15,288 | 15,482 | ' |
Loans without a specific allowance, Interest Income Recognized | 572 | 790 | ' |
Loans with a specific allowance, Recorded Investment | 549 | 15,084 | ' |
Loans with a specific allowance, Unpaid Principal Balance | 597 | 15,121 | ' |
Loans with a specific allowance, Related Allowance | 76 | 848 | ' |
Loans with a specific allowance, YTD Average Investment | 616 | 15,209 | ' |
Loans with a specific allowance, Interest Income Recognized | 40 | 851 | ' |
Raw Land and Lots [Member] | ' | ' | ' |
Impaired loans individually evaluated for impairment, by class | ' | ' | ' |
Loans without a specific allowance, Recorded Investment | 52,259 | 40,421 | ' |
Loans without a specific allowance, Unpaid Principal Balance | 52,551 | 40,485 | ' |
Loans without a specific allowance, YTD Average Investment | 61,606 | 43,162 | ' |
Loans without a specific allowance, Interest Income Recognized | 2,024 | 1,538 | ' |
Loans with a specific allowance, Recorded Investment | 1,875 | 10,715 | ' |
Loans with a specific allowance, Unpaid Principal Balance | 1,905 | 10,953 | ' |
Loans with a specific allowance, Related Allowance | 83 | 2,472 | ' |
Loans with a specific allowance, YTD Average Investment | 1,985 | 11,741 | ' |
Loans with a specific allowance, Interest Income Recognized | 101 | 190 | ' |
Single Family Investment Real Estate [Member] | ' | ' | ' |
Impaired loans individually evaluated for impairment, by class | ' | ' | ' |
Loans without a specific allowance, Recorded Investment | 5,520 | 5,487 | ' |
Loans without a specific allowance, Unpaid Principal Balance | 6,021 | 6,185 | ' |
Loans without a specific allowance, YTD Average Investment | 6,396 | 7,031 | ' |
Loans without a specific allowance, Interest Income Recognized | 261 | 253 | ' |
Loans with a specific allowance, Recorded Investment | 3,389 | 3,341 | ' |
Loans with a specific allowance, Unpaid Principal Balance | 3,676 | 3,437 | ' |
Loans with a specific allowance, Related Allowance | 335 | 711 | ' |
Loans with a specific allowance, YTD Average Investment | 3,894 | 3,643 | ' |
Loans with a specific allowance, Interest Income Recognized | 114 | 147 | ' |
Commercial and Industrial [Member] | ' | ' | ' |
Impaired loans individually evaluated for impairment, by class | ' | ' | ' |
Loans without a specific allowance, Recorded Investment | 4,035 | 2,201 | ' |
Loans without a specific allowance, Unpaid Principal Balance | 6,835 | 2,232 | ' |
Loans without a specific allowance, YTD Average Investment | 7,083 | 2,757 | ' |
Loans without a specific allowance, Interest Income Recognized | 195 | 154 | ' |
Loans with a specific allowance, Recorded Investment | 2,722 | 4,511 | ' |
Loans with a specific allowance, Unpaid Principal Balance | 3,086 | 4,728 | ' |
Loans with a specific allowance, Related Allowance | 204 | 1,000 | ' |
Loans with a specific allowance, YTD Average Investment | 3,214 | 4,938 | ' |
Loans with a specific allowance, Interest Income Recognized | 84 | 110 | ' |
Other Commercial [Member] | ' | ' | ' |
Impaired loans individually evaluated for impairment, by class | ' | ' | ' |
Loans without a specific allowance, Recorded Investment | 55 | 189 | ' |
Loans without a specific allowance, Unpaid Principal Balance | 134 | 189 | ' |
Loans without a specific allowance, YTD Average Investment | 134 | 191 | ' |
Loans without a specific allowance, Interest Income Recognized | ' | 11 | ' |
Loans with a specific allowance, Recorded Investment | 255 | 714 | ' |
Loans with a specific allowance, Unpaid Principal Balance | 269 | 722 | ' |
Loans with a specific allowance, Related Allowance | 35 | 153 | ' |
Loans with a specific allowance, YTD Average Investment | 254 | 686 | ' |
Loans with a specific allowance, Interest Income Recognized | 6 | 33 | ' |
Mortgage [Member] | ' | ' | ' |
Impaired loans individually evaluated for impairment, by class | ' | ' | ' |
Loans without a specific allowance, Recorded Investment | 1,361 | 857 | ' |
Loans without a specific allowance, Unpaid Principal Balance | 1,361 | 857 | ' |
Loans without a specific allowance, YTD Average Investment | 1,374 | 892 | ' |
Loans without a specific allowance, Interest Income Recognized | 60 | 43 | ' |
Loans with a specific allowance, Recorded Investment | 4,041 | 2,801 | ' |
Loans with a specific allowance, Unpaid Principal Balance | 4,147 | 2,805 | ' |
Loans with a specific allowance, Related Allowance | 660 | 545 | ' |
Loans with a specific allowance, YTD Average Investment | 4,183 | 2,851 | ' |
Loans with a specific allowance, Interest Income Recognized | 123 | 72 | ' |
Consumer Construction [Member] | ' | ' | ' |
Impaired loans individually evaluated for impairment, by class | ' | ' | ' |
Loans with a specific allowance, Recorded Investment | ' | 235 | ' |
Loans with a specific allowance, Unpaid Principal Balance | ' | 262 | ' |
Loans with a specific allowance, Related Allowance | ' | 106 | ' |
Loans with a specific allowance, YTD Average Investment | ' | 230 | ' |
Loans with a specific allowance, Interest Income Recognized | ' | ' | ' |
Indirect Auto [Member] | ' | ' | ' |
Impaired loans individually evaluated for impairment, by class | ' | ' | ' |
Loans without a specific allowance, Recorded Investment | 11 | 35 | ' |
Loans without a specific allowance, Unpaid Principal Balance | 19 | 42 | ' |
Loans without a specific allowance, YTD Average Investment | 26 | 56 | ' |
Loans without a specific allowance, Interest Income Recognized | ' | ' | ' |
Indirect Marine [Member] | ' | ' | ' |
Impaired loans individually evaluated for impairment, by class | ' | ' | ' |
Loans without a specific allowance, Recorded Investment | 495 | 158 | ' |
Loans without a specific allowance, Unpaid Principal Balance | 874 | 283 | ' |
Loans without a specific allowance, YTD Average Investment | 887 | 283 | ' |
Loans without a specific allowance, Interest Income Recognized | 42 | 3 | ' |
HELOCs [Member] | ' | ' | ' |
Impaired loans individually evaluated for impairment, by class | ' | ' | ' |
Loans without a specific allowance, Recorded Investment | 1,604 | 1,592 | ' |
Loans without a specific allowance, Unpaid Principal Balance | 1,755 | 1,748 | ' |
Loans without a specific allowance, YTD Average Investment | 1,921 | 1,802 | ' |
Loans without a specific allowance, Interest Income Recognized | 11 | 6 | ' |
Loans with a specific allowance, Recorded Investment | ' | 1,620 | ' |
Loans with a specific allowance, Unpaid Principal Balance | ' | 1,687 | ' |
Loans with a specific allowance, Related Allowance | ' | 952 | ' |
Loans with a specific allowance, YTD Average Investment | ' | 1,897 | ' |
Loans with a specific allowance, Interest Income Recognized | ' | 27 | ' |
Other Consumer [Member] | ' | ' | ' |
Impaired loans individually evaluated for impairment, by class | ' | ' | ' |
Loans without a specific allowance, Recorded Investment | 162 | 286 | ' |
Loans without a specific allowance, Unpaid Principal Balance | 211 | 329 | ' |
Loans without a specific allowance, YTD Average Investment | 214 | 332 | ' |
Loans without a specific allowance, Interest Income Recognized | ' | ' | ' |
Loans with a specific allowance, Recorded Investment | 321 | 867 | ' |
Loans with a specific allowance, Unpaid Principal Balance | 343 | 910 | ' |
Loans with a specific allowance, Related Allowance | 151 | 273 | ' |
Loans with a specific allowance, YTD Average Investment | 350 | 916 | ' |
Loans with a specific allowance, Interest Income Recognized | $10 | $17 | ' |
LOANS_AND_ALLOWANCE_FOR_LOAN_L7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Modified Loans that Continue to Accrue Interest Under the Terms of Restructuring Agreement) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
loan | loan | |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 79 | 90 |
Recorded Investment | $41,824 | $63,459 |
Outstanding Commitment | ' | 73 |
Performing Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 59 | 67 |
Recorded Investment | 34,520 | 51,468 |
Outstanding Commitment | ' | 73 |
Nonperforming Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 20 | 23 |
Recorded Investment | 7,304 | 11,991 |
Outstanding Commitment | ' | ' |
Commercial Construction [Member] | Performing Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 1 | 5 |
Recorded Investment | 684 | 4,549 |
Outstanding Commitment | ' | 73 |
Commercial Construction [Member] | Nonperforming Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 3 | 4 |
Recorded Investment | 947 | 4,260 |
Outstanding Commitment | ' | ' |
Commercial Real Estate - Owner Occupied [Member] | Performing Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 4 | 11 |
Recorded Investment | 2,278 | 6,009 |
Outstanding Commitment | ' | ' |
Commercial Real Estate - Owner Occupied [Member] | Nonperforming Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 3 | 3 |
Recorded Investment | 283 | 1,079 |
Outstanding Commitment | ' | ' |
Commercial Real Estate - Non-Owner Occupied [Member] | Performing Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 6 | 10 |
Recorded Investment | 3,771 | 13,103 |
Outstanding Commitment | ' | ' |
Commercial Real Estate - Non-Owner Occupied [Member] | Nonperforming Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | ' | 2 |
Recorded Investment | ' | 514 |
Outstanding Commitment | ' | ' |
Raw Land and Lots [Member] | Performing Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 15 | 13 |
Recorded Investment | 20,741 | 22,886 |
Outstanding Commitment | ' | ' |
Raw Land and Lots [Member] | Nonperforming Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 2 | 2 |
Recorded Investment | 3,973 | 4,032 |
Outstanding Commitment | ' | ' |
Single Family Investment Real Estate [Member] | Performing Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 13 | 6 |
Recorded Investment | 3,497 | 928 |
Outstanding Commitment | ' | ' |
Single Family Investment Real Estate [Member] | Nonperforming Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 1 | 2 |
Recorded Investment | 50 | 427 |
Outstanding Commitment | ' | ' |
Commercial and Industrial [Member] | Performing Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 7 | 5 |
Recorded Investment | 1,125 | 1,041 |
Outstanding Commitment | ' | ' |
Commercial and Industrial [Member] | Nonperforming Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 8 | 7 |
Recorded Investment | 1,195 | 1,251 |
Outstanding Commitment | ' | ' |
Other Commercial [Member] | Performing Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | ' | 1 |
Recorded Investment | ' | 236 |
Outstanding Commitment | ' | ' |
Mortgage [Member] | Performing Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 10 | 12 |
Recorded Investment | 2,318 | 2,256 |
Outstanding Commitment | ' | ' |
Mortgage [Member] | Nonperforming Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 2 | 1 |
Recorded Investment | 794 | 202 |
Outstanding Commitment | ' | ' |
Indirect Marine [Member] | Nonperforming Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | ' | 1 |
Recorded Investment | ' | 158 |
Outstanding Commitment | ' | ' |
Other Consumer [Member] | Performing Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 3 | 4 |
Recorded Investment | 106 | 460 |
Outstanding Commitment | ' | ' |
Other Consumer [Member] | Nonperforming Financing Receivable [Member] | ' | ' |
Summary, by class and modification type, of continue accrue interest under the terms of restructuring agreement | ' | ' |
No. of Loans | 1 | 1 |
Recorded Investment | 62 | 68 |
Outstanding Commitment | ' | ' |
LOANS_AND_ALLOWANCE_FOR_LOAN_L8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of TDR by Class and Modification Type) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
loan | loan | |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 30 | 42 |
Recorded investment at period end | $7,833 | $13,279 |
Restructurings with Payment Default [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 1 | 4 |
Recorded investment at period end | 43 | 1,540 |
Trouble Debt Restructuring Term Modification at Market Rate [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 24 | 23 |
Recorded investment at period end | 6,783 | 8,364 |
Trouble Debt Restructuring Term Modification at Market Rate [Member] | Restructurings with Payment Default [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | ' | 3 |
Recorded investment at period end | ' | 1,382 |
Trouble Debt Restructuring Term Modification at Market Rate [Member] | Commercial Construction [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 2 | ' |
Recorded investment at period end | 697 | ' |
Trouble Debt Restructuring Term Modification at Market Rate [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 2 | 5 |
Recorded investment at period end | 1,085 | 5,328 |
Trouble Debt Restructuring Term Modification at Market Rate [Member] | Commercial Real Estate - Owner Occupied [Member] | Restructurings with Payment Default [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | ' | 2 |
Recorded investment at period end | ' | 1,356 |
Trouble Debt Restructuring Term Modification at Market Rate [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 1 | 2 |
Recorded investment at period end | 745 | 715 |
Trouble Debt Restructuring Term Modification at Market Rate [Member] | Raw Land and Lots [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 3 | 1 |
Recorded investment at period end | 378 | 595 |
Trouble Debt Restructuring Term Modification at Market Rate [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 7 | ' |
Recorded investment at period end | 2,488 | ' |
Trouble Debt Restructuring Term Modification at Market Rate [Member] | Commercial and Industrial [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 5 | 6 |
Recorded investment at period end | 649 | 408 |
Trouble Debt Restructuring Term Modification at Market Rate [Member] | Mortgage [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 3 | 5 |
Recorded investment at period end | 707 | 858 |
Trouble Debt Restructuring Term Modification at Market Rate [Member] | Indirect Marine [Member] | Restructurings with Payment Default [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | ' | 1 |
Recorded investment at period end | ' | 26 |
Trouble Debt Restructuring Term Modification at Market Rate [Member] | Other Consumer [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 1 | 4 |
Recorded investment at period end | 34 | 460 |
Trouble Debt Restructuring Term Modification below Market Rate [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 3 | 7 |
Recorded investment at period end | 277 | 838 |
Trouble Debt Restructuring Term Modification below Market Rate [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 1 | 4 |
Recorded investment at period end | 115 | 647 |
Trouble Debt Restructuring Term Modification below Market Rate [Member] | Raw Land and Lots [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | ' | 1 |
Recorded investment at period end | ' | 59 |
Trouble Debt Restructuring Term Modification below Market Rate [Member] | Commercial and Industrial [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 1 | ' |
Recorded investment at period end | 8 | ' |
Trouble Debt Restructuring Term Modification below Market Rate [Member] | Mortgage [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 1 | 1 |
Recorded investment at period end | 154 | 64 |
Trouble Debt Restructuring Term Modification below Market Rate [Member] | Other Consumer [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | ' | 1 |
Recorded investment at period end | ' | 68 |
Trouble Debt Restructuring Interest Rate Modification below Market Rate [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | ' | 2 |
Recorded investment at period end | ' | 2,390 |
Trouble Debt Restructuring Interest Rate Modification below Market Rate [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | ' | 2 |
Recorded investment at period end | ' | 2,390 |
Modified to Interest Only at Market Rate [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 3 | 10 |
Recorded investment at period end | 773 | 1,687 |
Modified to Interest Only at Market Rate [Member] | Restructurings with Payment Default [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 1 | 1 |
Recorded investment at period end | 43 | 158 |
Modified to Interest Only at Market Rate [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | ' | 1 |
Recorded investment at period end | ' | 216 |
Modified to Interest Only at Market Rate [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | ' | 2 |
Recorded investment at period end | ' | 759 |
Modified to Interest Only at Market Rate [Member] | Raw Land and Lots [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 1 | 3 |
Recorded investment at period end | 43 | 257 |
Modified to Interest Only at Market Rate [Member] | Raw Land and Lots [Member] | Restructurings with Payment Default [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 1 | ' |
Recorded investment at period end | 43 | ' |
Modified to Interest Only at Market Rate [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | ' | 2 |
Recorded investment at period end | ' | 173 |
Modified to Interest Only at Market Rate [Member] | Mortgage [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | 2 | 1 |
Recorded investment at period end | 730 | 124 |
Modified to Interest Only at Market Rate [Member] | Indirect Marine [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | ' | 1 |
Recorded investment at period end | ' | 158 |
Modified to Interest Only at Market Rate [Member] | Indirect Marine [Member] | Restructurings with Payment Default [Member] | ' | ' |
Schedule of TDR by class and modification type | ' | ' |
No. of Loans | ' | 1 |
Recorded investment at period end | ' | $158 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L9
LOANS AND ALLOWANCE FOR LOAN LOSSES (Allowance for Loan Loss Activity, by Portfolio Segment, Balances for Allowance for Credit Losses, and Loans Based on Impairment Methodology) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for loan losses: | ' | ' | ' |
Balance, beginning of the year | $34,916 | $39,470 | $38,406 |
Recoveries credited to allowance | 2,781 | 1,711 | 2,130 |
Loans charged off | -13,618 | -18,465 | -17,866 |
Provision charged to operations | 6,056 | 12,200 | 16,800 |
Balance, end of period | 30,135 | 34,916 | 39,470 |
Ending balance: individually evaluated for impairment | 1,963 | 8,502 | 11,405 |
Ending balance: collectively evaluated for impairment | 28,172 | 26,292 | 27,980 |
Ending balance: loans acquired with deteriorated credit quality | ' | 122 | 85 |
Total | 30,135 | 34,916 | 39,470 |
Loans: | ' | ' | ' |
Ending balance: individually evaluated for impairment | 108,999 | 150,810 | 245,187 |
Ending balance: collectively evaluated for impairment | 2,926,747 | 2,811,472 | 2,563,499 |
Ending balance: loans acquired with deteriorated credit quality | 3,622 | 4,565 | 9,897 |
Total Loans | 3,039,368 | 2,966,847 | 2,818,583 |
Commercial [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Balance, beginning of the year | 24,821 | 27,891 | 28,255 |
Recoveries credited to allowance | 1,496 | 589 | 924 |
Loans charged off | -8,534 | -12,852 | -10,891 |
Provision charged to operations | 2,073 | 9,193 | 9,603 |
Balance, end of period | 19,856 | 24,821 | 27,891 |
Ending balance: individually evaluated for impairment | 1,152 | 6,626 | 10,127 |
Ending balance: collectively evaluated for impairment | 18,704 | 18,073 | 17,679 |
Ending balance: loans acquired with deteriorated credit quality | ' | 122 | 85 |
Total | 19,856 | 24,821 | 27,891 |
Loans: | ' | ' | ' |
Ending balance: individually evaluated for impairment | 101,894 | 143,330 | 239,853 |
Ending balance: collectively evaluated for impairment | 2,059,079 | 1,956,184 | 1,707,560 |
Ending balance: loans acquired with deteriorated credit quality | 2,732 | 3,594 | 8,828 |
Total Loans | 2,163,705 | 2,103,108 | 1,956,241 |
Consumer [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Balance, beginning of the year | 10,107 | 11,498 | 10,189 |
Recoveries credited to allowance | 1,285 | 1,122 | 1,206 |
Loans charged off | -5,084 | -5,613 | -6,975 |
Provision charged to operations | 3,919 | 3,100 | 7,078 |
Balance, end of period | 10,227 | 10,107 | 11,498 |
Ending balance: individually evaluated for impairment | 811 | 1,876 | 1,278 |
Ending balance: collectively evaluated for impairment | 9,416 | 8,231 | 10,220 |
Ending balance: loans acquired with deteriorated credit quality | ' | ' | ' |
Total | 10,227 | 10,107 | 11,498 |
Loans: | ' | ' | ' |
Ending balance: individually evaluated for impairment | 7,105 | 7,480 | 5,334 |
Ending balance: collectively evaluated for impairment | 867,668 | 855,288 | 855,939 |
Ending balance: loans acquired with deteriorated credit quality | 890 | 971 | 1,069 |
Total Loans | 875,663 | 863,739 | 862,342 |
Unallocated [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Balance, beginning of the year | -12 | 81 | -38 |
Recoveries credited to allowance | ' | ' | ' |
Loans charged off | ' | ' | ' |
Provision charged to operations | 64 | -93 | 119 |
Balance, end of period | 52 | -12 | 81 |
Ending balance: individually evaluated for impairment | ' | ' | ' |
Ending balance: collectively evaluated for impairment | 52 | -12 | 81 |
Ending balance: loans acquired with deteriorated credit quality | ' | ' | ' |
Total | 52 | -12 | 81 |
Loans: | ' | ' | ' |
Ending balance: individually evaluated for impairment | ' | ' | ' |
Ending balance: collectively evaluated for impairment | ' | ' | ' |
Ending balance: loans acquired with deteriorated credit quality | ' | ' | ' |
Total Loans | ' | ' | ' |
Recovered_Sheet1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Receivables Related Risk Rating Excluding Purchased Impaired Loans) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | $2,160,973 | $2,099,514 |
Commercial Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 213,675 | 202,344 |
Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 500,764 | 513,424 |
Commercial Real Estate - Non-Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 755,905 | 682,760 |
Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 185,072 | 202,784 |
Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 237,365 | 233,069 |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 215,702 | 217,582 |
Other Commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 52,490 | 47,551 |
1-3 [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 533,049 | 442,969 |
1-3 [Member] | Commercial Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 24,399 | 5,504 |
1-3 [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 149,632 | 145,977 |
1-3 [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 224,702 | 161,343 |
1-3 [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 8,648 | 3,943 |
1-3 [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 38,327 | 43,705 |
1-3 [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 68,748 | 68,308 |
1-3 [Member] | Other Commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 18,593 | 14,189 |
4 [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 1,340,160 | 1,266,058 |
4 [Member] | Commercial Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 148,251 | 117,769 |
4 [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 324,394 | 321,486 |
4 [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 453,279 | 417,412 |
4 [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 98,927 | 114,053 |
4 [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 168,564 | 156,636 |
4 [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 123,585 | 120,442 |
4 [Member] | Other Commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 23,160 | 18,260 |
5 [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 95,557 | 125,339 |
5 [Member] | Commercial Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 20,370 | 14,637 |
5 [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 10,017 | 15,197 |
5 [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 21,953 | 48,840 |
5 [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 14,132 | 13,260 |
5 [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 12,302 | 12,111 |
5 [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 8,254 | 10,584 |
5 [Member] | Other Commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 8,529 | 10,710 |
6 [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 109,392 | 145,409 |
6 [Member] | Commercial Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 13,772 | 33,815 |
6 [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 10,926 | 19,051 |
6 [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 46,084 | 34,646 |
6 [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 16,439 | 29,194 |
6 [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 11,522 | 13,150 |
6 [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 8,752 | 12,064 |
6 [Member] | Other Commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 1,897 | 3,489 |
7 [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 80,274 | 119,355 |
7 [Member] | Commercial Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 6,883 | 30,619 |
7 [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 5,795 | 11,713 |
7 [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 9,887 | 20,519 |
7 [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 46,926 | 42,148 |
7 [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 6,650 | 7,467 |
7 [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 3,822 | 6,045 |
7 [Member] | Other Commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 311 | 844 |
8 [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 2,541 | 384 |
8 [Member] | Commercial Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
8 [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
8 [Member] | Commercial Real Estate - Non-Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
8 [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | 186 |
8 [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
8 [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 2,541 | 139 |
8 [Member] | Other Commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | $59 |
Recovered_Sheet2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Receivables Related Risk Rating Including Purchased Impaired Loans) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | $2,160,973 | $2,099,514 |
Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 500,764 | 513,424 |
Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 185,072 | 202,784 |
Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 237,365 | 233,069 |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 215,702 | 217,582 |
4 [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 1,340,160 | 1,266,058 |
4 [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 324,394 | 321,486 |
4 [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 98,927 | 114,053 |
4 [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 168,564 | 156,636 |
4 [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 123,585 | 120,442 |
5 [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 95,557 | 125,339 |
5 [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 10,017 | 15,197 |
5 [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 14,132 | 13,260 |
5 [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 12,302 | 12,111 |
5 [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 8,254 | 10,584 |
6 [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 109,392 | 145,409 |
6 [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 10,926 | 19,051 |
6 [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 16,439 | 29,194 |
6 [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 11,522 | 13,150 |
6 [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 8,752 | 12,064 |
7 [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 80,274 | 119,355 |
7 [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 5,795 | 11,713 |
7 [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 46,926 | 42,148 |
7 [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 6,650 | 7,467 |
7 [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 3,822 | 6,045 |
8 [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 2,541 | 384 |
8 [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
8 [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | 186 |
8 [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
8 [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 2,541 | 139 |
Purchased Impaired [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 2,732 | 3,594 |
Purchased Impaired [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | 247 |
Purchased Impaired [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 2,457 | 2,942 |
Purchased Impaired [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 275 | 326 |
Purchased Impaired [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | 79 |
Purchased Impaired [Member] | 4 [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 275 | ' |
Purchased Impaired [Member] | 4 [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
Purchased Impaired [Member] | 4 [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 275 | ' |
Purchased Impaired [Member] | 5 [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 653 | 312 |
Purchased Impaired [Member] | 5 [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
Purchased Impaired [Member] | 5 [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 653 | ' |
Purchased Impaired [Member] | 5 [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | 312 |
Purchased Impaired [Member] | 5 [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
Purchased Impaired [Member] | 6 [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
Purchased Impaired [Member] | 6 [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
Purchased Impaired [Member] | 6 [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
Purchased Impaired [Member] | 6 [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
Purchased Impaired [Member] | 6 [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
Purchased Impaired [Member] | 7 [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 1,804 | 3,282 |
Purchased Impaired [Member] | 7 [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | 247 |
Purchased Impaired [Member] | 7 [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | 1,804 | 2,942 |
Purchased Impaired [Member] | 7 [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | 14 |
Purchased Impaired [Member] | 7 [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | 79 |
Purchased Impaired [Member] | 8 [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
Purchased Impaired [Member] | 8 [Member] | Commercial Real Estate - Owner Occupied [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
Purchased Impaired [Member] | 8 [Member] | Raw Land and Lots [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
Purchased Impaired [Member] | 8 [Member] | Single Family Investment Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
Purchased Impaired [Member] | 8 [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans receivables related risk rating | ' | ' |
Recovered_Sheet3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Acquired Loan Portfolio and Accretable Yield) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Purchased Impaired [Member] | Purchased Impaired [Member] | Purchased Nonimpaired [Member] | Purchased Nonimpaired [Member] | |||
Accretable Yield | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | ' | $3,147 | $5,140 | $5,350 | $9,010 |
Accretion | ' | ' | ' | -55 | -353 | -2,009 | -3,660 |
Charge-offs | ' | ' | ' | -112 | -1,640 | ' | ' |
Balance at end of period | ' | ' | ' | 2,980 | 3,147 | 3,341 | 5,350 |
Carrying Amount of Loans | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | 3,622 | 4,565 | 9,897 | 4,565 | 9,897 | 473,283 | 663,510 |
Charge-offs | ' | ' | ' | -96 | -412 | -1,774 | -2,320 |
Transfers to OREO | ' | ' | ' | -201 | -2,371 | -207 | -2,895 |
Payments received, net | ' | ' | ' | -646 | -2,549 | -96,806 | -185,012 |
Balance at end of period | $3,622 | $4,565 | $9,897 | $3,622 | $4,565 | $374,496 | $473,283 |
BANK_PREMISES_AND_EQUIPMENT_Na
BANK PREMISES AND EQUIPMENT (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
BANK PREMISES AND EQUIPMENT [Abstract] | ' | ' | ' |
Depreciation expense | $6,024,000 | $6,631,000 | $6,715,000 |
Renewable lease period | '20 years | ' | ' |
Rental expense | $5,700,000 | $5,900,000 | $4,900,000 |
BANK_PREMISES_AND_EQUIPMENT_Su
BANK PREMISES AND EQUIPMENT (Summary of Bank Premises and Equipment) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Total | $136,812 | $136,907 |
Less accumulated depreciation and amortization | 53,997 | 51,498 |
Bank premises and equipment, net | 82,815 | 85,409 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 23,652 | 24,493 |
Land Improvements and Buildings [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 62,329 | 62,721 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 5,313 | 5,290 |
Furniture and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 36,133 | 37,707 |
Equipment Lease [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 62 | 62 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | $9,323 | $6,634 |
BANK_PREMISES_AND_EQUIPMENT_Sc
BANK PREMISES AND EQUIPMENT (Schedule of Future Minimum Rental Payments Required) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
BANK PREMISES AND EQUIPMENT [Abstract] | ' |
2014 | $5,380 |
2015 | 4,985 |
2016 | 4,232 |
2017 | 3,967 |
2018 | 3,807 |
Thereafter | 10,410 |
Total of future payments | $32,781 |
INTANGIBLE_ASSETS_Narrative_De
INTANGIBLE ASSETS (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 28, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Core Deposits [Member] | Core Deposits [Member] | Core Deposits [Member] | Core Deposits [Member] | Core Deposits [Member] | Trademarks [Member] | Trademarks [Member] | Trademarks [Member] | Trademarks [Member] | |||||
Minimum [Member] | Maximum [Member] | ||||||||||||
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets, amortization period | ' | ' | ' | ' | ' | ' | ' | '4 years | '14 years | '3 years | ' | ' | ' |
Intangible assets, amortization expense | ' | $3,831,000 | $5,336,000 | $6,522,000 | $3,800,000 | $4,900,000 | $6,100,000 | ' | ' | ' | $33,000 | $400,000 | $400,000 |
Impairment charges | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INTANGIBLE_ASSETS_Information_
INTANGIBLE ASSETS (Information Concerning Intangible Assets with Finite Life) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Information concerning intangible assets with finite life | ' | ' |
Net Carrying Value | $11,980 | $15,778 |
Core Deposits [Member] | ' | ' |
Information concerning intangible assets with finite life | ' | ' |
Gross Carrying Value | 46,615 | 46,615 |
Accumulated Amortization | 34,635 | 30,837 |
Net Carrying Value | 11,980 | 15,778 |
Trademarks [Member] | ' | ' |
Information concerning intangible assets with finite life | ' | ' |
Gross Carrying Value | 1,200 | 1,200 |
Accumulated Amortization | 1,200 | 1,167 |
Net Carrying Value | ' | $33 |
INTANGIBLE_ASSETS_Estimated_Re
INTANGIBLE ASSETS (Estimated Remaining Amortization Expense of Core Deposit Intangibles) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Estimated remaining amortization expense of core deposit intangibles | ' | ' |
2014 | $2,898 | ' |
2015 | 2,463 | ' |
2016 | 1,862 | ' |
2017 | 1,437 | ' |
2018 | 906 | ' |
Thereafter | 2,414 | ' |
Total estimated amortization expense | $11,980 | $15,778 |
DEPOSITS_Narrative_Details
DEPOSITS (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash and Cash Equivalents [Line Items] | ' | ' |
Time deposits held in Certificates of Deposit | $871,851,000 | ' |
Deposit overdrafts as other consumer loans | 1,800,000 | 5,700,000 |
Certificates of Deposit [Member] | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' |
Time deposits held in Certificates of Deposit | $32,000,000 | $36,700,000 |
Maturity of deposits held in Certificate of Deposits | '1 year | ' |
DEPOSITS_Schedule_of_Deposits_
DEPOSITS (Schedule of Deposits by Type) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
DEPOSITS [Abstract] | ' | ' |
NOW accounts | $498,068 | $454,150 |
Money market accounts | 940,215 | 957,130 |
Savings accounts | 235,034 | 207,846 |
Time deposits of $100,000 and over | 427,597 | 508,630 |
Other time deposits | 444,254 | 524,110 |
Total interest-bearing deposits | $2,545,168 | $2,651,866 |
DEPOSITS_Scheduled_Maturities_
DEPOSITS (Scheduled Maturities of Time Deposits) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
DEPOSITS [Abstract] | ' |
2014 | $563,788 |
2015 | 141,329 |
2016 | 76,595 |
2017 | 37,814 |
2018 | 52,325 |
Total scheduled maturities of time deposits | $871,851 |
BORROWINGS_Narrative_Details
BORROWINGS (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Remaining available balance for the federal funds lines | $93,500,000 | $87,000,000 |
Securities pledged as collateral for FHLB advances | 805,200,000 | 802,200,000 |
Trust preferred capital notes principal balance | 58,500,000 | ' |
Prepayment penalty | 19,600,000 | ' |
Prepayment penalty amortization expense | 1,700,000 | 612,000 |
Collateral dependent line of credit with the FHLB | 1,100,000,000 | 1,000,000,000 |
Acquisitions, Prior To 2006 [Member] | ' | ' |
Number of bank acquisitions | 2 | ' |
Subordinated debt interest rate basis | 'LIBOR plus 1.45% | ' |
Subordinated debt maturity date | 1-Apr-16 | ' |
Subordinated debt | $16,400,000 | ' |
LIBOR [Member] | ' | ' |
Three-month LIBOR rate plus | 1.50% | ' |
LIBOR [Member] | Acquisitions, Prior To 2006 [Member] | ' | ' |
Three-month LIBOR rate plus | 1.45% | ' |
BORROWINGS_ShortTerm_Borrowing
BORROWINGS (Short-Term Borrowings) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Short-term borrowings | ' | ' |
Securities sold under agreements to repurchase | $52,455 | $54,270 |
Other short-term borrowings | 211,500 | 78,000 |
Total short-term borrowings | 263,955 | 132,270 |
Maximum month-end outstanding balance | 263,955 | 154,116 |
Average outstanding balance during the period | 119,433 | 91,993 |
Average interest rate during the period | 0.30% | 0.31% |
Average interest rate at end of period | 0.30% | 0.28% |
Other short-term borrowings: | ' | ' |
Federal Funds purchased | 31,500 | 38,000 |
FHLB | $180,000 | $40,000 |
BORROWINGS_Trust_Preferred_Cap
BORROWINGS (Trust Preferred Capital Notes Qualify for Tier 1 Capital) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | ||
Trust preferred capital notes qualify for Tier 1 capital | ' | ' | |
Trust preferred capital notes principal balance | $58,500,000 | ' | |
Investment | 149,435,000 | 113,844,000 | |
Statutory Trust I [Member] | ' | ' | |
Trust preferred capital notes qualify for Tier 1 capital | ' | ' | |
Trust preferred capital notes principal balance | 22,500,000 | ' | |
Investment | 696,000 | [1] | ' |
Rate | 3.00% | ' | |
Maturity | 17-Jun-34 | ' | |
Statutory Trust II [Member] | ' | ' | |
Trust preferred capital notes qualify for Tier 1 capital | ' | ' | |
Trust preferred capital notes principal balance | 36,000,000 | ' | |
Investment | $1,114,000 | [1] | ' |
Rate | 1.65% | ' | |
Maturity | 15-Jun-36 | ' | |
LIBOR [Member] | ' | ' | |
Trust preferred capital notes qualify for Tier 1 capital | ' | ' | |
Spread to 3-Month LIBOR | 1.50% | ' | |
LIBOR [Member] | Statutory Trust I [Member] | ' | ' | |
Trust preferred capital notes qualify for Tier 1 capital | ' | ' | |
Spread to 3-Month LIBOR | 2.75% | ' | |
LIBOR [Member] | Statutory Trust II [Member] | ' | ' | |
Trust preferred capital notes qualify for Tier 1 capital | ' | ' | |
Spread to 3-Month LIBOR | 1.40% | ' | |
[1] | reported as 'Other Assets' within the Consolidated Balance Sheets |
BORROWINGS_Advances_from_the_F
BORROWINGS (Advances from the FHLB) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Advances from the FHLB | ' | ' |
Advance Amount | $140,000 | $140,000 |
Adjustable Rate Credit One [Member] | ' | ' |
Advances from the FHLB | ' | ' |
Interest Rate | 0.69% | 0.75% |
Maturity Date | 23-Aug-22 | 23-Aug-22 |
Advance Amount | 55,000 | 55,000 |
Adjustable Rate Credit Two [Member] | ' | ' |
Advances from the FHLB | ' | ' |
Interest Rate | 0.70% | 0.76% |
Maturity Date | 23-Nov-22 | 23-Nov-22 |
Advance Amount | 65,000 | 65,000 |
Adjustable Rate Credit Three [Member] | ' | ' |
Advances from the FHLB | ' | ' |
Interest Rate | 0.70% | 0.76% |
Maturity Date | 23-Nov-22 | 23-Nov-22 |
Advance Amount | 10,000 | 10,000 |
Adjustable Rate Credit Four [Member] | ' | ' |
Advances from the FHLB | ' | ' |
Interest Rate | 0.70% | 0.76% |
Maturity Date | 23-Nov-22 | 23-Nov-22 |
Advance Amount | $10,000 | $10,000 |
LIBOR [Member] | ' | ' |
Advances from the FHLB | ' | ' |
Spread to 3-Month LIBOR | 1.50% | ' |
LIBOR [Member] | Adjustable Rate Credit One [Member] | ' | ' |
Advances from the FHLB | ' | ' |
Spread to 3-Month LIBOR | 0.44% | 0.44% |
LIBOR [Member] | Adjustable Rate Credit Two [Member] | ' | ' |
Advances from the FHLB | ' | ' |
Spread to 3-Month LIBOR | 0.45% | 0.45% |
LIBOR [Member] | Adjustable Rate Credit Three [Member] | ' | ' |
Advances from the FHLB | ' | ' |
Spread to 3-Month LIBOR | 0.45% | 0.45% |
LIBOR [Member] | Adjustable Rate Credit Four [Member] | ' | ' |
Advances from the FHLB | ' | ' |
Spread to 3-Month LIBOR | 0.45% | 0.45% |
BORROWINGS_Contractual_Maturit
BORROWINGS (Contractual Maturities of Long-Term Debt) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Contractual maturities of long-term debt | ' | ' |
2014 | ($1,787) | ' |
2015 | -1,831 | ' |
2016 | 14,477 | ' |
2017 | -1,923 | ' |
2018 | -1,969 | ' |
Thereafter | 132,082 | ' |
Total long-term Borrowings | 139,049 | 136,815 |
Subordinated Debt [Member] | ' | ' |
Contractual maturities of long-term debt | ' | ' |
2014 | ' | ' |
2015 | ' | ' |
2016 | 16,359 | ' |
2017 | ' | ' |
2018 | ' | ' |
Thereafter | ' | ' |
Total long-term Borrowings | 16,359 | ' |
Federal Home Loan Bank Advances [Member] | ' | ' |
Contractual maturities of long-term debt | ' | ' |
2014 | ' | ' |
2015 | ' | ' |
2016 | ' | ' |
2017 | ' | ' |
2018 | ' | ' |
Thereafter | 140,000 | ' |
Total long-term Borrowings | 140,000 | ' |
Prepayment Penalty [Member] | ' | ' |
Contractual maturities of long-term debt | ' | ' |
2014 | -1,787 | ' |
2015 | -1,831 | ' |
2016 | -1,882 | ' |
2017 | -1,923 | ' |
2018 | -1,969 | ' |
Thereafter | -7,918 | ' |
Total long-term Borrowings | -17,310 | ' |
Parent Company [Member] | ' | ' |
Contractual maturities of long-term debt | ' | ' |
Total long-term Borrowings | $8,750 | $9,375 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | ' |
Loans available for sale in which the related rate lock commitment expired | $2,000,000 | ' |
Valuation reserve on aged loans held for sale in which the related rate lock commitment expired | 94,000 | 92,000 |
Daily average required reserves | 16,000,000 | 14,200,000 |
Deposits with other financial institutions | 9,600,000 | ' |
Deposits with other financial institutions serves as collateral | 3,100,000 | ' |
Uninsured deposits with other financial institutions | 5,600,000 | ' |
Maximum amount covered by deposit insurance | 250,000 | ' |
Claim accrual on USDA and FHA loans previously sold | 966,000 | ' |
Indemnification reserves | $627,000 | $446,000 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Balances of Commitments and Contingencies) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Commitments with off-balance sheet risk: | ' | ' | ||
Total commitments with off-balance sheet risk | $994,621 | $1,023,628 | ||
Commitments with balance sheet risk: | ' | ' | ||
Loans held for sale | 53,185 | 167,698 | ||
Total other commitments | 1,047,806 | 1,191,326 | ||
Commitments to Extend Credit [Member] | ' | ' | ||
Commitments with off-balance sheet risk: | ' | ' | ||
Total commitments with off-balance sheet risk | 891,680 | [1] | 844,766 | [1] |
Standby Letters of Credit [Member] | ' | ' | ||
Commitments with off-balance sheet risk: | ' | ' | ||
Total commitments with off-balance sheet risk | 48,107 | 45,536 | ||
Mortgage Rate Lock Commitments [Member] | ' | ' | ||
Commitments with off-balance sheet risk: | ' | ' | ||
Total commitments with off-balance sheet risk | $54,834 | $133,326 | ||
[1] | Includes unfunded overdraft protection. |
DERIVATIVES_Narrative_Details
DERIVATIVES (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Derivatives, Fair Value [Line Items] | ' |
Unrealized loss of fair value of the cash flow hedges | $3,600,000 |
Deposits with other financial institutions serves as collateral | 3,100,000 |
Trust Swaps [Member] | ' |
Derivatives, Fair Value [Line Items] | ' |
Fixed rate of interest for payment to counterparty on the trust swap | 3.51% |
Notional Amount | 36,000,000 |
Cash flow hedge term | '6 years |
Deposits with other financial institutions serves as collateral | 3,100,000 |
Prime Loan Swaps [Member] | ' |
Derivatives, Fair Value [Line Items] | ' |
Interest rate spread calculated on the Wall Street Journal Prime Index | 1.00% |
Notional Amount | 100,000,000 |
Number of loan swaps with floor rates | 4 |
Cash flow hedge term | '6 years |
Positions | 8 |
Market Value Of Securities Pledged As Collateral For Derivative Instruments | $5,700,000 |
Prime Loan Swaps [Member] | Minimum [Member] | ' |
Derivatives, Fair Value [Line Items] | ' |
Receive Rate | 4.71% |
Pay Rate | 4.00% |
Prime Loan Swaps [Member] | Maximum [Member] | ' |
Derivatives, Fair Value [Line Items] | ' |
Receive Rate | 6.09% |
Pay Rate | 5.00% |
DERIVATIVES_Summary_of_the_Der
DERIVATIVES (Summary of the Derivatives) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | |
item | item | ||
Trust Swaps [Member] | ' | ' | |
Summary of the derivative designated as a cash flow hedge | ' | ' | |
Notional Amount | $36,000 | ' | |
Liability | 3,046 | 4,489 | |
Life (Years) | '6 years | ' | |
Prime Loan Swaps [Member] | ' | ' | |
Summary of the derivative designated as a cash flow hedge | ' | ' | |
Positions | 8 | ' | |
Notional Amount | 100,000 | ' | |
Liability | 516 | ' | |
Life (Years) | '6 years | ' | |
Receive Fixed - Pay Floating Interest Rate Swaps [Member] | Prime Loan Swaps [Member] | ' | ' | |
Summary of the derivative designated as a cash flow hedge | ' | ' | |
Positions | 8 | ' | |
Notional Amount | 100,000 | ' | |
Asset | ' | ' | |
Liability | 516 | ' | |
Receive Rate | 5.17% | [1] | ' |
Pay Rate | 3.89% | [1] | ' |
Life (Years) | '5 years 8 months 19 days | ' | |
Receive Fixed - Pay Floating Interest Rate Swaps [Member] | Interest Rate Swap [Member] | ' | ' | |
Summary of the derivative designated as a cash flow hedge | ' | ' | |
Positions | 1 | 1 | |
Notional Amount | 718 | 744 | |
Asset | 33 | 18 | |
Receive Rate | 4.58% | 4.58% | |
Pay Rate | 2.92% | 2.96% | |
Life (Years) | '8 years 7 months 2 days | '9 years 7 months 2 days | |
Pay Fixed - Receive Floating Interest Rate Swaps [Member] | Trust Swaps [Member] | ' | ' | |
Summary of the derivative designated as a cash flow hedge | ' | ' | |
Positions | 1 | 1 | |
Notional Amount | 36,000 | 36,000 | |
Asset | ' | ' | |
Liability | 3,046 | 4,489 | |
Receive Rate | 0.25% | 0.31% | |
Pay Rate | 3.51% | 3.51% | |
Life (Years) | '3 years 5 months 16 days | '4 years 5 months 16 days | |
Pay Fixed - Receive Floating Interest Rate Swaps [Member] | Interest Rate Swap [Member] | ' | ' | |
Summary of the derivative designated as a cash flow hedge | ' | ' | |
Positions | 1 | 1 | |
Notional Amount | 718 | 744 | |
Liability | $33 | $18 | |
Receive Rate | 2.92% | 2.96% | |
Pay Rate | 4.58% | 4.58% | |
Life (Years) | '8 years 7 months 2 days | '9 years 7 months 2 days | |
Minimum [Member] | Prime Loan Swaps [Member] | ' | ' | |
Summary of the derivative designated as a cash flow hedge | ' | ' | |
Receive Rate | 4.71% | ' | |
Pay Rate | 4.00% | ' | |
Maximum [Member] | Prime Loan Swaps [Member] | ' | ' | |
Summary of the derivative designated as a cash flow hedge | ' | ' | |
Receive Rate | 6.09% | ' | |
Pay Rate | 5.00% | ' | |
[1] | This receive rate is a weighted average rate for the 8 loan swaps that have a receive rate range from 4.71% to 6.09%. The pay rate is a weighted average rate taking into consideration the floor rates discussed above. |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accumulated Other Comprehensive Income (Textual) [Abstract] | ' | ' | ' | ' |
Reclassifications of unrealized gains (losses) on AFS | ' | $21,000 | $190,000 | $913,000 |
Tax effect related to gains/losses on the sale of securities | ' | 7,000 | 67,000 | 179,000 |
Credit-related OTTI | 400,000 | 0 | ' | 400,000 |
Change in fair value of cash flow hedge, gain (loss) | ' | -805,000 | -1,100,000 | -638,000 |
Tax effect related to gains/losses on the cash flow hedges | ' | $281,000 | $391,000 | $223,000 |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Change in Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in accumulated other comprehensive income | ' | ' | ' |
Unrealized Gains (losses) on Securities, Beginning Balance | $14,573 | $13,943 | $5,046 |
Change in FV of Cash Flow Hedge, Beginning Balance | -4,489 | -4,293 | -1,475 |
Total, Beginning Balance | 10,084 | 9,650 | 3,571 |
Other comprehensive income (loss) before reclass, Unrealized Gains (losses) on Securities | -13,367 | 753 | 9,231 |
Other comprehensive income (loss) before reclass, Change in FV of Cash Flow Hedge | 583 | -922 | -3,233 |
Other comprehensive income (loss) before reclass, Total | -12,784 | -169 | 5,998 |
Amounts reclassified from accumulated other comprehensive income, Unrealized Gains (losses) on Securities | -14 | -123 | -334 |
Amounts reclassified from accumulated other comprehensive income, Change in FV of Cash Flow Hedge | 524 | 726 | 415 |
Amounts reclassified from accumulated other comprehensive income | 510 | 603 | 81 |
Net current period other comprehensive income (loss), Unrealized Gains (losses) on Securities | -13,381 | 630 | 8,897 |
Net current period other comprehensive income (loss), Change in FV of Cash Flow Hedge | 1,107 | -196 | -2,818 |
Other comprehensive income (loss) | -12,274 | 434 | 6,079 |
Unrealized Gains (losses) on Securities, Ending Balance | 1,192 | 14,573 | 13,943 |
Change in FV of Cash Flow Hedge, Ending Balance | -3,382 | -4,489 | -4,293 |
Total, Ending Balance | ($2,190) | $10,084 | $9,650 |
REGULATORY_MATTERS_AND_CAPITAL2
REGULATORY MATTERS AND CAPITAL (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2012 | Feb. 29, 2012 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 02, 2013 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock purchased under stock repurchase plan, shares | ' | 335,649 | 500,000 | 500,000 | 970,265 | ' | ' |
Stock repurchased, aggregate purchase price | ' | $4,363,437 | $9,500,000 | $9,499,000 | $14,445,000 | $35,595,000 | ' |
Stock repurchased, purchase price per share | $15.44 | $13 | $19 | ' | ' | ' | ' |
Repurchased common stock shares transferred to employee stock ownership plan | ' | 115,384 | ' | ' | ' | ' | ' |
Repurchased common stock shares transferred to employee stock ownership plan price per share | ' | $13 | ' | ' | ' | ' | ' |
Stock repurchased and retired, shares | 750,000 | 220,265 | ' | ' | ' | ' | ' |
Stock repurchased and retired | $11,580,000 | ' | ' | ' | ' | ' | ' |
Tier 1 capital ratio of risk-weighted assets | 13.14% | ' | ' | 13.05% | 13.14% | ' | ' |
Capital ratio of risk-weighted assets | 14.57% | ' | ' | 14.17% | 14.57% | ' | 8.00% |
Leverage ratio of total assets | 10.29% | ' | ' | 10.70% | 10.29% | ' | 4.00% |
New Common Equity [Member] | ' | ' | ' | ' | ' | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Tier 1 capital ratio of risk-weighted assets | ' | ' | ' | ' | ' | ' | 4.50% |
Current Rule [Member] | ' | ' | ' | ' | ' | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Tier 1 capital ratio of risk-weighted assets | ' | ' | ' | ' | ' | ' | 4.00% |
Future Rule [Member] | ' | ' | ' | ' | ' | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Tier 1 capital ratio of risk-weighted assets | ' | ' | ' | ' | ' | ' | 6.00% |
REGULATORY_MATTERS_AND_CAPITAL3
REGULATORY MATTERS AND CAPITAL (Schedule of Bank Capital and Ratio) (Details) (USD $) | Dec. 31, 2013 | Jul. 02, 2013 | Dec. 31, 2012 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' |
Total capital to risk weighted assets, Actual Amount | $465,360 | ' | $454,444 |
Total capital to risk weighted assets, Actual ratio | 14.17% | 8.00% | 14.57% |
Total capital to risk weighted assets, Required for Capital Adqquacy purposes, Amount | 262,730 | ' | 249,487 |
Total capital to risk weighted assets, Required for Capital Adqquacy purposes, Ratio | 8.00% | ' | 8.00% |
Tier 1 capital to risk weighted assets, Actual Amount | 428,490 | ' | 409,879 |
Tier 1 capital to risk weighted assets, Actual Ratio | 13.05% | ' | 13.14% |
Tier 1 capital to risk weighted assets, Required for Capital Adequacy Purposes, Amount | 131,338 | ' | 124,743 |
Tier 1 capital to risk weighted assets, Required for Capital Adequacy Purposes, Ratio | 4.00% | ' | 4.00% |
Tier 1 capital to average adjusted assets, Actual Amount | 428,490 | ' | 409,879 |
Tier 1 capital to average adjusted assets, Actual Ratio | 10.70% | 4.00% | 10.29% |
Tier 1 capital to average adjusted assets, Required for Capital Adequacy Purposes, Amount | 160,183 | ' | 159,408 |
Tier 1 capital to average adjusted assets, Required for Capital Adequacy Purposes, Ratio | 4.00% | ' | 4.00% |
Parent Company [Member] | ' | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' |
Total capital to risk weighted assets, Actual Amount | 442,784 | ' | 438,860 |
Total capital to risk weighted assets, Actual ratio | 13.56% | ' | 14.14% |
Total capital to risk weighted assets, Required for Capital Adqquacy purposes, Amount | 261,229 | ' | 248,294 |
Total capital to risk weighted assets, Required for Capital Adqquacy purposes, Ratio | 8.00% | ' | 8.00% |
Total capital to risk weighted assets, Required in Order to Be Well Capitalized Under PCA, Amount | 326,537 | ' | 310,367 |
Total capital to risk weighted assets, Required in Order to Be Well Capitalized Under PCA, Ratio | 10.00% | ' | 10.00% |
Tier 1 capital to risk weighted assets, Actual Amount | 405,925 | ' | 394,296 |
Tier 1 capital to risk weighted assets, Actual Ratio | 12.43% | ' | 12.70% |
Tier 1 capital to risk weighted assets, Required for Capital Adequacy Purposes, Amount | 130,628 | ' | 124,147 |
Tier 1 capital to risk weighted assets, Required for Capital Adequacy Purposes, Ratio | 4.00% | ' | 4.00% |
Tier 1 capital to risk weighted assets, Required in Order to Be Well Capitalized Under PCA, Amount | 195,941 | ' | 186,220 |
Tier 1 capital to risk weighted assets, Required in Order to Be Well Capitalized Under PCA, Ratio | 6.00% | ' | 6.00% |
Tier 1 capital to average adjusted assets, Actual Amount | 405,925 | ' | 394,296 |
Tier 1 capital to average adjusted assets, Actual Ratio | 10.19% | ' | 9.94% |
Tier 1 capital to average adjusted assets, Required for Capital Adequacy Purposes, Amount | 159,342 | ' | 158,631 |
Tier 1 capital to average adjusted assets, Required for Capital Adequacy Purposes, Ratio | 4.00% | ' | 4.00% |
Tier 1 capital to average adjusted assets, Required in Order to Be Well Capitalized Under PCA, Amount | $199,178 | ' | $198,288 |
Tier 1 capital to average adjusted assets, Required in Order to Be Well Capitalized Under PCA, Ratio | 5.00% | ' | 5.00% |
FAIR_VALUE_MEASUREMENTS_Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | |||
FAIR VALUE MEASUREMENTS [Abstract] | ' | ' | ' |
Minimum number of market participants | 4,000 | ' | ' |
Total valuation expenses related to OREO properties | $791,000 | $301,000 | $707,000 |
Nonrecurring fair value adjustments recorded on loans held for sale | $363,000 | $0 | ' |
FAIR_VALUE_MEASUREMENTS_Schedu
FAIR VALUE MEASUREMENTS (Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Asset, interest rate swap - loans | $33 | $18 |
Available for sale securities, Estimated fair value | 677,348 | 585,382 |
Liability, interest rate swap - loans | 33 | 18 |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Asset, interest rate swap - loans | ' | ' |
Available for sale securities, Estimated fair value | ' | ' |
Liability, interest rate swap - loans | ' | ' |
Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Asset, interest rate swap - loans | 33 | 18 |
Available for sale securities, Estimated fair value | 677,348 | 585,382 |
Liability, interest rate swap - loans | 33 | 18 |
Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Asset, interest rate swap - loans | ' | ' |
Available for sale securities, Estimated fair value | ' | ' |
Liability, interest rate swap - loans | ' | ' |
Recurring [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Asset, interest rate swap - loans | 33 | 18 |
Liability, interest rate swap - loans | 33 | 18 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Asset, interest rate swap - loans | ' | ' |
Liability, interest rate swap - loans | ' | ' |
Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Asset, interest rate swap - loans | 33 | 18 |
Liability, interest rate swap - loans | 33 | 18 |
Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Asset, interest rate swap - loans | ' | ' |
Liability, interest rate swap - loans | ' | ' |
US Government Agencies Debt Securities [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | 2,153 | 2,849 |
US Government Agencies Debt Securities [Member] | Recurring [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | 2,153 | 2,849 |
US Government Agencies Debt Securities [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | ' | ' |
US Government Agencies Debt Securities [Member] | Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | 2,153 | 2,849 |
US Government Agencies Debt Securities [Member] | Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | ' | ' |
Obligations of States and Political Subdivisions [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | 254,830 | 229,778 |
Obligations of States and Political Subdivisions [Member] | Recurring [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | 254,830 | 229,778 |
Obligations of States and Political Subdivisions [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | ' | ' |
Obligations of States and Political Subdivisions [Member] | Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | 254,830 | 229,778 |
Obligations of States and Political Subdivisions [Member] | Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | ' | ' |
Corporate and Other Bonds [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | 9,434 | 7,212 |
Corporate and Other Bonds [Member] | Recurring [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | 9,434 | 7,212 |
Corporate and Other Bonds [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | ' | ' |
Corporate and Other Bonds [Member] | Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | 9,434 | 7,212 |
Corporate and Other Bonds [Member] | Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | ' | ' |
Mortgage Backed Securities [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | 407,362 | 342,174 |
Mortgage Backed Securities [Member] | Recurring [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | 407,362 | 342,174 |
Mortgage Backed Securities [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | ' | ' |
Mortgage Backed Securities [Member] | Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | 407,362 | 342,174 |
Mortgage Backed Securities [Member] | Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | ' | ' |
Other Securities [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | 3,569 | 3,369 |
Other Securities [Member] | Recurring [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | 3,569 | 3,369 |
Other Securities [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | ' | ' |
Other Securities [Member] | Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | 3,569 | 3,369 |
Other Securities [Member] | Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Available for sale securities, Estimated fair value | ' | ' |
Trust Swaps [Member] | Recurring [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Cash flow hedge | 3,046 | 4,489 |
Trust Swaps [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Cash flow hedge | ' | ' |
Trust Swaps [Member] | Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Cash flow hedge | 3,046 | 4,489 |
Trust Swaps [Member] | Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Cash flow hedge | ' | ' |
Prime Loan Swaps [Member] | Recurring [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Cash flow hedge | 516 | ' |
Prime Loan Swaps [Member] | Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Cash flow hedge | ' | ' |
Prime Loan Swaps [Member] | Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Cash flow hedge | 516 | ' |
Prime Loan Swaps [Member] | Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Fair value of assets and liabilities measured on a recurring basis: | ' | ' |
Cash flow hedge | ' | ' |
FAIR_VALUE_MEASUREMENTS_Schedu1
FAIR VALUE MEASUREMENTS (Schedule of Financial Assets Measured at Fair Value on Nonrecurring Basis) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of financial assets measured at fair value on nonrecurring basis | ' | ' |
Loans held for sale | $53,185 | $167,698 |
Other real estate owned | 34,116 | 32,834 |
Fair Value, Measurements, Nonrecurring [Member] | ' | ' |
Schedule of financial assets measured at fair value on nonrecurring basis | ' | ' |
Loans held for sale | 53,185 | 167,698 |
Impaired loans | 7,985 | 30,104 |
Other real estate owned | 34,116 | 32,834 |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
Schedule of financial assets measured at fair value on nonrecurring basis | ' | ' |
Loans held for sale | ' | ' |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' | ' |
Schedule of financial assets measured at fair value on nonrecurring basis | ' | ' |
Loans held for sale | ' | ' |
Impaired loans | ' | ' |
Other real estate owned | ' | ' |
Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Schedule of financial assets measured at fair value on nonrecurring basis | ' | ' |
Loans held for sale | 53,185 | 167,698 |
Significant Other Observable Inputs Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' | ' |
Schedule of financial assets measured at fair value on nonrecurring basis | ' | ' |
Loans held for sale | 53,185 | 167,698 |
Impaired loans | ' | ' |
Other real estate owned | ' | ' |
Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Schedule of financial assets measured at fair value on nonrecurring basis | ' | ' |
Loans held for sale | ' | ' |
Significant Unobservable Inputs Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' | ' |
Schedule of financial assets measured at fair value on nonrecurring basis | ' | ' |
Loans held for sale | ' | ' |
Impaired loans | 7,985 | 30,104 |
Other real estate owned | $34,116 | $32,834 |
FAIR_VALUE_MEASUREMENTS_Summar
FAIR VALUE MEASUREMENTS (Summary of Quantitative Information About Level 3 Fair Value Measurements) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Discount applied to market comparables [Member] | Other real estate owned [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Weighted Average | 33.00% | [1] | 33.00% | [1] |
Market comparables [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Total | 42,101 | 62,938 | ||
Market comparables [Member] | Impaired loans [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Impaired loans | 7,985 | 30,104 | ||
Market comparables [Member] | Other real estate owned [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Other real estate owned | 34,116 | [1] | 32,834 | [1] |
Commercial Construction [Member] | Discount applied to market comparables [Member] | Impaired loans [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Weighted Average | 0.00% | [1] | 6.00% | [1] |
Commercial Construction [Member] | Market comparables [Member] | Impaired loans [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Impaired loans | 219 | [1] | 3,190 | [1] |
Commercial Real Estate - Owner Occupied [Member] | Discount applied to market comparables [Member] | Impaired loans [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Weighted Average | 17.00% | [1] | 13.00% | [1] |
Commercial Real Estate - Owner Occupied [Member] | Market comparables [Member] | Impaired loans [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Impaired loans | 2,043 | [1] | 2,001 | [1] |
Commercial Real Estate - Non-Owner Occupied [Member] | Discount applied to market comparables [Member] | Impaired loans [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Weighted Average | ' | 9.00% | [1] | |
Commercial Real Estate - Non-Owner Occupied [Member] | Market comparables [Member] | Impaired loans [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Impaired loans | ' | 13,100 | [1] | |
Raw Land and Lots [Member] | Discount applied to market comparables [Member] | Impaired loans [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Weighted Average | 10.00% | [1] | 6.00% | [1] |
Raw Land and Lots [Member] | Market comparables [Member] | Impaired loans [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Impaired loans | 908 | [1] | 7,300 | [1] |
Single Family Investment Real Estate [Member] | Discount applied to market comparables [Member] | Impaired loans [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Weighted Average | 0.00% | [1] | 6.00% | [1] |
Single Family Investment Real Estate [Member] | Market comparables [Member] | Impaired loans [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Impaired loans | 1,332 | [1] | 1,241 | [1] |
Commercial and Industrial [Member] | Discount applied to market comparables [Member] | Impaired loans [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Weighted Average | 28.00% | [1] | 23.00% | [1] |
Commercial and Industrial [Member] | Market comparables [Member] | Impaired loans [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Impaired loans | 1,719 | [1] | 1,810 | [1] |
Other Consumer [Member] | Discount applied to market comparables [Member] | Impaired loans [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Weighted Average | 0.00% | [1],[2] | 27.00% | [1],[2] |
Other Consumer [Member] | Market comparables [Member] | Impaired loans [Member] | ' | ' | ||
Summary of quantitative information about Level 3 Fair Value Measurements | ' | ' | ||
Impaired loans | 1,764 | [1],[2] | 1,462 | [1],[2] |
[1] | A discount percentage (in addition to expected selling costs) is applied based on age of independent appraisals, current market conditions, and experience within the local market. | |||
[2] | The "Other" category of the impaired loans section from the table above consists of Other Commercial, Mortgage, Consumer Construction, HELOCs, and Other Consumer. |
FAIR_VALUE_MEASUREMENTS_Carryi
FAIR VALUE MEASUREMENTS (Carrying Values and Estimated Fair Values of the Company's Financial Instruments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $73,023 | $82,902 |
Securities available for sale, at fair value | 677,348 | 585,382 |
Restricted stock | 26,036 | 20,687 |
Loans held for sale | 53,185 | 167,698 |
Net loans | 3,035,504 | 2,956,339 |
Asset, interest rate swap - loans | 33 | 18 |
Accrued interest receivable | 15,000 | 19,663 |
LIABILITIES | ' | ' |
Deposits | 3,238,777 | 3,309,149 |
Borrowings, Fair Value Disclosure | 443,237 | 309,019 |
Accrued interest payable | 902 | 1,414 |
Liability, interest rate swap - loans | 33 | 18 |
Carrying Value [Member] | ' | ' |
ASSETS | ' | ' |
Cash and cash equivalents | 73,023 | 82,902 |
Securities available for sale, at fair value | 677,348 | 585,382 |
Restricted stock | 26,036 | 20,687 |
Loans held for sale | 53,185 | 167,698 |
Net loans | 3,009,233 | 2,931,931 |
Asset, interest rate swap - loans | 33 | 18 |
Accrued interest receivable | 15,000 | 19,663 |
LIABILITIES | ' | ' |
Deposits | 3,236,843 | 3,297,767 |
Borrowings, Fair Value Disclosure | 463,314 | 329,395 |
Accrued interest payable | 902 | 1,414 |
Liability, interest rate swap - loans | 33 | 18 |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
ASSETS | ' | ' |
Cash and cash equivalents | 73,023 | 82,902 |
Securities available for sale, at fair value | ' | ' |
Restricted stock | ' | ' |
Loans held for sale | ' | ' |
Net loans | ' | ' |
Asset, interest rate swap - loans | ' | ' |
Accrued interest receivable | ' | ' |
LIABILITIES | ' | ' |
Deposits | ' | ' |
Borrowings, Fair Value Disclosure | ' | ' |
Accrued interest payable | ' | ' |
Liability, interest rate swap - loans | ' | ' |
Significant Other Observable Inputs Level 2 [Member] | ' | ' |
ASSETS | ' | ' |
Cash and cash equivalents | ' | ' |
Securities available for sale, at fair value | 677,348 | 585,382 |
Restricted stock | 26,036 | 20,687 |
Loans held for sale | 53,185 | 167,698 |
Net loans | ' | ' |
Asset, interest rate swap - loans | 33 | 18 |
Accrued interest receivable | 15,000 | 19,663 |
LIABILITIES | ' | ' |
Deposits | 3,238,777 | 3,309,149 |
Borrowings, Fair Value Disclosure | 443,237 | 309,019 |
Accrued interest payable | 902 | 1,414 |
Liability, interest rate swap - loans | 33 | 18 |
Significant Unobservable Inputs Level 3 [Member] | ' | ' |
ASSETS | ' | ' |
Cash and cash equivalents | ' | ' |
Securities available for sale, at fair value | ' | ' |
Restricted stock | ' | ' |
Loans held for sale | ' | ' |
Net loans | 3,035,504 | 2,956,339 |
Asset, interest rate swap - loans | ' | ' |
Accrued interest receivable | ' | ' |
LIABILITIES | ' | ' |
Deposits | ' | ' |
Borrowings, Fair Value Disclosure | ' | ' |
Accrued interest payable | ' | ' |
Liability, interest rate swap - loans | ' | ' |
Trust Swaps [Member] | ' | ' |
LIABILITIES | ' | ' |
Cash flow hedge | 3,046 | 4,489 |
Trust Swaps [Member] | Carrying Value [Member] | ' | ' |
LIABILITIES | ' | ' |
Cash flow hedge | 3,046 | 4,489 |
Trust Swaps [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
LIABILITIES | ' | ' |
Cash flow hedge | ' | ' |
Trust Swaps [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
LIABILITIES | ' | ' |
Cash flow hedge | 3,046 | 4,489 |
Trust Swaps [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
LIABILITIES | ' | ' |
Cash flow hedge | ' | ' |
Prime Loan Swaps [Member] | ' | ' |
LIABILITIES | ' | ' |
Cash flow hedge | 516 | ' |
Prime Loan Swaps [Member] | Carrying Value [Member] | ' | ' |
LIABILITIES | ' | ' |
Cash flow hedge | 516 | ' |
Prime Loan Swaps [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
LIABILITIES | ' | ' |
Cash flow hedge | ' | ' |
Prime Loan Swaps [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
LIABILITIES | ' | ' |
Cash flow hedge | 516 | ' |
Prime Loan Swaps [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
LIABILITIES | ' | ' |
Cash flow hedge | ' | ' |
EMPLOYEE_BENEFITS_Narrative_De
EMPLOYEE BENEFITS (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Deferred compensation plans obligation to Board of Directors | $903,000 | $957,000 | ' |
Deferred compensation plan expenses | 86,000 | 84,000 | 80,000 |
Salaries and benefit expense for incentive compensation | 939,000 | 835,000 | 711,000 |
Recognized stock-based compensation expense | 889,000 | 1,300,000 | 717,000 |
Recognized stock-based compensation expense, net of tax | 708,000 | 943,000 | 552,000 |
Stock-based compensation expense per common share | $0.04 | $0.05 | $0.02 |
Number of stock option awards exercised | 30 | 2 | ' |
Intrinsic value of stock options exercised | 268,000 | 7,400 | 88,000 |
Fair value of stock options exercised | 1,200,000 | 36,000 | ' |
Cash received from the exercise of stock options | 927,000 | 29,000 | 302,000 |
Fair value of stock options vested | 335,000 | 279,000 | 238,000 |
Restricted stock vesting percentage | 50.00% | ' | ' |
Intrinsic value of stock options outstanding | 3,500,000 | 623,000 | 1,000 |
Unamortized compensation costs | 3,300,000 | ' | ' |
Minimum [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Hours of service required for eligibility under plan | 1,000 | ' | ' |
1% through 3% [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Percentage of employer's match for 401(k) plan | 100.00% | ' | ' |
1% through 3% [Member] | Minimum [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Percentage of employee's gross pay for 401(k) plan | 1.00% | ' | ' |
1% through 3% [Member] | Maximum [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Percentage of employee's gross pay for 401(k) plan | 3.00% | ' | ' |
4% through 5% [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Percentage of employer's match for 401(k) plan | 50.00% | ' | ' |
4% through 5% [Member] | Minimum [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Percentage of employee's gross pay for 401(k) plan | 4.00% | ' | ' |
4% through 5% [Member] | Maximum [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Percentage of employee's gross pay for 401(k) plan | 5.00% | ' | ' |
401(K) Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Vesting period | '5 years | ' | ' |
ESOP Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Vesting period | '6 years | ' | ' |
Stock Option Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Tax benefit from exercise of equity-based awards | $54,000 | $2,600 | $15,000 |
2011 Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Vesting proportion per year | 20.00% | ' | ' |
Vesting period | '5 years | ' | ' |
Stock options term from the grant date | '10 years | ' | ' |
EMPLOYEE_BENEFITS_Payment_Made
EMPLOYEE BENEFITS (Payment Made For Employee Benefit Plans) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Parent Company [Member] | ' | ' | ' |
Payments made to Employees [Line Items] | ' | ' | ' |
Total | $4,258 | $3,637 | $3,389 |
Parent Company [Member] | 401(K) Plan [Member] | ' | ' | ' |
Payments made to Employees [Line Items] | ' | ' | ' |
Total | 2,002 | 1,427 | 1,374 |
Parent Company [Member] | ESOP Plan [Member] | ' | ' | ' |
Payments made to Employees [Line Items] | ' | ' | ' |
Total | 1,774 | 1,896 | 1,700 |
Parent Company [Member] | Cash [Member] | ' | ' | ' |
Payments made to Employees [Line Items] | ' | ' | ' |
Total | 482 | 314 | 315 |
Union Mortgage Group, Inc., ("UMG") [Member] | ' | ' | ' |
Payments made to Employees [Line Items] | ' | ' | ' |
Total | 569 | 588 | 355 |
Union Mortgage Group, Inc., ("UMG") [Member] | 401(K) Plan [Member] | ' | ' | ' |
Payments made to Employees [Line Items] | ' | ' | ' |
Total | $569 | $588 | $355 |
EMPLOYEE_BENEFITS_Summary_of_S
EMPLOYEE BENEFITS (Summary of Shares Available in Each Plan) (Details) (2011 Plan [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
2011 Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Beginning Authorization | 1,000,000 |
Granted | -387,594 |
Expired, forfeited, or cancelled | 26,857 |
Remaining available for grant | 639,263 |
EMPLOYEE_BENEFITS_Summary_of_S1
EMPLOYEE BENEFITS (Summary of Stock Option Activity) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Summary of stock option activity | ' | ' | ' | ' |
Number of Stock Options, Outstanding beginning balance | 500,578 | 422,750 | 324,776 | ' |
Weighted Average Exercise Price, Outstanding beginning balance | $16.92 | $17.70 | $19.38 | ' |
Number of Stock Options, Outstanding ending balance | 402,946 | 500,578 | 422,750 | ' |
Weighted Average Exercise Price, Outstanding ending balance | $16.48 | $16.92 | $17.70 | ' |
Number of Stock Options, Granted | 0 | 131,657 | 134,046 | ' |
Weighted Average Exercise Price, Granted | ' | $14.40 | $12.11 | ' |
Number of Stock Options, Exercised | -50,119 | -2,376 | -29,625 | ' |
Weighted Average Exercise Price, Exercised | $18.45 | $12.11 | $10.21 | ' |
Number of Stock Options, Forfeited | -47,513 | -51,453 | -6,447 | ' |
Weighted Average Exercise Price, Forfeited | $19.04 | $17.11 | $17.22 | ' |
Number of Stock Options, Exercisable | 200,904 | 218,825 | 184,985 | 183,544 |
Weighted Average Exercise Price, Options exercisable | $18.96 | $20.59 | $22.28 | $20.90 |
EMPLOYEE_BENEFITS_Summary_of_t
EMPLOYEE BENEFITS (Summary of the Options Outstanding) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Range | $12.11 |
Range of Exercise Prices, Upper Range | $31.57 |
Number Outstanding | 402,946 |
Weighted Average Remaining Contractual Life | '6 years 1 month 2 days |
Options Outstanding, Weighted Average Exercise Price | $16.48 |
Number Exercisable | 200,904 |
Options Exercisable, Weighted Average Exercise Price | $18.96 |
Range One [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Upper Range | $12.11 |
Number Outstanding | 113,045 |
Weighted Average Remaining Contractual Life | '6 years 10 months 13 days |
Options Outstanding, Weighted Average Exercise Price | $12.11 |
Number Exercisable | 45,044 |
Options Exercisable, Weighted Average Exercise Price | $12.11 |
Range Two [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Range | $12.59 |
Range of Exercise Prices, Upper Range | $14.08 |
Number Outstanding | 4,558 |
Weighted Average Remaining Contractual Life | '5 years 9 months |
Options Outstanding, Weighted Average Exercise Price | $13.18 |
Number Exercisable | 3,188 |
Options Exercisable, Weighted Average Exercise Price | $13.10 |
Range Three [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Upper Range | $14.40 |
Number Outstanding | 114,887 |
Weighted Average Remaining Contractual Life | '8 years 1 month 24 days |
Options Outstanding, Weighted Average Exercise Price | $14.40 |
Number Exercisable | 21,569 |
Options Exercisable, Weighted Average Exercise Price | $14.40 |
Range Four [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Upper Range | $14.82 |
Number Outstanding | 1,000 |
Weighted Average Remaining Contractual Life | '6 years 5 months 1 day |
Options Outstanding, Weighted Average Exercise Price | $14.82 |
Number Exercisable | 600 |
Options Exercisable, Weighted Average Exercise Price | $14.82 |
Range Five [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Upper Range | $16.45 |
Number Outstanding | 91,088 |
Weighted Average Remaining Contractual Life | '6 years 3 months 26 days |
Options Outstanding, Weighted Average Exercise Price | $16.45 |
Number Exercisable | 52,135 |
Options Exercisable, Weighted Average Exercise Price | $16.45 |
Range Six [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Range | $20.41 |
Range of Exercise Prices, Upper Range | $22.65 |
Number Outstanding | 22,335 |
Weighted Average Remaining Contractual Life | '8 months 19 days |
Options Outstanding, Weighted Average Exercise Price | $22.29 |
Number Exercisable | 22,335 |
Options Exercisable, Weighted Average Exercise Price | $22.29 |
Range Seven [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Upper Range | $23.50 |
Number Outstanding | 17,813 |
Weighted Average Remaining Contractual Life | '1 year 26 days |
Options Outstanding, Weighted Average Exercise Price | $23.50 |
Number Exercisable | 17,813 |
Options Exercisable, Weighted Average Exercise Price | $23.50 |
Range Eight [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Upper Range | $27.51 |
Number Outstanding | 3,750 |
Weighted Average Remaining Contractual Life | '1 year 6 months 29 days |
Options Outstanding, Weighted Average Exercise Price | $27.51 |
Number Exercisable | 3,750 |
Options Exercisable, Weighted Average Exercise Price | $27.51 |
Range Nine [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Upper Range | $27.62 |
Number Outstanding | 15,995 |
Weighted Average Remaining Contractual Life | '3 years 1 month 24 days |
Options Outstanding, Weighted Average Exercise Price | $27.62 |
Number Exercisable | 15,995 |
Options Exercisable, Weighted Average Exercise Price | $27.62 |
Range Ten [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Upper Range | $31.57 |
Number Outstanding | 18,475 |
Weighted Average Remaining Contractual Life | '2 years 1 month 24 days |
Options Outstanding, Weighted Average Exercise Price | $31.57 |
Number Exercisable | 18,475 |
Options Exercisable, Weighted Average Exercise Price | $31.57 |
EMPLOYEE_BENEFITS_Estimated_St
EMPLOYEE BENEFITS (Estimated Stock Option on the Date of Grant Fair Value) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Estimated stock option on the date of grant fair value | ' | ' | ' | |||
Dividend yield | ' | 2.47% | [1] | 2.36% | [1] | |
Expected life in years | '0 years | [2] | '7 years | [2] | '7 years | [2] |
Expected volatility | ' | 41.53% | [3] | 41.02% | [3] | |
Risk-free interest rate | ' | 1.24% | [4] | 2.71% | [4] | |
Weighted average fair value per option granted | ' | $4.76 | $4.31 | |||
[1] | Calculated as the ratio of historical dividends paid per share of common stock to the stock price on the date of grant. | |||||
[2] | Based on the average of the contractual life and vesting schedule for the respective option. | |||||
[3] | Based on the monthly historical volatility of the Companybs stock price over the expected life of the options. | |||||
[4] | Based upon the U.S. Treasury bill yield curve, for periods within the contractual life of the option, in effect at the time of grant. |
EMPLOYEE_BENEFITS_Summary_of_I
EMPLOYEE BENEFITS (Summary of Information Concerning Stock Options) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Summary of information concerning stock options | ' |
Stock Options Vested or Expected to Vest, Stock options | 393,582 |
Stock options, Exercisable | 200,904 |
Stock Options Vested or Expected to Vest, Weighted average remaining contractual life in years | '6 years 18 days |
Weighted average remaining contractual life in years, Exercisable | '4 years 8 months 1 day |
Stock Options Vested or Expected to Vest, Weighted average exercise price on shares above water | $15.12 |
Weighted average exercise price on shares above water, Exercisable | $16.48 |
Stock Options Vested or Expected to Vest, Aggregate intrinsic value | $3,433,532 |
Aggregate intrinsic value, Exercisable | $1,355,386 |
EMPLOYEE_BENEFITS_Summary_of_N
EMPLOYEE BENEFITS (Summary of Nonvested Stock Activity) (Details) (Restricted Stock [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Stock [Member] | ' |
Summary of nonvested stock activity | ' |
Number of Shares, beginning balance | 187,700 |
Weighted Average Grant-Date Fair Value, beginning balance | $13.15 |
Number of Shares, Granted | 126,172 |
Weighted Average Grant-Date Fair Value, Granted | $18.80 |
Number of Shares, Vested | -19,763 |
Weighted Average Grant-Date Fair Value, Vested | $13.26 |
Number of Shares, Forfeited | -33,346 |
Weighted Average Grant-Date Fair Value, Forfeited | $15.22 |
Number of Shares, ending balance | 260,763 |
Weighted Average Grant-Date Fair Value, ending balance | $16.47 |
EMPLOYEE_BENEFITS_Estimated_Un
EMPLOYEE BENEFITS (Estimated Unamortized Compensation Expense Recognized in Future) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Estimated unamortized compensation expense recognized in future | ' |
For year ending December 31, 2014 | $1,509 |
For year ending December 31, 2015 | 1,201 |
For year ending December 31, 2016 | 485 |
For year ending December 31, 2017 | 71 |
Total | 3,266 |
Stock Options [Member] | ' |
Estimated unamortized compensation expense recognized in future | ' |
For year ending December 31, 2014 | 315 |
For year ending December 31, 2015 | 241 |
For year ending December 31, 2016 | 143 |
For year ending December 31, 2017 | 27 |
Total | 726 |
Restricted Stock [Member] | ' |
Estimated unamortized compensation expense recognized in future | ' |
For year ending December 31, 2014 | 1,194 |
For year ending December 31, 2015 | 960 |
For year ending December 31, 2016 | 342 |
For year ending December 31, 2017 | 44 |
Total | $2,540 |
OTHER_OPERATING_EXPENSES_Summa
OTHER OPERATING EXPENSES (Summary of Other Operating Expenses) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Other Operating Expenses | ' | ' | ' | |||
Printing, postage, and supplies | $2,970 | $2,649 | $2,179 | |||
Communications expense | 2,681 | 3,070 | 2,931 | |||
Technology and data processing | 7,754 | 7,510 | 7,795 | |||
Professional services | 3,419 | 3,035 | 2,989 | |||
Marketing and advertising expense | 4,312 | 5,473 | 5,869 | |||
FDIC assessment premiums and other insurance | 3,110 | 2,373 | 4,936 | |||
Other taxes | 3,181 | 3,017 | 2,838 | |||
Loan related expenses | 2,447 | 2,254 | 2,058 | |||
OREO and credit-related expenses | 4,880 | [1] | 4,639 | [1] | 5,668 | [1] |
Amortization of intangible assets | 3,831 | 5,336 | 6,522 | |||
Acquisition and conversion costs | 2,132 | ' | 426 | |||
Other expenses | 7,776 | 6,074 | 5,715 | |||
Total other operating expenses | $48,493 | $45,430 | $49,926 | |||
[1] | OREO related costs include foreclosure related expenses, gains/losses on the sale of OREO, valuation reserves, and asset resolution related legal expenses. |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
INCOME TAXES [Abstract] | ' | ' | ' |
Deferred tax assets, valuation allowance | $828,000 | ' | ' |
Effective income taxes | 26.60% | 28.80% | 27.10% |
Tax credits | $306,000 | $217,000 | $203,000 |
INCOME_TAXES_Schedule_of_Defer
INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Allowance for loan losses | $10,657 | $12,221 |
Benefit plans | 1,385 | 1,429 |
Nonaccrual loans | 983 | 1,148 |
Purchase accounting | 2,252 | 2,980 |
Stock grants | 1,379 | 1,232 |
Other real estate owned | 3,282 | 2,709 |
Securities available for sale, deferred tax asset | 901 | ' |
Other | 1,777 | 1,018 |
Total deferred tax assets | 22,616 | 22,737 |
Deferred tax liabilities: | ' | ' |
Purchase accounting | 5,232 | 6,057 |
Securities available for sale | ' | 6,101 |
Other | 747 | 899 |
Total deferred tax liabilities | 5,979 | 13,057 |
Net deferred tax asset | $16,637 | $9,680 |
INCOME_TAXES_Provision_for_Inc
INCOME TAXES (Provision for Income Taxes Charged to Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
INCOME TAXES [Abstract] | ' | ' | ' |
Current tax expense | $12,251 | $14,528 | $11,879 |
Deferred tax expense (benefit) | 262 | -195 | -615 |
Income tax expense | $12,513 | $14,333 | $11,264 |
INCOME_TAXES_Schedule_of_Incom
INCOME TAXES (Schedule of Income Tax Expense, Difference in Income Tax Rate to Pretax Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
INCOME TAXES [Abstract] | ' | ' | ' |
Computed "expected" tax expense | $16,453 | $17,411 | $14,600 |
Tax-exempt interest income, net | -3,308 | -2,614 | -2,681 |
Other, net | -632 | -464 | -655 |
Income tax expense | $12,513 | $14,333 | $11,264 |
EARNINGS_PER_SHARE_Narrative_D
EARNINGS PER SHARE (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
EARNINGS PER SHARE [Abstract] | ' | ' | ' |
Anti-dilutive stock awards | 104,126 | 309,952 | 383,101 |
EARNINGS_PER_SHARE_Reconcileme
EARNINGS PER SHARE (Reconcilement of the Denominators of the Basic and Diluted EPS Computations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconcilement of the denominators of the basic and diluted EPS computations | ' | ' | ' |
Basic EPS, Net Income Available to Common Stockholders (Numerator) | $34,496 | $35,411 | $27,769 |
Basic EPS, Weighted Average Shares (Denominator) | 24,975 | 25,872 | 25,981 |
Basic EPS, Per Share Amount | $1.38 | $1.37 | $1.07 |
Effect of dilutive stock awards, Weighted Average Shares (Denominator) | 56 | 29 | 29 |
Diluted EPS, Net Income Available to Common Stockholders (Numerator) | $34,496 | $35,411 | $27,769 |
Diluted EPS, Weighted Average Common Shares | 25,031 | 25,901 | 26,010 |
Diluted EPS, Per Share Amount | $1.38 | $1.37 | $1.07 |
SEGMENT_REPORTING_DISCLOSURES_1
SEGMENT REPORTING DISCLOSURES (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
entity | |
segment | |
item | |
Segment Reporting Information [Line Items] | ' |
Number of reportable segments | 2 |
Number of retail locations | 90 |
Number of subsidiary bank | 1 |
Mortgage banking segment interest - floor | 2.00% |
Number of mortgage company | 1 |
LIBOR [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Three-month LIBOR rate plus | 1.50% |
SEGMENT_REPORTING_DISCLOSURES_2
SEGMENT REPORTING DISCLOSURES (Information About Reportable Segments and Reconciliation) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Information about reportable segments and reconciliation | ' | ' | ' |
Net interest income | $151,626,000 | $154,355,000 | $156,360,000 |
Provision for loan losses | 6,056,000 | 12,200,000 | 16,800,000 |
Net interest income after provision for loan losses | 145,570,000 | 142,155,000 | 139,560,000 |
Noninterest income | 38,728,000 | 41,068,000 | 32,964,000 |
Noninterest expenses | 137,289,000 | 133,479,000 | 130,815,000 |
Income before income taxes | 47,009,000 | 49,744,000 | 41,709,000 |
Income tax expense | 12,513,000 | 14,333,000 | 11,264,000 |
Net income | 34,496,000 | 35,411,000 | 30,445,000 |
Total assets | 4,176,571,000 | 4,095,865,000 | 3,907,087,000 |
Community Bank [Member] | ' | ' | ' |
Information about reportable segments and reconciliation | ' | ' | ' |
Net interest income | 149,975,000 | 153,024,000 | 155,045,000 |
Provision for loan losses | 6,056,000 | 12,200,000 | 16,800,000 |
Net interest income after provision for loan losses | 143,919,000 | 140,824,000 | 138,245,000 |
Noninterest income | 27,492,000 | 24,876,000 | 22,382,000 |
Noninterest expenses | 120,256,000 | 119,976,000 | 121,490,000 |
Income before income taxes | 51,155,000 | 45,724,000 | 39,137,000 |
Income tax expense | 14,000,000 | 12,858,000 | 10,304,000 |
Net income | 37,155,000 | 32,866,000 | 28,833,000 |
Total assets | 4,170,682,000 | 4,081,544,000 | 3,904,013,000 |
Mortgage [Member] | ' | ' | ' |
Information about reportable segments and reconciliation | ' | ' | ' |
Net interest income | 1,651,000 | 1,331,000 | 1,315,000 |
Net interest income after provision for loan losses | 1,651,000 | 1,331,000 | 1,315,000 |
Noninterest income | 11,906,000 | 16,660,000 | 11,050,000 |
Noninterest expenses | 17,703,000 | 13,971,000 | 9,793,000 |
Income before income taxes | -4,146,000 | 4,020,000 | 2,572,000 |
Income tax expense | -1,487,000 | 1,475,000 | 960,000 |
Net income | -2,659,000 | 2,545,000 | 1,612,000 |
Total assets | 63,715,000 | 187,836,000 | 84,445,000 |
Eliminations [Member] | ' | ' | ' |
Information about reportable segments and reconciliation | ' | ' | ' |
Noninterest income | -670,000 | -468,000 | -468,000 |
Noninterest expenses | -670,000 | -468,000 | -468,000 |
Total assets | ($57,826,000) | ($173,515,000) | ($81,371,000) |
RELATED_PARTY_TRANSACTIONS_Nar
RELATED PARTY TRANSACTIONS (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2012 | Feb. 29, 2012 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Deposit accounts | $22,200,000 | ' | ' | $22,200,000 | $22,200,000 | ' |
Authorized shares for repurchase | 750,000 | ' | ' | 250,000 | 750,000 | ' |
Stock purchased under stock repurchase plan, shares | ' | 335,649 | 500,000 | 500,000 | 970,265 | ' |
Stock repurchased, aggregate purchase price | ' | 4,363,437 | 9,500,000 | 9,499,000 | 14,445,000 | 35,595,000 |
Stock repurchased, purchase price per share | $15.44 | $13 | $19 | ' | ' | ' |
Markel Corporation [Member] | ' | ' | ' | ' | ' | ' |
Stock purchased under stock repurchase plan, shares | 750,000 | ' | 500,000 | ' | ' | ' |
Stock repurchased, aggregate purchase price | $11,580,000 | ' | $9,500,000 | ' | ' | ' |
Stock repurchased, purchase price per share | $15.44 | ' | $19 | ' | ' | ' |
RELATED_PARTY_TRANSACTIONS_Sch
RELATED PARTY TRANSACTIONS (Schedule of Loans and Leases Receivable, Related Parties) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | ||
RELATED PARTY TRANSACTIONS [Abstract] | ' | ' | |
Loans outstanding at January 1 | $51,543,000 | $29,416,000 | |
New loans and advances | 8,496,000 | 29,132,000 | |
Loan repayments | -7,440,000 | -7,005,000 | |
Reclassification | -17,716,000 | [1] | ' |
Balance at December 31 | 34,883,000 | 51,543,000 | |
Loans to related party | $17,500,000 | ' | |
[1] | Primarily loans of $17.5 million to two former directors who retired from the Board in April 2013 and loans to other persons no longer considered related party or loans that were not considered related party in 2012 that subsequently became related party loans in 2013 |
PARENT_COMPANY_FINANCIAL_INFOR2
PARENT COMPANY FINANCIAL INFORMATION (Narrative) (Details) (Parent Company [Member], USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Parent Company [Member] | ' |
Aggregate amount of unrestricted funds transferred | $46.80 |
Aggregate percentage of unrestricted funds transferred | 10.70% |
PARENT_COMPANY_FINANCIAL_INFOR3
PARENT COMPANY FINANCIAL INFORMATION (Financial Information for the Parent Company - Balance Sheets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
ASSETS | ' | ' | ' | ' |
Cash | $73,023,000 | $82,902,000 | $96,659,000 | $61,153,000 |
Bank premises and equipment, net | 82,815,000 | 85,409,000 | ' | ' |
Other assets | 149,435,000 | 113,844,000 | ' | ' |
Total assets | 4,176,571,000 | 4,095,865,000 | 3,907,087,000 | ' |
LIABILITIES & STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Long-term borrowings | 139,049,000 | 136,815,000 | ' | ' |
Trust preferred capital notes | 60,310,000 | 60,310,000 | ' | ' |
Other liabilities | 38,176,000 | 32,840,000 | ' | ' |
Total liabilities | 3,738,332,000 | 3,660,002,000 | ' | ' |
Common stock | 33,020,000 | 33,510,000 | ' | ' |
Surplus | 170,770,000 | 176,635,000 | ' | ' |
Retained earnings | 236,639,000 | 215,634,000 | ' | ' |
Accumulated other comprehensive (loss) income | -2,190,000 | 10,084,000 | 9,650,000 | 3,571,000 |
Total stockholders' equity | 438,239,000 | 435,863,000 | 421,639,000 | 428,085,000 |
Total liabilities and stockholders' equity | 4,176,571,000 | 4,095,865,000 | ' | ' |
Parent Company [Member] | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash | 10,092,000 | 6,505,000 | 7,275,000 | 29,217,000 |
Bank premises and equipment, net | 12,673,000 | 13,141,000 | ' | ' |
Other assets | 6,662,000 | 4,593,000 | ' | ' |
Investment in subsidiaries | 486,168,000 | 490,199,000 | ' | ' |
Total assets | 515,595,000 | 514,438,000 | ' | ' |
LIABILITIES & STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Long-term borrowings | 8,750,000 | 9,375,000 | ' | ' |
Trust preferred capital notes | 60,310,000 | 60,310,000 | ' | ' |
Other liabilities | 8,296,000 | 8,890,000 | ' | ' |
Total liabilities | 77,356,000 | 78,575,000 | ' | ' |
Common stock | 33,020,000 | 33,510,000 | ' | ' |
Surplus | 170,770,000 | 176,635,000 | ' | ' |
Retained earnings | 236,639,000 | 215,634,000 | ' | ' |
Accumulated other comprehensive (loss) income | -2,190,000 | 10,084,000 | ' | ' |
Total stockholders' equity | 438,239,000 | 435,863,000 | ' | ' |
Total liabilities and stockholders' equity | $515,595,000 | $514,438,000 | ' | ' |
PARENT_COMPANY_FINANCIAL_INFOR4
PARENT COMPANY FINANCIAL INFORMATION (Financial Information for the Parent Company - Statements of Income) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income: | ' | ' | ' |
Interest and dividend income | $172,127,000 | $181,863,000 | $189,073,000 |
Gains on securities transactions, net | 21,000 | 190,000 | 913,000 |
Other operating income | 5,346,000 | 4,294,000 | 3,833,000 |
Expenses: | ' | ' | ' |
Interest expense | 20,501,000 | 27,508,000 | 32,713,000 |
Salaries and benefits | 70,369,000 | 68,648,000 | 62,865,000 |
Occupancy expenses | 11,543,000 | 12,150,000 | 11,104,000 |
Furniture and equipment expenses | 6,884,000 | 7,251,000 | 6,920,000 |
Other operating expenses | 48,493,000 | 45,430,000 | 49,926,000 |
Net income | 34,496,000 | 35,411,000 | 30,445,000 |
Dividends paid on preferred stock | ' | ' | 1,499,000 |
Amortization of discount on preferred stock | ' | ' | 1,177,000 |
Net income available to common stockholders | 34,496,000 | 35,411,000 | 27,769,000 |
Parent Company [Member] | ' | ' | ' |
Income: | ' | ' | ' |
Interest and dividend income | 6,000 | 8,000 | 624,000 |
Dividends received from subsidiaries | 31,323,000 | 23,141,000 | 8,612,000 |
Equity in undistributed net income from subsidiaries | 7,685,000 | 15,158,000 | 23,941,000 |
Gains on securities transactions, net | ' | ' | 430,000 |
Gains (losses) on sale of fixed assets, net | ' | ' | -1,000 |
Other operating income | 1,155,000 | 1,155,000 | 1,616,000 |
Total income | 40,169,000 | 39,462,000 | 35,222,000 |
Expenses: | ' | ' | ' |
Interest expense | 3,060,000 | 3,152,000 | 2,627,000 |
Occupancy expenses | 583,000 | 586,000 | 590,000 |
Furniture and equipment expenses | ' | ' | 1,023,000 |
Other operating expenses | 2,030,000 | 313,000 | 537,000 |
Total expenses | 5,673,000 | 4,051,000 | 4,777,000 |
Net income | 34,496,000 | 35,411,000 | 30,445,000 |
Dividends paid on preferred stock | ' | ' | 1,499,000 |
Amortization of discount on preferred stock | ' | ' | 1,177,000 |
Net income available to common stockholders | $34,496,000 | $35,411,000 | $27,769,000 |
PARENT_COMPANY_FINANCIAL_INFOR5
PARENT COMPANY FINANCIAL INFORMATION (Financial Information for the Parent Company - Statements of Cash Flows) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Operating activities: | ' | ' | ' | |||
Net income | $34,496,000 | $35,411,000 | $30,445,000 | |||
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities: | ' | ' | ' | |||
Depreciation of bank premises and equipment | 6,024,000 | 6,631,000 | 6,715,000 | |||
Gains on the sale of investment securities | -21,000 | -190,000 | -913,000 | |||
Issuance of common stock grants for services | 477,000 | 565,000 | 657,000 | |||
Decrease (increase) in other assets | -27,422,000 | -2,173,000 | -3,089,000 | |||
Net (decrease) increase in other liabilities | 6,263,000 | 987,000 | -2,160,000 | |||
Net cash and cash equivalents provided by (used in) operating activities | 157,029,000 | -21,991,000 | 71,048,000 | |||
Investing activities: | ' | ' | ' | |||
Sale of securities available for sale | 43,354,000 | 18,944,000 | 28,800,000 | |||
Net decrease (increase) in bank premises and equipment | -4,759,000 | -2,102,000 | -5,466,000 | |||
Payments for equity method investment | -2,000,000 | ' | ' | |||
Net cash and cash equivalents used in investing activities | -218,690,000 | -141,699,000 | -17,892,000 | |||
Financing activities: | ' | ' | ' | |||
Net decrease in long-term borrowings | 2,234,000 | [1] | -18,566,000 | [1] | 489,000 | [1] |
Cash dividends paid | -12,535,000 | -8,969,000 | -7,284,000 | |||
Repurchase of preferred stock | ' | ' | -35,595,000 | |||
Net Issuance (repurchase) of common stock | 927,000 | 31,000 | 574,000 | |||
Net cash and cash equivalents provided by (used in) financing activities | 51,782,000 | 149,933,000 | -17,650,000 | |||
Cash and Cash Equivalents, Period Increase (Decrease) | -9,879,000 | -13,757,000 | 35,506,000 | |||
Cash and cash equivalents at beginning of the period | 82,902,000 | 96,659,000 | 61,153,000 | |||
Cash and cash equivalents at end of the period | 73,023,000 | 82,902,000 | 96,659,000 | |||
Parent Company [Member] | ' | ' | ' | |||
Operating activities: | ' | ' | ' | |||
Net income | 34,496,000 | 35,411,000 | 30,445,000 | |||
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities: | ' | ' | ' | |||
Equity in undistributed net income from subsidiaries | -7,685,000 | -15,158,000 | -23,941,000 | |||
Depreciation of bank premises and equipment | 468,000 | 473,000 | 1,089,000 | |||
Gains on the sale of investment securities | ' | ' | -430,000 | |||
Tax benefit from exercise of equity-based awards | ' | ' | 15,000 | |||
Issuance of common stock grants for services | 477,000 | 565,000 | 564,000 | |||
Decrease (increase) in other assets | -2,069,000 | -756,000 | 811,000 | |||
Net (decrease) increase in other liabilities | 1,737,000 | 2,781,000 | 1,744,000 | |||
Net cash and cash equivalents provided by (used in) operating activities | 27,424,000 | 23,316,000 | 10,297,000 | |||
Investing activities: | ' | ' | ' | |||
Sale of securities available for sale | ' | ' | 13,588,000 | |||
Net decrease (increase) in bank premises and equipment | ' | -23,000 | 1,455,000 | |||
Payments for equity method investment | -2,000,000 | ' | ' | |||
Payments for investments in and advances to subsidiaries. | ' | ' | -2,391,000 | |||
Net cash and cash equivalents used in investing activities | -2,000,000 | -23,000 | 12,652,000 | |||
Financing activities: | ' | ' | ' | |||
Net decrease in long-term borrowings | -625,000 | -625,000 | -625,000 | |||
Cash dividends paid | -12,535,000 | -8,969,000 | -9,245,000 | |||
Repurchase of preferred stock | ' | ' | -35,595,000 | |||
Net Issuance (repurchase) of common stock | -8,677,000 | -14,469,000 | 574,000 | |||
Net cash and cash equivalents provided by (used in) financing activities | -21,837,000 | -24,063,000 | -44,891,000 | |||
Cash and Cash Equivalents, Period Increase (Decrease) | 3,587,000 | -770,000 | -21,942,000 | |||
Cash and cash equivalents at beginning of the period | 6,505,000 | 7,275,000 | 29,217,000 | |||
Cash and cash equivalents at end of the period | $10,092,000 | $6,505,000 | $7,275,000 | |||
[1] | See Note 7 "Borrowings" related to 2013 activity. |
SUBSEQUENT_EVENTS_Narrative_De
SUBSEQUENT EVENTS (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jan. 30, 2014 | Jan. 02, 2014 | Jan. 02, 2014 | Jan. 02, 2014 | Jan. 09, 2013 | Mar. 06, 2014 |
Subsequent Event [Member] | Subsequent Event [Member] | StellarOne Bank [Member] | StellarOne Bank [Member] | Virginia National Bankshares [Member] | Virginia National Bankshares [Member] | |||||
Acquisition Date, January 1, 2014 [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||||
site | Acquisition Date, January 1, 2014 [Member] | Performing Financing Receivable [Member] | ||||||||
Acquisition Date, January 1, 2014 [Member] | ||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares equivalent to each share of acquired entity | ' | ' | ' | ' | ' | ' | 0.9739 | ' | ' | ' |
Number of common shares issued | ' | ' | ' | ' | ' | ' | 22,147,874 | ' | ' | ' |
Acquired performing loans, Fair value | ' | ' | ' | ' | ' | ' | ' | $2,100,000,000 | ' | ' |
Value of Company common stock issued | ' | ' | ' | ' | ' | ' | 549,488,000 | ' | ' | ' |
Acquired performing loans, principal and interest payments receivable | ' | ' | ' | ' | ' | ' | ' | 2,500,000,000 | ' | ' |
Number of overlapping bank branches | ' | ' | ' | ' | ' | 13 | ' | ' | ' | ' |
Acquired performing loans not expected to be collected | ' | ' | ' | ' | ' | ' | 35,400,000 | ' | ' | ' |
Fair value of loans acquired with a deterioration of credit quality | 3,622,000 | 4,565,000 | 9,897,000 | ' | ' | ' | 137,604,000 | ' | ' | ' |
Financing receivables acquired allowance for credit losses | 30,135,000 | 34,916,000 | 39,470,000 | 38,406,000 | ' | ' | 0 | ' | ' | ' |
Stock Repurchase Program, Authorized Amount | ' | ' | ' | ' | 65,000,000 | ' | ' | ' | ' | ' |
Number of shares acquired under forbearance agreement | ' | ' | ' | ' | ' | ' | ' | ' | 190,152.50 | ' |
Value of shares acquired under forbearance agreement | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | ' |
Aggregate value of acquired shares sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,800,000 |
Carry-over for allowance for credit losses | $30,135,000 | $34,916,000 | $39,470,000 | $38,406,000 | ' | ' | $0 | ' | ' | ' |
SUBSEQUENT_EVENTS_Schedule_of_
SUBSEQUENT EVENTS (Schedule of Business Acquisition and the Amounts of Acquired Identifiable Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 02, 2014 | |
In Thousands, except Share data, unless otherwise specified | Acquisition Date, January 1, 2014 [Member] | |||
Subsequent Event [Member] | ||||
StellarOne Bank [Member] | ||||
Fair value of assets acquired: | ' | ' | ' | |
Cash and cash equivalents | ' | ' | $49,989 | |
Securities available for sale | ' | ' | 460,892 | |
Loans held for sale | ' | ' | 10,922 | |
Loans | ' | ' | 2,239,616 | |
Bank premise and equipment | ' | ' | 80,480 | |
OREO | ' | ' | 4,319 | |
Core deposit intangible | ' | ' | 29,570 | |
Other assets | ' | ' | 95,397 | |
Total assets | ' | ' | 2,971,185 | |
Fair value of liabilities assumed: | ' | ' | ' | |
Deposits | ' | ' | 2,479,874 | |
Short-term borrowings | ' | ' | 4,227 | |
Long-term borrowings | ' | ' | 118,154 | |
Subordinated debt | ' | ' | 25,543 | |
Other Liabilities | ' | ' | 22,576 | |
Total liabilities | ' | ' | 2,650,374 | |
Net identifiable assets acquired | ' | ' | 320,811 | |
Preliminary pro forma goodwill | 59,400 | 59,400 | 228,711 | [1] |
Net assets acquired | ' | ' | 549,522 | |
Number of common shares issued | ' | ' | 22,147,874 | |
Purchase price per share of the Company's common stock | ' | ' | $24.81 | [2] |
Value of Company common stock issued | ' | ' | 549,488 | |
Value of stock options outstanding | ' | ' | 34 | |
Fair value of total consideration transferred | ' | ' | $549,522 | |
[1] | No goodwill is expected to be deductible for federal income tax purposes. The goodwill will be primarily allocated to the community bank segment. | |||
[2] | The value of the shares of common stock exchanged with StellarOne shareholders was based upon the closing price of the Company's common stock at December 31, 2013, the last trading day prior to the date of acquisition. |
SUBSEQUENT_EVENTS_Acquired_Imp
SUBSEQUENT EVENTS (Acquired Impaired Loans Receivable) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 02, 2014 |
In Thousands, unless otherwise specified | Acquisition Date, January 1, 2014 [Member] | |||
Subsequent Event [Member] | ||||
StellarOne Bank [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Contractually required principal and interest payments | ' | ' | ' | $204,503 |
Nonaccretable difference | ' | ' | ' | -33,853 |
Cash flows expected to be collected | ' | ' | ' | 170,650 |
Accretable difference | ' | ' | ' | -33,046 |
Fair value of loans acquired with a deterioration of credit quality | $3,622 | $4,565 | $9,897 | $137,604 |
SUBSEQUENT_EVENTS_Business_Acq
SUBSEQUENT EVENTS (Business Acquisition, Pro Forma Information) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
SUBSEQUENT EVENTS [Abstract] | ' | ' |
Total revenues (net interest income plus noninterest income) | $320,162 | $333,684 |
Net income | $56,223 | $57,809 |