Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Jun. 30, 2013 | Feb. 14, 2014 | Feb. 14, 2014 | |
Class A Common Stock | Class B Common Stock | |||
Entity Registrant Name | 'REPUBLIC BANCORP INC /KY/ | ' | ' | ' |
Entity Central Index Key | '0000921557 | ' | ' | ' |
Document Type | '10-K | ' | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' | ' |
Entity Voluntary Filers | 'No | ' | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' | ' |
Entity Public Float | ' | $215,806,321 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | ' | 18,544,745 | 2,259,926 |
Document Fiscal Year Focus | '2013 | ' | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $170,863 | $137,691 |
Securities available for sale | 432,893 | 438,246 |
Securities held to maturity (fair value of $50,768 in 2013 and $46,416 in 2012) | 50,644 | 46,010 |
Mortgage loans held for sale, at fair value | 3,506 | 10,614 |
Loans | 2,589,792 | 2,650,197 |
Allowance for loan losses | -23,026 | -23,729 |
Loans, net | 2,566,766 | 2,626,468 |
Federal Home Loan Bank stock, at cost | 28,342 | 28,377 |
Premises and equipment, net | 32,908 | 33,197 |
Goodwill | 10,168 | 10,168 |
Other real estate owned | 17,102 | 26,203 |
Bank owned life insurance | 25,086 | ' |
Other assets and accrued interest receivable | 33,626 | 37,425 |
TOTAL ASSETS | 3,371,904 | 3,394,399 |
Deposits | ' | ' |
Non interest-bearing | 488,642 | 479,046 |
Interest-bearing | 1,502,215 | 1,503,882 |
Total deposits | 1,990,857 | 1,982,928 |
Securities sold under agreements to repurchase and other short-term borrowings | 165,555 | 250,884 |
Federal Home Loan Bank advances | 605,000 | 542,600 |
Subordinated note | 41,240 | 41,240 |
Other liabilities and accrued interest payable | 26,459 | 40,045 |
Total liabilities | 2,829,111 | 2,857,697 |
Commitments and contingent liabilities (Footnote 20) | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, no par value, 100,000 shares authorized Series A 8.5% non cumulative convertible, none issued | ' | ' |
Class A Common Stock, no par value, 30,000,000 shares authorized, 18,541,284 shares (2013) and 18,694,315 shares (2012) issued and outstanding; Class B Common Stock, no par value, 5,000,000 shares authorized, 2,259,926 shares (2013) and 2,270,952 (2012) issued and outstanding | 4,894 | 4,932 |
Additional paid in capital | 133,012 | 132,686 |
Retained earnings | 401,766 | 393,472 |
Accumulated other comprehensive income | 3,121 | 5,612 |
Total stockholders' equity | 542,793 | 536,702 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $3,371,904 | $3,394,399 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Securities held to maturity, fair value | $50,768 | $46,416 |
Preferred stock, no par value | $0 | $0 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Non cumulative convertible preferred stock (as a percent) | 8.50% | 8.50% |
Preferred stock, issued | 0 | 0 |
Class A Common Stock | ' | ' |
Common Stock, no par value | $0 | $0 |
Common Stock, shares authorized | 30,000,000 | 30,000,000 |
Common Stock, issued | 18,541,284 | 18,694,315 |
Common Stock, outstanding | 18,541,284 | 18,694,315 |
Class B Common Stock | ' | ' |
Common Stock, no par value | $0 | $0 |
Common Stock, shares authorized | 5,000,000 | 5,000,000 |
Common Stock, issued | 2,259,926 | 2,270,952 |
Common Stock, outstanding | 2,259,926 | 2,270,952 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
INTEREST INCOME: | ' | ' | ' |
Loans, including fees | $124,843,000 | $170,542,000 | $177,715,000 |
Taxable investment securities | 8,067,000 | 10,729,000 | 15,309,000 |
Federal Home Loan Bank stock and other | 1,658,000 | 2,188,000 | 2,091,000 |
Total interest income | 134,568,000 | 183,459,000 | 195,115,000 |
INTEREST EXPENSE: | ' | ' | ' |
Deposits | 4,093,000 | 5,074,000 | 8,914,000 |
Securities sold under agreements to repurchase and other short-term borrowings | 70,000 | 375,000 | 646,000 |
Federal Home Loan Bank advances | 14,715,000 | 14,833,000 | 18,180,000 |
Subordinated note | 2,515,000 | 2,522,000 | 2,515,000 |
Total interest expense | 21,393,000 | 22,804,000 | 30,255,000 |
NET INTEREST INCOME | 113,175,000 | 160,655,000 | 164,860,000 |
Provision for loan losses | 2,983,000 | 15,043,000 | 17,966,000 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 110,192,000 | 145,612,000 | 146,894,000 |
NON INTEREST INCOME: | ' | ' | ' |
Service charges on deposit accounts | 13,953,000 | 13,496,000 | 14,105,000 |
Net refund transfer fees | 13,884,000 | 78,304,000 | 88,195,000 |
Mortgage banking income | 7,258,000 | 8,447,000 | 3,899,000 |
Debit card interchange fee income | 6,512,000 | 5,817,000 | 5,791,000 |
Bargain purchase gain | 1,324,000 | 55,438,000 | ' |
Gain on sale of banking center | ' | ' | 2,856,000 |
Gain on sale of securities available for sale | ' | 56,000 | 2,285,000 |
Net gain on sale of other real estate owned | 2,170,000 | 416,000 | 444,000 |
Increase in cash surrender value of bank owned life insurance | 86,000 | ' | ' |
Total impairment losses on investment securities | ' | -56,000 | -279,000 |
Net impairment loss recognized in earnings | ' | ' | -279,000 |
Other | 2,782,000 | 3,104,000 | 2,328,000 |
Total non interest income | 47,969,000 | 165,078,000 | 119,624,000 |
NON INTEREST EXPENSES: | ' | ' | ' |
Salaries and employee benefits | 57,778,000 | 60,633,000 | 54,966,000 |
Occupancy and equipment, net | 21,918,000 | 22,474,000 | 21,713,000 |
Communication and transportation | 4,128,000 | 5,806,000 | 5,695,000 |
Marketing and development | 3,353,000 | 3,429,000 | 3,237,000 |
FDIC insurance expense | 1,682,000 | 1,403,000 | 4,425,000 |
Bank franchise tax expense | 4,115,000 | 3,916,000 | 3,645,000 |
Data processing | 3,333,000 | 4,309,000 | 3,207,000 |
Debit card interchange expense | 2,850,000 | 2,462,000 | 2,239,000 |
Supplies | 1,157,000 | 2,114,000 | 2,353,000 |
Other real estate owned expense | 3,446,000 | 3,537,000 | 2,356,000 |
Charitable contributions | 1,004,000 | 3,341,000 | 5,933,000 |
Legal expense | 4,627,000 | 1,866,000 | 3,969,000 |
FDIC civil money penalty | ' | ' | 900,000 |
FHLB advance prepayment penalty | ' | 2,436,000 | ' |
Other | 8,272,000 | 9,019,000 | 7,683,000 |
Total non interest expenses | 117,663,000 | 126,745,000 | 122,321,000 |
INCOME BEFORE INCOME TAX EXPENSE | 40,498,000 | 183,945,000 | 144,197,000 |
INCOME TAX EXPENSE | 15,075,000 | 64,606,000 | 50,048,000 |
NET INCOME | 25,423,000 | 119,339,000 | 94,149,000 |
Tennessee Commerce Bank | ' | ' | ' |
NON INTEREST INCOME: | ' | ' | ' |
Bargain purchase gain | ' | 27,614,000 | ' |
First Commercial Bank | ' | ' | ' |
NON INTEREST INCOME: | ' | ' | ' |
Bargain purchase gain | $1,324,000 | $27,824,000 | ' |
Class A Common Stock | ' | ' | ' |
BASIC EARNINGS PER SHARE: | ' | ' | ' |
Basic earnings per share (in dollars per share) | $1.23 | $5.71 | $4.50 |
DILUTED EARNINGS PER SHARE: | ' | ' | ' |
Diluted earnings per share (in dollars per share) | $1.22 | $5.69 | $4.49 |
DIVIDENDS DECLARED PER COMMON SHARE: | ' | ' | ' |
Dividend declared per common share (in dollars per share) | $0.69 | $1.75 | $0.61 |
Class B Common Stock | ' | ' | ' |
BASIC EARNINGS PER SHARE: | ' | ' | ' |
Basic earnings per share (in dollars per share) | $1.17 | $5.55 | $4.45 |
DILUTED EARNINGS PER SHARE: | ' | ' | ' |
Diluted earnings per share (in dollars per share) | $1.16 | $5.53 | $4.44 |
DIVIDENDS DECLARED PER COMMON SHARE: | ' | ' | ' |
Dividend declared per common share (in dollars per share) | $0.63 | $1.59 | $0.55 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Net income | $25,423 | $119,339 | $94,149 |
OTHER COMPREHENSIVE INCOME | ' | ' | ' |
Change in fair value of derivatives used for cash flow hedges | 170 | ' | ' |
Unrealized gains (losses) on securities available for sale | -4,747 | 1,043 | -893 |
Change in unrealized gains (losses) on securities available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings | 742 | 1,279 | -145 |
Reclassification adjustment for gains recognized in earnings | ' | -56 | -2,285 |
Reclassification adjustment for other-than-temporary impairment recognized in earnings | ' | ' | 279 |
Net unrealized gains (losses) | -3,835 | 2,266 | -3,044 |
Tax effect | 1,344 | -793 | 1,065 |
Net of tax | -2,491 | 1,473 | -1,979 |
COMPREHENSIVE INCOME | $22,932 | $120,812 | $92,170 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Class A Common Stock | Class B Common Stock | Common Stock | Common Stock | Common Stock | Additional Paid In Capital | Retained Earnings | Retained Earnings | Retained Earnings | Accumulated Other Comprehensive Income |
In Thousands, except Share data, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | Class A Common Stock | Class B Common Stock | USD ($) | USD ($) | Class A Common Stock | Class B Common Stock | USD ($) |
USD ($) | USD ($) | ||||||||||
Balance at Dec. 31, 2010 | $371,376 | ' | ' | $4,944 | ' | ' | $129,327 | $230,987 | ' | ' | $6,118 |
Balance (in shares) at Dec. 31, 2010 | ' | ' | ' | ' | 18,628,000 | 2,307,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 94,149 | ' | ' | ' | ' | ' | ' | 94,149 | ' | ' | ' |
Net change in accumulated other comprehensive income | -1,979 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,979 |
Dividend declared Common Stock: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend declared Common Stock | ' | -11,280 | -1,266 | ' | ' | ' | ' | ' | -11,280 | -1,266 | ' |
Stock options exercised, net of shares redeemed | 438 | ' | ' | 7 | ' | ' | 881 | -450 | ' | ' | ' |
Stock options exercised, net of shares redeemed (in shares) | ' | ' | ' | ' | 38,000 | ' | ' | ' | ' | ' | ' |
Repurchase of Class A Common Stock | -492 | ' | ' | -4 | ' | ' | -147 | -341 | ' | ' | ' |
Repurchase of Class A Common Stock (in shares) | ' | ' | ' | ' | -23,000 | ' | ' | ' | ' | ' | ' |
Conversion of Class B Common Stock to Class A Common Stock (in shares) | ' | ' | ' | ' | 7,000 | -7,000 | ' | ' | ' | ' | ' |
Net change in notes receivable on Common Stock | 973 | ' | ' | ' | ' | ' | 973 | ' | ' | ' | ' |
Deferred director compensation expense - Company Stock | 171 | ' | ' | ' | ' | ' | 171 | ' | ' | ' | ' |
Deferred director compensation expense - Company Stock (in shares) | ' | ' | ' | ' | 2,000 | ' | ' | ' | ' | ' | ' |
Stock based compensation expense - options | 277 | ' | ' | ' | ' | ' | 277 | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | 452,367 | ' | ' | 4,947 | ' | ' | 131,482 | 311,799 | ' | ' | 4,139 |
Balance (in shares) at Dec. 31, 2011 | ' | ' | ' | ' | 18,652,000 | 2,300,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 119,339 | ' | ' | ' | ' | ' | ' | 119,339 | ' | ' | ' |
Net change in accumulated other comprehensive income | 1,473 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,473 |
Dividend declared Common Stock: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend declared Common Stock | ' | -32,832 | -3,619 | ' | ' | ' | ' | ' | -32,832 | -3,619 | ' |
Stock options exercised, net of shares redeemed | 147 | ' | ' | 2 | ' | ' | 213 | -68 | ' | ' | ' |
Stock options exercised, net of shares redeemed (in shares) | ' | ' | ' | ' | 8,000 | ' | ' | ' | ' | ' | ' |
Repurchase of Class A Common Stock | -1,668 | ' | ' | -17 | ' | ' | -504 | -1,147 | ' | ' | ' |
Repurchase of Class A Common Stock (in shares) | ' | ' | ' | ' | -80,000 | ' | ' | ' | ' | ' | ' |
Conversion of Class B Common Stock to Class A Common Stock (in shares) | ' | ' | ' | ' | 29,000 | -29,000 | ' | ' | ' | ' | ' |
Net change in notes receivable on Common Stock | 426 | ' | ' | ' | ' | ' | 426 | ' | ' | ' | ' |
Deferred director compensation expense - Company Stock | 227 | ' | ' | ' | ' | ' | 227 | ' | ' | ' | ' |
Deferred director compensation expense - Company Stock (in shares) | ' | ' | ' | ' | 3,000 | ' | ' | ' | ' | ' | ' |
Stock based compensation expense - restricted stock | 50 | ' | ' | ' | ' | ' | 50 | ' | ' | ' | ' |
Stock based compensation expense - restricted stock (in shares) | ' | ' | ' | ' | 82,000 | ' | ' | ' | ' | ' | ' |
Stock based compensation expense - options | 792 | ' | ' | ' | ' | ' | 792 | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | 536,702 | ' | ' | 4,932 | ' | ' | 132,686 | 393,472 | ' | ' | 5,612 |
Balance (in shares) at Dec. 31, 2012 | ' | ' | ' | ' | 18,694,000 | 2,271,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 25,423 | ' | ' | ' | ' | ' | ' | 25,423 | ' | ' | ' |
Net change in accumulated other comprehensive income | -2,491 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,491 |
Dividend declared Common Stock: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend declared Common Stock | ' | -12,707 | -1,424 | ' | ' | ' | ' | ' | -12,707 | -1,424 | ' |
Stock options exercised, net of shares redeemed | 439 | ' | ' | 5 | ' | ' | 610 | -176 | ' | ' | ' |
Stock options exercised, net of shares redeemed (in shares) | ' | ' | ' | ' | 24,000 | ' | ' | ' | ' | ' | ' |
Repurchase of Class A Common Stock | -4,095 | ' | ' | -43 | ' | ' | -1,230 | -2,822 | ' | ' | ' |
Repurchase of Class A Common Stock (in shares) | ' | ' | ' | ' | -193,000 | ' | ' | ' | ' | ' | ' |
Conversion of Class B Common Stock to Class A Common Stock (in shares) | ' | ' | ' | ' | 11,000 | -11,000 | ' | ' | ' | ' | ' |
Net change in notes receivable on Common Stock | 250 | ' | ' | ' | ' | ' | 250 | ' | ' | ' | ' |
Deferred director compensation expense - Company Stock | 193 | ' | ' | ' | ' | ' | 193 | ' | ' | ' | ' |
Deferred director compensation expense - Company Stock (in shares) | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | ' |
Stock based compensation expense - restricted stock | 298 | ' | ' | ' | ' | ' | 298 | ' | ' | ' | ' |
Stock based compensation expense - options | 205 | ' | ' | ' | ' | ' | 205 | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | $542,793 | ' | ' | $4,894 | ' | ' | $133,012 | $401,766 | ' | ' | $3,121 |
Balance (in shares) at Dec. 31, 2013 | ' | ' | ' | ' | 18,541,000 | 2,260,000 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Class A Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend declared common stock, per share (in dollars per share) | $0.18 | $0.18 | $0.18 | $0.17 | $1.26 | $0.17 | $0.17 | $0.15 | $0.69 | $1.75 | $0.61 |
Class B Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend declared common stock, per share (in dollars per share) | $0.16 | $0.16 | $0.16 | $0.15 | $0.15 | $0.15 | $0.15 | $0.14 | $0.63 | $1.59 | $0.55 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $25,423 | $119,339 | $94,149 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation, amortization and accretion, net | 2,060 | 9,875 | 4,406 |
Provision for loan losses | 2,983 | 15,043 | 17,966 |
Net gain on sale of mortgage loans held for sale | -6,979 | -9,698 | -4,091 |
Origination of mortgage loans held for sale | -291,155 | -252,194 | -137,843 |
Proceeds from sale of mortgage loans held for sale | 305,242 | 255,670 | 152,770 |
Net realized (recovery) impairment of mortgage servicing rights | -345 | 142 | 203 |
Net realized gain on sales, calls and impairment of securities | ' | -56 | -2,006 |
Net gain on sale of other real estate owned | -2,170 | -416 | -444 |
Writedowns of other real estate owned | 1,824 | 1,719 | 917 |
Deferred director compensation expense - Company Stock | 193 | 227 | 171 |
Stock based compensation expense | 503 | 842 | 277 |
Bargain purchase gains on acquisitions | -1,324 | -55,438 | ' |
Gain on sale of banking center | ' | ' | -2,856 |
Increase in cash surrender value of bank owned life insurance | -86 | ' | ' |
Net change in other assets and liabilities: | ' | ' | ' |
Accrued interest receivable | 973 | 434 | -262 |
Accrued interest payable | 56 | -321 | -646 |
Other assets | 488 | 6,289 | 1,665 |
Other liabilities | -12,250 | -1,543 | -772 |
Net cash provided by operating activities | 25,436 | 89,914 | 123,604 |
INVESTING ACTIVITIES: | ' | ' | ' |
Net cash received in FDIC-assisted transactions | ' | 921,247 | ' |
Purchases of securities available for sale | -194,527 | -61,717 | -598,495 |
Purchases of securities to be held to maturity | -15,000 | -23,114 | -500 |
Purchases of Federal Home Loan Bank stock | ' | ' | -46 |
Proceeds from calls, maturities and paydowns of securities available for sale | 195,553 | 287,773 | 310,331 |
Proceeds from calls, maturities and paydowns of securities to be held to maturity | 10,294 | 5,341 | 5,402 |
Proceeds from sales of securities available for sale | ' | 38,724 | 161,652 |
Proceeds from sales of Federal Home Loan Bank stock | 35 | 469 | 278 |
Proceeds from sales of other real estate owned | 21,267 | 25,326 | 11,844 |
Purchase of commercial real estate loans | ' | ' | -32,650 |
Net change in loans | 52,801 | -198,520 | -117,864 |
Net purchases of premises and equipment | -5,022 | -3,888 | -3,727 |
Purchase of bank owned life insurance | -25,000 | ' | ' |
Sale of banking center | ' | ' | -15,388 |
Net cash provided by/(used in) investing activities | 40,401 | 991,641 | -279,163 |
FINANCING ACTIVITIES: | ' | ' | ' |
Net change in deposits | 7,929 | -894,756 | -536,792 |
Net change in securities sold under agreements to repurchase and other short-term borrowings | -85,329 | 20,653 | -88,433 |
Payments of Federal Home Loan Bank advances | -37,600 | -590,095 | -75,247 |
Proceeds from Federal Home Loan Bank advances | 100,000 | 195,000 | 445,000 |
Repurchase of Common Stock | -4,095 | -1,668 | -492 |
Net proceeds from Common Stock options exercised | 439 | 147 | 438 |
Cash dividends paid | -14,009 | -36,116 | -12,315 |
Net cash used in financing activities | -32,665 | -1,306,835 | -267,841 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 33,172 | -225,280 | -423,400 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 137,691 | 362,971 | 786,371 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 170,863 | 137,691 | 362,971 |
Cash paid during the period for: | ' | ' | ' |
Interest | 21,337 | 23,125 | 30,908 |
Income taxes | 31,875 | 53,763 | 48,947 |
SUPPLEMENTAL NONCASH DISCLOSURES: | ' | ' | ' |
Transfers from loans to real estate acquired in settlement of loans | 15,271 | 20,610 | 11,300 |
Loans provided for sales of other real estate owned | 2,377 | 1,554 | 3,119 |
Change in fair value of derivatives used for cash flow hedges | $170 | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Operations and Principles of Consolidation — The consolidated financial statements include the accounts of Republic Bancorp, Inc. (the “Parent Company”) and its wholly-owned subsidiaries: Republic Bank & Trust Company (“RB&T”) and Republic Bank (“RB”) (collectively referred together as the “Bank”). Republic Invest Co., a former subsidiary of RB&T, and its subsidiary, Republic Capital LLC, were dissolved in April 2013 in connection with the full repayment by RB&T of intragroup subordinated debentures issued by Republic Capital LLC in a 2004 intragroup trust preferred transaction. All companies are collectively referred to as “Republic” or the “Company.” All significant intercompany balances and transactions are eliminated in consolidation. | |
As of December 31, 2013, the Company was divided into three distinct business operating segments: Traditional Banking, Mortgage Banking and Republic Processing Group (“RPG”). During the second quarter of 2012, the Company realigned the previously reported Tax Refund Solutions (“TRS”) segment as a division of the newly formed RPG segment. Along with the TRS division, Republic Payment Solutions (“RPS”) and Republic Credit Solutions (“RCS”) also operate as divisions of the RPG segment. | |
Traditional Banking and Mortgage Banking (collectively “Core Banking”) | |
As of December 31, 2013, in addition to an Internet delivery channel, Republic had 45 full-service banking centers with locations as follows: | |
· Kentucky – 34 | |
· Metropolitan Louisville – 20 | |
· Central Kentucky – 9 | |
· Elizabethtown – 1 | |
· Frankfort – 1 | |
· Georgetown – 1 | |
· Lexington – 5* | |
· Shelbyville – 1 | |
· Western Kentucky – 2 | |
· Owensboro – 2 | |
· Northern Kentucky – 3 | |
· Covington – 1 | |
· Florence – 1 | |
· Independence – 1 | |
· Southern Indiana – 3 | |
· Floyds Knobs – 1 | |
· Jeffersonville – 1 | |
· New Albany – 1 | |
· Metropolitan Tampa, Florida – 4* | |
· Metropolitan Cincinnati, Ohio – 1 | |
· Metropolitan Nashville, Tennessee – 2 | |
· Metropolitan Minneapolis, Minnesota – 1* | |
* - One banking center in Palm Harbor, Florida, one in Lexington, Kentucky and Republic’s sole banking center in Minneapolis, Minnesota were closed in the first quarter of 2014, thereby reducing total banking centers to 42. | |
In October 2013, RB gave the required 90-day regulatory notice of its intentions to close its sole banking center in Palm Harbor, Florida. This location was closed in January 2014 with the lease for the premises expiring in February 2014. | |
In October 2013, RB&T gave the required 90-day regulatory notice of its intentions to close its sole banking center in Minneapolis, Minnesota, which it acquired in connection with the First Commercial Bank (“FCB”) acquisition in September 2012. The Bank is currently under a lease for this location which is set to expire in April 2015. The Bank repurposed the location as a support office in January 2014 and intends to use the office until the expiration of its lease or until such time that it is able to negotiate with the landlord a buy-out of its future lease obligations. The banking center stopped transacting business at the Minnesota location with deposit customers in January 2014. | |
In November 2013, RB&T gave the required 90-day regulatory notice of its intentions to close its “Perimeter” banking center in Lexington, Kentucky. This location was closed in February 2014 with the lease for the premises expiring in June 2014. | |
Core Banking results of operations are primarily dependent upon net interest income, which represents the difference between the interest income and fees on interest-earning assets and the interest expense on interest-bearing liabilities. Principal interest-earning Core Banking assets represent investment securities and real estate, commercial and consumer loans. Interest-bearing liabilities primarily consist of interest-bearing deposit accounts, securities sold under agreements to repurchase, as well as short-term and long-term borrowing sources. The Bank also provides short-term, revolving credit facilities to mortgage bankers across the Nation through warehouse lines of credit. These credit facilities are secured by single family, first lien residential real estate loans. | |
Other sources of Core Banking income include service charges on deposit accounts, debit card interchange fee income, title insurance commissions, fees charged to customers for trust services and revenue generated from Mortgage Banking activities. Mortgage Banking activities represent both the origination and sale of loans in the secondary market and the servicing of loans for others, primarily the Federal Home Loan Mortgage Corporation (“Freddie Mac” or “FHLMC”). | |
Core Banking operating expenses consist primarily of salaries and employee benefits, occupancy and equipment expenses, communication and transportation costs, data processing, debit card interchange expenses, marketing and development expenses, FDIC insurance expense, and various general and administrative costs. Core Banking results of operations are significantly impacted by general economic and competitive conditions, particularly changes in market interest rates, government laws and policies and actions of regulatory agencies. | |
Republic Processing Group | |
Nationally, through RB&T, RPG facilitates the receipt and payment of federal and state tax refunds under the TRS division, primarily through refund transfers (“RT”s). RTs are products whereby a tax refund is issued to the taxpayer after RB&T has received the refund from the federal or state government. There is no credit risk or borrowing costs associated with these products, because they are only delivered to the taxpayer upon receipt of the tax refund directly from the governmental paying authority. Fees earned on RTs, net of rebates, are the primary source of revenue for the TRS division and the RPG segment, and are reported as non-interest income under the line item “Net refund transfer fees.” | |
The TRS division historically originated and obtained a significant source of revenue from Refund Anticipation Loans (“RAL”s), but terminated this product effective April 30, 2012. RALs were short-term consumer loans offered to taxpayers that were secured by the customer’s anticipated tax refund, which represented the sole source of repayment. The fees earned on RALs for the applicable reporting period in 2012 were reported as interest income under the line item “Loans, including fees.” | |
Through RB, the RPS division is an issuing bank offering general purpose reloadable prepaid debit cards through third party program managers. Through RB&T, the RCS division is piloting short-term consumer credit products. | |
Use of Estimates — Financial statements prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) require management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Critical accounting estimates relate to: | |
· Allowance for loan losses (“Allowance”) and Provision for Loan Losses | |
· Acquisition Accounting | |
· Goodwill and Other Intangible Assets | |
· Mortgage Servicing Rights | |
· Income Tax Accounting | |
· Investment Securities | |
· Other real estate owned (“OREO”) | |
These estimates are particularly subject to change and actual results could differ from these estimates. | |
Concentration of Credit Risk — Most of the Company’s Traditional Banking business activity is with customers located in Kentucky, Southern Indiana, Florida, Tennessee and Minnesota. The Company’s Traditional Banking exposure to credit risk is significantly affected by changes in the economy in these specific areas. Furthermore, the Company’s warehouse lines are secured by single family, first lien residential real estate loans originated by the Bank’s mortgage clients across the nation. As of December 31, 2013, 44% of collateral securing warehouse lines were located in California. | |
Earnings Concentration — For 2013, 2012 and 2011, approximately 9%, 38% and 52% of total Company net revenues (interest income plus non-interest income) were derived from RPG’s TRS division. | |
Cash Flows — Cash and cash equivalents include cash, deposits with other financial institutions with original maturities less than 90 days and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest-bearing deposits in other financial institutions, repurchase agreements and income taxes. | |
Interest-Bearing Deposits in Other Financial Institutions — Interest-bearing deposits in other financial institutions mature within one year and are carried at cost. | |
Trust Assets — Property held for customers in fiduciary or agency capacities, other than trust cash on deposit at RB&T, is not included in the consolidated financial statements since such items are not assets of RB&T. | |
Securities — Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. | |
Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. | |
Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. OTTI related to credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. | |
In order to determine OTTI for purchased beneficial interests that, on the purchase date, were not highly rated, the Bank compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. | |
Acquisition Accounting — The Bank accounts for its 2012 FDIC-assisted acquisitions in accordance with the acquisition method as outlined in Accounting Standards Codification (“ASC”) Topic 805, Business Combinations. The acquisition method requires: a) identification of the entity that obtains control of the acquiree; b) determination of the acquisition date; c) recognition and measurement of the identifiable assets acquired and liabilities assumed, and any noncontrolling interest in the acquiree; and d) recognition and measurement of goodwill or bargain purchase gain. | |
Identifiable assets acquired, liabilities assumed, and any noncontrolling interest in acquirees are generally recognized at their acquisition date (“day-one”) fair values based on the requirements of ASC Topic 820, Fair Value Measurements and Disclosures. The measurement period for day-one fair values begins on the acquisition date and ends the earlier of: (a) the day management believes it has all the information necessary to determine day-one fair values; or (b) one year following the acquisition date. In many cases, the determination of day-one fair values requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly complex and subjective in nature and subject to recast adjustments, which are retrospective adjustments to reflect new information existing at the acquisition date affecting day-one fair values. More specifically, these recast adjustments for loans and other real estate owned may be made, as market value data, such as appraisals, are received by the bank. Increases or decreases to day-one fair values are reflected with a corresponding increase or decrease to bargain purchase gain or goodwill. | |
Acquisition related costs are expensed as incurred unless those costs are related to issuing debt or equity securities used to finance the acquisition. | |
Mortgage Banking Activities — Mortgage loans originated and intended for sale in the secondary market are carried at fair value, as determined by outstanding commitments from investors. Net gains and losses are recorded as a component of mortgage banking income. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. Substantially all of the gain or loss on the sale of loans are reported in earnings when loans are locked. | |
Commitments to fund mortgage loans (“interest rate lock commitments”) to be sold into the secondary market and non-exchange traded mandatory forward sales contracts (“forward contracts”) for the future delivery of these mortgage loans are accounted for as free standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the Bank enters into the derivative. Generally, the Bank enters into forward contracts for the future delivery of mortgage loans when interest rate lock commitments are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these mortgage derivatives are included in net gains on sales of loans, which is a component of Mortgage Banking income on the income statement. | |
Mortgage loans held for sale are generally sold with the mortgage servicing rights (“MSR”) retained. When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in net gains on sales of loans, which is a component of Mortgage Banking income on the income statement. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Amortization of MSRs are initially set at seven years and subsequently adjusted on a quarterly basis based on the weighted average remaining life of the underlying loans. | |
MSRs are evaluated for impairment quarterly based upon the fair value of the MSRs as compared to carrying amount. Impairment is determined by stratifying MSRs into groupings based on predominant risk characteristics, such as interest rate, loan type, loan terms and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Bank later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the valuation allowance may be recorded as an increase to income. Changes in valuation allowances are reported within Mortgage Banking income on the income statement. The fair values of MSRs are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates. | |
A primary factor influencing the fair value is the estimated life of the underlying serviced loans. The estimated life of the serviced loans is significantly influenced by market interest rates. During a period of declining interest rates, the fair value of the MSRs generally will decline due to higher expected prepayments within the portfolio. Alternatively, during a period of rising interest rates the fair value of MSRs generally will increase as prepayments on the underlying loans would be expected to decline. Based on the estimated fair value at December 31, 2013 and 2012, management determined there was $0 and $345,000 impairment within the MSR portfolio. | |
Loan servicing income is reported on the income statement as a component of Mortgage Banking income. Loan servicing income is recorded as loan payments are collected and includes servicing fees from investors and certain charges collected from borrowers. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. The amortization of MSRs is netted against loan servicing fee income. Loan servicing income totaled $2.1 million, $2.2 million and $2.8 million for the years ended December 31, 2013, 2012 and 2011. Late fees and ancillary fees related to loan servicing are not material. | |
Loans — Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of purchase premiums or discounts, deferred loan fees and costs and the Allowance. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level yield method without anticipating prepayments. | |
Interest income on mortgage and commercial loans is typically discontinued at the time the loan is 80 days delinquent unless the loan is well-secured and in process of collection. Past due status is based on the contractual terms of the loan. In most cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Non-accrual loans and loans past due 80 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. | |
All interest accrued but not received for all classes of loans placed on non-accrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost recovery method, 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, typically a minimum of six months of performance. Consumer and credit card loans, are not placed on non-accrual status, but are reviewed periodically and charged off when the loans reach 90 days past due or at any point the loan is deemed uncollectible. | |
Loans purchased in the Company’s 2012 FDIC-assisted acquisitions are accounted for using one of the following accounting standards: | |
· ASC Topic 310-20, Non Refundable Fees and Other Costs, is used to value loans that have not demonstrated post origination credit quality deterioration and the acquirer expects to collect all contractually required payments from the borrower. For these loans, the difference between the loan’s day-one fair value and amortized cost would be amortized or accreted into income using the interest method. | |
· ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, is used to value loans with post origination credit quality deterioration. For these loans, it is probable the acquirer will be unable to collect all contractually required payments from the borrower. Under ASC Topic 310-30, the expected cash flows that exceed the initial investment in the loan (fair value) represent the “accretable yield,” which is recognized as interest income on a level-yield basis over the expected cash flow periods of the loans. | |
Purchased Loans (ASC Topic 310-20) — Purchased loans accounted for under ASC Topic 310-20 are accounted for as any other Bank-originated loan, potentially becoming nonaccrual or impaired, as well as being risk rated under the Bank’s standard practices and procedures. In addition, these loans are considered in the determination of the Allowance once day-one fair values are final. | |
Purchased Credit Impaired (“PCI”) Loans (ASC Topic 310-30) — In determining the day-one fair values of PCI loans, management considers a number of factors including, among other things, the estimated remaining life of the acquired loans, estimated prepayments, estimated loss ratios, estimated value of the underlying collateral, estimated holding periods and net present value of cash flows expected to be received. For the Company’s 2012 FDIC-assisted acquisitions, RB&T elected to account for PCI loans individually, as opposed to aggregating the loans into pools based on common risk characteristics such as loan type. | |
Management separately monitors the PCI portfolio and on a quarterly basis reviews the loans contained within this portfolio against the factors and assumptions used in determining the day-one fair values. In addition to its quarterly evaluation, a loan is typically reviewed when it is modified or extended, or when material information becomes available to the Bank that provides additional insight regarding the loan’s performance, estimated life, the status of the borrower, or the quality or value of the underlying collateral. | |
To the extent that a PCI loan’s performance does not reflect an increased risk of loss of contractual principal beyond the non-accretable yield established as part of its initial day-one evaluation, such loan would be classified in the Purchased Credit Impaired - Group 1 (“PCI-1”) category; whose credit risk is considered equivalent to a non-PCI “Special Mention” loan within the Bank’s credit rating matrix. PCI-1 loans are considered impaired if, based on current information and events, it is probable that the future estimated cash flows of the loan have deteriorated from management’s initial estimate. Provisions for loan losses are made for impaired PCI-1 loans to further discount the loan and allow its yield to conform to at least management’s initial expectations. Any improvement in the expected performance of a PCI-1 loan would result in a reversal of the provision for loan losses to the extent of prior charges and then an adjustment to accretable yield, which would have a positive impact on interest income. | |
If during the Bank’s periodic evaluations of its PCI loan portfolio, management deems a PCI-1 loan to have an increased risk of loss of contractual principal beyond the non-accretable yield established as part of its initial day-one evaluation, such loan would be classified PCI-Substandard (“PCI-Sub”) within the Bank’s credit risk matrix. Management deems the risk of default and overall credit risk of a PCI-Sub loan to be greater than a PCI-1 loan and more analogous to a non-PCI “Substandard” loan. PCI-Sub loans are considered to be impaired. Any improvement in the expected performance of a PCI-Sub loan would result in a reversal of the provision for loan losses to the extent of prior charges and then an adjustment to accretable yield, which would have a positive impact on interest income. | |
PCI loans may be contractually past due 80 days-or-more and continue to accrue interest if future cash flows can be reasonably projected to allow continuation of discount accretion. | |
PCI loans would be placed on non-accrual when management determines that based on estimated cash flow, the Bank will be unable to accrete any yield on such loan. PCI loans may also be placed on non-accrual if management cannot reasonably estimate future cash flows on such loans | |
Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”) and classified as impaired. If a troubled debt restructuring is performed on a PCI loan, the loan is considered impaired under the applicable TDR accounting standards and transferred out of the PCI population. The loan may require an additional provision for loan losses if its restructured cash flows are less than management’s initial day-one expectations. PCI loans for which the Bank simply chooses to extend the maturity date are generally not considered TDRs and remain in the PCI population. | |
Allowance for Loan Losses — The Allowance is a valuation allowance for probable incurred credit losses and includes overdrawn deposit accounts. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using historical loan loss experience, the nature and volume of the portfolio, information about specific borrower situations, estimated collateral values, economic conditions and other factors. Allocations of the allowance may be made for specific classes, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. | |
Management evaluates the adequacy of the Allowance on a monthly basis and presents and discusses the analysis with the Audit Committee and the Board of Directors on a quarterly basis. | |
The Allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component is based on historical loss experience adjusted for qualitative factors. | |
A loan is impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans that meet the following classifications are considered impaired: | |
· All loans internally rated as “Substandard,” “Doubtful” or “Loss;” | |
· All loans internally rated in a PCI category with cash flows that have deteriorated from management’s initial estimate; | |
· All loans on non-accrual status and non-PCI loans past due 90 days-or-more still on accrual; | |
· All retail and commercial TDRs; and | |
· Any other situation where the full collection of the total amount due for a loan is improbable or otherwise meets the definition of impaired. | |
The Bank’s classified and special mention loans are generally commercial and industrial (“C&I”) and commercial real estate (“CRE”) loans but also include large single family residential and home equity loans, as well as TDRs, whether retail or commercial in nature. The Bank reviews and monitors these loans on a regular basis. Generally, loans are designated as classified or special mention to ensure more frequent monitoring. These loans are reviewed to ensure proper earning status and management strategy. If it is determined that there is serious doubt as to performance in accordance with original or modified contractual terms, then the loan is generally downgraded and often placed on non-accrual status. | |
Generally accepted accounting principles recognizes three methods to measure specific loan impairment, including: | |
· Cash Flow Method — The recorded investment in the loan is measured against the present value of expected future cash flows discounted at the loan’s effective interest rate. The Bank employs this method for a significant portion of its impaired TDRs. Impairment amounts under this method are reflected in the Bank’s Allowance as specific reserves on the respective impaired loan. These specific reserves are adjusted quarterly based upon reevaluation of the loan’s expected future cash flows and changes in the recorded investment in such loans. | |
· Collateral Method — The recorded investment in the loan is measured against the fair value of the loan’s collateral value less applicable selling costs. The Bank employs the fair value of collateral method for its impaired loans when the loan’s repayment is based solely on the sale of or the operations of the underlying collateral. Collateral fair value is typically based on the most recent real estate appraisal on file. Measured impairment under this method is classified loss and charged off. The Bank’s selling costs for its collateral dependent loans typically range from 10-13% of the fair value of the underlying collateral, depending on the loan class. Selling costs are not applicable for collateral dependent loans whose repayment is based solely on the operations of the underlying collateral. | |
· Market Value Method — The recorded investment in the loan is measured against the loan’s obtainable market value. The Bank does not currently employ this technique as it is typically impractical. | |
In addition to obtaining appraisals at the time of loan origination, the Bank typically updates appraisals and/or broker price opinions for loans with potential impairment. Updated valuations for commercial related loans exhibiting an increased risk of loss are typically obtained within one year of the last appraisal. Collateral values for past due residential mortgage loans and home equity loans are generally updated prior to a loan becoming 80 days delinquent, but no more than 180 days past due. When determining the amount of reserve, to the extent updated collateral values cannot be obtained due to the lack of recent comparable sales or for other reasons, the Bank discounts the valuation of the collateral primarily based on the age of the appraisal and the real estate market conditions of the location of the underlying collateral. | |
The general component of the Allowance covers loans collectively evaluated for impairment and is based on historical loss experience with potential adjustments for current relevant qualitative factors. The historical loss experience is determined by loan performance and class and is based on the actual loss history experienced by the Bank. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are included in the general component unless the loans are classified as TDRs. | |
For loans not considered impaired, management evaluates the loan portfolio by reviewing the historical loss rate for each respective loan class. Management evaluates the following historical loss rate scenarios: | |
· Rolling four quarter average | |
· Rolling eight quarter average | |
· Rolling twelve quarter average | |
· Rolling sixteen quarter average | |
· Rolling twenty quarter average | |
· Current year to date historical loss factor average | |
· Peer group loss factors | |
For the Bank’s current Allowance methodology, management uses the higher of the rolling eight, twelve, or sixteen quarter averages for each loan class when determining its historical loss factors for its “Pass” rated and nonrated loans. | |
Loan classes are also evaluated utilizing subjective factors in addition to the historical loss calculations to determine a loss allocation for each of those classes. Management assigns risk multiples to certain classes to account for qualitative factors such as: | |
· Changes in nature, volume and seasoning of the loan portfolio; | |
· Changes in experience, ability, and depth of lending management and other relevant staff; | |
· Changes in the quality of the Bank’s loan review program; | |
· Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; | |
· Changes in the volume and severity of past due, nonaccrual and classified loans; | |
· Changes in the value of underlying collateral for collateral-dependent loans; | |
· Changes in international, national, regional, and local economic and business conditions and developments that affect the collectibility of the loan portfolio, including the condition of various market segments; | |
· The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and | |
· The effect of other external factors such as competition, legal and regulatory requirements on the level of estimated credit losses in the Bank’s existing portfolio. | |
As this analysis, or any similar analysis, is an imprecise measure of loss, the Allowance is subject to ongoing adjustments. Therefore, management will often take into account other significant factors that may be necessary or prudent in order to reflect probable incurred losses in the total loan portfolio. | |
A “portfolio segment” is defined as the level at which an entity develops and documents a systematic methodology to determine its Allowance. A “class” of loans represents further disaggregation of a portfolio segment based on risk characteristics and the entity’s method for monitoring and assessing credit risk. In developing its allowance methodology, the Company has identified the following Traditional Banking portfolio segments: | |
Portfolio Segment 1 — Loans where the allowance methodology is determined based on a loan grading system (primarily commercial related loans). | |
For this portfolio, the Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, public information, and current economic trends. The Bank also considers the fair value of the underlying collateral and the strength and willingness of the guarantor(s). The Bank analyzes loans individually, and based on this analysis, establishes a credit risk rating consistent with its credit risk matrix. | |
Portfolio Segment 2 — Loans where the allowance methodology is driven by delinquency and non-accrual data (primarily retail mortgage or consumer related). | |
For this portfolio, the Bank analyzes risk classes based on delinquency and/or non-accrual status. | |
See Footnote 4 “Loans and Allowance for Loan Losses” in this section of the filing for additional discussion regarding the Company’s Allowance. | |
Transfers of Financial Assets — Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, 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 the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |
Other Real Estate Owned — Assets acquired through loan foreclosures are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. The Bank’s selling costs for OREO typically range from 10-13% of each property’s fair value, depending on property class. Fair value is commonly based on recent real estate appraisals or broker price opinions. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. | |
Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Bank. Once the appraisal is received, a member of the Bank’s Credit Administration Department (“CAD”) reviews the assumptions and approaches utilized in the appraisal, as well as the overall resulting fair value in comparison with independent data sources, such as recent market data or industry-wide statistics. On an annual basis, the Bank compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustment, if any, should be made to the appraisal value to arrive at an estimated fair value. | |
Fair value is commonly based on recent real estate appraisals or broker price opinions. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. | |
Premises and Equipment, Net — Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the related assets on the straight-line method. Estimated lives typically range from 25 to 39 years for buildings and improvements, three to ten years for furniture, fixtures and equipment and three to five years for leasehold improvements. | |
Federal Home Loan Bank Stock — The Bank is a member of the Federal Home Loan Bank (“FHLB”) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security and periodically evaluated for impairment. Because this stock is viewed as a long-term investment, impairment is based on ultimate recovery of par value. Both cash and stock dividends are recorded as interest income. | |
Bank Owned Life Insurance (“BOLI”) — During the fourth quarter of 2013, the Bank purchased $25 million in BOLI policies on certain employees. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. The Bank recognizes tax-free income from the periodic increases in cash surrender value of these policies and from death benefits in non-interest income. | |
Goodwill and Other Intangible Assets — Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009 represents the future economic benefits arising from other assets acquired that are individually identified and separately recognized. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. | |
The Company has selected September 30th as the date to perform its annual goodwill impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the Bank’s balance sheet. | |
Based on its assessment, the Company believes its goodwill of $10 million was not impaired and is properly recorded in the consolidated financial statements as of December 31, 2013 and 2012. | |
Other intangible assets consist of core deposit and acquired customer relationship intangible assets arising from bank acquisitions. They are initially measured at fair value and then are amortized on an accelerated method over their estimated useful lives, which can range from two to ten years. During 2013, the Company amortized all $510,000 in other intangible assets held as of December 31, 2012. | |
Off Balance Sheet Financial Instruments — Financial instruments include off balance sheet credit instruments, such as commitments to fund loans and standby letters of credit. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded upon funding. Instruments such as standby letters of credit are considered financial guarantees and are recorded at fair value. | |
Derivatives — Derivatives are recognized as assets and liabilities on the consolidated balance sheets and measured at fair value. The Company’s derivatives include interest rate swap agreements. For asset/liability management purposes, the Bank uses interest rate swap agreements to hedge the exposure or to modify the interest rate characteristic of certain immediately repricing liabilities. For a derivative 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. Offsetting fair values are recorded in other assets and other liabilities with no net effect on other operating income. | |
Net cash settlements on interest rate swaps are recorded in interest expense and cash flows related to the swaps are classified in the cash flow statement the same as the interest expense and cash flows from the liabilities being hedged. The Bank formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet. The Bank also formally assesses, both at the hedge’s inception and on an ongoing basis, whether a swap is highly effective in offsetting changes in cash flows of the hedged items. The Bank discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in cash flows of the hedged item, the derivative is settled or terminates, or treatment of the derivative as a hedge is no longer appropriate or intended. | |
When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. | |
Stock Based Compensation — For stock options and restricted stock awards issued to employees, compensation cost is recognized based on the fair value of these awards at the date of grant. The Company utilizes a Black-Scholes model to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. | |
Income Taxes — Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized | |
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | |
Retirement Plans — 401(k) plan expense is recorded as a component of salaries and employee benefits and represents the amount of Company matching contributions. | |
Earnings Per Common Share — Basic earnings per share is based on net income (in the case of Class B Common Stock, less the dividend preference on Class A Common Stock), divided by the weighted average number of shares outstanding during the period. Diluted earnings per share include the dilutive effect of additional potential Class A common shares issuable under stock options. Earnings and dividends per share are restated for all stock dividends through the date of issuance of the financial statements. | |
Comprehensive Income — Comprehensive income consists of net income and other comprehensive income (“OCI”). OCI includes unrealized gains and losses on securities available for sale, net of tax, and unrealized gains and losses on cash flow hedges, which are also recognized as a separate component of equity. | |
Loss Contingencies — Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any outstanding matters that would have a material effect on the financial statements. | |
Restrictions on Cash and Cash Equivalents — Republic is required by the Federal Reserve Bank (“FRB”) to maintain average reserve balances. Cash and due from banks on the consolidated balance sheet includes $168,000 and $744,000 of required reserve balances at December 31, 2013 and 2012. The Bank earns a nominal interest rate for balances held at the FRB in excess of required reserves. The Bank does not earn interest on cash balances at its branches and within its Automated Teller Machine (“ATM”) network. | |
Equity — Stock dividends in excess of 20% are reported by transferring the par value of the stock issued from retained earnings to common stock. Stock dividends for 20% or less are reported by transferring the fair value, as of the ex-dividend date, of the stock issued from retained earnings to common stock and additional paid in capital. Fractional share amounts are paid in cash with a reduction in retained earnings. | |
Dividend Restrictions — Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to Republic or by Republic to shareholders. | |
Fair Value of Financial Instruments — Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Footnote 5 “Fair Value” in this section of the filing. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. | |
Segment Information — Segments represent parts of the Company evaluated by management with separate financial information. Republic’s internal information is primarily reported and evaluated in three lines of business — Traditional Banking, Mortgage Banking and RPG. | |
Reclassifications and recasts — Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. These reclassifications had no impact on previously reported prior periods’ net income. Additionally, as discussed in Footnote 2 “2012 FDIC-Assisted Acquisitions,” during the first quarter of 2013 the Bank posted adjustments to the FCB acquired assets in the determination of acquisition day (“day-one”) fair values, which resulted in a $1.3 million increase to the bargain purchase gain presented. |
2012_FDICASSISTED_ACQUISITIONS
2012 FDIC-ASSISTED ACQUISITIONS | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
2012 FDIC-ASSISTED ACQUISITIONS | ' | |||||||||||||
2012 FDIC-ASSISTED ACQUISITIONS | ' | |||||||||||||
2. 2012 FDIC-ASSISTED ACQUISITIONS | ||||||||||||||
OVERVIEW | ||||||||||||||
During 2012, the Bank acquired two failed institutions in FDIC-assisted transactions. The Bank did not raise capital to complete either of these acquisitions. | ||||||||||||||
The Bank determined that its 2012 FDIC-assisted acquisitions constituted “business acquisitions” as defined by ASC Topic 805, Business Combinations. Accordingly, the assets acquired and liabilities assumed were presented at their estimated fair values, as required. Fair values were determined over a measurement period based on the requirements of ASC Topic 820, Fair Value Measurements and Disclosures. The measurement period for day-one fair values begins on the acquisition date and ends the earlier of: (a) the day management believes it has all the information necessary to determine day-one fair values; or (b) one year following the acquisition date. In many cases, the determination of these day-one fair values requires management to make material estimates about discount rates, future expected cash flows, market conditions and other future events that are highly complex and subjective in nature and subject to recast adjustments, which are retrospective adjustments to reflect new information existing at the acquisition date affecting day-one fair values. More specifically, recast adjustments for loans and other real estate owned were made as market value data, such as appraisals, were received by the Bank. Increases or decreases to day-one fair values have been reflected with a corresponding increase or decrease to bargain purchase gain. | ||||||||||||||
Tennessee Commerce Bank (“TCB”) | ||||||||||||||
On January 27, 2012, the Bank acquired specific assets and assumed substantially all of the deposits and specific other liabilities of TCB, which was headquartered in Franklin, Tennessee from the FDIC, as receiver for TCB, pursuant to the terms of a Purchase and Assumption Agreement (“P&A”) — Whole Bank; All Deposits entered into among RB&T, the FDIC as receiver of TCB and the FDIC. On January 30, 2012, TCB’s sole location re-opened as a division of RB&T. | ||||||||||||||
The Bank acquired approximately $221 million in notional assets from the FDIC as receiver for TCB. In addition, the Bank recorded a receivable from the FDIC for approximately $785 million, which represented the net difference between the assets acquired and the liabilities assumed, adjusted for the discount the Bank received for the acquisition. The FDIC paid approximately $771 million of this receivable on January 30, 2012 with the remaining $14 million paid on February 15, 2012. | ||||||||||||||
During the first quarter of 2012, the Bank recorded an initial bargain purchase gain of $27.9 million as a result of the TCB acquisition. The bargain purchase gain was realized because the overall price paid by the Bank was substantially less than the fair value of the TCB assets acquired and liabilities assumed in the acquisition. In the second and third quarters of 2012, the Bank posted adjustments to the acquired assets for its FDIC-assisted acquisition in the determination of day-one fair values and recorded a net decrease to the bargain purchase gain of $285,000, as additional information relative to the day-one fair values became available. | ||||||||||||||
Information obtained subsequent to January 27, 2012 and through September 30, 2012 was considered in forming TCB estimates of cash flows and collateral values as of the January 27, 2012 acquisition date, i.e., TCB’s day-one fair values. Day-one fair values for TCB were considered final as of September 30, 2012, which was the date the Bank believed it had received all the information necessary to determine TCB’s day-one fair values. | ||||||||||||||
A summary of the assets acquired and liabilities assumed in the TCB acquisition follows: | ||||||||||||||
Tennessee Commerce Bank | ||||||||||||||
January 27, 2012 | ||||||||||||||
As Previously Reported | As Recasted | |||||||||||||
Contractual | Fair Value | 2012 Recast | Fair | |||||||||||
(in thousands) | Amount | Adjustments | Adjustments | Value | ||||||||||
Assets acquired: | ||||||||||||||
Cash and cash equivalents | $ | 61,943 | $ | (89 | ) | $ | (2 | ) | $ | 61,852 | ||||
Securities available for sale | 42,646 | — | — | 42,646 | ||||||||||
Loans to be repurchased by the FDIC, net of discount | 19,800 | (2,797 | ) | — | 17,003 | |||||||||
Loans | 79,112 | (22,666 | ) | 830 | 57,276 | |||||||||
Federal Home Loan Bank stock, at cost | 2,491 | — | — | 2,491 | ||||||||||
Other real estate owned | 14,189 | (3,359 | ) | (1,113 | ) | 9,717 | ||||||||
Core deposit intangible | — | 64 | — | 64 | ||||||||||
Discount | (56,970 | ) | 56,970 | — | — | |||||||||
FDIC settlement receivable | 784,545 | — | — | 784,545 | ||||||||||
Other assets and accrued interest receivable | 945 | (60 | ) | — | 885 | |||||||||
Total assets acquired | $ | 948,701 | $ | 28,063 | $ | (285 | ) | $ | 976,479 | |||||
Liabilities assumed: | ||||||||||||||
Deposits: | ||||||||||||||
Non interest-bearing | $ | 19,754 | $ | — | $ | — | $ | 19,754 | ||||||
Interest-bearing | 927,641 | 54 | — | 927,695 | ||||||||||
Total deposits | 947,395 | 54 | — | 947,449 | ||||||||||
Accrued income taxes payable | — | 9,988 | (100 | ) | 9,888 | |||||||||
Other liabilities and accrued interest payable | 1,306 | 110 | — | 1,416 | ||||||||||
Total liabilities assumed | $ | 948,701 | $ | 10,152 | $ | (100 | ) | $ | 958,753 | |||||
Equity: | ||||||||||||||
Bargain purchase gain, net of taxes | — | 17,911 | (185 | ) | 17,726 | |||||||||
Total liabilities assumed and equity | $ | 948,701 | $ | 28,063 | $ | (285 | ) | $ | 976,479 | |||||
A summary of the net assets acquired from the FDIC and the estimated fair value adjustments as of the TCB acquisition date follows: | ||||||||||||||
Tennessee Commerce Bank | ||||||||||||||
January 27, 2012 | ||||||||||||||
Second Quarter | Third Quarter | |||||||||||||
As Previously | 2012 Recast | 2012 Recast | As | |||||||||||
(in thousands) | Reported | Adjustments | Adjustments | Recasted | ||||||||||
Assets acquired, at contractual amount | $ | 221,126 | $ | — | $ | — | $ | 221,126 | ||||||
Liabilities assumed, at contractual amount | (948,701 | ) | — | — | (948,701 | ) | ||||||||
Net liabilities assumed per the P&A Agreement | (727,575 | ) | — | — | (727,575 | ) | ||||||||
Contractual discount | (56,970 | ) | — | — | (56,970 | ) | ||||||||
Net receivable from the FDIC | $ | (784,545 | ) | $ | — | $ | — | $ | (784,545 | ) | ||||
Fair value adjustments: | ||||||||||||||
Loans | $ | (22,666 | ) | $ | 919 | $ | (89 | ) | $ | (21,836 | ) | |||
Discount for loans to be repurchased by the FDIC | (2,797 | ) | — | — | (2,797 | ) | ||||||||
Other real estate owned | (3,359 | ) | (1,000 | ) | (113 | ) | (4,472 | ) | ||||||
Core deposit intangible | 64 | — | — | 64 | ||||||||||
Deposits | (54 | ) | — | — | (54 | ) | ||||||||
Other assets and accrued interest receivable | (60 | ) | — | — | (60 | ) | ||||||||
All other | (199 | ) | (15 | ) | 13 | (201 | ) | |||||||
Total fair value adjustments | (29,071 | ) | (96 | ) | (189 | ) | (29,356 | ) | ||||||
Discount | 56,970 | — | — | 56,970 | ||||||||||
Bargain purchase gain, pre-tax | $ | 27,899 | $ | (96 | ) | $ | (189 | ) | $ | 27,614 | ||||
On January 27, 2012, the Bank did not immediately acquire the TCB banking facility, including outstanding lease agreements and furniture, fixtures and equipment. During the third quarter of 2012, the Bank renegotiated a new lease with the landlord related to the sole banking facility and acquired all related data processing equipment and fixed assets totaling approximately $573,000. | ||||||||||||||
RB&T incurred TCB acquisition and integration costs of approximately $1.8 million in 2012. Included in the total integration costs was $724,000 for estimated short-term retention bonuses for certain former TCB employees and short-term incentive bonuses for existing RB&T employees related to the successful branch consolidation and core system conversion. In addition, total integration costs included $642,000 for estimated professional and consulting fees, as well as $471,000 for a long-term incentive program for RB&T employees based upon a two-year profitability target for the overall TCB operation. | ||||||||||||||
First Commercial Bank (“FCB”) | ||||||||||||||
On September 7, 2012, the Bank acquired specific assets and assumed substantially all of the liabilities of FCB, headquartered in Bloomington, Minnesota from the FDIC, as receiver for FCB, pursuant to the terms of a P&A Agreement — Whole Bank; All Deposits, entered into among RB&T, the FDIC as receiver of FCB and the FDIC. On September 10, 2012, FCB’s sole location re-opened as a division of RB&T. | ||||||||||||||
The Bank acquired approximately $215 million in notional assets from the FDIC as receiver for FCB. In addition, the Bank also recorded a receivable from the FDIC for approximately $64 million, which represented the net difference between the assets acquired and the liabilities assumed adjusted for the discount the Bank received for the acquisition. The FDIC paid substantially all of this receivable to the Bank on September 10, 2012. | ||||||||||||||
During the third quarter of 2012, the Bank recorded an initial bargain purchase gain of $27.1 million as a result of the FCB acquisition. The bargain purchase gain was realized because the overall price paid by the Bank was substantially less than the fair value of the FCB assets acquired and liabilities assumed in the acquisition. During the fourth quarter of 2012, the Bank posted adjustments to the acquired assets for its FDIC-assisted acquisition in the determination of day-one fair values and recorded a net increase to the bargain purchase gain of $712,000, as additional information relative to the day-one fair values became available. During the first quarter of 2013, the Bank posted its final recast adjustment which resulted in an increase of $1.3 million to the bargain purchase gain. | ||||||||||||||
Information obtained subsequent to September 7, 2012 and through March 31, 2013 was considered in forming FCB estimates of cash flows and collateral values as of the September 7, 2012 acquisition date, i.e., FCB’s day-one fair values. Day-one fair values for FCB were considered final as of March 31, 2013, which was the date the Bank believed it had received all the information necessary to determine FCB’s day-one fair values. | ||||||||||||||
A summary of the assets acquired and liabilities assumed in the FCB acquisition, including recast adjustments, follows: | ||||||||||||||
First Commercial Bank | ||||||||||||||
September 7, 2012 | ||||||||||||||
As Previously Reported | As Recasted | |||||||||||||
2012 & 2013 | ||||||||||||||
Contractual | Fair Value | Recast | Fair | |||||||||||
(in thousands) | Amount | Adjustments | Adjustments | Value | ||||||||||
Assets acquired : | ||||||||||||||
Cash and cash equivalents | $ | 10,524 | $ | — | $ | — | $ | 10,524 | ||||||
Securities available for sale | 12,002 | — | — | 12,002 | ||||||||||
Loans | 171,744 | (44,214 | ) | 2,821 | 130,351 | |||||||||
Federal Home Loan Bank stock, at cost | 407 | — | — | 407 | ||||||||||
Other real estate owned | 19,360 | (8,389 | ) | (785 | ) | 10,186 | ||||||||
Core deposit intangible | — | 559 | — | 559 | ||||||||||
Discount | (79,412 | ) | 79,412 | — | — | |||||||||
FDIC settlement receivable | 64,326 | — | — | 64,326 | ||||||||||
Other assets and accrued interest receivable | 829 | (95 | ) | — | 734 | |||||||||
Total assets acquired | $ | 199,780 | $ | 27,273 | $ | 2,036 | $ | 229,089 | ||||||
Liabilities assumed: | ||||||||||||||
Deposits: | ||||||||||||||
Non interest-bearing | $ | 7,197 | $ | — | $ | — | $ | 7,197 | ||||||
Interest-bearing | 189,057 | (3 | ) | — | 189,054 | |||||||||
Total deposits | 196,254 | (3 | ) | — | 196,251 | |||||||||
Federal Home Loan Bank advances | 3,002 | 63 | — | 3,065 | ||||||||||
Accrued income taxes payable | — | 9,706 | 712 | 10,418 | ||||||||||
Other liabilities and accrued interest payable | 524 | 101 | — | 625 | ||||||||||
Total liabilities assumed | $ | 199,780 | $ | 9,867 | $ | 712 | $ | 210,359 | ||||||
Equity: | ||||||||||||||
Bargain purchase gain, net of taxes | — | 17,406 | 1,324 | 18,730 | ||||||||||
Total liabilities assumed and equity | $ | 199,780 | $ | 27,273 | $ | 2,036 | $ | 229,089 | ||||||
A summary of the net assets acquired from the FDIC and the estimated fair value adjustments as of the FCB acquisition date follows: | ||||||||||||||
First Commercial Bank | ||||||||||||||
September 7, 2012 | ||||||||||||||
Fourth Quarter | First Quarter | |||||||||||||
As Previously | 2012 Recast | 2013 Recast | As | |||||||||||
(in thousands) | Reported | Adjustments | Adjustments | Recasted | ||||||||||
Assets acquired, at contractual amount | $ | 214,866 | $ | — | $ | — | $ | 214,866 | ||||||
Liabilities assumed, at contractual amount | (199,780 | ) | — | — | (199,780 | ) | ||||||||
Net liabilities assumed per the P&A Agreement | 15,086 | — | — | 15,086 | ||||||||||
Contractual discount | (79,412 | ) | — | — | (79,412 | ) | ||||||||
Net receivable from the FDIC | $ | (64,326 | ) | $ | — | $ | — | $ | (64,326 | ) | ||||
Fair value adjustments: | ||||||||||||||
Loans | $ | (44,214 | ) | $ | 423 | $ | 2,398 | $ | (41,393 | ) | ||||
Other real estate owned | (8,389 | ) | 289 | (1,074 | ) | (9,174 | ) | |||||||
Core deposit intangible | 559 | — | — | 559 | ||||||||||
Deposits | 3 | — | — | 3 | ||||||||||
Federal Home Loan Bank advances | (63 | ) | — | — | (63 | ) | ||||||||
Other assets and accrued interest receivable | (95 | ) | — | — | (95 | ) | ||||||||
All other | (101 | ) | — | — | (101 | ) | ||||||||
Total fair value adjustments | (52,300 | ) | 712 | 1,324 | (50,264 | ) | ||||||||
Discount | 79,412 | — | — | 79,412 | ||||||||||
Bargain purchase gain, pre-tax | $ | 27,112 | $ | 712 | $ | 1,324 | $ | 29,148 | ||||||
On September 7, 2012, the Bank did not immediately acquire the FCB banking facility, including outstanding lease agreements and furniture, fixtures and equipment. The Bank acquired all data processing equipment and fixed assets totaling approximately $328,000 during the fourth quarter of 2012. During the first quarter of 2013, the Bank renegotiated a new lease with the landlord related to the sole banking facility and acquired all related data processing equipment and fixed assets totaling approximately $233,000. | ||||||||||||||
In October 2013, Republic gave the required 90-day regulatory notice of its intentions to close its sole banking center in Minneapolis, Minnesota. The Bank is currently under a lease for this location which is set to expire in April 2015. The Bank repurposed the location as a support office in January 2014 and intends to use the office until the expiration of its lease or until such time that it is able to negotiate with the landlord a buy-out of its future lease obligations. The banking center stopped transacting business at the Minnesota location with deposit customers in January 2014. | ||||||||||||||
The core deposit intangible asset associated with the FCB acquisition was accelerated, effective October 2013, in connection with the Bank’s notice of its intent to repurpose the Minnesota banking center. | ||||||||||||||
FAIR VALUE METHODS ASSOCIATED WITH THE COMPANY’S 2012 FDIC-ASSISTED ACQUISITIONS | ||||||||||||||
The following is a description of the methods used to determine the fair values of significant assets and liabilities at the respective acquisition dates as presented throughout: | ||||||||||||||
Cash and Due from Banks and Interest-bearing Deposits in Banks — The carrying amount of these assets, adjusted for any cash items deemed uncollectible by management, was determined to be a reasonable estimate of fair value based on their short-term nature. | ||||||||||||||
Investment Securities — Investment securities were acquired at fair value from the FDIC. The fair values provided by the FDIC were reviewed and considered reasonable based on management’s understanding of the marketplace. FHLB stock was acquired at cost, as it is not practicable to determine its fair value given restrictions on its marketability. | ||||||||||||||
With the TCB acquisition, the Bank acquired $43 million in securities at fair value. The majority of the securities acquired were subsequently sold or called during the first quarter of 2012, with the Bank realizing a net gain on the corresponding transactions of approximately $56,000. The Bank sold these securities because management determined that the acquired securities did not fit within the Bank’s traditional investment strategies. | ||||||||||||||
With the FCB acquisition, the Bank acquired $12 million in securities at fair value. The nature of these securities acquired was consistent with the Bank’s existing investment portfolio and the Bank elected to retain these securities. | ||||||||||||||
Loans — Fair values for loans were based on a discounted cash flow methodology that considered factors including the type of loan and related collateral, classification status, interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting current market rates for new originations of comparable loans adjusted for the risk inherent in the cash flow estimates. | ||||||||||||||
Certain loans that were deemed to be collateral dependent were valued based on the fair value of the underlying collateral. These estimates were based on the most recently available real estate appraisals with certain adjustments made based on the type of property, age of appraisal, current status of the property and other related factors to estimate the current value of the collateral. | ||||||||||||||
With the TCB acquisition, the Bank purchased approximately $99 million in loans with a recasted fair value of approximately $74 million. During 2012, the FDIC repurchased approximately $20 million of TCB loans at a price of par less the original discount of $3 million that the Bank received when it purchased the loans. Loans repurchased by the FDIC were valued at the contractual amount reduced by the applicable discount. | ||||||||||||||
With the FCB acquisition, the Bank purchased approximately $172 million in loans with a recasted fair value of approximately $130 million. | ||||||||||||||
The composition of acquired loans as of the respective acquisition dates follows: | ||||||||||||||
Tennessee Commerce Bank | ||||||||||||||
January 27, 2012 | ||||||||||||||
As Previously Reported | As Recasted | |||||||||||||
Contractual | Fair Value | 2012 Recast | Fair | |||||||||||
(in thousands) | Amount | Adjustments | Adjustments | Value | ||||||||||
Residential real estate | $ | 22,693 | $ | (4,076 | ) | $ | 243 | $ | 18,860 | |||||
Commercial real estate | 18,646 | (6,971 | ) | 1,988 | 13,663 | |||||||||
Construction & land development | 14,877 | (2,681 | ) | (1,972 | ) | 10,224 | ||||||||
Commercial & industrial | 13,224 | (6,939 | ) | 496 | 6,781 | |||||||||
Home equity | 6,220 | (606 | ) | 24 | 5,638 | |||||||||
Consumer: | ||||||||||||||
Credit cards | 608 | (22 | ) | — | 586 | |||||||||
Overdrafts | 672 | (621 | ) | — | 51 | |||||||||
Other consumer | 2,172 | (750 | ) | 51 | 1,473 | |||||||||
Total loans | $ | 79,112 | $ | (22,666 | ) | $ | 830 | $ | 57,276 | |||||
First Commercial Bank | ||||||||||||||
September 7, 2012 | ||||||||||||||
As Previously Reported | As Recasted | |||||||||||||
2012 & 2013 | ||||||||||||||
Contractual | Fair Value | Recast | Fair | |||||||||||
(in thousands) | Amount | Adjustments | Adjustments | Value | ||||||||||
Residential real estate | $ | 48,409 | $ | (9,634 | ) | $ | 180 | $ | 38,955 | |||||
Commercial real estate | 82,161 | (12,330 | ) | (1,746 | ) | 68,085 | ||||||||
Construction & land development | 14,918 | (6,182 | ) | 316 | 9,052 | |||||||||
Commercial & industrial | 25,475 | (16,060 | ) | 4,120 | 13,535 | |||||||||
Home equity | 404 | (3 | ) | — | 401 | |||||||||
Consumer: | ||||||||||||||
Credit cards | — | — | — | — | ||||||||||
Overdrafts | 6 | — | — | 6 | ||||||||||
Other consumer | 371 | (5 | ) | (49 | ) | 317 | ||||||||
Total loans | $ | 171,744 | $ | (44,214 | ) | $ | 2,821 | $ | 130,351 | |||||
The following tables present the purchased loans that are included within the scope of ASC Topic 310-30, Accounting for Purchased Loans with Deteriorated Credit Quality, at the respective acquisition dates: | ||||||||||||||
Tennessee Commerce Bank | ||||||||||||||
January 27, 2012 | ||||||||||||||
As Previously | 2012 Recast | As | ||||||||||||
(in thousands) | Reported | Adjustments | Recasted | |||||||||||
Contractually-required principal and interest payments | $ | 52,278 | $ | — | $ | 52,278 | ||||||||
Non-accretable difference | (21,308 | ) | 903 | (20,405 | ) | |||||||||
Cash flows expected to be collected | 30,970 | 903 | 31,873 | |||||||||||
Accretable difference | (425 | ) | (73 | ) | (498 | ) | ||||||||
Fair value of loans | $ | 30,545 | $ | 830 | $ | 31,375 | ||||||||
First Commercial Bank | ||||||||||||||
September 7, 2012 | ||||||||||||||
2012 & 2013 | ||||||||||||||
As Previously | Recast | As | ||||||||||||
(in thousands) | Reported | Adjustments | Recasted | |||||||||||
Contractually-required principal and interest payments | $ | 116,940 | $ | 4,213 | $ | 121,153 | ||||||||
Non-accretable difference | (33,523 | ) | 4,640 | (28,883 | ) | |||||||||
Cash flows expected to be collected | 83,417 | 8,853 | 92,270 | |||||||||||
Accretable difference | (2,827 | ) | (1,819 | ) | (4,646 | ) | ||||||||
Fair value of loans | $ | 80,590 | $ | 7,034 | $ | 87,624 | ||||||||
The following table presents a rollforward of the accretable discount on PCI loans over the two years ended December 31, 2013: | ||||||||||||||
Tennessee | First | |||||||||||||
Commerce | Commercial | |||||||||||||
(in thousands) | Bank | Bank | Total | |||||||||||
Day-one 2012 beginning balances, as recasted | $ | (498 | ) | $ | (2,912 | ) | $ | (3,410 | ) | |||||
Transfers between non-accretable and accretable | — | — | — | |||||||||||
Accreted/(Amortized) into interest income on loans, including loan fees | 179 | 136 | 315 | |||||||||||
Other changes | — | — | — | |||||||||||
Balance December 31, 2012 | $ | (319 | ) | $ | (2,776 | ) | $ | (3,095 | ) | |||||
Transfers between non-accretable and accretable | (2,771 | ) | (3,684 | ) | (6,455 | ) | ||||||||
Accreted/(Amortized) into interest income on loans, including loan fees | 1,926 | 4,167 | 6,093 | |||||||||||
Other changes | — | — | — | |||||||||||
Balance December 31, 2013 | $ | (1,164 | ) | $ | (2,293 | ) | $ | (3,457 | ) | |||||
Changes between the accretable and non-accretable components within the day-one measurement periods were deemed to be the result of facts and circumstances that existed the day of the acquisition and became known to the Bank after the fact. Thus, any adjustments between the two categories within the measurement period were deemed to be recast adjustments to the bargain purchase gain. | ||||||||||||||
Core Deposit Intangible — In its assumption of the deposit liabilities for the 2012 FDIC-assisted acquisitions, the Bank believed that the customer relationships associated with these deposits had intangible value, although this value was anticipated to be modest given the nature of the deposit accounts and the anticipated rapid account run-off since acquired. The Bank recorded core deposit intangible assets of $64,000 and $559,000 related to the TCB and FCB acquisitions in 2012. The fair value of these intangible assets were estimated based on a discounted cash flow methodology that gave appropriate consideration to type of deposit, deposit retention, cost of the deposit base and net maintenance cost attributable to customer deposits. The core deposit intangible asset associated with the FCB acquisition was accelerated, effective October 2013, in connection with the Bank’s notice of its intent to repurpose the Minnesota banking center. | ||||||||||||||
Other Real Estate Owned (“OREO”) — OREO is presented at fair value, which is the estimated value that management expects to receive when the property is sold, net of related costs to sell. These estimates were based on the most recently available real estate appraisals, with certain adjustments made based on the type of property, age of appraisal, current status of the property and other related factors to estimate the current value of the property. | ||||||||||||||
The Bank acquired $14 million in OREO related to the TCB acquisition, which was initially reduced by a $3 million fair value adjustment as of January 27, 2012. Subsequent to the first quarter, the Bank posted a net negative recast adjustment of $1 million to OREO to mark several properties to market based on appraisals received. | ||||||||||||||
The Bank acquired $19 million in OREO related to the FCB acquisition, which was initially reduced by an $8 million fair value adjustment as of September 7, 2012. During the fourth quarter of 2012 and the first quarter of 2013, the Bank posted a net negative recast adjustment of $785,000 to OREO to mark several properties to market based on appraisals received. | ||||||||||||||
FHLB Advances — The Bank acquired $3 million in FHLB advances related to the FCB acquisition. The advances were marked to market as of the acquisition date based on early prepayment payoffs (including penalties) received from the FHLB. The Bank paid off the advances during the third quarter of 2012 at no additional loss beyond the fair value adjustment as of the date of acquisition. | ||||||||||||||
Deposits — The fair values used for the demand and savings deposits that comprise the acquisition accounts acquired, by definition, equal the amount payable on demand at the acquisition date. The fair values for time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered to the interest rates embedded on such time deposits. | ||||||||||||||
The Bank assumed $947 million in deposits at estimated fair value in connection with the TCB acquisition. As permitted by the FDIC, within seven days of the acquisition date, RB&T had the option to disclose to TCB’s deposit customers that it was repricing the acquired deposit portfolios. In addition, depositors had the option to withdraw funds without penalty. The Bank chose to reprice all of the acquired TCB interest-bearing deposits, including transaction, time and brokered deposits with an effective date of January 28, 2012. This re-pricing triggered significant time “run-off” consistent with management’s expectations. | ||||||||||||||
The Bank assumed $196 million in deposits at estimated fair value in connection with the FCB acquisition. The Bank chose to re-price all of the acquired FCB time deposits with an effective date of October 1, 2012. This re-pricing triggered time deposit “run-off” consistent with management’s expectations. | ||||||||||||||
The composition of deposits assumed at fair value as of the respective acquisition dates follows: | ||||||||||||||
Tennessee Commerce Bank | ||||||||||||||
January 27, 2012 | ||||||||||||||
Contractual | Fair Value | Recast | Fair | |||||||||||
(in thousands) | Amount | Adjustments | Adjustments | Value | ||||||||||
Demand | $ | 3,190 | $ | — | $ | — | $ | 3,190 | ||||||
Money market accounts | 11,338 | — | — | 11,338 | ||||||||||
Savings | 91,859 | — | — | 91,859 | ||||||||||
Individual retirement accounts* | 15,486 | — | — | 15,486 | ||||||||||
Time deposits, $100,000 and over* | 278,825 | — | — | 278,825 | ||||||||||
Other certificates of deposit* | 108,003 | 14 | — | 108,017 | ||||||||||
Brokered certificates of deposit* | 418,940 | 40 | — | 418,980 | ||||||||||
Total interest-bearing deposits | 927,641 | 54 | — | 927,695 | ||||||||||
Total non interest-bearing deposits | 19,754 | — | — | 19,754 | ||||||||||
Total deposits | $ | 947,395 | $ | 54 | $ | — | $ | 947,449 | ||||||
First Commercial Bank | ||||||||||||||
September 7, 2012 | ||||||||||||||
Contractual | Fair Value | Recast | Fair | |||||||||||
(in thousands) | Amount | Adjustments | Adjustments | Value | ||||||||||
Demand | $ | 4,003 | $ | — | $ | — | $ | 4,003 | ||||||
Money market accounts | 38,187 | — | — | 38,187 | ||||||||||
Savings | — | — | — | — | ||||||||||
Individual retirement accounts* | 16,780 | — | — | 16,780 | ||||||||||
Time deposits, $100,000 and over* | 14,740 | — | — | 14,740 | ||||||||||
Other certificates of deposit* | 62,033 | — | — | 62,033 | ||||||||||
Brokered certificates of deposit* | 53,314 | (3 | ) | — | 53,311 | |||||||||
Total interest-bearing deposits | 189,057 | (3 | ) | — | 189,054 | |||||||||
Total non interest-bearing deposits | 7,197 | — | — | 7,197 | ||||||||||
Total deposits | $ | 196,254 | $ | (3 | ) | $ | — | $ | 196,251 | |||||
* - denotes a time deposit | ||||||||||||||
The Bank accrued FCB acquisition and integration costs of approximately $1.3 million in 2012. Included in the total integration costs was $380,000 for estimated short-term retention bonuses for certain former FCB employees and short-term incentive bonuses for existing RB&T employees related to a successful branch consolidation and core system conversion. In addition, total 2012 integration costs included $710,000 for estimated professional and consulting fees, as well as $199,000 for a long-term incentive program for RB&T employees based upon a two-year profitability target for the overall FCB operation. |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||
3. INVESTMENT SECURITIES | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
The gross amortized cost and fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: | ||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
December 31, 2013 (in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | 97,157 | $ | 409 | $ | (101 | ) | $ | 97,465 | |||||||||||
Private label mortgage backed security | 4,740 | 745 | — | 5,485 | ||||||||||||||||
Mortgage backed securities - residential | 146,087 | 4,288 | (288 | ) | 150,087 | |||||||||||||||
Collateralized mortgage obligations | 164,264 | 1,228 | (1,546 | ) | 163,946 | |||||||||||||||
Mutual fund | 1,000 | — | (5 | ) | 995 | |||||||||||||||
Corporate bonds | 15,015 | 50 | (150 | ) | 14,915 | |||||||||||||||
Total securities available for sale | $ | 428,263 | $ | 6,720 | $ | (2,090 | ) | $ | 432,893 | |||||||||||
Gross | Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
December 31, 2012 (in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | 38,931 | $ | 547 | $ | (6 | ) | $ | 39,472 | |||||||||||
Private label mortgage backed security | 5,684 | 3 | — | 5,687 | ||||||||||||||||
Mortgage backed securities - residential | 190,569 | 6,641 | — | 197,210 | ||||||||||||||||
Collateralized mortgage obligations | 194,427 | 1,580 | (130 | ) | 195,877 | |||||||||||||||
Total securities available for sale | $ | 429,611 | $ | 8,771 | $ | (136 | ) | $ | 438,246 | |||||||||||
Securities held to maturity: | ||||||||||||||||||||
The carrying value, gross unrecognized gains and losses, and fair value of securities held to maturity were as follows: | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Carrying | Unrecognized | Unrecognized | Fair | |||||||||||||||||
December 31, 2013 (in thousands) | Value | Gains | Losses | Value | ||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | 2,311 | $ | 7 | $ | (13 | ) | $ | 2,305 | |||||||||||
Mortgage backed securities - residential | 420 | 43 | — | 463 | ||||||||||||||||
Collateralized mortgage obligations | 42,913 | 387 | (184 | ) | 43,116 | |||||||||||||||
Corporate bonds | 5,000 | — | (116 | ) | 4,884 | |||||||||||||||
Total securities held to maturity | $ | 50,644 | $ | 437 | $ | (313 | ) | $ | 50,768 | |||||||||||
Gross | Gross | |||||||||||||||||||
Carrying | Unrecognized | Unrecognized | Fair | |||||||||||||||||
December 31, 2012 (in thousands) | Value | Gains | Losses | Value | ||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | 4,388 | $ | 27 | $ | — | $ | 4,415 | ||||||||||||
Mortgage backed securities - residential | 827 | 63 | — | 890 | ||||||||||||||||
Collateralized mortgage obligations | 40,795 | 316 | — | 41,111 | ||||||||||||||||
Total securities to be held to maturity | $ | 46,010 | $ | 406 | $ | — | $ | 46,416 | ||||||||||||
At December 31, 2013 and December 31, 2012, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. | ||||||||||||||||||||
Sales of Securities Available for Sale | ||||||||||||||||||||
During 2013, there were no sales of securities available for sale. | ||||||||||||||||||||
During 2012, the Bank recognized gross gains of $56,000 and gross losses of $0 in earnings for sales of securities available for sale. Gross gains were recognized as follows in 2012: | ||||||||||||||||||||
· The Bank sold six available for sale securities acquired in the TCB acquisition with an amortized cost of $35 million, resulting in a pre-tax gain of $53,000 during the first quarter of 2012. | ||||||||||||||||||||
· The Bank realized $3,000 in pre-tax gains related to unamortized discount accretion on $10 million of callable U.S. Government agencies that were called during the first quarter of 2012 before their maturity. | ||||||||||||||||||||
· There were no sales of securities available for sale during the second, third and fourth quarters of 2012. | ||||||||||||||||||||
See additional discussion regarding securities acquired in connection with the TCB acquisition in this section of the filing under Footnote 2 “2012 FDIC-Assisted Acquisitions.” | ||||||||||||||||||||
During 2011, the Bank recognized gross gains of $2.3 million and gross losses of $0 in earnings for sales of securities available for sale. Gross gains were recognized as follows in 2011: | ||||||||||||||||||||
· There were no sales of securities available for sale during the first quarter of 2011. | ||||||||||||||||||||
· During the second quarter of 2011, the Bank sold available for sale mortgage backed securities with an amortized cost of $132 million, resulting in a pre-tax gain of $1.9 million. | ||||||||||||||||||||
· During the third quarter of 2011, the Bank realized $188,000 in pre-tax gains related to unamortized discount accretion on $24 million of callable U.S. Government agencies that were called during the third quarter of 2011 before their maturity. | ||||||||||||||||||||
· Also, during the third quarter of 2011, the Bank sold available for sale mortgage backed securities with an amortized cost of $2 million, resulting in a pre-tax gain of $112,000. | ||||||||||||||||||||
· Finally, during the fourth quarter of 2011, the Bank sold available for sale mortgage backed securities with an amortized cost of $1.5 million, resulting in a pre-tax gain of $77,000. | ||||||||||||||||||||
The tax provision related to the Bank’s realized gains totaled $0, $20,000 and $800,000 for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||
The amortized cost and fair value of the investment securities portfolio by contractual maturity at December 31, 2013 follows. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are detailed separately. | ||||||||||||||||||||
Securities | Securities | |||||||||||||||||||
available for sale | held to maturity | |||||||||||||||||||
Amortized | Fair | Carrying | Fair | |||||||||||||||||
December 31, 2013 (in thousands) | Cost | Value | Value | Value | ||||||||||||||||
Due in one year or less | $ | 24,395 | $ | 24,760 | $ | 508 | $ | 512 | ||||||||||||
Due from one year to five years | 70,259 | 70,237 | 1,803 | 1,793 | ||||||||||||||||
Due from five years to ten years | 17,518 | 17,383 | 5,000 | 4,884 | ||||||||||||||||
Due beyond ten years | — | — | — | — | ||||||||||||||||
Private label mortgage backed security | 4,740 | 5,485 | — | — | ||||||||||||||||
Mortgage backed securities - residential | 146,087 | 150,087 | 420 | 463 | ||||||||||||||||
Collateralized mortgage obligations | 164,264 | 163,946 | 42,913 | 43,116 | ||||||||||||||||
Mutual fund | 1,000 | 995 | — | — | ||||||||||||||||
Total securities | $ | 428,263 | $ | 432,893 | $ | 50,644 | $ | 50,768 | ||||||||||||
Corporate Bonds | ||||||||||||||||||||
During 2013, the Bank purchased $20 million in floating rate corporate bonds with an initial weighted average yield of 1.36%. The bonds, which have a weighted average life of seven years, were rated “investment grade” by accredited rating agencies as of their respective purchase dates. The total fair value of the Bank’s corporate bonds represented 4% of the Bank’s investment portfolio as of December 31, 2013. | ||||||||||||||||||||
Mortgage backed Securities | ||||||||||||||||||||
At December 31, 2013, with the exception of the $5.5 million private label mortgage backed security, all other mortgage backed securities held by the Bank were issued by U.S. government-sponsored entities and agencies, primarily Freddie Mac and Fannie Mae (“FNMA”), institutions that the government has affirmed its commitment to support. At December 31, 2013 and December 31, 2012, there were gross unrealized/unrecognized losses of $1.8 million and $130,000 related to available for sale mortgage backed securities. Because the decline in fair value of these mortgage backed securities is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Bank does not have the intent to sell these mortgage backed securities, and it is likely that it will not be required to sell the securities before their anticipated recovery, management does not consider these securities to be other-than-temporarily impaired. | ||||||||||||||||||||
Market Loss Analysis | ||||||||||||||||||||
Securities with unrealized losses at December 31, 2013 and 2012, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows: | ||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||
December 31, 2013 (in thousands) | Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | 44,041 | $ | (101 | ) | $ | — | $ | — | $ | 44,041 | $ | (101 | ) | ||||||
Mortgage backed securities - residential | 19,494 | (288 | ) | — | — | 19,494 | (288 | ) | ||||||||||||
Collateralized mortgage obligations | 55,927 | (1,546 | ) | — | — | 55,927 | (1,546 | ) | ||||||||||||
Mutual fund | 995 | (5 | ) | — | — | 995 | (5 | ) | ||||||||||||
Corporate bonds | 9,850 | (150 | ) | — | — | 9,850 | (150 | ) | ||||||||||||
Total securities available for sale | $ | 130,307 | $ | (2,090 | ) | $ | — | $ | — | $ | 130,307 | $ | (2,090 | ) | ||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||
Securities held to maturity: | ||||||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | 521 | $ | (13 | ) | $ | — | $ | — | $ | 521 | $ | (13 | ) | ||||||
Collateralized mortgage obligations | 18,686 | (184 | ) | — | — | 18,686 | (184 | ) | ||||||||||||
Corporate bonds | 4,884 | (116 | ) | — | — | 4,884 | (116 | ) | ||||||||||||
Total securities held to maturity | $ | 24,091 | $ | (313 | ) | $ | — | $ | — | $ | 24,091 | $ | (313 | ) | ||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||
December 31, 2012 (in thousands) | Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||
Securities available for sale | ||||||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | 3,588 | $ | (6 | ) | $ | — | $ | — | $ | 3,588 | $ | (6 | ) | ||||||
Collateralized mortgage obligations | 20,508 | (130 | ) | — | — | 20,508 | (130 | ) | ||||||||||||
Total securities available for sale | $ | 24,096 | $ | (136 | ) | $ | — | $ | — | $ | 24,096 | $ | (136 | ) | ||||||
At December 31, 2013, the Bank’s security portfolio consisted of 147 securities, 27 of which were in an unrealized loss position. | ||||||||||||||||||||
At December 31, 2012, the Bank’s security portfolio consisted of 153 securities, seven of which were in an unrealized loss position. | ||||||||||||||||||||
Other-than-temporary impairment (“OTTI”) | ||||||||||||||||||||
Unrealized losses for all investment securities are reviewed to determine whether the losses are “other-than-temporary.” Investment securities are evaluated for OTTI on at least a quarterly basis and more frequently when economic or market conditions warrant such an evaluation to determine whether a decline in value below amortized cost is other-than-temporary. In conducting this assessment, the Bank evaluates a number of factors including, but not limited to: | ||||||||||||||||||||
· The length of time and the extent to which fair value has been less than the amortized cost basis; | ||||||||||||||||||||
· The Bank’s intent to hold until maturity or sell the debt security prior to maturity; | ||||||||||||||||||||
· An analysis of whether it is more likely than not that the Bank will be required to sell the debt security before its anticipated recovery; | ||||||||||||||||||||
· Adverse conditions specifically related to the security, an industry, or a geographic area; | ||||||||||||||||||||
· The historical and implied volatility of the fair value of the security; | ||||||||||||||||||||
· The payment structure of the security and the likelihood of the issuer being able to make payments; | ||||||||||||||||||||
· Failure of the issuer to make scheduled interest or principal payments; | ||||||||||||||||||||
· Any rating changes by a rating agency; and | ||||||||||||||||||||
· Recoveries or additional decline in fair value subsequent to the balance sheet date. | ||||||||||||||||||||
The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value are not necessarily favorable, or that there is a general lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Once a decline in value is determined to be other-than-temporary, the value of the security is reduced and a corresponding charge to earnings is recognized for the anticipated credit losses. | ||||||||||||||||||||
The Bank owns one private label mortgage backed security with a total carrying value of $5.5 million at December 31, 2013. This security, with an average remaining life currently estimated at four years, is mostly backed by “Alternative A” first lien mortgage loans, but also has an insurance “wrap” or guarantee as an added layer of protection to the security holder. This asset is illiquid, and as such, the Bank determined it to be a Level 3 security in accordance with ASC Topic 820, Fair Value Measurements and Disclosures. Based on this determination, the Bank utilized an income valuation model (“present value model”) approach, in determining the fair value of the security. This approach is beneficial for positions that are not traded in active markets or are subject to transfer restrictions, and/or where valuations are adjusted to reflect illiquidity and/or non-transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Management’s best estimate consists of both internal and external support for this investment. | ||||||||||||||||||||
See additional discussion regarding the Bank’s private label mortgage backed security in this section of the filing under Footnote 5 “Fair Value.” | ||||||||||||||||||||
The following table presents a rollforward of the Bank’s private label mortgage backed security credit losses recognized in earnings: | ||||||||||||||||||||
Year ended December 31, (in thousands) | 2013 | 2012 | 2011 | |||||||||||||||||
Balance, beginning of year | $ | 2,142 | $ | 3,455 | $ | 9,757 | ||||||||||||||
Reversal of interest reserve | — | — | (169 | ) | ||||||||||||||||
Recovery of losses previously recorded | (201 | ) | — | — | ||||||||||||||||
Realized pass through of actual losses | — | (1,313 | ) | (6,412 | ) | |||||||||||||||
Amounts related to credit loss for which an other-than-temporary impairment was not previously recognized | — | — | 279 | |||||||||||||||||
Balance, end of year | $ | 1,941 | $ | 2,142 | $ | 3,455 | ||||||||||||||
Further deterioration in economic conditions could cause the Bank to record an additional impairment charge related to credit losses of up to $4.7 million, which is the current gross amortized cost of the Bank’s remaining private label mortgage backed security. | ||||||||||||||||||||
Pledged Investment Securities | ||||||||||||||||||||
Investment securities pledged to secure public deposits, securities sold under agreements to repurchase and securities held for other purposes, as required or permitted by law are as follows: | ||||||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | ||||||||||||||||||
Carrying amount | $ | 224,693 | $ | 334,560 | ||||||||||||||||
Fair value | 224,989 | 334,843 | ||||||||||||||||||
LOANS_AND_ALLOWANCE_FOR_LOAN_L
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES | ' | ||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES | ' | ||||||||||||||||||||||
4. LOANS AND ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||||
The composition of the loan portfolio at period end follows: | |||||||||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | $ | 1,097,795 | $ | 1,145,495 | |||||||||||||||||||
Non owner occupied | 110,809 | 74,539 | |||||||||||||||||||||
Commercial real estate | 773,173 | 714,642 | |||||||||||||||||||||
Commercial real estate - purchased whole loans | 34,186 | 33,531 | |||||||||||||||||||||
Construction & land development | 44,351 | 68,214 | |||||||||||||||||||||
Commercial & industrial | 127,763 | 130,681 | |||||||||||||||||||||
Warehouse lines of credit | 149,576 | 216,576 | |||||||||||||||||||||
Home equity | 226,782 | 241,607 | |||||||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | 9,030 | 8,716 | |||||||||||||||||||||
Overdrafts | 944 | 955 | |||||||||||||||||||||
Other consumer | 15,383 | 15,241 | |||||||||||||||||||||
Total loans | 2,589,792 | 2,650,197 | |||||||||||||||||||||
Less: Allowance for loan losses | 23,026 | 23,729 | |||||||||||||||||||||
Total loans, net | $ | 2,566,766 | $ | 2,626,468 | |||||||||||||||||||
2012 FDIC-Assisted Acquisitions | |||||||||||||||||||||||
The contractual amount of the loans associated with the TCB transaction decreased from $79 million as of the acquisition date to $34 million and $42 million as of December 31, 2013 and 2012. The carrying value of these loans was $57 million as of the acquisition date compared to $29 and $31 million as of December 31, 2013 and 2012. | |||||||||||||||||||||||
The contractual amount of the loans associated with the FCB transaction decreased from $172 million as of the acquisition date to $85 million and $139 million as of December 31, 2013 and 2012. The carrying value of these loans was $130 million as of the acquisition date compared to $68 million and $108 million as of December 31, 2013 and 2012. | |||||||||||||||||||||||
The composition of TCB and FCB loans outstanding at December 31, 2013 and December 31, 2012 follows: | |||||||||||||||||||||||
Tennessee | First | Total | |||||||||||||||||||||
Commerce | Commercial | Acquired | |||||||||||||||||||||
December 31, 2013 (in thousands) | Bank | Bank | Banks | ||||||||||||||||||||
Residential real estate | $ | 10,191 | $ | 19,554 | $ | 29,745 | |||||||||||||||||
Commercial real estate | 13,398 | 43,167 | 56,565 | ||||||||||||||||||||
Construction & land development | 295 | 1,614 | 1,909 | ||||||||||||||||||||
Commercial & industrial | 329 | 2,867 | 3,196 | ||||||||||||||||||||
Home equity | 4,270 | 366 | 4,636 | ||||||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | 205 | — | 205 | ||||||||||||||||||||
Overdrafts | 4 | — | 4 | ||||||||||||||||||||
Other consumer | 73 | 129 | 202 | ||||||||||||||||||||
Total loans | $ | 28,765 | $ | 67,697 | $ | 96,462 | |||||||||||||||||
The above table is inclusive of loans originated subsequent to the respective acquisition dates. | |||||||||||||||||||||||
Tennessee | First | Total | |||||||||||||||||||||
Commerce | Commercial | Acquired | |||||||||||||||||||||
December 31, 2012 (in thousands) | Bank | Bank | Banks | ||||||||||||||||||||
Residential real estate | $ | 12,270 | $ | 32,459 | $ | 44,729 | |||||||||||||||||
Commercial real estate | 8,015 | 61,758 | 69,773 | ||||||||||||||||||||
Construction & land development | 4,235 | 3,301 | 7,536 | ||||||||||||||||||||
Commercial & industrial | 1,284 | 9,405 | 10,689 | ||||||||||||||||||||
Home equity | 4,183 | 385 | 4,568 | ||||||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | 321 | — | 321 | ||||||||||||||||||||
Overdrafts | 1 | 11 | 12 | ||||||||||||||||||||
Other consumer | 655 | 333 | 988 | ||||||||||||||||||||
Total loans | $ | 30,964 | $ | 107,652 | $ | 138,616 | |||||||||||||||||
The tables below reconcile the contractually-required and carrying amounts of acquired TCB and FCB loans at December 31, 2013 and December 31, 2012: | |||||||||||||||||||||||
Tennessee | First | Total | |||||||||||||||||||||
Commerce | Commercial | Acquired | |||||||||||||||||||||
December 31, 2013 (in thousands) | Bank | Bank | Banks | ||||||||||||||||||||
Contractually-required principal | $ | 34,406 | $ | 85,184 | $ | 119,590 | |||||||||||||||||
Non-accretable difference | (3,884 | ) | (15,194 | ) | (19,078 | ) | |||||||||||||||||
Accretable difference | (1,757 | ) | (2,293 | ) | (4,050 | ) | |||||||||||||||||
Total carrying value of loans | $ | 28,765 | $ | 67,697 | $ | 96,462 | |||||||||||||||||
Tennessee | First | Total | |||||||||||||||||||||
Commerce | Commercial | Acquired | |||||||||||||||||||||
December 31, 2012 (in thousands) | Bank | Bank | Banks | ||||||||||||||||||||
Contractually-required principal | $ | 42,188 | $ | 139,156 | $ | 181,344 | |||||||||||||||||
Non-accretable difference | (10,393 | ) | (28,870 | ) | (39,263 | ) | |||||||||||||||||
Accretable difference | (831 | ) | (2,634 | ) | (3,465 | ) | |||||||||||||||||
Total carrying value of loans | $ | 30,964 | $ | 107,652 | $ | 138,616 | |||||||||||||||||
See additional discussion regarding the TCB and FCB acquisitions under Footnote 2 “2012 FDIC-Assisted Acquisitions.” | |||||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||
Bank procedures for assessing and maintaining credit gradings differs slightly depending on whether a new or renewed loan is being underwritten, or whether an existing loan is being re-evaluated for potential credit quality concerns. The latter usually occurs upon receipt of updated financial information, or other pertinent data, that would potentially cause a change in the loan grade. Specific Bank procedures follow: | |||||||||||||||||||||||
· For new and renewed C&I, CRE and construction and land development loans, the Bank’s Credit Administration Department (“CAD”) assigns the credit quality grade to the loan. Loan grades for new C&I, CRE and construction and land development loans with an aggregate credit exposure of $2.0 million or greater are validated by the Senior Loan Committee (“SLC”). | |||||||||||||||||||||||
· The SLC is chaired by the Chief Operating Officer of Commercial Banking (“COO”) and includes the Bank’s Chief Credit Officer (“CCO”) and is attended by the Bank’s Chief Risk Management Officer (“CRMO”), among other executives. | |||||||||||||||||||||||
· Commercial loan officers are responsible for monitoring their respective loan portfolios and reporting any adverse material changes to the CCO. When circumstances warrant a review and possible change in the credit quality grade, loan officers are required to notify the Bank’s CAD. | |||||||||||||||||||||||
· The COO meets monthly with commercial loan officers to discuss the status of past due loans and possible classified loans. These meetings are designed to give loan officers an opportunity to identify an existing loan that should be downgraded. | |||||||||||||||||||||||
· Monthly, members of senior management along with managers of Commercial Lending, CAD, Accounting, Special Assets and Retail Collections attend a Special Asset Committee (“SAC”) meeting. The SAC reviews all C&I and CRE, classified, and impaired loans in excess of $100,000 and discusses the relative trends and current status of these assets. In addition, the SAC reviews all retail residential real estate loans exceeding $750,000 and all home equity loans exceeding $100,000 that are 80-days or more past due or that are on non-accrual status. SAC also reviews the actions taken by management regarding foreclosure mitigation, loan extensions, troubled debt restructures and collateral repossessions. Based on the information reviewed in this meeting, the SAC approves all specific loan loss allocations to be recognized by the Bank within the Allowance analysis. | |||||||||||||||||||||||
· All new and renewed warehouse lending loans are approved by the SLC and Executive Loan Committee. The CAD assigns the initial credit quality grade to warehouse lending loans. Monthly, members of senior management along with the SLC, review warehouse lending activity and monitor key performance indicators such as average days outstanding, average FICO credit report score, average LTV and other important factors. | |||||||||||||||||||||||
On at least an annual basis, the Bank’s internal loan review department analyzes all aggregate lending relationships with outstanding balances greater than $1 million that are internally classified as “Special Mention,” “Substandard,” “Doubtful” or “Loss.” In addition, for all “Pass” rated loans, the Bank analyzes, on at least an annual basis, all aggregate lending relationships with outstanding balances exceeding $4 million. | |||||||||||||||||||||||
The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, public information, and current economic trends. The Bank also considers the fair value of the underlying collateral and the strength and willingness of the guarantor(s). The Bank analyzes loans individually, and based on this analysis, establishes a credit risk rating. The Bank uses the following definitions for risk ratings: | |||||||||||||||||||||||
Risk Grade 1 — Excellent (Pass): Loans fully secured by liquid collateral, such as certificates of deposit, reputable bank letters of credit, or other cash equivalents; loans fully secured by publicly traded marketable securities where there is no impediment to liquidation; or loans to any publicly held company with a current long-term debt rating of A or better. | |||||||||||||||||||||||
Risk Grade 2 — Good (Pass): Loans to businesses that have strong financial statements containing an unqualified opinion from a Certified Public Accounting firm and at least three consecutive years of profits; loans supported by unaudited financial statements containing strong balance sheets, five consecutive years of profits, a five-year satisfactory relationship with the Bank, and key balance sheet and income statement trends that are either stable or positive; loans that are guaranteed or otherwise backed by the full faith and credit of the U.S. government or an agency thereof, such as the Small Business Administration; or loans to publicly held companies with current long-term debt ratings of Baa or better. | |||||||||||||||||||||||
Risk Grade 3 — Satisfactory (Pass): Loans supported by financial statements (audited or unaudited) that indicate average or slightly below average risk and having some deficiency or vulnerability to changing economic conditions; loans with some weakness but offsetting features of other support are readily available; loans that are meeting the terms of repayment, but which may be susceptible to deterioration if adverse factors are encountered. | |||||||||||||||||||||||
Risk Grade 4 — Satisfactory/Monitored (Pass): Loans in this category are considered to be of acceptable credit quality, but contain greater credit risk than Satisfactory loans due to weak balance sheets, marginal earnings or cash flow, or other uncertainties. These loans warrant a higher than average level of monitoring to ensure that weaknesses do not advance. The level of risk in a Satisfactory/Monitored loan is within acceptable underwriting guidelines so long as the loan is given the proper level of management supervision. | |||||||||||||||||||||||
Risk Grade 5 — Special Mention: Loans that possess some credit deficiency or potential weakness that deserves close attention. Such loans pose an unwarranted financial risk that, if not corrected, could weaken the loan by adversely impacting the future repayment ability of the borrower. The key distinctions of a Special Mention classification are that (1) it is indicative of an unwarranted level of risk and (2) credit weaknesses are considered potential and are not defined impairments to the primary source of repayment. | |||||||||||||||||||||||
Purchased Credit Impaired Loans Group 1 (“PCI-1”): To the extent that a PCI loan’s performance does not reflect an increased risk of loss of contractual principal beyond the non-accretable yield established as part of its initial day-one evaluation, such loan would be classified in the Purchased Credit Impaired - Group 1 (“PCI-1”) category; whose credit risk is considered equivalent to a non-PCI “Special Mention” loan within the Bank’s credit rating matrix. PCI-1 loans are considered impaired if, based on current information and events, it is probable that the future estimated cash flows of the loan have deteriorated from management’s initial estimate. Provisions for loan losses are made for impaired PCI-1 loans to further discount the loan and allow its yield to conform to at least management’s initial expectations. Any improvement in the expected performance of a PCI-1 loan would result in a reversal of the provision for loan losses to the extent of prior charges and then an adjustment to accretable yield, which would have a positive impact on interest income. | |||||||||||||||||||||||
Purchased Credit Impaired Loans — Substandard (“PCI-Sub”): If during the Bank’s periodic evaluations of its PCI loan portfolio, management deems a PCI-1 loan to have an increased risk of loss of contractual principal beyond the non-accretable yield established as part of its initial day-one evaluation, such loan would be classified PCI-Substandard (“PCI-Sub”) within the Bank’s credit risk matrix. Management deems the risk of default and overall credit risk of a PCI-Sub loan to be greater than a PCI-1 loan and more analogous to a non-PCI “Substandard” loan within the Bank’s credit rating matrix. PCI-Sub loans are considered to be impaired. Any improvement in the expected performance of a PCI-Sub loan would result in a reversal of the provision for loan losses to the extent of prior charges and then an adjustment to accretable yield, which would have a positive impact on interest income. | |||||||||||||||||||||||
See additional discussion regarding purchased credit impaired loans in this section of the filing under Footnote 2 “2012 FDIC-Assisted Acquisitions.” | |||||||||||||||||||||||
Risk Grade 6 — Substandard: One or more of the following characteristics may be exhibited in loans classified as Substandard: | |||||||||||||||||||||||
· Loans that possess a defined credit weakness. The likelihood that a loan will be paid from the primary source of repayment is uncertain. Financial deterioration is under way and very close attention is warranted to ensure that the loan is collected without loss. | |||||||||||||||||||||||
· Loans are inadequately protected by the current net worth and paying capacity of the obligor. | |||||||||||||||||||||||
· The primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees. | |||||||||||||||||||||||
· Loans have a distinct possibility that the Bank will sustain some loss if deficiencies are not corrected. | |||||||||||||||||||||||
· Unusual courses of action are needed to maintain a high probability of repayment. | |||||||||||||||||||||||
· The borrower is not generating enough cash flow to repay loan principal, however, it continues to make interest payments. | |||||||||||||||||||||||
· The Bank is forced into a subordinated or unsecured position due to flaws in documentation. | |||||||||||||||||||||||
· The Bank is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan. | |||||||||||||||||||||||
· There is significant deterioration in market conditions to which the borrower is highly vulnerable. | |||||||||||||||||||||||
Risk Grade 7 — Doubtful: One or more of the following characteristics may be present in loans classified as Doubtful: | |||||||||||||||||||||||
· Loans have all of the weaknesses of those classified as Substandard. However, based on existing conditions, these weaknesses make full collection of principal highly improbable. | |||||||||||||||||||||||
· The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment. | |||||||||||||||||||||||
· The possibility of loss is high but because of certain important pending factors which may strengthen the loan, loss classification is deferred until the exact status of repayment is known. | |||||||||||||||||||||||
Risk Grade 8 — Loss: Loans are considered uncollectible and of such little value that continuing to carry them as assets is not feasible. Loans will be classified “Loss” when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future. | |||||||||||||||||||||||
For all real estate and consumer loans that do not meet the scope above, the Bank uses a grading system based on delinquency. Loans that are 80 days or more past due, on non-accrual, or are troubled debt restructurings are graded “Substandard.” Occasionally, a real estate loan below scope may be graded as “Special Mention” or “Substandard” if the loan is cross-collateralized with a classified C&I or CRE loan. | |||||||||||||||||||||||
Purchased loans accounted for under ASC Topic 310-20 are accounted for as any other Bank-originated loan, potentially becoming nonaccrual or impaired, as well as being risk rated under the Bank’s standard practices and procedures. In addition, these loans are considered in the determination of the Allowance once day-one fair values are final. | |||||||||||||||||||||||
Management separately monitors PCI loans, and on at least a quarterly basis, reviews them against the factors and assumptions used in determining their day-one fair values. In addition to its quarterly evaluation, a PCI loan is typically reviewed when it is modified or extended, or when material information becomes available to the Bank that provides additional insight regarding the loan’s performance, the status of the borrower, or the quality or value of the underlying collateral. | |||||||||||||||||||||||
If a troubled debt restructuring is performed on a PCI loan, the loan is considered impaired under the applicable TDR accounting standards and transferred out of the PCI population. The loan may require an additional provision for loan losses if its restructured cash flows are less than management’s initial day-one expectations. PCI loans for which the Bank simply chooses to extend the maturity date are generally not considered TDRs and remain in the PCI population. | |||||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||
Based on the Bank’s internal analysis performed, the risk category of loans by class follows: | |||||||||||||||||||||||
Purchased | Purchased | ||||||||||||||||||||||
Credit | Credit | ||||||||||||||||||||||
Impaired | Impaired | Total | |||||||||||||||||||||
December 31, 2013 | Special | Doubtful / | Loans - | Loans - | Rated | ||||||||||||||||||
(in thousands) | Pass | Mention * | Substandard * | Loss | Group 1 | Substandard | Loans** | ||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | $ | — | $ | 27,431 | $ | 10,994 | $ | — | $ | 2,810 | $ | — | $ | 41,235 | |||||||||
Non owner occupied | — | 919 | 1,292 | — | 7,936 | — | 10,147 | ||||||||||||||||
Commercial real estate | 709,610 | 11,125 | 25,296 | — | 27,142 | — | 773,173 | ||||||||||||||||
Commercial real estate - Purchased whole loans | 34,186 | — | — | — | — | — | 34,186 | ||||||||||||||||
Construction & land development | 40,591 | 128 | 2,386 | — | 1,246 | — | 44,351 | ||||||||||||||||
Commercial & industrial | 123,646 | 296 | 2,035 | — | 1,564 | 222 | 127,763 | ||||||||||||||||
Warehouse lines of credit | 149,576 | — | — | — | — | — | 149,576 | ||||||||||||||||
Home equity | — | 250 | 2,014 | — | — | — | 2,264 | ||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | — | — | — | — | — | ||||||||||||||||
Overdrafts | — | — | — | — | — | — | — | ||||||||||||||||
Other consumer | — | 18 | 66 | — | 33 | — | 117 | ||||||||||||||||
Total rated loans | $ | 1,057,609 | $ | 40,167 | $ | 44,083 | $ | — | $ | 40,731 | $ | 222 | $ | 1,182,812 | |||||||||
Purchased | Purchased | ||||||||||||||||||||||
Credit | Credit | ||||||||||||||||||||||
Impaired | Impaired | Total | |||||||||||||||||||||
December 31, 2012 | Special | Doubtful / | Loans - | Loans - | Rated | ||||||||||||||||||
(in thousands) | Pass | Mention* | Substandard* | Loss | Group 1 | Substandard | Loans** | ||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | $ | — | $ | 26,031 | $ | 8,700 | $ | — | $ | 2,413 | $ | — | $ | 37,144 | |||||||||
Non owner occupied | — | 2,616 | 3,350 | — | 20,190 | — | 26,156 | ||||||||||||||||
Commercial real estate | 624,631 | 17,216 | 28,433 | — | 44,362 | — | 714,642 | ||||||||||||||||
Commercial real estate - Purchased whole loans | 33,531 | — | — | — | — | — | 33,531 | ||||||||||||||||
Construction & land development | 61,556 | 1,088 | 3,878 | — | 1,692 | — | 68,214 | ||||||||||||||||
Commercial & industrial | 121,170 | 2,639 | 2,592 | — | 4,280 | — | 130,681 | ||||||||||||||||
Warehouse lines of credit | 216,576 | — | — | — | — | — | 216,576 | ||||||||||||||||
Home equity | — | 648 | 2,346 | — | — | — | 2,994 | ||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | — | — | — | — | — | ||||||||||||||||
Overdrafts | — | — | — | — | — | — | — | ||||||||||||||||
Other consumer | — | 387 | 53 | — | 41 | — | 481 | ||||||||||||||||
Total rated loans | $ | 1,057,464 | $ | 50,625 | $ | 49,352 | $ | — | $ | 72,978 | $ | — | $ | 1,230,419 | |||||||||
* - Special Mention and Substandard loans include $1 million and $6 million at December 31, 2013 and $4 million and $11 million at December 31, 2012, respectively, which were removed from the Purchased Credit Impaired population due to a post-acquisition troubled debt restructuring of the loan. | |||||||||||||||||||||||
** - The above tables exclude all non-classified residential real estate and consumer loans at the respective period ends. The tables also exclude most non classified small C&I and CRE relationships totaling $100,000 or less. These loans are not rated since they are accruing interest and are not past due 80-days-or-more. | |||||||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||
Activity in the Allowance follows: | |||||||||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||
Allowance for loan losses at beginning year | $ | 23,729 | $ | 24,063 | $ | 23,079 | |||||||||||||||||
Charge offs - Traditional Banking | (6,185 | ) | (9,888 | ) | (7,309 | ) | |||||||||||||||||
Charge offs - Refund Anticipation Loans | — | (11,097 | ) | (15,484 | ) | ||||||||||||||||||
Total charge offs | (6,185 | ) | (20,985 | ) | (22,793 | ) | |||||||||||||||||
Recoveries - Traditional Banking | 1,654 | 1,387 | 1,887 | ||||||||||||||||||||
Recoveries - Refund Anticipation Loans | 845 | 4,221 | 3,924 | ||||||||||||||||||||
Total recoveries | 2,499 | 5,608 | 5,811 | ||||||||||||||||||||
Net loan charge offs - Traditional Banking | (4,531 | ) | (8,501 | ) | (5,422 | ) | |||||||||||||||||
Net loan charge offs - Refund Anticipation Loans | 845 | (6,876 | ) | (11,560 | ) | ||||||||||||||||||
Net loan charge offs | (3,686 | ) | (15,377 | ) | (16,982 | ) | |||||||||||||||||
Provision for loan losses - Traditional Banking | 3,828 | 8,167 | 6,406 | ||||||||||||||||||||
Provision for loan losses - Refund Anticipation Loans | (845 | ) | 6,876 | 11,560 | |||||||||||||||||||
Total provision for loan losses | 2,983 | 15,043 | 17,966 | ||||||||||||||||||||
Allowance for loan losses at end of year | $ | 23,026 | $ | 23,729 | $ | 24,063 | |||||||||||||||||
The Allowance calculation includes the following qualitative factors, which are considered in combination with the Bank’s historical loss rates in determining the general loss reserve within the Allowance: | |||||||||||||||||||||||
· Changes in nature, volume and seasoning of the loan portfolio; | |||||||||||||||||||||||
· Changes in experience, ability and depth of lending management and other relevant staff; | |||||||||||||||||||||||
· Changes in the quality of the Bank’s loan review system; | |||||||||||||||||||||||
· Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; | |||||||||||||||||||||||
· Changes in the volume and severity of past due, non-accrual and classified loans; | |||||||||||||||||||||||
· Changes in the value of underlying collateral for collateral-dependent loans; | |||||||||||||||||||||||
· Changes in international, national, regional, and local economic and business conditions and developments that affect the collectibility of the loan portfolio, including the condition of various market segments; | |||||||||||||||||||||||
· The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and | |||||||||||||||||||||||
· The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio. | |||||||||||||||||||||||
Prior to January 1, 2012, the Bank’s Allowance calculation was supported with qualitative factors which included a nominal “unallocated” Allowance component totaling $2.0 million as of December 31, 2011. The Bank believed that historically the “unallocated” allowance properly reflected estimated credit losses determined in accordance with GAAP. The unallocated allowance was primarily related to RB&T’s loan portfolio, which is highly concentrated in the Kentucky and Southern Indiana real estate markets. These markets have remained relatively stable during the recent economic downturn, as compared to other parts of the U.S. With the Bank’s 2012 expansion, its plans to pursue future acquisitions into potentially new markets through FDIC-assisted transactions, and its offering of new loan products, such as mortgage warehouse lines of credit, the Bank revised its methodology to provide a more detailed calculation when estimating the impact of qualitative factors over the Bank’s various loan categories. This methodology change did not have a material impact on the Bank’s provision for loan losses for the year ended December 31, 2012. | |||||||||||||||||||||||
In executing this methodology change, the Bank primarily focused on large groups of smaller-balance homogeneous loans that are collectively evaluated for impairment and are generally not included in the scope of ASC Topic 310-10-35, Accounting by Creditors for Impairment of a Loan. | |||||||||||||||||||||||
The following tables present the activity in the Allowance by portfolio class for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Residential Real Estate | Real Estate - | Warehouse | |||||||||||||||||||||
Year Ended | Owner | Non Owner | Commercial | Purchased | Construction & | Commercial & | Lines of | ||||||||||||||||
December 31, 2013 (in thousands) | Occupied | Occupied | Real Estate | Whole Loans | Land Development | Industrial | Credit | ||||||||||||||||
Beginning balance | $ | 7,006 | $ | 1,049 | $ | 8,843 | $ | 34 | $ | 2,769 | $ | 580 | $ | 541 | |||||||||
Provision for loan losses | 2,411 | 43 | 539 | — | (902 | ) | 876 | (92 | ) | ||||||||||||||
Loans charged off | (1,886 | ) | (241 | ) | (1,190 | ) | — | (619 | ) | (466 | ) | — | |||||||||||
Recoveries | 285 | 172 | 117 | — | 48 | 99 | — | ||||||||||||||||
Ending balance | $ | 7,816 | $ | 1,023 | $ | 8,309 | $ | 34 | $ | 1,296 | $ | 1,089 | $ | 449 | |||||||||
(continued) | |||||||||||||||||||||||
Refund | Consumer | ||||||||||||||||||||||
Home | Anticipation | Credit | Other | ||||||||||||||||||||
Equity | Loans | Cards | Overdrafts | Consumer | Total | ||||||||||||||||||
Beginning balance | $ | 2,348 | $ | — | $ | 210 | $ | 198 | $ | 151 | $ | 23,729 | |||||||||||
Provision for loan losses | 515 | (845 | ) | 202 | 191 | 45 | 2,983 | ||||||||||||||||
Loans charged off | (632 | ) | — | (142 | ) | (601 | ) | (408 | ) | (6,185 | ) | ||||||||||||
Recoveries | 165 | 845 | 19 | 411 | 338 | 2,499 | |||||||||||||||||
Ending balance | $ | 2,396 | $ | — | $ | 289 | $ | 199 | $ | 126 | $ | 23,026 | |||||||||||
Commercial | |||||||||||||||||||||||
Residential Real Estate | Real Estate - | Warehouse | |||||||||||||||||||||
Year Ended | Owner | Non Owner | Commercial | Purchased | Construction & | Commercial & | Lines of | ||||||||||||||||
December 31, 2012 (in thousands) | Occupied | Occupied | Real Estate | Whole Loans | Land Development | Industrial | Credit | ||||||||||||||||
Beginning balance | $ | 5,212 | $ | 1,142 | $ | 7,724 | $ | — | $ | 3,042 | $ | 1,025 | $ | 104 | |||||||||
Allocation of previously unallocated allowance | 1,117 | 146 | 47 | — | — | — | — | ||||||||||||||||
Provision for loan losses | 3,549 | 144 | 2,015 | 34 | 1,545 | (294 | ) | 437 | |||||||||||||||
Loans charged off | (3,128 | ) | (520 | ) | (1,033 | ) | — | (1,922 | ) | (176 | ) | — | |||||||||||
Recoveries | 256 | 137 | 90 | — | 104 | 25 | — | ||||||||||||||||
Ending balance | $ | 7,006 | $ | 1,049 | $ | 8,843 | $ | 34 | $ | 2,769 | $ | 580 | $ | 541 | |||||||||
(continued) | |||||||||||||||||||||||
Refund | Consumer | ||||||||||||||||||||||
Home | Anticipation | Credit | Other | ||||||||||||||||||||
Equity | Loans | Cards | Overdrafts | Consumer | Unallocated* | Total | |||||||||||||||||
Beginning balance | $ | 2,984 | $ | — | $ | 503 | $ | 135 | $ | 227 | $ | 1,965 | $ | 24,063 | |||||||||
Allocation of previously unallocated allowance* | 536 | — | 47 | 17 | 55 | (1,965 | ) | — | |||||||||||||||
Provision for loan losses | 988 | 6,876 | (253 | ) | 92 | (90 | ) | — | 15,043 | ||||||||||||||
Loans charged off | (2,252 | ) | (11,097 | ) | (123 | ) | (468 | ) | (266 | ) | — | (20,985 | ) | ||||||||||
Recoveries | 92 | 4,221 | 36 | 422 | 225 | — | 5,608 | ||||||||||||||||
Ending balance | $ | 2,348 | $ | — | $ | 210 | $ | 198 | $ | 151 | $ | — | $ | 23,729 | |||||||||
* Allocation was made January 1, 2012 based on a methodology change to the Company’s Allowance . | |||||||||||||||||||||||
Subprime Lending | |||||||||||||||||||||||
The Bank has certain classes of loans that are considered to be “subprime” strictly due to the credit score of the borrower at the time of origination. These loans totaled approximately $58 million and $66 million at December 31, 2013 and 2012. Approximately $17 million and $19 million of the outstanding subprime loans at December 31 2013 and 2012 were originated for CRA purposes. Management does not consider these loans to possess significantly higher credit risk due to other stringent underwriting qualifications such as higher debt to income and loan-to-value requirements. | |||||||||||||||||||||||
Non-performing Loans and Non-performing Assets | |||||||||||||||||||||||
Detail of non-performing loans and non-performing assets and select credit quality ratios follows: | |||||||||||||||||||||||
December 31, (dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||
Loans on non-accrual status(1) | $ | 19,104 | $ | 18,506 | $ | 23,306 | |||||||||||||||||
Loans past due 90-days-or-more and still on accrual(2) | 1,974 | 3,173 | — | ||||||||||||||||||||
Total non-performing loans | 21,078 | 21,679 | 23,306 | ||||||||||||||||||||
Other real estate owned | 17,102 | 26,203 | 10,956 | ||||||||||||||||||||
Total non-performing assets | $ | 38,180 | $ | 47,882 | $ | 34,262 | |||||||||||||||||
Credit Quality Ratios | |||||||||||||||||||||||
Non-performing loans to total loans | 0.81 | % | 0.82 | % | 1.02 | % | |||||||||||||||||
Non-performing assets to total loans (including OREO) | 1.46 | % | 1.79 | % | 1.49 | % | |||||||||||||||||
Non-performing assets to total assets | 1.13 | % | 1.41 | % | 1 | % | |||||||||||||||||
(1) Loans on non-accrual status include impaired loans. | |||||||||||||||||||||||
(2) All loans past due 90-days-or-more and still accruing were PCI loans accounted for under ASC 310-30. | |||||||||||||||||||||||
Non-performing loans and non-performing asset balances related to the 2012 FDIC-assisted acquisitions, and included in the tables above at December 31, 2013 and December 31, 2012, are presented in the tables below: | |||||||||||||||||||||||
Tennessee | First | Total | |||||||||||||||||||||
Commerce | Commercial | Acquired | |||||||||||||||||||||
December 31, 2013 (dollars in thousands) | Bank | Bank | Banks | ||||||||||||||||||||
Loans on non-accrual status(1) | $ | 290 | $ | — | $ | 290 | |||||||||||||||||
Loans past due 90 days-or-more and still on accrual(2) | 334 | 1,640 | 1,974 | ||||||||||||||||||||
Total non-performing loans | 624 | 1,640 | 2,264 | ||||||||||||||||||||
Other real estate owned | 371 | 9,092 | 9,463 | ||||||||||||||||||||
Total non-performing assets | $ | 995 | $ | 10,732 | $ | 11,727 | |||||||||||||||||
Credit Quality Ratios - Acquired Banks: | |||||||||||||||||||||||
Non-performing loans to total loans | 2.35 | % | |||||||||||||||||||||
Non-performing assets to total loans (including OREO) | 11.07 | % | |||||||||||||||||||||
(1) Loans on non-accrual status include impaired loans. | |||||||||||||||||||||||
(2) All loans past due 90 days-or-more and still accruing were PCI loans accounted for under ASC 310-30. | |||||||||||||||||||||||
Tennessee | First | Total | |||||||||||||||||||||
Commerce | Commercial | Acquired | |||||||||||||||||||||
December 31, 2012 (dollars in thousands) | Bank | Bank | Banks | ||||||||||||||||||||
Loans on non-accrual status (1) | $ | — | $ | — | $ | — | |||||||||||||||||
Loans past due 90-days-or-more and still on accrual (2) | 801 | 2,372 | 3,173 | ||||||||||||||||||||
Total non-performing loans | 801 | 2,372 | 3,173 | ||||||||||||||||||||
Other real estate owned | 2,100 | 12,398 | 14,498 | ||||||||||||||||||||
Total non-performing assets | $ | 2,901 | $ | 14,770 | $ | 17,671 | |||||||||||||||||
Credit Quality Ratios - Acquired Banks: | |||||||||||||||||||||||
Non-performing loans to total loans | 2.29 | % | |||||||||||||||||||||
Non-performing assets to total loans (including OREO) | 11.54 | % | |||||||||||||||||||||
(1) Loans on non-accrual status include impaired loans. | |||||||||||||||||||||||
(2) All loans past due 90 days-or-more and still accruing were PCI loans accounted for under ASC 310-30. | |||||||||||||||||||||||
See additional discussion regarding the TCB and FCB acquisitions under Footnote 2 “2012 FDIC-Assisted Acquisitions” in this section of the filing. | |||||||||||||||||||||||
The following table presents the recorded investment in non-accrual loans and loans past due 90-days-or-more and still on accrual by class of loans: | |||||||||||||||||||||||
Loans Past Due 90-Days-or-More | |||||||||||||||||||||||
Non-Accrual Loans | and Still Accruing Interest | ||||||||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | $ | 8,538 | $ | 9,298 | $ | 12,183 | $ | 673 | $ | 730 | $ | — | |||||||||||
Non owner occupied | 1,279 | 1,376 | 1,565 | — | — | — | |||||||||||||||||
Commercial real estate | 7,643 | 3,756 | 3,032 | — | 712 | — | |||||||||||||||||
Commercial real estate - purchased whole loans | — | — | — | — | — | — | |||||||||||||||||
Construction & land dev. | 97 | 1,777 | 2,521 | 70 | 531 | — | |||||||||||||||||
Commercial & industrial | 327 | 334 | 373 | 1,231 | 1,200 | — | |||||||||||||||||
Warehouse lines of credit | — | — | — | — | — | — | |||||||||||||||||
Home equity | 1,128 | 1,868 | 3,603 | — | — | — | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | — | — | — | — | |||||||||||||||||
Overdrafts | — | — | — | — | — | — | |||||||||||||||||
Other consumer | 92 | 97 | 29 | — | — | — | |||||||||||||||||
Total | $ | 19,104 | $ | 18,506 | $ | 23,306 | $ | 1,974 | $ | 3,173 | $ | — | |||||||||||
Non-accrual loans and loans past due 90-days-or-more and still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Non-accrual loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and held current for six consecutive months and future payments are reasonably assured. TDRs on non-accrual status are reviewed for return to accrual status on an individual basis, with additional consideration given to performance under the modified terms. Loans past due 90-days-or-more and still on accrual currently only represent PCI loans accounted for under ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. | |||||||||||||||||||||||
Delinquent Loans | |||||||||||||||||||||||
The following tables present the aging of the recorded investment in loans by class of loans: | |||||||||||||||||||||||
30 - 59 | 60 - 89 | Greater than | Total | Total | |||||||||||||||||||
December 31, 2013 | Days | Days | 90 Days | Loans | Loans Not | Total | |||||||||||||||||
(dollars in thousands) | Delinquent | Delinquent | Delinquent* | Delinquent | Delinquent | Loans | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | $ | 1,956 | $ | 733 | $ | 3,668 | $ | 6,357 | $ | 1,091,438 | $ | 1,097,795 | |||||||||||
Non owner occupied | 195 | 967 | 131 | 1,293 | 109,516 | 110,809 | |||||||||||||||||
Commercial real estate | 874 | 384 | 3,940 | 5,198 | 767,975 | 773,173 | |||||||||||||||||
Commercial real estate - purchased whole loans | — | — | — | — | 34,186 | 34,186 | |||||||||||||||||
Construction & land development | 332 | — | 167 | 499 | 43,852 | 44,351 | |||||||||||||||||
Commercial & industrial | — | — | 1,415 | 1,415 | 126,348 | 127,763 | |||||||||||||||||
Warehouse lines of credit | — | — | — | — | 149,576 | 149,576 | |||||||||||||||||
Home equity | 665 | 48 | 397 | 1,110 | 225,672 | 226,782 | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | 87 | 6 | 5 | 98 | 8,932 | 9,030 | |||||||||||||||||
Overdrafts | 159 | — | — | 159 | 785 | 944 | |||||||||||||||||
Other consumer | 67 | 27 | — | 94 | 15,289 | 15,383 | |||||||||||||||||
Total | $ | 4,335 | $ | 2,165 | $ | 9,723 | $ | 16,223 | $ | 2,573,569 | $ | 2,589,792 | |||||||||||
Delinquent loans to total loans | 0.17 | % | 0.08 | % | 0.38 | % | 0.63 | % | |||||||||||||||
30 - 59 | 60 - 89 | Greater than | Total | Total | |||||||||||||||||||
December 31, 2012 | Days | Days | 90 Days | Loans | Loans Not | Total | |||||||||||||||||
(dollars in thousands) | Delinquent | Delinquent | Delinquent * | Delinquent | Delinquent | Loans | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | $ | 2,210 | $ | 1,978 | $ | 4,712 | $ | 8,900 | $ | 1,136,595 | $ | 1,145,495 | |||||||||||
Non owner occupied | 907 | 1,128 | 864 | 2,899 | 71,640 | 74,539 | |||||||||||||||||
Commercial real estate | 103 | 486 | 2,051 | 2,640 | 712,002 | 714,642 | |||||||||||||||||
Commercial real estate - purchased whole loans | — | — | — | — | 33,531 | 33,531 | |||||||||||||||||
Construction & land development | — | 194 | 1,930 | 2,124 | 66,090 | 68,214 | |||||||||||||||||
Commercial & industrial | 222 | 733 | 1,307 | 2,262 | 128,419 | 130,681 | |||||||||||||||||
Warehouse lines of credit | — | — | — | — | 216,576 | 216,576 | |||||||||||||||||
Home equity | 521 | 251 | 882 | 1,654 | 239,953 | 241,607 | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | 60 | 5 | — | 65 | 8,651 | 8,716 | |||||||||||||||||
Overdrafts | 167 | 1 | — | 168 | 787 | 955 | |||||||||||||||||
Other consumer | 102 | 28 | 2 | 132 | 15,109 | 15,241 | |||||||||||||||||
Total | $ | 4,292 | $ | 4,804 | $ | 11,748 | $ | 20,844 | $ | 2,629,353 | $ | 2,650,197 | |||||||||||
Delinquent loans to total loans | 0.16 | % | 0.18 | % | 0.44 | % | 0.78 | % | |||||||||||||||
* - All loans past due 90 days-or-more, excluding PCI loans, as of December 31, 2013 and 2012 were on non-accrual status. | |||||||||||||||||||||||
An aging of the recorded investment in past due loans related to the 2012 FDIC-assisted acquisitions and included in the preceding tables at December 31, 2013 and December 31, 2012, are presented below: | |||||||||||||||||||||||
30 - 59 | 60 - 89 | Greater than | Total | Total | Total | ||||||||||||||||||
December 31, 2013 | Days | Days | 90 Days | Loans | Loans Not | Acquired Bank | |||||||||||||||||
(dollars in thousands) | Delinquent | Delinquent | Delinquent * | Delinquent | Delinquent | Loans | |||||||||||||||||
Residential real estate | $ | 213 | $ | 178 | $ | 673 | $ | 1,064 | $ | 28,681 | $ | 29,745 | |||||||||||
Commercial real estate | 241 | 384 | — | 625 | 55,940 | 56,565 | |||||||||||||||||
Construction & land development | 334 | — | 70 | 404 | 1,505 | 1,909 | |||||||||||||||||
Commercial & industrial | — | — | 1,231 | 1,231 | 1,965 | 3,196 | |||||||||||||||||
Home equity | 178 | — | — | 178 | 4,458 | 4,636 | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | — | — | 205 | 205 | |||||||||||||||||
Overdrafts | 1 | — | — | 1 | 3 | 4 | |||||||||||||||||
Other consumer | 1 | — | — | 1 | 201 | 202 | |||||||||||||||||
Total | $ | 968 | $ | 562 | $ | 1,974 | $ | 3,504 | $ | 92,958 | $ | 96,462 | |||||||||||
Delinquent acquired bank loans to total acquired bank loans | 1 | % | 0.58 | % | 2.05 | % | 3.63 | % | |||||||||||||||
30 - 59 | 60 - 89 | Greater than | Total | Total | Total | ||||||||||||||||||
December 31, 2012 | Days | Days | 90 Days | Loans | Loans Not | Acquired Bank | |||||||||||||||||
(dollars in thousands) | Delinquent | Delinquent | Delinquent * | Delinquent | Delinquent | Loans | |||||||||||||||||
Residential real estate | $ | 159 | $ | 1,430 | $ | 729 | $ | 2,318 | $ | 42,411 | $ | 44,729 | |||||||||||
Commercial real estate | — | 165 | 698 | 863 | 68,910 | 69,773 | |||||||||||||||||
Construction & land development | — | 194 | 531 | 725 | 6,811 | 7,536 | |||||||||||||||||
Commercial & industrial | — | 732 | 1,215 | 1,947 | 8,742 | 10,689 | |||||||||||||||||
Home equity | 83 | — | — | 83 | 4,485 | 4,568 | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | — | — | 321 | 321 | |||||||||||||||||
Overdrafts | — | — | — | — | 12 | 12 | |||||||||||||||||
Other consumer | 4 | 27 | — | 31 | 957 | 988 | |||||||||||||||||
Total | $ | 246 | $ | 2,548 | $ | 3,173 | $ | 5,967 | $ | 132,649 | $ | 138,616 | |||||||||||
Delinquent acquired bank loans to total acquired bank loans | 0.18 | % | 1.84 | % | 2.29 | % | 4.31 | % | |||||||||||||||
* - All loans past due 90 days-or-more, excluding PCI loans, as of December 31, 2013 and 2012 were on non-accrual status. | |||||||||||||||||||||||
See additional discussion regarding the TCB and FCB acquisitions under Footnote 2 “2012 FDIC-Assisted Acquisitions” in this section of the filing. | |||||||||||||||||||||||
The Bank considers the performance of the loan portfolio and its impact on the Allowance. For residential and consumer loan classes, the Bank also evaluates credit quality based on the aging status of the loan (which was previously presented) and by payment activity. The following tables present the recorded investment in residential and consumer loans based on payment activity as of December 31, 2013 and 2012: | |||||||||||||||||||||||
Residential Real Estate | Consumer | ||||||||||||||||||||||
Owner | Non Owner | Home | Credit | Other | |||||||||||||||||||
December 31, 2013 (in thousands) | Occupied | Occupied | Equity | Cards | Overdrafts | Consumer | |||||||||||||||||
Performing | $ | 1,088,584 | $ | 109,530 | $ | 225,654 | $ | 9,030 | $ | 944 | $ | 15,291 | |||||||||||
Non performing | 9,211 | 1,279 | 1,128 | — | — | 92 | |||||||||||||||||
Total | $ | 1,097,795 | $ | 110,809 | $ | 226,782 | $ | 9,030 | $ | 944 | $ | 15,383 | |||||||||||
Residential Real Estate | Consumer | ||||||||||||||||||||||
Owner | Non Owner | Home | Credit | Other | |||||||||||||||||||
December 31, 2012 (in thousands) | Occupied | Occupied | Equity | Cards | Overdrafts | Consumer | |||||||||||||||||
Performing | $ | 1,138,326 | $ | 73,163 | $ | 239,985 | $ | 8,716 | $ | 955 | $ | 16,104 | |||||||||||
Non performing | 10,028 | 1,376 | 1,868 | — | — | 97 | |||||||||||||||||
Total | $ | 1,148,354 | $ | 74,539 | $ | 241,853 | $ | 8,716 | $ | 955 | $ | 16,201 | |||||||||||
Impaired Loans | |||||||||||||||||||||||
The Bank defines impaired loans as follows: | |||||||||||||||||||||||
· All loans internally rated as “Substandard,” “PCI-Sub,” “Doubtful” or “Loss;” | |||||||||||||||||||||||
· All loans on non-accrual status and non-PCI loans past due 90 days-or-more still on accrual; | |||||||||||||||||||||||
· All retail and commercial TDRs; and | |||||||||||||||||||||||
· Any other situation where the full collection of the total amount due for a loan is improbable or otherwise meets the definition of impaired. | |||||||||||||||||||||||
See the section titled “Credit Quality Indicators” in this section of the filing for additional discussion regarding the Bank’s loan classification structure. | |||||||||||||||||||||||
Information regarding the Bank’s impaired loans follows: | |||||||||||||||||||||||
As of and for the years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||
Loans with no allocated allowance for loan losses | $ | 36,721 | $ | 36,325 | $ | 32,171 | |||||||||||||||||
Loans with allocated allowance for loan losses | 71,273 | 69,382 | 45,022 | ||||||||||||||||||||
Total impaired loans | $ | 107,994 | $ | 105,707 | $ | 77,193 | |||||||||||||||||
Amount of the allowance for loan losses allocated | $ | 6,674 | $ | 8,531 | $ | 7,086 | |||||||||||||||||
Average of individually impaired loans during the year | 110,272 | 93,487 | 59,711 | ||||||||||||||||||||
Interest income recognized during impairment | 3,489 | 2,682 | 1,464 | ||||||||||||||||||||
Cash basis interest income recognized | — | — | — | ||||||||||||||||||||
Approximately $32 million and $18 million of impaired loans at December 31, 2013 and December 31, 2012 were loans acquired in the Bank’s 2012 FDIC-assisted acquisitions. Approximately $7 million of the loans acquired during 2012 became classified during 2013 as “impaired” through a troubled debt restructuring. See additional discussion regarding the TCB and FCB acquisitions under Footnote 2 “2012 FDIC-Assisted Acquisitions” in this section of the filing. | |||||||||||||||||||||||
The following tables present the balance in the Allowance and the recorded investment in loans by portfolio class based on impairment method as of December 31, 2013 and December 31, 2012: | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Residential Real Estate | Real Estate - | Warehouse | |||||||||||||||||||||
Owner | Non Owner | Commercial | Purchased | Construction & | Commercial & | Lines of | |||||||||||||||||
December 31, 2013 (in thousands) | Occupied | Occupied | Real Estate | Whole Loans | Land Development | Industrial | Credit | ||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||
Individually evaluated for impairment, excluding PCI loans | $ | 3,606 | $ | 61 | $ | 1,232 | $ | — | $ | 146 | $ | 111 | $ | — | |||||||||
Collectively evaluated for impairment | 4,159 | 672 | 6,474 | 34 | 1,140 | 661 | 449 | ||||||||||||||||
PCI loans with post acquisition impairment | 51 | 290 | 603 | — | 10 | 317 | — | ||||||||||||||||
PCI loans without post acquisition impairment | — | — | — | — | — | — | — | ||||||||||||||||
Total ending allowance for loan losses | $ | 7,816 | $ | 1,023 | $ | 8,309 | $ | 34 | $ | 1,296 | $ | 1,089 | $ | 449 | |||||||||
Loans: | |||||||||||||||||||||||
Impaired loans individually evaluated, excluding PCI loans | $ | 39,211 | $ | 2,061 | $ | 33,519 | $ | — | $ | 2,494 | $ | 4,521 | $ | — | |||||||||
Loans collectively evaluated for impairment | 1,055,774 | 100,812 | 712,512 | 34,186 | 40,611 | 121,456 | 149,576 | ||||||||||||||||
PCI loans with post acquisition impairment | 1,455 | 5,984 | 14,512 | — | 267 | 1,609 | — | ||||||||||||||||
PCI loans without post acquisition impairment | 1,355 | 1,952 | 12,630 | — | 979 | 177 | — | ||||||||||||||||
Total ending loan balance | $ | 1,097,795 | $ | 110,809 | $ | 773,173 | $ | 34,186 | $ | 44,351 | $ | 127,763 | $ | 149,576 | |||||||||
Consumer | |||||||||||||||||||||||
Home | Credit | Other | |||||||||||||||||||||
Equity | Cards | Overdrafts | Consumer | Total | |||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||
Individually evaluated for impairment, excluding PCI loans | $ | 203 | $ | — | $ | — | $ | 43 | $ | 5,402 | |||||||||||||
Collectively evaluated for impairment | 2,193 | 289 | 199 | 82 | 16,352 | ||||||||||||||||||
PCI loans with post acquisition impairment | — | — | — | 1 | 1,272 | ||||||||||||||||||
PCI loans without post acquisition impairment | — | — | — | — | — | ||||||||||||||||||
Total ending allowance for loan losses | $ | 2,396 | $ | 289 | $ | 199 | $ | 126 | $ | 23,026 | |||||||||||||
Loans: | |||||||||||||||||||||||
Impaired loans individually evaluated, excluding PCI loans | $ | 2,264 | $ | — | $ | — | $ | 85 | $ | 84,155 | |||||||||||||
Loans collectively evaluated for impairment | 224,518 | 9,030 | 944 | 15,265 | 2,464,684 | ||||||||||||||||||
PCI loans with post acquisition impairment | — | — | — | 12 | 23,839 | ||||||||||||||||||
PCI loans without post acquisition impairment | — | — | — | 21 | 17,114 | ||||||||||||||||||
Total ending loan balance | $ | 226,782 | $ | 9,030 | $ | 944 | $ | 15,383 | $ | 2,589,792 | |||||||||||||
Commercial | |||||||||||||||||||||||
Residential Real Estate | Real Estate - | Warehouse | |||||||||||||||||||||
Owner | Non Owner | Commercial | Purchased | Construction & | Commercial & | Lines of | |||||||||||||||||
December 31, 2012 (in thousands) | Occupied | Occupied | Real Estate | Whole Loans | Land Development | Industrial | Credit | ||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||
Individually evaluated for impairment, excluding PCI loans | $ | 3,032 | $ | 521 | $ | 2,919 | $ | — | $ | 1,157 | $ | 348 | $ | — | |||||||||
Collectively evaluated for impairment | 3,972 | 527 | 5,924 | 34 | 1,612 | 232 | 541 | ||||||||||||||||
PCI loans with post acquisition impairment | 2 | 1 | — | — | — | — | — | ||||||||||||||||
PCI loans without post acquisition impairment | — | — | — | — | — | — | — | ||||||||||||||||
Total ending allowance for loan losses | $ | 7,006 | $ | 1,049 | $ | 8,843 | $ | 34 | $ | 2,769 | $ | 580 | $ | 541 | |||||||||
Loans: | |||||||||||||||||||||||
Impaired loans individually evaluated, excluding PCI loans | $ | 44,429 | $ | 4,235 | $ | 40,593 | $ | — | $ | 5,268 | $ | 6,972 | $ | — | |||||||||
Loans collectively evaluated for impairment | 1,080,792 | 67,974 | 629,687 | 33,531 | 61,254 | 119,429 | 216,576 | ||||||||||||||||
PCI loans with post acquisition impairment | 136 | 184 | — | — | — | — | — | ||||||||||||||||
PCI loans without post acquisition impairment | 20,138 | 2,146 | 44,362 | — | 1,692 | 4,280 | — | ||||||||||||||||
Total ending loan balance | $ | 1,145,495 | $ | 74,539 | $ | 714,642 | $ | 33,531 | $ | 68,214 | $ | 130,681 | $ | 216,576 | |||||||||
Consumer | |||||||||||||||||||||||
Home | Credit | Other | |||||||||||||||||||||
Equity | Cards | Overdrafts | Consumer | Total | |||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||
Individually evaluated for impairment, excluding PCI loans | $ | 496 | $ | — | $ | — | $ | 55 | $ | 8,528 | |||||||||||||
Collectively evaluated for impairment | 1,852 | 210 | 198 | 96 | 15,198 | ||||||||||||||||||
PCI loans with post acquisition impairment | — | — | — | — | 3 | ||||||||||||||||||
PCI loans without post acquisition impairment | — | — | — | — | — | ||||||||||||||||||
Total ending allowance for loan losses | $ | 2,348 | $ | 210 | $ | 198 | $ | 151 | $ | 23,729 | |||||||||||||
Loans: | |||||||||||||||||||||||
Impaired loans individually evaluated, excluding PCI loans | $ | 3,420 | $ | — | $ | — | $ | 470 | $ | 105,387 | |||||||||||||
Loans collectively evaluated for impairment | 238,187 | 8,716 | 955 | 14,731 | 2,471,832 | ||||||||||||||||||
PCI loans with post acquisition impairment | — | — | — | — | 320 | ||||||||||||||||||
PCI loans without post acquisition impairment | — | — | — | 40 | 72,658 | ||||||||||||||||||
Total ending loan balance | $ | 241,607 | $ | 8,716 | $ | 955 | $ | 15,241 | $ | 2,650,197 | |||||||||||||
The following tables present loans individually evaluated for impairment by class of loans as of December 31, 2013 and 2012. The difference between the “Unpaid Principal Balance” and “Recorded Investment” columns represents life-to-date partial write downs/charge offs taken on individual impaired credits. | |||||||||||||||||||||||
Twelve Months Ended | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Unpaid | Allowance for | Average | Interest | Cash Basis | |||||||||||||||||||
Principal | Recorded | Loan Losses | Recorded | Income | Interest Income | ||||||||||||||||||
December 31, 2013 (in thousands) | Balance | Investment | Allocated | Investment | Recognized | Recognized | |||||||||||||||||
Impaired loans with no related allowance recorded: | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | $ | 7,136 | $ | 6,569 | $ | — | $ | 8,977 | $ | 120 | $ | — | |||||||||||
Non owner occupied | 1,498 | 1,256 | — | 1,520 | 13 | — | |||||||||||||||||
Commercial real estate | 21,886 | 20,953 | — | 21,218 | 693 | — | |||||||||||||||||
Commercial real estate - purchased whole loans | — | — | — | — | — | — | |||||||||||||||||
Construction & land development | 2,087 | 2,087 | — | 2,150 | 103 | — | |||||||||||||||||
Commercial & industrial | 4,367 | 4,258 | — | 3,577 | 258 | — | |||||||||||||||||
Warehouse lines of credit | — | — | — | — | — | — | |||||||||||||||||
Home equity | 1,695 | 1,577 | — | 1,982 | 43 | — | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | — | — | — | — | |||||||||||||||||
Overdrafts | — | — | — | — | — | — | |||||||||||||||||
Other consumer | 18 | 18 | — | 138 | 1 | — | |||||||||||||||||
Impaired loans with an allowance recorded: | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | 34,393 | 34,097 | 3,657 | 34,154 | 939 | — | |||||||||||||||||
Non owner occupied | 6,789 | 6,789 | 351 | 5,104 | 248 | — | |||||||||||||||||
Commercial real estate | 27,080 | 27,078 | 1,835 | 25,724 | 1,017 | — | |||||||||||||||||
Commercial real estate - purchased whole loans | — | — | — | — | — | — | |||||||||||||||||
Construction & land development | 674 | 674 | 156 | 2,048 | 38 | — | |||||||||||||||||
Commercial & industrial | 1,872 | 1,872 | 428 | 2,593 | 11 | — | |||||||||||||||||
Warehouse lines of credit | — | — | — | — | — | — | |||||||||||||||||
Home equity | 688 | 687 | 203 | 999 | 5 | — | |||||||||||||||||
Consumer: | — | ||||||||||||||||||||||
Credit cards | — | — | — | — | — | — | |||||||||||||||||
Overdrafts | — | — | — | — | — | — | |||||||||||||||||
Other consumer | 79 | 79 | 44 | 88 | — | — | |||||||||||||||||
Total impaired loans | $ | 110,262 | $ | 107,994 | $ | 6,674 | $ | 110,272 | $ | 3,489 | $ | — | |||||||||||
Twelve Months Ended | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Unpaid | Allowance for | Average | Interest | Cash Basis | |||||||||||||||||||
Principal | Recorded | Loan Losses | Recorded | Income | Interest Income | ||||||||||||||||||
December 31, 2012 (in thousands) | Balance | Investment | Allocated | Investment | Recognized | Recognized | |||||||||||||||||
Impaired loans with no related allowance recorded: | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | $ | 13,299 | $ | 13,107 | $ | — | $ | 23,397 | $ | 224 | $ | — | |||||||||||
Non owner occupied | 955 | 794 | — | 1,656 | 6 | — | |||||||||||||||||
Commercial real estate | 14,293 | 14,293 | — | 11,130 | 707 | — | |||||||||||||||||
Commercial real estate - purchased whole loans | — | — | — | — | — | — | |||||||||||||||||
Construction & land development | 3,090 | 2,085 | — | 2,883 | 29 | — | |||||||||||||||||
Commercial & industrial | 4,206 | 4,114 | — | 2,653 | 99 | — | |||||||||||||||||
Warehouse lines of credit | — | — | — | — | — | — | |||||||||||||||||
Home equity | 1,753 | 1,546 | — | 858 | 23 | — | |||||||||||||||||
Consumer: | — | ||||||||||||||||||||||
Credit cards | — | — | — | — | — | — | |||||||||||||||||
Overdrafts | — | — | — | — | — | — | |||||||||||||||||
Other consumer | 386 | 386 | — | 219 | 8 | — | |||||||||||||||||
Impaired loans with an allowance recorded: | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | 31,709 | 31,458 | 3,034 | 12,558 | 258 | — | |||||||||||||||||
Non owner occupied | 3,695 | 3,625 | 522 | 2,543 | 100 | — | |||||||||||||||||
Commercial real estate | 26,710 | 26,300 | 2,919 | 27,094 | 909 | — | |||||||||||||||||
Commercial real estate - purchased whole loans | — | — | — | — | — | — | |||||||||||||||||
Construction & land development | 3,416 | 3,183 | 1,157 | 4,318 | 106 | — | |||||||||||||||||
Commercial & industrial | 2,858 | 2,858 | 348 | 2,614 | 173 | — | |||||||||||||||||
Warehouse lines of credit | — | — | — | — | — | — | |||||||||||||||||
Home equity | 1,874 | 1,874 | 496 | 1,543 | 38 | — | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | — | — | — | — | |||||||||||||||||
Overdrafts | — | — | — | — | — | — | |||||||||||||||||
Other consumer | 84 | 84 | 55 | 21 | 2 | — | |||||||||||||||||
Total impaired loans | $ | 108,328 | $ | 105,707 | $ | 8,531 | $ | 93,487 | $ | 2,682 | $ | — | |||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||
A TDR is the situation where, due to a borrower’s financial difficulties, the Bank grants a concession to the borrower that the Bank would not otherwise have considered. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Bank’s internal underwriting policy. | |||||||||||||||||||||||
All TDRs are considered “Impaired” loans, including loans acquired in the Company’s 2012 FDIC-assisted acquisitions and subsequently restructured. The majority of the Bank’s commercial related and construction TDRs involve a restructuring of loan terms such as a reduction in the payment amount to require only interest and escrow (if required) and/or extending the maturity date of the loan. The substantial majority of the Bank’s residential real estate TDRs involve reducing the client’s loan payment through a rate reduction for a set period of time based on the borrower’s ability to service the modified loan payment. | |||||||||||||||||||||||
Management determines whether to classify a TDR as non-performing based on its accrual status prior to modification. Non-accrual loans modified as TDRs remain on non-accrual status and continue to be reported as non-performing loans for a minimum of six months. Accruing loans modified as TDRs are evaluated for non-accrual status based on a current evaluation of the borrower’s financial condition and ability and willingness to service the modified debt. At December 31, 2013 and December 31, 2012, $13 million and $14 million of TDRs were also non-accrual loans. | |||||||||||||||||||||||
Detail of TDRs differentiated by loan type and accrual status follows: | |||||||||||||||||||||||
Troubled Debt | Troubled Debt | Total | |||||||||||||||||||||
Restructurings on | Restructurings on | Troubled Debt | |||||||||||||||||||||
December 31, 2013 (in thousands) | Non-Accrual Status | Accrual Status | Restructurings | ||||||||||||||||||||
Residential real estate | $ | 5,514 | $ | 31,705 | $ | 37,219 | |||||||||||||||||
Commercial real estate | 7,486 | 22,041 | 29,527 | ||||||||||||||||||||
Construction & land development | 97 | 2,608 | 2,705 | ||||||||||||||||||||
Commercial & industrial | 143 | 4,378 | 4,521 | ||||||||||||||||||||
Total troubled debt restructurings | $ | 13,240 | $ | 60,732 | $ | 73,972 | |||||||||||||||||
Troubled Debt | Troubled Debt | Total | |||||||||||||||||||||
Restructurings on | Restructurings on | Troubled Debt | |||||||||||||||||||||
December 31, 2012 (in thousands) | Non-Accrual Status | Accrual Status | Restructurings | ||||||||||||||||||||
Residential real estate | $ | 6,951 | $ | 36,758 | $ | 43,709 | |||||||||||||||||
Commercial real estate | 5,149 | 26,174 | 31,323 | ||||||||||||||||||||
Construction & land development | 1,595 | 2,167 | 3,762 | ||||||||||||||||||||
Commercial & industrial | 269 | 4,244 | 4,513 | ||||||||||||||||||||
Total troubled debt restructurings | $ | 13,964 | $ | 69,343 | $ | 83,307 | |||||||||||||||||
The Bank considers a TDR to be performing to its modified terms if the loan is in accrual status and not past due 30 days or more as of the reporting date. A summary of the categories of TDR loan modifications outstanding and respective performance under modified terms at December 31, 2013 and December 31, 2012 follows: | |||||||||||||||||||||||
Troubled Debt | Troubled Debt | ||||||||||||||||||||||
Restructurings | Restructurings | Total | |||||||||||||||||||||
Performing to | Not Performing to | Troubled Debt | |||||||||||||||||||||
December 31, 2013 (in thousands) | Modified Terms | Modified Terms | Restructurings | ||||||||||||||||||||
Residential real estate loans (including home equity loans): | |||||||||||||||||||||||
Interest only payments | $ | 430 | $ | 671 | $ | 1,101 | |||||||||||||||||
Rate reduction | 26,004 | 4,993 | 30,997 | ||||||||||||||||||||
Principal deferral | 1,840 | 632 | 2,472 | ||||||||||||||||||||
Bankruptcies | 1,247 | 1,402 | 2,649 | ||||||||||||||||||||
Total residential TDRs | 29,521 | 7,698 | 37,219 | ||||||||||||||||||||
Commercial related and construction/land development loans: | |||||||||||||||||||||||
Interest only payments | 6,086 | 1,321 | 7,407 | ||||||||||||||||||||
Rate reduction | 13,958 | 663 | 14,621 | ||||||||||||||||||||
Principal deferral | 8,983 | 5,351 | 14,334 | ||||||||||||||||||||
Bankruptcies | — | 391 | 391 | ||||||||||||||||||||
Total commercial TDRs | 29,027 | 7,726 | 36,753 | ||||||||||||||||||||
Total troubled debt restructurings | $ | 58,548 | $ | 15,424 | $ | 73,972 | |||||||||||||||||
Troubled Debt | Troubled Debt | ||||||||||||||||||||||
Restructurings | Restructurings | Total | |||||||||||||||||||||
Performing to | Not Performing to | Troubled Debt | |||||||||||||||||||||
December 31, 2012 (in thousands) | Modified Terms | Modified Terms | Restructurings | ||||||||||||||||||||
Residential real estate loans (including home equity loans): | |||||||||||||||||||||||
Interest only payments | $ | 813 | $ | 624 | $ | 1,437 | |||||||||||||||||
Rate reduction | 23,789 | 3,919 | 27,708 | ||||||||||||||||||||
Principal deferral | 9,186 | 2,092 | 11,278 | ||||||||||||||||||||
Bankruptcies | 2,224 | 1,093 | 3,317 | ||||||||||||||||||||
Total residential TDRs | 36,012 | 7,728 | 43,740 | ||||||||||||||||||||
Commercial related and construction/land development loans: | |||||||||||||||||||||||
Interest only payments | 5,096 | 342 | 5,438 | ||||||||||||||||||||
Rate reduction | 15,747 | 895 | 16,642 | ||||||||||||||||||||
Principal deferral | 15,640 | 1,595 | 17,235 | ||||||||||||||||||||
Bankruptcies | — | 252 | 252 | ||||||||||||||||||||
Total commercial TDRs | 36,483 | 3,084 | 39,567 | ||||||||||||||||||||
Total troubled debt restructurings | $ | 72,495 | $ | 10,812 | $ | 83,307 | |||||||||||||||||
As of December 31, 2013 and December 31, 2012, 79% and 87% of the Bank’s TDRs were performing according to their modified terms. The Bank had provided $5 million and $7 million of specific reserve allocations to customers whose loan terms have been modified in TDRs as of December 31, 2013 and December 31, 2012. Specific reserve allocations are generally assessed prior to loans being modified as a TDR, as most of these loans migrate from the Bank’s internal watch list and have been specifically provided for or reserved for as part of the Bank’s normal loan loss provisioning methodology. The Bank had no commitments to lend any additional material amounts to its existing TDR relationships at December 31, 2013 and December 31, 2012. | |||||||||||||||||||||||
A summary of the categories of TDR loan modifications that occurred during the years ended December 31, 2013 and 2012 follows: | |||||||||||||||||||||||
Troubled Debt | Troubled Debt | ||||||||||||||||||||||
Restructurings | Restructurings | Total | |||||||||||||||||||||
Year Ended | Performing to | Not Performing to | Troubled Debt | ||||||||||||||||||||
December 31, 2013 (in thousands) | Modified Terms | Modified Terms | Restructurings | ||||||||||||||||||||
Residential real estate loans (including home equity loans): | |||||||||||||||||||||||
Interest only | $ | — | $ | 164 | $ | 164 | |||||||||||||||||
Rate reduction | 6,605 | 935 | 7,540 | ||||||||||||||||||||
Principal deferral | 95 | 157 | 252 | ||||||||||||||||||||
Bankruptcies | 793 | 950 | 1,743 | ||||||||||||||||||||
Total residential TDRs | 7,493 | 2,206 | 9,699 | ||||||||||||||||||||
Commercial related and construction/land development loans: | |||||||||||||||||||||||
Interest only | 3,095 | 143 | 3,238 | ||||||||||||||||||||
Rate reduction | 437 | 184 | 621 | ||||||||||||||||||||
Principal deferral | 3,315 | — | 3,315 | ||||||||||||||||||||
Bankruptcies | — | 168 | 168 | ||||||||||||||||||||
Total commercial TDRs | 6,847 | 495 | 7,342 | ||||||||||||||||||||
Total troubled debt restructurings | $ | 14,340 | $ | 2,701 | $ | 17,041 | |||||||||||||||||
The table above is inclusive of loans which were TDRs at the end of previous periods and were re-modified, e.g. a maturity date extension, during the current year. | |||||||||||||||||||||||
Troubled Debt | Troubled Debt | ||||||||||||||||||||||
Restructurings | Restructurings | Total | |||||||||||||||||||||
Year Ended | Performing to | Not Performing to | Troubled Debt | ||||||||||||||||||||
December 31, 2012 (in thousands) | Modified Terms | Modified Terms | Restructurings | ||||||||||||||||||||
Residential real estate loans (including home equity loans): | |||||||||||||||||||||||
Interest only | $ | — | $ | 624 | $ | 624 | |||||||||||||||||
Rate reduction | 14,011 | 849 | 14,860 | ||||||||||||||||||||
Principal deferral | 6,016 | 1,452 | 7,468 | ||||||||||||||||||||
Bankruptcies | 2,354 | 962 | 3,316 | ||||||||||||||||||||
Total residential TDRs | 22,381 | 3,887 | 26,268 | ||||||||||||||||||||
Commercial related and construction/land development loans: | |||||||||||||||||||||||
Interest only | 3,080 | 342 | 3,422 | ||||||||||||||||||||
Rate reduction | 9,638 | 895 | 10,533 | ||||||||||||||||||||
Principal deferral | 1,582 | 194 | 1,776 | ||||||||||||||||||||
Total commercial TDRs | 14,300 | 1,431 | 15,731 | ||||||||||||||||||||
Total troubled debt restructurings | $ | 36,681 | $ | 5,318 | $ | 41,999 | |||||||||||||||||
The table above is inclusive of loans which were TDRs at the end of previous periods and were re-modified, e.g. a maturity date extension, during the current year. | |||||||||||||||||||||||
As of December 31, 2013 and 2012, 84% and 87% of the Bank’s TDRs that occurred during the years ended December 31, 2013 and 2012 were performing according to their modified terms. The Bank provided $1 million and $5 million in specific reserve allocations to customers whose loan terms were modified in TDRs during 2013 and 2012. As stated above, specific reserves are generally assessed prior to loans being modified as a TDR, as most of these loans migrate from the Bank’s internal watch list and have been specifically reserved for as part of the Bank’s normal reserving methodology. | |||||||||||||||||||||||
There was no significant change between the pre and post modification loan balances at December 31, 2013 and December 31, 2012. | |||||||||||||||||||||||
The following tables present loans by class modified as troubled debt restructurings within the previous twelve months of December 31, 2013 and 2012 and for which there was a payment default during 2013 and 2012: | |||||||||||||||||||||||
Year Ended | Number of | Recorded | |||||||||||||||||||||
December 31, 2013 (dollars in thousands) | Loans | Investment | |||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | 29 | $ | 2,252 | ||||||||||||||||||||
Non owner occupied | — | — | |||||||||||||||||||||
Commercial real estate | 2 | 352 | |||||||||||||||||||||
Commercial real estate - purchased whole loans | — | — | |||||||||||||||||||||
Construction & land development | — | — | |||||||||||||||||||||
Commercial & industrial | 1 | 143 | |||||||||||||||||||||
Warehouse lines of credit | — | — | |||||||||||||||||||||
Home equity | 1 | 10 | |||||||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | |||||||||||||||||||||
Overdrafts | — | — | |||||||||||||||||||||
Other consumer | — | — | |||||||||||||||||||||
Total | 33 | $ | 2,757 | ||||||||||||||||||||
Year Ended | Number of | Recorded | |||||||||||||||||||||
December 31, 2012 (dollars in thousands) | Loans | Investment | |||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | 31 | $ | 2,355 | ||||||||||||||||||||
Non owner occupied | 5 | 1,671 | |||||||||||||||||||||
Commercial real estate | 4 | 1,310 | |||||||||||||||||||||
Commercial real estate - purchased whole loans | — | — | |||||||||||||||||||||
Construction & land development | 2 | 1,154 | |||||||||||||||||||||
Commercial & industrial | — | — | |||||||||||||||||||||
Warehouse lines of credit | — | — | |||||||||||||||||||||
Home equity | — | — | |||||||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | |||||||||||||||||||||
Overdrafts | — | — | |||||||||||||||||||||
Other consumer | — | — | |||||||||||||||||||||
Total | 42 | $ | 6,490 | ||||||||||||||||||||
Refund Anticipation Loans | |||||||||||||||||||||||
Discontinuance of the RAL Product: | |||||||||||||||||||||||
As previously disclosed, effective December 8, 2011, RB&T entered into an agreement with the FDIC resolving its differences regarding the TRS division. RB&T’s resolution with the FDIC was in the form of a Stipulation Agreement and a Consent Order (collectively, the “Agreement”). As part of the Agreement, RB&T and the FDIC settled all matters set out in the FDIC’s Amended Notice of Charges dated May 3, 2011 and the lawsuit filed against the FDIC by RB&T. As required by this settlement, RB&T discontinued offering the RAL product effective April 30, 2012, subsequent to the first quarter 2012 tax season. | |||||||||||||||||||||||
For additional discussion regarding the Agreement, see the Company’s Form 8-K filed with the SEC on December 9, 2011, including Exhibits 10.1 and 10.2. | |||||||||||||||||||||||
The following table details RAL originations and RAL losses for the years ended December 31, 2012 and 2011: | |||||||||||||||||||||||
Year Ended December 31, (in thousands) | 2012 | 2011 | |||||||||||||||||||||
RAL Originations: | |||||||||||||||||||||||
RALs originated and retained on balance sheet | $ | 796,015 | $ | 1,038,862 | |||||||||||||||||||
RAL Losses: | |||||||||||||||||||||||
Losses for RALs retained, net | $ | 6,876 | $ | 11,560 | |||||||||||||||||||
RAL Loss Reserves and Provision for Loan Losses: | |||||||||||||||||||||||
Substantially all RALs issued by RB&T in 2012 and 2011 were made during the first quarter. RALs were generally repaid by the IRS or applicable taxing authority within two weeks of origination. Losses associated with RALs resulted from the IRS not remitting taxpayer refunds to RB&T associated with a particular tax return. This occurred for a number of reasons, including errors in the tax return and tax return fraud which are identified through IRS audits resulting from revenue protection strategies. In addition, RB&T also incurred losses as a result of tax debts not previously disclosed during its underwriting process. | |||||||||||||||||||||||
At March 31st of each applicable year, RB&T reserved for its estimated RAL losses for the year based on funding patterns, information received from the IRS on current year payment processing, projections using RB&T’s internal RAL underwriting criteria applied against prior years’ customer data, and the subjective experience of RB&T management. RALs outstanding 30 days or longer were charged off at the end of each quarter with subsequent collections recorded as recoveries. Since the RAL season was over by the end of April of each year, substantially all uncollected RALs were charged off by June 30th of each year, except for those RALs management deems certain of collection. | |||||||||||||||||||||||
As of December 31, 2012 and 2011, $10.5 million and $14.3 million of total RALs originated remained uncollected (outstanding past their expected funding date from the IRS), representing 1.31% and 1.38% of total gross RALs originated during the respective tax years. Substantially all of these RALs were charged off as of June 30, 2012 and 2011. |
FAIR_VALUE
FAIR VALUE | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
FAIR VALUE | ' | ||||||||||||||||
FAIR VALUE | ' | ||||||||||||||||
5. FAIR VALUE | |||||||||||||||||
Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: | |||||||||||||||||
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | |||||||||||||||||
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||||
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. | |||||||||||||||||
The Bank used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: | |||||||||||||||||
Securities available for sale: Quoted market prices in an active market are available for the Bank’s mutual fund and fall within Level 1 of the fair value hierarchy. For all securities available for sale, excluding the Bank’s mutual fund and its private label mortgage backed security, fair value is typically determined by matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). With the exception of the mutual fund and the private label mortgage backed security, all securities available for sale are classified as Level 2 in the fair value hierarchy. | |||||||||||||||||
The Bank’s private label mortgage backed security remains extremely illiquid, and as such, the Bank classifies this security as a Level 3 security in accordance with ASC Topic 820, “Fair Value Measurements and Disclosures.” Based on this determination, the Bank utilized an income valuation model (present value model) approach, in determining the fair value of this security. | |||||||||||||||||
See in this section of the filing under Footnote 3 “Investment Securities” for additional discussion regarding the Bank’s private label mortgage backed security. | |||||||||||||||||
Mortgage loans held for sale: The fair value of mortgage loans held for sale is determined using quoted secondary market prices. Mortgage loans held for sale are classified as Level 2 in the fair value hierarchy. | |||||||||||||||||
Derivative instruments: Mortgage Banking derivatives used in the ordinary course of business primarily consist of mandatory forward sales contracts (“forward contracts”) and rate lock loan commitments. The fair value of the Bank’s derivative instruments is primarily measured by obtaining pricing from broker-dealers recognized to be market participants. The pricing is derived from market observable inputs that can generally be verified and do not typically involve significant judgment by the Bank. Forward contracts and rate lock loan commitments are classified as Level 2 in the fair value hierarchy. | |||||||||||||||||
Interest rate swap agreements used for interest rate risk management: Interest rate swaps are recorded at fair value on a recurring basis. The Company utilizes interest rate swap agreements as part of the management of interest rate risk to modify the repricing characteristics of certain portions of the Company’s interest-bearing liabilities. The Company values its interest rate swaps using Bloomberg Valuation Service’s derivative pricing functions and therefore classifies such valuations as Level 2. Valuations of these interest rate swaps are also received from the relevant counterparty and validated against internal calculations. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. | |||||||||||||||||
Impaired Loans: Collateral dependent impaired loans generally reflect partial charge-downs to their respective fair value, which is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Collateral dependent loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. | |||||||||||||||||
Other Real Estate Owned: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments may be significant and typically result in a Level 3 classification of the inputs for determining fair value. | |||||||||||||||||
Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Bank. Once the appraisal is received, a member of the Bank’s CAD reviews the assumptions and approaches utilized in the appraisal, as well as the overall resulting fair value in comparison with independent data sources, such as recent market data or industry-wide statistics. On an annual basis, the Bank compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustment, if any, should be made to the appraisal value to arrive at an estimated fair value. | |||||||||||||||||
Mortgage Servicing Rights: On a monthly basis, mortgage servicing rights are evaluated for impairment based upon the fair value of the MSRs as compared to carrying amount. If the carrying amount of an individual grouping exceeds fair value, impairment is recorded and the respective individual tranche is carried at fair value. If the carrying amount of an individual grouping does not exceed fair value, impairment is reversed if previously recognized and the carrying value of the individual tranche is based on the amortization method. The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and that can generally be validated against available market data (Level 2). | |||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Bank has elected the fair value option, are summarized below: | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2013 Using: | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets | Other | Significant | |||||||||||||||
for Identical | Observable | Unobservable | Total | ||||||||||||||
Assets | Inputs | Inputs | Fair | ||||||||||||||
(in thousands) | (Level 1) | (Level 2) | (Level 3) | Value | |||||||||||||
Financial Assets: | |||||||||||||||||
Securities available for sale: | |||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | — | $ | 97,465 | $ | — | $ | 97,465 | |||||||||
Private label mortgage backed security | — | — | 5,485 | 5,485 | |||||||||||||
Mortgage backed securities - residential | — | 150,087 | — | 150,087 | |||||||||||||
Collateralized mortgage obligations | — | 163,946 | — | 163,946 | |||||||||||||
Mutual fund | 995 | — | — | 995 | |||||||||||||
Corporate bonds | — | 14,915 | — | 14,915 | |||||||||||||
Total securities available for sale | $ | 995 | $ | 426,413 | $ | 5,485 | $ | 432,893 | |||||||||
Mortgage loans held for sale | $ | — | $ | 3,506 | $ | — | $ | 3,506 | |||||||||
Rate lock commitments | — | 77 | — | 77 | |||||||||||||
Mandatory forward contracts | — | 12 | — | 12 | |||||||||||||
Interest rate swaps | — | 170 | — | 170 | |||||||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2012 Using: | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets | Other | Significant | |||||||||||||||
for Identical | Observable | Unobservable | Total | ||||||||||||||
Assets | Inputs | Inputs | Fair | ||||||||||||||
(in thousands) | (Level 1) | (Level 2) | (Level 3) | Value | |||||||||||||
Financial Assets: | |||||||||||||||||
Securities available for sale: | |||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | — | $ | 39,472 | $ | — | $ | 39,472 | |||||||||
Private label mortgage backed security | — | — | 5,687 | 5,687 | |||||||||||||
Mortgage backed securities - residential | — | 197,210 | — | 197,210 | |||||||||||||
Collateralized mortgage obligations | — | 195,877 | — | 195,877 | |||||||||||||
Total securities available for sale | $ | — | $ | 432,559 | $ | 5,687 | $ | 438,246 | |||||||||
Mortgage loans held for sale | $ | — | $ | 10,614 | $ | — | $ | 10,614 | |||||||||
Rate lock loan commitments | — | 833 | — | 833 | |||||||||||||
Mandatory forward contracts | — | 47 | — | 47 | |||||||||||||
Private Label Mortgage Backed Security | |||||||||||||||||
The table below presents a reconciliation of the Bank’s private label mortgage backed security. This is the only asset that was measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods ended December 31, 2013, 2012 and 2011: | |||||||||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Balance, beginning of year | $ | 5,687 | $ | 4,542 | $ | 5,124 | |||||||||||
Total gains or losses included in earnings: | |||||||||||||||||
Net impairment loss recognized in earnings | — | — | (279 | ) | |||||||||||||
Net change in unrealized gain/(loss) | 742 | 2,458 | 6,671 | ||||||||||||||
Realized pass through of actual losses | — | (1,313 | ) | (6,412 | ) | ||||||||||||
Recovery of actual losses previously recorded | 201 | — | — | ||||||||||||||
Principal paydowns | (1,145 | ) | — | (562 | ) | ||||||||||||
Balance, end of year | $ | 5,485 | $ | 5,687 | $ | 4,542 | |||||||||||
The Bank’s single private label mortgage backed security is supported by analysis prepared by an independent third party. The third party’s approach to determining fair value involved several steps: 1) detailed collateral analysis of the underlying mortgages, including consideration of geographic location, original loan-to-value and the weighted average FICO credit score of the borrowers; 2) collateral performance projections for each pool of mortgages underlying the security (probability of default, severity of default, and prepayment probabilities) and 3) discounted cash flow modeling. | |||||||||||||||||
There were no transfers into or out of Level 3 assets during the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||
The following tables present quantitative information about recurring Level 3 fair value measurements at December 31, 2013 and 2012: | |||||||||||||||||
Fair | Valuation | ||||||||||||||||
December 31, 2013 (dollars in thousands) | Value | Technique | Unobservable Inputs | Range | |||||||||||||
Private label mortgage backed security | $ | 5,485 | Discounted cash flow | (1) Constant prepayment rate | 2.5% - 6.5% | ||||||||||||
(2) Probability of default | 3.0% - 7.0% | ||||||||||||||||
(2) Loss severity | 55% - 75% | ||||||||||||||||
Fair | Valuation | ||||||||||||||||
December 31, 2012 (dollars in thousands) | Value | Technique | Unobservable Inputs | Range | |||||||||||||
Private label mortgage backed security | $ | 5,687 | Discounted cash flow | Constant prepayment rate | 1.0% - 6.0% | ||||||||||||
Probability of default | 3.5% - 7.0% | ||||||||||||||||
Loss severity | 60% - 70% | ||||||||||||||||
The significant unobservable inputs in the fair value measurement of the Bank’s single private label mortgage backed security are prepayment rates, probability of default and loss severity in the event of default. Significant fluctuations in any of those inputs in isolation would result in a significantly lower/higher fair value measurement. | |||||||||||||||||
Assets measured at fair value on a non-recurring basis are summarized below: | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2013 Using: | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets | Other | Significant | |||||||||||||||
for Identical | Observable | Unobservable | Total | ||||||||||||||
Assets | Inputs | Inputs | Fair | ||||||||||||||
(in thousands) | (Level 1) | (Level 2) | (Level 3) | Value | |||||||||||||
Impaired loans: | |||||||||||||||||
Residential real estate: | |||||||||||||||||
Owner occupied | $ | — | $ | — | $ | 2,020 | $ | 2,020 | |||||||||
Commercial real estate | — | — | 5,488 | 5,488 | |||||||||||||
Home equity | — | — | 1,030 | 1,030 | |||||||||||||
Total impaired loans * | $ | — | $ | — | $ | 8,538 | $ | 8,538 | |||||||||
Other real estate owned: | |||||||||||||||||
Residential real estate | $ | — | $ | — | $ | 1,716 | $ | 1,716 | |||||||||
Commercial real estate | — | — | 507 | 507 | |||||||||||||
Construction & land development | — | — | 6,195 | 6,195 | |||||||||||||
Total other real estate owned | $ | — | $ | — | $ | 8,418 | $ | 8,418 | |||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2012 Using: | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets | Other | Significant | |||||||||||||||
for Identical | Observable | Unobservable | Total | ||||||||||||||
Assets | Inputs | Inputs | Fair | ||||||||||||||
(in thousands) | (Level 1) | (Level 2) | (Level 3) | Value | |||||||||||||
Impaired loans: | |||||||||||||||||
Residential real estate: | |||||||||||||||||
Owner occupied | $ | — | $ | — | $ | 782 | $ | 782 | |||||||||
Non owner occupied | — | — | 1,788 | 1,788 | |||||||||||||
Commercial real estate | — | — | 15,618 | 15,618 | |||||||||||||
Construction & land development | — | — | 1,552 | 1,552 | |||||||||||||
Commercial & industrial | — | — | 182 | 182 | |||||||||||||
Home equity | — | — | 303 | 303 | |||||||||||||
Total impaired loans * | $ | — | $ | — | $ | 20,225 | $ | 20,225 | |||||||||
Other real estate owned: | |||||||||||||||||
Residential real estate | $ | — | $ | — | $ | 1,195 | $ | 1,195 | |||||||||
Commercial real estate | — | — | 1,219 | 1,219 | |||||||||||||
Construction & land development | — | — | 5,161 | 5,161 | |||||||||||||
Total other real estate owned | $ | — | $ | — | $ | 7,575 | $ | 7,575 | |||||||||
Mortgage servicing rights** | $ | — | $ | 3,484 | $ | — | $ | 3,484 | |||||||||
* - The impaired loan balances in the preceding two tables excludes TDRs which are not collateral dependent. The difference between the carrying value and the fair value of impaired loans measured at fair value are reconciled in a subsequent table of this footnote and represents estimated selling costs and loss reserves on such loans. | |||||||||||||||||
** - Mortgage Servicing Rights at fair value only include those tranches which were considered impaired at the reported period end. | |||||||||||||||||
The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2013 and 2012: | |||||||||||||||||
Range | |||||||||||||||||
Fair | Valuation | Unobservable | (Weighted | ||||||||||||||
December 31, 2013 (dollars in thousands) | Value | Technique | Inputs | Average) | |||||||||||||
Impaired loans - commercial real estate | $ | 5,488 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 0% - 30% (19%) | ||||||||||||
Impaired loans - residential real estate | $ | 2,020 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 2% - 22% (7%) | ||||||||||||
Impaired loans - home equity | $ | 1,030 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 0% - 10% (2%) | ||||||||||||
Other real estate owned - residential | $ | 1,716 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 10% - 53% (30%) | ||||||||||||
Other real estate owned - commercial real estate | $ | 507 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 23% - 33% (29%) | ||||||||||||
Other real estate owned - construction & land development | $ | 2,236 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 17% - 58% (43%) | ||||||||||||
$ | 3,959 | Income approach | Adjustments for differences between net operating income expectations | 21% (21%) | |||||||||||||
Range | |||||||||||||||||
Fair | Valuation | Unobservable | (Weighted | ||||||||||||||
December 31, 2012 (dollars in thousands) | Value | Technique | Inputs | Average) | |||||||||||||
Impaired loans - commercial real estate | $ | 15,230 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 0% - 50% (18%) | ||||||||||||
$ | 1,940 | Income approach | Adjustments for differences between net operating income expectations | 12% - 12% (12%) | |||||||||||||
Impaired loans - residential real estate | $ | 2,873 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 2% - 60% (17%) | ||||||||||||
Impaired loans - commercial & industrial | $ | 182 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 0% - 50% (44%) | ||||||||||||
Other real estate owned - residential | $ | 1,195 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 4% - 71% (14%) | ||||||||||||
Other real estate owned - commercial real estate | $ | 1,219 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 1% - 33% (16%) | ||||||||||||
Other real estate owned - real estate construction | $ | 663 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 1% - 54% (35%) | ||||||||||||
$ | 4,498 | Income approach | Adjustments for differences between net operating income expectations | 25% - 25% (25%) | |||||||||||||
Private Label Mortgage Backed Security | |||||||||||||||||
The following section details impairment charges recognized during the period: | |||||||||||||||||
The Bank recorded realized impairment losses related to its single Level 3 private label mortgage backed security as follows: | |||||||||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Net impairment loss recognized in earnings | $ | — | $ | — | $ | 279 | |||||||||||
See in this section of the filing under Footnote 3 “Investment Securities” for additional detail regarding impairment losses. | |||||||||||||||||
Impaired Loans | |||||||||||||||||
Collateral dependent impaired loans are generally measured for impairment using the fair market value for reasonable disposition of the underlying collateral. The Bank’s practice is to obtain new or updated appraisals on the loans subject to the initial impairment review and then to evaluate the need for an update to this value on an as necessary or possibly annual basis thereafter (depending on the market conditions impacting the value of the collateral). The Bank may discount the appraisal amount as necessary for selling costs and past due real estate taxes. If a new or updated appraisal is not available at the time of a loan’s impairment review, the Bank may apply a discount to the existing value of an old appraisal to reflect the property’s current estimated value if it is believed to have deteriorated in either: (i) the physical or economic aspects of the subject property or (ii) material changes in market conditions. The results of the impairment review generally results in a partial charge-off of the loan if fair value less selling costs are less than the loan’s carrying value. Impaired loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method. | |||||||||||||||||
The following section details impairment charges recognized during the period: | |||||||||||||||||
Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans are as follows: | |||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||||||||
Carrying amount of loans measured at fair value | $ | 7,629 | $ | 23,070 | |||||||||||||
Estimated selling costs considered in carrying amount | 909 | 1,839 | |||||||||||||||
Valuation allowance(1) | — | (4,684 | ) | ||||||||||||||
Total fair value | $ | 8,538 | $ | 20,225 | |||||||||||||
(1) – Loans measured at fair value at December 31, 2013 carried no valuation allowance but were charged down to fair value less selling costs. Loans measured at fair value at December 31, 2012 included a valuation allowance for the difference between fair value less selling costs and carrying value. | |||||||||||||||||
Other Real Estate Owned | |||||||||||||||||
Other real estate owned, which is carried at the lower of cost or fair value, is periodically assessed for impairment based on fair value at the reporting date. Fair value is determined from external appraisals using judgments and estimates of external professionals. Many of these inputs are not observable and, accordingly, these measurements are classified as Level 3. The fair value of the Bank’s individual other real estate owned properties exceeded their carrying value at December 31, 2013 and 2012. | |||||||||||||||||
Details of other real estate owned carrying value and write downs follows: | |||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Carrying value of other real estate owned | $ | 17,102 | $ | 26,203 | $ | 10,956 | |||||||||||
Other real estate owned writedowns | 1,824 | 1,719 | 917 | ||||||||||||||
Mortgage Servicing Rights | |||||||||||||||||
MSRs are carried at lower of cost or fair value with fair value determined by MSR tranche. There were no tranches carried at fair value at December 31, 2013, while nine of 21 tranches were carried at fair value at December 31, 2012. Details of the tranches carried at fair value follow: | |||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Outstanding balance | $ | — | $ | 3,829 | $ | 3,615 | |||||||||||
Valuation allowance | — | (345 | ) | (203 | ) | ||||||||||||
Fair value | $ | — | $ | 3,484 | $ | 3,412 | |||||||||||
Year to date charge (credit) to mortgage banking income due to evaluation of value | $ | (345 | ) | $ | 142 | $ | 203 | ||||||||||
Mortgage Loans Held for Sale | |||||||||||||||||
The Bank has elected the fair value option for mortgage loans held for sale. These loans are intended for sale and the Bank believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with Bank policy for such instruments. None of these loans were past due 90-days-or-more nor on nonaccrual as of December 31, 2013 and December 31, 2012. | |||||||||||||||||
As of December 31, 2013 and December 31, 2012, the aggregate fair value, contractual balance (including accrued interest), and gain was as follows: | |||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||||||||
Aggregate fair value | $ | 3,506 | $ | 10,614 | |||||||||||||
Contractual balance | 3,417 | 10,037 | |||||||||||||||
Gain | 89 | 577 | |||||||||||||||
The total amount of gains and losses from changes in fair value included in earnings for 2013, 2012 and 2011 for mortgage loans held for sale are presented in the following table: | |||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Interest income | $ | 471 | $ | 400 | $ | 401 | |||||||||||
Change in fair value | (488 | ) | 421 | 201 | |||||||||||||
Total change in fair value | $ | (17 | ) | $ | 821 | $ | 602 | ||||||||||
The carrying amounts and estimated fair values of financial instruments, at December 31, 2013 and 2012 are as follows: | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2013: | |||||||||||||||||
Total | |||||||||||||||||
Carrying | Fair | ||||||||||||||||
(in thousands) | Value | Level 1 | Level 2 | Level 3 | Value | ||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 170,863 | $ | 170,863 | $ | — | $ | — | $ | 170,863 | |||||||
Securities available for sale | 432,893 | 995 | 426,413 | 5,485 | 432,893 | ||||||||||||
Securities to be held to maturity | 50,644 | — | 50,768 | — | 50,768 | ||||||||||||
Mortgage loans held for sale, at fair value | 3,506 | — | 3,506 | — | 3,506 | ||||||||||||
Loans, net | 2,566,766 | — | — | 2,585,476 | 2,585,476 | ||||||||||||
Federal Home Loan Bank stock | 28,342 | — | — | — | N/A | ||||||||||||
Mortgage servicing rights | 5,409 | — | 7,337 | — | 7,337 | ||||||||||||
Accrued interest receivable | 8,272 | — | 8,272 | — | 8,272 | ||||||||||||
Liabilities: | |||||||||||||||||
Non interest-bearing deposits | 488,642 | — | 488,642 | — | 488,642 | ||||||||||||
Transaction deposits | 1,244,256 | — | 1,244,256 | — | 1,244,256 | ||||||||||||
Time deposits | 257,959 | — | 259,345 | — | 259,345 | ||||||||||||
Securities sold under agreements to repurchase and other short-term borrowings | 165,555 | — | 165,555 | — | 165,555 | ||||||||||||
Federal Home Loan Bank advances | 605,000 | — | 618,064 | — | 618,064 | ||||||||||||
Subordinated note | 41,240 | — | 38,020 | — | 38,020 | ||||||||||||
Accrued interest payable | 1,459 | — | 1,459 | — | 1,459 | ||||||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2012: | |||||||||||||||||
Total | |||||||||||||||||
Carrying | Fair | ||||||||||||||||
(in thousands) | Value | Level 1 | Level 2 | Level 3 | Value | ||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 137,691 | $ | 137,691 | $ | — | $ | — | $ | 137,691 | |||||||
Securities available for sale | 438,246 | — | 432,559 | 5,687 | 438,246 | ||||||||||||
Securities to be held to maturity | 46,010 | — | 46,416 | — | 46,416 | ||||||||||||
Mortgage loans held for sale, at fair value | 10,614 | — | 10,614 | — | 10,614 | ||||||||||||
Loans, net | 2,626,468 | — | — | 2,702,686 | 2,702,686 | ||||||||||||
Federal Home Loan Bank stock | 28,377 | — | — | — | N/A | ||||||||||||
Mortgage servicing rights | 4,777 | — | 5,446 | — | 5,446 | ||||||||||||
Accrued interest receivable | 9,245 | — | 9,245 | — | 9,245 | ||||||||||||
Liabilities: | |||||||||||||||||
Non interest-bearing deposits | 479,046 | — | 479,046 | — | 479,046 | ||||||||||||
Transaction deposits | 1,193,339 | — | 1,193,339 | — | 1,193,339 | ||||||||||||
Time deposits | 310,543 | — | 314,972 | — | 314,972 | ||||||||||||
Securities sold under agreements to repurchase and other short-term borrowings | 250,884 | — | 250,884 | — | 250,884 | ||||||||||||
Federal Home Loan Bank advances | 542,600 | — | 576,158 | — | 576,158 | ||||||||||||
Subordinated note | 41,240 | — | 37,917 | — | 37,917 | ||||||||||||
Accrued interest payable | 1,403 | — | 1,403 | — | 1,403 | ||||||||||||
Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the Bank’s estimates. | |||||||||||||||||
The assumptions used in the estimation of the fair value of the Company’s financial instruments are explained below. Where quoted market prices are not available, fair values are based on estimates using discounted cash flow and other valuation techniques. Discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The following fair value estimates cannot be substantiated by comparison to independent markets and should not be considered representative of the liquidation value of the Company’s financial instruments, but rather a good-faith estimate of the fair value of financial instruments held by the Company. | |||||||||||||||||
The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments: | |||||||||||||||||
Cash and cash equivalents — The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. | |||||||||||||||||
Mortgage loans held for sale — The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification. | |||||||||||||||||
Loans, net of Allowance — The fair value of loans is calculated using discounted cash flows by loan type resulting in a Level 3 classification. The discount rate used to determine the present value of the loan portfolio is an estimated market rate that reflects the credit and interest rate risk inherent in the loan portfolio without considering widening credit spreads due to market illiquidity. The estimated maturity is based on the Bank’s historical experience with repayments adjusted to estimate the effect of current market conditions. The Allowance is considered a reasonable discount for credit risk. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. | |||||||||||||||||
Federal Home Loan Bank stock — It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability. | |||||||||||||||||
Accrued interest receivable/payable — The carrying amounts of accrued interest, due to their short-term nature, approximates fair value resulting in a Level 2 classification. | |||||||||||||||||
Deposits — Fair values for certificates of deposit have been determined using discounted cash flows. The discount rate used is based on estimated market rates for deposits of similar remaining maturities and are classified as Level 2. The carrying amounts of all other deposits, due to their short-term nature, approximate their fair values and are also classified as Level 2. | |||||||||||||||||
Securities sold under agreements to repurchase — The carrying amount for securities sold under agreements to repurchase generally maturing within ninety days approximates its fair value resulting in a Level 2 classification. | |||||||||||||||||
Federal Home Loan Bank advances — The fair value of the FHLB advances is obtained from the FHLB and is calculated by discounting contractual cash flows using an estimated interest rate based on the current rates available to the Company for debt of similar remaining maturities and collateral terms resulting in a Level 2 classification. | |||||||||||||||||
Subordinated note — The fair value for subordinated debentures is calculated using discounted cash flows based upon current market spreads to London Interbank Borrowing Rate (“LIBOR”) for debt of similar remaining maturities and collateral terms resulting in a Level 2 classification. | |||||||||||||||||
The fair value estimates presented herein are based on pertinent information available to management as of the respective period ends. Although management is not aware of any factors that would dramatically affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and, therefore, estimates of fair value may differ significantly from the amounts presented. |
MORTGAGE_BANKING_ACTIVITIES
MORTGAGE BANKING ACTIVITIES | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
MORTGAGE BANKING ACTIVITIES | ' | |||||||||||||
MORTGAGE BANKING ACTIVITIES | ' | |||||||||||||
6. MORTGAGE BANKING ACTIVITIES | ||||||||||||||
Mortgage Banking activities primarily include residential mortgage originations and servicing. | ||||||||||||||
Activity for mortgage loans held for sale was as follows: | ||||||||||||||
December 31, (in thousands) | 2013 | 2012 | ||||||||||||
Balance, beginning of year | $ | 10,614 | $ | 4,392 | ||||||||||
Origination of mortgage loans held for sale | 291,155 | 252,194 | ||||||||||||
Proceeds from the sale of mortgage loans held for sale | (305,242 | ) | (255,670 | ) | ||||||||||
Net gain on sale of mortgage loans held for sale | 6,979 | 9,698 | ||||||||||||
Balance, end of year | $ | 3,506 | $ | 10,614 | ||||||||||
Mortgage loans serviced for others are not reported as assets. The Bank serviced loans for others, primarily FHLMC, totaling $929 million and $893 million at December 31, 2013 and 2012. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and processing foreclosures. Custodial escrow account balances maintained in connection with serviced loans were approximately $6 million and $12 million at December 31, 2013 and 2012. | ||||||||||||||
The following table presents the components of Mortgage Banking income: | ||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | |||||||||||
Net gain realized on sale of mortgage loans held for sale | $ | 8,258 | $ | 8,796 | $ | 3,877 | ||||||||
Net change in fair value of recognized on loans held for sale | (488 | ) | 421 | 201 | ||||||||||
Net change in fair value recognized on rate lock commitments | (756 | ) | 342 | 383 | ||||||||||
Net change in fair value recognized on forward contracts | (35 | ) | 139 | (370 | ) | |||||||||
Net gain recognized | 6,979 | 9,698 | 4,091 | |||||||||||
Loan servicing income | 2,107 | $ | 2,181 | $ | 2,828 | |||||||||
Amortization of mortgage servicing rights | (2,173 | ) | (3,290 | ) | (2,817 | ) | ||||||||
Change in mortgage servicing rights valuation allowance | 345 | (142 | ) | (203 | ) | |||||||||
Net servicing income recognized | 279 | (1,251 | ) | (192 | ) | |||||||||
Total Mortgage Banking income | $ | 7,258 | $ | 8,447 | $ | 3,899 | ||||||||
Activity for capitalized mortgage servicing rights was as follows: | ||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | |||||||||||
Balance, beginning of year | $ | 4,777 | $ | 6,087 | $ | 7,800 | ||||||||
Additions | 2,460 | 2,122 | 1,307 | |||||||||||
Amortized to expense | (2,173 | ) | (3,290 | ) | (2,817 | ) | ||||||||
Change in valuation allowance | 345 | (142 | ) | (203 | ) | |||||||||
Balance, end of year | $ | 5,409 | $ | 4,777 | $ | 6,087 | ||||||||
Activity for the valuation allowance for capitalized mortgage servicing rights was as follows: | ||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | |||||||||||
Balance, beginning of year | $ | (345 | ) | $ | (203 | ) | $ | — | ||||||
Additions | — | (247 | ) | (203 | ) | |||||||||
Reductions credited to operations | 345 | 105 | — | |||||||||||
Balance, end of year | $ | — | $ | (345 | ) | $ | (203 | ) | ||||||
Other information relating to mortgage servicing rights follows: | ||||||||||||||
December 31, (dollars in thousands) | 2013 | 2012 | ||||||||||||
Fair value of mortgage servicing rights | $ | 7,337 | $ | 5,446 | ||||||||||
Prepayment speed range | 105% - 550% | 112% - 550% | ||||||||||||
Discount rate | 10% | 9% | ||||||||||||
Weighted average default rate | 1.50% | 1.50% | ||||||||||||
Weighted average life in years | 6.17 | 3.89 | ||||||||||||
Estimated future amortization expense of the MSR portfolio (net of the impairment charge) follows; however, actual amortization expense will be impacted by loan payoffs and changes in estimated lives that occur during each respective year: | ||||||||||||||
Year | (in thousands) | |||||||||||||
2014 | $ | 1,008 | ||||||||||||
2015 | 986 | |||||||||||||
2016 | 967 | |||||||||||||
2017 | 933 | |||||||||||||
2018 | 710 | |||||||||||||
2019 | 466 | |||||||||||||
2020 | 339 | |||||||||||||
Total | $ | 5,409 | ||||||||||||
Mortgage Banking derivatives used in the ordinary course of business primarily consist of mandatory forward sales contracts and rate lock loan commitments. Mandatory forward contracts represent future commitments to deliver loans at a specified price and date and are used to manage interest rate risk on loan commitments and mortgage loans held for sale. Rate lock loan commitments represent commitments to fund loans at specific rates. These derivatives involve underlying items, such as interest rates, and are designed to transfer risk. Substantially all of these instruments expire within 90 days from the date of issuance. Notional amounts are amounts on which calculations and payments are based, but which do not represent credit exposure, as credit exposure is limited to the amounts required to be received or paid. | ||||||||||||||
Mandatory forward contracts also contain an element of risk in that the counterparties may be unable to meet the terms of such agreements. In the event the counterparties fail to deliver commitments or are unable to fulfill their obligations, the Bank could potentially incur significant additional costs by replacing the positions at then current market rates. The Bank manages its risk of exposure by limiting counterparties to those banks and institutions deemed appropriate by management and the Board of Directors. The Bank does not expect any counterparty to default on their obligations and therefore, the Bank does not expect to incur any cost related to counterparty default. | ||||||||||||||
The Bank is exposed to interest rate risk on loans held for sale and rate lock loan commitments. As market interest rates fluctuate, the fair value of mortgage loans held for sale and rate lock commitments will fluctuate. To offset this interest rate risk, the Bank enters into derivatives such as mandatory forward contracts to sell loans. The fair value of mandatory forward contracts will fluctuate as market interest rates fluctuate, and the change in the value of these instruments is expected to largely, though not entirely, offset the change in fair value of loans held for sale and rate lock commitments. The objective of this activity is to minimize the exposure to losses on rate loan lock commitments and loans held for sale due to market interest rate fluctuations. The net effect of derivatives on earnings will depend on risk management activities and a variety of other factors, including market interest rate volatility, the amount of rate lock commitments that close, the ability to fill the forward contracts before expiration, and the time period required to close and sell loans. | ||||||||||||||
The following table includes the notional amounts and fair values of mortgage loans held for sale and mortgage banking derivatives as of the period ends presented: | ||||||||||||||
December 31, (in thousands) | 2013 | 2012 | ||||||||||||
Notional | Fair Value | Notional | Fair Value | |||||||||||
Amount | Amount | |||||||||||||
Included in Mortgage loans held for sale: | ||||||||||||||
Mortgage loans held for sale | $ | 3,417 | $ | 3,506 | $ | 10,037 | $ | 10,614 | ||||||
Included in other assets: | ||||||||||||||
Rate lock loan commitments | $ | 4,393 | $ | 77 | $ | 27,468 | $ | 833 | ||||||
Mandatory forward contracts | 5,571 | 12 | 36,675 | 47 | ||||||||||
Total included in other assets | $ | 9,964 | $ | 89 | $ | 64,143 | $ | 880 | ||||||
INTEREST_RATE_SWAPS
INTEREST RATE SWAPS | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INTEREST RATE SWAPS | ' | ||||||||||
INTEREST RATE SWAPS | ' | ||||||||||
7. INTEREST RATE SWAPS | |||||||||||
During the fourth quarter of 2013, the Bank entered into two interest rate swap agreements as part of its interest rate risk management strategy. The Bank designated the swaps as cash flow hedges intended to reduce the variability in cash flows attributable to either FHLB advances tied to the three-month LIBOR or the overall changes in cash flows on certain money market deposit accounts. The counterparty for both swaps met the Bank’s credit standards and the Bank believes that the credit risk inherent in the swap contracts is not significant. At December 31, 2013, the Bank had no cash pledged as collateral for these swaps. | |||||||||||
The swaps were determined to be fully effective during all periods presented; therefore, no amount of ineffectiveness was included in net income. The aggregate fair value of the swaps is recorded in other assets with changes in fair value recorded in OCI. The amount included in accumulated OCI would be reclassified to current earnings should the hedge no longer be considered effective. The Bank expects the hedges to remain fully effective during the remaining term of the swaps. | |||||||||||
Summary information about swaps designated as cash flow hedges as of December 31, 2013 follows: | |||||||||||
December 31, 2013 (dollars in thousands) | |||||||||||
Notional amount | $ | 20,000 | |||||||||
Weighted average pay rate | 2.25 | % | |||||||||
Weighted average receive rate | 0.21 | % | |||||||||
Weighted average maturity in years | 7 | ||||||||||
Unrealized gain | $ | 170 | |||||||||
Interest expense recorded on these swap transactions totaled $23,000 during 2013, with $16,000 reported as a component of interest expense on deposits and $7,000 reported as interest expense on FHLB Advances. | |||||||||||
The following table presents the net gains recorded in accumulated OCI and the consolidated statements of income relating to the swaps for the year ended December 31, 2013: | |||||||||||
December 31, 2013 (in thousands) | Amount of Gain | Amount of Gain | Amount of Gain | ||||||||
Recognized in | Reclassified from | Recognized in | |||||||||
Other | Accumulated Other | Income on | |||||||||
Comprehensive | Comprehensive | Derivative | |||||||||
Income on | Income on Derivative | (Ineffective Portion) | |||||||||
Derivative | (Effective Portion) | ||||||||||
(Effective Portion) | |||||||||||
Cash flow hedges - interest rate swaps | $ | 111 | $ | — | $ | — | |||||
The following table reflects the cash flow hedges included in the consolidated balance sheet as of December 31, 2013: | |||||||||||
December 31, 2013 (in thousands) | Notional | Fair Value | |||||||||
Amount | |||||||||||
Included in other assets: | |||||||||||
Cash flow hedges - interest rate swaps | $ | 20,000 | $ | 170 | |||||||
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
PREMISES AND EQUIPMENT | ' | ||||||||||
PREMISES AND EQUIPMENT | ' | ||||||||||
8. PREMISES AND EQUIPMENT | |||||||||||
A summary of the cost and accumulated depreciation of premises and equipment follows: | |||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||
Land | $ | 3,967 | $ | 3,967 | |||||||
Buildings and improvements | 28,968 | 27,074 | |||||||||
Furniture, fixtures and equipment | 35,011 | 37,460 | |||||||||
Leasehold improvements | 15,475 | 12,118 | |||||||||
Construction in progress | 173 | 106 | |||||||||
Total premises and equipment | 83,594 | 80,725 | |||||||||
Less: Accumulated depreciation and amortization | 50,686 | 47,528 | |||||||||
Premises and equipment, net | $ | 32,908 | $ | 33,197 | |||||||
Depreciation expense related to premises and equipment follows: | |||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||
Depreciation expense | $ | 5,311 | $ | 5,372 | $ | 5,738 | |||||
GOODWILL_AND_CORE_DEPOSIT_INTA
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | ' | |||||||||||||
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | ' | |||||||||||||
9. GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | ||||||||||||||
A progression of the balance for goodwill follows: | ||||||||||||||
December 31, (in thousands) | 2013 | 2012 | ||||||||||||
Beginning of year | $ | 10,168 | $ | 10,168 | ||||||||||
Acquired goodwill | — | — | ||||||||||||
Impairment | — | — | ||||||||||||
End of year | $ | 10,168 | $ | 10,168 | ||||||||||
The Bank did not record goodwill associated with its 2012 FDIC-assisted acquisitions. The goodwill balance relates entirely to the Traditional Banking segment. | ||||||||||||||
Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At September 30, 2013, the Company’s traditional bank reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the carrying value of the reporting unit did not exceed its fair value. Therefore, the Company did not complete the two-step impairment test as of September 30, 2013. | ||||||||||||||
The Bank initially recorded $623,000 in core deposit intangibles (“CDI”) associated with its 2012 acquisitions. The CDI related to the FCB acquisition was initially recorded for $559,000 in September 2012 and amortized on an accelerated basis through December 31, 2013. FCB related CDI totaled $489,000 at December 31, 2012 and was fully amortized during 2013. Based on the nature of the TCB deposits acquired, the Bank amortized all $64,000 in CDI related to the TCB acquisition during 2012. | ||||||||||||||
Detail of core deposit intangibles, which are included in other assets in the Company’s consolidated balance sheets, follows: | ||||||||||||||
2013 | 2012 | |||||||||||||
Years ended December 31, (in thousands) | Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||
Core deposit intangibles | $ | 1,160 | $ | 1,160 | $ | 1,160 | $ | 650 | ||||||
Aggregate core deposit intangible amortization expense follows: | ||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | |||||||||||
Aggregate core deposit intangible amortization expense | $ | 510 | $ | 171 | $ | 59 | ||||||||
DEPOSITS
DEPOSITS | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
DEPOSITS | ' | ||||||||||
DEPOSITS | ' | ||||||||||
10. DEPOSITS | |||||||||||
Ending deposit balances at December 31, 2013 and 2012 were as follows: | |||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||
Demand | $ | 651,134 | $ | 580,900 | |||||||
Money market accounts | 479,569 | 514,698 | |||||||||
Brokered money market accounts | 35,533 | 35,596 | |||||||||
Savings | 78,020 | 62,145 | |||||||||
Individual retirement accounts* | 28,767 | 32,491 | |||||||||
Time deposits, $100,000 and over* | 67,255 | 80,906 | |||||||||
Other certificates of deposit* | 75,516 | 100,036 | |||||||||
Brokered certificates of deposit*(1) | 86,421 | 97,110 | |||||||||
Total interest-bearing deposits | 1,502,215 | 1,503,882 | |||||||||
Total non interest-bearing deposits | 488,642 | 479,046 | |||||||||
Total deposits | $ | 1,990,857 | $ | 1,982,928 | |||||||
(*) — Represents a time deposit. | |||||||||||
(1) — Includes brokered deposits less than, equal to and greater than $100,000. | |||||||||||
The composition of deposits outstanding at December 31, 2013 and 2012 related to the Company’s 2012 FDIC-assisted acquisitions were as follows: | |||||||||||
Tennessee | First | Total | |||||||||
Commerce | Commercial | Acquired | |||||||||
December 31, 2013 (in thousands) | Bank | Bank | Banks | ||||||||
Demand | $ | 1,072 | $ | 2,674 | $ | 3,746 | |||||
Money market accounts | 2,325 | 4,677 | 7,002 | ||||||||
Savings | 4,069 | — | 4,069 | ||||||||
Individual retirement accounts* | 643 | 729 | 1,372 | ||||||||
Time deposits, $100,000 and over* | 3,947 | 1,475 | 5,422 | ||||||||
Other certificates of deposit* | 2,293 | 3,168 | 5,461 | ||||||||
Brokered certificates of deposit*(1) | 2,758 | 2,581 | 5,339 | ||||||||
Total interest-bearing deposits | 17,107 | 15,304 | 32,411 | ||||||||
Total non interest-bearing deposits | 3,335 | 2,192 | 5,527 | ||||||||
Total deposits | $ | 20,442 | $ | 17,496 | $ | 37,938 | |||||
(*) — Represents a time deposit. | |||||||||||
(1) — Includes brokered deposits less than, equal to and greater than $100,000. | |||||||||||
Tennessee | First | Total | |||||||||
Commerce | Commercial | Acquired | |||||||||
December 31, 2012 (in thousands) | Bank | Bank | Banks | ||||||||
Demand | $ | 1,401 | $ | 5,871 | $ | 7,272 | |||||
Money market accounts | 1,727 | 25,762 | 27,489 | ||||||||
Savings | 8,623 | — | 8,623 | ||||||||
Individual retirement accounts* | 1,166 | 3,269 | 4,435 | ||||||||
Time deposits, $100,000 and over* | 10,822 | 3,267 | 14,089 | ||||||||
Other certificates of deposit* | 7,196 | 12,574 | 19,770 | ||||||||
Brokered certificates of deposit*(1) | 6,729 | 12,247 | 18,976 | ||||||||
Total interest-bearing deposits | 37,664 | 62,990 | 100,654 | ||||||||
Total non interest-bearing deposits | 4,240 | 6,812 | 11,052 | ||||||||
Total deposits | $ | 41,904 | $ | 69,802 | $ | 111,706 | |||||
(*) - Represents a time deposit. | |||||||||||
(1) — Includes brokered deposits less than, equal to and greater than $100,000. | |||||||||||
See additional discussion regarding the Company’s 2012 FDIC-assisted acquisitions in this section of the filing under Footnote 2 “2012 FDIC-Assisted Acquisitions.” | |||||||||||
Time deposits of $100,000 or more, including brokered certificates of deposit, are presented in the table below: | |||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||
Time deposits of $100,000 or more | $ | 146,909 | $ | 158,516 | |||||||
At December 31, 2013, the scheduled maturities of all time deposits, including brokered certificates of deposit, were as follows: | |||||||||||
Year | (in thousands) | Weighted | |||||||||
Average | |||||||||||
Rate | |||||||||||
2014 | $ | 151,189 | 0.55% | ||||||||
2015 | 58,711 | 1.58% | |||||||||
2016 | 20,576 | 1.64% | |||||||||
2017 | 6,956 | 1.09% | |||||||||
2018 | 20,056 | 1.47% | |||||||||
Thereafter | 471 | 1.00% | |||||||||
Total | $ | 257,959 | 0.96% | ||||||||
SECURITIES_SOLD_UNDER_AGREEMEN
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | ' | ||||||||||
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | ' | ||||||||||
11. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | |||||||||||
Securities sold under agreements to repurchase consist of short-term excess funds from correspondent banks, repurchase agreements and overnight liabilities to deposit customers arising from the Bank’s treasury management program. While comparable to deposits in their transactional nature, these overnight liabilities to customers are in the form of repurchase agreements. Repurchase agreements collateralized by securities are treated as financings; accordingly, the securities involved with the agreements are recorded as assets and are held by a safekeeping agent and the obligations to repurchase the securities are reflected as liabilities. All securities underlying the agreements are under the Bank’s control. Information regarding securities sold under agreements to repurchase follows: | |||||||||||
December 31, (dollars in thousands) | 2013 | 2012 | 2011 | ||||||||
Outstanding balance at end of year | $ | 165,555 | $ | 250,884 | $ | 230,231 | |||||
Weighted average interest rate at year end | 0.04 | % | 0.06 | % | 0.17 | % | |||||
Average outstanding balance during the year | $ | 170,386 | $ | 237,414 | $ | 278,861 | |||||
Average interest rate during the year | 0.04 | % | 0.16 | % | 0.23 | % | |||||
Maximum outstanding at any month end | $ | 242,721 | $ | 272,057 | $ | 297,571 | |||||
At December 31, 2013, all securities sold under agreements to repurchase had overnight maturities. | |||||||||||
FEDERAL_HOME_LOAN_BANK_ADVANCE
FEDERAL HOME LOAN BANK ADVANCES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
FEDERAL HOME LOAN BANK ADVANCES | ' | |||||||
FEDERAL HOME LOAN BANK ADVANCES | ' | |||||||
12. FEDERAL HOME LOAN BANK ADVANCES | ||||||||
At December 31, 2013 and 2012, FHLB advances were as follows: | ||||||||
December 31, (in thousands) | 2013 | 2012 | ||||||
Fixed interest rate advances with a weighted average interest rate of 2.03% due through 2023 | $ | 505,000 | $ | 442,600 | ||||
Putable fixed interest rate advances with a weighted average interest rate of 4.39% due through 2017(1) | 100,000 | 100,000 | ||||||
Total FHLB advances | $ | 605,000 | $ | 542,600 | ||||
(1) - Represents putable advances with the FHLB. These advances have original fixed rate periods ranging from one to five years with original maturities ranging from three to ten years if not put back to the Bank earlier by the FHLB. At the end of their respective fixed rate periods and on a quarterly basis thereafter, the FHLB has the right to require payoff of the advances by the Bank at no penalty. Based on market conditions at this time, the Bank does not believe that any of its putable advances are likely to be “put back” to the Bank in the short-term by the FHLB. | ||||||||
Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances that are paid off earlier than maturity. FHLB advances are collateralized by a blanket pledge of eligible real estate loans. At December 31, 2013, Republic had available collateral to borrow an additional $282 million from the FHLB. In addition to its borrowing line with the FHLB, Republic also had unsecured lines of credit totaling $166 million available through various other financial institutions. | ||||||||
As discussed under Footnote 2 “2012 FDIC-Assisted Acquisitions,” RB&T assumed $3 million in FHLB advances in connection with the FCB acquisition. During the third quarter of 2012, RB&T prepaid these advances and incurred an early termination penalty of $63,000, which was equivalent to the fair value adjustment recorded in connection with the initial day-one bargain purchase gain. | ||||||||
During the first quarter of 2012, RB&T prepaid $81 million in FHLB advances. These advances had a weighted average cost of 3.56% and were all scheduled to mature between October 2012 and May 2013. The Bank incurred a $2.4 million early termination penalty in connection with this transaction. | ||||||||
Aggregate future principal payments on FHLB advances, based on contractual maturity dates are detailed below: | ||||||||
Year | (in thousands) | Weighted | ||||||
Average | ||||||||
Rate | ||||||||
2014 | $ | 188,000 | 2.69 | % | ||||
2015 | 10,000 | 2.48 | % | |||||
2016 | 82,000 | 1.74 | % | |||||
2017 | 145,000 | 3.44 | % | |||||
2018 | 90,000 | 1.51 | % | |||||
Thereafter | 90,000 | 1.75 | % | |||||
Total | $ | 605,000 | 2.42 | % | ||||
The following table illustrates real estate loans pledged to collateralize advances and letters of credit with the FHLB: | ||||||||
December 31, (in thousands) | 2013 | 2012 | ||||||
First lien, single family residential real estate | $ | 1,082,624 | $ | 1,053,946 | ||||
Home equity lines of credit | 105,957 | 116,043 | ||||||
Multi-family commercial real estate | 13,124 | 7,017 | ||||||
SUBORDINATED_NOTE
SUBORDINATED NOTE | 12 Months Ended |
Dec. 31, 2013 | |
SUBORDINATED NOTE | ' |
SUBORDINATED NOTE | ' |
13. SUBORDINATED NOTE | |
In 2005, Republic Bancorp Capital Trust (“RBCT”), an unconsolidated trust subsidiary of Republic Bancorp, Inc., issued $40 million in Trust Preferred Securities (“TPS”). The Company is not considered the primary beneficiary of this trust (variable interest entity), therefore the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. The TPS mature in September, 2035 and are redeemable at the Company’s option after ten years. The TPS pay a fixed interest rate for ten years and adjust with LIBOR + 1.42% thereafter. The Company may defer the payment of interest on the TPS for up to five consecutive years. RBCT used the proceeds from the sale of the TPS to purchase $41.2 million of unsecured fixed/floating rate subordinated debentures. The subordinated debentures mature in whole in September, 2035 and are redeemable at the Company’s option after ten years. The subordinated debentures are currently treated as Tier 1 Capital for regulatory purposes and the related interest expense, currently payable quarterly at the annual rate of 6.015%, is included in the consolidated financial statements. | |
In 2004, the Bank executed an intragroup trust preferred transaction with the purpose of providing RB&T access to additional capital markets, if needed in the future. The subordinated debentures held by RB&T were treated as Tier 2 Capital based on requirements administered by the Bank’s federal banking agency. In April 2013, the Bank received approval from its regulators and unwound the intragroup trust preferred transaction. The cash utilized to pay off the transaction remained at the Parent Company. Unwinding of the transaction had no impact on RB&T’s two Tier 1 related capital ratios and only a minimal impact on its Total Risk Based Capital ratio. | |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
INCOME TAXES | ' | ||||||||||
14. INCOME TAXES | |||||||||||
Allocation of federal income tax between current and deferred portion is as follows: | |||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||
Current expense: | |||||||||||
Federal | $ | 20,668 | $ | 51,888 | $ | 50,326 | |||||
State | 2,167 | 1,565 | 996 | ||||||||
Deferred expense: | |||||||||||
Federal | (7,395 | ) | 10,798 | (1,287 | ) | ||||||
State | (365 | ) | 355 | 13 | |||||||
Total | $ | 15,075 | $ | 64,606 | $ | 50,048 | |||||
Effective tax rates differ from federal statutory rate of 35% applied to income before income taxes due to the following: | |||||||||||
Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Federal statutory rate times financial statement income | 35 | % | 35 | % | 35 | % | |||||
Effect of: | |||||||||||
State taxes, net of federal benefit | 2.89 | % | 0.68 | % | 0.46 | % | |||||
General business tax credits | -0.73 | % | -0.34 | % | -0.69 | % | |||||
Other, net | 0.06 | % | -0.22 | % | -0.06 | % | |||||
Effective tax rate | 37.22 | % | 35.12 | % | 34.71 | % | |||||
Year-end deferred tax assets and liabilities were due to the following: | |||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | |||||||||
Deferred tax assets: | |||||||||||
Allowance for loan losses | $ | 7,622 | $ | 7,970 | |||||||
Accrued expenses | 3,571 | 5,128 | |||||||||
Net operating loss carryforward(1) | 1,587 | 1,349 | |||||||||
Depreciation | 519 | 334 | |||||||||
Other-than-temporary impairment | 749 | 884 | |||||||||
Partnership losses | 832 | 794 | |||||||||
Other | 834 | 333 | |||||||||
Total deferred tax assets | 15,714 | 16,792 | |||||||||
Deferred tax liabilities: | |||||||||||
Unrealized investment securities gains | (1,621 | ) | (3,022 | ) | |||||||
Federal Home Loan Bank dividends | (4,309 | ) | (4,362 | ) | |||||||
Deferred loan fees | (653 | ) | (706 | ) | |||||||
Mortgage servicing rights | (1,958 | ) | (1,877 | ) | |||||||
Bargain purchase gain | (5,460 | ) | (14,454 | ) | |||||||
New market tax credits | (1,517 | ) | (1,368 | ) | |||||||
Total deferred tax liabilities | (15,518 | ) | (25,789 | ) | |||||||
Less: Valuation allowance | (1,684 | ) | (1,592 | ) | |||||||
Net deferred tax liability | $ | (1,488 | ) | $ | (10,589 | ) | |||||
(1) The Company has a Kentucky net operating loss carry forward of $22 million which began to expire in 2012 and a Florida net operating loss carryforward of $5 million which begins to expire in 2030. The Company maintains a valuation allowance as it does not anticipate generating taxable income in Kentucky or Florida to utilize these carryforwards prior to expiration. | |||||||||||
Unrecognized Tax Benefits | |||||||||||
The Company has not filed tax returns in certain jurisdictions where it has conducted limited lending activity but had no offices; therefore, the Company is open to examination for all years in which the lending activity has occurred. The Company adopted the provisions of ASC 740-10, formerly FIN 48, on January 1, 2007 and recognized a liability for the amount of tax which would be due to those jurisdictions should it be determined that income tax filings were required. It is the Company’s policy to recognize interest and penalties as a component of income tax expense related to its unrecognized tax benefits. | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||
Balance, beginning of year | $ | 595 | $ | 506 | |||||||
Additions based on tax related to the current year | 39 | 146 | |||||||||
Additions for tax positions of prior years | 783 | — | |||||||||
Reductions for tax positions of prior years | — | — | |||||||||
Reductions due to the statute of limitations | (36 | ) | (57 | ) | |||||||
Settlements | — | — | |||||||||
Balance, end of year | $ | 1,381 | $ | 595 | |||||||
Of the 2013 total, $898,000 represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. The Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. | |||||||||||
The total amount of interest and penalties recorded in the income statement was an expense of $401,000 and $28,000 for the years ended December 31, 2013 and 2012. The Company had accrued approximately $567,000 and $166,000 for the payment of interest and penalties at December 31, 2013 and 2012. | |||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||
Interest and penalties recorded in the income statement | $ | 401 | $ | 28 | |||||||
Interest and penalties accrued | 567 | 166 | |||||||||
The Company files income tax returns in the U.S. federal jurisdiction. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for all years prior to and including 2009. | |||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
EARNINGS PER SHARE | ' | ||||||||||
EARNINGS PER SHARE | ' | ||||||||||
15. EARNINGS PER SHARE | |||||||||||
Class A and Class B shares participate equally in undistributed earnings. The difference in earnings per share between the two classes of common stock results solely from the 10% per share cash dividend premium paid on Class A Common Stock over that paid on Class B Common Stock. See Footnote 16, “Stockholders’ Equity and Regulatory Capital Matters” of this section of the filing. | |||||||||||
A reconciliation of the combined Class A and Class B Common Stock numerators and denominators of the earnings per share and diluted earnings per share computations is presented below: | |||||||||||
Years Ended December 31, (in thousands, except per share data) | 2013 | 2012 | 2011 | ||||||||
Net income | $ | 25,423 | $ | 119,339 | $ | 94,149 | |||||
Weighted average shares outstanding | 20,807 | 20,959 | 20,945 | ||||||||
Effect of dilutive securities | 97 | 69 | 48 | ||||||||
Average shares outstanding including dilutive securities | 20,904 | 21,028 | 20,993 | ||||||||
Basic earnings per share: | |||||||||||
Class A Common Stock | $ | 1.23 | $ | 5.71 | $ | 4.5 | |||||
Class B Common Stock | $ | 1.17 | $ | 5.55 | $ | 4.45 | |||||
Diluted earnings per share: | |||||||||||
Class A Common Stock | $ | 1.22 | $ | 5.69 | $ | 4.49 | |||||
Class B Common Stock | $ | 1.16 | $ | 5.53 | $ | 4.44 | |||||
Stock options excluded from the detailed earnings per share calculation because their impact was antidilutive are as follows: | |||||||||||
Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Antidilutive stock options | 18,000 | 122,450 | 585,720 | ||||||||
Average antidilutive stock options | 15,667 | 120,353 | 585,147 | ||||||||
STOCKHOLDERS_EQUITY_AND_REGULA
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS | ' | ||||||||||||||||
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS | ' | ||||||||||||||||
16. STOCKHOLDERS’ EQUITY AND REGULATORY CAPITAL MATTERS | |||||||||||||||||
Common Stock — The Class A Common shares are entitled to cash dividends equal to 110% of the cash dividend paid per share on Class B Common Stock. Class A Common shares have one vote per share and Class B Common shares have ten votes per share. Class B Common shares may be converted, at the option of the holder, to Class A Common shares on a share for share basis. The Class A Common shares are not convertible into any other class of Republic’s capital stock. | |||||||||||||||||
Dividend Restrictions — The Parent Company’s principal source of funds for dividend payments are dividends received from RB&T. Banking regulations limit the amount of dividends that may be paid to the Parent Company by the Bank without prior approval of the respective states’ banking regulators. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, combined with the retained net profits of the preceding two years. At December 31, 2013, RB&T could, without prior approval, declare dividends of approximately $75 million. The Company does not plan to pay dividends from RB in the foreseeable future. | |||||||||||||||||
Regulatory Capital Requirements — The Parent Company and the Bank are subject to various regulatory capital requirements administered by banking regulators. 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 Republic’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Parent Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s 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 regulations provide five classifications: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At December 31, 2013 and 2012, the most recent regulatory notifications categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. | |||||||||||||||||
With regard to RB, the Qualified Thrift Lender (“QTL”) test requires at least 65% of assets be maintained in housing-related loans and investments and other specified areas for nine out of the twelve calendar months each year. If this test is not met for at least nine out of twelve months, limits are placed on growth, branching, new investments, FHLB advances and dividends, or Republic Bank must convert to a commercial bank charter. RB met the requirements of the QTL test for 2013. | |||||||||||||||||
New Capital Rules — On July 2, 2013, the Federal Reserve approved final rules that substantially amend the regulatory risk-based capital rules applicable to the Bank. The FDIC and the OCC have subsequently approved these rules. The final rules were adopted following the issuance of proposed rules by the Federal Reserve in June 2012, and implement the “Basel III” regulatory capital reforms and changes required by the Dodd-Frank Act. | |||||||||||||||||
The rules include new risk-based capital and leverage ratios, which will be phased in from 2015 to 2019, and will refine the definition of what constitutes “capital” for purposes of calculating those ratios. The new minimum capital level requirements applicable to the Bank under the final rules are: (i) a new common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 capital ratio of 6% (increased from 4%); (iii) a total capital ratio of 8% (unchanged from current rules); and (iv) a Tier 1 leverage ratio of 4% for all institutions. The final rules also establish a “capital conservation buffer” above the new regulatory minimum capital requirements, which must consist entirely of common equity Tier 1 capital. The capital conservation buffer will be phased-in over four years beginning on January 1, 2016, as follows: the maximum buffer will be 0.625% of risk-weighted assets for 2016, 1.25% for 2017, 1.875% for 2018, and 2.5% for 2019 and thereafter. This will result in the following minimum ratios beginning in 2019: (i) a common equity Tier 1 capital ratio of 7.0%, (ii) a Tier 1 capital ratio of 8.5%, and (iii) a total capital ratio of 10.5%. Under the final rules, institutions are subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the buffer amount. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions. | |||||||||||||||||
The final rules implement revisions and clarifications consistent with Basel III regarding the various components of Tier 1 capital, including common equity, unrealized gains and losses, as well as certain instruments that will no longer qualify as Tier 1 capital, some of which will be phased out over time. However, the final rules provide that small depository institution holding companies with less than $15 billion in total assets as of December 31, 2009 (which includes the Company) will be able to permanently include non-qualifying instruments that were issued and included in Tier 1 or Tier 2 capital prior to May 19, 2010 in additional Tier 1 or Tier 2 capital until they redeem such instruments or until the instruments mature. | |||||||||||||||||
The final rules also contain revisions to the prompt corrective action framework, which is designed to place restrictions on insured depository institutions if their capital levels begin to show signs of weakness. These revisions take effect January 1, 2015. Under the prompt corrective action requirements, which are designed to complement the capital conservation buffer, insured depository institutions will be required to meet the following increased capital level requirements in order to qualify as “well capitalized:” (i) a new common equity Tier 1 capital ratio of 6.5%; (ii) a Tier 1 capital ratio of 8% (increased from 6%); (iii) a total capital ratio of 10% (unchanged from current rules); and (iv) a Tier 1 leverage ratio of 5% (increased from 4%). | |||||||||||||||||
The final rules set forth certain changes for the calculation of risk-weighted assets, which the Bank will be required to utilize beginning January 1, 2015. The standardized approach final rule utilizes an increased number of credit risk exposure categories and risk weights, and also addresses: (i) an alternative standard of creditworthiness consistent with Section 939A of the Dodd-Frank Act; (ii) revisions to recognition of credit risk mitigation; (iii) rules for risk weighting of equity exposures and past due loans; (iv) revised capital treatment for derivatives and repo-style transactions; and (v) disclosure requirements for top-tier banking organizations with $50 billion or more in total assets that are not subject to the “advance approach rules” that apply to banks with greater than $250 billion in consolidated assets. | |||||||||||||||||
Based on the Bank’s current capital composition and levels, management believes it will be in compliance with the requirements as set forth in the final rules. | |||||||||||||||||
Actual | Minimum | Minimum Requirement | |||||||||||||||
Requirement for | to be Well Capitalized | ||||||||||||||||
Capital Adequacy | Under Prompt | ||||||||||||||||
Purposes | Corrective Action | ||||||||||||||||
Provisions | |||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||
As of December 31, 2013 | |||||||||||||||||
Total capital to risk weighted assets | |||||||||||||||||
Republic Bancorp, Inc. | $ | 592,531 | 26.71 | % | $ | 177,457 | 8 | % | N/A | N/A | |||||||
Republic Bank & Trust Co. | 439,143 | 20.61 | 170,478 | 8 | $ | 213,098 | 10 | % | |||||||||
Republic Bank | 15,860 | 18.69 | 6,788 | 8 | 8,485 | 10 | |||||||||||
Tier 1 (core) capital to risk weighted assets | |||||||||||||||||
Republic Bancorp, Inc. | 569,505 | 25.67 | 88,729 | 4 | N/A | N/A | |||||||||||
Republic Bank & Trust Co. | 418,348 | 19.63 | 85,239 | 4 | 127,859 | 6 | |||||||||||
Republic Bank | 14,785 | 17.42 | 3,394 | 4 | 5,091 | 6 | |||||||||||
Tier 1 leverage capital to average assets | |||||||||||||||||
Republic Bancorp, Inc. | 569,505 | 16.81 | 135,515 | 4 | N/A | N/A | |||||||||||
Republic Bank & Trust Co. | 418,348 | 12.73 | 131,491 | 4 | 164,364 | 5 | |||||||||||
Republic Bank | 14,785 | 14.41 | 4,105 | 4 | 5,132 | 5 | |||||||||||
Actual | Minimum Requirement | Minimum Requirement to | |||||||||||||||
for Capital Adequacy | be Well Capitalized | ||||||||||||||||
Purposes | Under Prompt Corrective | ||||||||||||||||
Action Provisions | |||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||
As of December 31, 2012 | |||||||||||||||||
Total capital to risk weighted assets | |||||||||||||||||
Republic Bancorp, Inc. | $ | 581,189 | 25.28 | % | $ | 183,939 | 8 | % | N/A | N/A | |||||||
Republic Bank & Trust Co. | 451,898 | 20.37 | 177,448 | 8 | $ | 221,811 | 10 | % | |||||||||
Republic Bank | 14,494 | 18.02 | 6,434 | 8 | 8,043 | 10 | |||||||||||
Tier 1 (core) capital to risk weighted assets | |||||||||||||||||
Republic Bancorp, Inc. | 558,982 | 24.31 | 91,969 | 4 | N/A | N/A | |||||||||||
Republic Bank & Trust Co. | 407,261 | 18.36 | 88,724 | 4 | 133,086 | 6 | |||||||||||
Republic Bank | 13,474 | 16.75 | 3,217 | 4 | 4,826 | 6 | |||||||||||
Tier 1 leverage capital to average assets | |||||||||||||||||
Republic Bancorp, Inc. | 558,982 | 16.36 | 136,646 | 4 | N/A | N/A | |||||||||||
Republic Bank & Trust Co. | 407,261 | 12.18 | 133,696 | 4 | 167,120 | 5 | |||||||||||
Republic Bank | 13,474 | 13.43 | 4,013 | 4 | 5,016 | 5 | |||||||||||
STOCK_PLANS_AND_STOCK_BASED_CO
STOCK PLANS AND STOCK BASED COMPENSATION | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
STOCK PLANS AND STOCK BASED COMPENSATION | ' | |||||||||||||||
STOCK PLANS AND STOCK BASED COMPENSATION | ' | |||||||||||||||
17. STOCK PLANS AND STOCK BASED COMPENSATION | ||||||||||||||||
At December 31, 2013, the Company had a stock option plan, which also allows for the issuance of restricted stock awards, and a director deferred compensation plan. The stock option plan, which allows for the issuance of restricted stock awards, is part of the 2005 Stock Incentive Plan (“2005 Plan”). | ||||||||||||||||
Stock Options | ||||||||||||||||
The Company recorded expense related to stock options as follows: | ||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | |||||||||||||
Stock option expense | $ | 205 | $ | 792 | $ | 277 | ||||||||||
The stock options are incentive stock options with no disqualifying dispositions; therefore, no tax benefit was recognized related to the expense. No stock options were modified during the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||
The 2005 Plan permits the grant of stock options and restricted stock awards for up to 3,307,500 shares of common stock. The Company believes that such awards better align the interests of its employees with those of its shareholders. Option awards generally become fully exercisable at the end of five to six years of continued employment and must be exercised within one year from the date the options become exercisable. There were no Class B stock options outstanding during each of the periods presented. All stock options have an exercise price that is at least equal to the fair market value of the Company’s stock on the date the options were granted. All shares issued under the above mentioned plans came from authorized and unissued shares. Currently, the Company has a sufficient number of shares to satisfy expected option exercises. | ||||||||||||||||
The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes based stock option valuation model. This model requires the input of subjective assumptions that will usually have a significant impact on the fair value estimate. Expected volatilities are based on historical volatility of Republic’s stock and other factors. Expected dividends are based on dividend trends and the market price of Republic’s stock price at grant. Republic uses historical data to estimate option exercises and employee terminations within the valuation model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve at the time of grant. | ||||||||||||||||
The fair value of stock options granted was determined using the following weighted average assumptions as of grant date: | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Risk-free interest rate | 0.8 | % | 1.04 | % | 2.29 | % | ||||||||||
Expected dividend yield | 2.95 | % | 2.79 | % | 2.59 | % | ||||||||||
Expected stock price volatility | 31.95 | % | 33.35 | % | 30.88 | % | ||||||||||
Expected life of options (in years) | 6 | 6 | 6 | |||||||||||||
Estimated fair value per share | $ | 5.21 | $ | 5.62 | $ | 5.56 | ||||||||||
A summary of stock option activity for 2013 follows: | ||||||||||||||||
Weighted | ||||||||||||||||
Weighted | Average | |||||||||||||||
Options | Average | Remaining | Aggregate | |||||||||||||
Class A | Exercise | Contractual | Intrinsic | |||||||||||||
Shares | Price | Term | Value | |||||||||||||
Outstanding, beginning of year | 460,200 | $ | 20.86 | |||||||||||||
Granted | 6,000 | 23.42 | ||||||||||||||
Exercised | (31,200 | ) | 21.26 | |||||||||||||
Forfeited or expired | (107,500 | ) | 23.41 | |||||||||||||
Outstanding, end of year | 327,500 | $ | 20.03 | 1.57 | $ | 1,482,580 | ||||||||||
Fully vested and expected to vest | 327,500 | $ | 20.03 | 1.57 | $ | 1,482,580 | ||||||||||
Exercisable (vested) at end of year | 142,000 | $ | 20.01 | 0.86 | $ | 644,818 | ||||||||||
Information related to the stock option plan during each year follows: | ||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | |||||||||||||
Intrinsic value of options exercised | $ | 131 | $ | 56 | $ | 315 | ||||||||||
Cash received from options exercised, net of shares redeemed | 439 | 147 | 438 | |||||||||||||
Total fair value of options granted | 31 | 17 | 28 | |||||||||||||
Loan balances of non-executive officer employees that were originated solely to fund stock option exercises were as follows: | ||||||||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | ||||||||||||||
Outstanding loans | $ | 217 | $ | 466 | ||||||||||||
Restricted Stock Awards | ||||||||||||||||
Restricted stock awards generally become fully vested at the end of five to six years of continued employment. Information related to restricted stock awards granted follows: | ||||||||||||||||
December 31, (in thousands except per share data) | 2013 | 2012 | ||||||||||||||
Shares granted | — | 82 | ||||||||||||||
Weighted-average grant date fair value | $ | — | $ | 19.85 | ||||||||||||
Restricted stock award expense | $ | 298 | $ | 50 | ||||||||||||
The following table summarizes the activity for non-vested restricted stock awards for the years ended December 31, 2013 and 2012. | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Shares | Shares | |||||||||||||||
Outstanding, beginning of year | 82,000 | — | ||||||||||||||
Granted | — | 82,000 | ||||||||||||||
Forfeited or expired | — | — | ||||||||||||||
Earned and issued | — | — | ||||||||||||||
Outstanding, end of year | 82,000 | 82,000 | ||||||||||||||
The fair value of the restricted stock awards is based on the closing stock price on the date of grant with the associated expense amortized to compensation expense over the vesting period, generally five to six years | ||||||||||||||||
Unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures) are estimated as follows: | ||||||||||||||||
Year | Awards | Options | Total | |||||||||||||
2014 | $ | 298 | $ | 115 | $ | 413 | ||||||||||
2015 | 298 | 20 | 318 | |||||||||||||
2016 | 298 | 12 | 310 | |||||||||||||
2017 | 249 | 9 | 258 | |||||||||||||
2018 | 136 | 5 | 141 | |||||||||||||
2019 | — | 2 | 2 | |||||||||||||
Total | $ | 1,279 | $ | 163 | $ | 1,442 | ||||||||||
Director Deferred Compensation | ||||||||||||||||
In November 2004, the Company’s Board of Directors approved a Non-Qualified Deferred Compensation Plan (the “Plan”). The Plan governs the deferral of board and committee fees of non-employee members of the Board of Directors. Members of the Board of Directors may defer up to 100% of their board and committee fees for a specified period ranging from two to five years. The value of the deferred director compensation account is deemed “invested” in Company stock and is immediately vested. On a quarterly basis, the Company reserves shares of Republic’s stock within the Company’s stock option plan for ultimate distribution to Directors at the end of the deferral period. The Plan has not and will not materially impact the Company, as director compensation expense has been and will continue to be recorded when incurred. | ||||||||||||||||
The following table presents information on director deferred compensation shares reserved for the periods shown: | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Years ended December 31, | Shares | Weighted Average | Shares | Weighted Average | Shares | Weighted Average | ||||||||||
Deferred | Market Price at | Deferred | Market Price at Date | Deferred | Market Price at Date | |||||||||||
Date of Deferral | of Deferral | of Deferral | ||||||||||||||
Balance, beginning of period | 50,414 | 20.64 | 43,990 | $ | 20.19 | 37,842 | $ | 20.3 | ||||||||
Awarded | 7,768 | 24.32 | 9,871 | 22.02 | 8,658 | 19.77 | ||||||||||
Released | (5,046 | ) | 20.16 | (3,447 | ) | 18.93 | (2,510 | ) | 20.42 | |||||||
Balance, end of period | 53,136 | 21.23 | 50,414 | 20.64 | 43,990 | $ | 20.19 | |||||||||
Director deferred compensation has been expensed as follows: | ||||||||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | 2011 | |||||||||||||
Director deferred compensation expense | $ | 193 | $ | 227 | $ | 171 | ||||||||||
BENEFIT_PLANS
BENEFIT PLANS | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
BENEFIT PLANS | ' | ||||||||||
BENEFIT PLANS | ' | ||||||||||
18. BENEFIT PLANS | |||||||||||
401 (k) Plan | |||||||||||
Republic maintained a 401(k) plan for eligible employees who have been employed for at least 30-days and have reached the age of 21. The 30-day employment requirement was removed for plan participation, effective January 1, 2014. During 2011, participants in the plan had the option to contribute from 1% to 75% of their annual eligible compensation up to the maximum allowed by the IRS. Effective January 1, 2012, participants in the plan had the option to contribute from 1% to 75% of their annual eligible compensation up to the maximum allowed by the IRS. The Company matches 100% of participant contributions up to 1% and an additional 75% for participant contributions between 2% and 5% of each participant’s annual eligible compensation. Participants are fully vested after two years of employment. | |||||||||||
Republic also contributes bonus contributions in addition to the aforementioned matching contributions if the Company achieves certain operating goals. Normal and bonus contributions for each of the periods ended were as follows: | |||||||||||
Years Ended December 31, (dollars in thousands) | 2013 | 2012 | 2011 | ||||||||
Employer matching contributions | $ | 1,576 | $ | 1,470 | $ | 1,388 | |||||
Discretionary employer bonus matching contributions | $ | — | $ | 446 | $ | 420 | |||||
Employee Stock Ownership Plan | |||||||||||
Republic terminated its Employee Stock Ownership Plan (“ESOP”) effective December 31, 2012 and fully liquidated the ESOP on August 31, 2013. Employees were given the option to rollover cash or Company stock to the Company’s 401(k) plan or take a distribution in cash or Company stock. All ESOP shares were previously allocated through December 31, 2008 and effective July 1, 2007, the Company ceased accepting new participants into the ESOP plan. The table below presents information regarding the ESOP plan for each period end presented: | |||||||||||
Years Ended December 31, (dollars in thousands) | 2013 | 2012 | 2011 | ||||||||
Shares allocated to participants in the plan | — | 255,374 | 274,742 | ||||||||
Fair value of shares | $ | — | $ | 5,396 | $ | 6,292 | |||||
Death Benefit | |||||||||||
The Company maintained a death benefit for the former deceased Chairman of the Company, Bernard M. Trager, equal to three times the average annual compensation paid to Mr. Trager for the two years preceding his death. Upon Mr. Trager’s death on February 10, 2012, the Company began making a payout under this agreement, which was fully accrued for in prior years, of approximately $2 million. Approximately $853,000 of this death benefit remained unpaid as of December 31, 2013. | |||||||||||
TRANSACTIONS_WITH_RELATED_PART
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES | ' | ||||||||||
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES | ' | ||||||||||
19. TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES | |||||||||||
Republic leases office facilities under operating leases from limited liability companies in which Republic’s Chairman/Chief Executive Officer and President are partners. Rent expense under these leases was as follows: | |||||||||||
Years Ended December 31, ($ in thousands) | 2013 | 2012 | 2011 | ||||||||
Rent expense under leases from related parties | $ | 3,372 | $ | 3,254 | $ | 3,158 | |||||
Total minimum lease commitments under non-cancelable operating leases are as follows: | |||||||||||
(in thousands) | Affiliate | Other | Total | ||||||||
2014 | 3,455 | 3,391 | 6,846 | ||||||||
2015 | 3,209 | 2,994 | 6,203 | ||||||||
2016 | 2,643 | 1,499 | 4,142 | ||||||||
2017 | 1,827 | 1,368 | 3,195 | ||||||||
2018 | 1,281 | 1,196 | 2,477 | ||||||||
Thereafter | — | 5,507 | 5,507 | ||||||||
Total | $ | 12,415 | $ | 15,955 | $ | 28,370 | |||||
A director of Republic Bancorp, Inc. is the President and Chief Executive Officer of a company that leases space to the Bank. Fees paid to the Bank totaled $14,000, $14,000 and $14,000 for years ended December 31, 2013, 2012 and 2011. | |||||||||||
A director of Republic Bancorp, Inc. is “of counsel” to a local law firm. Fees paid by the Bank to this firm totaled $1.0 million, $181,000 and $293,000 in 2013, 2012 and 2011. | |||||||||||
A director of RB&T is an executive of two consulting firms. Fees paid by the Bank to these firms totaled $101,000, $173,000 and $12,000 in 2013, 2012 and 2011. | |||||||||||
A director of RB&T is a partner of an accounting firm that received fees from the Bank of $9,000, $8,000 and $8,000 in 2013, 2012 and 2011. | |||||||||||
Loans made to executive officers and directors of Republic and their related interests during 2013 were as follows: | |||||||||||
(in thousands) | |||||||||||
Beginning balance | $ | 20,953 | |||||||||
Effect of changes in composition of related parties | (338 | ) | |||||||||
New loans | 6,981 | ||||||||||
Repayments | (7,888 | ) | |||||||||
Ending balance | $ | 19,708 | |||||||||
Deposits from executive officers, directors, and their affiliates totaled $70 million and $70 million at December 31, 2013 and 2012. | |||||||||||
By an agreement dated December 14, 1989, as amended August 8, 1994, RB&T entered into a split-dollar insurance agreement with a trust established by the Company’s deceased former Chairman, Bernard M. Trager. Pursuant to the agreement, from 1989 through 2002 RB&T paid $690,000 in total annual premiums on the insurance policies held in the trust. The policies are joint-life policies payable upon the death of Ms. Jean Trager, as the survivor of her husband Bernard M. Trager. The cash surrender value of the policies was approximately $1.9 million and $1.8 million as of December 31, 2013 and 2012. | |||||||||||
Pursuant to the terms of the trust, the beneficiaries of the trust will each receive the proceeds of the policies after the repayment of the $690,000 of indebtedness to RB&T. The aggregate amount of such unreimbursed premiums constitutes indebtedness from the trust to RB&T and is secured by a collateral assignment of the policies. As of December 31, 2013 and 2012, the net death benefit under the policies was approximately $3.5 million. Upon the termination of the agreement, whether by the death of Ms. Trager or earlier cancellation, RB&T is entitled to be repaid by the trust the amount of indebtedness outstanding at that time. | |||||||||||
OFF_BALANCE_SHEET_RISKS_COMMIT
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | ' | |||||||
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | ' | |||||||
20. OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | ||||||||
The Bank, in the normal course of business, is party to financial instruments with off balance sheet risk. These financial instruments primarily include commitments to extend credit and standby letters of credit. The contract or notional amounts of these instruments reflect the potential future obligations of the Bank pursuant to those financial instruments. Creditworthiness for all instruments is evaluated on a case by case basis in accordance with the Bank’s credit policies. Collateral from the customer may be required based on the Bank’s credit evaluation of the customer and may include business assets of commercial customers, as well as personal property and real estate of individual customers or guarantors. | ||||||||
The Bank also extends binding commitments to customers and prospective customers. Such commitments assure the borrower of financing for a specified period of time at a specified rate. The risk to the Bank under such loan commitments is limited by the terms of the contracts. For example, the Bank may not be obligated to advance funds if the customer’s financial condition deteriorates or if the customer fails to meet specific covenants. An approved but unfunded loan commitment represents a potential credit risk once the funds are advanced to the customer. Unfunded loan commitments also represent liquidity risk since the customer may demand immediate cash that would require funding and interest rate risk as market interest rates may rise above the rate committed. In addition, since a portion of these loan commitments normally expire unused, the total amount of outstanding commitments at any point in time may not require future funding. Loan commitments generally have open-ended maturities and variable rates. | ||||||||
The table below presents the Bank’s commitments, exclusive of Mortgage Banking loan commitments for each year ended: | ||||||||
December 31, (in thousands) | 2013 | 2012 | ||||||
Unused warehouse lines of credit | $ | 208,424 | $ | 113,924 | ||||
Unused home equity lines of credit | 230,361 | 232,719 | ||||||
Unused loan commitments - other | 178,776 | 163,523 | ||||||
Standby letters of credit | 2,308 | 16,985 | ||||||
FHLB letters of credit | 3,200 | 11,908 | ||||||
Total off balance sheet items | $ | 623,069 | $ | 539,059 | ||||
Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The terms and risk of loss involved in issuing standby letters of credit are similar to those involved in issuing loan commitments and extending credit. In addition to credit risk, the Bank also has liquidity risk associated with standby letters of credit because funding for these obligations could be required immediately. The Bank does not deem this risk to be material. | ||||||||
At December 31, 2013 and 2012 the Bank had letters of credit from the FHLB issued on behalf of RB&T clients. These letters of credit were used as credit enhancements for client bond offerings and reduced RB&T’s available borrowing line at the FHLB. The Bank uses a blanket pledge of eligible real estate loans to secure these letters of credit. | ||||||||
Legal Proceedings | ||||||||
On August 1, 2011, a lawsuit was filed in the U.S. District Court for the Western District of Kentucky styled Brenda Webb vs. Republic Bank & Trust Company d/b/a Republic Bank, Civil Action No. 3:11-CV-00423-TBR. The Complaint was brought as a putative class action and seeks monetary damages, restitution and declaratory relief allegedly arising from the manner in which RB&T assessed overdraft fees. In the Complaint, the Plaintiff pleads seven claims against RB&T alleging: breach of contract and breach of the covenant of good faith and fair dealing (Count I), unconscionability (Count II), conversion (Count III), unjust enrichment (Count IV), violation of the Electronic Funds Transfer Act and Regulation E (Count V), and violations of the Kentucky Consumer Protection Act, (Count VI). RB&T filed a Motion to Dismiss the case on January 12, 2012. In response, Plaintiff filed her Motion to Amend the Complaint on February 23, 2012. In Plaintiff’s proposed Amended Complaint, Plaintiff acknowledged disclosure of the Overdraft Honor Policy and did not seek to add any claims to the Amended Complaint. However, Plaintiff divided the breach of contract and breach of the covenant of good faith and fair dealing claims into two counts (Counts One and Two). In the original Complaint, those claims were combined in Count One. RB&T filed its objection to Plaintiff’s Motion to Amend. On June 16, 2012, the District Court denied the Plaintiff’s Motion to Amend concluding that the Plaintiff lacked the ability to automatically amend the complaint as of right. However, the Court held that the Plaintiff could be permitted to amend if the Plaintiff could first demonstrate that her amendment would not be futile and that the Plaintiff had standing to sue despite RB&T’s offer of judgment. The Court declined to rule on that issue at that time and ordered the case stayed pending a decision by the U.S. Court of Appeals for the Sixth Circuit in a case on appeal with the same standing issue. The Sixth Circuit ruled on June 11, 2013 and concluded that the offer of judgment did not moot the matter before it only because the offer of judgment in question did not afford the Plaintiff complete relief. The District Court lifted the stay of this matter on June 14, 2013 and permitted Plaintiff to file her Amended Complaint. Plaintiff filed her Amended Complaint on June 21, 2013 and brought seven claims: breach of contract and breach of the covenant of good faith and fair dealing (Counts I & II), unconscionability (Count III), conversion (Count IV), unjust enrichment (Count V), violation of the Electronic Funds Transfer Act, (Count VI) and violation of the Kentucky Consumer Protection Act (Count VII). RB&T filed its Motion to Dismiss the Amended Complaint on July 15, 2013. On September 30, 2013 the Court issued its decision granting the Motion to Dismiss in part and denying it in part. The Court initially concluded that the offer of judgment did not moot the case and deprive it of subject matter jurisdiction as it did not provide Plaintiff with all of the relief she sought. The Court dismissed the conversion, unconscionability and Electronic Funds Transfer Act claims in their entirety for failure to state a claim. With respect to the remaining claims, the Court dismissed them to the extent they are premised upon any overdraft charges incurred by the Plaintiff on or after January 6, 2010, the date on which she received the Overdraft Honor Policy. The Court concluded that Plaintiff could not state any claim for the time period after she received the Policy with respect to the manner in which RB&T assessed overdraft fees. The Answer to the remaining claims was filed on October 14, 2013 and the matter now proceeds into discovery. |
PARENT_COMPANY_CONDENSED_FINAN
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | ' | ||||||||||
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | ' | ||||||||||
21. PARENT COMPANY CONDENSED FINANCIAL INFORMATION | |||||||||||
BALANCE SHEETS | |||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 130,750 | $ | 115,984 | |||||||
Investment in subsidiaries | 448,388 | 463,316 | |||||||||
Other assets | 10,624 | 2,737 | |||||||||
Total assets | $ | 589,762 | $ | 582,037 | |||||||
Liabilities and Stockholders’ Equity: | |||||||||||
Subordinated note | $ | 41,240 | $ | 41,240 | |||||||
Other liabilities | 5,729 | 4,095 | |||||||||
Stockholders’ equity | 542,793 | 536,702 | |||||||||
Total liabilities and stockholders’ equity | $ | 589,762 | $ | 582,037 | |||||||
STATEMENTS OF INCOME | |||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||
Income and expenses: | |||||||||||
Dividends from subsidiary | $ | 16,376 | $ | 115,476 | $ | 35,476 | |||||
Interest income | 2 | 3 | 81 | ||||||||
Other income | 39 | 39 | 39 | ||||||||
Less: Interest expense | 2,515 | 2,522 | 2,515 | ||||||||
Less: Other expenses | 368 | 441 | 382 | ||||||||
Income before income tax benefit | 13,534 | 112,555 | 32,699 | ||||||||
Income tax benefit | 958 | 997 | 961 | ||||||||
Income before equity in undistributed net income of subsidiaries | 14,492 | 113,552 | 33,660 | ||||||||
Equity in undistributed net income of subsidiaries | 10,931 | 5,787 | 60,489 | ||||||||
Net income | $ | 25,423 | $ | 119,339 | $ | 94,149 | |||||
STATEMENTS OF CASH FLOWS | |||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||
Operating activities: | |||||||||||
Net income | $ | 25,423 | $ | 119,339 | $ | 94,149 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed net income of subsidiaries | (10,931 | ) | (5,787 | ) | (60,489 | ) | |||||
Director deferred compensation - Parent Company | 99 | 121 | 104 | ||||||||
Change in other assets | (7,895 | ) | (1,917 | ) | 1,127 | ||||||
Change in other liabilities | 2,114 | 741 | (187 | ) | |||||||
Net cash provided by operating activities | 8,810 | 112,497 | 34,704 | ||||||||
Investing activities: | |||||||||||
Redemption of Republic Investment Company common stock | 23,621 | — | — | ||||||||
Net cash provided by operating activities | 23,621 | — | — | ||||||||
Financing activities: | |||||||||||
Common Stock repurchases | (4,095 | ) | (1,668 | ) | (492 | ) | |||||
Net proceeds from Common Stock options exercised | 439 | 147 | 438 | ||||||||
Cash dividends paid | (14,009 | ) | (36,116 | ) | (12,315 | ) | |||||
Net cash used in financing activities | (17,665 | ) | (37,637 | ) | (12,369 | ) | |||||
Net change in cash and cash equivalents | 14,766 | 74,860 | 22,335 | ||||||||
Cash and cash equivalents at beginning of year | 115,984 | 41,124 | 18,789 | ||||||||
Cash and cash equivalents at end of year | $ | 130,750 | $ | 115,984 | $ | 41,124 | |||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
22. SEGMENT INFORMATION | ||||||||||||||
Reportable segments are determined by the type of products and services offered and the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business (such as banking centers and subsidiary banks), which are then aggregated if operating performance, products/services, and customers are similar. | ||||||||||||||
As of December 31, 2013, the Company was divided into three distinct business operating segments: Traditional Banking, Mortgage Banking and Republic Processing Group (“RPG”). During 2012, the Company realigned the previously reported Tax Refund Solutions (“TRS”) segment as a division of the RPG segment. Along with the TRS division, Republic Payment Solutions (“RPS”) and Republic Credit Solutions (“RCS”) were created to operate as divisions of the RPG segment. | ||||||||||||||
Nationally, through RB&T, RPG facilitates the receipt and payment of federal and state tax refund products under the TRS division. Through RB, the RPS division is an issuing bank offering general purpose reloadable prepaid debit cards through third party program managers. Through RB&T, the RCS division is piloting short-term consumer credit products. | ||||||||||||||
For the projected near-term, as programs are being established, the operating results of these divisions are expected to be immaterial to the Company’s overall results of operations and will be reported as part of the RPG business operating segment. The RPS and RCS divisions will not be reported as separate business operating segments until such time, if any, that they become material to the Company’s overall results of operations. | ||||||||||||||
Loans, investments and deposits provide the majority of the net revenue from Traditional Banking operations, while servicing fees and loan sales provide the majority of revenue from Mortgage Banking operations. Prior to 2013, RAL fees and net RT fees provided the majority of the revenue for RPG. In 2013, net RT fees have provided, and are expected to continue to provide going forward, the majority of revenues for RPG as the Company no longer offers RALs. All Company operations are domestic. | ||||||||||||||
The accounting policies used for Republic’s reportable segments are the same as those described in the summary of significant accounting policies. Segment performance is evaluated using operating income. Goodwill is not allocated. Income taxes which are not segment specific are allocated based on income before income tax expense. Transactions among reportable segments are made at carrying value. | ||||||||||||||
Segment information for the years ended December 31, 2013, 2012 and 2011 is as follows: | ||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||
Republic | ||||||||||||||
Traditional | Mortgage | Processing | Total | |||||||||||
(dollars in thousands) | Banking | Banking | Group | Company | ||||||||||
Net interest income | $ | 112,556 | $ | 471 | $ | 148 | $ | 113,175 | ||||||
Provision for loan losses | 3,828 | — | (845 | ) | 2,983 | |||||||||
Net refund transfer fees | — | — | 13,884 | 13,884 | ||||||||||
Mortgage banking income | — | 7,258 | — | 7,258 | ||||||||||
Bargain purchase gain - FCB | 1,324 | — | — | 1,324 | ||||||||||
Other non interest income | 24,497 | 131 | 875 | 25,503 | ||||||||||
Total non interest income | 25,821 | 7,389 | 14,759 | 47,969 | ||||||||||
Total non interest expenses | 98,064 | 3,418 | 16,181 | 117,663 | ||||||||||
Income (loss) before income tax expense | 36,485 | 4,442 | (429 | ) | 40,498 | |||||||||
Income tax expense | 12,557 | 1,555 | 963 | 15,075 | ||||||||||
Net income (loss) | $ | 23,928 | $ | 2,887 | $ | (1,392 | ) | $ | 25,423 | |||||
Segment end of period total assets | $ | 3,354,850 | $ | 9,307 | $ | 7,747 | $ | 3,371,904 | ||||||
Net interest margin | 3.51 | % | NM | NM | 3.48 | % | ||||||||
Year Ended December 31, 2012 | ||||||||||||||
Republic | ||||||||||||||
Traditional | Mortgage | Processing | Total | |||||||||||
(dollars in thousands) | Banking | Banking | Group | Company | ||||||||||
Net interest income | $ | 114,831 | $ | 400 | $ | 45,424 | $ | 160,655 | ||||||
Provision for loan losses | 8,167 | — | 6,876 | 15,043 | ||||||||||
Net refund transfer fees | — | — | 78,304 | 78,304 | ||||||||||
Mortgage banking income | — | 8,447 | — | 8,447 | ||||||||||
Net gain on sales, calls and impairment of securities | 56 | — | — | 56 | ||||||||||
Bargain purchase gain - TCB | 27,614 | — | — | 27,614 | ||||||||||
Bargain purchase gain - FCB | 27,824 | — | — | 27,824 | ||||||||||
Other non interest income | 22,574 | 39 | 220 | 22,833 | ||||||||||
Total non interest income | 78,068 | 8,486 | 78,524 | 165,078 | ||||||||||
Total non interest expenses | 100,380 | 3,842 | 22,523 | 126,745 | ||||||||||
Income before income tax expense | 84,352 | 5,044 | 94,549 | 183,945 | ||||||||||
Income tax expense | 29,178 | 1,765 | 33,663 | 64,606 | ||||||||||
Net income | $ | 55,174 | $ | 3,279 | $ | 60,886 | $ | 119,339 | ||||||
Segment end of period total assets | $ | 3,371,934 | $ | 15,752 | $ | 6,713 | $ | 3,394,399 | ||||||
Net interest margin | 3.64 | % | NM | NM | 4.82 | % | ||||||||
Year Ended December 31, 2011 | ||||||||||||||
Republic | ||||||||||||||
Traditional | Mortgage | Processing | Total | |||||||||||
(dollars in thousands) | Banking | Banking | Group | Company | ||||||||||
Net interest income | $ | 105,346 | $ | 401 | $ | 59,113 | $ | 164,860 | ||||||
Provision for loan losses | 6,406 | — | 11,560 | 17,966 | ||||||||||
Net refund transfer fees | — | — | 88,195 | 88,195 | ||||||||||
Mortgage banking income | — | 3,899 | — | 3,899 | ||||||||||
Net gain on sales, calls and impairment of securities | 2,006 | — | — | 2,006 | ||||||||||
Other non interest income | 25,089 | 78 | 357 | 25,524 | ||||||||||
Total non interest income | 27,095 | 3,977 | 88,552 | 119,624 | ||||||||||
Total non interest expenses | 87,389 | 3,849 | 31,083 | 122,321 | ||||||||||
Income before income tax expense | 38,646 | 529 | 105,022 | 144,197 | ||||||||||
Income tax expense | 12,183 | 185 | 37,680 | 50,048 | ||||||||||
Net income | $ | 26,463 | $ | 344 | $ | 67,342 | $ | 94,149 | ||||||
Segment end of period total assets | $ | 3,099,426 | $ | 10,880 | $ | 309,685 | $ | 3,419,991 | ||||||
Net interest margin | 3.55 | % | NM | NM | 5.09 | % | ||||||||
Segment assets are reported as of the respective period ends while income and margin data are reported for the respective periods. | ||||||||||||||
NM — Not Meaningful | ||||||||||||||
SUMMARY_OF_QUARTERLY_FINANCIAL
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | |||||||||||||
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | |||||||||||||
23. SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||
Presented below is a summary of the consolidated quarterly financial data for the years ended December 31, 2013 and 2012. | ||||||||||||||
Fourth | Third | Second | First | |||||||||||
($ in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter(1) | ||||||||||
2013:00:00 | ||||||||||||||
Interest income | $ | 32,039 | $ | 34,009 | $ | 34,119 | $ | 34,401 | ||||||
Interest expense | 5,300 | 5,470 | 5,352 | 5,271 | ||||||||||
Net interest income | 26,739 | 28,539 | 28,767 | 29,130 | ||||||||||
Provision for loan losses | 503 | 2,200 | 905 | (625 | ) | |||||||||
Net interest income after provision | 26,236 | 26,339 | 27,862 | 29,755 | ||||||||||
Non interest income | 7,122 | 7,539 | 10,783 | 22,525 | ||||||||||
Non interest expenses (3) | 30,337 | 26,325 | 29,699 | 31,302 | ||||||||||
Income before income tax expense | 3,021 | 7,553 | 8,946 | 20,978 | ||||||||||
Income tax expense (4) | 1,676 | 2,950 | 2,827 | 7,622 | ||||||||||
Net income | 1,345 | 4,603 | 6,119 | 13,356 | ||||||||||
Basic earnings per share: | ||||||||||||||
Class A Common Stock | 0.07 | 0.22 | 0.3 | 0.64 | ||||||||||
Class B Common Stock | 0.05 | 0.21 | 0.28 | 0.63 | ||||||||||
Diluted earnings per share: | ||||||||||||||
Class A Common Stock | 0.07 | 0.22 | 0.3 | 0.64 | ||||||||||
Class B Common Stock | 0.05 | 0.21 | 0.28 | 0.62 | ||||||||||
Dividends declared per common share: | ||||||||||||||
Class A Common Stock | 0.176 | 0.176 | 0.176 | 0.165 | ||||||||||
Class B Common Stock | 0.16 | 0.16 | 0.16 | 0.15 | ||||||||||
Fourth | Third | Second | First | |||||||||||
($ in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter(1) | ||||||||||
2012:00:00 | ||||||||||||||
Interest income | $ | 35,930 | $ | 34,128 | $ | 33,814 | $ | 79,587 | ||||||
Interest expense | 5,379 | 5,556 | 5,502 | 6,367 | ||||||||||
Net interest income | 30,551 | 28,572 | 28,312 | 73,220 | ||||||||||
Provision for loan losses | 1,324 | 2,083 | 466 | 11,170 | ||||||||||
Net interest income after provision | 29,227 | 26,489 | 27,846 | 62,050 | ||||||||||
Non interest income (2) | 9,338 | 34,845 | 14,086 | 106,809 | ||||||||||
Non interest expenses (3) | 28,379 | 29,762 | 27,451 | 41,153 | ||||||||||
Income before income tax expense | 10,186 | 31,572 | 14,481 | 127,706 | ||||||||||
Income tax expense | 3,565 | 10,904 | 4,903 | 45,234 | ||||||||||
Net income | 6,621 | 20,668 | 9,578 | 82,472 | ||||||||||
Basic earnings per share: | ||||||||||||||
Class A Common Stock | 0.33 | 0.99 | 0.46 | 3.94 | ||||||||||
Class B Common Stock | 0.21 | 0.97 | 0.44 | 3.92 | ||||||||||
Diluted earnings per share: | ||||||||||||||
Class A Common Stock | 0.33 | 0.98 | 0.46 | 3.92 | ||||||||||
Class B Common Stock | 0.21 | 0.97 | 0.44 | 3.9 | ||||||||||
Dividends declared per common share: | ||||||||||||||
Class A Common Stock (4) | 1.265 | 0.165 | 0.165 | 0.154 | ||||||||||
Class B Common Stock (4) | 1.15 | 0.15 | 0.15 | 0.14 | ||||||||||
(1) - The first quarters of 2013 and 2012 were significantly impacted by the TRS operating division. | ||||||||||||||
For additional discussion regarding TRS, a division of Republic Processing Group, see the following sections: | ||||||||||||||
· Part I Item 1A “Risk Factors” | ||||||||||||||
· Republic Processing Group | ||||||||||||||
· Part II Item 8 “Financial Statements and Supplementary Data” | ||||||||||||||
· Footnote 1 “Summary of Significant Accounting Policies” | ||||||||||||||
· Footnote 4 “Loans and Allowance for Loan Losses” | ||||||||||||||
· Footnote 22 “Segment Information” | ||||||||||||||
(2) - Non-interest income: | ||||||||||||||
During the first quarter of 2012, the Company recorded a pre-tax bargain purchase gain of $27.9 million as a result of the TCB acquisition. The bargain purchase gain was realized because the overall price paid by RB&T was substantially less than the fair value of the TCB assets acquired and liabilities assumed in the transaction. | ||||||||||||||
During the third quarter of 2012, the Bank recorded a pre-tax bargain purchase gain of $27.1 million as a result of the FCB acquisition. The bargain purchase gain was realized because the overall price paid by RB&T was substantially less than the fair value of the FCB assets acquired and liabilities assumed in the transaction. | ||||||||||||||
(3) - Non-interest expenses: | ||||||||||||||
During the fourth quarter of 2013, the TRS division of the RPG segment incurred $1.4 million in expenses associated with the conclusions of RPG’s third party arbitration with JHI. | ||||||||||||||
During the third quarter of 2013, the Bank reversed $3.3 million of 2013 incentive compensation accruals based on revised payout estimates. | ||||||||||||||
During the first quarter 2012, the Bank experienced increases of $939,000 to non-interest expenses as a result of the TCB acquisition. | ||||||||||||||
During the first quarter of 2012, the Bank prepaid $81 million in FHLB advances that were originally scheduled to mature between October 2012 and May 2013. These advances had a weighted average cost of 3.56%. The Bank recognized a $2.4 million early termination penalty during the first quarter of 2012 in connection with this prepayment. | ||||||||||||||
During the third quarter of 2012, the Bank experienced increases of approximately $3.0 million as a result of the 2012 acquisitions. | ||||||||||||||
(4) — Dividends declared per common share: | ||||||||||||||
During the fourth quarter of 2012, the Bank declared a special one-time cash dividend of $1.10 per share on Class A Common Stock and $1.00 per share on Class B Common Stock. | ||||||||||||||
OTHER_COMPREHENSIVE_INCOME
OTHER COMPREHENSIVE INCOME | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
OTHER COMPREHENSIVE INCOME | ' | ||||||||||
OTHER COMPREHENSIVE INCOME. | ' | ||||||||||
24. OTHER COMPREHENSIVE INCOME | |||||||||||
OCI components and related tax effects were as follows: | |||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||
Available for Sale Securities: | |||||||||||
Unrealized gains (losses) on securities available for sale | $ | (4,747 | ) | $ | 1,043 | $ | (893 | ) | |||
Change in unrealized gain (losses) on securities available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings | 742 | 1,279 | (145 | ) | |||||||
Reclassification adjustment for gains recognized in earnings | — | (56 | ) | (2,285 | ) | ||||||
Reclassification adjustment for other-than-temporary impairment recognized in earnings | — | — | 279 | ||||||||
Net unrealized gains (losses) | (4,005 | ) | 2,266 | (3,044 | ) | ||||||
Tax effect | 1,403 | (793 | ) | 1,065 | |||||||
Net of tax | (2,602 | ) | 1,473 | (1,979 | ) | ||||||
Cash Flow Hedges: | |||||||||||
Change in fair value of derivatives used for cash flow hedges | 170 | — | — | ||||||||
Reclassification adjustment for gains realized in income | — | — | — | ||||||||
Net unrealized gains | 170 | — | — | ||||||||
Tax effect | (59 | ) | — | — | |||||||
Net of tax | 111 | — | — | ||||||||
$ | (2,491 | ) | $ | 1,473 | $ | (1,979 | ) | ||||
The following is a summary of the accumulated OCI balances, net of tax: | |||||||||||
(in thousands) | Balance at | Current Year | Balance at | ||||||||
December 31, | Change | December 31, | |||||||||
2012 | 2013 | ||||||||||
Unrealized gains (losses) on securities available for sale | $ | 5,610 | $ | (3,084 | ) | $ | 2,526 | ||||
Unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings | 2 | 482 | 484 | ||||||||
Unrealized gains on cash flow hedge | — | 111 | 111 | ||||||||
$ | 5,612 | $ | (2,491 | ) | $ | 3,121 | |||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Nature of Operations and Principles of Consolidation | ' |
Nature of Operations and Principles of Consolidation — The consolidated financial statements include the accounts of Republic Bancorp, Inc. (the “Parent Company”) and its wholly-owned subsidiaries: Republic Bank & Trust Company (“RB&T”) and Republic Bank (“RB”) (collectively referred together as the “Bank”). Republic Invest Co., a former subsidiary of RB&T, and its subsidiary, Republic Capital LLC, were dissolved in April 2013 in connection with the full repayment by RB&T of intragroup subordinated debentures issued by Republic Capital LLC in a 2004 intragroup trust preferred transaction. All companies are collectively referred to as “Republic” or the “Company.” All significant intercompany balances and transactions are eliminated in consolidation. | |
As of December 31, 2013, the Company was divided into three distinct business operating segments: Traditional Banking, Mortgage Banking and Republic Processing Group (“RPG”). During the second quarter of 2012, the Company realigned the previously reported Tax Refund Solutions (“TRS”) segment as a division of the newly formed RPG segment. Along with the TRS division, Republic Payment Solutions (“RPS”) and Republic Credit Solutions (“RCS”) also operate as divisions of the RPG segment. | |
Use of Estimates | ' |
Use of Estimates — Financial statements prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) require management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Critical accounting estimates relate to: | |
· Allowance for loan losses (“Allowance”) and Provision for Loan Losses | |
· Acquisition Accounting | |
· Goodwill and Other Intangible Assets | |
· Mortgage Servicing Rights | |
· Income Tax Accounting | |
· Investment Securities | |
· Other real estate owned (“OREO”) | |
These estimates are particularly subject to change and actual results could differ from these estimates. | |
Concentration of Credit Risk | ' |
Concentration of Credit Risk — Most of the Company’s Traditional Banking business activity is with customers located in Kentucky, Southern Indiana, Florida, Tennessee and Minnesota. The Company’s Traditional Banking exposure to credit risk is significantly affected by changes in the economy in these specific areas. Furthermore, the Company’s warehouse lines are secured by single family, first lien residential real estate loans originated by the Bank’s mortgage clients across the nation. As of December 31, 2013, 44% of collateral securing warehouse lines were located in California. | |
Earnings Concentration | ' |
Earnings Concentration — For 2013, 2012 and 2011, approximately 9%, 38% and 52% of total Company net revenues (interest income plus non-interest income) were derived from RPG’s TRS division. | |
Cash Flows | ' |
Cash Flows — Cash and cash equivalents include cash, deposits with other financial institutions with original maturities less than 90 days and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest-bearing deposits in other financial institutions, repurchase agreements and income taxes. | |
Interest Bearing Deposits in Other Financial Institutions | ' |
Interest-Bearing Deposits in Other Financial Institutions — Interest-bearing deposits in other financial institutions mature within one year and are carried at cost. | |
Trust Assets | ' |
Trust Assets — Property held for customers in fiduciary or agency capacities, other than trust cash on deposit at RB&T, is not included in the consolidated financial statements since such items are not assets of RB&T. | |
Securities | ' |
Securities — Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. | |
Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. | |
Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. OTTI related to credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. | |
In order to determine OTTI for purchased beneficial interests that, on the purchase date, were not highly rated, the Bank compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. | |
Acquisition Accounting | ' |
Acquisition Accounting — The Bank accounts for its 2012 FDIC-assisted acquisitions in accordance with the acquisition method as outlined in Accounting Standards Codification (“ASC”) Topic 805, Business Combinations. The acquisition method requires: a) identification of the entity that obtains control of the acquiree; b) determination of the acquisition date; c) recognition and measurement of the identifiable assets acquired and liabilities assumed, and any noncontrolling interest in the acquiree; and d) recognition and measurement of goodwill or bargain purchase gain. | |
Identifiable assets acquired, liabilities assumed, and any noncontrolling interest in acquirees are generally recognized at their acquisition date (“day-one”) fair values based on the requirements of ASC Topic 820, Fair Value Measurements and Disclosures. The measurement period for day-one fair values begins on the acquisition date and ends the earlier of: (a) the day management believes it has all the information necessary to determine day-one fair values; or (b) one year following the acquisition date. In many cases, the determination of day-one fair values requires management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly complex and subjective in nature and subject to recast adjustments, which are retrospective adjustments to reflect new information existing at the acquisition date affecting day-one fair values. More specifically, these recast adjustments for loans and other real estate owned may be made, as market value data, such as appraisals, are received by the bank. Increases or decreases to day-one fair values are reflected with a corresponding increase or decrease to bargain purchase gain or goodwill. | |
Acquisition related costs are expensed as incurred unless those costs are related to issuing debt or equity securities used to finance the acquisition. | |
Mortgage Banking Activities | ' |
Mortgage Banking Activities — Mortgage loans originated and intended for sale in the secondary market are carried at fair value, as determined by outstanding commitments from investors. Net gains and losses are recorded as a component of mortgage banking income. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. Substantially all of the gain or loss on the sale of loans are reported in earnings when loans are locked. | |
Commitments to fund mortgage loans (“interest rate lock commitments”) to be sold into the secondary market and non-exchange traded mandatory forward sales contracts (“forward contracts”) for the future delivery of these mortgage loans are accounted for as free standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the Bank enters into the derivative. Generally, the Bank enters into forward contracts for the future delivery of mortgage loans when interest rate lock commitments are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these mortgage derivatives are included in net gains on sales of loans, which is a component of Mortgage Banking income on the income statement. | |
Mortgage loans held for sale are generally sold with the mortgage servicing rights (“MSR”) retained. When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in net gains on sales of loans, which is a component of Mortgage Banking income on the income statement. Fair value is based on market prices for comparable mortgage servicing contracts, when available or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Amortization of MSRs are initially set at seven years and subsequently adjusted on a quarterly basis based on the weighted average remaining life of the underlying loans. | |
MSRs are evaluated for impairment quarterly based upon the fair value of the MSRs as compared to carrying amount. Impairment is determined by stratifying MSRs into groupings based on predominant risk characteristics, such as interest rate, loan type, loan terms and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Bank later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the valuation allowance may be recorded as an increase to income. Changes in valuation allowances are reported within Mortgage Banking income on the income statement. The fair values of MSRs are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates. | |
A primary factor influencing the fair value is the estimated life of the underlying serviced loans. The estimated life of the serviced loans is significantly influenced by market interest rates. During a period of declining interest rates, the fair value of the MSRs generally will decline due to higher expected prepayments within the portfolio. Alternatively, during a period of rising interest rates the fair value of MSRs generally will increase as prepayments on the underlying loans would be expected to decline. Based on the estimated fair value at December 31, 2013 and 2012, management determined there was $0 and $345,000 impairment within the MSR portfolio. | |
Loan servicing income is reported on the income statement as a component of Mortgage Banking income. Loan servicing income is recorded as loan payments are collected and includes servicing fees from investors and certain charges collected from borrowers. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. The amortization of MSRs is netted against loan servicing fee income. Loan servicing income totaled $2.1 million, $2.2 million and $2.8 million for the years ended December 31, 2013, 2012 and 2011. Late fees and ancillary fees related to loan servicing are not material. | |
Loans | ' |
Loans — Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of purchase premiums or discounts, deferred loan fees and costs and the Allowance. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level yield method without anticipating prepayments. | |
Interest income on mortgage and commercial loans is typically discontinued at the time the loan is 80 days delinquent unless the loan is well-secured and in process of collection. Past due status is based on the contractual terms of the loan. In most cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Non-accrual loans and loans past due 80 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. | |
All interest accrued but not received for all classes of loans placed on non-accrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost recovery method, 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, typically a minimum of six months of performance. Consumer and credit card loans, are not placed on non-accrual status, but are reviewed periodically and charged off when the loans reach 90 days past due or at any point the loan is deemed uncollectible. | |
Loans purchased in the Company’s 2012 FDIC-assisted acquisitions are accounted for using one of the following accounting standards: | |
· ASC Topic 310-20, Non Refundable Fees and Other Costs, is used to value loans that have not demonstrated post origination credit quality deterioration and the acquirer expects to collect all contractually required payments from the borrower. For these loans, the difference between the loan’s day-one fair value and amortized cost would be amortized or accreted into income using the interest method. | |
· ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, is used to value loans with post origination credit quality deterioration. For these loans, it is probable the acquirer will be unable to collect all contractually required payments from the borrower. Under ASC Topic 310-30, the expected cash flows that exceed the initial investment in the loan (fair value) represent the “accretable yield,” which is recognized as interest income on a level-yield basis over the expected cash flow periods of the loans. | |
Purchased Loans (ASC Topic 310-20) | ' |
Purchased Loans (ASC Topic 310-20) — Purchased loans accounted for under ASC Topic 310-20 are accounted for as any other Bank-originated loan, potentially becoming nonaccrual or impaired, as well as being risk rated under the Bank’s standard practices and procedures. In addition, these loans are considered in the determination of the Allowance once day-one fair values are final. | |
Purchased Credit Impaired ("PCI") Loans (ASC Topic 310-30) | ' |
Purchased Credit Impaired (“PCI”) Loans (ASC Topic 310-30) — In determining the day-one fair values of PCI loans, management considers a number of factors including, among other things, the estimated remaining life of the acquired loans, estimated prepayments, estimated loss ratios, estimated value of the underlying collateral, estimated holding periods and net present value of cash flows expected to be received. For the Company’s 2012 FDIC-assisted acquisitions, RB&T elected to account for PCI loans individually, as opposed to aggregating the loans into pools based on common risk characteristics such as loan type. | |
Management separately monitors the PCI portfolio and on a quarterly basis reviews the loans contained within this portfolio against the factors and assumptions used in determining the day-one fair values. In addition to its quarterly evaluation, a loan is typically reviewed when it is modified or extended, or when material information becomes available to the Bank that provides additional insight regarding the loan’s performance, estimated life, the status of the borrower, or the quality or value of the underlying collateral. | |
To the extent that a PCI loan’s performance does not reflect an increased risk of loss of contractual principal beyond the non-accretable yield established as part of its initial day-one evaluation, such loan would be classified in the Purchased Credit Impaired - Group 1 (“PCI-1”) category; whose credit risk is considered equivalent to a non-PCI “Special Mention” loan within the Bank’s credit rating matrix. PCI-1 loans are considered impaired if, based on current information and events, it is probable that the future estimated cash flows of the loan have deteriorated from management’s initial estimate. Provisions for loan losses are made for impaired PCI-1 loans to further discount the loan and allow its yield to conform to at least management’s initial expectations. Any improvement in the expected performance of a PCI-1 loan would result in a reversal of the provision for loan losses to the extent of prior charges and then an adjustment to accretable yield, which would have a positive impact on interest income. | |
If during the Bank’s periodic evaluations of its PCI loan portfolio, management deems a PCI-1 loan to have an increased risk of loss of contractual principal beyond the non-accretable yield established as part of its initial day-one evaluation, such loan would be classified PCI-Substandard (“PCI-Sub”) within the Bank’s credit risk matrix. Management deems the risk of default and overall credit risk of a PCI-Sub loan to be greater than a PCI-1 loan and more analogous to a non-PCI “Substandard” loan. PCI-Sub loans are considered to be impaired. Any improvement in the expected performance of a PCI-Sub loan would result in a reversal of the provision for loan losses to the extent of prior charges and then an adjustment to accretable yield, which would have a positive impact on interest income. | |
PCI loans may be contractually past due 80 days-or-more and continue to accrue interest if future cash flows can be reasonably projected to allow continuation of discount accretion. | |
PCI loans would be placed on non-accrual when management determines that based on estimated cash flow, the Bank will be unable to accrete any yield on such loan. PCI loans may also be placed on non-accrual if management cannot reasonably estimate future cash flows on such loans | |
Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”) and classified as impaired. If a troubled debt restructuring is performed on a PCI loan, the loan is considered impaired under the applicable TDR accounting standards and transferred out of the PCI population. The loan may require an additional provision for loan losses if its restructured cash flows are less than management’s initial day-one expectations. PCI loans for which the Bank simply chooses to extend the maturity date are generally not considered TDRs and remain in the PCI population. | |
Allowance for Loan Losses | ' |
Allowance for Loan Losses — The Allowance is a valuation allowance for probable incurred credit losses and includes overdrawn deposit accounts. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using historical loan loss experience, the nature and volume of the portfolio, information about specific borrower situations, estimated collateral values, economic conditions and other factors. Allocations of the allowance may be made for specific classes, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. | |
Management evaluates the adequacy of the Allowance on a monthly basis and presents and discusses the analysis with the Audit Committee and the Board of Directors on a quarterly basis. | |
The Allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component is based on historical loss experience adjusted for qualitative factors. | |
A loan is impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans that meet the following classifications are considered impaired: | |
· All loans internally rated as “Substandard,” “Doubtful” or “Loss;” | |
· All loans internally rated in a PCI category with cash flows that have deteriorated from management’s initial estimate; | |
· All loans on non-accrual status and non-PCI loans past due 90 days-or-more still on accrual; | |
· All retail and commercial TDRs; and | |
· Any other situation where the full collection of the total amount due for a loan is improbable or otherwise meets the definition of impaired. | |
The Bank’s classified and special mention loans are generally commercial and industrial (“C&I”) and commercial real estate (“CRE”) loans but also include large single family residential and home equity loans, as well as TDRs, whether retail or commercial in nature. The Bank reviews and monitors these loans on a regular basis. Generally, loans are designated as classified or special mention to ensure more frequent monitoring. These loans are reviewed to ensure proper earning status and management strategy. If it is determined that there is serious doubt as to performance in accordance with original or modified contractual terms, then the loan is generally downgraded and often placed on non-accrual status. | |
Generally accepted accounting principles recognizes three methods to measure specific loan impairment, including: | |
· Cash Flow Method — The recorded investment in the loan is measured against the present value of expected future cash flows discounted at the loan’s effective interest rate. The Bank employs this method for a significant portion of its impaired TDRs. Impairment amounts under this method are reflected in the Bank’s Allowance as specific reserves on the respective impaired loan. These specific reserves are adjusted quarterly based upon reevaluation of the loan’s expected future cash flows and changes in the recorded investment in such loans. | |
· Collateral Method — The recorded investment in the loan is measured against the fair value of the loan’s collateral value less applicable selling costs. The Bank employs the fair value of collateral method for its impaired loans when the loan’s repayment is based solely on the sale of or the operations of the underlying collateral. Collateral fair value is typically based on the most recent real estate appraisal on file. Measured impairment under this method is classified loss and charged off. The Bank’s selling costs for its collateral dependent loans typically range from 10-13% of the fair value of the underlying collateral, depending on the loan class. Selling costs are not applicable for collateral dependent loans whose repayment is based solely on the operations of the underlying collateral. | |
· Market Value Method — The recorded investment in the loan is measured against the loan’s obtainable market value. The Bank does not currently employ this technique as it is typically impractical. | |
In addition to obtaining appraisals at the time of loan origination, the Bank typically updates appraisals and/or broker price opinions for loans with potential impairment. Updated valuations for commercial related loans exhibiting an increased risk of loss are typically obtained within one year of the last appraisal. Collateral values for past due residential mortgage loans and home equity loans are generally updated prior to a loan becoming 80 days delinquent, but no more than 180 days past due. When determining the amount of reserve, to the extent updated collateral values cannot be obtained due to the lack of recent comparable sales or for other reasons, the Bank discounts the valuation of the collateral primarily based on the age of the appraisal and the real estate market conditions of the location of the underlying collateral. | |
The general component of the Allowance covers loans collectively evaluated for impairment and is based on historical loss experience with potential adjustments for current relevant qualitative factors. The historical loss experience is determined by loan performance and class and is based on the actual loss history experienced by the Bank. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are included in the general component unless the loans are classified as TDRs. | |
For loans not considered impaired, management evaluates the loan portfolio by reviewing the historical loss rate for each respective loan class. Management evaluates the following historical loss rate scenarios: | |
· Rolling four quarter average | |
· Rolling eight quarter average | |
· Rolling twelve quarter average | |
· Rolling sixteen quarter average | |
· Rolling twenty quarter average | |
· Current year to date historical loss factor average | |
· Peer group loss factors | |
For the Bank’s current Allowance methodology, management uses the higher of the rolling eight, twelve, or sixteen quarter averages for each loan class when determining its historical loss factors for its “Pass” rated and nonrated loans. | |
Loan classes are also evaluated utilizing subjective factors in addition to the historical loss calculations to determine a loss allocation for each of those classes. Management assigns risk multiples to certain classes to account for qualitative factors such as: | |
· Changes in nature, volume and seasoning of the loan portfolio; | |
· Changes in experience, ability, and depth of lending management and other relevant staff; | |
· Changes in the quality of the Bank’s loan review program; | |
· Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; | |
· Changes in the volume and severity of past due, nonaccrual and classified loans; | |
· Changes in the value of underlying collateral for collateral-dependent loans; | |
· Changes in international, national, regional, and local economic and business conditions and developments that affect the collectibility of the loan portfolio, including the condition of various market segments; | |
· The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and | |
· The effect of other external factors such as competition, legal and regulatory requirements on the level of estimated credit losses in the Bank’s existing portfolio. | |
As this analysis, or any similar analysis, is an imprecise measure of loss, the Allowance is subject to ongoing adjustments. Therefore, management will often take into account other significant factors that may be necessary or prudent in order to reflect probable incurred losses in the total loan portfolio. | |
A “portfolio segment” is defined as the level at which an entity develops and documents a systematic methodology to determine its Allowance. A “class” of loans represents further disaggregation of a portfolio segment based on risk characteristics and the entity’s method for monitoring and assessing credit risk. In developing its allowance methodology, the Company has identified the following Traditional Banking portfolio segments: | |
Portfolio Segment 1 — Loans where the allowance methodology is determined based on a loan grading system (primarily commercial related loans). | |
For this portfolio, the Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, public information, and current economic trends. The Bank also considers the fair value of the underlying collateral and the strength and willingness of the guarantor(s). The Bank analyzes loans individually, and based on this analysis, establishes a credit risk rating consistent with its credit risk matrix. | |
Portfolio Segment 2 — Loans where the allowance methodology is driven by delinquency and non-accrual data (primarily retail mortgage or consumer related). | |
For this portfolio, the Bank analyzes risk classes based on delinquency and/or non-accrual status. | |
See Footnote 4 “Loans and Allowance for Loan Losses” in this section of the filing for additional discussion regarding the Company’s Allowance. | |
Transfers of Financial Assets | ' |
Transfers of Financial Assets — Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, 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 the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |
Other Real Estate Owned | ' |
Other Real Estate Owned — Assets acquired through loan foreclosures are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. The Bank’s selling costs for OREO typically range from 10-13% of each property’s fair value, depending on property class. Fair value is commonly based on recent real estate appraisals or broker price opinions. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. | |
Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Bank. Once the appraisal is received, a member of the Bank’s Credit Administration Department (“CAD”) reviews the assumptions and approaches utilized in the appraisal, as well as the overall resulting fair value in comparison with independent data sources, such as recent market data or industry-wide statistics. On an annual basis, the Bank compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustment, if any, should be made to the appraisal value to arrive at an estimated fair value. | |
Fair value is commonly based on recent real estate appraisals or broker price opinions. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. | |
Premises and Equipment, Net | ' |
Premises and Equipment, Net — Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the related assets on the straight-line method. Estimated lives typically range from 25 to 39 years for buildings and improvements, three to ten years for furniture, fixtures and equipment and three to five years for leasehold improvements. | |
Federal Home Loan Bank Stock | ' |
Federal Home Loan Bank Stock — The Bank is a member of the Federal Home Loan Bank (“FHLB”) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security and periodically evaluated for impairment. Because this stock is viewed as a long-term investment, impairment is based on ultimate recovery of par value. Both cash and stock dividends are recorded as interest income. | |
Bank Owned Life Insurance ("BOLI") | ' |
Bank Owned Life Insurance (“BOLI”) — During the fourth quarter of 2013, the Bank purchased $25 million in BOLI policies on certain employees. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. The Bank recognizes tax-free income from the periodic increases in cash surrender value of these policies and from death benefits in non-interest income. | |
Goodwill and Other Intangible Assets | ' |
Goodwill and Other Intangible Assets — Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009 represents the future economic benefits arising from other assets acquired that are individually identified and separately recognized. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. | |
The Company has selected September 30th as the date to perform its annual goodwill impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the Bank’s balance sheet. | |
Based on its assessment, the Company believes its goodwill of $10 million was not impaired and is properly recorded in the consolidated financial statements as of December 31, 2013 and 2012. | |
Other intangible assets consist of core deposit and acquired customer relationship intangible assets arising from bank acquisitions. They are initially measured at fair value and then are amortized on an accelerated method over their estimated useful lives, which can range from two to ten years. During 2013, the Company amortized all $510,000 in other intangible assets held as of December 31, 2012. | |
Off Balance Sheet Financial Instruments | ' |
Off Balance Sheet Financial Instruments — Financial instruments include off balance sheet credit instruments, such as commitments to fund loans and standby letters of credit. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded upon funding. Instruments such as standby letters of credit are considered financial guarantees and are recorded at fair value. | |
Derivatives | ' |
Derivatives — Derivatives are recognized as assets and liabilities on the consolidated balance sheets and measured at fair value. The Company’s derivatives include interest rate swap agreements. For asset/liability management purposes, the Bank uses interest rate swap agreements to hedge the exposure or to modify the interest rate characteristic of certain immediately repricing liabilities. For a derivative 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. Offsetting fair values are recorded in other assets and other liabilities with no net effect on other operating income. | |
Net cash settlements on interest rate swaps are recorded in interest expense and cash flows related to the swaps are classified in the cash flow statement the same as the interest expense and cash flows from the liabilities being hedged. The Bank formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet. The Bank also formally assesses, both at the hedge’s inception and on an ongoing basis, whether a swap is highly effective in offsetting changes in cash flows of the hedged items. The Bank discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in cash flows of the hedged item, the derivative is settled or terminates, or treatment of the derivative as a hedge is no longer appropriate or intended. | |
When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. | |
Stock Based Compensation | ' |
Stock Based Compensation — For stock options and restricted stock awards issued to employees, compensation cost is recognized based on the fair value of these awards at the date of grant. The Company utilizes a Black-Scholes model to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. | |
Income Taxes | ' |
Income Taxes — Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized | |
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | |
Retirement Plans | ' |
Retirement Plans — 401(k) plan expense is recorded as a component of salaries and employee benefits and represents the amount of Company matching contributions. | |
Earnings Per Common Share | ' |
Earnings Per Common Share — Basic earnings per share is based on net income (in the case of Class B Common Stock, less the dividend preference on Class A Common Stock), divided by the weighted average number of shares outstanding during the period. Diluted earnings per share include the dilutive effect of additional potential Class A common shares issuable under stock options. Earnings and dividends per share are restated for all stock dividends through the date of issuance of the financial statements. | |
Comprehensive Income | ' |
Comprehensive Income — Comprehensive income consists of net income and other comprehensive income (“OCI”). OCI includes unrealized gains and losses on securities available for sale, net of tax, and unrealized gains and losses on cash flow hedges, which are also recognized as a separate component of equity. | |
Loss Contingencies | ' |
Loss Contingencies — Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any outstanding matters that would have a material effect on the financial statements. | |
Restrictions on Cash and Cash Equivalents | ' |
Restrictions on Cash and Cash Equivalents — Republic is required by the Federal Reserve Bank (“FRB”) to maintain average reserve balances. Cash and due from banks on the consolidated balance sheet includes $168,000 and $744,000 of required reserve balances at December 31, 2013 and 2012. The Bank earns a nominal interest rate for balances held at the FRB in excess of required reserves. The Bank does not earn interest on cash balances at its branches and within its Automated Teller Machine (“ATM”) network. | |
Equity | ' |
Equity — Stock dividends in excess of 20% are reported by transferring the par value of the stock issued from retained earnings to common stock. Stock dividends for 20% or less are reported by transferring the fair value, as of the ex-dividend date, of the stock issued from retained earnings to common stock and additional paid in capital. Fractional share amounts are paid in cash with a reduction in retained earnings. | |
Dividend Restrictions | ' |
Dividend Restrictions — Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to Republic or by Republic to shareholders. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments — Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Footnote 5 “Fair Value” in this section of the filing. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. | |
Segment Information | ' |
Segment Information — Segments represent parts of the Company evaluated by management with separate financial information. Republic’s internal information is primarily reported and evaluated in three lines of business — Traditional Banking, Mortgage Banking and RPG. | |
Reclassifications and recasts | ' |
Reclassifications and recasts — Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. These reclassifications had no impact on previously reported prior periods’ net income. Additionally, as discussed in Footnote 2 “2012 FDIC-Assisted Acquisitions,” during the first quarter of 2013 the Bank posted adjustments to the FCB acquired assets in the determination of acquisition day (“day-one”) fair values, which resulted in a $1.3 million increase to the bargain purchase gain presented. |
2012_FDICASSISTED_ACQUISITIONS1
2012 FDIC-ASSISTED ACQUISITIONS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
2012 Fdic - assisted acquisitions of failed banks | ' | |||||||||||||
Schedule of Changes in Accretable Discount on PCI Loans [Table Text Block] | ' | |||||||||||||
Tennessee | First | |||||||||||||
Commerce | Commercial | |||||||||||||
(in thousands) | Bank | Bank | Total | |||||||||||
Day-one 2012 beginning balances, as recasted | $ | (498 | ) | $ | (2,912 | ) | $ | (3,410 | ) | |||||
Transfers between non-accretable and accretable | — | — | — | |||||||||||
Accreted/(Amortized) into interest income on loans, including loan fees | 179 | 136 | 315 | |||||||||||
Other changes | — | — | — | |||||||||||
Balance December 31, 2012 | $ | (319 | ) | $ | (2,776 | ) | $ | (3,095 | ) | |||||
Transfers between non-accretable and accretable | (2,771 | ) | (3,684 | ) | (6,455 | ) | ||||||||
Accreted/(Amortized) into interest income on loans, including loan fees | 1,926 | 4,167 | 6,093 | |||||||||||
Other changes | — | — | — | |||||||||||
Balance December 31, 2013 | $ | (1,164 | ) | $ | (2,293 | ) | $ | (3,457 | ) | |||||
Tennessee Commerce Bank ("TCB") | ' | |||||||||||||
2012 Fdic - assisted acquisitions of failed banks | ' | |||||||||||||
Assets Acquired and Liabilities Assumed Including Recast Adjustments | ' | |||||||||||||
Tennessee Commerce Bank | ||||||||||||||
January 27, 2012 | ||||||||||||||
As Previously Reported | As Recasted | |||||||||||||
Contractual | Fair Value | 2012 Recast | Fair | |||||||||||
(in thousands) | Amount | Adjustments | Adjustments | Value | ||||||||||
Assets acquired: | ||||||||||||||
Cash and cash equivalents | $ | 61,943 | $ | (89 | ) | $ | (2 | ) | $ | 61,852 | ||||
Securities available for sale | 42,646 | — | — | 42,646 | ||||||||||
Loans to be repurchased by the FDIC, net of discount | 19,800 | (2,797 | ) | — | 17,003 | |||||||||
Loans | 79,112 | (22,666 | ) | 830 | 57,276 | |||||||||
Federal Home Loan Bank stock, at cost | 2,491 | — | — | 2,491 | ||||||||||
Other real estate owned | 14,189 | (3,359 | ) | (1,113 | ) | 9,717 | ||||||||
Core deposit intangible | — | 64 | — | 64 | ||||||||||
Discount | (56,970 | ) | 56,970 | — | — | |||||||||
FDIC settlement receivable | 784,545 | — | — | 784,545 | ||||||||||
Other assets and accrued interest receivable | 945 | (60 | ) | — | 885 | |||||||||
Total assets acquired | $ | 948,701 | $ | 28,063 | $ | (285 | ) | $ | 976,479 | |||||
Liabilities assumed: | ||||||||||||||
Deposits: | ||||||||||||||
Non interest-bearing | $ | 19,754 | $ | — | $ | — | $ | 19,754 | ||||||
Interest-bearing | 927,641 | 54 | — | 927,695 | ||||||||||
Total deposits | 947,395 | 54 | — | 947,449 | ||||||||||
Accrued income taxes payable | — | 9,988 | (100 | ) | 9,888 | |||||||||
Other liabilities and accrued interest payable | 1,306 | 110 | — | 1,416 | ||||||||||
Total liabilities assumed | $ | 948,701 | $ | 10,152 | $ | (100 | ) | $ | 958,753 | |||||
Equity: | ||||||||||||||
Bargain purchase gain, net of taxes | — | 17,911 | (185 | ) | 17,726 | |||||||||
Total liabilities assumed and equity | $ | 948,701 | $ | 28,063 | $ | (285 | ) | $ | 976,479 | |||||
Summary of Net Assets Acquired from FDIC and Estimated Fair Value Adjustments | ' | |||||||||||||
Tennessee Commerce Bank | ||||||||||||||
January 27, 2012 | ||||||||||||||
Second Quarter | Third Quarter | |||||||||||||
As Previously | 2012 Recast | 2012 Recast | As | |||||||||||
(in thousands) | Reported | Adjustments | Adjustments | Recasted | ||||||||||
Assets acquired, at contractual amount | $ | 221,126 | $ | — | $ | — | $ | 221,126 | ||||||
Liabilities assumed, at contractual amount | (948,701 | ) | — | — | (948,701 | ) | ||||||||
Net liabilities assumed per the P&A Agreement | (727,575 | ) | — | — | (727,575 | ) | ||||||||
Contractual discount | (56,970 | ) | — | — | (56,970 | ) | ||||||||
Net receivable from the FDIC | $ | (784,545 | ) | $ | — | $ | — | $ | (784,545 | ) | ||||
Fair value adjustments: | ||||||||||||||
Loans | $ | (22,666 | ) | $ | 919 | $ | (89 | ) | $ | (21,836 | ) | |||
Discount for loans to be repurchased by the FDIC | (2,797 | ) | — | — | (2,797 | ) | ||||||||
Other real estate owned | (3,359 | ) | (1,000 | ) | (113 | ) | (4,472 | ) | ||||||
Core deposit intangible | 64 | — | — | 64 | ||||||||||
Deposits | (54 | ) | — | — | (54 | ) | ||||||||
Other assets and accrued interest receivable | (60 | ) | — | — | (60 | ) | ||||||||
All other | (199 | ) | (15 | ) | 13 | (201 | ) | |||||||
Total fair value adjustments | (29,071 | ) | (96 | ) | (189 | ) | (29,356 | ) | ||||||
Discount | 56,970 | — | — | 56,970 | ||||||||||
Bargain purchase gain, pre-tax | $ | 27,899 | $ | (96 | ) | $ | (189 | ) | $ | 27,614 | ||||
Composition of Acquired Loans | ' | |||||||||||||
Tennessee Commerce Bank | ||||||||||||||
January 27, 2012 | ||||||||||||||
As Previously Reported | As Recasted | |||||||||||||
Contractual | Fair Value | 2012 Recast | Fair | |||||||||||
(in thousands) | Amount | Adjustments | Adjustments | Value | ||||||||||
Residential real estate | $ | 22,693 | $ | (4,076 | ) | $ | 243 | $ | 18,860 | |||||
Commercial real estate | 18,646 | (6,971 | ) | 1,988 | 13,663 | |||||||||
Construction & land development | 14,877 | (2,681 | ) | (1,972 | ) | 10,224 | ||||||||
Commercial & industrial | 13,224 | (6,939 | ) | 496 | 6,781 | |||||||||
Home equity | 6,220 | (606 | ) | 24 | 5,638 | |||||||||
Consumer: | ||||||||||||||
Credit cards | 608 | (22 | ) | — | 586 | |||||||||
Overdrafts | 672 | (621 | ) | — | 51 | |||||||||
Other consumer | 2,172 | (750 | ) | 51 | 1,473 | |||||||||
Total loans | $ | 79,112 | $ | (22,666 | ) | $ | 830 | $ | 57,276 | |||||
Purchased Loans | ' | |||||||||||||
Tennessee Commerce Bank | ||||||||||||||
January 27, 2012 | ||||||||||||||
As Previously | 2012 Recast | As | ||||||||||||
(in thousands) | Reported | Adjustments | Recasted | |||||||||||
Contractually-required principal and interest payments | $ | 52,278 | $ | — | $ | 52,278 | ||||||||
Non-accretable difference | (21,308 | ) | 903 | (20,405 | ) | |||||||||
Cash flows expected to be collected | 30,970 | 903 | 31,873 | |||||||||||
Accretable difference | (425 | ) | (73 | ) | (498 | ) | ||||||||
Fair value of loans | $ | 30,545 | $ | 830 | $ | 31,375 | ||||||||
Composition of Deposits | ' | |||||||||||||
Tennessee Commerce Bank | ||||||||||||||
January 27, 2012 | ||||||||||||||
Contractual | Fair Value | Recast | Fair | |||||||||||
(in thousands) | Amount | Adjustments | Adjustments | Value | ||||||||||
Demand | $ | 3,190 | $ | — | $ | — | $ | 3,190 | ||||||
Money market accounts | 11,338 | — | — | 11,338 | ||||||||||
Savings | 91,859 | — | — | 91,859 | ||||||||||
Individual retirement accounts* | 15,486 | — | — | 15,486 | ||||||||||
Time deposits, $100,000 and over* | 278,825 | — | — | 278,825 | ||||||||||
Other certificates of deposit* | 108,003 | 14 | — | 108,017 | ||||||||||
Brokered certificates of deposit* | 418,940 | 40 | — | 418,980 | ||||||||||
Total interest-bearing deposits | 927,641 | 54 | — | 927,695 | ||||||||||
Total non interest-bearing deposits | 19,754 | — | — | 19,754 | ||||||||||
Total deposits | $ | 947,395 | $ | 54 | $ | — | $ | 947,449 | ||||||
First Commercial Bank ("FCB") | ' | |||||||||||||
2012 Fdic - assisted acquisitions of failed banks | ' | |||||||||||||
Assets Acquired and Liabilities Assumed Including Recast Adjustments | ' | |||||||||||||
First Commercial Bank | ||||||||||||||
September 7, 2012 | ||||||||||||||
As Previously Reported | As Recasted | |||||||||||||
2012 & 2013 | ||||||||||||||
Contractual | Fair Value | Recast | Fair | |||||||||||
(in thousands) | Amount | Adjustments | Adjustments | Value | ||||||||||
Assets acquired : | ||||||||||||||
Cash and cash equivalents | $ | 10,524 | $ | — | $ | — | $ | 10,524 | ||||||
Securities available for sale | 12,002 | — | — | 12,002 | ||||||||||
Loans | 171,744 | (44,214 | ) | 2,821 | 130,351 | |||||||||
Federal Home Loan Bank stock, at cost | 407 | — | — | 407 | ||||||||||
Other real estate owned | 19,360 | (8,389 | ) | (785 | ) | 10,186 | ||||||||
Core deposit intangible | — | 559 | — | 559 | ||||||||||
Discount | (79,412 | ) | 79,412 | — | — | |||||||||
FDIC settlement receivable | 64,326 | — | — | 64,326 | ||||||||||
Other assets and accrued interest receivable | 829 | (95 | ) | — | 734 | |||||||||
Total assets acquired | $ | 199,780 | $ | 27,273 | $ | 2,036 | $ | 229,089 | ||||||
Liabilities assumed: | ||||||||||||||
Deposits: | ||||||||||||||
Non interest-bearing | $ | 7,197 | $ | — | $ | — | $ | 7,197 | ||||||
Interest-bearing | 189,057 | (3 | ) | — | 189,054 | |||||||||
Total deposits | 196,254 | (3 | ) | — | 196,251 | |||||||||
Federal Home Loan Bank advances | 3,002 | 63 | — | 3,065 | ||||||||||
Accrued income taxes payable | — | 9,706 | 712 | 10,418 | ||||||||||
Other liabilities and accrued interest payable | 524 | 101 | — | 625 | ||||||||||
Total liabilities assumed | $ | 199,780 | $ | 9,867 | $ | 712 | $ | 210,359 | ||||||
Equity: | ||||||||||||||
Bargain purchase gain, net of taxes | — | 17,406 | 1,324 | 18,730 | ||||||||||
Total liabilities assumed and equity | $ | 199,780 | $ | 27,273 | $ | 2,036 | $ | 229,089 | ||||||
Summary of Net Assets Acquired from FDIC and Estimated Fair Value Adjustments | ' | |||||||||||||
First Commercial Bank | ||||||||||||||
September 7, 2012 | ||||||||||||||
Fourth Quarter | First Quarter | |||||||||||||
As Previously | 2012 Recast | 2013 Recast | As | |||||||||||
(in thousands) | Reported | Adjustments | Adjustments | Recasted | ||||||||||
Assets acquired, at contractual amount | $ | 214,866 | $ | — | $ | — | $ | 214,866 | ||||||
Liabilities assumed, at contractual amount | (199,780 | ) | — | — | (199,780 | ) | ||||||||
Net liabilities assumed per the P&A Agreement | 15,086 | — | — | 15,086 | ||||||||||
Contractual discount | (79,412 | ) | — | — | (79,412 | ) | ||||||||
Net receivable from the FDIC | $ | (64,326 | ) | $ | — | $ | — | $ | (64,326 | ) | ||||
Fair value adjustments: | ||||||||||||||
Loans | $ | (44,214 | ) | $ | 423 | $ | 2,398 | $ | (41,393 | ) | ||||
Other real estate owned | (8,389 | ) | 289 | (1,074 | ) | (9,174 | ) | |||||||
Core deposit intangible | 559 | — | — | 559 | ||||||||||
Deposits | 3 | — | — | 3 | ||||||||||
Federal Home Loan Bank advances | (63 | ) | — | — | (63 | ) | ||||||||
Other assets and accrued interest receivable | (95 | ) | — | — | (95 | ) | ||||||||
All other | (101 | ) | — | — | (101 | ) | ||||||||
Total fair value adjustments | (52,300 | ) | 712 | 1,324 | (50,264 | ) | ||||||||
Discount | 79,412 | — | — | 79,412 | ||||||||||
Bargain purchase gain, pre-tax | $ | 27,112 | $ | 712 | $ | 1,324 | $ | 29,148 | ||||||
Composition of Acquired Loans | ' | |||||||||||||
First Commercial Bank | ||||||||||||||
September 7, 2012 | ||||||||||||||
As Previously Reported | As Recasted | |||||||||||||
2012 & 2013 | ||||||||||||||
Contractual | Fair Value | Recast | Fair | |||||||||||
(in thousands) | Amount | Adjustments | Adjustments | Value | ||||||||||
Residential real estate | $ | 48,409 | $ | (9,634 | ) | $ | 180 | $ | 38,955 | |||||
Commercial real estate | 82,161 | (12,330 | ) | (1,746 | ) | 68,085 | ||||||||
Construction & land development | 14,918 | (6,182 | ) | 316 | 9,052 | |||||||||
Commercial & industrial | 25,475 | (16,060 | ) | 4,120 | 13,535 | |||||||||
Home equity | 404 | (3 | ) | — | 401 | |||||||||
Consumer: | ||||||||||||||
Credit cards | — | — | — | — | ||||||||||
Overdrafts | 6 | — | — | 6 | ||||||||||
Other consumer | 371 | (5 | ) | (49 | ) | 317 | ||||||||
Total loans | $ | 171,744 | $ | (44,214 | ) | $ | 2,821 | $ | 130,351 | |||||
Purchased Loans | ' | |||||||||||||
First Commercial Bank | ||||||||||||||
September 7, 2012 | ||||||||||||||
2012 & 2013 | ||||||||||||||
As Previously | Recast | As | ||||||||||||
(in thousands) | Reported | Adjustments | Recasted | |||||||||||
Contractually-required principal and interest payments | $ | 116,940 | $ | 4,213 | $ | 121,153 | ||||||||
Non-accretable difference | (33,523 | ) | 4,640 | (28,883 | ) | |||||||||
Cash flows expected to be collected | 83,417 | 8,853 | 92,270 | |||||||||||
Accretable difference | (2,827 | ) | (1,819 | ) | (4,646 | ) | ||||||||
Fair value of loans | $ | 80,590 | $ | 7,034 | $ | 87,624 | ||||||||
Composition of Deposits | ' | |||||||||||||
First Commercial Bank | ||||||||||||||
September 7, 2012 | ||||||||||||||
Contractual | Fair Value | Recast | Fair | |||||||||||
(in thousands) | Amount | Adjustments | Adjustments | Value | ||||||||||
Demand | $ | 4,003 | $ | — | $ | — | $ | 4,003 | ||||||
Money market accounts | 38,187 | — | — | 38,187 | ||||||||||
Savings | — | — | — | — | ||||||||||
Individual retirement accounts* | 16,780 | — | — | 16,780 | ||||||||||
Time deposits, $100,000 and over* | 14,740 | — | — | 14,740 | ||||||||||
Other certificates of deposit* | 62,033 | — | — | 62,033 | ||||||||||
Brokered certificates of deposit* | 53,314 | (3 | ) | — | 53,311 | |||||||||
Total interest-bearing deposits | 189,057 | (3 | ) | — | 189,054 | |||||||||
Total non interest-bearing deposits | 7,197 | — | — | 7,197 | ||||||||||
Total deposits | $ | 196,254 | $ | (3 | ) | $ | — | $ | 196,251 | |||||
* - denotes a time deposit | ||||||||||||||
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||
Gross Amortized Cost and Fair Value of Securities Available for Sale and Related Gross Unrealized Gains and Losses Recognized in Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
December 31, 2013 (in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | 97,157 | $ | 409 | $ | (101 | ) | $ | 97,465 | |||||||||||
Private label mortgage backed security | 4,740 | 745 | — | 5,485 | ||||||||||||||||
Mortgage backed securities - residential | 146,087 | 4,288 | (288 | ) | 150,087 | |||||||||||||||
Collateralized mortgage obligations | 164,264 | 1,228 | (1,546 | ) | 163,946 | |||||||||||||||
Mutual fund | 1,000 | — | (5 | ) | 995 | |||||||||||||||
Corporate bonds | 15,015 | 50 | (150 | ) | 14,915 | |||||||||||||||
Total securities available for sale | $ | 428,263 | $ | 6,720 | $ | (2,090 | ) | $ | 432,893 | |||||||||||
Gross | Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
December 31, 2012 (in thousands) | Cost | Gains | Losses | Value | ||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | 38,931 | $ | 547 | $ | (6 | ) | $ | 39,472 | |||||||||||
Private label mortgage backed security | 5,684 | 3 | — | 5,687 | ||||||||||||||||
Mortgage backed securities - residential | 190,569 | 6,641 | — | 197,210 | ||||||||||||||||
Collateralized mortgage obligations | 194,427 | 1,580 | (130 | ) | 195,877 | |||||||||||||||
Total securities available for sale | $ | 429,611 | $ | 8,771 | $ | (136 | ) | $ | 438,246 | |||||||||||
Carrying Value, Gross Unrecognized Gains and Losses, and Fair Value of Securities to be Held to Maturity | ' | |||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Carrying | Unrecognized | Unrecognized | Fair | |||||||||||||||||
December 31, 2013 (in thousands) | Value | Gains | Losses | Value | ||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | 2,311 | $ | 7 | $ | (13 | ) | $ | 2,305 | |||||||||||
Mortgage backed securities - residential | 420 | 43 | — | 463 | ||||||||||||||||
Collateralized mortgage obligations | 42,913 | 387 | (184 | ) | 43,116 | |||||||||||||||
Corporate bonds | 5,000 | — | (116 | ) | 4,884 | |||||||||||||||
Total securities held to maturity | $ | 50,644 | $ | 437 | $ | (313 | ) | $ | 50,768 | |||||||||||
Gross | Gross | |||||||||||||||||||
Carrying | Unrecognized | Unrecognized | Fair | |||||||||||||||||
December 31, 2012 (in thousands) | Value | Gains | Losses | Value | ||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | 4,388 | $ | 27 | $ | — | $ | 4,415 | ||||||||||||
Mortgage backed securities - residential | 827 | 63 | — | 890 | ||||||||||||||||
Collateralized mortgage obligations | 40,795 | 316 | — | 41,111 | ||||||||||||||||
Total securities to be held to maturity | $ | 46,010 | $ | 406 | $ | — | $ | 46,416 | ||||||||||||
Amortized Cost and Fair Value of Investment Securities Portfolio by Contractual Maturity | ' | |||||||||||||||||||
Securities | Securities | |||||||||||||||||||
available for sale | held to maturity | |||||||||||||||||||
Amortized | Fair | Carrying | Fair | |||||||||||||||||
December 31, 2013 (in thousands) | Cost | Value | Value | Value | ||||||||||||||||
Due in one year or less | $ | 24,395 | $ | 24,760 | $ | 508 | $ | 512 | ||||||||||||
Due from one year to five years | 70,259 | 70,237 | 1,803 | 1,793 | ||||||||||||||||
Due from five years to ten years | 17,518 | 17,383 | 5,000 | 4,884 | ||||||||||||||||
Due beyond ten years | — | — | — | — | ||||||||||||||||
Private label mortgage backed security | 4,740 | 5,485 | — | — | ||||||||||||||||
Mortgage backed securities - residential | 146,087 | 150,087 | 420 | 463 | ||||||||||||||||
Collateralized mortgage obligations | 164,264 | 163,946 | 42,913 | 43,116 | ||||||||||||||||
Mutual fund | 1,000 | 995 | — | — | ||||||||||||||||
Total securities | $ | 428,263 | $ | 432,893 | $ | 50,644 | $ | 50,768 | ||||||||||||
Securities with Unrealized Losses, Aggregated by Investment Category with Continuous Unrealized Loss Position | ' | |||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||
December 31, 2013 (in thousands) | Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | 44,041 | $ | (101 | ) | $ | — | $ | — | $ | 44,041 | $ | (101 | ) | ||||||
Mortgage backed securities - residential | 19,494 | (288 | ) | — | — | 19,494 | (288 | ) | ||||||||||||
Collateralized mortgage obligations | 55,927 | (1,546 | ) | — | — | 55,927 | (1,546 | ) | ||||||||||||
Mutual fund | 995 | (5 | ) | — | — | 995 | (5 | ) | ||||||||||||
Corporate bonds | 9,850 | (150 | ) | — | — | 9,850 | (150 | ) | ||||||||||||
Total securities available for sale | $ | 130,307 | $ | (2,090 | ) | $ | — | $ | — | $ | 130,307 | $ | (2,090 | ) | ||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | |||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||
Securities held to maturity: | ||||||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | 521 | $ | (13 | ) | $ | — | $ | — | $ | 521 | $ | (13 | ) | ||||||
Collateralized mortgage obligations | 18,686 | (184 | ) | — | — | 18,686 | (184 | ) | ||||||||||||
Corporate bonds | 4,884 | (116 | ) | — | — | 4,884 | (116 | ) | ||||||||||||
Total securities held to maturity | $ | 24,091 | $ | (313 | ) | $ | — | $ | — | $ | 24,091 | $ | (313 | ) | ||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||
December 31, 2012 (in thousands) | Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||
Securities available for sale | ||||||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | 3,588 | $ | (6 | ) | $ | — | $ | — | $ | 3,588 | $ | (6 | ) | ||||||
Collateralized mortgage obligations | 20,508 | (130 | ) | — | — | 20,508 | (130 | ) | ||||||||||||
Total securities available for sale | $ | 24,096 | $ | (136 | ) | $ | — | $ | — | $ | 24,096 | $ | (136 | ) | ||||||
Amounts related to credit loss for which an other-than-temporary impairment was not previously recognized | ' | |||||||||||||||||||
Year ended December 31, (in thousands) | 2013 | 2012 | 2011 | |||||||||||||||||
Balance, beginning of year | $ | 2,142 | $ | 3,455 | $ | 9,757 | ||||||||||||||
Reversal of interest reserve | — | — | (169 | ) | ||||||||||||||||
Recovery of losses previously recorded | (201 | ) | — | — | ||||||||||||||||
Realized pass through of actual losses | — | (1,313 | ) | (6,412 | ) | |||||||||||||||
Amounts related to credit loss for which an other-than-temporary impairment was not previously recognized | — | — | 279 | |||||||||||||||||
Balance, end of year | $ | 1,941 | $ | 2,142 | $ | 3,455 | ||||||||||||||
Pledged Investment Securities | ' | |||||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | ||||||||||||||||||
Carrying amount | $ | 224,693 | $ | 334,560 | ||||||||||||||||
Fair value | 224,989 | 334,843 | ||||||||||||||||||
LOANS_AND_ALLOWANCE_FOR_LOAN_L1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Loans and allowance for loan and losses | ' | ||||||||||||||||||||||
Schedule of composition of loan portfolio | ' | ||||||||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | $ | 1,097,795 | $ | 1,145,495 | |||||||||||||||||||
Non owner occupied | 110,809 | 74,539 | |||||||||||||||||||||
Commercial real estate | 773,173 | 714,642 | |||||||||||||||||||||
Commercial real estate - purchased whole loans | 34,186 | 33,531 | |||||||||||||||||||||
Construction & land development | 44,351 | 68,214 | |||||||||||||||||||||
Commercial & industrial | 127,763 | 130,681 | |||||||||||||||||||||
Warehouse lines of credit | 149,576 | 216,576 | |||||||||||||||||||||
Home equity | 226,782 | 241,607 | |||||||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | 9,030 | 8,716 | |||||||||||||||||||||
Overdrafts | 944 | 955 | |||||||||||||||||||||
Other consumer | 15,383 | 15,241 | |||||||||||||||||||||
Total loans | 2,589,792 | 2,650,197 | |||||||||||||||||||||
Less: Allowance for loan losses | 23,026 | 23,729 | |||||||||||||||||||||
Total loans, net | $ | 2,566,766 | $ | 2,626,468 | |||||||||||||||||||
Schedule of the risk category of loans by class of loans based on the bank's internal analysis performed | ' | ||||||||||||||||||||||
Purchased | Purchased | ||||||||||||||||||||||
Credit | Credit | ||||||||||||||||||||||
Impaired | Impaired | Total | |||||||||||||||||||||
December 31, 2013 | Special | Doubtful / | Loans - | Loans - | Rated | ||||||||||||||||||
(in thousands) | Pass | Mention * | Substandard * | Loss | Group 1 | Substandard | Loans** | ||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | $ | — | $ | 27,431 | $ | 10,994 | $ | — | $ | 2,810 | $ | — | $ | 41,235 | |||||||||
Non owner occupied | — | 919 | 1,292 | — | 7,936 | — | 10,147 | ||||||||||||||||
Commercial real estate | 709,610 | 11,125 | 25,296 | — | 27,142 | — | 773,173 | ||||||||||||||||
Commercial real estate - Purchased whole loans | 34,186 | — | — | — | — | — | 34,186 | ||||||||||||||||
Construction & land development | 40,591 | 128 | 2,386 | — | 1,246 | — | 44,351 | ||||||||||||||||
Commercial & industrial | 123,646 | 296 | 2,035 | — | 1,564 | 222 | 127,763 | ||||||||||||||||
Warehouse lines of credit | 149,576 | — | — | — | — | — | 149,576 | ||||||||||||||||
Home equity | — | 250 | 2,014 | — | — | — | 2,264 | ||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | — | — | — | — | — | ||||||||||||||||
Overdrafts | — | — | — | — | — | — | — | ||||||||||||||||
Other consumer | — | 18 | 66 | — | 33 | — | 117 | ||||||||||||||||
Total rated loans | $ | 1,057,609 | $ | 40,167 | $ | 44,083 | $ | — | $ | 40,731 | $ | 222 | $ | 1,182,812 | |||||||||
Purchased | Purchased | ||||||||||||||||||||||
Credit | Credit | ||||||||||||||||||||||
Impaired | Impaired | Total | |||||||||||||||||||||
December 31, 2012 | Special | Doubtful / | Loans - | Loans - | Rated | ||||||||||||||||||
(in thousands) | Pass | Mention* | Substandard* | Loss | Group 1 | Substandard | Loans** | ||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | $ | — | $ | 26,031 | $ | 8,700 | $ | — | $ | 2,413 | $ | — | $ | 37,144 | |||||||||
Non owner occupied | — | 2,616 | 3,350 | — | 20,190 | — | 26,156 | ||||||||||||||||
Commercial real estate | 624,631 | 17,216 | 28,433 | — | 44,362 | — | 714,642 | ||||||||||||||||
Commercial real estate - Purchased whole loans | 33,531 | — | — | — | — | — | 33,531 | ||||||||||||||||
Construction & land development | 61,556 | 1,088 | 3,878 | — | 1,692 | — | 68,214 | ||||||||||||||||
Commercial & industrial | 121,170 | 2,639 | 2,592 | — | 4,280 | — | 130,681 | ||||||||||||||||
Warehouse lines of credit | 216,576 | — | — | — | — | — | 216,576 | ||||||||||||||||
Home equity | — | 648 | 2,346 | — | — | — | 2,994 | ||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | — | — | — | — | — | ||||||||||||||||
Overdrafts | — | — | — | — | — | — | — | ||||||||||||||||
Other consumer | — | 387 | 53 | — | 41 | — | 481 | ||||||||||||||||
Total rated loans | $ | 1,057,464 | $ | 50,625 | $ | 49,352 | $ | — | $ | 72,978 | $ | — | $ | 1,230,419 | |||||||||
* - Special Mention and Substandard loans include $1 million and $6 million at December 31, 2013 and $4 million and $11 million at December 31, 2012, respectively, which were removed from the Purchased Credit Impaired population due to a post-acquisition troubled debt restructuring of the loan. | |||||||||||||||||||||||
** - The above tables exclude all non-classified residential real estate and consumer loans at the respective period ends. The tables also exclude most non classified small C&I and CRE relationships totaling $100,000 or less. These loans are not rated since they are accruing interest and are not past due 80-days-or-more. | |||||||||||||||||||||||
Schedule of activity in the Allowance | ' | ||||||||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||
Allowance for loan losses at beginning year | $ | 23,729 | $ | 24,063 | $ | 23,079 | |||||||||||||||||
Charge offs - Traditional Banking | (6,185 | ) | (9,888 | ) | (7,309 | ) | |||||||||||||||||
Charge offs - Refund Anticipation Loans | — | (11,097 | ) | (15,484 | ) | ||||||||||||||||||
Total charge offs | (6,185 | ) | (20,985 | ) | (22,793 | ) | |||||||||||||||||
Recoveries - Traditional Banking | 1,654 | 1,387 | 1,887 | ||||||||||||||||||||
Recoveries - Refund Anticipation Loans | 845 | 4,221 | 3,924 | ||||||||||||||||||||
Total recoveries | 2,499 | 5,608 | 5,811 | ||||||||||||||||||||
Net loan charge offs - Traditional Banking | (4,531 | ) | (8,501 | ) | (5,422 | ) | |||||||||||||||||
Net loan charge offs - Refund Anticipation Loans | 845 | (6,876 | ) | (11,560 | ) | ||||||||||||||||||
Net loan charge offs | (3,686 | ) | (15,377 | ) | (16,982 | ) | |||||||||||||||||
Provision for loan losses - Traditional Banking | 3,828 | 8,167 | 6,406 | ||||||||||||||||||||
Provision for loan losses - Refund Anticipation Loans | (845 | ) | 6,876 | 11,560 | |||||||||||||||||||
Total provision for loan losses | 2,983 | 15,043 | 17,966 | ||||||||||||||||||||
Allowance for loan losses at end of year | $ | 23,026 | $ | 23,729 | $ | 24,063 | |||||||||||||||||
Schedule of activity in the Allowance by portfolio class | ' | ||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Residential Real Estate | Real Estate - | Warehouse | |||||||||||||||||||||
Year Ended | Owner | Non Owner | Commercial | Purchased | Construction & | Commercial & | Lines of | ||||||||||||||||
December 31, 2013 (in thousands) | Occupied | Occupied | Real Estate | Whole Loans | Land Development | Industrial | Credit | ||||||||||||||||
Beginning balance | $ | 7,006 | $ | 1,049 | $ | 8,843 | $ | 34 | $ | 2,769 | $ | 580 | $ | 541 | |||||||||
Provision for loan losses | 2,411 | 43 | 539 | — | (902 | ) | 876 | (92 | ) | ||||||||||||||
Loans charged off | (1,886 | ) | (241 | ) | (1,190 | ) | — | (619 | ) | (466 | ) | — | |||||||||||
Recoveries | 285 | 172 | 117 | — | 48 | 99 | — | ||||||||||||||||
Ending balance | $ | 7,816 | $ | 1,023 | $ | 8,309 | $ | 34 | $ | 1,296 | $ | 1,089 | $ | 449 | |||||||||
(continued) | |||||||||||||||||||||||
Refund | Consumer | ||||||||||||||||||||||
Home | Anticipation | Credit | Other | ||||||||||||||||||||
Equity | Loans | Cards | Overdrafts | Consumer | Total | ||||||||||||||||||
Beginning balance | $ | 2,348 | $ | — | $ | 210 | $ | 198 | $ | 151 | $ | 23,729 | |||||||||||
Provision for loan losses | 515 | (845 | ) | 202 | 191 | 45 | 2,983 | ||||||||||||||||
Loans charged off | (632 | ) | — | (142 | ) | (601 | ) | (408 | ) | (6,185 | ) | ||||||||||||
Recoveries | 165 | 845 | 19 | 411 | 338 | 2,499 | |||||||||||||||||
Ending balance | $ | 2,396 | $ | — | $ | 289 | $ | 199 | $ | 126 | $ | 23,026 | |||||||||||
Commercial | |||||||||||||||||||||||
Residential Real Estate | Real Estate - | Warehouse | |||||||||||||||||||||
Year Ended | Owner | Non Owner | Commercial | Purchased | Construction & | Commercial & | Lines of | ||||||||||||||||
December 31, 2012 (in thousands) | Occupied | Occupied | Real Estate | Whole Loans | Land Development | Industrial | Credit | ||||||||||||||||
Beginning balance | $ | 5,212 | $ | 1,142 | $ | 7,724 | $ | — | $ | 3,042 | $ | 1,025 | $ | 104 | |||||||||
Allocation of previously unallocated allowance | 1,117 | 146 | 47 | — | — | — | — | ||||||||||||||||
Provision for loan losses | 3,549 | 144 | 2,015 | 34 | 1,545 | (294 | ) | 437 | |||||||||||||||
Loans charged off | (3,128 | ) | (520 | ) | (1,033 | ) | — | (1,922 | ) | (176 | ) | — | |||||||||||
Recoveries | 256 | 137 | 90 | — | 104 | 25 | — | ||||||||||||||||
Ending balance | $ | 7,006 | $ | 1,049 | $ | 8,843 | $ | 34 | $ | 2,769 | $ | 580 | $ | 541 | |||||||||
(continued) | |||||||||||||||||||||||
Refund | Consumer | ||||||||||||||||||||||
Home | Anticipation | Credit | Other | ||||||||||||||||||||
Equity | Loans | Cards | Overdrafts | Consumer | Unallocated* | Total | |||||||||||||||||
Beginning balance | $ | 2,984 | $ | — | $ | 503 | $ | 135 | $ | 227 | $ | 1,965 | $ | 24,063 | |||||||||
Allocation of previously unallocated allowance* | 536 | — | 47 | 17 | 55 | (1,965 | ) | — | |||||||||||||||
Provision for loan losses | 988 | 6,876 | (253 | ) | 92 | (90 | ) | — | 15,043 | ||||||||||||||
Loans charged off | (2,252 | ) | (11,097 | ) | (123 | ) | (468 | ) | (266 | ) | — | (20,985 | ) | ||||||||||
Recoveries | 92 | 4,221 | 36 | 422 | 225 | — | 5,608 | ||||||||||||||||
Ending balance | $ | 2,348 | $ | — | $ | 210 | $ | 198 | $ | 151 | $ | — | $ | 23,729 | |||||||||
* Allocation was made January 1, 2012 based on a methodology change to the Company’s Allowance . | |||||||||||||||||||||||
Schedule of non-performing loans and non-performing assets and select credit quality ratios | ' | ||||||||||||||||||||||
December 31, (dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||
Loans on non-accrual status(1) | $ | 19,104 | $ | 18,506 | $ | 23,306 | |||||||||||||||||
Loans past due 90-days-or-more and still on accrual(2) | 1,974 | 3,173 | — | ||||||||||||||||||||
Total non-performing loans | 21,078 | 21,679 | 23,306 | ||||||||||||||||||||
Other real estate owned | 17,102 | 26,203 | 10,956 | ||||||||||||||||||||
Total non-performing assets | $ | 38,180 | $ | 47,882 | $ | 34,262 | |||||||||||||||||
Credit Quality Ratios | |||||||||||||||||||||||
Non-performing loans to total loans | 0.81 | % | 0.82 | % | 1.02 | % | |||||||||||||||||
Non-performing assets to total loans (including OREO) | 1.46 | % | 1.79 | % | 1.49 | % | |||||||||||||||||
Non-performing assets to total assets | 1.13 | % | 1.41 | % | 1 | % | |||||||||||||||||
(1) Loans on non-accrual status include impaired loans. | |||||||||||||||||||||||
(2) All loans past due 90-days-or-more and still accruing were PCI loans accounted for under ASC 310-30. | |||||||||||||||||||||||
Schedule of recorded investment in non-accrual loans and loans past due over 90-days-or-more and still on accrual by class of loans | ' | ||||||||||||||||||||||
Loans Past Due 90-Days-or-More | |||||||||||||||||||||||
Non-Accrual Loans | and Still Accruing Interest | ||||||||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | $ | 8,538 | $ | 9,298 | $ | 12,183 | $ | 673 | $ | 730 | $ | — | |||||||||||
Non owner occupied | 1,279 | 1,376 | 1,565 | — | — | — | |||||||||||||||||
Commercial real estate | 7,643 | 3,756 | 3,032 | — | 712 | — | |||||||||||||||||
Commercial real estate - purchased whole loans | — | — | — | — | — | — | |||||||||||||||||
Construction & land dev. | 97 | 1,777 | 2,521 | 70 | 531 | — | |||||||||||||||||
Commercial & industrial | 327 | 334 | 373 | 1,231 | 1,200 | — | |||||||||||||||||
Warehouse lines of credit | — | — | — | — | — | — | |||||||||||||||||
Home equity | 1,128 | 1,868 | 3,603 | — | — | — | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | — | — | — | — | |||||||||||||||||
Overdrafts | — | — | — | — | — | — | |||||||||||||||||
Other consumer | 92 | 97 | 29 | — | — | — | |||||||||||||||||
Total | $ | 19,104 | $ | 18,506 | $ | 23,306 | $ | 1,974 | $ | 3,173 | $ | — | |||||||||||
Schedule of aging of the recorded investment in loans by class of loans | ' | ||||||||||||||||||||||
30 - 59 | 60 - 89 | Greater than | Total | Total | |||||||||||||||||||
December 31, 2013 | Days | Days | 90 Days | Loans | Loans Not | Total | |||||||||||||||||
(dollars in thousands) | Delinquent | Delinquent | Delinquent* | Delinquent | Delinquent | Loans | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | $ | 1,956 | $ | 733 | $ | 3,668 | $ | 6,357 | $ | 1,091,438 | $ | 1,097,795 | |||||||||||
Non owner occupied | 195 | 967 | 131 | 1,293 | 109,516 | 110,809 | |||||||||||||||||
Commercial real estate | 874 | 384 | 3,940 | 5,198 | 767,975 | 773,173 | |||||||||||||||||
Commercial real estate - purchased whole loans | — | — | — | — | 34,186 | 34,186 | |||||||||||||||||
Construction & land development | 332 | — | 167 | 499 | 43,852 | 44,351 | |||||||||||||||||
Commercial & industrial | — | — | 1,415 | 1,415 | 126,348 | 127,763 | |||||||||||||||||
Warehouse lines of credit | — | — | — | — | 149,576 | 149,576 | |||||||||||||||||
Home equity | 665 | 48 | 397 | 1,110 | 225,672 | 226,782 | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | 87 | 6 | 5 | 98 | 8,932 | 9,030 | |||||||||||||||||
Overdrafts | 159 | — | — | 159 | 785 | 944 | |||||||||||||||||
Other consumer | 67 | 27 | — | 94 | 15,289 | 15,383 | |||||||||||||||||
Total | $ | 4,335 | $ | 2,165 | $ | 9,723 | $ | 16,223 | $ | 2,573,569 | $ | 2,589,792 | |||||||||||
Delinquent loans to total loans | 0.17 | % | 0.08 | % | 0.38 | % | 0.63 | % | |||||||||||||||
30 - 59 | 60 - 89 | Greater than | Total | Total | |||||||||||||||||||
December 31, 2012 | Days | Days | 90 Days | Loans | Loans Not | Total | |||||||||||||||||
(dollars in thousands) | Delinquent | Delinquent | Delinquent * | Delinquent | Delinquent | Loans | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | $ | 2,210 | $ | 1,978 | $ | 4,712 | $ | 8,900 | $ | 1,136,595 | $ | 1,145,495 | |||||||||||
Non owner occupied | 907 | 1,128 | 864 | 2,899 | 71,640 | 74,539 | |||||||||||||||||
Commercial real estate | 103 | 486 | 2,051 | 2,640 | 712,002 | 714,642 | |||||||||||||||||
Commercial real estate - purchased whole loans | — | — | — | — | 33,531 | 33,531 | |||||||||||||||||
Construction & land development | — | 194 | 1,930 | 2,124 | 66,090 | 68,214 | |||||||||||||||||
Commercial & industrial | 222 | 733 | 1,307 | 2,262 | 128,419 | 130,681 | |||||||||||||||||
Warehouse lines of credit | — | — | — | — | 216,576 | 216,576 | |||||||||||||||||
Home equity | 521 | 251 | 882 | 1,654 | 239,953 | 241,607 | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | 60 | 5 | — | 65 | 8,651 | 8,716 | |||||||||||||||||
Overdrafts | 167 | 1 | — | 168 | 787 | 955 | |||||||||||||||||
Other consumer | 102 | 28 | 2 | 132 | 15,109 | 15,241 | |||||||||||||||||
Total | $ | 4,292 | $ | 4,804 | $ | 11,748 | $ | 20,844 | $ | 2,629,353 | $ | 2,650,197 | |||||||||||
Delinquent loans to total loans | 0.16 | % | 0.18 | % | 0.44 | % | 0.78 | % | |||||||||||||||
* - All loans past due 90 days-or-more, excluding PCI loans, as of December 31, 2013 and 2012 were on non-accrual status. | |||||||||||||||||||||||
Schedule of recorded investment in residential and consumer loans based on payment activity | ' | ||||||||||||||||||||||
Residential Real Estate | Consumer | ||||||||||||||||||||||
Owner | Non Owner | Home | Credit | Other | |||||||||||||||||||
December 31, 2013 (in thousands) | Occupied | Occupied | Equity | Cards | Overdrafts | Consumer | |||||||||||||||||
Performing | $ | 1,088,584 | $ | 109,530 | $ | 225,654 | $ | 9,030 | $ | 944 | $ | 15,291 | |||||||||||
Non performing | 9,211 | 1,279 | 1,128 | — | — | 92 | |||||||||||||||||
Total | $ | 1,097,795 | $ | 110,809 | $ | 226,782 | $ | 9,030 | $ | 944 | $ | 15,383 | |||||||||||
Residential Real Estate | Consumer | ||||||||||||||||||||||
Owner | Non Owner | Home | Credit | Other | |||||||||||||||||||
December 31, 2012 (in thousands) | Occupied | Occupied | Equity | Cards | Overdrafts | Consumer | |||||||||||||||||
Performing | $ | 1,138,326 | $ | 73,163 | $ | 239,985 | $ | 8,716 | $ | 955 | $ | 16,104 | |||||||||||
Non performing | 10,028 | 1,376 | 1,868 | — | — | 97 | |||||||||||||||||
Total | $ | 1,148,354 | $ | 74,539 | $ | 241,853 | $ | 8,716 | $ | 955 | $ | 16,201 | |||||||||||
Schedule of Bank's impaired loans | ' | ||||||||||||||||||||||
As of and for the years ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||
Loans with no allocated allowance for loan losses | $ | 36,721 | $ | 36,325 | $ | 32,171 | |||||||||||||||||
Loans with allocated allowance for loan losses | 71,273 | 69,382 | 45,022 | ||||||||||||||||||||
Total impaired loans | $ | 107,994 | $ | 105,707 | $ | 77,193 | |||||||||||||||||
Amount of the allowance for loan losses allocated | $ | 6,674 | $ | 8,531 | $ | 7,086 | |||||||||||||||||
Average of individually impaired loans during the year | 110,272 | 93,487 | 59,711 | ||||||||||||||||||||
Interest income recognized during impairment | 3,489 | 2,682 | 1,464 | ||||||||||||||||||||
Cash basis interest income recognized | — | — | — | ||||||||||||||||||||
Schedule of balance in the Allowance and the recorded investment in loans by portfolio class based on impairment method | ' | ||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Residential Real Estate | Real Estate - | Warehouse | |||||||||||||||||||||
Owner | Non Owner | Commercial | Purchased | Construction & | Commercial & | Lines of | |||||||||||||||||
December 31, 2013 (in thousands) | Occupied | Occupied | Real Estate | Whole Loans | Land Development | Industrial | Credit | ||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||
Individually evaluated for impairment, excluding PCI loans | $ | 3,606 | $ | 61 | $ | 1,232 | $ | — | $ | 146 | $ | 111 | $ | — | |||||||||
Collectively evaluated for impairment | 4,159 | 672 | 6,474 | 34 | 1,140 | 661 | 449 | ||||||||||||||||
PCI loans with post acquisition impairment | 51 | 290 | 603 | — | 10 | 317 | — | ||||||||||||||||
PCI loans without post acquisition impairment | — | — | — | — | — | — | — | ||||||||||||||||
Total ending allowance for loan losses | $ | 7,816 | $ | 1,023 | $ | 8,309 | $ | 34 | $ | 1,296 | $ | 1,089 | $ | 449 | |||||||||
Loans: | |||||||||||||||||||||||
Impaired loans individually evaluated, excluding PCI loans | $ | 39,211 | $ | 2,061 | $ | 33,519 | $ | — | $ | 2,494 | $ | 4,521 | $ | — | |||||||||
Loans collectively evaluated for impairment | 1,055,774 | 100,812 | 712,512 | 34,186 | 40,611 | 121,456 | 149,576 | ||||||||||||||||
PCI loans with post acquisition impairment | 1,455 | 5,984 | 14,512 | — | 267 | 1,609 | — | ||||||||||||||||
PCI loans without post acquisition impairment | 1,355 | 1,952 | 12,630 | — | 979 | 177 | — | ||||||||||||||||
Total ending loan balance | $ | 1,097,795 | $ | 110,809 | $ | 773,173 | $ | 34,186 | $ | 44,351 | $ | 127,763 | $ | 149,576 | |||||||||
Consumer | |||||||||||||||||||||||
Home | Credit | Other | |||||||||||||||||||||
Equity | Cards | Overdrafts | Consumer | Total | |||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||
Individually evaluated for impairment, excluding PCI loans | $ | 203 | $ | — | $ | — | $ | 43 | $ | 5,402 | |||||||||||||
Collectively evaluated for impairment | 2,193 | 289 | 199 | 82 | 16,352 | ||||||||||||||||||
PCI loans with post acquisition impairment | — | — | — | 1 | 1,272 | ||||||||||||||||||
PCI loans without post acquisition impairment | — | — | — | — | — | ||||||||||||||||||
Total ending allowance for loan losses | $ | 2,396 | $ | 289 | $ | 199 | $ | 126 | $ | 23,026 | |||||||||||||
Loans: | |||||||||||||||||||||||
Impaired loans individually evaluated, excluding PCI loans | $ | 2,264 | $ | — | $ | — | $ | 85 | $ | 84,155 | |||||||||||||
Loans collectively evaluated for impairment | 224,518 | 9,030 | 944 | 15,265 | 2,464,684 | ||||||||||||||||||
PCI loans with post acquisition impairment | — | — | — | 12 | 23,839 | ||||||||||||||||||
PCI loans without post acquisition impairment | — | — | — | 21 | 17,114 | ||||||||||||||||||
Total ending loan balance | $ | 226,782 | $ | 9,030 | $ | 944 | $ | 15,383 | $ | 2,589,792 | |||||||||||||
Commercial | |||||||||||||||||||||||
Residential Real Estate | Real Estate - | Warehouse | |||||||||||||||||||||
Owner | Non Owner | Commercial | Purchased | Construction & | Commercial & | Lines of | |||||||||||||||||
December 31, 2012 (in thousands) | Occupied | Occupied | Real Estate | Whole Loans | Land Development | Industrial | Credit | ||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||
Individually evaluated for impairment, excluding PCI loans | $ | 3,032 | $ | 521 | $ | 2,919 | $ | — | $ | 1,157 | $ | 348 | $ | — | |||||||||
Collectively evaluated for impairment | 3,972 | 527 | 5,924 | 34 | 1,612 | 232 | 541 | ||||||||||||||||
PCI loans with post acquisition impairment | 2 | 1 | — | — | — | — | — | ||||||||||||||||
PCI loans without post acquisition impairment | — | — | — | — | — | — | — | ||||||||||||||||
Total ending allowance for loan losses | $ | 7,006 | $ | 1,049 | $ | 8,843 | $ | 34 | $ | 2,769 | $ | 580 | $ | 541 | |||||||||
Loans: | |||||||||||||||||||||||
Impaired loans individually evaluated, excluding PCI loans | $ | 44,429 | $ | 4,235 | $ | 40,593 | $ | — | $ | 5,268 | $ | 6,972 | $ | — | |||||||||
Loans collectively evaluated for impairment | 1,080,792 | 67,974 | 629,687 | 33,531 | 61,254 | 119,429 | 216,576 | ||||||||||||||||
PCI loans with post acquisition impairment | 136 | 184 | — | — | — | — | — | ||||||||||||||||
PCI loans without post acquisition impairment | 20,138 | 2,146 | 44,362 | — | 1,692 | 4,280 | — | ||||||||||||||||
Total ending loan balance | $ | 1,145,495 | $ | 74,539 | $ | 714,642 | $ | 33,531 | $ | 68,214 | $ | 130,681 | $ | 216,576 | |||||||||
Consumer | |||||||||||||||||||||||
Home | Credit | Other | |||||||||||||||||||||
Equity | Cards | Overdrafts | Consumer | Total | |||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||
Individually evaluated for impairment, excluding PCI loans | $ | 496 | $ | — | $ | — | $ | 55 | $ | 8,528 | |||||||||||||
Collectively evaluated for impairment | 1,852 | 210 | 198 | 96 | 15,198 | ||||||||||||||||||
PCI loans with post acquisition impairment | — | — | — | — | 3 | ||||||||||||||||||
PCI loans without post acquisition impairment | — | — | — | — | — | ||||||||||||||||||
Total ending allowance for loan losses | $ | 2,348 | $ | 210 | $ | 198 | $ | 151 | $ | 23,729 | |||||||||||||
Loans: | |||||||||||||||||||||||
Impaired loans individually evaluated, excluding PCI loans | $ | 3,420 | $ | — | $ | — | $ | 470 | $ | 105,387 | |||||||||||||
Loans collectively evaluated for impairment | 238,187 | 8,716 | 955 | 14,731 | 2,471,832 | ||||||||||||||||||
PCI loans with post acquisition impairment | — | — | — | — | 320 | ||||||||||||||||||
PCI loans without post acquisition impairment | — | — | — | 40 | 72,658 | ||||||||||||||||||
Total ending loan balance | $ | 241,607 | $ | 8,716 | $ | 955 | $ | 15,241 | $ | 2,650,197 | |||||||||||||
Schedule of loans individually evaluated for impairment by class of loans | ' | ||||||||||||||||||||||
Twelve Months Ended | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Unpaid | Allowance for | Average | Interest | Cash Basis | |||||||||||||||||||
Principal | Recorded | Loan Losses | Recorded | Income | Interest Income | ||||||||||||||||||
December 31, 2013 (in thousands) | Balance | Investment | Allocated | Investment | Recognized | Recognized | |||||||||||||||||
Impaired loans with no related allowance recorded: | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | $ | 7,136 | $ | 6,569 | $ | — | $ | 8,977 | $ | 120 | $ | — | |||||||||||
Non owner occupied | 1,498 | 1,256 | — | 1,520 | 13 | — | |||||||||||||||||
Commercial real estate | 21,886 | 20,953 | — | 21,218 | 693 | — | |||||||||||||||||
Commercial real estate - purchased whole loans | — | — | — | — | — | — | |||||||||||||||||
Construction & land development | 2,087 | 2,087 | — | 2,150 | 103 | — | |||||||||||||||||
Commercial & industrial | 4,367 | 4,258 | — | 3,577 | 258 | — | |||||||||||||||||
Warehouse lines of credit | — | — | — | — | — | — | |||||||||||||||||
Home equity | 1,695 | 1,577 | — | 1,982 | 43 | — | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | — | — | — | — | |||||||||||||||||
Overdrafts | — | — | — | — | — | — | |||||||||||||||||
Other consumer | 18 | 18 | — | 138 | 1 | — | |||||||||||||||||
Impaired loans with an allowance recorded: | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | 34,393 | 34,097 | 3,657 | 34,154 | 939 | — | |||||||||||||||||
Non owner occupied | 6,789 | 6,789 | 351 | 5,104 | 248 | — | |||||||||||||||||
Commercial real estate | 27,080 | 27,078 | 1,835 | 25,724 | 1,017 | — | |||||||||||||||||
Commercial real estate - purchased whole loans | — | — | — | — | — | — | |||||||||||||||||
Construction & land development | 674 | 674 | 156 | 2,048 | 38 | — | |||||||||||||||||
Commercial & industrial | 1,872 | 1,872 | 428 | 2,593 | 11 | — | |||||||||||||||||
Warehouse lines of credit | — | — | — | — | — | — | |||||||||||||||||
Home equity | 688 | 687 | 203 | 999 | 5 | — | |||||||||||||||||
Consumer: | — | ||||||||||||||||||||||
Credit cards | — | — | — | — | — | — | |||||||||||||||||
Overdrafts | — | — | — | — | — | — | |||||||||||||||||
Other consumer | 79 | 79 | 44 | 88 | — | — | |||||||||||||||||
Total impaired loans | $ | 110,262 | $ | 107,994 | $ | 6,674 | $ | 110,272 | $ | 3,489 | $ | — | |||||||||||
Twelve Months Ended | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Unpaid | Allowance for | Average | Interest | Cash Basis | |||||||||||||||||||
Principal | Recorded | Loan Losses | Recorded | Income | Interest Income | ||||||||||||||||||
December 31, 2012 (in thousands) | Balance | Investment | Allocated | Investment | Recognized | Recognized | |||||||||||||||||
Impaired loans with no related allowance recorded: | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | $ | 13,299 | $ | 13,107 | $ | — | $ | 23,397 | $ | 224 | $ | — | |||||||||||
Non owner occupied | 955 | 794 | — | 1,656 | 6 | — | |||||||||||||||||
Commercial real estate | 14,293 | 14,293 | — | 11,130 | 707 | — | |||||||||||||||||
Commercial real estate - purchased whole loans | — | — | — | — | — | — | |||||||||||||||||
Construction & land development | 3,090 | 2,085 | — | 2,883 | 29 | — | |||||||||||||||||
Commercial & industrial | 4,206 | 4,114 | — | 2,653 | 99 | — | |||||||||||||||||
Warehouse lines of credit | — | — | — | — | — | — | |||||||||||||||||
Home equity | 1,753 | 1,546 | — | 858 | 23 | — | |||||||||||||||||
Consumer: | — | ||||||||||||||||||||||
Credit cards | — | — | — | — | — | — | |||||||||||||||||
Overdrafts | — | — | — | — | — | — | |||||||||||||||||
Other consumer | 386 | 386 | — | 219 | 8 | — | |||||||||||||||||
Impaired loans with an allowance recorded: | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | 31,709 | 31,458 | 3,034 | 12,558 | 258 | — | |||||||||||||||||
Non owner occupied | 3,695 | 3,625 | 522 | 2,543 | 100 | — | |||||||||||||||||
Commercial real estate | 26,710 | 26,300 | 2,919 | 27,094 | 909 | — | |||||||||||||||||
Commercial real estate - purchased whole loans | — | — | — | — | — | — | |||||||||||||||||
Construction & land development | 3,416 | 3,183 | 1,157 | 4,318 | 106 | — | |||||||||||||||||
Commercial & industrial | 2,858 | 2,858 | 348 | 2,614 | 173 | — | |||||||||||||||||
Warehouse lines of credit | — | — | — | — | — | — | |||||||||||||||||
Home equity | 1,874 | 1,874 | 496 | 1,543 | 38 | — | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | — | — | — | — | |||||||||||||||||
Overdrafts | — | — | — | — | — | — | |||||||||||||||||
Other consumer | 84 | 84 | 55 | 21 | 2 | — | |||||||||||||||||
Total impaired loans | $ | 108,328 | $ | 105,707 | $ | 8,531 | $ | 93,487 | $ | 2,682 | $ | — | |||||||||||
Schedule of TDRs differentiated by loan type and accrual status | ' | ||||||||||||||||||||||
Troubled Debt | Troubled Debt | Total | |||||||||||||||||||||
Restructurings on | Restructurings on | Troubled Debt | |||||||||||||||||||||
December 31, 2013 (in thousands) | Non-Accrual Status | Accrual Status | Restructurings | ||||||||||||||||||||
Residential real estate | $ | 5,514 | $ | 31,705 | $ | 37,219 | |||||||||||||||||
Commercial real estate | 7,486 | 22,041 | 29,527 | ||||||||||||||||||||
Construction & land development | 97 | 2,608 | 2,705 | ||||||||||||||||||||
Commercial & industrial | 143 | 4,378 | 4,521 | ||||||||||||||||||||
Total troubled debt restructurings | $ | 13,240 | $ | 60,732 | $ | 73,972 | |||||||||||||||||
Troubled Debt | Troubled Debt | Total | |||||||||||||||||||||
Restructurings on | Restructurings on | Troubled Debt | |||||||||||||||||||||
December 31, 2012 (in thousands) | Non-Accrual Status | Accrual Status | Restructurings | ||||||||||||||||||||
Residential real estate | $ | 6,951 | $ | 36,758 | $ | 43,709 | |||||||||||||||||
Commercial real estate | 5,149 | 26,174 | 31,323 | ||||||||||||||||||||
Construction & land development | 1,595 | 2,167 | 3,762 | ||||||||||||||||||||
Commercial & industrial | 269 | 4,244 | 4,513 | ||||||||||||||||||||
Total troubled debt restructurings | $ | 13,964 | $ | 69,343 | $ | 83,307 | |||||||||||||||||
Schedule of categories of TDR loan modifications outstanding and respective performance under modified terms | ' | ||||||||||||||||||||||
Troubled Debt | Troubled Debt | ||||||||||||||||||||||
Restructurings | Restructurings | Total | |||||||||||||||||||||
Performing to | Not Performing to | Troubled Debt | |||||||||||||||||||||
December 31, 2013 (in thousands) | Modified Terms | Modified Terms | Restructurings | ||||||||||||||||||||
Residential real estate loans (including home equity loans): | |||||||||||||||||||||||
Interest only payments | $ | 430 | $ | 671 | $ | 1,101 | |||||||||||||||||
Rate reduction | 26,004 | 4,993 | 30,997 | ||||||||||||||||||||
Principal deferral | 1,840 | 632 | 2,472 | ||||||||||||||||||||
Bankruptcies | 1,247 | 1,402 | 2,649 | ||||||||||||||||||||
Total residential TDRs | 29,521 | 7,698 | 37,219 | ||||||||||||||||||||
Commercial related and construction/land development loans: | |||||||||||||||||||||||
Interest only payments | 6,086 | 1,321 | 7,407 | ||||||||||||||||||||
Rate reduction | 13,958 | 663 | 14,621 | ||||||||||||||||||||
Principal deferral | 8,983 | 5,351 | 14,334 | ||||||||||||||||||||
Bankruptcies | — | 391 | 391 | ||||||||||||||||||||
Total commercial TDRs | 29,027 | 7,726 | 36,753 | ||||||||||||||||||||
Total troubled debt restructurings | $ | 58,548 | $ | 15,424 | $ | 73,972 | |||||||||||||||||
Troubled Debt | Troubled Debt | ||||||||||||||||||||||
Restructurings | Restructurings | Total | |||||||||||||||||||||
Performing to | Not Performing to | Troubled Debt | |||||||||||||||||||||
December 31, 2012 (in thousands) | Modified Terms | Modified Terms | Restructurings | ||||||||||||||||||||
Residential real estate loans (including home equity loans): | |||||||||||||||||||||||
Interest only payments | $ | 813 | $ | 624 | $ | 1,437 | |||||||||||||||||
Rate reduction | 23,789 | 3,919 | 27,708 | ||||||||||||||||||||
Principal deferral | 9,186 | 2,092 | 11,278 | ||||||||||||||||||||
Bankruptcies | 2,224 | 1,093 | 3,317 | ||||||||||||||||||||
Total residential TDRs | 36,012 | 7,728 | 43,740 | ||||||||||||||||||||
Commercial related and construction/land development loans: | |||||||||||||||||||||||
Interest only payments | 5,096 | 342 | 5,438 | ||||||||||||||||||||
Rate reduction | 15,747 | 895 | 16,642 | ||||||||||||||||||||
Principal deferral | 15,640 | 1,595 | 17,235 | ||||||||||||||||||||
Bankruptcies | — | 252 | 252 | ||||||||||||||||||||
Total commercial TDRs | 36,483 | 3,084 | 39,567 | ||||||||||||||||||||
Total troubled debt restructurings | $ | 72,495 | $ | 10,812 | $ | 83,307 | |||||||||||||||||
Summary of categories of TDR loan modifications that occurred during the period | ' | ||||||||||||||||||||||
Troubled Debt | Troubled Debt | ||||||||||||||||||||||
Restructurings | Restructurings | Total | |||||||||||||||||||||
Year Ended | Performing to | Not Performing to | Troubled Debt | ||||||||||||||||||||
December 31, 2013 (in thousands) | Modified Terms | Modified Terms | Restructurings | ||||||||||||||||||||
Residential real estate loans (including home equity loans): | |||||||||||||||||||||||
Interest only | $ | — | $ | 164 | $ | 164 | |||||||||||||||||
Rate reduction | 6,605 | 935 | 7,540 | ||||||||||||||||||||
Principal deferral | 95 | 157 | 252 | ||||||||||||||||||||
Bankruptcies | 793 | 950 | 1,743 | ||||||||||||||||||||
Total residential TDRs | 7,493 | 2,206 | 9,699 | ||||||||||||||||||||
Commercial related and construction/land development loans: | |||||||||||||||||||||||
Interest only | 3,095 | 143 | 3,238 | ||||||||||||||||||||
Rate reduction | 437 | 184 | 621 | ||||||||||||||||||||
Principal deferral | 3,315 | — | 3,315 | ||||||||||||||||||||
Bankruptcies | — | 168 | 168 | ||||||||||||||||||||
Total commercial TDRs | 6,847 | 495 | 7,342 | ||||||||||||||||||||
Total troubled debt restructurings | $ | 14,340 | $ | 2,701 | $ | 17,041 | |||||||||||||||||
The table above is inclusive of loans which were TDRs at the end of previous periods and were re-modified, e.g. a maturity date extension, during the current year. | |||||||||||||||||||||||
Troubled Debt | Troubled Debt | ||||||||||||||||||||||
Restructurings | Restructurings | Total | |||||||||||||||||||||
Year Ended | Performing to | Not Performing to | Troubled Debt | ||||||||||||||||||||
December 31, 2012 (in thousands) | Modified Terms | Modified Terms | Restructurings | ||||||||||||||||||||
Residential real estate loans (including home equity loans): | |||||||||||||||||||||||
Interest only | $ | — | $ | 624 | $ | 624 | |||||||||||||||||
Rate reduction | 14,011 | 849 | 14,860 | ||||||||||||||||||||
Principal deferral | 6,016 | 1,452 | 7,468 | ||||||||||||||||||||
Bankruptcies | 2,354 | 962 | 3,316 | ||||||||||||||||||||
Total residential TDRs | 22,381 | 3,887 | 26,268 | ||||||||||||||||||||
Commercial related and construction/land development loans: | |||||||||||||||||||||||
Interest only | 3,080 | 342 | 3,422 | ||||||||||||||||||||
Rate reduction | 9,638 | 895 | 10,533 | ||||||||||||||||||||
Principal deferral | 1,582 | 194 | 1,776 | ||||||||||||||||||||
Total commercial TDRs | 14,300 | 1,431 | 15,731 | ||||||||||||||||||||
Total troubled debt restructurings | $ | 36,681 | $ | 5,318 | $ | 41,999 | |||||||||||||||||
The table above is inclusive of loans which were TDRs at the end of previous periods and were re-modified, e.g. a maturity date extension, during the current year. | |||||||||||||||||||||||
Schedule of loans by class modified as troubled debt restructurings within the previous twelve months for which there was a payment default | ' | ||||||||||||||||||||||
Year Ended | Number of | Recorded | |||||||||||||||||||||
December 31, 2013 (dollars in thousands) | Loans | Investment | |||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | 29 | $ | 2,252 | ||||||||||||||||||||
Non owner occupied | — | — | |||||||||||||||||||||
Commercial real estate | 2 | 352 | |||||||||||||||||||||
Commercial real estate - purchased whole loans | — | — | |||||||||||||||||||||
Construction & land development | — | — | |||||||||||||||||||||
Commercial & industrial | 1 | 143 | |||||||||||||||||||||
Warehouse lines of credit | — | — | |||||||||||||||||||||
Home equity | 1 | 10 | |||||||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | |||||||||||||||||||||
Overdrafts | — | — | |||||||||||||||||||||
Other consumer | — | — | |||||||||||||||||||||
Total | 33 | $ | 2,757 | ||||||||||||||||||||
Year Ended | Number of | Recorded | |||||||||||||||||||||
December 31, 2012 (dollars in thousands) | Loans | Investment | |||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Owner occupied | 31 | $ | 2,355 | ||||||||||||||||||||
Non owner occupied | 5 | 1,671 | |||||||||||||||||||||
Commercial real estate | 4 | 1,310 | |||||||||||||||||||||
Commercial real estate - purchased whole loans | — | — | |||||||||||||||||||||
Construction & land development | 2 | 1,154 | |||||||||||||||||||||
Commercial & industrial | — | — | |||||||||||||||||||||
Warehouse lines of credit | — | — | |||||||||||||||||||||
Home equity | — | — | |||||||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | |||||||||||||||||||||
Overdrafts | — | — | |||||||||||||||||||||
Other consumer | — | — | |||||||||||||||||||||
Total | 42 | $ | 6,490 | ||||||||||||||||||||
Schedule of RAL originations and RAL losses | ' | ||||||||||||||||||||||
Year Ended December 31, (in thousands) | 2012 | 2011 | |||||||||||||||||||||
RAL Originations: | |||||||||||||||||||||||
RALs originated and retained on balance sheet | $ | 796,015 | $ | 1,038,862 | |||||||||||||||||||
RAL Losses: | |||||||||||||||||||||||
Losses for RALs retained, net | $ | 6,876 | $ | 11,560 | |||||||||||||||||||
TCB and FCB acquisitions | ' | ||||||||||||||||||||||
Loans and allowance for loan and losses | ' | ||||||||||||||||||||||
Schedule of composition of loan portfolio | ' | ||||||||||||||||||||||
Tennessee | First | Total | |||||||||||||||||||||
Commerce | Commercial | Acquired | |||||||||||||||||||||
December 31, 2013 (in thousands) | Bank | Bank | Banks | ||||||||||||||||||||
Residential real estate | $ | 10,191 | $ | 19,554 | $ | 29,745 | |||||||||||||||||
Commercial real estate | 13,398 | 43,167 | 56,565 | ||||||||||||||||||||
Construction & land development | 295 | 1,614 | 1,909 | ||||||||||||||||||||
Commercial & industrial | 329 | 2,867 | 3,196 | ||||||||||||||||||||
Home equity | 4,270 | 366 | 4,636 | ||||||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | 205 | — | 205 | ||||||||||||||||||||
Overdrafts | 4 | — | 4 | ||||||||||||||||||||
Other consumer | 73 | 129 | 202 | ||||||||||||||||||||
Total loans | $ | 28,765 | $ | 67,697 | $ | 96,462 | |||||||||||||||||
The above table is inclusive of loans originated subsequent to the respective acquisition dates. | |||||||||||||||||||||||
Tennessee | First | Total | |||||||||||||||||||||
Commerce | Commercial | Acquired | |||||||||||||||||||||
December 31, 2012 (in thousands) | Bank | Bank | Banks | ||||||||||||||||||||
Residential real estate | $ | 12,270 | $ | 32,459 | $ | 44,729 | |||||||||||||||||
Commercial real estate | 8,015 | 61,758 | 69,773 | ||||||||||||||||||||
Construction & land development | 4,235 | 3,301 | 7,536 | ||||||||||||||||||||
Commercial & industrial | 1,284 | 9,405 | 10,689 | ||||||||||||||||||||
Home equity | 4,183 | 385 | 4,568 | ||||||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | 321 | — | 321 | ||||||||||||||||||||
Overdrafts | 1 | 11 | 12 | ||||||||||||||||||||
Other consumer | 655 | 333 | 988 | ||||||||||||||||||||
Total loans | $ | 30,964 | $ | 107,652 | $ | 138,616 | |||||||||||||||||
Schedule of reconciliation of contractually-required and carrying amounts of acquired TCB and FCB loans | ' | ||||||||||||||||||||||
Tennessee | First | Total | |||||||||||||||||||||
Commerce | Commercial | Acquired | |||||||||||||||||||||
December 31, 2013 (in thousands) | Bank | Bank | Banks | ||||||||||||||||||||
Contractually-required principal | $ | 34,406 | $ | 85,184 | $ | 119,590 | |||||||||||||||||
Non-accretable difference | (3,884 | ) | (15,194 | ) | (19,078 | ) | |||||||||||||||||
Accretable difference | (1,757 | ) | (2,293 | ) | (4,050 | ) | |||||||||||||||||
Total carrying value of loans | $ | 28,765 | $ | 67,697 | $ | 96,462 | |||||||||||||||||
Tennessee | First | Total | |||||||||||||||||||||
Commerce | Commercial | Acquired | |||||||||||||||||||||
December 31, 2012 (in thousands) | Bank | Bank | Banks | ||||||||||||||||||||
Contractually-required principal | $ | 42,188 | $ | 139,156 | $ | 181,344 | |||||||||||||||||
Non-accretable difference | (10,393 | ) | (28,870 | ) | (39,263 | ) | |||||||||||||||||
Accretable difference | (831 | ) | (2,634 | ) | (3,465 | ) | |||||||||||||||||
Total carrying value of loans | $ | 30,964 | $ | 107,652 | $ | 138,616 | |||||||||||||||||
Schedule of non-performing loans and non-performing assets and select credit quality ratios | ' | ||||||||||||||||||||||
Tennessee | First | Total | |||||||||||||||||||||
Commerce | Commercial | Acquired | |||||||||||||||||||||
December 31, 2013 (dollars in thousands) | Bank | Bank | Banks | ||||||||||||||||||||
Loans on non-accrual status(1) | $ | 290 | $ | — | $ | 290 | |||||||||||||||||
Loans past due 90 days-or-more and still on accrual(2) | 334 | 1,640 | 1,974 | ||||||||||||||||||||
Total non-performing loans | 624 | 1,640 | 2,264 | ||||||||||||||||||||
Other real estate owned | 371 | 9,092 | 9,463 | ||||||||||||||||||||
Total non-performing assets | $ | 995 | $ | 10,732 | $ | 11,727 | |||||||||||||||||
Credit Quality Ratios - Acquired Banks: | |||||||||||||||||||||||
Non-performing loans to total loans | 2.35 | % | |||||||||||||||||||||
Non-performing assets to total loans (including OREO) | 11.07 | % | |||||||||||||||||||||
(1) Loans on non-accrual status include impaired loans. | |||||||||||||||||||||||
(2) All loans past due 90 days-or-more and still accruing were PCI loans accounted for under ASC 310-30. | |||||||||||||||||||||||
Tennessee | First | Total | |||||||||||||||||||||
Commerce | Commercial | Acquired | |||||||||||||||||||||
December 31, 2012 (dollars in thousands) | Bank | Bank | Banks | ||||||||||||||||||||
Loans on non-accrual status (1) | $ | — | $ | — | $ | — | |||||||||||||||||
Loans past due 90-days-or-more and still on accrual (2) | 801 | 2,372 | 3,173 | ||||||||||||||||||||
Total non-performing loans | 801 | 2,372 | 3,173 | ||||||||||||||||||||
Other real estate owned | 2,100 | 12,398 | 14,498 | ||||||||||||||||||||
Total non-performing assets | $ | 2,901 | $ | 14,770 | $ | 17,671 | |||||||||||||||||
Credit Quality Ratios - Acquired Banks: | |||||||||||||||||||||||
Non-performing loans to total loans | 2.29 | % | |||||||||||||||||||||
Non-performing assets to total loans (including OREO) | 11.54 | % | |||||||||||||||||||||
(1) Loans on non-accrual status include impaired loans. | |||||||||||||||||||||||
(2) All loans past due 90 days-or-more and still accruing were PCI loans accounted for under ASC 310-30. | |||||||||||||||||||||||
Schedule of aging of the recorded investment in loans by class of loans | ' | ||||||||||||||||||||||
30 - 59 | 60 - 89 | Greater than | Total | Total | Total | ||||||||||||||||||
December 31, 2013 | Days | Days | 90 Days | Loans | Loans Not | Acquired Bank | |||||||||||||||||
(dollars in thousands) | Delinquent | Delinquent | Delinquent * | Delinquent | Delinquent | Loans | |||||||||||||||||
Residential real estate | $ | 213 | $ | 178 | $ | 673 | $ | 1,064 | $ | 28,681 | $ | 29,745 | |||||||||||
Commercial real estate | 241 | 384 | — | 625 | 55,940 | 56,565 | |||||||||||||||||
Construction & land development | 334 | — | 70 | 404 | 1,505 | 1,909 | |||||||||||||||||
Commercial & industrial | — | — | 1,231 | 1,231 | 1,965 | 3,196 | |||||||||||||||||
Home equity | 178 | — | — | 178 | 4,458 | 4,636 | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | — | — | 205 | 205 | |||||||||||||||||
Overdrafts | 1 | — | — | 1 | 3 | 4 | |||||||||||||||||
Other consumer | 1 | — | — | 1 | 201 | 202 | |||||||||||||||||
Total | $ | 968 | $ | 562 | $ | 1,974 | $ | 3,504 | $ | 92,958 | $ | 96,462 | |||||||||||
Delinquent acquired bank loans to total acquired bank loans | 1 | % | 0.58 | % | 2.05 | % | 3.63 | % | |||||||||||||||
30 - 59 | 60 - 89 | Greater than | Total | Total | Total | ||||||||||||||||||
December 31, 2012 | Days | Days | 90 Days | Loans | Loans Not | Acquired Bank | |||||||||||||||||
(dollars in thousands) | Delinquent | Delinquent | Delinquent * | Delinquent | Delinquent | Loans | |||||||||||||||||
Residential real estate | $ | 159 | $ | 1,430 | $ | 729 | $ | 2,318 | $ | 42,411 | $ | 44,729 | |||||||||||
Commercial real estate | — | 165 | 698 | 863 | 68,910 | 69,773 | |||||||||||||||||
Construction & land development | — | 194 | 531 | 725 | 6,811 | 7,536 | |||||||||||||||||
Commercial & industrial | — | 732 | 1,215 | 1,947 | 8,742 | 10,689 | |||||||||||||||||
Home equity | 83 | — | — | 83 | 4,485 | 4,568 | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Credit cards | — | — | — | — | 321 | 321 | |||||||||||||||||
Overdrafts | — | — | — | — | 12 | 12 | |||||||||||||||||
Other consumer | 4 | 27 | — | 31 | 957 | 988 | |||||||||||||||||
Total | $ | 246 | $ | 2,548 | $ | 3,173 | $ | 5,967 | $ | 132,649 | $ | 138,616 | |||||||||||
Delinquent acquired bank loans to total acquired bank loans | 0.18 | % | 1.84 | % | 2.29 | % | 4.31 | % | |||||||||||||||
* - All loans past due 90 days-or-more, excluding PCI loans, as of December 31, 2013 and 2012 were on non-accrual status. | |||||||||||||||||||||||
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2013 Using: | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets | Other | Significant | |||||||||||||||
for Identical | Observable | Unobservable | Total | ||||||||||||||
Assets | Inputs | Inputs | Fair | ||||||||||||||
(in thousands) | (Level 1) | (Level 2) | (Level 3) | Value | |||||||||||||
Financial Assets: | |||||||||||||||||
Securities available for sale: | |||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | — | $ | 97,465 | $ | — | $ | 97,465 | |||||||||
Private label mortgage backed security | — | — | 5,485 | 5,485 | |||||||||||||
Mortgage backed securities - residential | — | 150,087 | — | 150,087 | |||||||||||||
Collateralized mortgage obligations | — | 163,946 | — | 163,946 | |||||||||||||
Mutual fund | 995 | — | — | 995 | |||||||||||||
Corporate bonds | — | 14,915 | — | 14,915 | |||||||||||||
Total securities available for sale | $ | 995 | $ | 426,413 | $ | 5,485 | $ | 432,893 | |||||||||
Mortgage loans held for sale | $ | — | $ | 3,506 | $ | — | $ | 3,506 | |||||||||
Rate lock commitments | — | 77 | — | 77 | |||||||||||||
Mandatory forward contracts | — | 12 | — | 12 | |||||||||||||
Interest rate swaps | — | 170 | — | 170 | |||||||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2012 Using: | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets | Other | Significant | |||||||||||||||
for Identical | Observable | Unobservable | Total | ||||||||||||||
Assets | Inputs | Inputs | Fair | ||||||||||||||
(in thousands) | (Level 1) | (Level 2) | (Level 3) | Value | |||||||||||||
Financial Assets: | |||||||||||||||||
Securities available for sale: | |||||||||||||||||
U.S. Treasury securities and U.S. Government agencies | $ | — | $ | 39,472 | $ | — | $ | 39,472 | |||||||||
Private label mortgage backed security | — | — | 5,687 | 5,687 | |||||||||||||
Mortgage backed securities - residential | — | 197,210 | — | 197,210 | |||||||||||||
Collateralized mortgage obligations | — | 195,877 | — | 195,877 | |||||||||||||
Total securities available for sale | $ | — | $ | 432,559 | $ | 5,687 | $ | 438,246 | |||||||||
Mortgage loans held for sale | $ | — | $ | 10,614 | $ | — | $ | 10,614 | |||||||||
Rate lock loan commitments | — | 833 | — | 833 | |||||||||||||
Mandatory forward contracts | — | 47 | — | 47 | |||||||||||||
Reconciliation of the Bank's Private Label Mortgage Backed Security Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Balance, beginning of year | $ | 5,687 | $ | 4,542 | $ | 5,124 | |||||||||||
Total gains or losses included in earnings: | |||||||||||||||||
Net impairment loss recognized in earnings | — | — | (279 | ) | |||||||||||||
Net change in unrealized gain/(loss) | 742 | 2,458 | 6,671 | ||||||||||||||
Realized pass through of actual losses | — | (1,313 | ) | (6,412 | ) | ||||||||||||
Recovery of actual losses previously recorded | 201 | — | — | ||||||||||||||
Principal paydowns | (1,145 | ) | — | (562 | ) | ||||||||||||
Balance, end of year | $ | 5,485 | $ | 5,687 | $ | 4,542 | |||||||||||
Assets Measured at Fair Value on a Non-Recurring Basis | ' | ||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2013 Using: | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets | Other | Significant | |||||||||||||||
for Identical | Observable | Unobservable | Total | ||||||||||||||
Assets | Inputs | Inputs | Fair | ||||||||||||||
(in thousands) | (Level 1) | (Level 2) | (Level 3) | Value | |||||||||||||
Impaired loans: | |||||||||||||||||
Residential real estate: | |||||||||||||||||
Owner occupied | $ | — | $ | — | $ | 2,020 | $ | 2,020 | |||||||||
Commercial real estate | — | — | 5,488 | 5,488 | |||||||||||||
Home equity | — | — | 1,030 | 1,030 | |||||||||||||
Total impaired loans * | $ | — | $ | — | $ | 8,538 | $ | 8,538 | |||||||||
Other real estate owned: | |||||||||||||||||
Residential real estate | $ | — | $ | — | $ | 1,716 | $ | 1,716 | |||||||||
Commercial real estate | — | — | 507 | 507 | |||||||||||||
Construction & land development | — | — | 6,195 | 6,195 | |||||||||||||
Total other real estate owned | $ | — | $ | — | $ | 8,418 | $ | 8,418 | |||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2012 Using: | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets | Other | Significant | |||||||||||||||
for Identical | Observable | Unobservable | Total | ||||||||||||||
Assets | Inputs | Inputs | Fair | ||||||||||||||
(in thousands) | (Level 1) | (Level 2) | (Level 3) | Value | |||||||||||||
Impaired loans: | |||||||||||||||||
Residential real estate: | |||||||||||||||||
Owner occupied | $ | — | $ | — | $ | 782 | $ | 782 | |||||||||
Non owner occupied | — | — | 1,788 | 1,788 | |||||||||||||
Commercial real estate | — | — | 15,618 | 15,618 | |||||||||||||
Construction & land development | — | — | 1,552 | 1,552 | |||||||||||||
Commercial & industrial | — | — | 182 | 182 | |||||||||||||
Home equity | — | — | 303 | 303 | |||||||||||||
Total impaired loans * | $ | — | $ | — | $ | 20,225 | $ | 20,225 | |||||||||
Other real estate owned: | |||||||||||||||||
Residential real estate | $ | — | $ | — | $ | 1,195 | $ | 1,195 | |||||||||
Commercial real estate | — | — | 1,219 | 1,219 | |||||||||||||
Construction & land development | — | — | 5,161 | 5,161 | |||||||||||||
Total other real estate owned | $ | — | $ | — | $ | 7,575 | $ | 7,575 | |||||||||
Mortgage servicing rights** | $ | — | $ | 3,484 | $ | — | $ | 3,484 | |||||||||
* - The impaired loan balances in the preceding two tables excludes TDRs which are not collateral dependent. The difference between the carrying value and the fair value of impaired loans measured at fair value are reconciled in a subsequent table of this footnote and represents estimated selling costs and loss reserves on such loans. | |||||||||||||||||
** - Mortgage Servicing Rights at fair value only include those tranches which were considered impaired at the reported period end. | |||||||||||||||||
Realized Impairment Losses Related to Level 3 Private Label Mortgage Backed Securities | ' | ||||||||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Net impairment loss recognized in earnings | $ | — | $ | — | $ | 279 | |||||||||||
Impaired Loans Carrying Amount and Valuation Allowance | ' | ||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||||||||
Carrying amount of loans measured at fair value | $ | 7,629 | $ | 23,070 | |||||||||||||
Estimated selling costs considered in carrying amount | 909 | 1,839 | |||||||||||||||
Valuation allowance(1) | — | (4,684 | ) | ||||||||||||||
Total fair value | $ | 8,538 | $ | 20,225 | |||||||||||||
(1) – Loans measured at fair value at December 31, 2013 carried no valuation allowance but were charged down to fair value less selling costs. Loans measured at fair value at December 31, 2012 included a valuation allowance for the difference between fair value less selling costs and carrying value. | |||||||||||||||||
Other Real Estate Owned | ' | ||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Carrying value of other real estate owned | $ | 17,102 | $ | 26,203 | $ | 10,956 | |||||||||||
Other real estate owned writedowns | 1,824 | 1,719 | 917 | ||||||||||||||
Mortgage Servicing Rights | ' | ||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Outstanding balance | $ | — | $ | 3,829 | $ | 3,615 | |||||||||||
Valuation allowance | — | (345 | ) | (203 | ) | ||||||||||||
Fair value | $ | — | $ | 3,484 | $ | 3,412 | |||||||||||
Year to date charge (credit) to mortgage banking income due to evaluation of value | $ | (345 | ) | $ | 142 | $ | 203 | ||||||||||
Schedule of aggregate fair value, contractual balance and gain | ' | ||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||||||||
Aggregate fair value | $ | 3,506 | $ | 10,614 | |||||||||||||
Contractual balance | 3,417 | 10,037 | |||||||||||||||
Gain | 89 | 577 | |||||||||||||||
Schedule of gains and losses from changes in fair value included in earnings | ' | ||||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Interest income | $ | 471 | $ | 400 | $ | 401 | |||||||||||
Change in fair value | (488 | ) | 421 | 201 | |||||||||||||
Total change in fair value | $ | (17 | ) | $ | 821 | $ | 602 | ||||||||||
Carrying Amount and Estimated Fair Values of Financial Instruments | ' | ||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2013: | |||||||||||||||||
Total | |||||||||||||||||
Carrying | Fair | ||||||||||||||||
(in thousands) | Value | Level 1 | Level 2 | Level 3 | Value | ||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 170,863 | $ | 170,863 | $ | — | $ | — | $ | 170,863 | |||||||
Securities available for sale | 432,893 | 995 | 426,413 | 5,485 | 432,893 | ||||||||||||
Securities to be held to maturity | 50,644 | — | 50,768 | — | 50,768 | ||||||||||||
Mortgage loans held for sale, at fair value | 3,506 | — | 3,506 | — | 3,506 | ||||||||||||
Loans, net | 2,566,766 | — | — | 2,585,476 | 2,585,476 | ||||||||||||
Federal Home Loan Bank stock | 28,342 | — | — | — | N/A | ||||||||||||
Mortgage servicing rights | 5,409 | — | 7,337 | — | 7,337 | ||||||||||||
Accrued interest receivable | 8,272 | — | 8,272 | — | 8,272 | ||||||||||||
Liabilities: | |||||||||||||||||
Non interest-bearing deposits | 488,642 | — | 488,642 | — | 488,642 | ||||||||||||
Transaction deposits | 1,244,256 | — | 1,244,256 | — | 1,244,256 | ||||||||||||
Time deposits | 257,959 | — | 259,345 | — | 259,345 | ||||||||||||
Securities sold under agreements to repurchase and other short-term borrowings | 165,555 | — | 165,555 | — | 165,555 | ||||||||||||
Federal Home Loan Bank advances | 605,000 | — | 618,064 | — | 618,064 | ||||||||||||
Subordinated note | 41,240 | — | 38,020 | — | 38,020 | ||||||||||||
Accrued interest payable | 1,459 | — | 1,459 | — | 1,459 | ||||||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2012: | |||||||||||||||||
Total | |||||||||||||||||
Carrying | Fair | ||||||||||||||||
(in thousands) | Value | Level 1 | Level 2 | Level 3 | Value | ||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 137,691 | $ | 137,691 | $ | — | $ | — | $ | 137,691 | |||||||
Securities available for sale | 438,246 | — | 432,559 | 5,687 | 438,246 | ||||||||||||
Securities to be held to maturity | 46,010 | — | 46,416 | — | 46,416 | ||||||||||||
Mortgage loans held for sale, at fair value | 10,614 | — | 10,614 | — | 10,614 | ||||||||||||
Loans, net | 2,626,468 | — | — | 2,702,686 | 2,702,686 | ||||||||||||
Federal Home Loan Bank stock | 28,377 | — | — | — | N/A | ||||||||||||
Mortgage servicing rights | 4,777 | — | 5,446 | — | 5,446 | ||||||||||||
Accrued interest receivable | 9,245 | — | 9,245 | — | 9,245 | ||||||||||||
Liabilities: | |||||||||||||||||
Non interest-bearing deposits | 479,046 | — | 479,046 | — | 479,046 | ||||||||||||
Transaction deposits | 1,193,339 | — | 1,193,339 | — | 1,193,339 | ||||||||||||
Time deposits | 310,543 | — | 314,972 | — | 314,972 | ||||||||||||
Securities sold under agreements to repurchase and other short-term borrowings | 250,884 | — | 250,884 | — | 250,884 | ||||||||||||
Federal Home Loan Bank advances | 542,600 | — | 576,158 | — | 576,158 | ||||||||||||
Subordinated note | 41,240 | — | 37,917 | — | 37,917 | ||||||||||||
Accrued interest payable | 1,403 | — | 1,403 | — | 1,403 | ||||||||||||
Recurring basis | ' | ||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||
Fair value inputs quantitative information | ' | ||||||||||||||||
Fair | Valuation | ||||||||||||||||
December 31, 2013 (dollars in thousands) | Value | Technique | Unobservable Inputs | Range | |||||||||||||
Private label mortgage backed security | $ | 5,485 | Discounted cash flow | (1) Constant prepayment rate | 2.5% - 6.5% | ||||||||||||
(2) Probability of default | 3.0% - 7.0% | ||||||||||||||||
(2) Loss severity | 55% - 75% | ||||||||||||||||
Fair | Valuation | ||||||||||||||||
December 31, 2012 (dollars in thousands) | Value | Technique | Unobservable Inputs | Range | |||||||||||||
Private label mortgage backed security | $ | 5,687 | Discounted cash flow | Constant prepayment rate | 1.0% - 6.0% | ||||||||||||
Probability of default | 3.5% - 7.0% | ||||||||||||||||
Loss severity | 60% - 70% | ||||||||||||||||
Nonrecurring basis | ' | ||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||
Fair value inputs quantitative information | ' | ||||||||||||||||
Range | |||||||||||||||||
Fair | Valuation | Unobservable | (Weighted | ||||||||||||||
December 31, 2013 (dollars in thousands) | Value | Technique | Inputs | Average) | |||||||||||||
Impaired loans - commercial real estate | $ | 5,488 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 0% - 30% (19%) | ||||||||||||
Impaired loans - residential real estate | $ | 2,020 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 2% - 22% (7%) | ||||||||||||
Impaired loans - home equity | $ | 1,030 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 0% - 10% (2%) | ||||||||||||
Other real estate owned - residential | $ | 1,716 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 10% - 53% (30%) | ||||||||||||
Other real estate owned - commercial real estate | $ | 507 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 23% - 33% (29%) | ||||||||||||
Other real estate owned - construction & land development | $ | 2,236 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 17% - 58% (43%) | ||||||||||||
$ | 3,959 | Income approach | Adjustments for differences between net operating income expectations | 21% (21%) | |||||||||||||
Range | |||||||||||||||||
Fair | Valuation | Unobservable | (Weighted | ||||||||||||||
December 31, 2012 (dollars in thousands) | Value | Technique | Inputs | Average) | |||||||||||||
Impaired loans - commercial real estate | $ | 15,230 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 0% - 50% (18%) | ||||||||||||
$ | 1,940 | Income approach | Adjustments for differences between net operating income expectations | 12% - 12% (12%) | |||||||||||||
Impaired loans - residential real estate | $ | 2,873 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 2% - 60% (17%) | ||||||||||||
Impaired loans - commercial & industrial | $ | 182 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 0% - 50% (44%) | ||||||||||||
Other real estate owned - residential | $ | 1,195 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 4% - 71% (14%) | ||||||||||||
Other real estate owned - commercial real estate | $ | 1,219 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 1% - 33% (16%) | ||||||||||||
Other real estate owned - real estate construction | $ | 663 | Sales comparison approach | Adjustments determined by Management for differences between the comparable sales | 1% - 54% (35%) | ||||||||||||
$ | 4,498 | Income approach | Adjustments for differences between net operating income expectations | 25% - 25% (25%) | |||||||||||||
MORTGAGE_BANKING_ACTIVITIES_Ta
MORTGAGE BANKING ACTIVITIES (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
MORTGAGE BANKING ACTIVITIES | ' | |||||||||||||
Activity for Mortgage Loans Held for Sale | ' | |||||||||||||
December 31, (in thousands) | 2013 | 2012 | ||||||||||||
Balance, beginning of year | $ | 10,614 | $ | 4,392 | ||||||||||
Origination of mortgage loans held for sale | 291,155 | 252,194 | ||||||||||||
Proceeds from the sale of mortgage loans held for sale | (305,242 | ) | (255,670 | ) | ||||||||||
Net gain on sale of mortgage loans held for sale | 6,979 | 9,698 | ||||||||||||
Balance, end of year | $ | 3,506 | $ | 10,614 | ||||||||||
Components of Mortgage Banking Income | ' | |||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | |||||||||||
Net gain realized on sale of mortgage loans held for sale | $ | 8,258 | $ | 8,796 | $ | 3,877 | ||||||||
Net change in fair value of recognized on loans held for sale | (488 | ) | 421 | 201 | ||||||||||
Net change in fair value recognized on rate lock commitments | (756 | ) | 342 | 383 | ||||||||||
Net change in fair value recognized on forward contracts | (35 | ) | 139 | (370 | ) | |||||||||
Net gain recognized | 6,979 | 9,698 | 4,091 | |||||||||||
Loan servicing income | 2,107 | $ | 2,181 | $ | 2,828 | |||||||||
Amortization of mortgage servicing rights | (2,173 | ) | (3,290 | ) | (2,817 | ) | ||||||||
Change in mortgage servicing rights valuation allowance | 345 | (142 | ) | (203 | ) | |||||||||
Net servicing income recognized | 279 | (1,251 | ) | (192 | ) | |||||||||
Total Mortgage Banking income | $ | 7,258 | $ | 8,447 | $ | 3,899 | ||||||||
Activity for capitalized mortgage servicing rights | ' | |||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | |||||||||||
Balance, beginning of year | $ | 4,777 | $ | 6,087 | $ | 7,800 | ||||||||
Additions | 2,460 | 2,122 | 1,307 | |||||||||||
Amortized to expense | (2,173 | ) | (3,290 | ) | (2,817 | ) | ||||||||
Change in valuation allowance | 345 | (142 | ) | (203 | ) | |||||||||
Balance, end of year | $ | 5,409 | $ | 4,777 | $ | 6,087 | ||||||||
Valuation Allowance For Capitalized Mortgage Servicing Rights | ' | |||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | |||||||||||
Balance, beginning of year | $ | (345 | ) | $ | (203 | ) | $ | — | ||||||
Additions | — | (247 | ) | (203 | ) | |||||||||
Reductions credited to operations | 345 | 105 | — | |||||||||||
Balance, end of year | $ | — | $ | (345 | ) | $ | (203 | ) | ||||||
Mortgage Servicing Rights | ' | |||||||||||||
December 31, (dollars in thousands) | 2013 | 2012 | ||||||||||||
Fair value of mortgage servicing rights | $ | 7,337 | $ | 5,446 | ||||||||||
Prepayment speed range | 105% - 550% | 112% - 550% | ||||||||||||
Discount rate | 10% | 9% | ||||||||||||
Weighted average default rate | 1.50% | 1.50% | ||||||||||||
Weighted average life in years | 6.17 | 3.89 | ||||||||||||
Schedule of estimated future amortization expense of the MSR portfolio (net of the impairment charge) | ' | |||||||||||||
Year | (in thousands) | |||||||||||||
2014 | $ | 1,008 | ||||||||||||
2015 | 986 | |||||||||||||
2016 | 967 | |||||||||||||
2017 | 933 | |||||||||||||
2018 | 710 | |||||||||||||
2019 | 466 | |||||||||||||
2020 | 339 | |||||||||||||
Total | $ | 5,409 | ||||||||||||
Schedule of notional amounts and fair values of mortgage banking derivatives | ' | |||||||||||||
December 31, (in thousands) | 2013 | 2012 | ||||||||||||
Notional | Fair Value | Notional | Fair Value | |||||||||||
Amount | Amount | |||||||||||||
Included in Mortgage loans held for sale: | ||||||||||||||
Mortgage loans held for sale | $ | 3,417 | $ | 3,506 | $ | 10,037 | $ | 10,614 | ||||||
Included in other assets: | ||||||||||||||
Rate lock loan commitments | $ | 4,393 | $ | 77 | $ | 27,468 | $ | 833 | ||||||
Mandatory forward contracts | 5,571 | 12 | 36,675 | 47 | ||||||||||
Total included in other assets | $ | 9,964 | $ | 89 | $ | 64,143 | $ | 880 | ||||||
INTEREST_RATE_SWAPS_Tables
INTEREST RATE SWAPS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INTEREST RATE SWAPS | ' | ||||||||||
Summary of swaps designated as cash flow hedges | ' | ||||||||||
December 31, 2013 (dollars in thousands) | |||||||||||
Notional amount | $ | 20,000 | |||||||||
Weighted average pay rate | 2.25 | % | |||||||||
Weighted average receive rate | 0.21 | % | |||||||||
Weighted average maturity in years | 7 | ||||||||||
Unrealized gain | $ | 170 | |||||||||
Summary of net gains recorded in accumulated OCI and the consolidated statements of income relating to the swaps | ' | ||||||||||
December 31, 2013 (in thousands) | Amount of Gain | Amount of Gain | Amount of Gain | ||||||||
Recognized in | Reclassified from | Recognized in | |||||||||
Other | Accumulated Other | Income on | |||||||||
Comprehensive | Comprehensive | Derivative | |||||||||
Income on | Income on Derivative | (Ineffective Portion) | |||||||||
Derivative | (Effective Portion) | ||||||||||
(Effective Portion) | |||||||||||
Cash flow hedges - interest rate swaps | $ | 111 | $ | — | $ | — | |||||
Summary of cash flow hedge included in the consolidated balance sheet | ' | ||||||||||
December 31, 2013 (in thousands) | Notional | Fair Value | |||||||||
Amount | |||||||||||
Included in other assets: | |||||||||||
Cash flow hedges - interest rate swaps | $ | 20,000 | $ | 170 | |||||||
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
PREMISES AND EQUIPMENT | ' | ||||||||||
Summary of the cost and accumulated depreciation of premises and equipment | ' | ||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||
Land | $ | 3,967 | $ | 3,967 | |||||||
Buildings and improvements | 28,968 | 27,074 | |||||||||
Furniture, fixtures and equipment | 35,011 | 37,460 | |||||||||
Leasehold improvements | 15,475 | 12,118 | |||||||||
Construction in progress | 173 | 106 | |||||||||
Total premises and equipment | 83,594 | 80,725 | |||||||||
Less: Accumulated depreciation and amortization | 50,686 | 47,528 | |||||||||
Premises and equipment, net | $ | 32,908 | $ | 33,197 | |||||||
Schedule of depreciation expense related to premises and equipment | ' | ||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||
Depreciation expense | $ | 5,311 | $ | 5,372 | $ | 5,738 | |||||
GOODWILL_AND_CORE_DEPOSIT_INTA1
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | ' | |||||||||||||
Schedule of progression of the balance for goodwill | ' | |||||||||||||
December 31, (in thousands) | 2013 | 2012 | ||||||||||||
Beginning of year | $ | 10,168 | $ | 10,168 | ||||||||||
Acquired goodwill | — | — | ||||||||||||
Impairment | — | — | ||||||||||||
End of year | $ | 10,168 | $ | 10,168 | ||||||||||
Schedule of core deposit intangibles, which are included in other assets in the Company's consolidated balance sheets | ' | |||||||||||||
2013 | 2012 | |||||||||||||
Years ended December 31, (in thousands) | Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||
Core deposit intangibles | $ | 1,160 | $ | 1,160 | $ | 1,160 | $ | 650 | ||||||
Schedule of aggregate core deposit intangible amortization expense | ' | |||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | |||||||||||
Aggregate core deposit intangible amortization expense | $ | 510 | $ | 171 | $ | 59 | ||||||||
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
DEPOSITS | ' | ||||||||||
Ending Deposit Balances | ' | ||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||
Demand | $ | 651,134 | $ | 580,900 | |||||||
Money market accounts | 479,569 | 514,698 | |||||||||
Brokered money market accounts | 35,533 | 35,596 | |||||||||
Savings | 78,020 | 62,145 | |||||||||
Individual retirement accounts* | 28,767 | 32,491 | |||||||||
Time deposits, $100,000 and over* | 67,255 | 80,906 | |||||||||
Other certificates of deposit* | 75,516 | 100,036 | |||||||||
Brokered certificates of deposit*(1) | 86,421 | 97,110 | |||||||||
Total interest-bearing deposits | 1,502,215 | 1,503,882 | |||||||||
Total non interest-bearing deposits | 488,642 | 479,046 | |||||||||
Total deposits | $ | 1,990,857 | $ | 1,982,928 | |||||||
(*) — Represents a time deposit. | |||||||||||
(1) — Includes brokered deposits less than, equal to and greater than $100,000. | |||||||||||
Composition of deposits outstanding related to the Company's 2012 FDIC-assisted acquisitions | ' | ||||||||||
Tennessee | First | Total | |||||||||
Commerce | Commercial | Acquired | |||||||||
December 31, 2013 (in thousands) | Bank | Bank | Banks | ||||||||
Demand | $ | 1,072 | $ | 2,674 | $ | 3,746 | |||||
Money market accounts | 2,325 | 4,677 | 7,002 | ||||||||
Savings | 4,069 | — | 4,069 | ||||||||
Individual retirement accounts* | 643 | 729 | 1,372 | ||||||||
Time deposits, $100,000 and over* | 3,947 | 1,475 | 5,422 | ||||||||
Other certificates of deposit* | 2,293 | 3,168 | 5,461 | ||||||||
Brokered certificates of deposit*(1) | 2,758 | 2,581 | 5,339 | ||||||||
Total interest-bearing deposits | 17,107 | 15,304 | 32,411 | ||||||||
Total non interest-bearing deposits | 3,335 | 2,192 | 5,527 | ||||||||
Total deposits | $ | 20,442 | $ | 17,496 | $ | 37,938 | |||||
(*) — Represents a time deposit. | |||||||||||
(1) — Includes brokered deposits less than, equal to and greater than $100,000. | |||||||||||
Tennessee | First | Total | |||||||||
Commerce | Commercial | Acquired | |||||||||
December 31, 2012 (in thousands) | Bank | Bank | Banks | ||||||||
Demand | $ | 1,401 | $ | 5,871 | $ | 7,272 | |||||
Money market accounts | 1,727 | 25,762 | 27,489 | ||||||||
Savings | 8,623 | — | 8,623 | ||||||||
Individual retirement accounts* | 1,166 | 3,269 | 4,435 | ||||||||
Time deposits, $100,000 and over* | 10,822 | 3,267 | 14,089 | ||||||||
Other certificates of deposit* | 7,196 | 12,574 | 19,770 | ||||||||
Brokered certificates of deposit*(1) | 6,729 | 12,247 | 18,976 | ||||||||
Total interest-bearing deposits | 37,664 | 62,990 | 100,654 | ||||||||
Total non interest-bearing deposits | 4,240 | 6,812 | 11,052 | ||||||||
Total deposits | $ | 41,904 | $ | 69,802 | $ | 111,706 | |||||
(*) - Represents a time deposit. | |||||||||||
(1) — Includes brokered deposits less than, equal to and greater than $100,000. | |||||||||||
Schedule of time deposits of $100,000 or more, including brokered certificates of deposit | ' | ||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||
Time deposits of $100,000 or more | $ | 146,909 | $ | 158,516 | |||||||
Schedule of maturities of all time deposits, including brokered certificates of deposit | ' | ||||||||||
At December 31, 2013, the scheduled maturities of all time deposits, including brokered certificates of deposit, were as follows: | |||||||||||
Year | (in thousands) | Weighted | |||||||||
Average | |||||||||||
Rate | |||||||||||
2014 | $ | 151,189 | 0.55% | ||||||||
2015 | 58,711 | 1.58% | |||||||||
2016 | 20,576 | 1.64% | |||||||||
2017 | 6,956 | 1.09% | |||||||||
2018 | 20,056 | 1.47% | |||||||||
Thereafter | 471 | 1.00% | |||||||||
Total | $ | 257,959 | 0.96% | ||||||||
SECURITIES_SOLD_UNDER_AGREEMEN1
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | ' | ||||||||||
Schedule of securities sold under agreements to repurchase | ' | ||||||||||
December 31, (dollars in thousands) | 2013 | 2012 | 2011 | ||||||||
Outstanding balance at end of year | $ | 165,555 | $ | 250,884 | $ | 230,231 | |||||
Weighted average interest rate at year end | 0.04 | % | 0.06 | % | 0.17 | % | |||||
Average outstanding balance during the year | $ | 170,386 | $ | 237,414 | $ | 278,861 | |||||
Average interest rate during the year | 0.04 | % | 0.16 | % | 0.23 | % | |||||
Maximum outstanding at any month end | $ | 242,721 | $ | 272,057 | $ | 297,571 | |||||
FEDERAL_HOME_LOAN_BANK_ADVANCE1
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
FEDERAL HOME LOAN BANK ADVANCES | ' | |||||||
Federal Home Loan Bank Advances | ' | |||||||
December 31, (in thousands) | 2013 | 2012 | ||||||
Fixed interest rate advances with a weighted average interest rate of 2.03% due through 2023 | $ | 505,000 | $ | 442,600 | ||||
Putable fixed interest rate advances with a weighted average interest rate of 4.39% due through 2017(1) | 100,000 | 100,000 | ||||||
Total FHLB advances | $ | 605,000 | $ | 542,600 | ||||
(1) - Represents putable advances with the FHLB. These advances have original fixed rate periods ranging from one to five years with original maturities ranging from three to ten years if not put back to the Bank earlier by the FHLB. At the end of their respective fixed rate periods and on a quarterly basis thereafter, the FHLB has the right to require payoff of the advances by the Bank at no penalty. Based on market conditions at this time, the Bank does not believe that any of its putable advances are likely to be “put back” to the Bank in the short-term by the FHLB. | ||||||||
Aggregate Future Principal Payments on FHLB Advances | ' | |||||||
Year | (in thousands) | Weighted | ||||||
Average | ||||||||
Rate | ||||||||
2014 | $ | 188,000 | 2.69 | % | ||||
2015 | 10,000 | 2.48 | % | |||||
2016 | 82,000 | 1.74 | % | |||||
2017 | 145,000 | 3.44 | % | |||||
2018 | 90,000 | 1.51 | % | |||||
Thereafter | 90,000 | 1.75 | % | |||||
Total | $ | 605,000 | 2.42 | % | ||||
Investment Securities Pledged | ' | |||||||
December 31, (in thousands) | 2013 | 2012 | ||||||
First lien, single family residential real estate | $ | 1,082,624 | $ | 1,053,946 | ||||
Home equity lines of credit | 105,957 | 116,043 | ||||||
Multi-family commercial real estate | 13,124 | 7,017 | ||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME TAXES | ' | ||||||||||
Schedule of allocation of federal income tax between current and deferred portion | ' | ||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||
Current expense: | |||||||||||
Federal | $ | 20,668 | $ | 51,888 | $ | 50,326 | |||||
State | 2,167 | 1,565 | 996 | ||||||||
Deferred expense: | |||||||||||
Federal | (7,395 | ) | 10,798 | (1,287 | ) | ||||||
State | (365 | ) | 355 | 13 | |||||||
Total | $ | 15,075 | $ | 64,606 | $ | 50,048 | |||||
Schedule of effective tax rate that differs from that computed at the federal statutory rate | ' | ||||||||||
Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Federal statutory rate times financial statement income | 35 | % | 35 | % | 35 | % | |||||
Effect of: | |||||||||||
State taxes, net of federal benefit | 2.89 | % | 0.68 | % | 0.46 | % | |||||
General business tax credits | -0.73 | % | -0.34 | % | -0.69 | % | |||||
Other, net | 0.06 | % | -0.22 | % | -0.06 | % | |||||
Effective tax rate | 37.22 | % | 35.12 | % | 34.71 | % | |||||
Schedule of deferred tax assets and liabilities | ' | ||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | |||||||||
Deferred tax assets: | |||||||||||
Allowance for loan losses | $ | 7,622 | $ | 7,970 | |||||||
Accrued expenses | 3,571 | 5,128 | |||||||||
Net operating loss carryforward(1) | 1,587 | 1,349 | |||||||||
Depreciation | 519 | 334 | |||||||||
Other-than-temporary impairment | 749 | 884 | |||||||||
Partnership losses | 832 | 794 | |||||||||
Other | 834 | 333 | |||||||||
Total deferred tax assets | 15,714 | 16,792 | |||||||||
Deferred tax liabilities: | |||||||||||
Unrealized investment securities gains | (1,621 | ) | (3,022 | ) | |||||||
Federal Home Loan Bank dividends | (4,309 | ) | (4,362 | ) | |||||||
Deferred loan fees | (653 | ) | (706 | ) | |||||||
Mortgage servicing rights | (1,958 | ) | (1,877 | ) | |||||||
Bargain purchase gain | (5,460 | ) | (14,454 | ) | |||||||
New market tax credits | (1,517 | ) | (1,368 | ) | |||||||
Total deferred tax liabilities | (15,518 | ) | (25,789 | ) | |||||||
Less: Valuation allowance | (1,684 | ) | (1,592 | ) | |||||||
Net deferred tax liability | $ | (1,488 | ) | $ | (10,589 | ) | |||||
(1) The Company has a Kentucky net operating loss carry forward of $22 million which began to expire in 2012 and a Florida net operating loss carryforward of $5 million which begins to expire in 2030. The Company maintains a valuation allowance as it does not anticipate generating taxable income in Kentucky or Florida to utilize these carryforwards prior to expiration. | |||||||||||
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | ' | ||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||
Balance, beginning of year | $ | 595 | $ | 506 | |||||||
Additions based on tax related to the current year | 39 | 146 | |||||||||
Additions for tax positions of prior years | 783 | — | |||||||||
Reductions for tax positions of prior years | — | — | |||||||||
Reductions due to the statute of limitations | (36 | ) | (57 | ) | |||||||
Settlements | — | — | |||||||||
Balance, end of year | $ | 1,381 | $ | 595 | |||||||
Schedule of amount of interest and penalties | ' | ||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||
Interest and penalties recorded in the income statement | $ | 401 | $ | 28 | |||||||
Interest and penalties accrued | 567 | 166 | |||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
EARNINGS PER SHARE | ' | ||||||||||
Earning Per Share and Diluted | ' | ||||||||||
Years Ended December 31, (in thousands, except per share data) | 2013 | 2012 | 2011 | ||||||||
Net income | $ | 25,423 | $ | 119,339 | $ | 94,149 | |||||
Weighted average shares outstanding | 20,807 | 20,959 | 20,945 | ||||||||
Effect of dilutive securities | 97 | 69 | 48 | ||||||||
Average shares outstanding including dilutive securities | 20,904 | 21,028 | 20,993 | ||||||||
Basic earnings per share: | |||||||||||
Class A Common Stock | $ | 1.23 | $ | 5.71 | $ | 4.5 | |||||
Class B Common Stock | $ | 1.17 | $ | 5.55 | $ | 4.45 | |||||
Diluted earnings per share: | |||||||||||
Class A Common Stock | $ | 1.22 | $ | 5.69 | $ | 4.49 | |||||
Class B Common Stock | $ | 1.16 | $ | 5.53 | $ | 4.44 | |||||
Stock Option | ' | ||||||||||
Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||
Antidilutive stock options | 18,000 | 122,450 | 585,720 | ||||||||
Average antidilutive stock options | 15,667 | 120,353 | 585,147 | ||||||||
STOCKHOLDERS_EQUITY_AND_REGULA1
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS | ' | ||||||||||||||||
Schedule of compliance with regulatory capital requirements | ' | ||||||||||||||||
Actual | Minimum | Minimum Requirement | |||||||||||||||
Requirement for | to be Well Capitalized | ||||||||||||||||
Capital Adequacy | Under Prompt | ||||||||||||||||
Purposes | Corrective Action | ||||||||||||||||
Provisions | |||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||
As of December 31, 2013 | |||||||||||||||||
Total capital to risk weighted assets | |||||||||||||||||
Republic Bancorp, Inc. | $ | 592,531 | 26.71 | % | $ | 177,457 | 8 | % | N/A | N/A | |||||||
Republic Bank & Trust Co. | 439,143 | 20.61 | 170,478 | 8 | $ | 213,098 | 10 | % | |||||||||
Republic Bank | 15,860 | 18.69 | 6,788 | 8 | 8,485 | 10 | |||||||||||
Tier 1 (core) capital to risk weighted assets | |||||||||||||||||
Republic Bancorp, Inc. | 569,505 | 25.67 | 88,729 | 4 | N/A | N/A | |||||||||||
Republic Bank & Trust Co. | 418,348 | 19.63 | 85,239 | 4 | 127,859 | 6 | |||||||||||
Republic Bank | 14,785 | 17.42 | 3,394 | 4 | 5,091 | 6 | |||||||||||
Tier 1 leverage capital to average assets | |||||||||||||||||
Republic Bancorp, Inc. | 569,505 | 16.81 | 135,515 | 4 | N/A | N/A | |||||||||||
Republic Bank & Trust Co. | 418,348 | 12.73 | 131,491 | 4 | 164,364 | 5 | |||||||||||
Republic Bank | 14,785 | 14.41 | 4,105 | 4 | 5,132 | 5 | |||||||||||
Actual | Minimum Requirement | Minimum Requirement to | |||||||||||||||
for Capital Adequacy | be Well Capitalized | ||||||||||||||||
Purposes | Under Prompt Corrective | ||||||||||||||||
Action Provisions | |||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||
As of December 31, 2012 | |||||||||||||||||
Total capital to risk weighted assets | |||||||||||||||||
Republic Bancorp, Inc. | $ | 581,189 | 25.28 | % | $ | 183,939 | 8 | % | N/A | N/A | |||||||
Republic Bank & Trust Co. | 451,898 | 20.37 | 177,448 | 8 | $ | 221,811 | 10 | % | |||||||||
Republic Bank | 14,494 | 18.02 | 6,434 | 8 | 8,043 | 10 | |||||||||||
Tier 1 (core) capital to risk weighted assets | |||||||||||||||||
Republic Bancorp, Inc. | 558,982 | 24.31 | 91,969 | 4 | N/A | N/A | |||||||||||
Republic Bank & Trust Co. | 407,261 | 18.36 | 88,724 | 4 | 133,086 | 6 | |||||||||||
Republic Bank | 13,474 | 16.75 | 3,217 | 4 | 4,826 | 6 | |||||||||||
Tier 1 leverage capital to average assets | |||||||||||||||||
Republic Bancorp, Inc. | 558,982 | 16.36 | 136,646 | 4 | N/A | N/A | |||||||||||
Republic Bank & Trust Co. | 407,261 | 12.18 | 133,696 | 4 | 167,120 | 5 | |||||||||||
Republic Bank | 13,474 | 13.43 | 4,013 | 4 | 5,016 | 5 | |||||||||||
STOCK_PLANS_AND_STOCK_BASED_CO1
STOCK PLANS AND STOCK BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
STOCK PLANS AND STOCK BASED COMPENSATION | ' | |||||||||||||||
Schedule of expenses recorded related to stock options | ' | |||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | |||||||||||||
Stock option expense | $ | 205 | $ | 792 | $ | 277 | ||||||||||
Schedule of weighted average assumptions used to determine the fair value of stock options granted | ' | |||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Risk-free interest rate | 0.8 | % | 1.04 | % | 2.29 | % | ||||||||||
Expected dividend yield | 2.95 | % | 2.79 | % | 2.59 | % | ||||||||||
Expected stock price volatility | 31.95 | % | 33.35 | % | 30.88 | % | ||||||||||
Expected life of options (in years) | 6 | 6 | 6 | |||||||||||||
Estimated fair value per share | $ | 5.21 | $ | 5.62 | $ | 5.56 | ||||||||||
Summary of stock option activity | ' | |||||||||||||||
Weighted | ||||||||||||||||
Weighted | Average | |||||||||||||||
Options | Average | Remaining | Aggregate | |||||||||||||
Class A | Exercise | Contractual | Intrinsic | |||||||||||||
Shares | Price | Term | Value | |||||||||||||
Outstanding, beginning of year | 460,200 | $ | 20.86 | |||||||||||||
Granted | 6,000 | 23.42 | ||||||||||||||
Exercised | (31,200 | ) | 21.26 | |||||||||||||
Forfeited or expired | (107,500 | ) | 23.41 | |||||||||||||
Outstanding, end of year | 327,500 | $ | 20.03 | 1.57 | $ | 1,482,580 | ||||||||||
Fully vested and expected to vest | 327,500 | $ | 20.03 | 1.57 | $ | 1,482,580 | ||||||||||
Exercisable (vested) at end of year | 142,000 | $ | 20.01 | 0.86 | $ | 644,818 | ||||||||||
Schedule of intrinsic value and cash received from options exercised and weighted average fair value of options granted | ' | |||||||||||||||
December 31, (in thousands) | 2013 | 2012 | 2011 | |||||||||||||
Intrinsic value of options exercised | $ | 131 | $ | 56 | $ | 315 | ||||||||||
Cash received from options exercised, net of shares redeemed | 439 | 147 | 438 | |||||||||||||
Total fair value of options granted | 31 | 17 | 28 | |||||||||||||
Schedule of loan balances of non-executive officer employees that were originated to fund stock option exercises | ' | |||||||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | ||||||||||||||
Outstanding loans | $ | 217 | $ | 466 | ||||||||||||
Schedule of shares granted, weighted-average grant date fair value and expenses related to awards | ' | |||||||||||||||
December 31, (in thousands except per share data) | 2013 | 2012 | ||||||||||||||
Shares granted | — | 82 | ||||||||||||||
Weighted-average grant date fair value | $ | — | $ | 19.85 | ||||||||||||
Restricted stock award expense | $ | 298 | $ | 50 | ||||||||||||
Summary of activity for non-vested restricted stock awards | ' | |||||||||||||||
2013 | 2012 | |||||||||||||||
Shares | Shares | |||||||||||||||
Outstanding, beginning of year | 82,000 | — | ||||||||||||||
Granted | — | 82,000 | ||||||||||||||
Forfeited or expired | — | — | ||||||||||||||
Earned and issued | — | — | ||||||||||||||
Outstanding, end of year | 82,000 | 82,000 | ||||||||||||||
Schedule of estimated unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures) | ' | |||||||||||||||
Year | Awards | Options | Total | |||||||||||||
2014 | $ | 298 | $ | 115 | $ | 413 | ||||||||||
2015 | 298 | 20 | 318 | |||||||||||||
2016 | 298 | 12 | 310 | |||||||||||||
2017 | 249 | 9 | 258 | |||||||||||||
2018 | 136 | 5 | 141 | |||||||||||||
2019 | — | 2 | 2 | |||||||||||||
Total | $ | 1,279 | $ | 163 | $ | 1,442 | ||||||||||
Schedule of information on director deferred compensation shares reserved for the periods | ' | |||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Years ended December 31, | Shares | Weighted Average | Shares | Weighted Average | Shares | Weighted Average | ||||||||||
Deferred | Market Price at | Deferred | Market Price at Date | Deferred | Market Price at Date | |||||||||||
Date of Deferral | of Deferral | of Deferral | ||||||||||||||
Balance, beginning of period | 50,414 | 20.64 | 43,990 | $ | 20.19 | 37,842 | $ | 20.3 | ||||||||
Awarded | 7,768 | 24.32 | 9,871 | 22.02 | 8,658 | 19.77 | ||||||||||
Released | (5,046 | ) | 20.16 | (3,447 | ) | 18.93 | (2,510 | ) | 20.42 | |||||||
Balance, end of period | 53,136 | 21.23 | 50,414 | 20.64 | 43,990 | $ | 20.19 | |||||||||
Schedule of director deferred compensation expenses | ' | |||||||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | 2011 | |||||||||||||
Director deferred compensation expense | $ | 193 | $ | 227 | $ | 171 | ||||||||||
BENEFIT_PLANS_Tables
BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
BENEFIT PLANS | ' | ||||||||||
Schedule of normal and bonus contributions | ' | ||||||||||
Years Ended December 31, (dollars in thousands) | 2013 | 2012 | 2011 | ||||||||
Employer matching contributions | $ | 1,576 | $ | 1,470 | $ | 1,388 | |||||
Discretionary employer bonus matching contributions | $ | — | $ | 446 | $ | 420 | |||||
Schedule of the ESOP plan | ' | ||||||||||
Years Ended December 31, (dollars in thousands) | 2013 | 2012 | 2011 | ||||||||
Shares allocated to participants in the plan | — | 255,374 | 274,742 | ||||||||
Fair value of shares | $ | — | $ | 5,396 | $ | 6,292 | |||||
TRANSACTIONS_WITH_RELATED_PART1
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES | ' | ||||||||||
Schedule of rent expense under the leases | ' | ||||||||||
Years Ended December 31, ($ in thousands) | 2013 | 2012 | 2011 | ||||||||
Rent expense under leases from related parties | $ | 3,372 | $ | 3,254 | $ | 3,158 | |||||
Schedule of total minimum lease commitments under non-cancelable operating leases | ' | ||||||||||
(in thousands) | Affiliate | Other | Total | ||||||||
2014 | 3,455 | 3,391 | 6,846 | ||||||||
2015 | 3,209 | 2,994 | 6,203 | ||||||||
2016 | 2,643 | 1,499 | 4,142 | ||||||||
2017 | 1,827 | 1,368 | 3,195 | ||||||||
2018 | 1,281 | 1,196 | 2,477 | ||||||||
Thereafter | — | 5,507 | 5,507 | ||||||||
Total | $ | 12,415 | $ | 15,955 | $ | 28,370 | |||||
Schedule of loans made to executive officers and directors of the company and their related interests | ' | ||||||||||
(in thousands) | |||||||||||
Beginning balance | $ | 20,953 | |||||||||
Effect of changes in composition of related parties | (338 | ) | |||||||||
New loans | 6,981 | ||||||||||
Repayments | (7,888 | ) | |||||||||
Ending balance | $ | 19,708 | |||||||||
OFF_BALANCE_SHEET_RISKS_COMMIT1
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES | ' | |||||||
Bank Commitment Exclusive of Mortgage Bank Loan Commitments | ' | |||||||
December 31, (in thousands) | 2013 | 2012 | ||||||
Unused warehouse lines of credit | $ | 208,424 | $ | 113,924 | ||||
Unused home equity lines of credit | 230,361 | 232,719 | ||||||
Unused loan commitments - other | 178,776 | 163,523 | ||||||
Standby letters of credit | 2,308 | 16,985 | ||||||
FHLB letters of credit | 3,200 | 11,908 | ||||||
Total off balance sheet items | $ | 623,069 | $ | 539,059 | ||||
PARENT_COMPANY_CONDENSED_FINAN1
PARENT COMPANY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | ' | ||||||||||
Schedule of balance sheets | ' | ||||||||||
December 31, (in thousands) | 2013 | 2012 | |||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 130,750 | $ | 115,984 | |||||||
Investment in subsidiaries | 448,388 | 463,316 | |||||||||
Other assets | 10,624 | 2,737 | |||||||||
Total assets | $ | 589,762 | $ | 582,037 | |||||||
Liabilities and Stockholders’ Equity: | |||||||||||
Subordinated note | $ | 41,240 | $ | 41,240 | |||||||
Other liabilities | 5,729 | 4,095 | |||||||||
Stockholders’ equity | 542,793 | 536,702 | |||||||||
Total liabilities and stockholders’ equity | $ | 589,762 | $ | 582,037 | |||||||
Schedule of statements of income | ' | ||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||
Income and expenses: | |||||||||||
Dividends from subsidiary | $ | 16,376 | $ | 115,476 | $ | 35,476 | |||||
Interest income | 2 | 3 | 81 | ||||||||
Other income | 39 | 39 | 39 | ||||||||
Less: Interest expense | 2,515 | 2,522 | 2,515 | ||||||||
Less: Other expenses | 368 | 441 | 382 | ||||||||
Income before income tax benefit | 13,534 | 112,555 | 32,699 | ||||||||
Income tax benefit | 958 | 997 | 961 | ||||||||
Income before equity in undistributed net income of subsidiaries | 14,492 | 113,552 | 33,660 | ||||||||
Equity in undistributed net income of subsidiaries | 10,931 | 5,787 | 60,489 | ||||||||
Net income | $ | 25,423 | $ | 119,339 | $ | 94,149 | |||||
Schedule of statements of cash flows | ' | ||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||
Operating activities: | |||||||||||
Net income | $ | 25,423 | $ | 119,339 | $ | 94,149 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed net income of subsidiaries | (10,931 | ) | (5,787 | ) | (60,489 | ) | |||||
Director deferred compensation - Parent Company | 99 | 121 | 104 | ||||||||
Change in other assets | (7,895 | ) | (1,917 | ) | 1,127 | ||||||
Change in other liabilities | 2,114 | 741 | (187 | ) | |||||||
Net cash provided by operating activities | 8,810 | 112,497 | 34,704 | ||||||||
Investing activities: | |||||||||||
Redemption of Republic Investment Company common stock | 23,621 | — | — | ||||||||
Net cash provided by operating activities | 23,621 | — | — | ||||||||
Financing activities: | |||||||||||
Common Stock repurchases | (4,095 | ) | (1,668 | ) | (492 | ) | |||||
Net proceeds from Common Stock options exercised | 439 | 147 | 438 | ||||||||
Cash dividends paid | (14,009 | ) | (36,116 | ) | (12,315 | ) | |||||
Net cash used in financing activities | (17,665 | ) | (37,637 | ) | (12,369 | ) | |||||
Net change in cash and cash equivalents | 14,766 | 74,860 | 22,335 | ||||||||
Cash and cash equivalents at beginning of year | 115,984 | 41,124 | 18,789 | ||||||||
Cash and cash equivalents at end of year | $ | 130,750 | $ | 115,984 | $ | 41,124 | |||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
Segment Information | ' | |||||||||||||
Year Ended December 31, 2013 | ||||||||||||||
Republic | ||||||||||||||
Traditional | Mortgage | Processing | Total | |||||||||||
(dollars in thousands) | Banking | Banking | Group | Company | ||||||||||
Net interest income | $ | 112,556 | $ | 471 | $ | 148 | $ | 113,175 | ||||||
Provision for loan losses | 3,828 | — | (845 | ) | 2,983 | |||||||||
Net refund transfer fees | — | — | 13,884 | 13,884 | ||||||||||
Mortgage banking income | — | 7,258 | — | 7,258 | ||||||||||
Bargain purchase gain - FCB | 1,324 | — | — | 1,324 | ||||||||||
Other non interest income | 24,497 | 131 | 875 | 25,503 | ||||||||||
Total non interest income | 25,821 | 7,389 | 14,759 | 47,969 | ||||||||||
Total non interest expenses | 98,064 | 3,418 | 16,181 | 117,663 | ||||||||||
Income (loss) before income tax expense | 36,485 | 4,442 | (429 | ) | 40,498 | |||||||||
Income tax expense | 12,557 | 1,555 | 963 | 15,075 | ||||||||||
Net income (loss) | $ | 23,928 | $ | 2,887 | $ | (1,392 | ) | $ | 25,423 | |||||
Segment end of period total assets | $ | 3,354,850 | $ | 9,307 | $ | 7,747 | $ | 3,371,904 | ||||||
Net interest margin | 3.51 | % | NM | NM | 3.48 | % | ||||||||
Year Ended December 31, 2012 | ||||||||||||||
Republic | ||||||||||||||
Traditional | Mortgage | Processing | Total | |||||||||||
(dollars in thousands) | Banking | Banking | Group | Company | ||||||||||
Net interest income | $ | 114,831 | $ | 400 | $ | 45,424 | $ | 160,655 | ||||||
Provision for loan losses | 8,167 | — | 6,876 | 15,043 | ||||||||||
Net refund transfer fees | — | — | 78,304 | 78,304 | ||||||||||
Mortgage banking income | — | 8,447 | — | 8,447 | ||||||||||
Net gain on sales, calls and impairment of securities | 56 | — | — | 56 | ||||||||||
Bargain purchase gain - TCB | 27,614 | — | — | 27,614 | ||||||||||
Bargain purchase gain - FCB | 27,824 | — | — | 27,824 | ||||||||||
Other non interest income | 22,574 | 39 | 220 | 22,833 | ||||||||||
Total non interest income | 78,068 | 8,486 | 78,524 | 165,078 | ||||||||||
Total non interest expenses | 100,380 | 3,842 | 22,523 | 126,745 | ||||||||||
Income before income tax expense | 84,352 | 5,044 | 94,549 | 183,945 | ||||||||||
Income tax expense | 29,178 | 1,765 | 33,663 | 64,606 | ||||||||||
Net income | $ | 55,174 | $ | 3,279 | $ | 60,886 | $ | 119,339 | ||||||
Segment end of period total assets | $ | 3,371,934 | $ | 15,752 | $ | 6,713 | $ | 3,394,399 | ||||||
Net interest margin | 3.64 | % | NM | NM | 4.82 | % | ||||||||
Year Ended December 31, 2011 | ||||||||||||||
Republic | ||||||||||||||
Traditional | Mortgage | Processing | Total | |||||||||||
(dollars in thousands) | Banking | Banking | Group | Company | ||||||||||
Net interest income | $ | 105,346 | $ | 401 | $ | 59,113 | $ | 164,860 | ||||||
Provision for loan losses | 6,406 | — | 11,560 | 17,966 | ||||||||||
Net refund transfer fees | — | — | 88,195 | 88,195 | ||||||||||
Mortgage banking income | — | 3,899 | — | 3,899 | ||||||||||
Net gain on sales, calls and impairment of securities | 2,006 | — | — | 2,006 | ||||||||||
Other non interest income | 25,089 | 78 | 357 | 25,524 | ||||||||||
Total non interest income | 27,095 | 3,977 | 88,552 | 119,624 | ||||||||||
Total non interest expenses | 87,389 | 3,849 | 31,083 | 122,321 | ||||||||||
Income before income tax expense | 38,646 | 529 | 105,022 | 144,197 | ||||||||||
Income tax expense | 12,183 | 185 | 37,680 | 50,048 | ||||||||||
Net income | $ | 26,463 | $ | 344 | $ | 67,342 | $ | 94,149 | ||||||
Segment end of period total assets | $ | 3,099,426 | $ | 10,880 | $ | 309,685 | $ | 3,419,991 | ||||||
Net interest margin | 3.55 | % | NM | NM | 5.09 | % | ||||||||
Segment assets are reported as of the respective period ends while income and margin data are reported for the respective periods. | ||||||||||||||
NM — Not Meaningful |
SUMMARY_OF_QUARTERLY_FINANCIAL1
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | |||||||||||||
Summary of consolidated quarterly financial data | ' | |||||||||||||
Fourth | Third | Second | First | |||||||||||
($ in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter(1) | ||||||||||
2013:00:00 | ||||||||||||||
Interest income | $ | 32,039 | $ | 34,009 | $ | 34,119 | $ | 34,401 | ||||||
Interest expense | 5,300 | 5,470 | 5,352 | 5,271 | ||||||||||
Net interest income | 26,739 | 28,539 | 28,767 | 29,130 | ||||||||||
Provision for loan losses | 503 | 2,200 | 905 | (625 | ) | |||||||||
Net interest income after provision | 26,236 | 26,339 | 27,862 | 29,755 | ||||||||||
Non interest income | 7,122 | 7,539 | 10,783 | 22,525 | ||||||||||
Non interest expenses (3) | 30,337 | 26,325 | 29,699 | 31,302 | ||||||||||
Income before income tax expense | 3,021 | 7,553 | 8,946 | 20,978 | ||||||||||
Income tax expense (4) | 1,676 | 2,950 | 2,827 | 7,622 | ||||||||||
Net income | 1,345 | 4,603 | 6,119 | 13,356 | ||||||||||
Basic earnings per share: | ||||||||||||||
Class A Common Stock | 0.07 | 0.22 | 0.3 | 0.64 | ||||||||||
Class B Common Stock | 0.05 | 0.21 | 0.28 | 0.63 | ||||||||||
Diluted earnings per share: | ||||||||||||||
Class A Common Stock | 0.07 | 0.22 | 0.3 | 0.64 | ||||||||||
Class B Common Stock | 0.05 | 0.21 | 0.28 | 0.62 | ||||||||||
Dividends declared per common share: | ||||||||||||||
Class A Common Stock | 0.176 | 0.176 | 0.176 | 0.165 | ||||||||||
Class B Common Stock | 0.16 | 0.16 | 0.16 | 0.15 | ||||||||||
Fourth | Third | Second | First | |||||||||||
($ in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter(1) | ||||||||||
2012:00:00 | ||||||||||||||
Interest income | $ | 35,930 | $ | 34,128 | $ | 33,814 | $ | 79,587 | ||||||
Interest expense | 5,379 | 5,556 | 5,502 | 6,367 | ||||||||||
Net interest income | 30,551 | 28,572 | 28,312 | 73,220 | ||||||||||
Provision for loan losses | 1,324 | 2,083 | 466 | 11,170 | ||||||||||
Net interest income after provision | 29,227 | 26,489 | 27,846 | 62,050 | ||||||||||
Non interest income (2) | 9,338 | 34,845 | 14,086 | 106,809 | ||||||||||
Non interest expenses (3) | 28,379 | 29,762 | 27,451 | 41,153 | ||||||||||
Income before income tax expense | 10,186 | 31,572 | 14,481 | 127,706 | ||||||||||
Income tax expense | 3,565 | 10,904 | 4,903 | 45,234 | ||||||||||
Net income | 6,621 | 20,668 | 9,578 | 82,472 | ||||||||||
Basic earnings per share: | ||||||||||||||
Class A Common Stock | 0.33 | 0.99 | 0.46 | 3.94 | ||||||||||
Class B Common Stock | 0.21 | 0.97 | 0.44 | 3.92 | ||||||||||
Diluted earnings per share: | ||||||||||||||
Class A Common Stock | 0.33 | 0.98 | 0.46 | 3.92 | ||||||||||
Class B Common Stock | 0.21 | 0.97 | 0.44 | 3.9 | ||||||||||
Dividends declared per common share: | ||||||||||||||
Class A Common Stock (4) | 1.265 | 0.165 | 0.165 | 0.154 | ||||||||||
Class B Common Stock (4) | 1.15 | 0.15 | 0.15 | 0.14 | ||||||||||
(1) - The first quarters of 2013 and 2012 were significantly impacted by the TRS operating division. | ||||||||||||||
For additional discussion regarding TRS, a division of Republic Processing Group, see the following sections: | ||||||||||||||
· Part I Item 1A “Risk Factors” | ||||||||||||||
· Republic Processing Group | ||||||||||||||
· Part II Item 8 “Financial Statements and Supplementary Data” | ||||||||||||||
· Footnote 1 “Summary of Significant Accounting Policies” | ||||||||||||||
· Footnote 4 “Loans and Allowance for Loan Losses” | ||||||||||||||
· Footnote 22 “Segment Information” | ||||||||||||||
(2) - Non-interest income: | ||||||||||||||
During the first quarter of 2012, the Company recorded a pre-tax bargain purchase gain of $27.9 million as a result of the TCB acquisition. The bargain purchase gain was realized because the overall price paid by RB&T was substantially less than the fair value of the TCB assets acquired and liabilities assumed in the transaction. | ||||||||||||||
During the third quarter of 2012, the Bank recorded a pre-tax bargain purchase gain of $27.1 million as a result of the FCB acquisition. The bargain purchase gain was realized because the overall price paid by RB&T was substantially less than the fair value of the FCB assets acquired and liabilities assumed in the transaction. | ||||||||||||||
(3) - Non-interest expenses: | ||||||||||||||
During the fourth quarter of 2013, the TRS division of the RPG segment incurred $1.4 million in expenses associated with the conclusions of RPG’s third party arbitration with JHI. | ||||||||||||||
During the third quarter of 2013, the Bank reversed $3.3 million of 2013 incentive compensation accruals based on revised payout estimates. | ||||||||||||||
During the first quarter 2012, the Bank experienced increases of $939,000 to non-interest expenses as a result of the TCB acquisition. | ||||||||||||||
During the first quarter of 2012, the Bank prepaid $81 million in FHLB advances that were originally scheduled to mature between October 2012 and May 2013. These advances had a weighted average cost of 3.56%. The Bank recognized a $2.4 million early termination penalty during the first quarter of 2012 in connection with this prepayment. | ||||||||||||||
During the third quarter of 2012, the Bank experienced increases of approximately $3.0 million as a result of the 2012 acquisitions. | ||||||||||||||
(4) — Dividends declared per common share: | ||||||||||||||
During the fourth quarter of 2012, the Bank declared a special one-time cash dividend of $1.10 per share on Class A Common Stock and $1.00 per share on Class B Common Stock. | ||||||||||||||
OTHER_COMPREHENSIVE_INCOME_Tab
OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
OTHER COMPREHENSIVE INCOME | ' | ||||||||||
Summary of OCI components and related tax effects | ' | ||||||||||
Years Ended December 31, (in thousands) | 2013 | 2012 | 2011 | ||||||||
Available for Sale Securities: | |||||||||||
Unrealized gains (losses) on securities available for sale | $ | (4,747 | ) | $ | 1,043 | $ | (893 | ) | |||
Change in unrealized gain (losses) on securities available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings | 742 | 1,279 | (145 | ) | |||||||
Reclassification adjustment for gains recognized in earnings | — | (56 | ) | (2,285 | ) | ||||||
Reclassification adjustment for other-than-temporary impairment recognized in earnings | — | — | 279 | ||||||||
Net unrealized gains (losses) | (4,005 | ) | 2,266 | (3,044 | ) | ||||||
Tax effect | 1,403 | (793 | ) | 1,065 | |||||||
Net of tax | (2,602 | ) | 1,473 | (1,979 | ) | ||||||
Cash Flow Hedges: | |||||||||||
Change in fair value of derivatives used for cash flow hedges | 170 | — | — | ||||||||
Reclassification adjustment for gains realized in income | — | — | — | ||||||||
Net unrealized gains | 170 | — | — | ||||||||
Tax effect | (59 | ) | — | — | |||||||
Net of tax | 111 | — | — | ||||||||
$ | (2,491 | ) | $ | 1,473 | $ | (1,979 | ) | ||||
Summary of the accumulated OCI balances, net of tax | ' | ||||||||||
(in thousands) | Balance at | Current Year | Balance at | ||||||||
December 31, | Change | December 31, | |||||||||
2012 | 2013 | ||||||||||
Unrealized gains (losses) on securities available for sale | $ | 5,610 | $ | (3,084 | ) | $ | 2,526 | ||||
Unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings | 2 | 482 | 484 | ||||||||
Unrealized gains on cash flow hedge | — | 111 | 111 | ||||||||
$ | 5,612 | $ | (2,491 | ) | $ | 3,121 | |||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
segment | Subsequent event | Sole banking center in Palm Harbor, Florida | Sole banking center in Minneapolis Minnesota | Perimeter banking center in Lexington Kentucky | Perimeter banking center in Lexington Kentucky | Metropolitan Louisville | Central Kentucky | Elizabethtown | Frankfort | Georgetown | Lexington | Shelbyville | Northern Kentucky | Covington | Florence | Independence | Western Kentucky | Owensboro | Southern Indiana | Floyds Knobs | Jeffersonville | New Albany | Metropolitan Tampa, Florida | Metropolitan Cincinnati, Ohio | Metropolitan Nashville, Tennessee | Metropolitan Minneapolis, Minnesota | |
item | item | Subsequent event | Subsequent event | item | Subsequent event | item | item | item | item | item | item | item | item | item | item | item | item | item | item | item | item | item | item | item | item | item | |
item | item | item | |||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis of presentation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of banking centers | 45 | 42 | ' | ' | 34 | ' | 20 | 9 | 1 | 1 | 1 | 5 | 1 | 3 | 1 | 1 | 1 | 2 | 2 | 3 | 1 | 1 | 1 | 4 | 1 | 2 | 1 |
Number of banking centers closed | ' | ' | 1 | 1 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 1 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2013 | Nov. 30, 2013 | |
Sole banking center in Palm Harbor, Florida | Sole banking center in Minneapolis Minnesota | Perimeter banking center in Lexington Kentucky | |
Basis of presentation | ' | ' | ' |
Regulatory notice period to close banking center | '90 days | '90 days | '90 days |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Mortgage Banking Activities | ' | ' | ' |
Initial amortization period of MSRs | '7 years | ' | ' |
Loan servicing income | $2,107 | $2,181 | $2,828 |
Impairment in MSR portfolio | $0 | $345 | ' |
Warehouse lines of credit | Geographic concentration risk | California | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Percentage of concentration risk | 44.00% | ' | ' |
Net income | Geographic concentration risk | RPG | TRS division | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Percentage of concentration risk | 9.00% | 38.00% | 52.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) | 12 Months Ended |
Dec. 31, 2013 | |
Loans | ' |
Delinquency period for interest income on mortgage and commercial loans to be discontinued | '80 days |
Minimum | ' |
Loans | ' |
Selling cost for collateral dependent loans expressed as a percentage of fair value of the underlying collateral | 10.00% |
Other Real Estate Owned | ' |
Selling cost for OREO expressed as a percentage of each property's fair value | 10.00% |
Maximum | ' |
Loans | ' |
Selling cost for collateral dependent loans expressed as a percentage of fair value of the underlying collateral | 13.00% |
Other Real Estate Owned | ' |
Selling cost for OREO expressed as a percentage of each property's fair value | 13.00% |
Consumer and credit card loans | ' |
Loans | ' |
Minimum period for charging off outstanding loan | '90 days |
Residential mortgage loans and home equity loans | Minimum | ' |
Loans | ' |
Period for past due loans for updating collateral values | '80 days |
Residential mortgage loans and home equity loans | Maximum | ' |
Loans | ' |
Period for past due loans for updating collateral values | '180 days |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Bank Owned Life Insurance ("BOLI") | ' |
Purchase of bank owned life insurance | $25,000 |
Buildings and improvements | Minimum | ' |
Premises and equipment, net | ' |
Estimated useful lives | '25 years |
Buildings and improvements | Maximum | ' |
Premises and equipment, net | ' |
Estimated useful lives | '39 years |
Furniture, fixtures and equipment | Minimum | ' |
Premises and equipment, net | ' |
Estimated useful lives | '3 years |
Furniture, fixtures and equipment | Maximum | ' |
Premises and equipment, net | ' |
Estimated useful lives | '10 years |
Leasehold improvements | Minimum | ' |
Premises and equipment, net | ' |
Estimated useful lives | '3 years |
Leasehold improvements | Maximum | ' |
Premises and equipment, net | ' |
Estimated useful lives | '5 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill and other intangible assets | ' | ' | ' |
Goodwill | $10,168 | $10,168 | $10,168 |
Amortization expense of other intangible assets held | $510 | $171 | $59 |
Core deposit | Minimum | ' | ' | ' |
Goodwill and other intangible assets | ' | ' | ' |
Estimated useful lives | '2 years | ' | ' |
Core deposit | Maximum | ' | ' | ' |
Goodwill and other intangible assets | ' | ' | ' |
Estimated useful lives | '10 years | ' | ' |
Acquired customer relationship intangible assets | Minimum | ' | ' | ' |
Goodwill and other intangible assets | ' | ' | ' |
Estimated useful lives | '2 years | ' | ' |
Acquired customer relationship intangible assets | Maximum | ' | ' | ' |
Goodwill and other intangible assets | ' | ' | ' |
Estimated useful lives | '10 years | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 7) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 07, 2012 | Mar. 31, 2013 | |
segment | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | ||
First Quarter 2013 Recast Adjustments | First Quarter 2013 Recast Adjustments | |||||||
Restrictions on Cash and Cash Equivalents | ' | ' | ' | ' | ' | ' | ' | ' |
Required reserve balances by the Federal Reserve Bank | $168,000 | $744,000 | ' | ' | ' | ' | ' | ' |
Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of stock dividend in excess of which are reported by transferring the par value of the stock issued from retained earnings to common stock | 20.00% | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage of stock dividend which are reported by transferring the par value of the stock issued from retained earnings to common stock and additional paid in capital | 20.00% | ' | ' | ' | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' | ' | ' | ' | ' |
Number of lines of business | 3 | ' | ' | ' | ' | ' | ' | ' |
Adjustments to the FCB acquired assets | ' | ' | ' | ' | ' | ' | ' | ' |
Bargain purchase gain | ' | ' | $712,000 | $27,100,000 | $1,324,000 | $27,824,000 | $1,324,000 | $1,300,000 |
2012_FDICASSISTED_ACQUISITIONS2
2012 FDIC-ASSISTED ACQUISITIONS (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2012 | Feb. 15, 2012 | Jan. 30, 2012 | Jan. 27, 2012 | Mar. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Sep. 07, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | |
item | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | |
As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 Recast Adjustments | Deposits: Non interest-bearing | Deposits: Non interest-bearing | Deposits: Interest-bearing | Deposits: Interest-bearing | Deposits: Interest-bearing | Total deposits | Total deposits | Total deposits | Loans to be repurchased by the FDIC, net of discount | Loans to be repurchased by the FDIC, net of discount | Loans to be repurchased by the FDIC, net of discount | Loans | Loans | Loans | Loans | Federal Home Loan Bank stock, at cost | Federal Home Loan Bank stock, at cost | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 & 2013 Recast Adjustments | Deposits: Non interest-bearing | Deposits: Non interest-bearing | Deposits: Interest-bearing | Deposits: Interest-bearing | Deposits: Interest-bearing | Total deposits | Total deposits | Total deposits | Federal Home Loan Bank advances | Federal Home Loan Bank advances | Federal Home Loan Bank advances | Loans | Loans | Loans | Loans | Federal Home Loan Bank stock, at cost | Federal Home Loan Bank stock, at cost | |||||||||||||
As Previously Reported - Contractual Amount | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 Recast Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Contractual Amount | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 & 2013 Recast Adjustments | As Previously Reported - Contractual Amount | |||||||||||||||||||||||||||||||
2012 FDIC-ASSISTED ACQUISITIONS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of failed institutions acquired in FDIC-assisted transactions | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fdic - assisted acquisitions of failed banks | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional assets acquired | ' | ' | ' | ' | ' | ' | ' | $221,126,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $214,866,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments received from FDIC | 921,247,000 | 14,000,000 | 771,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bargain purchase gain | ' | ' | ' | ' | 27,900,000 | -285,000 | 27,614,000 | ' | 27,899,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 712,000 | 27,100,000 | 1,324,000 | 27,824,000 | ' | 27,112,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets acquired: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | 61,852,000 | ' | ' | ' | 61,943,000 | -89,000 | -2,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,524,000 | ' | ' | ' | ' | 10,524,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities available for sale | ' | ' | ' | 42,646,000 | ' | ' | ' | 42,646,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,002,000 | ' | ' | ' | ' | 12,002,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,003,000 | 19,800,000 | -2,797,000 | 57,276,000 | 79,112,000 | -22,666,000 | 830,000 | 2,491,000 | 2,491,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130,351,000 | 171,744,000 | -44,214,000 | 2,821,000 | 407,000 | 407,000 |
Other real estate owned | ' | ' | ' | 9,717,000 | ' | ' | ' | 14,189,000 | -3,359,000 | -1,113,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,186,000 | ' | ' | ' | ' | 19,360,000 | -8,389,000 | -785,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Core deposit intangible | ' | ' | ' | ' | ' | ' | 64,000 | ' | 64,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 559,000 | ' | ' | 559,000 | ' | 559,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount | ' | ' | ' | ' | ' | ' | ' | -56,970,000 | 56,970,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -79,412,000 | 79,412,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FDIC settlement receivable | ' | ' | ' | 784,545,000 | ' | ' | ' | -784,545,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 64,326,000 | ' | ' | ' | ' | -64,326,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets and accrued interest receivable | ' | ' | ' | 885,000 | ' | ' | ' | 945,000 | -60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 734,000 | ' | ' | ' | ' | 829,000 | -95,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets acquired | ' | ' | ' | 976,479,000 | ' | ' | ' | 948,701,000 | 28,063,000 | -285,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 229,089,000 | ' | ' | ' | ' | 199,780,000 | 27,273,000 | 2,036,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities assumed: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,754,000 | 19,754,000 | 927,695,000 | 927,641,000 | 54,000 | 947,449,000 | 947,395,000 | 54,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,197,000 | 7,197,000 | 189,054,000 | 189,057,000 | -3,000 | 196,251,000 | 196,254,000 | -3,000 | 3,065,000 | 3,002,000 | 63,000 | ' | ' | ' | ' | ' | ' |
Accrued income taxes payable | ' | ' | ' | 9,888,000 | ' | ' | ' | ' | 9,988,000 | -100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,418,000 | ' | ' | ' | ' | ' | 9,706,000 | 712,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other liabilities and accrued interest payable | ' | ' | ' | 1,416,000 | ' | ' | ' | 1,306,000 | 110,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 625,000 | ' | ' | ' | ' | 524,000 | 101,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities assumed | ' | ' | ' | 958,753,000 | ' | ' | ' | 948,701,000 | 10,152,000 | -100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 210,359,000 | ' | ' | ' | ' | 199,780,000 | 9,867,000 | 712,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bargain purchase gain, net of taxes | ' | ' | ' | 17,726,000 | ' | ' | ' | ' | 17,911,000 | -185,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,730,000 | ' | ' | ' | ' | ' | 17,406,000 | 1,324,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities assumed and equity | ' | ' | ' | $976,479,000 | ' | ' | ' | $948,701,000 | $28,063,000 | ($285,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $229,089,000 | ' | ' | ' | ' | $199,780,000 | $27,273,000 | $2,036,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2012_FDICASSISTED_ACQUISITIONS3
2012 FDIC-ASSISTED ACQUISITIONS (Details 2) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2013 | Mar. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Sep. 07, 2012 | Oct. 31, 2013 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Mar. 31, 2013 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | |
Sole banking center in Minneapolis Minnesota | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | |||
As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | Second Quarter 2012 Recast Adjustments | Third Quarter 2012 Recast Adjustments | As Recasted - Fair Value Adjustments | Deposits | Deposits | Deposits | Deposits | Loans | Loans | Loans | Loans | Loans | Loans | Discount for loans to be repurchased by the FDIC | Discount for loans to be repurchased by the FDIC | Discount for loans to be repurchased by the FDIC | Discount for loans to be repurchased by the FDIC | Sole banking center in Minneapolis Minnesota | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | Fourth Quarter 2012 Recast Adjustments | First Quarter 2013 Recast Adjustments | First Quarter 2013 Recast Adjustments | As Recasted - Fair Value Adjustments | Deposits | Deposits | Deposits | Deposits | Federal Home Loan Bank advances | Federal Home Loan Bank advances | Federal Home Loan Bank advances | Federal Home Loan Bank advances | Loans | Loans | Loans | Loans | Loans | Loans | ||||||||||||||
As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | As Recasted - Fair Value Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | Second Quarter 2012 Recast Adjustments | Third Quarter 2012 Recast Adjustments | As Recasted - Fair Value Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | As Recasted - Fair Value Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | As Recasted - Fair Value Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | As Recasted - Fair Value Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | Fourth Quarter 2012 Recast Adjustments | First Quarter 2013 Recast Adjustments | As Recasted - Fair Value Adjustments | ||||||||||||||||||||||||||||||||
Fdic - assisted acquisitions of failed banks | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets acquired, at contractual amount | ' | ' | ' | ' | ' | ' | ' | $221,126,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $214,866,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities assumed, at contractual amount | ' | ' | ' | ' | ' | ' | ' | -948,701,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -199,780,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net liabilities assumed per the P&A Agreement | ' | ' | ' | ' | ' | ' | ' | -727,575,000 | -29,071,000 | -96,000 | -189,000 | -29,356,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,086,000 | -52,300,000 | 712,000 | 1,324,000 | ' | -50,264,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual discount | ' | ' | ' | ' | ' | ' | ' | -56,970,000 | 56,970,000 | ' | ' | 56,970,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -79,412,000 | 79,412,000 | ' | ' | ' | 79,412,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net receivable from the FDIC | ' | ' | ' | ' | ' | ' | -784,545,000 | 784,545,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -64,326,000 | ' | 64,326,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value adjustments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57,276,000 | 79,112,000 | -22,666,000 | 919,000 | -89,000 | -21,836,000 | 17,003,000 | 19,800,000 | -2,797,000 | -2,797,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130,351,000 | 171,744,000 | -44,214,000 | 423,000 | 2,398,000 | -41,393,000 |
Other real estate owned | ' | ' | ' | ' | ' | ' | 9,717,000 | 14,189,000 | -3,359,000 | -1,000,000 | -113,000 | -4,472,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,186,000 | ' | 19,360,000 | -8,389,000 | 289,000 | -1,074,000 | ' | -9,174,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Core deposit intangible | ' | ' | ' | ' | ' | 64,000 | ' | ' | 64,000 | ' | ' | 64,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 559,000 | ' | ' | 559,000 | ' | ' | ' | ' | 559,000 | ' | ' | ' | 559,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -947,449,000 | -947,395,000 | -54,000 | -54,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -196,251,000 | -196,254,000 | 3,000 | 3,000 | -3,065,000 | -3,002,000 | -63,000 | -63,000 | ' | ' | ' | ' | ' | ' |
Other assets and accrued interest receivable | ' | ' | ' | ' | ' | ' | 885,000 | 945,000 | -60,000 | ' | ' | -60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 734,000 | ' | 829,000 | -95,000 | ' | ' | ' | -95,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
All other | ' | ' | ' | ' | ' | ' | ' | ' | -199,000 | -15,000 | 13,000 | -201,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -101,000 | ' | ' | ' | -101,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value adjustments | ' | ' | ' | ' | ' | ' | ' | -727,575,000 | -29,071,000 | -96,000 | -189,000 | -29,356,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,086,000 | -52,300,000 | 712,000 | 1,324,000 | ' | -50,264,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount | ' | ' | ' | ' | ' | ' | ' | -56,970,000 | 56,970,000 | ' | ' | 56,970,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -79,412,000 | 79,412,000 | ' | ' | ' | 79,412,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bargain purchase gain, pre-tax | ' | ' | ' | 27,900,000 | -285,000 | 27,614,000 | ' | ' | 27,899,000 | -96,000 | -189,000 | 27,614,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 712,000 | 27,100,000 | 1,324,000 | 27,824,000 | ' | ' | ' | ' | 27,112,000 | 712,000 | 1,324,000 | 1,300,000 | 29,148,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of processing equipment and fixed assets | ' | ' | ' | ' | 573,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 328,000 | ' | ' | 328,000 | 233,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition and integration costs | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated short-term retention bonuses for certain former TCB employees and short-term incentive bonuses for existing RB&T employees | ' | ' | ' | ' | ' | 724,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 380,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated professional and consulting fees | ' | ' | ' | ' | ' | 642,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 710,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount for a long-term incentive program | ' | ' | ' | ' | ' | 471,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 199,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Profitability target period | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory notice period to close banking center | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net gain on securities sold or called | $56,000 | $2,285,000 | ' | $56,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2012_FDICASSISTED_ACQUISITIONS4
2012 FDIC-ASSISTED ACQUISITIONS (Details 3) (USD $) | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Dec. 31, 2012 | Jan. 27, 2012 | Dec. 31, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 |
Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | |
Total purchased loans | Total purchased loans | Loans to be repurchased by the FDIC, net of discount | Loans to be repurchased by the FDIC, net of discount | Loans to be repurchased by the FDIC, net of discount | Loans to be repurchased by the FDIC, net of discount | Loans to be repurchased by the FDIC, net of discount | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | Loans | |
As Previously Reported - Contractual Amount | As Previously Reported - Contractual Amount | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | As Previously Reported - Fair Value Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 Recast Adjustments | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Construction & Land Development | Construction & Land Development | Construction & Land Development | Construction & Land Development | Commercial & Industrial | Commercial & Industrial | Commercial & Industrial | Commercial & Industrial | Home equity | Home equity | Home equity | Home equity | Consumer: Credit cards | Consumer: Credit cards | Consumer: Credit cards | Consumer: Overdrafts | Consumer: Overdrafts | Consumer: Overdrafts | Consumer: Other consumer | Consumer: Other consumer | Consumer: Other consumer | Consumer: Other consumer | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 & 2013 Recast Adjustments | Residential real estate | Residential real estate | Residential real estate | Residential real estate | Commercial real estate | Commercial real estate | Commercial real estate | Commercial real estate | Construction & Land Development | Construction & Land Development | Construction & Land Development | Construction & Land Development | Commercial & Industrial | Commercial & Industrial | Commercial & Industrial | Commercial & Industrial | Home equity | Home equity | Home equity | Consumer: Overdrafts | Consumer: Overdrafts | Consumer: Other consumer | Consumer: Other consumer | Consumer: Other consumer | Consumer: Other consumer | |||||
As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 Recast Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 Recast Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 Recast Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 Recast Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 Recast Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 Recast Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 & 2013 Recast Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 & 2013 Recast Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 & 2013 Recast Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 & 2013 Recast Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | As Previously Reported - Contractual Amount | As Previously Reported - Contractual Amount | As Previously Reported - Fair Value Adjustments | 2012 & 2013 Recast Adjustments | |||||||||||||||||||||||||||||||
Fdic - assisted acquisitions of failed banks | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial assets | $74,000,000 | $99,000,000 | $17,003,000 | ' | $19,800,000 | ' | ($2,797,000) | $57,276,000 | $79,112,000 | ($22,666,000) | $830,000 | $18,860,000 | $22,693,000 | ($4,076,000) | $243,000 | $13,663,000 | $18,646,000 | ($6,971,000) | $1,988,000 | $10,224,000 | $14,877,000 | ($2,681,000) | ($1,972,000) | $6,781,000 | $13,224,000 | ($6,939,000) | $496,000 | $5,638,000 | $6,220,000 | ($606,000) | $24,000 | $586,000 | $608,000 | ($22,000) | $51,000 | $672,000 | ($621,000) | $1,473,000 | $2,172,000 | ($750,000) | $51,000 | $130,351,000 | $171,744,000 | ($44,214,000) | $2,821,000 | $38,955,000 | $48,409,000 | ($9,634,000) | $180,000 | $68,085,000 | $82,161,000 | ($12,330,000) | ($1,746,000) | $9,052,000 | $14,918,000 | ($6,182,000) | $316,000 | $13,535,000 | $25,475,000 | ($16,060,000) | $4,120,000 | $401,000 | $404,000 | ($3,000) | $6,000 | $6,000 | $317,000 | $371,000 | ($5,000) | ($49,000) |
Loans repurchased by the FDIC | ' | ' | ' | $20,000,000 | ' | $3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2012_FDICASSISTED_ACQUISITIONS5
2012 FDIC-ASSISTED ACQUISITIONS (Details 4) (USD $) | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 |
In Thousands, unless otherwise specified | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") |
As Previously Reported | 2012 Recast Adjustments | As Previously Reported | 2012 & 2013 Recast Adjustments | |||
Purchased loans that are within the scope of ASC Topic 310-30 | ' | ' | ' | ' | ' | ' |
Contractually-required principal and interest payments | $52,278 | $52,278 | ' | $121,153 | $116,940 | $4,213 |
Non-accretable difference | -20,405 | -21,308 | 903 | -28,883 | -33,523 | 4,640 |
Cash flows expected to be collected | 31,873 | 30,970 | 903 | 92,270 | 83,417 | 8,853 |
Accretable difference | -498 | -425 | -73 | -4,646 | -2,827 | -1,819 |
Fair value of loans | $31,375 | $30,545 | $830 | $87,624 | $80,590 | $7,034 |
2012_FDICASSISTED_ACQUISITIONS6
2012 FDIC-ASSISTED ACQUISITIONS (Details 5) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Rollforward of the accretable discount on purchased loans within the scope of ASC Topic 310-30 | ' | ' |
Balance at the beginning of the period | ($3,095) | ($3,410) |
Transfers between non-accretable and accretable | -6,455 | ' |
Accreted/(Amortized) into interest income on loans, including loan fees | 6,093 | 315 |
Balance at the end of the period | -3,457 | -3,095 |
Tennessee Commerce Bank ("TCB") | ' | ' |
Rollforward of the accretable discount on purchased loans within the scope of ASC Topic 310-30 | ' | ' |
Balance at the beginning of the period | -319 | -498 |
Transfers between non-accretable and accretable | -2,771 | ' |
Accreted/(Amortized) into interest income on loans, including loan fees | 1,926 | 179 |
Balance at the end of the period | -1,164 | -319 |
First Commercial Bank ("FCB") | ' | ' |
Rollforward of the accretable discount on purchased loans within the scope of ASC Topic 310-30 | ' | ' |
Balance at the beginning of the period | -2,776 | -2,912 |
Transfers between non-accretable and accretable | -3,684 | ' |
Accreted/(Amortized) into interest income on loans, including loan fees | 4,167 | 136 |
Balance at the end of the period | ($2,293) | ($2,776) |
2012_FDICASSISTED_ACQUISITIONS7
2012 FDIC-ASSISTED ACQUISITIONS (Details 6) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2012 | Dec. 31, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Dec. 31, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | |
Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | ||
RB&T | Demand | Demand | Money market accounts | Money market accounts | Savings | Savings | Individual retirement accounts | Individual retirement accounts | Time deposits, $100,000 and over | Time deposits, $100,000 and over | Other certificates of deposit | Other certificates of deposit | Other certificates of deposit | Brokered certificates of deposit | Brokered certificates of deposit | Brokered certificates of deposit | Total interest-bearing deposits | Total interest-bearing deposits | Total interest-bearing deposits | Total non interest-bearing deposits | Total non interest-bearing deposits | Total deposits | Total deposits | Total deposits | Demand | Demand | Money market accounts | Money market accounts | Individual retirement accounts | Individual retirement accounts | Time deposits, $100,000 and over | Time deposits, $100,000 and over | Other certificates of deposit | Other certificates of deposit | Brokered certificates of deposit | Brokered certificates of deposit | Brokered certificates of deposit | Total interest-bearing deposits | Total interest-bearing deposits | Total interest-bearing deposits | Total non interest-bearing deposits | Total non interest-bearing deposits | Total deposits | Total deposits | Total deposits | ||||
Contractual Amount | Contractual Amount | Contractual Amount | Contractual Amount | Contractual Amount | Contractual Amount | Fair Value Adjustments | Contractual Amount | Fair Value Adjustments | Contractual Amount | Fair Value Adjustments | Contractual Amount | Contractual Amount | Fair Value Adjustments | Contractual Amount | Contractual Amount | Contractual Amount | Contractual Amount | Contractual Amount | Contractual Amount | Fair Value Adjustments | Contractual Amount | Fair Value Adjustments | Contractual Amount | Contractual Amount | Fair Value Adjustments | ||||||||||||||||||||||||
Fdic - assisted acquisitions of failed banks | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period from acquisition date for option to disclose repricing of acquired deposits portfolio | ' | ' | '7 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Composition of deposits assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposits assumed | ' | ' | ' | $3,190,000 | $3,190,000 | $11,338,000 | $11,338,000 | $91,859,000 | $91,859,000 | $15,486,000 | $15,486,000 | $278,825,000 | $278,825,000 | $108,017,000 | $108,003,000 | $14,000 | $418,980,000 | $418,940,000 | $40,000 | $927,695,000 | $927,641,000 | $54,000 | $19,754,000 | $19,754,000 | $947,449,000 | $947,395,000 | $54,000 | ' | $4,003,000 | $4,003,000 | $38,187,000 | $38,187,000 | $16,780,000 | $16,780,000 | $14,740,000 | $14,740,000 | $62,033,000 | $62,033,000 | $53,311,000 | $53,314,000 | ($3,000) | $189,054,000 | $189,057,000 | ($3,000) | $7,197,000 | $7,197,000 | $196,251,000 | $196,254,000 | ($3,000) |
Additional loss in excess of fair value adjustment related to payment of Federal Home Loan Bank (FHLB) advances | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition and integration costs | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated short-term retention bonuses for certain former FCB employees and short-term incentive bonuses for existing RB&T employees | ' | 724,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 380,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated professional and consulting fees | ' | 642,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 710,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount for a long-term incentive program | ' | $471,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $199,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Profitability target period | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Securities available for sale: | ' | ' | ' |
Gross Amortized Cost | $428,263 | $429,611 | ' |
Gross Unrealized Gains | 6,720 | 8,771 | ' |
Gross Unrealized Losses | -2,090 | -136 | ' |
Fair Value | 432,893 | 438,246 | ' |
Amount of floating rate corporate bonds purchased | 194,527 | 61,717 | 598,495 |
U.S. Treasury securities and U.S. Government agencies | ' | ' | ' |
Securities available for sale: | ' | ' | ' |
Gross Amortized Cost | 97,157 | 38,931 | ' |
Gross Unrealized Gains | 409 | 547 | ' |
Gross Unrealized Losses | -101 | -6 | ' |
Fair Value | 97,465 | 39,472 | ' |
Private label mortgage backed security | ' | ' | ' |
Securities available for sale: | ' | ' | ' |
Gross Amortized Cost | 4,740 | 5,684 | ' |
Gross Unrealized Gains | 745 | 3 | ' |
Fair Value | 5,485 | 5,687 | ' |
Mortgage backed securities - residential | ' | ' | ' |
Securities available for sale: | ' | ' | ' |
Gross Amortized Cost | 146,087 | 190,569 | ' |
Gross Unrealized Gains | 4,288 | 6,641 | ' |
Gross Unrealized Losses | -288 | ' | ' |
Fair Value | 150,087 | 197,210 | ' |
Collateralized mortgage obligations | ' | ' | ' |
Securities available for sale: | ' | ' | ' |
Gross Amortized Cost | 164,264 | 194,427 | ' |
Gross Unrealized Gains | 1,228 | 1,580 | ' |
Gross Unrealized Losses | -1,546 | -130 | ' |
Fair Value | 163,946 | 195,877 | ' |
Mutual fund | ' | ' | ' |
Securities available for sale: | ' | ' | ' |
Gross Amortized Cost | 1,000 | ' | ' |
Gross Unrealized Losses | -5 | ' | ' |
Fair Value | 995 | ' | ' |
Corporate bonds | ' | ' | ' |
Securities available for sale: | ' | ' | ' |
Gross Amortized Cost | 15,015 | ' | ' |
Gross Unrealized Gains | 50 | ' | ' |
Gross Unrealized Losses | -150 | ' | ' |
Fair Value | 14,915 | ' | ' |
Amount of floating rate corporate bonds purchased | $20,000 | ' | ' |
Weighted average yield (as a percent) | 1.36% | ' | ' |
Weighted average life | '7 years | ' | ' |
Corporate bonds as a percentage of bank's investment portfolio | 4.00% | ' | ' |
INVESTMENT_SECURITIES_Details_
INVESTMENT SECURITIES (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Securities held to maturity: | ' | ' |
Carrying Value | $50,644 | $46,010 |
Gross Unrecognized Gains | 437 | 406 |
Gross Unrecognized Losses | -313 | ' |
Fair Value | 50,768 | 46,416 |
U.S. Treasury securities and U.S. Government agencies | ' | ' |
Securities held to maturity: | ' | ' |
Carrying Value | 2,311 | 4,388 |
Gross Unrecognized Gains | 7 | 27 |
Gross Unrecognized Losses | -13 | ' |
Fair Value | 2,305 | 4,415 |
Mortgage backed securities - residential | ' | ' |
Securities held to maturity: | ' | ' |
Carrying Value | 420 | 827 |
Gross Unrecognized Gains | 43 | 63 |
Fair Value | 463 | 890 |
Collateralized mortgage obligations | ' | ' |
Securities held to maturity: | ' | ' |
Carrying Value | 42,913 | 40,795 |
Gross Unrecognized Gains | 387 | 316 |
Gross Unrecognized Losses | -184 | ' |
Fair Value | 43,116 | 41,111 |
Corporate bonds | ' | ' |
Securities held to maturity: | ' | ' |
Carrying Value | 5,000 | ' |
Gross Unrecognized Losses | -116 | -116 |
Fair Value | $4,884 | ' |
INVESTMENT_SECURITIES_Details_1
INVESTMENT SECURITIES (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||
Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2012 | |
US Government Agencies Debt Securities | US Government Agencies Debt Securities | Mortgage backed securities | Mortgage backed securities | Mortgage backed securities | Tennessee Commerce Bank ("TCB") | ||||||||
item | |||||||||||||
INVESTMENT SECURITIES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of holdings of securities of any one issuer, other than the U.S. Government and its agencies | 10.00% | ' | ' | ' | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' |
Sales of available for sale securities | $0 | $0 | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
Gross losses on available for sale securities | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' |
Sales of securities available for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of available for securities sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 |
Amortized cost of available for sale securities sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 2,000,000 | 132,000,000 | 35,000,000 |
Pre-tax gain of available for sale securities | ' | ' | ' | ' | ' | 56,000 | 2,300,000 | ' | ' | 77,000 | 112,000 | 1,900,000 | 53,000 |
Pre-tax gain from accretion of unamortized discount on available for sale securities called | ' | ' | ' | ' | ' | ' | ' | 3,000 | 188,000 | ' | ' | ' | ' |
Amortized cost of available for sale securities called | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | 24,000,000 | ' | ' | ' | ' |
Tax provision related to Bank's realized gains | ' | ' | ' | ' | $0 | $20,000 | $800,000 | ' | ' | ' | ' | ' | ' |
INVESTMENT_SECURITIES_Details_2
INVESTMENT SECURITIES (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Securities available for Sale - Amortized Cost | ' | ' |
Due in one year or less | $24,395 | ' |
Due from one year to five years | 70,259 | ' |
Due from five years to ten years | 17,518 | ' |
Total securities | 428,263 | ' |
Securities available for Sale - Fair Value | ' | ' |
Due in one year or less | 24,760 | ' |
Due from one year to five years | 70,237 | ' |
Due from five years to ten years | 17,383 | ' |
Total securities | 432,893 | ' |
Securities held to maturity - Carrying Value | ' | ' |
Due in one year or less | 508 | ' |
Due from one year to five years | 1,803 | ' |
Due from five years to ten years | 5,000 | ' |
Total securities | 50,644 | 46,010 |
Securities held to maturity - Fair Value | ' | ' |
Due in one year or less | 512 | ' |
Due from one year to five years | 1,793 | ' |
Due from five years to ten years | 4,884 | ' |
Fair Value | 50,768 | 46,416 |
Private label mortgage backed security | ' | ' |
Securities available for Sale - Amortized Cost | ' | ' |
Securities not due at a single maturity date | 4,740 | ' |
Securities available for Sale - Fair Value | ' | ' |
Securities not due at a single maturity date | 5,485 | ' |
Mortgage backed securities - residential | ' | ' |
Securities available for Sale - Amortized Cost | ' | ' |
Securities not due at a single maturity date | 146,087 | ' |
Securities available for Sale - Fair Value | ' | ' |
Securities not due at a single maturity date | 150,087 | ' |
Securities held to maturity - Carrying Value | ' | ' |
Securities not due at a single maturity date | 420 | ' |
Total securities | 420 | 827 |
Securities held to maturity - Fair Value | ' | ' |
Securities not due at a single maturity date | 463 | ' |
Fair Value | 463 | 890 |
Collateralized mortgage obligations | ' | ' |
Securities available for Sale - Amortized Cost | ' | ' |
Securities not due at a single maturity date | 164,264 | ' |
Securities available for Sale - Fair Value | ' | ' |
Securities not due at a single maturity date | 163,946 | ' |
Securities held to maturity - Carrying Value | ' | ' |
Securities not due at a single maturity date | 42,913 | ' |
Total securities | 42,913 | 40,795 |
Securities held to maturity - Fair Value | ' | ' |
Securities not due at a single maturity date | 43,116 | ' |
Fair Value | 43,116 | 41,111 |
Mutual fund | ' | ' |
Securities available for Sale - Amortized Cost | ' | ' |
Securities not due at a single maturity date | 1,000 | ' |
Securities available for Sale - Fair Value | ' | ' |
Securities not due at a single maturity date | $995 | ' |
INVESTMENT_SECURITIES_Details_3
INVESTMENT SECURITIES (Details 5) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Available for sale | ' | ' |
Less than 12 months Fair Value | $130,307 | $24,096 |
Less than 12 months Unrealized Losses | -2,090 | -136 |
Total Fair Value | 130,307 | 24,096 |
Total Unrealized Losses | -2,090 | -136 |
Held to maturity | ' | ' |
Less than 12 months Fair Value | 24,091 | ' |
Less than 12 months Unrealized Losses | -313 | ' |
Total Fair Value | 24,091 | ' |
Total Unrealized Losses | -313 | ' |
Number of securities held | 147 | 153 |
Number of securities held in an unrealized loss position | 27 | 7 |
Carrying value | 432,893 | 438,246 |
U.S. Treasury securities and U.S. Government agencies | ' | ' |
Available for sale | ' | ' |
Less than 12 months Fair Value | 44,041 | 3,588 |
Less than 12 months Unrealized Losses | -101 | -6 |
Total Fair Value | 44,041 | 3,588 |
Total Unrealized Losses | -101 | -6 |
Held to maturity | ' | ' |
Less than 12 months Fair Value | 521 | ' |
Less than 12 months Unrealized Losses | -13 | ' |
Total Fair Value | 521 | ' |
Total Unrealized Losses | -13 | ' |
Carrying value | 97,465 | 39,472 |
Mortgage backed securities - residential | ' | ' |
Available for sale | ' | ' |
Less than 12 months Fair Value | 19,494 | ' |
Less than 12 months Unrealized Losses | -288 | ' |
Total Fair Value | 19,494 | ' |
Total Unrealized Losses | -288 | ' |
Held to maturity | ' | ' |
Carrying value | 150,087 | 197,210 |
Collateralized mortgage obligations | ' | ' |
Available for sale | ' | ' |
Less than 12 months Fair Value | 55,927 | 20,508 |
Less than 12 months Unrealized Losses | -1,546 | -130 |
Total Fair Value | 55,927 | 20,508 |
Total Unrealized Losses | -1,546 | -130 |
Held to maturity | ' | ' |
Less than 12 months Fair Value | 18,686 | ' |
Less than 12 months Unrealized Losses | -184 | ' |
Total Fair Value | 18,686 | ' |
Total Unrealized Losses | -184 | ' |
Carrying value | 163,946 | 195,877 |
Mutual fund | ' | ' |
Available for sale | ' | ' |
Less than 12 months Fair Value | 995 | ' |
Less than 12 months Unrealized Losses | -5 | ' |
Total Fair Value | 995 | ' |
Total Unrealized Losses | -5 | ' |
Held to maturity | ' | ' |
Carrying value | 995 | ' |
Corporate bonds | ' | ' |
Available for sale | ' | ' |
Less than 12 months Fair Value | 9,850 | ' |
Less than 12 months Unrealized Losses | -150 | ' |
Total Fair Value | 9,850 | ' |
Total Unrealized Losses | -150 | ' |
Held to maturity | ' | ' |
Less than 12 months Fair Value | 4,884 | ' |
Less than 12 months Unrealized Losses | -116 | ' |
Total Fair Value | 4,884 | ' |
Total Unrealized Losses | -116 | -116 |
Carrying value | 14,915 | ' |
Private label mortgage backed security | ' | ' |
Held to maturity | ' | ' |
Carrying value | $5,485 | $5,687 |
Estimated average life | '4 years | ' |
INVESTMENT_SECURITIES_Details_4
INVESTMENT SECURITIES (Details 6) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Rollforward of the Bank's private label mortgage backed security credit losses recognized in earnings | ' | ' | ' |
Additional impairment charge related to credit losses | ' | ' | $279 |
Private label mortgage backed security | ' | ' | ' |
Rollforward of the Bank's private label mortgage backed security credit losses recognized in earnings | ' | ' | ' |
Balance, beginning of year | 2,142 | 3,455 | 9,757 |
Reversal of interest reserve | ' | ' | -169 |
Recovery of losses previously recorded | -201 | ' | ' |
Realized pass through of actual losses | ' | -1,313 | -6,412 |
Amounts related to credit loss for which an other-than temporary impairment was not previously recognized | ' | ' | 279 |
Balance, end of year | 1,941 | 2,142 | 3,455 |
Additional impairment charge related to credit losses | $4,700 | ' | ' |
INVESTMENT_SECURITIES_Details_5
INVESTMENT SECURITIES (Details 7) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
INVESTMENT SECURITIES | ' | ' |
Carrying amount | $224,693 | $334,560 |
Fair value | $224,989 | $334,843 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Loans disclosures | ' | ' | ' | ' |
Total loans | $2,589,792 | $2,650,197 | ' | ' |
Less: Allowance for loan losses | 23,026 | 23,729 | 24,063 | 23,079 |
Loans, net | 2,566,766 | 2,626,468 | ' | ' |
Tennessee Commerce Bank ("TCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 28,765 | 30,964 | ' | ' |
First Commercial Bank ("FCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 67,697 | 107,652 | ' | ' |
TCB and FCB acquisitions | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 96,462 | 138,616 | ' | ' |
Residential Real Estate | Tennessee Commerce Bank ("TCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 10,191 | 12,270 | ' | ' |
Residential Real Estate | First Commercial Bank ("FCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 19,554 | 32,459 | ' | ' |
Residential Real Estate | TCB and FCB acquisitions | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 29,745 | 44,729 | ' | ' |
Residential Real Estate - Owner Occupied | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 1,097,795 | 1,145,495 | ' | ' |
Less: Allowance for loan losses | 7,816 | 7,006 | 5,212 | ' |
Residential Real Estate - Non Owner Occupied | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 110,809 | 74,539 | ' | ' |
Less: Allowance for loan losses | 1,023 | 1,049 | 1,142 | ' |
Commercial real estate | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 773,173 | 714,642 | ' | ' |
Less: Allowance for loan losses | 8,309 | 8,843 | 7,724 | ' |
Commercial real estate | Tennessee Commerce Bank ("TCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 13,398 | 8,015 | ' | ' |
Commercial real estate | First Commercial Bank ("FCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 43,167 | 61,758 | ' | ' |
Commercial real estate | TCB and FCB acquisitions | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 56,565 | 69,773 | ' | ' |
Commercial real estate - purchased whole loans | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 34,186 | 33,531 | ' | ' |
Less: Allowance for loan losses | 34 | 34 | ' | ' |
Construction & Land Development | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 44,351 | 68,214 | ' | ' |
Less: Allowance for loan losses | 1,296 | 2,769 | 3,042 | ' |
Construction & Land Development | Tennessee Commerce Bank ("TCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 295 | 4,235 | ' | ' |
Construction & Land Development | First Commercial Bank ("FCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 1,614 | 3,301 | ' | ' |
Construction & Land Development | TCB and FCB acquisitions | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 1,909 | 7,536 | ' | ' |
Commercial & Industrial | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 127,763 | 130,681 | ' | ' |
Less: Allowance for loan losses | 1,089 | 580 | 1,025 | ' |
Commercial & Industrial | Tennessee Commerce Bank ("TCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 329 | 1,284 | ' | ' |
Commercial & Industrial | First Commercial Bank ("FCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 2,867 | 9,405 | ' | ' |
Commercial & Industrial | TCB and FCB acquisitions | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 3,196 | 10,689 | ' | ' |
Warehouse lines of credit | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 149,576 | 216,576 | ' | ' |
Less: Allowance for loan losses | 449 | 541 | 104 | ' |
Home equity | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 226,782 | 241,607 | ' | ' |
Less: Allowance for loan losses | 2,396 | 2,348 | 2,984 | ' |
Home equity | Tennessee Commerce Bank ("TCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 4,270 | 4,183 | ' | ' |
Home equity | First Commercial Bank ("FCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 366 | 385 | ' | ' |
Home equity | TCB and FCB acquisitions | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 4,636 | 4,568 | ' | ' |
Consumer: Credit cards | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 9,030 | 8,716 | ' | ' |
Less: Allowance for loan losses | 289 | 210 | 503 | ' |
Consumer: Credit cards | Tennessee Commerce Bank ("TCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 205 | 321 | ' | ' |
Consumer: Credit cards | TCB and FCB acquisitions | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 205 | 321 | ' | ' |
Consumer: Overdrafts | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 944 | 955 | ' | ' |
Less: Allowance for loan losses | 199 | 198 | 135 | ' |
Consumer: Overdrafts | Tennessee Commerce Bank ("TCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 4 | 1 | ' | ' |
Consumer: Overdrafts | First Commercial Bank ("FCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | ' | 11 | ' | ' |
Consumer: Overdrafts | TCB and FCB acquisitions | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 4 | 12 | ' | ' |
Consumer: Other consumer | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 15,383 | 15,241 | ' | ' |
Less: Allowance for loan losses | 126 | 151 | 227 | ' |
Consumer: Other consumer | Tennessee Commerce Bank ("TCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 73 | 655 | ' | ' |
Consumer: Other consumer | First Commercial Bank ("FCB") | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | 129 | 333 | ' | ' |
Consumer: Other consumer | TCB and FCB acquisitions | ' | ' | ' | ' |
Loans disclosures | ' | ' | ' | ' |
Total loans | $202 | $988 | ' | ' |
LOANS_AND_ALLOWANCE_FOR_LOAN_L3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 27, 2012 | Jan. 27, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 07, 2012 | Sep. 07, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | TCB and FCB acquisitions | TCB and FCB acquisitions | ||
Loans | Loans | Loans | Loans | |||||||||
Contractual Amount | Contractual Amount | |||||||||||
2012 FDIC-Assisted Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial assets | ' | ' | ' | ' | $57,276 | $79,112 | ' | ' | $130,351 | $171,744 | ' | ' |
Contractually-required principal | ' | ' | 34,406 | 42,188 | ' | ' | 85,184 | 139,156 | ' | ' | 119,590 | 181,344 |
Non-accretable difference | ' | ' | -3,884 | -10,393 | ' | ' | -15,194 | -28,870 | ' | ' | -19,078 | -39,263 |
Accretable difference | ' | ' | -1,757 | -831 | ' | ' | -2,293 | -2,634 | ' | ' | -4,050 | -3,465 |
Total carrying value of loans | $2,589,792 | $2,650,197 | $28,765 | $30,964 | ' | ' | $67,697 | $107,652 | ' | ' | $96,462 | $138,616 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Risk category of rated loans | ' | ' |
Minimum value above which loans are validated by SLC | $2,000,000 | ' |
Minimum value above which loans are reviewed by SAC | 100,000 | ' |
Minimum outstanding lending relationships, above which loans are analyzed by the Bank's internal loan review department | 4,000,000 | ' |
Loans | 2,589,792,000 | 2,650,197,000 |
Maximum loan value for non rated loans | 100,000 | 100,000 |
Maximum number of days past due for loans to be non rated | '80 days | '80 days |
Loans modified by troubled debt restructurings during the period | 17,041,000 | 41,999,000 |
Residential real estate | ' | ' |
Risk category of rated loans | ' | ' |
Minimum value above which loans are reviewed by SAC | 750,000 | ' |
Residential Real Estate - Owner Occupied | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 1,097,795,000 | 1,145,495,000 |
Residential Real Estate - Non Owner Occupied | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 110,809,000 | 74,539,000 |
Commercial real estate | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 773,173,000 | 714,642,000 |
Commercial real estate - purchased whole loans | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 34,186,000 | 33,531,000 |
Construction & Land Development | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 44,351,000 | 68,214,000 |
Commercial & Industrial | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 127,763,000 | 130,681,000 |
Warehouse lines of credit | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 149,576,000 | 216,576,000 |
Home equity | ' | ' |
Risk category of rated loans | ' | ' |
Minimum value above which loans are reviewed by SAC | 100,000 | ' |
Minimum number of days past due, for loans to be reviewed by SAC | '80 days | ' |
Loans | 226,782,000 | 241,607,000 |
Consumer: Credit cards | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 9,030,000 | 8,716,000 |
Consumer: Overdrafts | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 944,000 | 955,000 |
Consumer: Other consumer | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 15,383,000 | 15,241,000 |
Pass | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 1,057,609,000 | 1,057,464,000 |
Pass | Commercial real estate | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 709,610,000 | 624,631,000 |
Pass | Commercial real estate - purchased whole loans | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 34,186,000 | 33,531,000 |
Pass | Construction & Land Development | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 40,591,000 | 61,556,000 |
Pass | Commercial & Industrial | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 123,646,000 | 121,170,000 |
Pass | Warehouse lines of credit | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 149,576,000 | 216,576,000 |
Special Mention | ' | ' |
Risk category of rated loans | ' | ' |
Minimum outstanding lending relationships, above which loans are analyzed by the Bank's internal loan review department | 1,000,000 | ' |
Loans | 40,167,000 | 50,625,000 |
Loans modified by troubled debt restructurings during the period | 1,000,000 | 4,000,000 |
Special Mention | Residential Real Estate - Owner Occupied | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 27,431,000 | 26,031,000 |
Special Mention | Residential Real Estate - Non Owner Occupied | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 919,000 | 2,616,000 |
Special Mention | Commercial real estate | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 11,125,000 | 17,216,000 |
Special Mention | Construction & Land Development | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 128,000 | 1,088,000 |
Special Mention | Commercial & Industrial | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 296,000 | 2,639,000 |
Special Mention | Home equity | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 250,000 | 648,000 |
Special Mention | Consumer: Other consumer | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 18,000 | 387,000 |
Substandard | ' | ' |
Risk category of rated loans | ' | ' |
Minimum outstanding lending relationships, above which loans are analyzed by the Bank's internal loan review department | 1,000,000 | ' |
Loans | 44,083,000 | 49,352,000 |
Loans modified by troubled debt restructurings during the period | 6,000,000 | 11,000,000 |
Substandard | Residential Real Estate - Owner Occupied | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 10,994,000 | 8,700,000 |
Substandard | Residential Real Estate - Non Owner Occupied | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 1,292,000 | 3,350,000 |
Substandard | Commercial real estate | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 25,296,000 | 28,433,000 |
Substandard | Construction & Land Development | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 2,386,000 | 3,878,000 |
Substandard | Commercial & Industrial | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 2,035,000 | 2,592,000 |
Substandard | Home equity | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 2,014,000 | 2,346,000 |
Substandard | Consumer: Other consumer | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 66,000 | 53,000 |
Doubtful / Loss | ' | ' |
Risk category of rated loans | ' | ' |
Minimum outstanding lending relationships, above which loans are analyzed by the Bank's internal loan review department | 1,000,000 | ' |
Purchased Credit Impaired Loans - Group 1 | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 40,731,000 | 72,978,000 |
Purchased Credit Impaired Loans - Group 1 | Residential Real Estate - Owner Occupied | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 2,810,000 | 2,413,000 |
Purchased Credit Impaired Loans - Group 1 | Residential Real Estate - Non Owner Occupied | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 7,936,000 | 20,190,000 |
Purchased Credit Impaired Loans - Group 1 | Commercial real estate | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 27,142,000 | 44,362,000 |
Purchased Credit Impaired Loans - Group 1 | Construction & Land Development | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 1,246,000 | 1,692,000 |
Purchased Credit Impaired Loans - Group 1 | Commercial & Industrial | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 1,564,000 | 4,280,000 |
Purchased Credit Impaired Loans - Group 1 | Consumer: Other consumer | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 33,000 | 41,000 |
Purchased Credit Impaired Loans - Substandard | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 222,000 | ' |
Purchased Credit Impaired Loans - Substandard | Commercial & Industrial | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 222,000 | ' |
Rated Loans | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 1,182,812,000 | 1,230,419,000 |
Rated Loans | Residential Real Estate - Owner Occupied | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 41,235,000 | 37,144,000 |
Rated Loans | Residential Real Estate - Non Owner Occupied | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 10,147,000 | 26,156,000 |
Rated Loans | Commercial real estate | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 773,173,000 | 714,642,000 |
Rated Loans | Commercial real estate - purchased whole loans | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 34,186,000 | 33,531,000 |
Rated Loans | Construction & Land Development | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 44,351,000 | 68,214,000 |
Rated Loans | Commercial & Industrial | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 127,763,000 | 130,681,000 |
Rated Loans | Warehouse lines of credit | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 149,576,000 | 216,576,000 |
Rated Loans | Home equity | ' | ' |
Risk category of rated loans | ' | ' |
Loans | 2,264,000 | 2,994,000 |
Rated Loans | Consumer: Other consumer | ' | ' |
Risk category of rated loans | ' | ' |
Loans | $117,000 | $481,000 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses at beginning year | ' | ' | ' | $23,729 | ' | ' | ' | $24,063 | $23,729 | $24,063 | $23,079 |
Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | -6,185 | -20,985 | -22,793 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 2,499 | 5,608 | 5,811 |
Net loan charge offs | ' | ' | ' | ' | ' | ' | ' | ' | -3,686 | -15,377 | -16,982 |
Provision for loan losses | 503 | 2,200 | 905 | -625 | 1,324 | 2,083 | 466 | 11,170 | 2,983 | 15,043 | 17,966 |
Allowance for loan losses at end of year | 23,026 | ' | ' | ' | 23,729 | ' | ' | ' | 23,026 | 23,729 | 24,063 |
Refund Anticipation Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | -11,097 | -15,484 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 845 | 4,221 | 3,924 |
Net loan charge offs | ' | ' | ' | ' | ' | ' | ' | ' | 845 | -6,876 | -11,560 |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | -845 | 6,876 | 11,560 |
Traditional Banking | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | -6,185 | -9,888 | -7,309 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 1,654 | 1,387 | 1,887 |
Net loan charge offs | ' | ' | ' | ' | ' | ' | ' | ' | -4,531 | -8,501 | -5,422 |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | $3,828 | $8,167 | $6,406 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses at beginning year | ' | ' | ' | $23,729,000 | ' | ' | ' | $24,063,000 | $23,729,000 | $24,063,000 | $23,079,000 |
Provision for loan losses | 503,000 | 2,200,000 | 905,000 | -625,000 | 1,324,000 | 2,083,000 | 466,000 | 11,170,000 | 2,983,000 | 15,043,000 | 17,966,000 |
Loans charged off | ' | ' | ' | ' | ' | ' | ' | ' | -6,185,000 | -20,985,000 | -22,793,000 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 2,499,000 | 5,608,000 | ' |
Allowance for loan losses at end of year | 23,026,000 | ' | ' | ' | 23,729,000 | ' | ' | ' | 23,026,000 | 23,729,000 | 24,063,000 |
Loans | 2,566,766,000 | ' | ' | ' | 2,626,468,000 | ' | ' | ' | 2,566,766,000 | 2,626,468,000 | ' |
Residential Real Estate - Owner Occupied | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses at beginning year | ' | ' | ' | 7,006,000 | ' | ' | ' | 5,212,000 | 7,006,000 | 5,212,000 | ' |
Allocation of previously unallocated allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,117,000 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 2,411,000 | 3,549,000 | ' |
Loans charged off | ' | ' | ' | ' | ' | ' | ' | ' | -1,886,000 | -3,128,000 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 285,000 | 256,000 | ' |
Allowance for loan losses at end of year | 7,816,000 | ' | ' | ' | 7,006,000 | ' | ' | ' | 7,816,000 | 7,006,000 | ' |
Residential Real Estate - Non Owner Occupied | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses at beginning year | ' | ' | ' | 1,049,000 | ' | ' | ' | 1,142,000 | 1,049,000 | 1,142,000 | ' |
Allocation of previously unallocated allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 146,000 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 43,000 | 144,000 | ' |
Loans charged off | ' | ' | ' | ' | ' | ' | ' | ' | -241,000 | -520,000 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 172,000 | 137,000 | ' |
Allowance for loan losses at end of year | 1,023,000 | ' | ' | ' | 1,049,000 | ' | ' | ' | 1,023,000 | 1,049,000 | ' |
Commercial Real Estate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses at beginning year | ' | ' | ' | 8,843,000 | ' | ' | ' | 7,724,000 | 8,843,000 | 7,724,000 | ' |
Allocation of previously unallocated allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,000 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 539,000 | 2,015,000 | ' |
Loans charged off | ' | ' | ' | ' | ' | ' | ' | ' | -1,190,000 | -1,033,000 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 117,000 | 90,000 | ' |
Allowance for loan losses at end of year | 8,309,000 | ' | ' | ' | 8,843,000 | ' | ' | ' | 8,309,000 | 8,843,000 | ' |
Commercial real estate - purchased whole loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,000 | ' |
Allowance for loan losses at end of year | 34,000 | ' | ' | ' | 34,000 | ' | ' | ' | 34,000 | 34,000 | ' |
Construction & Land Development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses at beginning year | ' | ' | ' | 2,769,000 | ' | ' | ' | 3,042,000 | 2,769,000 | 3,042,000 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | -902,000 | 1,545,000 | ' |
Loans charged off | ' | ' | ' | ' | ' | ' | ' | ' | -619,000 | -1,922,000 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 48,000 | 104,000 | ' |
Allowance for loan losses at end of year | 1,296,000 | ' | ' | ' | 2,769,000 | ' | ' | ' | 1,296,000 | 2,769,000 | ' |
Commercial & Industrial | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses at beginning year | ' | ' | ' | 580,000 | ' | ' | ' | 1,025,000 | 580,000 | 1,025,000 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 876,000 | -294,000 | ' |
Loans charged off | ' | ' | ' | ' | ' | ' | ' | ' | -466,000 | -176,000 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 99,000 | 25,000 | ' |
Allowance for loan losses at end of year | 1,089,000 | ' | ' | ' | 580,000 | ' | ' | ' | 1,089,000 | 580,000 | ' |
Warehouse Lines of Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses at beginning year | ' | ' | ' | 541,000 | ' | ' | ' | 104,000 | 541,000 | 104,000 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | -92,000 | 437,000 | ' |
Allowance for loan losses at end of year | 449,000 | ' | ' | ' | 541,000 | ' | ' | ' | 449,000 | 541,000 | ' |
Home Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses at beginning year | ' | ' | ' | 2,348,000 | ' | ' | ' | 2,984,000 | 2,348,000 | 2,984,000 | ' |
Allocation of previously unallocated allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 536,000 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 515,000 | 988,000 | ' |
Loans charged off | ' | ' | ' | ' | ' | ' | ' | ' | -632,000 | -2,252,000 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 165,000 | 92,000 | ' |
Allowance for loan losses at end of year | 2,396,000 | ' | ' | ' | 2,348,000 | ' | ' | ' | 2,396,000 | 2,348,000 | ' |
Refund Anticipation Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | -845,000 | 6,876,000 | 11,560,000 |
Loans charged off | ' | ' | ' | ' | ' | ' | ' | ' | ' | -11,097,000 | -15,484,000 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 845,000 | 4,221,000 | ' |
Loans | ' | ' | ' | ' | 796,015,000 | ' | ' | ' | ' | 796,015,000 | 1,038,862,000 |
Consumer: Credit cards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses at beginning year | ' | ' | ' | 210,000 | ' | ' | ' | 503,000 | 210,000 | 503,000 | ' |
Allocation of previously unallocated allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,000 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 202,000 | -253,000 | ' |
Loans charged off | ' | ' | ' | ' | ' | ' | ' | ' | -142,000 | -123,000 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 19,000 | 36,000 | ' |
Allowance for loan losses at end of year | 289,000 | ' | ' | ' | 210,000 | ' | ' | ' | 289,000 | 210,000 | ' |
Consumer: Overdrafts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses at beginning year | ' | ' | ' | 198,000 | ' | ' | ' | 135,000 | 198,000 | 135,000 | ' |
Allocation of previously unallocated allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,000 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 191,000 | 92,000 | ' |
Loans charged off | ' | ' | ' | ' | ' | ' | ' | ' | -601,000 | -468,000 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 411,000 | 422,000 | ' |
Allowance for loan losses at end of year | 199,000 | ' | ' | ' | 198,000 | ' | ' | ' | 199,000 | 198,000 | ' |
Consumer: Other consumer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses at beginning year | ' | ' | ' | 151,000 | ' | ' | ' | 227,000 | 151,000 | 227,000 | ' |
Allocation of previously unallocated allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,000 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 45,000 | -90,000 | ' |
Loans charged off | ' | ' | ' | ' | ' | ' | ' | ' | -408,000 | -266,000 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 338,000 | 225,000 | ' |
Allowance for loan losses at end of year | 126,000 | ' | ' | ' | 151,000 | ' | ' | ' | 126,000 | 151,000 | ' |
Unallocated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses at beginning year | ' | ' | ' | ' | ' | ' | ' | 1,965,000 | ' | 1,965,000 | ' |
Allocation of previously unallocated allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,965,000 | ' |
Subprime | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses rollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans | 58,000,000 | ' | ' | ' | 66,000,000 | ' | ' | ' | 58,000,000 | 66,000,000 | ' |
Loans originated for Community Reinvestment Act ("CRA") purposes | $17,000,000 | ' | ' | ' | $19,000,000 | ' | ' | ' | $17,000,000 | $19,000,000 | ' |
LOANS_AND_ALLOWANCE_FOR_LOAN_L7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Non-performing loans and non-performing assets disclosures | ' | ' | ' |
Loans on non-accrual status | $19,104 | $18,506 | $23,306 |
Loans past due 90 days or more and still on accrual | 1,974 | 3,173 | ' |
Total non-performing loans | 21,078 | 21,679 | 23,306 |
Other real estate owned | 17,102 | 26,203 | 10,956 |
Total non-performing assets | 38,180 | 47,882 | 34,262 |
Credit Quality Ratios | ' | ' | ' |
Non-performing loans to total loans (as percent) | 0.81% | 0.82% | 1.02% |
Non-performing assets to total loans (including OREO) (as percent) | 1.46% | 1.79% | 1.49% |
Non-performing assets to total assets (as percent) | 1.13% | 1.41% | 1.00% |
TCB and FCB acquisitions | ' | ' | ' |
Non-performing loans and non-performing assets disclosures | ' | ' | ' |
Loans on non-accrual status | 290 | ' | ' |
Loans past due 90 days or more and still on accrual | 1,974 | 3,173 | ' |
Total non-performing loans | 2,264 | 3,173 | ' |
Other real estate owned | 9,463 | 14,498 | ' |
Total non-performing assets | 11,727 | 17,671 | ' |
Credit Quality Ratios | ' | ' | ' |
Non-performing loans to total loans (as percent) | 2.35% | 2.29% | ' |
Non-performing assets to total loans (including OREO) (as percent) | 11.07% | 11.54% | ' |
Tennessee Commerce Bank ("TCB") | ' | ' | ' |
Non-performing loans and non-performing assets disclosures | ' | ' | ' |
Loans on non-accrual status | 290 | ' | ' |
Loans past due 90 days or more and still on accrual | 334 | 801 | ' |
Total non-performing loans | 624 | 801 | ' |
Other real estate owned | 371 | 2,100 | ' |
Total non-performing assets | 995 | 2,901 | ' |
First Commercial Bank ("FCB") | ' | ' | ' |
Non-performing loans and non-performing assets disclosures | ' | ' | ' |
Loans past due 90 days or more and still on accrual | 1,640 | 2,372 | ' |
Total non-performing loans | 1,640 | 2,372 | ' |
Other real estate owned | 9,092 | 12,398 | ' |
Total non-performing assets | $10,732 | $14,770 | ' |
LOANS_AND_ALLOWANCE_FOR_LOAN_L8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 7) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | |||
Aging or recorded investments in loans | ' | ' | ' |
Non-Accrual Loan | $19,104 | $18,506 | $23,306 |
Loans Past Due 90 Days or More and Still Accruing Interest | 1,974 | 3,173 | ' |
Number of consecutive months payments received before non-accrual loans returned to accrual status (in months) | 6 | ' | ' |
Residential Real Estate - Owner Occupied | ' | ' | ' |
Aging or recorded investments in loans | ' | ' | ' |
Non-Accrual Loan | 8,538 | 9,298 | 12,183 |
Loans Past Due 90 Days or More and Still Accruing Interest | 673 | 730 | ' |
Residential Real Estate - Non Owner Occupied | ' | ' | ' |
Aging or recorded investments in loans | ' | ' | ' |
Non-Accrual Loan | 1,279 | 1,376 | 1,565 |
Commercial real estate | ' | ' | ' |
Aging or recorded investments in loans | ' | ' | ' |
Non-Accrual Loan | 7,643 | 3,756 | 3,032 |
Loans Past Due 90 Days or More and Still Accruing Interest | ' | 712 | ' |
Construction & Land Development | ' | ' | ' |
Aging or recorded investments in loans | ' | ' | ' |
Non-Accrual Loan | 97 | 1,777 | 2,521 |
Loans Past Due 90 Days or More and Still Accruing Interest | 70 | 531 | ' |
Commercial & Industrial | ' | ' | ' |
Aging or recorded investments in loans | ' | ' | ' |
Non-Accrual Loan | 327 | 334 | 373 |
Loans Past Due 90 Days or More and Still Accruing Interest | 1,231 | 1,200 | ' |
Home equity | ' | ' | ' |
Aging or recorded investments in loans | ' | ' | ' |
Non-Accrual Loan | 1,128 | 1,868 | 3,603 |
Consumer: Other consumer | ' | ' | ' |
Aging or recorded investments in loans | ' | ' | ' |
Non-Accrual Loan | $92 | $97 | $29 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L9
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 8) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | $4,335 | $4,292 |
60 - 89 Days Delinquent | 2,165 | 4,804 |
Greater than 90 Days Delinquent | 9,723 | 11,748 |
Total Loans Delinquent | 16,223 | 20,844 |
Total Loans Not Delinquent | 2,573,569 | 2,629,353 |
Total carrying value of loans | 2,589,792 | 2,650,197 |
30 - 59 days delinquent to total loans (as a percent) | 0.17% | 0.16% |
60 - 89 days delinquent to total loans (as a percent) | 0.08% | 0.18% |
Greater than 90 days delinquent to total loans (as a percent) | 0.38% | 0.44% |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 0.63% | 0.78% |
TCB and FCB acquisitions | ' | ' |
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | 968 | 246 |
60 - 89 Days Delinquent | 562 | 2,548 |
Greater than 90 Days Delinquent | 1,974 | 3,173 |
Total Loans Delinquent | 3,504 | 5,967 |
Total Loans Not Delinquent | 92,958 | 132,649 |
Total carrying value of loans | 96,462 | 138,616 |
30 - 59 days delinquent to total loans (as a percent) | 1.00% | 0.18% |
60 - 89 days delinquent to total loans (as a percent) | 0.58% | 1.84% |
Greater than 90 days delinquent to total loans (as a percent) | 2.05% | 2.29% |
Delinquent acquired bank loans to total acquired bank loans (as a percent) | 3.63% | 4.31% |
Residential Real Estate | TCB and FCB acquisitions | ' | ' |
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | 213 | 159 |
60 - 89 Days Delinquent | 178 | 1,430 |
Greater than 90 Days Delinquent | 673 | 729 |
Total Loans Delinquent | 1,064 | 2,318 |
Total Loans Not Delinquent | 28,681 | 42,411 |
Total carrying value of loans | 29,745 | 44,729 |
Residential Real Estate - Owner Occupied | ' | ' |
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | 1,956 | 2,210 |
60 - 89 Days Delinquent | 733 | 1,978 |
Greater than 90 Days Delinquent | 3,668 | 4,712 |
Total Loans Delinquent | 6,357 | 8,900 |
Total Loans Not Delinquent | 1,091,438 | 1,136,595 |
Total carrying value of loans | 1,097,795 | 1,145,495 |
Residential Real Estate - Non Owner Occupied | ' | ' |
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | 195 | 907 |
60 - 89 Days Delinquent | 967 | 1,128 |
Greater than 90 Days Delinquent | 131 | 864 |
Total Loans Delinquent | 1,293 | 2,899 |
Total Loans Not Delinquent | 109,516 | 71,640 |
Total carrying value of loans | 110,809 | 74,539 |
Commercial real estate | ' | ' |
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | 874 | 103 |
60 - 89 Days Delinquent | 384 | 486 |
Greater than 90 Days Delinquent | 3,940 | 2,051 |
Total Loans Delinquent | 5,198 | 2,640 |
Total Loans Not Delinquent | 767,975 | 712,002 |
Total carrying value of loans | 773,173 | 714,642 |
Commercial real estate | TCB and FCB acquisitions | ' | ' |
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | 241 | ' |
60 - 89 Days Delinquent | 384 | 165 |
Greater than 90 Days Delinquent | ' | 698 |
Total Loans Delinquent | 625 | 863 |
Total Loans Not Delinquent | 55,940 | 68,910 |
Total carrying value of loans | 56,565 | 69,773 |
Commercial real estate - purchased whole loans | ' | ' |
Aging or recorded investments in loans | ' | ' |
Total Loans Not Delinquent | 34,186 | 33,531 |
Total carrying value of loans | 34,186 | 33,531 |
Construction & Land Development | ' | ' |
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | 332 | ' |
60 - 89 Days Delinquent | ' | 194 |
Greater than 90 Days Delinquent | 167 | 1,930 |
Total Loans Delinquent | 499 | 2,124 |
Total Loans Not Delinquent | 43,852 | 66,090 |
Total carrying value of loans | 44,351 | 68,214 |
Construction & Land Development | TCB and FCB acquisitions | ' | ' |
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | 334 | ' |
60 - 89 Days Delinquent | ' | 194 |
Greater than 90 Days Delinquent | 70 | 531 |
Total Loans Delinquent | 404 | 725 |
Total Loans Not Delinquent | 1,505 | 6,811 |
Total carrying value of loans | 1,909 | 7,536 |
Commercial & Industrial | ' | ' |
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | ' | 222 |
60 - 89 Days Delinquent | ' | 733 |
Greater than 90 Days Delinquent | 1,415 | 1,307 |
Total Loans Delinquent | 1,415 | 2,262 |
Total Loans Not Delinquent | 126,348 | 128,419 |
Total carrying value of loans | 127,763 | 130,681 |
Commercial & Industrial | TCB and FCB acquisitions | ' | ' |
Aging or recorded investments in loans | ' | ' |
60 - 89 Days Delinquent | ' | 732 |
Greater than 90 Days Delinquent | 1,231 | 1,215 |
Total Loans Delinquent | 1,231 | 1,947 |
Total Loans Not Delinquent | 1,965 | 8,742 |
Total carrying value of loans | 3,196 | 10,689 |
Warehouse lines of credit | ' | ' |
Aging or recorded investments in loans | ' | ' |
Total Loans Not Delinquent | 149,576 | 216,576 |
Total carrying value of loans | 149,576 | 216,576 |
Home Equity | ' | ' |
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | 665 | 521 |
60 - 89 Days Delinquent | 48 | 251 |
Greater than 90 Days Delinquent | 397 | 882 |
Total Loans Delinquent | 1,110 | 1,654 |
Total Loans Not Delinquent | 225,672 | 239,953 |
Total carrying value of loans | 226,782 | 241,607 |
Home Equity | TCB and FCB acquisitions | ' | ' |
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | 178 | 83 |
Total Loans Delinquent | 178 | 83 |
Total Loans Not Delinquent | 4,458 | 4,485 |
Total carrying value of loans | 4,636 | 4,568 |
Consumer: Credit cards | ' | ' |
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | 87 | 60 |
60 - 89 Days Delinquent | 6 | 5 |
Greater than 90 Days Delinquent | 5 | ' |
Total Loans Delinquent | 98 | 65 |
Total Loans Not Delinquent | 8,932 | 8,651 |
Total carrying value of loans | 9,030 | 8,716 |
Consumer: Credit cards | TCB and FCB acquisitions | ' | ' |
Aging or recorded investments in loans | ' | ' |
Total Loans Not Delinquent | 205 | 321 |
Total carrying value of loans | 205 | 321 |
Consumer: Overdrafts | ' | ' |
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | 159 | 167 |
60 - 89 Days Delinquent | ' | 1 |
Total Loans Delinquent | 159 | 168 |
Total Loans Not Delinquent | 785 | 787 |
Total carrying value of loans | 944 | 955 |
Consumer: Overdrafts | TCB and FCB acquisitions | ' | ' |
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | 1 | ' |
Total Loans Delinquent | 1 | ' |
Total Loans Not Delinquent | 3 | 12 |
Total carrying value of loans | 4 | 12 |
Consumer: Other consumer | ' | ' |
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | 67 | 102 |
60 - 89 Days Delinquent | 27 | 28 |
Greater than 90 Days Delinquent | ' | 2 |
Total Loans Delinquent | 94 | 132 |
Total Loans Not Delinquent | 15,289 | 15,109 |
Total carrying value of loans | 15,383 | 15,241 |
Consumer: Other consumer | TCB and FCB acquisitions | ' | ' |
Aging or recorded investments in loans | ' | ' |
30 - 59 Days Delinquent | 1 | 4 |
60 - 89 Days Delinquent | ' | 27 |
Total Loans Delinquent | 1 | 31 |
Total Loans Not Delinquent | 201 | 957 |
Total carrying value of loans | $202 | $988 |
Recovered_Sheet1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 9) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | $2,589,792 | $2,650,197 |
Residential Real Estate - Owner Occupied | ' | ' |
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | 1,097,795 | 1,145,495 |
Residential Real Estate - Non Owner Occupied | ' | ' |
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | 110,809 | 74,539 |
Home equity | ' | ' |
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | 226,782 | 241,607 |
Consumer: Credit cards | ' | ' |
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | 9,030 | 8,716 |
Consumer: Overdrafts | ' | ' |
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | 944 | 955 |
Consumer: Other consumer | ' | ' |
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | 15,383 | 15,241 |
Performing | Residential Real Estate - Owner Occupied | ' | ' |
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | 1,088,584 | 1,138,326 |
Performing | Residential Real Estate - Non Owner Occupied | ' | ' |
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | 109,530 | 73,163 |
Performing | Home equity | ' | ' |
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | 225,654 | 239,985 |
Performing | Consumer: Credit cards | ' | ' |
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | 9,030 | 8,716 |
Performing | Consumer: Overdrafts | ' | ' |
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | 944 | 955 |
Performing | Consumer: Other consumer | ' | ' |
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | 15,291 | 16,104 |
Non performing | Residential Real Estate - Owner Occupied | ' | ' |
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | 9,211 | 10,028 |
Non performing | Residential Real Estate - Non Owner Occupied | ' | ' |
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | 1,279 | 1,376 |
Non performing | Home equity | ' | ' |
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | 1,128 | 1,868 |
Non performing | Consumer: Other consumer | ' | ' |
Recorded investment in residential and consumer loans based on payment activity | ' | ' |
Recorded investment | $92 | $97 |
Recovered_Sheet2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 10) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Impaired loans | ' | ' | ' |
Loans with no allocated allowance for loan losses | $36,721 | $36,325 | $32,171 |
Loans with allocated allowance for loan losses | 71,273 | 69,382 | 45,022 |
Total impaired loans | 107,994 | 105,707 | 77,193 |
Amount of the allowance for loan losses allocated | 6,674 | 8,531 | 7,086 |
Average of individually impaired loans during the year | 110,272 | 93,487 | 59,711 |
Interest income recognized during impairment | 3,489 | 2,682 | 1,464 |
Impaired loan through troubled debt restructuring | 73,972 | 83,307 | ' |
TCB and FCB acquisitions | ' | ' | ' |
Impaired loans | ' | ' | ' |
Total impaired loans | 32,000 | 18,000 | ' |
Impaired loan through troubled debt restructuring | $7,000 | ' | ' |
Recovered_Sheet3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 11) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Allowance for loans losses | ' | ' | ' | ' |
Individually evaluated for impairment, excluding PCI loans | $5,402 | $8,528 | ' | ' |
Collectively evaluated for impairment | 16,352 | 15,198 | ' | ' |
PCI loans with post acquisition impairment | 1,272 | 3 | ' | ' |
Total ending allowance for loan losses | 23,026 | 23,729 | 24,063 | 23,079 |
Impaired loans individually evaluated, excluding PCI loans | 84,155 | 105,387 | ' | ' |
Loans collectively evaluated for impairment | 2,464,684 | 2,471,832 | ' | ' |
PCI loans with post acquisition impairment | 23,839 | 320 | ' | ' |
PCI loans without post acquisition impairment | 17,114 | 72,658 | ' | ' |
Total carrying value of loans | 2,589,792 | 2,650,197 | ' | ' |
Residential Real Estate - Owner Occupied | ' | ' | ' | ' |
Allowance for loans losses | ' | ' | ' | ' |
Individually evaluated for impairment, excluding PCI loans | 3,606 | 3,032 | ' | ' |
Collectively evaluated for impairment | 4,159 | 3,972 | ' | ' |
PCI loans with post acquisition impairment | 51 | 2 | ' | ' |
Total ending allowance for loan losses | 7,816 | 7,006 | 5,212 | ' |
Impaired loans individually evaluated, excluding PCI loans | 39,211 | 44,429 | ' | ' |
Loans collectively evaluated for impairment | 1,055,774 | 1,080,792 | ' | ' |
PCI loans with post acquisition impairment | 1,455 | 136 | ' | ' |
PCI loans without post acquisition impairment | 1,355 | 20,138 | ' | ' |
Total carrying value of loans | 1,097,795 | 1,145,495 | ' | ' |
Residential Real Estate - Non Owner Occupied | ' | ' | ' | ' |
Allowance for loans losses | ' | ' | ' | ' |
Individually evaluated for impairment, excluding PCI loans | 61 | 521 | ' | ' |
Collectively evaluated for impairment | 672 | 527 | ' | ' |
PCI loans with post acquisition impairment | 290 | 1 | ' | ' |
Total ending allowance for loan losses | 1,023 | 1,049 | 1,142 | ' |
Impaired loans individually evaluated, excluding PCI loans | 2,061 | 4,235 | ' | ' |
Loans collectively evaluated for impairment | 100,812 | 67,974 | ' | ' |
PCI loans with post acquisition impairment | 5,984 | 184 | ' | ' |
PCI loans without post acquisition impairment | 1,952 | 2,146 | ' | ' |
Total carrying value of loans | 110,809 | 74,539 | ' | ' |
Commercial real estate | ' | ' | ' | ' |
Allowance for loans losses | ' | ' | ' | ' |
Individually evaluated for impairment, excluding PCI loans | 1,232 | 2,919 | ' | ' |
Collectively evaluated for impairment | 6,474 | 5,924 | ' | ' |
PCI loans with post acquisition impairment | 603 | ' | ' | ' |
Total ending allowance for loan losses | 8,309 | 8,843 | 7,724 | ' |
Impaired loans individually evaluated, excluding PCI loans | 33,519 | 40,593 | ' | ' |
Loans collectively evaluated for impairment | 712,512 | 629,687 | ' | ' |
PCI loans with post acquisition impairment | 14,512 | ' | ' | ' |
PCI loans without post acquisition impairment | 12,630 | 44,362 | ' | ' |
Total carrying value of loans | 773,173 | 714,642 | ' | ' |
Commercial real estate - purchased whole loans | ' | ' | ' | ' |
Allowance for loans losses | ' | ' | ' | ' |
Collectively evaluated for impairment | 34 | 34 | ' | ' |
Total ending allowance for loan losses | 34 | 34 | ' | ' |
Loans collectively evaluated for impairment | 34,186 | 33,531 | ' | ' |
Total carrying value of loans | 34,186 | 33,531 | ' | ' |
Construction & Land Development | ' | ' | ' | ' |
Allowance for loans losses | ' | ' | ' | ' |
Individually evaluated for impairment, excluding PCI loans | 146 | 1,157 | ' | ' |
Collectively evaluated for impairment | 1,140 | 1,612 | ' | ' |
PCI loans with post acquisition impairment | 10 | ' | ' | ' |
Total ending allowance for loan losses | 1,296 | 2,769 | 3,042 | ' |
Impaired loans individually evaluated, excluding PCI loans | 2,494 | 5,268 | ' | ' |
Loans collectively evaluated for impairment | 40,611 | 61,254 | ' | ' |
PCI loans with post acquisition impairment | 267 | ' | ' | ' |
PCI loans without post acquisition impairment | 979 | 1,692 | ' | ' |
Total carrying value of loans | 44,351 | 68,214 | ' | ' |
Commercial & Industrial | ' | ' | ' | ' |
Allowance for loans losses | ' | ' | ' | ' |
Individually evaluated for impairment, excluding PCI loans | 111 | 348 | ' | ' |
Collectively evaluated for impairment | 661 | 232 | ' | ' |
PCI loans with post acquisition impairment | 317 | ' | ' | ' |
Total ending allowance for loan losses | 1,089 | 580 | 1,025 | ' |
Impaired loans individually evaluated, excluding PCI loans | 4,521 | 6,972 | ' | ' |
Loans collectively evaluated for impairment | 121,456 | 119,429 | ' | ' |
PCI loans with post acquisition impairment | 1,609 | ' | ' | ' |
PCI loans without post acquisition impairment | 177 | 4,280 | ' | ' |
Total carrying value of loans | 127,763 | 130,681 | ' | ' |
Warehouse Lines of Credit | ' | ' | ' | ' |
Allowance for loans losses | ' | ' | ' | ' |
Collectively evaluated for impairment | 449 | 541 | ' | ' |
Total ending allowance for loan losses | 449 | 541 | 104 | ' |
Loans collectively evaluated for impairment | 149,576 | 216,576 | ' | ' |
Total carrying value of loans | 149,576 | 216,576 | ' | ' |
Home equity | ' | ' | ' | ' |
Allowance for loans losses | ' | ' | ' | ' |
Individually evaluated for impairment, excluding PCI loans | 203 | 496 | ' | ' |
Collectively evaluated for impairment | 2,193 | 1,852 | ' | ' |
Total ending allowance for loan losses | 2,396 | 2,348 | 2,984 | ' |
Impaired loans individually evaluated, excluding PCI loans | 2,264 | 3,420 | ' | ' |
Loans collectively evaluated for impairment | 224,518 | 238,187 | ' | ' |
Total carrying value of loans | 226,782 | 241,607 | ' | ' |
Consumer: Credit cards | ' | ' | ' | ' |
Allowance for loans losses | ' | ' | ' | ' |
Collectively evaluated for impairment | 289 | 210 | ' | ' |
Total ending allowance for loan losses | 289 | 210 | 503 | ' |
Loans collectively evaluated for impairment | 9,030 | 8,716 | ' | ' |
Total carrying value of loans | 9,030 | 8,716 | ' | ' |
Consumer: Overdrafts | ' | ' | ' | ' |
Allowance for loans losses | ' | ' | ' | ' |
Collectively evaluated for impairment | 199 | 198 | ' | ' |
Total ending allowance for loan losses | 199 | 198 | 135 | ' |
Loans collectively evaluated for impairment | 944 | 955 | ' | ' |
Total carrying value of loans | 944 | 955 | ' | ' |
Consumer: Other consumer | ' | ' | ' | ' |
Allowance for loans losses | ' | ' | ' | ' |
Individually evaluated for impairment, excluding PCI loans | 43 | 55 | ' | ' |
Collectively evaluated for impairment | 82 | 96 | ' | ' |
PCI loans with post acquisition impairment | 1 | ' | ' | ' |
Total ending allowance for loan losses | 126 | 151 | 227 | ' |
Impaired loans individually evaluated, excluding PCI loans | 85 | 470 | ' | ' |
Loans collectively evaluated for impairment | 15,265 | 14,731 | ' | ' |
PCI loans with post acquisition impairment | 12 | ' | ' | ' |
PCI loans without post acquisition impairment | 21 | 40 | ' | ' |
Total carrying value of loans | $15,383 | $15,241 | ' | ' |
Recovered_Sheet4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 12) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Impaired loans with no related allowance recorded: | ' | ' | ' |
Recorded Investment | $36,721 | $36,325 | $32,171 |
Impaired loans with allowance recorded: | ' | ' | ' |
Recorded Investment | 71,273 | 69,382 | 45,022 |
Allowance for Loan Losses Allocated | 6,674 | 8,531 | 7,086 |
Total impaired loans | ' | ' | ' |
Unpaid Principal Balance | 110,262 | 108,328 | ' |
Recorded Investment | 107,994 | 105,707 | 77,193 |
Allowance for Loan Losses Allocated | 6,674 | 8,531 | 7,086 |
Average Recorded Investment | 110,272 | 93,487 | 59,711 |
Interest Income Recognized | 3,489 | 2,682 | 1,464 |
Residential Real Estate - Owner Occupied | ' | ' | ' |
Impaired loans with no related allowance recorded: | ' | ' | ' |
Unpaid Principal Balance | 7,136 | 13,299 | ' |
Recorded Investment | 6,569 | 13,107 | ' |
Average Recorded Investment | 8,977 | 23,397 | ' |
Interest Income Recognized | 120 | 224 | ' |
Impaired loans with allowance recorded: | ' | ' | ' |
Unpaid Principal Balance | 34,393 | 31,709 | ' |
Recorded Investment | 34,097 | 31,458 | ' |
Allowance for Loan Losses Allocated | 3,657 | 3,034 | ' |
Average Recorded Investment | 34,154 | 12,558 | ' |
Interest Income Recognized | 939 | 258 | ' |
Total impaired loans | ' | ' | ' |
Allowance for Loan Losses Allocated | 3,657 | 3,034 | ' |
Residential Real Estate - Non Owner Occupied | ' | ' | ' |
Impaired loans with no related allowance recorded: | ' | ' | ' |
Unpaid Principal Balance | 1,498 | 955 | ' |
Recorded Investment | 1,256 | 794 | ' |
Average Recorded Investment | 1,520 | 1,656 | ' |
Interest Income Recognized | 13 | 6 | ' |
Impaired loans with allowance recorded: | ' | ' | ' |
Unpaid Principal Balance | 6,789 | 3,695 | ' |
Recorded Investment | 6,789 | 3,625 | ' |
Allowance for Loan Losses Allocated | 351 | 522 | ' |
Average Recorded Investment | 5,104 | 2,543 | ' |
Interest Income Recognized | 248 | 100 | ' |
Total impaired loans | ' | ' | ' |
Allowance for Loan Losses Allocated | 351 | 522 | ' |
Commercial real estate | ' | ' | ' |
Impaired loans with no related allowance recorded: | ' | ' | ' |
Unpaid Principal Balance | 21,886 | 14,293 | ' |
Recorded Investment | 20,953 | 14,293 | ' |
Average Recorded Investment | 21,218 | 11,130 | ' |
Interest Income Recognized | 693 | 707 | ' |
Impaired loans with allowance recorded: | ' | ' | ' |
Unpaid Principal Balance | 27,080 | 26,710 | ' |
Recorded Investment | 27,078 | 26,300 | ' |
Allowance for Loan Losses Allocated | 1,835 | 2,919 | ' |
Average Recorded Investment | 25,724 | 27,094 | ' |
Interest Income Recognized | 1,017 | 909 | ' |
Total impaired loans | ' | ' | ' |
Allowance for Loan Losses Allocated | 1,835 | 2,919 | ' |
Construction & Land Development | ' | ' | ' |
Impaired loans with no related allowance recorded: | ' | ' | ' |
Unpaid Principal Balance | 2,087 | 3,090 | ' |
Recorded Investment | 2,087 | 2,085 | ' |
Average Recorded Investment | 2,150 | 2,883 | ' |
Interest Income Recognized | 103 | 29 | ' |
Impaired loans with allowance recorded: | ' | ' | ' |
Unpaid Principal Balance | 674 | 3,416 | ' |
Recorded Investment | 674 | 3,183 | ' |
Allowance for Loan Losses Allocated | 156 | 1,157 | ' |
Average Recorded Investment | 2,048 | 4,318 | ' |
Interest Income Recognized | 38 | 106 | ' |
Total impaired loans | ' | ' | ' |
Allowance for Loan Losses Allocated | 156 | 1,157 | ' |
Commercial & Industrial | ' | ' | ' |
Impaired loans with no related allowance recorded: | ' | ' | ' |
Unpaid Principal Balance | 4,367 | 4,206 | ' |
Recorded Investment | 4,258 | 4,114 | ' |
Average Recorded Investment | 3,577 | 2,653 | ' |
Interest Income Recognized | 258 | 99 | ' |
Impaired loans with allowance recorded: | ' | ' | ' |
Unpaid Principal Balance | 1,872 | 2,858 | ' |
Recorded Investment | 1,872 | 2,858 | ' |
Allowance for Loan Losses Allocated | 428 | 348 | ' |
Average Recorded Investment | 2,593 | 2,614 | ' |
Interest Income Recognized | 11 | 173 | ' |
Total impaired loans | ' | ' | ' |
Allowance for Loan Losses Allocated | 428 | 348 | ' |
Home equity | ' | ' | ' |
Impaired loans with no related allowance recorded: | ' | ' | ' |
Unpaid Principal Balance | 1,695 | 1,753 | ' |
Recorded Investment | 1,577 | 1,546 | ' |
Average Recorded Investment | 1,982 | 858 | ' |
Interest Income Recognized | 43 | 23 | ' |
Impaired loans with allowance recorded: | ' | ' | ' |
Unpaid Principal Balance | 688 | 1,874 | ' |
Recorded Investment | 687 | 1,874 | ' |
Allowance for Loan Losses Allocated | 203 | 496 | ' |
Average Recorded Investment | 999 | 1,543 | ' |
Interest Income Recognized | 5 | 38 | ' |
Total impaired loans | ' | ' | ' |
Allowance for Loan Losses Allocated | 203 | 496 | ' |
Consumer: Other consumer | ' | ' | ' |
Impaired loans with no related allowance recorded: | ' | ' | ' |
Unpaid Principal Balance | 18 | 386 | ' |
Recorded Investment | 18 | 386 | ' |
Average Recorded Investment | 138 | 219 | ' |
Interest Income Recognized | 1 | 8 | ' |
Impaired loans with allowance recorded: | ' | ' | ' |
Unpaid Principal Balance | 79 | 84 | ' |
Recorded Investment | 79 | 84 | ' |
Allowance for Loan Losses Allocated | 44 | 55 | ' |
Average Recorded Investment | 88 | 21 | ' |
Interest Income Recognized | ' | 2 | ' |
Total impaired loans | ' | ' | ' |
Allowance for Loan Losses Allocated | $44 | $55 | ' |
Recovered_Sheet5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 13) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | $73,972 | $83,307 |
Residential Real Estate | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 37,219 | 43,740 |
Commercial real estate | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 29,527 | 31,323 |
Construction & Land Development | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 2,705 | 3,762 |
Commercial & Industrial | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 4,521 | 4,513 |
Loans on non-accrual status | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 13,240 | 13,964 |
Minimum period for which TDRs continue to be reported as non-performing loans | '6 months | ' |
Loans on non-accrual status | Residential Real Estate | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 5,514 | 6,951 |
Loans on non-accrual status | Commercial real estate | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 7,486 | 5,149 |
Loans on non-accrual status | Construction & Land Development | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 97 | 1,595 |
Loans on non-accrual status | Commercial & Industrial | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 143 | 269 |
Accrual Loans | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 60,732 | 69,343 |
Accrual Loans | Residential Real Estate | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 31,705 | 36,758 |
Accrual Loans | Commercial real estate | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 22,041 | 26,174 |
Accrual Loans | Construction & Land Development | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 2,608 | 2,167 |
Accrual Loans | Commercial & Industrial | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | $4,378 | $4,244 |
Recovered_Sheet6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 14) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | $73,972,000 | $83,307,000 |
Loans modified by troubled debt restructurings during the period | 17,041,000 | 41,999,000 |
Specific reserve allocations made to customers | 5,000,000 | 7,000,000 |
Specific reserve allocations made to customers whose loan terms were modified in TDRs during period | 1,000,000 | 5,000,000 |
Change between the pre and post modification loan | 0 | 0 |
Residential Real Estate | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 37,219,000 | 43,740,000 |
Loans modified by troubled debt restructurings during the period | 9,699,000 | 26,268,000 |
Residential Real Estate | Interest only payments | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 1,101,000 | 1,437,000 |
Loans modified by troubled debt restructurings during the period | 164,000 | 624,000 |
Residential Real Estate | Rate reduction | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 30,997,000 | 27,708,000 |
Loans modified by troubled debt restructurings during the period | 7,540,000 | 14,860,000 |
Residential Real Estate | Principal deferral | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 2,472,000 | 11,278,000 |
Loans modified by troubled debt restructurings during the period | 252,000 | 7,468,000 |
Residential Real Estate | Bankruptcies | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 2,649,000 | 3,317,000 |
Loans modified by troubled debt restructurings during the period | 1,743,000 | 3,316,000 |
Commercial Real Estate and Commercial Construction | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 36,753,000 | 39,567,000 |
Loans modified by troubled debt restructurings during the period | 7,342,000 | 15,731,000 |
Commercial Real Estate and Commercial Construction | Interest only payments | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 7,407,000 | 5,438,000 |
Loans modified by troubled debt restructurings during the period | 3,238,000 | 3,422,000 |
Commercial Real Estate and Commercial Construction | Rate reduction | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 14,621,000 | 16,642,000 |
Loans modified by troubled debt restructurings during the period | 621,000 | 10,533,000 |
Commercial Real Estate and Commercial Construction | Principal deferral | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 14,334,000 | 17,235,000 |
Loans modified by troubled debt restructurings during the period | 3,315,000 | 1,776,000 |
Commercial Real Estate and Commercial Construction | Bankruptcies | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 391,000 | 252,000 |
Loans modified by troubled debt restructurings during the period | 168,000 | ' |
Performing Financing Receivable | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 58,548,000 | 72,495,000 |
Loans modified by troubled debt restructurings during the period | 14,340,000 | 36,681,000 |
Percentage of troubled debt restructurings performing as per terms of modifications during the period. | 79.00% | 87.00% |
Percentage of Bank's TDRs that occurred during period, which were performing according to their modified terms | 84.00% | 87.00% |
Performing Financing Receivable | Residential Real Estate | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 29,521,000 | 36,012,000 |
Loans modified by troubled debt restructurings during the period | 7,493,000 | 22,381,000 |
Performing Financing Receivable | Residential Real Estate | Interest only payments | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 430,000 | 813,000 |
Performing Financing Receivable | Residential Real Estate | Rate reduction | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 26,004,000 | 23,789,000 |
Loans modified by troubled debt restructurings during the period | 6,605,000 | 14,011,000 |
Performing Financing Receivable | Residential Real Estate | Principal deferral | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 1,840,000 | 9,186,000 |
Loans modified by troubled debt restructurings during the period | 95,000 | 6,016,000 |
Performing Financing Receivable | Residential Real Estate | Bankruptcies | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 1,247,000 | 2,224,000 |
Loans modified by troubled debt restructurings during the period | 793,000 | 2,354,000 |
Performing Financing Receivable | Commercial Real Estate and Commercial Construction | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 29,027,000 | 36,483,000 |
Loans modified by troubled debt restructurings during the period | 6,847,000 | 14,300,000 |
Performing Financing Receivable | Commercial Real Estate and Commercial Construction | Interest only payments | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 6,086,000 | 5,096,000 |
Loans modified by troubled debt restructurings during the period | 3,095,000 | 3,080,000 |
Performing Financing Receivable | Commercial Real Estate and Commercial Construction | Rate reduction | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 13,958,000 | 15,747,000 |
Loans modified by troubled debt restructurings during the period | 437,000 | 9,638,000 |
Performing Financing Receivable | Commercial Real Estate and Commercial Construction | Principal deferral | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 8,983,000 | 15,640,000 |
Loans modified by troubled debt restructurings during the period | 3,315,000 | 1,582,000 |
Nonperforming Financing Receivable | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 15,424,000 | 10,812,000 |
Loans modified by troubled debt restructurings during the period | 2,701,000 | 5,318,000 |
Nonperforming Financing Receivable | Residential Real Estate | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 7,698,000 | 7,728,000 |
Loans modified by troubled debt restructurings during the period | 2,206,000 | 3,887,000 |
Nonperforming Financing Receivable | Residential Real Estate | Interest only payments | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 671,000 | 624,000 |
Loans modified by troubled debt restructurings during the period | 164,000 | 624,000 |
Nonperforming Financing Receivable | Residential Real Estate | Rate reduction | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 4,993,000 | 3,919,000 |
Loans modified by troubled debt restructurings during the period | 935,000 | 849,000 |
Nonperforming Financing Receivable | Residential Real Estate | Principal deferral | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 632,000 | 2,092,000 |
Loans modified by troubled debt restructurings during the period | 157,000 | 1,452,000 |
Nonperforming Financing Receivable | Residential Real Estate | Bankruptcies | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 1,402,000 | 1,093,000 |
Loans modified by troubled debt restructurings during the period | 950,000 | 962,000 |
Nonperforming Financing Receivable | Commercial Real Estate and Commercial Construction | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 7,726,000 | 3,084,000 |
Loans modified by troubled debt restructurings during the period | 495,000 | 1,431,000 |
Nonperforming Financing Receivable | Commercial Real Estate and Commercial Construction | Interest only payments | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 1,321,000 | 342,000 |
Loans modified by troubled debt restructurings during the period | 143,000 | 342,000 |
Nonperforming Financing Receivable | Commercial Real Estate and Commercial Construction | Rate reduction | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 663,000 | 895,000 |
Loans modified by troubled debt restructurings during the period | 184,000 | 895,000 |
Nonperforming Financing Receivable | Commercial Real Estate and Commercial Construction | Principal deferral | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 5,351,000 | 1,595,000 |
Loans modified by troubled debt restructurings during the period | ' | 194,000 |
Nonperforming Financing Receivable | Commercial Real Estate and Commercial Construction | Bankruptcies | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Troubled Debt Restructurings | 391,000 | 252,000 |
Loans modified by troubled debt restructurings during the period | $168,000 | ' |
Recovered_Sheet7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 15) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
item | item | |
Troubled Debt Restructurings disclosures | ' | ' |
Number of Loans | 33 | 42 |
Recorded Investment | $2,757 | $6,490 |
Residential Real Estate - Owner Occupied | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Number of Loans | 29 | 31 |
Recorded Investment | 2,252 | 2,355 |
Residential Real Estate - Non Owner Occupied | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Number of Loans | ' | 5 |
Recorded Investment | ' | 1,671 |
Commercial real estate | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Number of Loans | 2 | 4 |
Recorded Investment | 352 | 1,310 |
Construction & Land Development | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Number of Loans | ' | 2 |
Recorded Investment | ' | 1,154 |
Commercial & Industrial | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Number of Loans | 1 | ' |
Recorded Investment | 143 | ' |
Warehouse lines of credit | ' | ' |
Troubled Debt Restructurings disclosures | ' | ' |
Number of Loans | 1 | ' |
Recorded Investment | $10 | ' |
Recovered_Sheet8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 16) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
RAL Originations: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RALs originated and retained on balance sheet | $2,566,766,000 | ' | ' | ' | $2,626,468,000 | ' | ' | ' | $2,566,766,000 | $2,626,468,000 | ' |
RAL Losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Losses for RALs retained, net | 503,000 | 2,200,000 | 905,000 | -625,000 | 1,324,000 | 2,083,000 | 466,000 | 11,170,000 | 2,983,000 | 15,043,000 | 17,966,000 |
Refund Anticipation Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RAL Originations: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RALs originated and retained on balance sheet | ' | ' | ' | ' | 796,015,000 | ' | ' | ' | ' | 796,015,000 | 1,038,862,000 |
RAL Losses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Losses for RALs retained, net | ' | ' | ' | ' | ' | ' | ' | ' | -845,000 | 6,876,000 | 11,560,000 |
Period from origination during which loans were repaid by IRS or applicable taxing authority | ' | ' | ' | ' | ' | ' | ' | ' | '14 days | ' | ' |
Minimum period for charging off outstanding loan | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' |
Amount of loan remained uncollected | ' | ' | ' | ' | $10,500,000 | ' | ' | ' | ' | $10,500,000 | $14,300,000 |
Portion of loan remained uncollected (as a percent) | 1.31% | ' | ' | ' | ' | ' | ' | ' | 1.31% | ' | 1.38% |
FAIR_VALUE_Details
FAIR VALUE (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial Assets: | ' | ' |
Securities available for sale | $432,893 | $438,246 |
U.S. Treasury securities and U.S. Government agencies | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 97,465 | 39,472 |
Private label mortgage backed security | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 5,485 | 5,687 |
Mortgage backed securities - residential | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 150,087 | 197,210 |
Collateralized mortgage obligations | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 163,946 | 195,877 |
Mutual fund | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 995 | ' |
Corporate bonds | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 14,915 | ' |
Fair Value, Inputs, Level 1 | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 995 | ' |
Fair Value, Inputs, Level 2 | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 426,413 | 432,559 |
Fair Value, Inputs, Level 3 | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 5,485 | 5,687 |
Recurring basis | Fair Value, Inputs, Level 1 | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 995 | ' |
Recurring basis | Fair Value, Inputs, Level 1 | Mutual fund | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 995 | ' |
Recurring basis | Fair Value, Inputs, Level 2 | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 426,413 | 432,559 |
Mortgage loans held for sale | 3,506 | 10,614 |
Rate lock loan commitments | 77 | 833 |
Mandatory forward contracts | 12 | 47 |
Interest rate swap | 170 | ' |
Recurring basis | Fair Value, Inputs, Level 2 | U.S. Treasury securities and U.S. Government agencies | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 97,465 | 39,472 |
Recurring basis | Fair Value, Inputs, Level 2 | Mortgage backed securities - residential | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 150,087 | 197,210 |
Recurring basis | Fair Value, Inputs, Level 2 | Collateralized mortgage obligations | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 163,946 | 195,877 |
Recurring basis | Fair Value, Inputs, Level 2 | Corporate bonds | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 14,915 | ' |
Recurring basis | Fair Value, Inputs, Level 3 | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 5,485 | 5,687 |
Recurring basis | Fair Value, Inputs, Level 3 | Private label mortgage backed security | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 5,485 | 5,687 |
Recurring basis | Total Fair Value | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 432,893 | 438,246 |
Mortgage loans held for sale | 3,506 | 10,614 |
Rate lock loan commitments | 77 | 833 |
Mandatory forward contracts | 12 | 47 |
Interest rate swap | 170 | ' |
Recurring basis | Total Fair Value | U.S. Treasury securities and U.S. Government agencies | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 97,465 | 39,472 |
Recurring basis | Total Fair Value | Private label mortgage backed security | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 5,485 | 5,687 |
Recurring basis | Total Fair Value | Mortgage backed securities - residential | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 150,087 | 197,210 |
Recurring basis | Total Fair Value | Collateralized mortgage obligations | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 163,946 | 195,877 |
Recurring basis | Total Fair Value | Mutual fund | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | 995 | ' |
Recurring basis | Total Fair Value | Corporate bonds | ' | ' |
Financial Assets: | ' | ' |
Securities available for sale | $14,915 | ' |
FAIR_VALUE_Details_2
FAIR VALUE (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Assets measured on recurring basis, unobservable input reconciliation | ' | ' | ' |
Net impairment loss recognized in earnings | ' | ' | ($279) |
Private label mortgage backed security | ' | ' | ' |
Assets measured on recurring basis, unobservable input reconciliation | ' | ' | ' |
Balance, beginning of year | 5,687 | 4,542 | 5,124 |
Net impairment loss recognized in earnings | ' | ' | -279 |
Net change in unrealized gain/(loss) | 742 | 2,458 | 6,671 |
Realized pass through of actual losses | ' | -1,313 | -6,412 |
Recovery of actual losses previously recorded | 201 | ' | ' |
Principal paydowns | -1,145 | ' | -562 |
Balance, end of year | $5,485 | $5,687 | $4,542 |
FAIR_VALUE_Details_3
FAIR VALUE (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair value inputs quantitative information | ' | ' | ' |
Transfer of assets between level 3 | $0 | $0 | $0 |
Private label mortgage backed security | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ' | ' | ' |
Fair value inputs quantitative information | ' | ' | ' |
Mortgage backed security fair value | $5,485 | $5,687 | ' |
Private label mortgage backed security | Discounted cash flow | Minimum | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ' | ' | ' |
Fair value inputs quantitative information | ' | ' | ' |
Constant prepayment rate (as a percent) | 2.50% | 1.00% | ' |
Probability of default (as a percent) | 3.00% | 3.50% | ' |
Loss severity (as a percent) | 55.00% | 60.00% | ' |
Private label mortgage backed security | Discounted cash flow | Maximum | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ' | ' | ' |
Fair value inputs quantitative information | ' | ' | ' |
Constant prepayment rate (as a percent) | 6.50% | 6.00% | ' |
Probability of default (as a percent) | 7.00% | 7.00% | ' |
Loss severity (as a percent) | 75.00% | 70.00% | ' |
FAIR_VALUE_Details_4
FAIR VALUE (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Disclosures | ' | ' |
Mortgage servicing rights | $7,337 | $5,446 |
Nonrecurring basis | ' | ' |
Fair Value Disclosures | ' | ' |
Impaired loan on non-recurring basis | 8,538 | 20,225 |
Other real estate owned | 8,418 | 7,575 |
Mortgage servicing rights | ' | 3,484 |
Nonrecurring basis | Residential Real Estate | ' | ' |
Fair Value Disclosures | ' | ' |
Other real estate owned | 1,716 | 1,195 |
Nonrecurring basis | Residential Real Estate - Owner Occupied | ' | ' |
Fair Value Disclosures | ' | ' |
Impaired loan on non-recurring basis | 2,020 | 782 |
Nonrecurring basis | Residential Real Estate - Non Owner Occupied | ' | ' |
Fair Value Disclosures | ' | ' |
Impaired loan on non-recurring basis | ' | 1,788 |
Nonrecurring basis | Commercial real estate | ' | ' |
Fair Value Disclosures | ' | ' |
Impaired loan on non-recurring basis | 5,488 | 15,618 |
Other real estate owned | 507 | 1,219 |
Nonrecurring basis | Construction & Land Development | ' | ' |
Fair Value Disclosures | ' | ' |
Impaired loan on non-recurring basis | ' | 1,552 |
Other real estate owned | 6,195 | 5,161 |
Nonrecurring basis | Commercial & Industrial | ' | ' |
Fair Value Disclosures | ' | ' |
Impaired loan on non-recurring basis | ' | 182 |
Nonrecurring basis | Home equity | ' | ' |
Fair Value Disclosures | ' | ' |
Impaired loan on non-recurring basis | 1,030 | 303 |
Fair Value, Inputs, Level 3 | Nonrecurring basis | ' | ' |
Fair Value Disclosures | ' | ' |
Impaired loan on non-recurring basis | 8,538 | 20,225 |
Other real estate owned | 8,418 | 7,575 |
Fair Value, Inputs, Level 3 | Nonrecurring basis | Residential Real Estate | ' | ' |
Fair Value Disclosures | ' | ' |
Other real estate owned | 1,716 | 1,195 |
Fair Value, Inputs, Level 3 | Nonrecurring basis | Residential Real Estate - Owner Occupied | ' | ' |
Fair Value Disclosures | ' | ' |
Impaired loan on non-recurring basis | 2,020 | 782 |
Fair Value, Inputs, Level 3 | Nonrecurring basis | Residential Real Estate - Non Owner Occupied | ' | ' |
Fair Value Disclosures | ' | ' |
Impaired loan on non-recurring basis | ' | 1,788 |
Fair Value, Inputs, Level 3 | Nonrecurring basis | Commercial real estate | ' | ' |
Fair Value Disclosures | ' | ' |
Impaired loan on non-recurring basis | 5,488 | 15,618 |
Other real estate owned | 507 | 1,219 |
Fair Value, Inputs, Level 3 | Nonrecurring basis | Construction & Land Development | ' | ' |
Fair Value Disclosures | ' | ' |
Impaired loan on non-recurring basis | ' | 1,552 |
Other real estate owned | 6,195 | 5,161 |
Fair Value, Inputs, Level 3 | Nonrecurring basis | Commercial & Industrial | ' | ' |
Fair Value Disclosures | ' | ' |
Impaired loan on non-recurring basis | ' | 182 |
Fair Value, Inputs, Level 3 | Nonrecurring basis | Home equity | ' | ' |
Fair Value Disclosures | ' | ' |
Impaired loan on non-recurring basis | 1,030 | 303 |
Fair Value, Inputs, Level 2 | Nonrecurring basis | ' | ' |
Fair Value Disclosures | ' | ' |
Mortgage servicing rights | ' | $3,484 |
FAIR_VALUE_Details_5
FAIR VALUE (Details 5) (Level 3, Fair Value, Measurements, Nonrecurring, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Impaired Loans | Commercial Real Estate | Sale comparison approach | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value | 5,488 | 15,230 |
Impaired Loans | Commercial Real Estate | Sale comparison approach | Minimum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 0.00% | 0.00% |
Impaired Loans | Commercial Real Estate | Sale comparison approach | Maximum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 30.00% | 50.00% |
Impaired Loans | Commercial Real Estate | Sale comparison approach | Weighted Average | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 19.00% | 18.00% |
Impaired Loans | Commercial Real Estate | Income approach | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value | ' | 1,940 |
Impaired Loans | Commercial Real Estate | Income approach | Minimum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | ' | 12.00% |
Impaired Loans | Commercial Real Estate | Income approach | Maximum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | ' | 12.00% |
Impaired Loans | Commercial Real Estate | Income approach | Weighted Average | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | ' | 12.00% |
Impaired Loans | Residential Real Estate | Sale comparison approach | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value | 2,020 | 2,873 |
Impaired Loans | Residential Real Estate | Sale comparison approach | Minimum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 2.00% | 2.00% |
Impaired Loans | Residential Real Estate | Sale comparison approach | Maximum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 22.00% | 60.00% |
Impaired Loans | Residential Real Estate | Sale comparison approach | Weighted Average | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 7.00% | 17.00% |
Impaired Loans | Home equity | Sale comparison approach | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value | 1,030 | ' |
Impaired Loans | Home equity | Sale comparison approach | Minimum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 0.00% | ' |
Impaired Loans | Home equity | Sale comparison approach | Maximum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 10.00% | ' |
Impaired Loans | Home equity | Sale comparison approach | Weighted Average | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 2.00% | ' |
Impaired Loans | Commercial & Industrial | Sale comparison approach | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value | ' | 182 |
Impaired Loans | Commercial & Industrial | Sale comparison approach | Minimum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | ' | 0.00% |
Impaired Loans | Commercial & Industrial | Sale comparison approach | Maximum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | ' | 50.00% |
Impaired Loans | Commercial & Industrial | Sale comparison approach | Weighted Average | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | ' | 44.00% |
Other Real Estate Owned | Commercial real estate | Sale comparison approach | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value | 507 | 1,219 |
Other Real Estate Owned | Commercial real estate | Sale comparison approach | Minimum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 23.00% | 1.00% |
Other Real Estate Owned | Commercial real estate | Sale comparison approach | Maximum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 33.00% | 33.00% |
Other Real Estate Owned | Commercial real estate | Sale comparison approach | Weighted Average | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 29.00% | 16.00% |
Other Real Estate Owned | Construction & Land Development | Sale comparison approach | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value | 2,236 | 663 |
Other Real Estate Owned | Construction & Land Development | Sale comparison approach | Minimum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 17.00% | 1.00% |
Other Real Estate Owned | Construction & Land Development | Sale comparison approach | Maximum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 58.00% | 54.00% |
Other Real Estate Owned | Construction & Land Development | Sale comparison approach | Weighted Average | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 43.00% | 35.00% |
Other Real Estate Owned | Construction & Land Development | Income approach | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value | 3,959 | 4,498 |
Adjustments determined by management for differences (as a percent) | 21.00% | ' |
Other Real Estate Owned | Construction & Land Development | Income approach | Minimum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | ' | 25.00% |
Other Real Estate Owned | Construction & Land Development | Income approach | Maximum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | ' | 25.00% |
Other Real Estate Owned | Construction & Land Development | Income approach | Weighted Average | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 21.00% | 25.00% |
Other Real Estate Owned | Residential Real Estate | Sale comparison approach | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value | 1,716 | 1,195 |
Other Real Estate Owned | Residential Real Estate | Sale comparison approach | Minimum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 10.00% | 4.00% |
Other Real Estate Owned | Residential Real Estate | Sale comparison approach | Maximum | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 53.00% | 71.00% |
Other Real Estate Owned | Residential Real Estate | Sale comparison approach | Weighted Average | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Adjustments determined by management for differences (as a percent) | 30.00% | 14.00% |
FAIR_VALUE_Details_6
FAIR VALUE (Details 6) (USD $) | 12 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Nonrecurring basis | Nonrecurring basis | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | ||||
Nonrecurring basis | Nonrecurring basis | ||||||
Impaired loans | ' | ' | ' | ' | ' | ' | ' |
Net impairment loss recognized in earnings | $279 | ' | ' | ' | ' | ' | ' |
Carrying amount of loans measured at fair value | 45,022 | 71,273 | 69,382 | ' | ' | 7,629 | 23,070 |
Estimated selling costs considered in carrying amount | ' | ' | ' | ' | ' | 909 | 1,839 |
Valuation allowance | -7,086 | -6,674 | -8,531 | ' | ' | ' | -4,684 |
Total fair value | ' | ' | ' | $8,538 | $20,225 | $8,538 | $20,225 |
FAIR_VALUE_Details_7
FAIR VALUE (Details 7) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Real Estate, Write-down or Reserve | ' | ' | ' |
Carrying value of other real estate owned | $17,102 | $26,203 | $10,956 |
Other real estate owned writedowns | 1,824 | 1,719 | 917 |
Other Real Estate Owned | ' | ' | ' |
Real Estate, Write-down or Reserve | ' | ' | ' |
Carrying value of other real estate owned | 17,102 | 26,203 | 10,956 |
Other real estate owned writedowns | $1,824 | $1,719 | $917 |
FAIR_VALUE_Details_8
FAIR VALUE (Details 8) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Mortgage servicing rights fair value disclosures | ' | ' | ' | ' |
Outstanding balance | $5,409 | $4,777 | $6,087 | $7,800 |
Valuation allowance | ' | -345 | -203 | ' |
Fair value | 7,337 | 5,446 | ' | ' |
Year to date charge (credit) to mortgage banking income due to evaluation of value | -345 | 142 | 203 | ' |
Nonrecurring basis | ' | ' | ' | ' |
Mortgage servicing rights fair value disclosures | ' | ' | ' | ' |
Fair value | ' | 3,484 | ' | ' |
Mortgage Servicing Rights | ' | ' | ' | ' |
Mortgage servicing rights fair value disclosures | ' | ' | ' | ' |
Number of tranches | ' | 21 | ' | ' |
Number of tranches carried at fair value | 0 | 9 | ' | ' |
Mortgage Servicing Rights | Nonrecurring basis | ' | ' | ' | ' |
Mortgage servicing rights fair value disclosures | ' | ' | ' | ' |
Outstanding balance | ' | 3,829 | 3,615 | ' |
Valuation allowance | ' | -345 | -203 | ' |
Fair value | ' | 3,484 | 3,412 | ' |
Year to date charge (credit) to mortgage banking income due to evaluation of value | ($345) | $142 | $203 | ' |
FAIR_VALUE_Details_9
FAIR VALUE (Details 9) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
FAIR VALUE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans held as assets, past due 90-days-or- more | $0 | ' | ' | ' | $0 | ' | ' | ' | $0 | $0 | ' |
Fair value gain loss change in fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate fair value | 3,506 | ' | ' | ' | 10,614 | ' | ' | ' | 3,506 | 10,614 | 4,392 |
Gain | ' | ' | ' | ' | ' | ' | ' | ' | 6,979 | 9,698 | 4,091 |
Interest income | 26,739 | 28,539 | 28,767 | 29,130 | 30,551 | 28,572 | 28,312 | 73,220 | 113,175 | 160,655 | 164,860 |
Mortgage Loans Held for Sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value gain loss change in fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate fair value | 3,506 | ' | ' | ' | 10,614 | ' | ' | ' | 3,506 | 10,614 | ' |
Contractual balance | 3,417 | ' | ' | ' | 10,037 | ' | ' | ' | 3,417 | 10,037 | ' |
Gain | ' | ' | ' | ' | ' | ' | ' | ' | 89 | 577 | ' |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 471 | 400 | 401 |
Change in fair value | ' | ' | ' | ' | ' | ' | ' | ' | -488 | 421 | 201 |
Total change in fair value | ' | ' | ' | ' | ' | ' | ' | ' | ($17) | $821 | $602 |
FAIR_VALUE_Details_10
FAIR VALUE (Details 10) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Securities available for sale | $432,893 | $438,246 |
Securities to be held to maturity | 50,768 | 46,416 |
Fair Value, Inputs, Level 1 | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 170,863 | 137,691 |
Securities available for sale | 995 | ' |
Fair Value, Inputs, Level 2 | ' | ' |
Assets: | ' | ' |
Securities available for sale | 426,413 | 432,559 |
Securities to be held to maturity | 50,768 | 46,416 |
Mortgage loans held for sale, at fair value | 3,506 | 10,614 |
Mortgage servicing rights | 7,337 | ' |
Accrued interest receivable | 8,272 | 9,245 |
Liabilities: | ' | ' |
Securities sold under agreements to repurchase and other short-term borrowings | 165,555 | 250,884 |
Federal Home Loan Bank advances | 618,064 | 576,158 |
Subordinated note | 38,020 | 37,917 |
Accrued interest payable | 1,459 | 1,403 |
Fair Value, Inputs, Level 2 | Non Interest Bearing Deposits | ' | ' |
Liabilities: | ' | ' |
Deposit liabilities, fair value | 488,642 | 479,046 |
Fair Value, Inputs, Level 2 | Transaction deposits | ' | ' |
Liabilities: | ' | ' |
Deposit liabilities, fair value | 1,244,256 | 1,193,339 |
Fair Value, Inputs, Level 2 | Time deposits | ' | ' |
Liabilities: | ' | ' |
Deposit liabilities, fair value | 259,345 | 314,972 |
Fair Value, Inputs, Level 3 | ' | ' |
Assets: | ' | ' |
Securities available for sale | 5,485 | 5,687 |
Loans, net | 2,585,476 | 2,702,686 |
Carrying Value | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 170,863 | 137,691 |
Securities available for sale | 432,893 | 438,246 |
Securities to be held to maturity | 50,644 | 46,010 |
Mortgage loans held for sale, at fair value | 3,506 | 10,614 |
Loans, net | 2,566,766 | 2,626,468 |
Federal Home Loan Bank stock | 28,342 | 28,377 |
Mortgage servicing rights | 5,409 | ' |
Accrued interest receivable | 8,272 | 9,245 |
Liabilities: | ' | ' |
Securities sold under agreements to repurchase and other short-term borrowings | 165,555 | 250,884 |
Federal Home Loan Bank advances | 605,000 | 542,600 |
Subordinated note | 41,240 | 41,240 |
Accrued interest payable | 1,459 | 1,403 |
Carrying Value | Non Interest Bearing Deposits | ' | ' |
Liabilities: | ' | ' |
Deposit liabilities, fair value | 488,642 | 479,046 |
Carrying Value | Transaction deposits | ' | ' |
Liabilities: | ' | ' |
Deposit liabilities, fair value | 1,244,256 | 1,193,339 |
Carrying Value | Time deposits | ' | ' |
Liabilities: | ' | ' |
Deposit liabilities, fair value | 257,959 | 310,543 |
Total Fair Value | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 170,863 | 137,691 |
Securities available for sale | 432,893 | 438,246 |
Securities to be held to maturity | 50,768 | 46,416 |
Mortgage loans held for sale, at fair value | 3,506 | 10,614 |
Loans, net | 2,585,476 | 2,702,686 |
Mortgage servicing rights | 7,337 | ' |
Accrued interest receivable | 8,272 | 9,245 |
Liabilities: | ' | ' |
Securities sold under agreements to repurchase and other short-term borrowings | 165,555 | 250,884 |
Federal Home Loan Bank advances | 618,064 | 576,158 |
Subordinated note | 38,020 | 37,917 |
Accrued interest payable | 1,459 | 1,403 |
Total Fair Value | Non Interest Bearing Deposits | ' | ' |
Liabilities: | ' | ' |
Deposit liabilities, fair value | 488,642 | 479,046 |
Total Fair Value | Transaction deposits | ' | ' |
Liabilities: | ' | ' |
Deposit liabilities, fair value | 1,244,256 | 1,193,339 |
Total Fair Value | Time deposits | ' | ' |
Liabilities: | ' | ' |
Deposit liabilities, fair value | $259,345 | $314,972 |
MORTGAGE_BANKING_ACTIVITIES_De
MORTGAGE BANKING ACTIVITIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
MORTGAGE BANKING ACTIVITIES | ' | ' | ' |
Balance, beginning of year | $10,614,000 | $4,392,000 | ' |
Origination of mortgage loans held for sale | 291,155,000 | 252,194,000 | 137,843,000 |
Proceeds from the sale of mortgage loans held for sale | -305,242,000 | -255,670,000 | -152,770,000 |
Net gain on sale of mortgage loans held for sale | 6,979,000 | 9,698,000 | 4,091,000 |
Balance, end of year | 3,506,000 | 10,614,000 | 4,392,000 |
Activity for mortgage loans held for sale | ' | ' | ' |
Balance, beginning of year | 3,506,000 | 10,614,000 | 4,392,000 |
FHLMC | ' | ' | ' |
MORTGAGE BANKING ACTIVITIES | ' | ' | ' |
Balance, end of year | 929,000,000 | 893,000,000 | ' |
Activity for mortgage loans held for sale | ' | ' | ' |
Balance, beginning of year | 929,000,000 | 893,000,000 | ' |
Custodial escrow account balances maintained in connection with serviced loans | $6,000,000 | $12,000,000 | ' |
MORTGAGE_BANKING_ACTIVITIES_De1
MORTGAGE BANKING ACTIVITIES (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Mortgage servicing rights | ' | ' | ' |
Net gain realized on sale of mortgage loans held for sale | $8,258 | $8,796 | $3,877 |
Net gain recognized | 6,979 | 9,698 | 4,091 |
Loan servicing income | 2,107 | 2,181 | 2,828 |
Amortization of mortgage servicing rights | -2,173 | -3,290 | -2,817 |
Change in mortgage servicing rights valuation allowance | 345 | -142 | -203 |
Net servicing income recognized | 279 | -1,251 | -192 |
Total Mortgage Banking income | 7,258 | 8,447 | 3,899 |
Net change in fair value recognized on loans held for sale | ' | ' | ' |
Mortgage servicing rights | ' | ' | ' |
Net change in fair value | -488 | 421 | 201 |
Net change in fair value recognized on rate lock commitments | ' | ' | ' |
Mortgage servicing rights | ' | ' | ' |
Net change in fair value | -756 | 342 | 383 |
Net change in fair value recognized on forward contracts | ' | ' | ' |
Mortgage servicing rights | ' | ' | ' |
Net change in fair value | ($35) | $139 | ($370) |
MORTGAGE_BANKING_ACTIVITIES_De2
MORTGAGE BANKING ACTIVITIES (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
MORTGAGE BANKING ACTIVITIES | ' | ' | ' |
Balance, beginning of year | $4,777 | $6,087 | $7,800 |
Additions | 2,460 | 2,122 | 1,307 |
Amortized to expense | -2,173 | -3,290 | -2,817 |
Change in valuation allowance | 345 | -142 | -203 |
Balance, end of year | $5,409 | $4,777 | $6,087 |
MORTGAGE_BANKING_ACTIVITIES_De3
MORTGAGE BANKING ACTIVITIES (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Activity for the valuation allowance for capitalized mortgage servicing rights | ' | ' | ' |
Balance, beginning of year | ($345) | ($203) | ' |
Additions | ' | -247 | -203 |
Reductions credited to operations | 345 | 105 | ' |
Balance, end of year | ' | ($345) | ($203) |
MORTGAGE_BANKING_ACTIVITIES_De4
MORTGAGE BANKING ACTIVITIES (Details 5) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Mortgage Servicing Rights | ' | ' |
Fair value of mortgage servicing rights | $7,337 | $5,446 |
Discount rate (as percent) | 10.00% | 9.00% |
Weighted average default rate (as percent) | 1.50% | 1.50% |
Weighted average life in years | '6 years 2 months 1 day | '3 years 10 months 20 days |
Minimum | ' | ' |
Mortgage Servicing Rights | ' | ' |
Prepayment speed range (as percent) | 105.00% | 112.00% |
Maximum | ' | ' |
Mortgage Servicing Rights | ' | ' |
Prepayment speed range (as percent) | 550.00% | 550.00% |
MORTGAGE_BANKING_ACTIVITIES_De5
MORTGAGE BANKING ACTIVITIES (Details 6) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Estimated future amortization expense of the MSR portfolio (net of the impairment charge) | ' |
2014 | $1,008 |
2015 | 986 |
2016 | 967 |
2017 | 933 |
2018 | 710 |
2019 | 466 |
2020 | 339 |
Total | $5,409 |
MORTGAGE_BANKING_ACTIVITIES_De6
MORTGAGE BANKING ACTIVITIES (Details 7) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
MORTGAGE BANKING ACTIVITIES | ' | ' |
Derivative instruments expiration period | '90 days | ' |
Notional amounts and fair values of mortgage banking derivatives | ' | ' |
Notional Amount, Assets | $9,964 | $64,143 |
Fair Value, Assets | 89 | 880 |
Mortgage loans held for sale | ' | ' |
Notional amounts and fair values of mortgage banking derivatives | ' | ' |
Notional Amount, Assets | 3,417 | 10,037 |
Fair Value, Assets | 3,506 | 10,614 |
Rate lock loan commitments | ' | ' |
Notional amounts and fair values of mortgage banking derivatives | ' | ' |
Notional Amount, Assets | 4,393 | 27,468 |
Fair Value, Assets | 77 | 833 |
Mandatory forward contracts | ' | ' |
Notional amounts and fair values of mortgage banking derivatives | ' | ' |
Notional Amount, Assets | 5,571 | 36,675 |
Fair Value, Assets | $12 | $47 |
INTEREST_RATE_SWAPS_Details
INTEREST RATE SWAPS (Details) (Interest rate swap, Cash flow hedge, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
item | |
Interest rate swap | Cash flow hedge | ' |
Interest rate swap | ' |
Number of derivative agreements | 2 |
Derivative description of variable rate basis | 'three-month LIBOR |
Amount of cash pledged as collateral | $0 |
Summary information about the MMDA Swap designated as a cash flow hedge | ' |
Notional amount | 20,000,000 |
Weighted average pay rate (as a percent) | 2.25% |
Weighted average receive rate (as a percent) | 0.21% |
Weighted average maturity in years | '7 years |
Unrealized gain | 170,000 |
Interest expense recorded | 23,000 |
Interest expense on deposits | 16,000 |
Interest expense on FHLB Advances | 7,000 |
Net losses recorded in accumulated OCI and the consolidated statements of income relating to the MMDA Swap | ' |
Amount of Gain Recognized in Other Comprehensive Income on Derivative (Effective Portion) | 111,000 |
Cash flow hedge included in other assets: | ' |
Notional amount | 20,000,000 |
Fair Value | $170,000 |
PREMISES_AND_EQUIPMENT_Details
PREMISES AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
PREMISES AND EQUIPMENT | ' | ' | ' |
Total premises and equipment | $83,594 | $80,725 | ' |
Less: Accumulated depreciation and amortization | 50,686 | 47,528 | ' |
Premises and equipment, net | 32,908 | 33,197 | ' |
Depreciation expense | 5,311 | 5,372 | 5,738 |
Land | ' | ' | ' |
PREMISES AND EQUIPMENT | ' | ' | ' |
Total premises and equipment | 3,967 | 3,967 | ' |
Buildings and improvements | ' | ' | ' |
PREMISES AND EQUIPMENT | ' | ' | ' |
Total premises and equipment | 28,968 | 27,074 | ' |
Furniture, fixtures and equipment | ' | ' | ' |
PREMISES AND EQUIPMENT | ' | ' | ' |
Total premises and equipment | 35,011 | 37,460 | ' |
Leasehold improvements | ' | ' | ' |
PREMISES AND EQUIPMENT | ' | ' | ' |
Total premises and equipment | 15,475 | 12,118 | ' |
Construction in progress | ' | ' | ' |
PREMISES AND EQUIPMENT | ' | ' | ' |
Total premises and equipment | $173 | $106 | ' |
GOODWILL_AND_CORE_DEPOSIT_INTA2
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Balance for goodwill | ' | ' | ' |
Beginning of year | $10,168 | $10,168 | $10,168 |
End of year | $10,168 | $10,168 | $10,168 |
GOODWILL_AND_CORE_DEPOSIT_INTA3
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS (Details 2) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
Core deposit intangibles | Core deposit intangibles | Core deposit intangibles | Core deposit intangibles | Core deposit intangibles | Core deposit intangibles | ||||
2012 acquisitions | FCB acquisition | FCB acquisition | TCB acquisition | ||||||
Detail of core deposit intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of intangibles initially recorded | ' | ' | ' | ' | ' | $623,000 | $559,000 | ' | $64,000 |
Gross Carrying Amount | ' | ' | ' | 1,160,000 | 1,160,000 | ' | ' | 489,000 | ' |
Accumulated Amortization | ' | ' | ' | 1,160,000 | 650,000 | ' | ' | ' | ' |
Aggregate core deposit intangible amortization expense | $510,000 | $171,000 | $59,000 | ' | ' | ' | ' | ' | ' |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deposit Liabilities | ' | ' |
Demand | $651,134 | $580,900 |
Savings | 78,020 | 62,145 |
Individual retirement accounts | 28,767 | 32,491 |
Time deposits, $100,000 and over | 146,909 | 158,516 |
Total interest-bearing deposits | 1,502,215 | 1,503,882 |
Total non interest-bearing deposits | 488,642 | 479,046 |
Total deposits | 1,990,857 | 1,982,928 |
Scheduled maturities of all time deposits, including brokered certificates of deposit | ' | ' |
2014 | 151,189 | ' |
2015 | 58,711 | ' |
2016 | 20,576 | ' |
2017 | 6,956 | ' |
2018 | 20,056 | ' |
Thereafter | 471 | ' |
Total | 257,959 | ' |
Weighted Average Rate | ' | ' |
2014 | 0.55% | ' |
2015 | 1.58% | ' |
2016 | 1.64% | ' |
2017 | 1.09% | ' |
2018 | 1.47% | ' |
Thereafter | 1.00% | ' |
Total | 0.96% | ' |
Tennessee Commerce Bank ("TCB") | ' | ' |
Deposit Liabilities | ' | ' |
Demand | 1,072 | 1,401 |
Money market accounts | 2,325 | 1,727 |
Savings | 4,069 | 8,623 |
Individual retirement accounts | 643 | 1,166 |
Time deposits, $100,000 and over | 3,947 | 10,822 |
Other certificates of deposit | 2,293 | 7,196 |
Certificates of deposit | 2,758 | 6,729 |
Total interest-bearing deposits | 17,107 | 37,664 |
Total non interest-bearing deposits | 3,335 | 4,240 |
Total deposits | 20,442 | 41,904 |
First Commercial Bank ("FCB") | ' | ' |
Deposit Liabilities | ' | ' |
Demand | 2,674 | 5,871 |
Money market accounts | 4,677 | 25,762 |
Individual retirement accounts | 729 | 3,269 |
Time deposits, $100,000 and over | 1,475 | 3,267 |
Other certificates of deposit | 3,168 | 12,574 |
Certificates of deposit | 2,581 | 12,247 |
Total interest-bearing deposits | 15,304 | 62,990 |
Total non interest-bearing deposits | 2,192 | 6,812 |
Total deposits | 17,496 | 69,802 |
TCB and FCB acquisitions | ' | ' |
Deposit Liabilities | ' | ' |
Demand | 3,746 | 7,272 |
Money market accounts | 7,002 | 27,489 |
Savings | 4,069 | 8,623 |
Individual retirement accounts | 1,372 | 4,435 |
Time deposits, $100,000 and over | 5,422 | 14,089 |
Other certificates of deposit | 5,461 | 19,770 |
Certificates of deposit | 5,339 | 18,976 |
Total interest-bearing deposits | 32,411 | 100,654 |
Total non interest-bearing deposits | 5,527 | 11,052 |
Total deposits | 37,938 | 111,706 |
Brokered Deposits | ' | ' |
Deposit Liabilities | ' | ' |
Money market accounts | 35,533 | 35,596 |
Certificates of deposit | 86,421 | 97,110 |
Individual Deposits | ' | ' |
Deposit Liabilities | ' | ' |
Money market accounts | 479,569 | 514,698 |
Time deposits, $100,000 and over | 67,255 | 80,906 |
Other certificates of deposit | $75,516 | $100,036 |
SECURITIES_SOLD_UNDER_AGREEMEN2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Securities sold under agreements to repurchase | ' | ' | ' |
Outstanding balance at end of year | $165,555 | $250,884 | ' |
Securities sold under agreements to repurchase | ' | ' | ' |
Securities sold under agreements to repurchase | ' | ' | ' |
Outstanding balance at end of year | 165,555 | 250,884 | 230,231 |
Weighted average interest rate at year end (as a percent) | 0.04% | 0.06% | 0.17% |
Average outstanding balance during the year | 170,386 | 237,414 | 278,861 |
Average interest rate during the year (as a percent) | 0.04% | 0.16% | 0.23% |
Maximum outstanding at any month end | $242,721 | $272,057 | $297,571 |
FEDERAL_HOME_LOAN_BANK_ADVANCE2
FEDERAL HOME LOAN BANK ADVANCES (Details) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Sep. 07, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
First Commercial Bank | First Commercial Bank | First Commercial Bank | Fixed interest rate advances with a weighted average interest rate of 2.03% due through 2023 | Fixed interest rate advances with a weighted average interest rate of 2.03% due through 2023 | Putable fixed interest rate advances with a weighted average interest rate of 4.39% due through 2017 | Putable fixed interest rate advances with a weighted average interest rate of 4.39% due through 2017 | Putable fixed interest rate advances with a weighted average interest rate of 4.39% due through 2017 | Putable fixed interest rate advances with a weighted average interest rate of 4.39% due through 2017 | Various other unsecured lines of credit | ||||
Minimum | Maximum | ||||||||||||
FHLB advances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total FHLB advances | ' | $605,000,000 | $542,600,000 | ' | ' | $3,000,000 | $505,000,000 | $442,600,000 | $100,000,000 | $100,000,000 | ' | ' | ' |
Weighted average interest rate (as percent) | ' | 2.42% | ' | ' | ' | ' | 2.03% | 2.03% | 4.39% | 4.39% | ' | ' | ' |
Original fixed rate periods | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '5 years | ' |
Original maturities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '10 years | ' |
Additional collateralized advances available | ' | 282,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured lines of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 166,000,000 |
Early termination penalty | 2,400,000 | ' | ' | 63,000 | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
FHLB advances | $81,000,000 | ' | ' | ' | $81,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate advances, weighted average interest rate (as a percent) | 3.56% | ' | ' | ' | 3.56% | ' | ' | ' | ' | ' | ' | ' | ' |
FEDERAL_HOME_LOAN_BANK_ADVANCE3
FEDERAL HOME LOAN BANK ADVANCES (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
FEDERAL HOME LOAN BANK ADVANCES | ' | ' |
2014 | $188,000 | ' |
2015 | 10,000 | ' |
2016 | 82,000 | ' |
2017 | 145,000 | ' |
2018 | 90,000 | ' |
Thereafter | 90,000 | ' |
Total | $605,000 | $542,600 |
Weighted Average Rate | ' | ' |
2014 | 2.69% | ' |
2015 | 2.48% | ' |
2016 | 1.74% | ' |
2017 | 3.44% | ' |
2018 | 1.51% | ' |
Thereafter | 1.75% | ' |
Total | 2.42% | ' |
FEDERAL_HOME_LOAN_BANK_ADVANCE4
FEDERAL HOME LOAN BANK ADVANCES (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
First Lien, Single Family Residential Real Estate | ' | ' |
Real estate loans pledged to collateralize advances and letters of credit with the FHLB | ' | ' |
Real estate loans pledged to collateralize advances and letters of credit with FHLB | $1,082,624 | $1,053,946 |
Home Equity | ' | ' |
Real estate loans pledged to collateralize advances and letters of credit with the FHLB | ' | ' |
Real estate loans pledged to collateralize advances and letters of credit with FHLB | 105,957 | 116,043 |
Multi-Family Commercial Real Estate | ' | ' |
Real estate loans pledged to collateralize advances and letters of credit with the FHLB | ' | ' |
Real estate loans pledged to collateralize advances and letters of credit with FHLB | $13,124 | $7,017 |
SUBORDINATED_NOTE_Details
SUBORDINATED NOTE (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2005 |
Subordinated debentures | ' | ' |
Subordinated note | ' | ' |
Subordinate debenture purchased | ' | $41.20 |
Interest rate on subordinate note (as a percent) | 6.02% | ' |
RBCT | Trust Preferred Securities | ' | ' |
Subordinated note | ' | ' |
Proceeds from issuance of trust preferred securities | ' | $40 |
Redemption option exercise term | ' | '10 years |
Period up to which fixed interest rate is applicable | ' | '10 years |
Description of variable rate basis | ' | 'LIBOR |
Variable spread on debt security (as a percent) | ' | 1.42% |
Maximum consecutive period of deferment in payment of interest | '5 years | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current expense: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | $20,668 | $51,888 | $50,326 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 2,167 | 1,565 | 996 |
Deferred expense: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | -7,395 | 10,798 | -1,287 |
State | ' | ' | ' | ' | ' | ' | ' | ' | -365 | 355 | 13 |
Total | 1,676 | 2,950 | 2,827 | 7,622 | 3,565 | 10,904 | 4,903 | 45,234 | 15,075 | 64,606 | 50,048 |
Effective tax rate that differs from that computed at the federal statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal statutory rate times financial statement income | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
Effect of: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
State taxes, net of federal benefit (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 2.89% | 0.68% | 0.46% |
General business tax credits (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -0.73% | -0.34% | -0.69% |
Other, net (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 0.06% | -0.22% | -0.06% |
Effective tax rate | ' | ' | ' | ' | ' | ' | ' | ' | 37.22% | 35.12% | 34.71% |
Deferred tax assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | 7,622 | ' | ' | ' | 7,970 | ' | ' | ' | 7,622 | 7,970 | ' |
Accrued expenses | 3,571 | ' | ' | ' | 5,128 | ' | ' | ' | 3,571 | 5,128 | ' |
Net operating loss carryforward | 1,587 | ' | ' | ' | 1,349 | ' | ' | ' | 1,587 | 1,349 | ' |
Depreciation | 519 | ' | ' | ' | 334 | ' | ' | ' | 519 | 334 | ' |
Other-than-temporary impairment | 749 | ' | ' | ' | 884 | ' | ' | ' | 749 | 884 | ' |
Partnership losses | 832 | ' | ' | ' | 794 | ' | ' | ' | 832 | 794 | ' |
Other | 834 | ' | ' | ' | 333 | ' | ' | ' | 834 | 333 | ' |
Total deferred tax assets | 15,714 | ' | ' | ' | 16,792 | ' | ' | ' | 15,714 | 16,792 | ' |
Deferred tax liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized investment securities gains | -1,621 | ' | ' | ' | -3,022 | ' | ' | ' | -1,621 | -3,022 | ' |
Federal Home Loan Bank dividends | -4,309 | ' | ' | ' | -4,362 | ' | ' | ' | -4,309 | -4,362 | ' |
Deferred loan fees | -653 | ' | ' | ' | -706 | ' | ' | ' | -653 | -706 | ' |
Mortgage servicing rights | -1,958 | ' | ' | ' | -1,877 | ' | ' | ' | -1,958 | -1,877 | ' |
Bargain purchase gain | -5,460 | ' | ' | ' | -14,454 | ' | ' | ' | -5,460 | -14,454 | ' |
New market tax credits | -1,517 | ' | ' | ' | -1,368 | ' | ' | ' | -1,517 | -1,368 | ' |
Total deferred tax liabilities | -15,518 | ' | ' | ' | -25,789 | ' | ' | ' | -15,518 | -25,789 | ' |
Less: Valuation allowance | -1,684 | ' | ' | ' | -1,592 | ' | ' | ' | -1,684 | -1,592 | ' |
Net deferred tax liability | ($1,488) | ' | ' | ' | ($10,589) | ' | ' | ' | ($1,488) | ($10,589) | ' |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Kentucky | ' |
Net operating loss carry forward | ' |
Net operating loss carry forward, amount | $22 |
Florida | ' |
Net operating loss carry forward | ' |
Net operating loss carry forward, amount | $5 |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ' | ' |
Balance, beginning of year | $595,000 | $506,000 |
Additions based on tax related to the current year | 39,000 | 146,000 |
Additions for tax positions of prior years | 783,000 | ' |
Reductions due to the statute of limitations | -36,000 | -57,000 |
Balance, end of year | 1,381,000 | 595,000 |
Amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods | 898,000 | ' |
Amount of interest and penalties | ' | ' |
Interest and penalties recorded in the income statement | 401,000 | 28,000 |
Interest and penalties accrued | $567,000 | $166,000 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
EARNINGS PER SHARE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $1,345 | $4,603 | $6,119 | $13,356 | $6,621 | $20,668 | $9,578 | $82,472 | $25,423 | $119,339 | $94,149 |
Weighted average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 20,807 | 20,959 | 20,945 |
Effect of dilutive securities (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 97 | 69 | 48 |
Average shares outstanding including dilutive securities | ' | ' | ' | ' | ' | ' | ' | ' | 20,904 | 21,028 | 20,993 |
DILUTED EARNINGS PER SHARE: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive stock options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 18,000 | 122,450 | 585,720 |
Average | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DILUTED EARNINGS PER SHARE: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive stock options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 15,667 | 120,353 | 585,147 |
Class A Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
EARNINGS PER SHARE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividend premium per share (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' |
BASIC EARNINGS PER SHARE: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share | $0.07 | $0.22 | $0.30 | $0.64 | $0.33 | $0.99 | $0.46 | $3.94 | $1.23 | $5.71 | $4.50 |
DILUTED EARNINGS PER SHARE: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted earnings per share | $0.07 | $0.22 | $0.30 | $0.64 | $0.33 | $0.98 | $0.46 | $3.92 | $1.22 | $5.69 | $4.49 |
Class B Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
BASIC EARNINGS PER SHARE: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share | $0.05 | $0.21 | $0.28 | $0.63 | $0.21 | $0.97 | $0.44 | $3.92 | $1.17 | $5.55 | $4.45 |
DILUTED EARNINGS PER SHARE: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted earnings per share | $0.05 | $0.21 | $0.28 | $0.62 | $0.21 | $0.97 | $0.44 | $3.90 | $1.16 | $5.53 | $4.44 |
STOCKHOLDERS_EQUITY_AND_REGULA2
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Dividend Restrictions | ' |
Number of previous years retained profit considered for dividend payment | '2 years |
Amount of dividend that can be declared without prior approval | $75 |
Regulatory Capital Requirements | ' |
Minimum percentage of assets be maintained in housing-related loans and investments and other specified areas | 65.00% |
Class A Common shares | ' |
Common Stock | ' |
Dividends common stock cash as percentage of cash dividend paid on Class B common stock | 110.00% |
Number of votes per share | 1 |
Class B Common shares | ' |
Common Stock | ' |
Number of votes per share | 10 |
STOCKHOLDERS_EQUITY_AND_REGULA3
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
item | Republic Bancorp, Inc. | Republic Bancorp, Inc. | Republic Bank & Trust Co. | Republic Bank & Trust Co. | Republic Bank | Republic Bank | Implementation of Basel III regulatory capital reforms and changes required by the Dodd-Frank Act | Implementation of Basel III regulatory capital reforms and changes required by the Dodd-Frank Act | Implementation of Basel III regulatory capital reforms and changes required by the Dodd-Frank Act | Implementation of Basel III regulatory capital reforms and changes required by the Dodd-Frank Act | Implementation of Basel III regulatory capital reforms and changes required by the Dodd-Frank Act | Implementation of Basel III regulatory capital reforms and changes required by the Dodd-Frank Act | |
Ratios adjusted for capital conservation buffer | 2016 | 2017 | 2018 | 2019 and thereafter | |||||||||
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL MATTERS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of classifications | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
REGULATORY CAPITAL MATTERS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common equity Tier 1 capital ratio (as a percent) | ' | ' | ' | ' | ' | ' | ' | 4.50% | 7.00% | ' | ' | ' | ' |
Period over which capital conservation buffer will be phased-in | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' |
Required maximum capital conservation buffer percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.63% | 1.25% | 1.88% | 2.50% |
Maximum assets to be held by small depository institution holding companies to include non-qualifying instruments that were issued and included in Tier 1 or Tier 2 capital, prior to specified date in additional Tier 1 or Tier 2 capital | ' | ' | ' | ' | ' | ' | ' | $15,000,000,000 | ' | ' | ' | ' | ' |
Common equity Tier 1 capital ratio to be well capitalized (as a percent) | ' | ' | ' | ' | ' | ' | ' | 6.50% | ' | ' | ' | ' | ' |
Tier 1 leverage ratio to be well capitalized (as a percent) | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' |
Minimum total assets of top-tier banking organizations which are not subject to the advance approach rules | ' | ' | ' | ' | ' | ' | ' | 50,000,000,000 | ' | ' | ' | ' | ' |
Threshold consolidated assets of top-tier banking organizations to which advance approach rules are applicable | ' | ' | ' | ' | ' | ' | ' | 250,000,000,000 | ' | ' | ' | ' | ' |
Actual Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital to risk weighted assets | ' | 592,531,000 | 581,189,000 | 439,143,000 | 451,898,000 | 15,860,000 | 14,494,000 | ' | ' | ' | ' | ' | ' |
Tier 1 (core) capital to risk weighted assets | ' | 569,505,000 | 558,982,000 | 418,348,000 | 407,261,000 | 14,785,000 | 13,474,000 | ' | ' | ' | ' | ' | ' |
Tier 1 leverage capital to average assets | ' | 569,505,000 | 558,982,000 | 418,348,000 | 407,261,000 | 14,785,000 | 13,474,000 | ' | ' | ' | ' | ' | ' |
Actual Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital to risk weighted assets (as a percent) | ' | 26.71% | 25.28% | 20.61% | 20.37% | 18.69% | 18.02% | ' | ' | ' | ' | ' | ' |
Tier 1 (core) capital to risk weighted assets (as a percent) | ' | 25.67% | 24.31% | 19.63% | 18.36% | 17.42% | 16.75% | ' | ' | ' | ' | ' | ' |
Tier 1 leverage capital to average assets (as a percent) | ' | 16.81% | 16.36% | 12.73% | 12.18% | 14.41% | 13.43% | ' | ' | ' | ' | ' | ' |
Minimum Requirement for Capital Adequacy Purposes Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital to risk weighted assets | ' | 177,457,000 | 183,939,000 | 170,478,000 | 177,448,000 | 6,788,000 | 6,434,000 | ' | ' | ' | ' | ' | ' |
Tier 1 (core) capital to risk weighted assets | ' | 88,729,000 | 91,969,000 | 85,239,000 | 88,724,000 | 3,394,000 | 3,217,000 | ' | ' | ' | ' | ' | ' |
Tier 1 leverage capital to average assets | ' | 135,515,000 | 136,646,000 | 131,491,000 | 133,696,000 | 4,105,000 | 4,013,000 | ' | ' | ' | ' | ' | ' |
Minimum Requirement for Capital Adequacy Purposes Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital to risk weighted assets (as a percent) | ' | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 10.50% | ' | ' | ' | ' |
Tier 1 (core) capital to risk weighted assets (as a percent) | ' | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 6.00% | 8.50% | ' | ' | ' | ' |
Tier 1 leverage capital to average assets (as a percent) | ' | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | ' | ' | ' | ' | ' |
Minimum Requirement to be Well Capitalized Under Prompt Corrective Action Provisions Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital to risk weighted assets | ' | ' | ' | 213,098,000 | 221,811,000 | 8,485,000 | 8,043,000 | ' | ' | ' | ' | ' | ' |
Tier 1 (core) capital to risk weighted assets | ' | ' | ' | 127,859,000 | 133,086,000 | 5,091,000 | 4,826,000 | ' | ' | ' | ' | ' | ' |
Tier 1 leverage capital to average assets | ' | ' | ' | $164,364,000 | $167,120,000 | $5,132,000 | $5,016,000 | ' | ' | ' | ' | ' | ' |
Minimum Requirement to be Well Capitalized Under Prompt Corrective Action Provisions Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital to risk weighted assets (as a percent) | ' | ' | ' | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | ' | ' | ' | ' | ' |
Tier 1 (core) capital to risk weighted assets (as a percent) | ' | ' | ' | 6.00% | 6.00% | 6.00% | 6.00% | 8.00% | ' | ' | ' | ' | ' |
Tier 1 leverage capital to average assets (as a percent) | ' | ' | ' | 5.00% | 5.00% | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' |
STOCK_PLANS_AND_STOCK_BASED_CO2
STOCK PLANS AND STOCK BASED COMPENSATION (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Estimated unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures) | ' | ' | ' |
2014 | $413,000 | ' | ' |
2015 | 318,000 | ' | ' |
2016 | 310,000 | ' | ' |
2017 | 258,000 | ' | ' |
2018 | 141,000 | ' | ' |
2019 | 2,000 | ' | ' |
Total | 1,442,000 | ' | ' |
Stock option | ' | ' | ' |
STOCK PLANS AND STOCK BASED COMPENSATION | ' | ' | ' |
Stock-based expenses | 205,000 | 792,000 | 277,000 |
Tax benefit recognized related to the expense | 0 | ' | ' |
Number of shares available for grant permitted by plan | 3,307,500 | ' | ' |
Exercisable period | '1 year | ' | ' |
Weighted average assumptions used to determined fair value of stock options granted | ' | ' | ' |
Risk-free interest rate (as a percent) | 0.80% | 1.04% | 2.29% |
Expected dividend yield (as a percent) | 2.95% | 2.79% | 2.59% |
Expected stock price volatility (as a percent) | 31.95% | 33.35% | 30.88% |
Expected life of options | '6 years | '6 years | '6 years |
Estimated fair value per share (in dollars per share) | $5.21 | $5.62 | $5.56 |
Information related to the stock option plan | ' | ' | ' |
Intrinsic value of options exercised | 131,000 | 56,000 | 315,000 |
Cash received from options exercised, net of shares redeemed | 439,000 | 147,000 | 438,000 |
Total fair value of options granted | 31,000 | 17,000 | 28,000 |
Information related to restricted stock awards granted | ' | ' | ' |
Restricted stock award expense | 205,000 | 792,000 | 277,000 |
Estimated unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures) | ' | ' | ' |
2014 | 115,000 | ' | ' |
2015 | 20,000 | ' | ' |
2016 | 12,000 | ' | ' |
2017 | 9,000 | ' | ' |
2018 | 5,000 | ' | ' |
2019 | 2,000 | ' | ' |
Total | 163,000 | ' | ' |
Stock option | Non-executive officer employees | ' | ' | ' |
Information related to the stock option plan | ' | ' | ' |
Outstanding loans | 217,000 | 466,000 | ' |
Stock option | Class B Common shares | ' | ' | ' |
STOCK PLANS AND STOCK BASED COMPENSATION | ' | ' | ' |
Number of options outstanding (in shares) | 0 | ' | ' |
Options | ' | ' | ' |
Outstanding, end of year (in shares) | 0 | ' | ' |
Stock option | Class A Common shares | ' | ' | ' |
STOCK PLANS AND STOCK BASED COMPENSATION | ' | ' | ' |
Number of options outstanding (in shares) | 327,500 | ' | ' |
Options | ' | ' | ' |
Outstanding, beginning of year (in shares) | 460,200 | ' | ' |
Granted (in shares) | 6,000 | ' | ' |
Exercised (in shares) | -31,200 | ' | ' |
Forfeited or expired (in shares) | -107,500 | ' | ' |
Outstanding, end of year (in shares) | 327,500 | ' | ' |
Fully vested and expected to vest (in shares) | 327,500 | ' | ' |
Exercisable (vested) at end of year (in shares) | 142,000 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' |
Outstanding, beginning of year (in dollars per share) | $20.86 | ' | ' |
Granted (in dollars per share) | $23.42 | ' | ' |
Exercised (in dollars per share) | $21.26 | ' | ' |
Forfeited or expired (in dollars per share) | $23.41 | ' | ' |
Outstanding, end of year (in dollars per share) | $20.03 | ' | ' |
Fully vested and expected to vest (in dollars per share) | $20.03 | ' | ' |
Exercisable (vested) at end of year (in dollars per share) | $20.01 | ' | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' |
Outstanding, end of year | '1 year 6 months 25 days | ' | ' |
Fully vested and expected to vest | '1 year 6 months 25 days | ' | ' |
Exercisable (vested) at end of year | '10 months 10 days | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' |
Outstanding, end of year | 1,482,580,000 | ' | ' |
Fully vested and expected to vest | 1,482,580,000 | ' | ' |
Exercisable (vested) at end of year | 644,818,000 | ' | ' |
Stock option | Minimum | ' | ' | ' |
STOCK PLANS AND STOCK BASED COMPENSATION | ' | ' | ' |
Vesting period | '5 years | ' | ' |
Stock option | Maximum | ' | ' | ' |
STOCK PLANS AND STOCK BASED COMPENSATION | ' | ' | ' |
Vesting period | '6 years | ' | ' |
Restricted Stock Awards | ' | ' | ' |
STOCK PLANS AND STOCK BASED COMPENSATION | ' | ' | ' |
Stock-based expenses | 298,000 | 50,000 | ' |
Information related to restricted stock awards granted | ' | ' | ' |
Shares granted | ' | 82,000 | ' |
Weighted-average grant date fair value (in dollars per share) | ' | $19.85 | ' |
Restricted stock award expense | 298,000 | 50,000 | ' |
Shares | ' | ' | ' |
Outstanding, beginning of year (in shares) | 82,000 | ' | ' |
Granted (in shares) | ' | 82,000 | ' |
Outstanding, end of year (in shares) | 82,000 | 82,000 | ' |
Estimated unrecognized stock option and restricted stock award expense related to unvested options and awards (net of estimated forfeitures) | ' | ' | ' |
2014 | 298,000 | ' | ' |
2015 | 298,000 | ' | ' |
2016 | 298,000 | ' | ' |
2017 | 249,000 | ' | ' |
2018 | 136,000 | ' | ' |
Total | $1,279,000 | ' | ' |
Restricted Stock Awards | Minimum | ' | ' | ' |
STOCK PLANS AND STOCK BASED COMPENSATION | ' | ' | ' |
Vesting period | '5 years | ' | ' |
Shares | ' | ' | ' |
Unrecognized compensation expense recognition period | '5 years | ' | ' |
Restricted Stock Awards | Maximum | ' | ' | ' |
STOCK PLANS AND STOCK BASED COMPENSATION | ' | ' | ' |
Vesting period | '6 years | ' | ' |
Shares | ' | ' | ' |
Unrecognized compensation expense recognition period | '6 years | ' | ' |
STOCK_PLANS_AND_STOCK_BASED_CO3
STOCK PLANS AND STOCK BASED COMPENSATION (Details 2) (USD $) | 12 Months Ended | 1 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2004 | Nov. 30, 2004 | Nov. 30, 2004 |
Director | Director | Director | ||||
Minimum | Maximum | |||||
Director Deferred Compensation | ' | ' | ' | ' | ' | ' |
Percentage of board and committee fees that may be deferred by participants | ' | ' | ' | 100.00% | ' | ' |
Specified period during which board and committee fees may be deferred by participants | ' | ' | ' | ' | '2 years | '5 years |
Shares Deferred | ' | ' | ' | ' | ' | ' |
Balance, beginning of period (in shares) | 50,414 | 43,990 | 37,842 | ' | ' | ' |
Awarded (in shares) | 7,768 | 9,871 | 8,658 | ' | ' | ' |
Released (in shares) | -5,046 | -3,447 | -2,510 | ' | ' | ' |
Balance, end of period (in shares) | 53,136 | 50,414 | 43,990 | ' | ' | ' |
Weighted Average Market Price at Date of Deferral | ' | ' | ' | ' | ' | ' |
Balance, beginning of period (in dollars per share) | $20.64 | $20.19 | $20.30 | ' | ' | ' |
Awarded (in dollars per share) | $24.32 | $22.02 | $19.77 | ' | ' | ' |
Released (in dollars per share) | $20.16 | $18.93 | $20.42 | ' | ' | ' |
Balance, end of period (in dollars per share) | $21.23 | $20.64 | $20.19 | ' | ' | ' |
Director deferred compensation expense | $193 | $227 | $171 | ' | ' | ' |
BENEFIT_PLANS_Details
BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
BENEFIT PLANS | ' | ' | ' |
Requisite service period | '30 days | ' | ' |
Requisite employee's age | '21 years | ' | ' |
Minimum percentage of annual eligible compensation by the participants | 1.00% | ' | 1.00% |
Maximum percentage of annual eligible compensation by the participants | 75.00% | ' | 75.00% |
401 (k) plan | ' | ' | ' |
Percentage of employers matching contribution for participant contributions up to 1% | 100.00% | ' | ' |
Percentage of additional employers matching contribution | 75.00% | ' | ' |
Vesting period | '2 years | ' | ' |
Normal and bonus contributions | ' | ' | ' |
Employer matching contributions | $1,576 | $1,470 | $1,388 |
Discretionary employer bonus matching contributions | ' | $446 | $420 |
Minimum | ' | ' | ' |
401 (k) plan | ' | ' | ' |
Percentage of participant contributions up to which employer matches additional 75% contribution | 2.00% | ' | ' |
Maximum | ' | ' | ' |
401 (k) plan | ' | ' | ' |
Percentage of participant contributions up to which employer matches 100% contribution | 1.00% | ' | ' |
Percentage of participant contributions up to which employer matches additional 75% contribution | 5.00% | ' | ' |
BENEFIT_PLANS_Details_2
BENEFIT PLANS (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | |||
Employee Stock Ownership Plan | ' | ' | ' |
Shares allocated to participants in the plan | ' | 255,374 | 274,742 |
Fair value of shares | ' | $5,396,000 | $6,292,000 |
Death Benefit | ' | ' | ' |
Multiplier used for calculating death benefit | 3 | ' | ' |
Period preceding chairman's death used for calculating death benefit | '2 years | ' | ' |
Death Compensation Benefit | 2,000,000 | ' | ' |
Unpaid death benefit | $853,000 | ' | ' |
TRANSACTIONS_WITH_RELATED_PART2
TRANSACTIONS WITH RELATED PARTIES AND THEIR AFFILIATES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Transactions with related parties and their affiliates | ' | ' | ' |
Rent expense under leases from related parties | $3,372,000 | $3,254,000 | $3,158,000 |
Total minimum lease commitments under non-cancelable operating leases | ' | ' | ' |
2014 | 6,846,000 | ' | ' |
2015 | 6,203,000 | ' | ' |
2016 | 4,142,000 | ' | ' |
2017 | 3,195,000 | ' | ' |
2018 | 2,477,000 | ' | ' |
Thereafter | 5,507,000 | ' | ' |
Total | 28,370,000 | ' | ' |
Loans made to executive officers and directors of Republic and their related interests | ' | ' | ' |
Net death benefit | 2,000,000 | ' | ' |
Affiliate | ' | ' | ' |
Total minimum lease commitments under non-cancelable operating leases | ' | ' | ' |
2014 | 3,455,000 | ' | ' |
2015 | 3,209,000 | ' | ' |
2016 | 2,643,000 | ' | ' |
2017 | 1,827,000 | ' | ' |
2018 | 1,281,000 | ' | ' |
Total | 12,415,000 | ' | ' |
Other | ' | ' | ' |
Total minimum lease commitments under non-cancelable operating leases | ' | ' | ' |
2014 | 3,391,000 | ' | ' |
2015 | 2,994,000 | ' | ' |
2016 | 1,499,000 | ' | ' |
2017 | 1,368,000 | ' | ' |
2018 | 1,196,000 | ' | ' |
Thereafter | 5,507,000 | ' | ' |
Total | 15,955,000 | ' | ' |
Republic Bancorp, Inc. | ' | ' | ' |
Total minimum lease commitments under non-cancelable operating leases | ' | ' | ' |
Fees received | 14,000 | 14,000 | 14,000 |
Local law firm | ' | ' | ' |
Total minimum lease commitments under non-cancelable operating leases | ' | ' | ' |
Fees paid | 1,000,000 | 181,000 | 293,000 |
Consulting firms | ' | ' | ' |
Total minimum lease commitments under non-cancelable operating leases | ' | ' | ' |
Fees paid | 101,000 | 173,000 | 12,000 |
Number of consulting firms | 2 | ' | ' |
Executive officers and directors | ' | ' | ' |
Loans made to executive officers and directors of Republic and their related interests | ' | ' | ' |
Beginning balance | 20,953,000 | ' | ' |
Effect of changes in composition of related parties | -338,000 | ' | ' |
New loans | 6,981,000 | ' | ' |
Repayments | -7,888,000 | ' | ' |
Ending balance | 19,708,000 | ' | ' |
Executive officers, directors and affiliates | ' | ' | ' |
Loans made to executive officers and directors of Republic and their related interests | ' | ' | ' |
Deposits from executive officers, directors, and their affiliates | 70,000,000 | 70,000,000 | ' |
Bernard M. Trager | RB&T | ' | ' | ' |
Loans made to executive officers and directors of Republic and their related interests | ' | ' | ' |
Total annual premiums paid on the insurance policies held in the trust | 690,000 | ' | ' |
Cash surrender value of the policies | 1,900,000 | 1,800,000 | ' |
Repayment of indebtedness | 690,000 | ' | ' |
Net death benefit | 3,500,000 | 3,500,000 | ' |
Accounting firm | ' | ' | ' |
Total minimum lease commitments under non-cancelable operating leases | ' | ' | ' |
Fees received | $9,000 | $8,000 | $8,000 |
OFF_BALANCE_SHEET_RISKS_COMMIT2
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commitments and letters of credit | ' | ' |
Loan commitment, line credit | $623,069 | $539,059 |
Unused warehouse lines of credit | ' | ' |
Commitments and letters of credit | ' | ' |
Loan commitment, line credit | 208,424 | 113,924 |
Unused home equity lines of credit | ' | ' |
Commitments and letters of credit | ' | ' |
Loan commitment, line credit | 230,361 | 232,719 |
Unused loan commitments - other | ' | ' |
Commitments and letters of credit | ' | ' |
Loan commitment, line credit | 178,776 | 163,523 |
Standby letters of credit | ' | ' |
Commitments and letters of credit | ' | ' |
Loan commitment, line credit | 2,308 | 16,985 |
FHLB letters of credit | ' | ' |
Commitments and letters of credit | ' | ' |
Loan commitment, line credit | $3,200 | $11,908 |
OFF_BALANCE_SHEET_RISKS_COMMIT3
OFF BALANCE SHEET RISKS, COMMITMENTS AND CONTINGENT LIABILITIES (Details 2) (Pending, Putative class action) | Dec. 31, 2013 |
item | |
Pending | Putative class action | ' |
Lawsuit | ' |
Number of claims | 7 |
Number of counts divided from Count One in the Amended Complaint | 2 |
PARENT_COMPANY_CONDENSED_FINAN2
PARENT COMPANY CONDENSED FINANCIAL INFORMATION (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $170,863 | $137,691 | $362,971 | $786,371 |
Other assets | 33,626 | 37,425 | ' | ' |
TOTAL ASSETS | 3,371,904 | 3,394,399 | 3,419,991 | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Subordinated note | 41,240 | 41,240 | ' | ' |
Other liabilities | 26,459 | 40,045 | ' | ' |
Stockholders' equity | 542,793 | 536,702 | 452,367 | 371,376 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 3,371,904 | 3,394,399 | ' | ' |
Parent | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 130,750 | 115,984 | 41,124 | 18,789 |
Investment in subsidiaries | 448,388 | 463,316 | ' | ' |
Other assets | 10,624 | 2,737 | ' | ' |
TOTAL ASSETS | 589,762 | 582,037 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Subordinated note | 41,240 | 41,240 | ' | ' |
Other liabilities | 5,729 | 4,095 | ' | ' |
Stockholders' equity | 542,793 | 536,702 | ' | ' |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $589,762 | $582,037 | ' | ' |
PARENT_COMPANY_CONDENSED_FINAN3
PARENT COMPANY CONDENSED FINANCIAL INFORMATION (Details2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income and expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | $32,039 | $34,009 | $34,119 | $34,401 | $35,930 | $34,128 | $33,814 | $79,587 | $134,568 | $183,459 | $195,115 |
Other income | ' | ' | ' | ' | ' | ' | ' | ' | 2,782 | 3,104 | 2,328 |
Less: Interest expense | 5,300 | 5,470 | 5,352 | 5,271 | 5,379 | 5,556 | 5,502 | 6,367 | 21,393 | 22,804 | 30,255 |
Less: Other expenses | ' | ' | ' | ' | ' | ' | ' | ' | 8,272 | 9,019 | 7,683 |
INCOME BEFORE INCOME TAX EXPENSE | 3,021 | 7,553 | 8,946 | 20,978 | 10,186 | 31,572 | 14,481 | 127,706 | 40,498 | 183,945 | 144,197 |
Income tax benefit | -1,676 | -2,950 | -2,827 | -7,622 | -3,565 | -10,904 | -4,903 | -45,234 | -15,075 | -64,606 | -50,048 |
NET INCOME | 1,345 | 4,603 | 6,119 | 13,356 | 6,621 | 20,668 | 9,578 | 82,472 | 25,423 | 119,339 | 94,149 |
Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income and expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends from subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | 16,376 | 115,476 | 35,476 |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 3 | 81 |
Other income | ' | ' | ' | ' | ' | ' | ' | ' | 39 | 39 | 39 |
Less: Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 2,515 | 2,522 | 2,515 |
Less: Other expenses | ' | ' | ' | ' | ' | ' | ' | ' | 368 | 441 | 382 |
INCOME BEFORE INCOME TAX EXPENSE | ' | ' | ' | ' | ' | ' | ' | ' | 13,534 | 112,555 | 32,699 |
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | 958 | 997 | 961 |
Income before equity in undistributed net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 14,492 | 113,552 | 33,660 |
Equity in undistributed net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 10,931 | 5,787 | 60,489 |
NET INCOME | ' | ' | ' | ' | ' | ' | ' | ' | $25,423 | $119,339 | $94,149 |
PARENT_COMPANY_CONDENSED_FINAN4
PARENT COMPANY CONDENSED FINANCIAL INFORMATION (Details3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $1,345 | $4,603 | $6,119 | $13,356 | $6,621 | $20,668 | $9,578 | $82,472 | $25,423 | $119,339 | $94,149 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Director deferred compensation - Parent Company | ' | ' | ' | ' | ' | ' | ' | ' | 193 | 227 | 171 |
Change in other assets | ' | ' | ' | ' | ' | ' | ' | ' | 488 | 6,289 | 1,665 |
Change in other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | -12,250 | -1,543 | -772 |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 25,436 | 89,914 | 123,604 |
Investing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash provided by investing activities | ' | ' | ' | ' | ' | ' | ' | ' | 40,401 | 991,641 | -279,163 |
Financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock repurchases | ' | ' | ' | ' | ' | ' | ' | ' | -4,095 | -1,668 | -492 |
Net proceeds from Common Stock options exercised | ' | ' | ' | ' | ' | ' | ' | ' | 439 | 147 | 438 |
Cash dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | -14,009 | -36,116 | -12,315 |
Net cash used in financing activities | ' | ' | ' | ' | ' | ' | ' | ' | -32,665 | -1,306,835 | -267,841 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | ' | ' | ' | ' | ' | ' | ' | ' | 33,172 | -225,280 | -423,400 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | ' | ' | ' | 137,691 | ' | ' | ' | 362,971 | 137,691 | 362,971 | 786,371 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 170,863 | ' | ' | ' | 137,691 | ' | ' | ' | 170,863 | 137,691 | 362,971 |
Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 25,423 | 119,339 | 94,149 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in undistributed net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -10,931 | -5,787 | -60,489 |
Director deferred compensation - Parent Company | ' | ' | ' | ' | ' | ' | ' | ' | 99 | 121 | 104 |
Change in other assets | ' | ' | ' | ' | ' | ' | ' | ' | -7,895 | -1,917 | 1,127 |
Change in other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | 2,114 | 741 | -187 |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 8,810 | 112,497 | 34,704 |
Investing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption of Republic Investment Company common stock | ' | ' | ' | ' | ' | ' | ' | ' | 23,621 | ' | ' |
Net cash provided by investing activities | ' | ' | ' | ' | ' | ' | ' | ' | 23,621 | ' | ' |
Financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock repurchases | ' | ' | ' | ' | ' | ' | ' | ' | -4,095 | -1,668 | -492 |
Net proceeds from Common Stock options exercised | ' | ' | ' | ' | ' | ' | ' | ' | 439 | 147 | 438 |
Cash dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | -14,009 | -36,116 | -12,315 |
Net cash used in financing activities | ' | ' | ' | ' | ' | ' | ' | ' | -17,665 | -37,637 | -12,369 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | ' | ' | ' | ' | ' | ' | ' | ' | 14,766 | 74,860 | 22,335 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | ' | ' | ' | 115,984 | ' | ' | ' | 41,124 | 115,984 | 41,124 | 18,789 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $130,750 | ' | ' | ' | $115,984 | ' | ' | ' | $130,750 | $115,984 | $41,124 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
segment | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Tennessee Commerce Bank ("TCB") | Traditional Banking | Traditional Banking | Traditional Banking | Traditional Banking | Traditional Banking | Traditional Banking | Mortgage Banking | Mortgage Banking | Mortgage Banking | Republic Processing Group | Republic Processing Group | Republic Processing Group | |||||||||||
First Commercial Bank ("FCB") | First Commercial Bank ("FCB") | Tennessee Commerce Bank ("TCB") | ||||||||||||||||||||||||||||
SEGMENT INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest income | $26,739,000 | $28,539,000 | $28,767,000 | $29,130,000 | $30,551,000 | $28,572,000 | $28,312,000 | $73,220,000 | $113,175,000 | $160,655,000 | $164,860,000 | ' | ' | ' | ' | ' | ' | ' | $112,556,000 | $114,831,000 | $105,346,000 | ' | ' | ' | $471,000 | $400,000 | $401,000 | $148,000 | $45,424,000 | $59,113,000 |
Provision for loan losses | 503,000 | 2,200,000 | 905,000 | -625,000 | 1,324,000 | 2,083,000 | 466,000 | 11,170,000 | 2,983,000 | 15,043,000 | 17,966,000 | ' | ' | ' | ' | ' | ' | ' | 3,828,000 | 8,167,000 | 6,406,000 | ' | ' | ' | ' | ' | ' | -845,000 | 6,876,000 | 11,560,000 |
Net refund transfer fees | ' | ' | ' | ' | ' | ' | ' | ' | 13,884,000 | 78,304,000 | 88,195,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,884,000 | 78,304,000 | 88,195,000 |
Mortgage banking income | ' | ' | ' | ' | ' | ' | ' | ' | 7,258,000 | 8,447,000 | 3,899,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,258,000 | 8,447,000 | 3,899,000 | ' | ' | ' |
Net gain on sales, calls and impairment of securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,000 | 279,000 | ' | ' | ' | ' | ' | ' | ' | ' | 56,000 | 2,006,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total bargain purchase gains | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 712,000 | 27,100,000 | 1,324,000 | 27,824,000 | 27,900,000 | -285,000 | 27,614,000 | ' | ' | ' | 1,324,000 | 27,824,000 | 27,614,000 | ' | ' | ' | ' | ' | ' |
Other non interest income | ' | ' | ' | ' | ' | ' | ' | ' | 25,503,000 | 22,833,000 | 25,524,000 | ' | ' | ' | ' | ' | ' | ' | 24,497,000 | 22,574,000 | 25,089,000 | ' | ' | ' | 131,000 | 39,000 | 78,000 | 875,000 | 220,000 | 357,000 |
Total non interest income | 7,122,000 | 7,539,000 | 10,783,000 | 22,525,000 | 9,338,000 | 34,845,000 | 14,086,000 | 106,809,000 | 47,969,000 | 165,078,000 | 119,624,000 | ' | ' | ' | ' | ' | ' | ' | 25,821,000 | 78,068,000 | 27,095,000 | ' | ' | ' | 7,389,000 | 8,486,000 | 3,977,000 | 14,759,000 | 78,524,000 | 88,552,000 |
Total non interest expenses | 30,337,000 | 26,325,000 | 29,699,000 | 31,302,000 | 28,379,000 | 29,762,000 | 27,451,000 | 41,153,000 | 117,663,000 | 126,745,000 | 122,321,000 | ' | ' | ' | ' | ' | ' | ' | 98,064,000 | 100,380,000 | 87,389,000 | ' | ' | ' | 3,418,000 | 3,842,000 | 3,849,000 | 16,181,000 | 22,523,000 | 31,083,000 |
INCOME BEFORE INCOME TAX EXPENSE | 3,021,000 | 7,553,000 | 8,946,000 | 20,978,000 | 10,186,000 | 31,572,000 | 14,481,000 | 127,706,000 | 40,498,000 | 183,945,000 | 144,197,000 | ' | ' | ' | ' | ' | ' | ' | 36,485,000 | 84,352,000 | 38,646,000 | ' | ' | ' | 4,442,000 | 5,044,000 | 529,000 | -429,000 | 94,549,000 | 105,022,000 |
Income tax expense | 1,676,000 | 2,950,000 | 2,827,000 | 7,622,000 | 3,565,000 | 10,904,000 | 4,903,000 | 45,234,000 | 15,075,000 | 64,606,000 | 50,048,000 | ' | ' | ' | ' | ' | ' | ' | 12,557,000 | 29,178,000 | 12,183,000 | ' | ' | ' | 1,555,000 | 1,765,000 | 185,000 | 963,000 | 33,663,000 | 37,680,000 |
NET INCOME | 1,345,000 | 4,603,000 | 6,119,000 | 13,356,000 | 6,621,000 | 20,668,000 | 9,578,000 | 82,472,000 | 25,423,000 | 119,339,000 | 94,149,000 | ' | ' | ' | ' | ' | ' | ' | 23,928,000 | 55,174,000 | 26,463,000 | ' | ' | ' | 2,887,000 | 3,279,000 | 344,000 | -1,392,000 | 60,886,000 | 67,342,000 |
Segment end of period total assets | $3,371,904,000 | ' | ' | ' | $3,394,399,000 | ' | ' | ' | $3,371,904,000 | $3,394,399,000 | $3,419,991,000 | ' | ' | ' | ' | ' | ' | ' | $3,354,850,000 | $3,371,934,000 | $3,099,426,000 | ' | ' | ' | $9,307,000 | $15,752,000 | $10,880,000 | $7,747,000 | $6,713,000 | $309,685,000 |
Net interest margin (as percent) | ' | ' | ' | ' | ' | ' | ' | ' | 3.48% | 4.82% | 5.09% | ' | ' | ' | ' | ' | ' | ' | 3.51% | 3.64% | 3.55% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SUMMARY_OF_QUARTERLY_FINANCIAL2
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated quarterly financial data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | $32,039 | $34,009 | $34,119 | $34,401 | $35,930 | $34,128 | $33,814 | $79,587 | $134,568 | $183,459 | $195,115 |
Interest Expense | 5,300 | 5,470 | 5,352 | 5,271 | 5,379 | 5,556 | 5,502 | 6,367 | 21,393 | 22,804 | 30,255 |
NET INTEREST INCOME | 26,739 | 28,539 | 28,767 | 29,130 | 30,551 | 28,572 | 28,312 | 73,220 | 113,175 | 160,655 | 164,860 |
Provision for loan losses | 503 | 2,200 | 905 | -625 | 1,324 | 2,083 | 466 | 11,170 | 2,983 | 15,043 | 17,966 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 26,236 | 26,339 | 27,862 | 29,755 | 29,227 | 26,489 | 27,846 | 62,050 | 110,192 | 145,612 | 146,894 |
Non interest income | 7,122 | 7,539 | 10,783 | 22,525 | 9,338 | 34,845 | 14,086 | 106,809 | 47,969 | 165,078 | 119,624 |
Non interest expenses | 30,337 | 26,325 | 29,699 | 31,302 | 28,379 | 29,762 | 27,451 | 41,153 | 117,663 | 126,745 | 122,321 |
INCOME BEFORE INCOME TAX EXPENSE | 3,021 | 7,553 | 8,946 | 20,978 | 10,186 | 31,572 | 14,481 | 127,706 | 40,498 | 183,945 | 144,197 |
Income tax expense | 1,676 | 2,950 | 2,827 | 7,622 | 3,565 | 10,904 | 4,903 | 45,234 | 15,075 | 64,606 | 50,048 |
NET INCOME | $1,345 | $4,603 | $6,119 | $13,356 | $6,621 | $20,668 | $9,578 | $82,472 | $25,423 | $119,339 | $94,149 |
Class A Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share (in dollars per share) | $0.07 | $0.22 | $0.30 | $0.64 | $0.33 | $0.99 | $0.46 | $3.94 | $1.23 | $5.71 | $4.50 |
Diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted earnings per share (in dollars per share) | $0.07 | $0.22 | $0.30 | $0.64 | $0.33 | $0.98 | $0.46 | $3.92 | $1.22 | $5.69 | $4.49 |
Dividends declared per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend declared common stock, per share (in dollars per share) | $0.18 | $0.18 | $0.18 | $0.17 | $1.26 | $0.17 | $0.17 | $0.15 | $0.69 | $1.75 | $0.61 |
Class B Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share (in dollars per share) | $0.05 | $0.21 | $0.28 | $0.63 | $0.21 | $0.97 | $0.44 | $3.92 | $1.17 | $5.55 | $4.45 |
Diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted earnings per share (in dollars per share) | $0.05 | $0.21 | $0.28 | $0.62 | $0.21 | $0.97 | $0.44 | $3.90 | $1.16 | $5.53 | $4.44 |
Dividends declared per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend declared common stock, per share (in dollars per share) | $0.16 | $0.16 | $0.16 | $0.15 | $0.15 | $0.15 | $0.15 | $0.14 | $0.63 | $1.59 | $0.55 |
SUMMARY_OF_QUARTERLY_FINANCIAL3
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Mar. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Class A Common Stock | Class B Common Stock | RPG segment | TCB | TCB | TCB | FCB | FCB | FCB | FCB | FCB | |||||||
TRS division | |||||||||||||||||
Consolidated quarterly financial data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bargain purchase gain, pre-tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | $27,900,000 | ($285,000) | $27,614,000 | $712,000 | $27,100,000 | ' | $1,324,000 | $27,824,000 |
Legal expenses | ' | ' | ' | 4,627,000 | 1,866,000 | 3,969,000 | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Reversal of incentive compensation accruals based on revised payout estimates | 3,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increases in non-interest expenses | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | 939,000 | ' | ' | ' | ' | ' | ' | ' |
Prepayment of FHLB advances | ' | ' | 81,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 81,000,000 | ' | ' |
Weighted average cost (as a percent) | ' | ' | 3.56% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.56% | ' | ' |
Early termination penalty | ' | ' | $2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $63,000 | $2,400,000 | ' | ' |
Special Common Stock Dividend Declared | ' | ' | ' | ' | ' | ' | $1.10 | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OTHER_COMPREHENSIVE_INCOME_Det
OTHER COMPREHENSIVE INCOME (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Available for Sale Securities: | ' | ' | ' |
Unrealized gains (losses) on securities available for sale | ($4,747) | $1,043 | ($893) |
Change in unrealized gain (losses) on securities available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings | 742 | 1,279 | -145 |
Reclassification adjustment for gains recognized in earnings | ' | -56 | -2,285 |
Reclassification adjustment for other-than-temporary impairment recognized in earnings | ' | ' | 279 |
Net unrealized gains (losses) | -4,005 | 2,266 | -3,044 |
Tax effect | 1,403 | -793 | 1,065 |
Net of tax | -2,602 | 1,473 | -1,979 |
Cash Flow Hedges: | ' | ' | ' |
Change in fair value of derivatives used for cash flow hedges | 170 | ' | ' |
Net unrealized gains | 170 | ' | ' |
Tax effect | -59 | ' | ' |
Net of tax | 111 | ' | ' |
Accumulated OCI balances, net of tax | ' | ' | ' |
Beginning balance | 5,612 | ' | ' |
Current Year Change | -2,491 | 1,473 | -1,979 |
Ending balance | 3,121 | 5,612 | ' |
Unrealized gains (losses) on securities available for sale | ' | ' | ' |
Accumulated OCI balances, net of tax | ' | ' | ' |
Beginning balance | 5,610 | ' | ' |
Current Year Change | -3,084 | ' | ' |
Ending balance | 2,526 | ' | ' |
Unrealized gain on security available for sale for which a portion of an other-than-temporary impairment has been recognized in earnings | ' | ' | ' |
Accumulated OCI balances, net of tax | ' | ' | ' |
Beginning balance | 2 | ' | ' |
Current Year Change | 482 | ' | ' |
Ending balance | 484 | ' | ' |
Unrealized gains on cash flow hedge | ' | ' | ' |
Accumulated OCI balances, net of tax | ' | ' | ' |
Current Year Change | 111 | ' | ' |
Ending balance | $111 | ' | ' |