For Quarter Ended March 31, 2013
|
Commission File Number 000-06253
|
Arkansas
|
71-0407808
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
incorporation or organization)
|
Identification No.)
|
501 Main Street, Pine Bluff, Arkansas
|
71601
|
(Address of principal executive offices)
|
(Zip Code)
|
Page
|
||
Part I:
|
Financial Information
|
|
Part II:
|
Other Information
|
|
(In thousands, except share data)
|
March 31,
2013
|
December 31,
2012
|
||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Cash and non-interest bearing balances due from banks
|
$
|
40,006
|
$
|
47,470
|
||||
Interest bearing balances due from banks
|
602,992
|
467,984
|
||||||
Federal funds sold
|
--
|
22,343
|
||||||
Cash and cash equivalents
|
642,998
|
537,797
|
||||||
Investment securities
|
680,678
|
687,483
|
||||||
Mortgage loans held for sale
|
19,100
|
25,367
|
||||||
Assets held in trading accounts
|
8,368
|
6,224
|
||||||
Loans:
|
||||||||
Loans
|
1,589,077
|
1,628,513
|
||||||
Allowance for loan losses
|
(27,735
|
)
|
(27,882
|
)
|
||||
Loans acquired, covered by FDIC loss share (net of discount)
|
181,537
|
210,842
|
||||||
Loans acquired, not covered by FDIC loss share (net of discount)
|
78,745
|
82,764
|
||||||
Net loans
|
1,821,624
|
1,894,237
|
||||||
FDIC indemnification asset
|
71,002
|
75,286
|
||||||
Premises and equipment
|
87,934
|
87,557
|
||||||
Foreclosed assets
|
30,714
|
33,352
|
||||||
Foreclosed assets covered by FDIC loss share
|
28,003
|
27,620
|
||||||
Interest receivable
|
13,027
|
14,530
|
||||||
Bank owned life insurance
|
59,344
|
52,066
|
||||||
Goodwill
|
60,605
|
60,605
|
||||||
Core deposit premiums
|
3,624
|
3,760
|
||||||
Other assets
|
16,540
|
21,605
|
||||||
Total assets
|
$
|
3,543,561
|
$
|
3,527,489
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Deposits:
|
||||||||
Non-interest bearing transaction accounts
|
$
|
592,442
|
$
|
576,655
|
||||
Interest bearing transaction accounts and savings deposits
|
1,456,005
|
1,421,137
|
||||||
Time deposits
|
844,217
|
876,371
|
||||||
Total deposits
|
2,892,664
|
2,874,163
|
||||||
Federal funds purchased and securities sold under agreements to repurchase
|
108,227
|
104,078
|
||||||
Other borrowings
|
81,646
|
89,441
|
||||||
Subordinated debentures
|
20,620
|
20,620
|
||||||
Accrued interest and other liabilities
|
33,950
|
33,125
|
||||||
Total liabilities
|
3,137,107
|
3,121,427
|
||||||
Stockholders’ equity:
|
||||||||
Preferred stock, $0.01 par value; 40,040,000 shares authorized and unissued at March 31, 2013 and December 31, 2012
|
--
|
--
|
||||||
Common stock, Class A, $0.01 par value; 60,000,000 shares authorized; 16,509,666 and 16,542,778 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively
|
165
|
165
|
||||||
Surplus
|
94,723
|
96,587
|
||||||
Undivided profits
|
311,521
|
309,053
|
||||||
Accumulated other comprehensive income
|
45
|
257
|
||||||
Total stockholders’ equity
|
406,454
|
406,062
|
||||||
Total liabilities and stockholders’ equity
|
$
|
3,543,561
|
$
|
3,527,489
|
Three Months Ended
March 31,
|
||||||||
(In thousands, except per share data)
|
2013
|
2012
|
||||||
(Unaudited)
|
||||||||
INTEREST INCOME
|
||||||||
Loans not covered by FDIC loss share
|
$
|
23,696
|
$
|
22,272
|
||||
Loans covered by FDIC loss share
|
6,175
|
5,973
|
||||||
Federal funds sold
|
3
|
--
|
||||||
Investment securities
|
2,902
|
3,275
|
||||||
Mortgage loans held for sale
|
155
|
153
|
||||||
Assets held in trading accounts
|
11
|
12
|
||||||
Interest bearing balances due from banks
|
290
|
303
|
||||||
TOTAL INTEREST INCOME
|
33,232
|
31,988
|
||||||
INTEREST EXPENSE
|
||||||||
Deposits
|
2,199
|
2,965
|
||||||
Federal funds purchased and securities sold under agreements to repurchase
|
65
|
99
|
||||||
Other borrowings
|
734
|
815
|
||||||
Subordinated debentures
|
159
|
391
|
||||||
TOTAL INTEREST EXPENSE
|
3,157
|
4,270
|
||||||
NET INTEREST INCOME
|
30,075
|
27,718
|
||||||
Provision for loan losses
|
919
|
771
|
||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
29,156
|
26,947
|
||||||
NON-INTEREST INCOME
|
||||||||
Trust income
|
1,444
|
1,309
|
||||||
Service charges on deposit accounts
|
4,241
|
3,865
|
||||||
Other service charges and fees
|
775
|
792
|
||||||
Mortgage lending income
|
1,216
|
1,294
|
||||||
Investment banking income
|
454
|
699
|
||||||
Credit card fees
|
4,039
|
4,079
|
||||||
Bank owned life insurance income
|
278
|
355
|
||||||
Net gain (loss) on assets covered by FDIC loss share agreements
|
(2,142
|
)
|
(2,665)
|
|||||
Other income
|
1,008
|
995
|
||||||
TOTAL NON-INTEREST INCOME
|
11,313
|
10,723
|
||||||
NON-INTEREST EXPENSE
|
||||||||
Salaries and employee benefits
|
18,507
|
16,824
|
||||||
Occupancy expense, net
|
2,555
|
2,081
|
||||||
Furniture and equipment expense
|
1,723
|
1,604
|
||||||
Other real estate and foreclosure expense
|
331
|
207
|
||||||
Deposit insurance
|
775
|
571
|
||||||
Merger related costs
|
240
|
--
|
||||||
Other operating expenses
|
7,781
|
7,350
|
||||||
TOTAL NON-INTEREST EXPENSE
|
31,912
|
28,637
|
||||||
INCOME BEFORE INCOME TAXES
|
8,557
|
9,033
|
||||||
Provision for income taxes
|
2,620
|
2,678
|
||||||
NET INCOME
|
$
|
5,937
|
$
|
6,355
|
||||
BASIC EARNINGS PER SHARE
|
$
|
0.36
|
$
|
0.37
|
||||
DILUTED EARNINGS PER SHARE
|
$
|
0.36
|
$
|
0.37
|
Three Months Ended
March 31,
|
||||||||
(In thousands)
|
2013
|
2012
|
||||||
(Unaudited)
|
||||||||
NET INCOME
|
$
|
5,937
|
$
|
6,355
|
||||
OTHER COMPREHENSIVE INCOME
|
||||||||
Unrealized holding losses arising during the period on available-for-sale securities
|
(349
|
)
|
(84
|
)
|
||||
Less: Reclassification adjustment for realized gains included in net income
|
--
|
--
|
||||||
Other comprehensive loss, before tax effect
|
(349
|
)
|
(84
|
)
|
||||
Tax effect of other comprehensive loss
|
(137
|
)
|
(33
|
)
|
||||
TOTAL OTHER COMPREHENSIVE LOSS
|
(212
|
)
|
(51
|
)
|
||||
COMPREHENSIVE INCOME
|
$
|
5,725
|
$
|
6,304
|
(In thousands)
|
March 31,
2013
|
March 31,
2012
|
||||||
(Unaudited)
|
||||||||
OPERATING ACTIVITIES
|
||||||||
Net income
|
$
|
5,937
|
$
|
6,355
|
||||
Items not requiring (providing) cash:
|
||||||||
Depreciation and amortization
|
1,460
|
1,372
|
||||||
Provision for loan losses
|
919
|
771
|
||||||
Net amortization (accretion) of investment securities and assets not covered by FDIC loss share
|
69
|
(5
|
)
|
|||||
Stock-based compensation expense
|
336
|
402
|
||||||
Net accretion on assets covered by FDIC loss share
|
(1,196
|
)
|
(901
|
)
|
||||
Deferred income taxes
|
(1,276
|
)
|
1,149
|
|||||
Bank owned life insurance income
|
(278
|
)
|
(355
|
)
|
||||
Changes in:
|
||||||||
Interest receivable
|
1,503
|
1,807
|
||||||
Mortgage loans held for sale
|
6,267
|
(1,375
|
)
|
|||||
Assets held in trading accounts
|
(2,144
|
)
|
(167
|
)
|
||||
Other assets
|
1,149
|
(139
|
)
|
|||||
Accrued interest and other liabilities
|
(1,818
|
)
|
(213
|
)
|
||||
Income taxes payable
|
3,517
|
1,527
|
||||||
Net cash provided by operating activities
|
14,445
|
10,228
|
||||||
INVESTING ACTIVITIES
|
||||||||
Net collections (originations) of loans
|
37,103
|
30,379
|
|
|||||
Net collections of loans covered by FDIC loss share
|
30,648
|
28,418
|
||||||
Purchases of premises and equipment, net
|
(1,701
|
)
|
(596
|
)
|
||||
Proceeds from sale of foreclosed assets held for sale
|
8,128
|
1,528
|
||||||
Proceeds from sale of foreclosed assets held for sale, covered by FDIC loss share
|
2,853
|
3,508
|
||||||
Proceeds from sale of available-for-sale securities
|
480
|
3
|
||||||
Proceeds from maturities of available-for-sale securities
|
15,065
|
79,367
|
||||||
Purchases of available-for-sale securities
|
(16,892
|
)
|
(83,677
|
)
|
||||
Proceeds from maturities of held-to-maturity securities
|
42,282
|
202,643
|
||||||
Purchases of held-to-maturity securities
|
(34,615
|
)
|
(158,506
|
)
|
||||
Purchase of bank owned life insurance
|
(7,000
|
)
|
--
|
|||||
Cash received on FDIC loss share
|
5,219
|
4,017
|
||||||
Net cash provided by investing activities
|
81,570
|
107,084
|
||||||
FINANCING ACTIVITIES
|
||||||||
Net change in deposits
|
18,501
|
4,180
|
||||||
Dividends paid
|
(3,469
|
)
|
(3,443
|
)
|
||||
Net change in other borrowed funds
|
(7,795
|
)
|
142
|
|||||
Net change in federal funds purchased and securities sold under agreements to repurchase
|
4,149
|
(8,542
|
)
|
|||||
Net shares issued under stock compensation plans
|
202
|
190
|
||||||
Repurchase of common stock
|
(2,402
|
)
|
(2,052
|
)
|
||||
Net cash provided by (used in) financing activities
|
9,186
|
(9,525
|
)
|
|||||
INCREASE IN CASH AND CASH EQUIVALENTS
|
105,201
|
107,787
|
||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
537,797
|
570,206
|
||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
642,998
|
$
|
677,993
|
(In thousands, except share data)
|
Common
Stock
|
Surplus
|
Accumulated
Other
Comprehensive
Income
|
Undivided
Profits
|
Total
|
|||||||||||||||
Balance, December 31, 2011
|
$
|
172
|
$
|
112,436
|
$
|
439
|
$
|
294,864
|
$
|
407,911
|
||||||||||
Comprehensive income:
|
||||||||||||||||||||
Net income
|
-
|
-
|
-
|
6,355
|
6,355
|
|||||||||||||||
Change in unrealized appreciation on available-for-sale securities, net of income taxes of ($33)
|
-
|
-
|
(51
|
)
|
-
|
(51
|
)
|
|||||||||||||
Comprehensive income
|
6,304
|
|||||||||||||||||||
Stock issued as bonus shares – 43,945 shares
|
1
|
58
|
-
|
-
|
59
|
|||||||||||||||
Vesting bonus shares
|
-
|
372
|
-
|
-
|
372
|
|||||||||||||||
Stock issued for employee stock purchase plan – 5,103 shares
|
-
|
132
|
-
|
-
|
132
|
|||||||||||||||
Stock granted under stock-based compensation plans
|
-
|
30
|
-
|
-
|
30
|
|||||||||||||||
Repurchase of common stock – (78,839 shares)
|
(1
|
)
|
(2,052
|
)
|
-
|
-
|
(2,053
|
)
|
||||||||||||
Cash dividends – $0.20 per share
|
-
|
-
|
-
|
(3,443
|
)
|
(3,443
|
)
|
|||||||||||||
Balance, March 31, 2012 (Unaudited)
|
172
|
110,976
|
388
|
297,776
|
409,312
|
|||||||||||||||
Comprehensive income:
|
||||||||||||||||||||
Net income
|
-
|
-
|
-
|
21,329
|
21,329
|
|||||||||||||||
Change in unrealized appreciation on available-for-sale securities, net of income taxes of ($84)
|
-
|
-
|
(131
|
)
|
-
|
(131
|
)
|
|||||||||||||
Comprehensive income
|
21,198
|
|||||||||||||||||||
Stock issued as bonus shares – 7,300 shares
|
-
|
133
|
-
|
-
|
133
|
|||||||||||||||
Vesting bonus shares
|
-
|
933
|
-
|
-
|
933
|
|||||||||||||||
Stock granted under stock-based compensation plans
|
-
|
53
|
-
|
-
|
53
|
|||||||||||||||
Repurchase of common stock – (647,048 shares)
|
(7
|
)
|
(15,508
|
)
|
-
|
-
|
(15,515
|
)
|
||||||||||||
Cash dividends – $0.60 per share
|
-
|
-
|
-
|
(10,052
|
)
|
(10,052
|
)
|
|||||||||||||
Balance, December 31, 2012
|
165
|
96,587
|
257
|
309,053
|
406,062
|
|||||||||||||||
Comprehensive income:
|
||||||||||||||||||||
Net income
|
-
|
-
|
-
|
5,937
|
5,937
|
|||||||||||||||
Change in unrealized appreciation on available-for-sale securities, net of income taxes of ($137)
|
-
|
-
|
(212
|
)
|
-
|
(212
|
)
|
|||||||||||||
Comprehensive income
|
5,725
|
|||||||||||||||||||
Stock issued as bonus shares – 53,376 shares
|
1
|
21
|
-
|
-
|
22
|
|||||||||||||||
Vesting bonus shares
|
-
|
320
|
-
|
-
|
320
|
|||||||||||||||
Stock issued for employee stock purchase plan – 5,244 shares
|
-
|
126
|
-
|
-
|
126
|
|||||||||||||||
Exercise of stock options – (2,283 shares)
|
-
|
54
|
-
|
-
|
54
|
|||||||||||||||
Stock granted under stock-based compensation plans
|
-
|
16
|
-
|
-
|
16
|
|||||||||||||||
Repurchase of common stock – (94,015 shares)
|
(1
|
)
|
(2,401
|
)
|
-
|
-
|
(2,402
|
)
|
||||||||||||
Cash dividends – $0.21 per share
|
-
|
-
|
-
|
(3,469
|
)
|
(3,469
|
)
|
|||||||||||||
Balance, March 31, 2013 (Unaudited)
|
$
|
165
|
$
|
94,723
|
$
|
45
|
$
|
311,521
|
$
|
406,454
|
(In thousands, except per share data)
|
2013
|
2012
|
||||||
Net Income
|
$
|
5,937
|
$
|
6,355
|
||||
Average common shares outstanding
|
16,516
|
17,215
|
||||||
Average potential dilutive common shares
|
4
|
8
|
||||||
Average diluted common shares
|
16,520
|
17,223
|
||||||
Basic earnings per share
|
$
|
0.36
|
$
|
0.37
|
||||
Diluted earnings per share
|
$
|
0.36
|
$
|
0.37
|
March 31, 2013
|
December 31, 2012
|
|||||||||||||||||||||||||||||||
(In thousands)
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross Unrealized
(Losses)
|
Estimated
Fair
Value
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross Unrealized
(Losses)
|
Estimated
Fair
Value
|
||||||||||||||||||||||||
Held-to-Maturity
|
||||||||||||||||||||||||||||||||
U.S. Government agencies
|
$
|
288,480
|
$
|
72
|
$
|
(1,067
|
)
|
$
|
287,485
|
$
|
288,098
|
$
|
135
|
$
|
(679
|
)
|
$
|
287,554
|
||||||||||||||
Mortgage-backed securities
|
45
|
2
|
--
|
47
|
49
|
1
|
--
|
50
|
||||||||||||||||||||||||
State and political subdivisions
|
199,368
|
4,305
|
(269
|
)
|
203,404
|
207,374
|
5,140
|
(160
|
)
|
212,354
|
||||||||||||||||||||||
Other securities
|
620
|
--
|
--
|
620
|
620
|
--
|
--
|
620
|
||||||||||||||||||||||||
$
|
488,513
|
$
|
4,379
|
$
|
(1,336
|
)
|
$
|
491,556
|
$
|
496,141
|
$
|
5,276
|
$
|
(839
|
)
|
$
|
500,578
|
|||||||||||||||
Available-for-Sale
|
||||||||||||||||||||||||||||||||
U.S. Government agencies
|
$
|
160,394
|
$
|
33
|
$
|
(581
|
)
|
$
|
159,846
|
$
|
152,708
|
$
|
65
|
$
|
(292
|
)
|
$
|
152,481
|
||||||||||||||
Mortgage-backed securities
|
15,768
|
247
|
(124
|
)
|
15,891
|
20,436
|
287
|
(89
|
)
|
20,634
|
||||||||||||||||||||||
State and political subdivisions
|
1,417
|
--
|
--
|
1,417
|
2,989
|
--
|
(1
|
)
|
2,988
|
|||||||||||||||||||||||
Other securities
|
14,513
|
501
|
(3
|
)
|
15,011
|
14,787
|
456
|
(4
|
)
|
15,239
|
||||||||||||||||||||||
$
|
192,092
|
$
|
781
|
$
|
(708
|
)
|
$
|
192,165
|
$
|
190,920
|
$
|
808
|
$
|
(386
|
)
|
$
|
191,342
|
Less Than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
(In thousands)
|
Estimated
Fair
Value
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
Gross
Unrealized
Losses
|
||||||||||||||||||
Held-to-Maturity
|
||||||||||||||||||||||||
U.S. Government agencies
|
$
|
218,773
|
$
|
(1,067
|
)
|
$
|
--
|
$
|
--
|
$
|
218,773
|
$
|
(1,067
|
)
|
||||||||||
State and political subdivisions
|
18,592
|
(218
|
)
|
549
|
(51
|
)
|
19,141
|
(269
|
)
|
|||||||||||||||
Total
|
$
|
237,365
|
$
|
(1,285
|
)
|
$
|
549
|
$
|
(51
|
)
|
$
|
237,914
|
$
|
(1,336
|
)
|
|||||||||
Available-for-Sale
|
||||||||||||||||||||||||
U.S. Government agencies
|
$
|
129,704
|
$
|
(581
|
)
|
$
|
--
|
$
|
--
|
$
|
129,704
|
$
|
(581
|
)
|
||||||||||
Mortgage-backed securities
|
13,246
|
(123
|
)
|
22
|
(1
|
)
|
13,268
|
(124
|
)
|
|||||||||||||||
State and political subdivisions
|
827
|
--
|
|
--
|
--
|
827
|
--
|
|||||||||||||||||
Other securities
|
2
|
(3
|
)
|
--
|
--
|
2
|
(3
|
)
|
||||||||||||||||
Total
|
$
|
143,779
|
$
|
(707
|
)
|
$
|
22
|
$
|
(1
|
)
|
$
|
143,801
|
$
|
(708
|
)
|
(In thousands)
|
2013
|
2012
|
||||||
Taxable:
|
||||||||
Held-to-maturity
|
$
|
702
|
$
|
852
|
||||
Available-for-sale
|
519
|
526
|
||||||
Non-taxable:
|
||||||||
Held-to-maturity
|
1,675
|
1,897
|
||||||
Available-for-sale
|
6
|
--
|
||||||
Total
|
$
|
2,902
|
$
|
3,275
|
Held-to-Maturity
|
Available-for-Sale
|
|||||||||||||||
(In thousands)
|
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
||||||||||||
One year or less
|
$
|
26,541
|
$
|
26,720
|
$
|
510
|
$
|
510
|
||||||||
After one through five years
|
205,153
|
205,459
|
75,246
|
75,341
|
||||||||||||
After five through ten years
|
190,784
|
191,456
|
88,452
|
88,056
|
||||||||||||
After ten years
|
66,035
|
67,921
|
13,371
|
13,247
|
||||||||||||
Other securities
|
--
|
--
|
14,513
|
15,011
|
||||||||||||
Total
|
$
|
488,513
|
$
|
491,556
|
$
|
192,092
|
$
|
192,165
|
(In thousands)
|
March 31,
2013
|
December 31,
2012
|
||||||
Consumer:
|
||||||||
Credit cards
|
$
|
171,599
|
$
|
185,536
|
||||
Student loans
|
31,835
|
34,145
|
||||||
Other consumer
|
102,297
|
105,319
|
||||||
Total consumer
|
305,731
|
325,000
|
||||||
Real Estate:
|
||||||||
Construction
|
136,099
|
138,132
|
||||||
Single family residential
|
355,479
|
356,907
|
||||||
Other commercial
|
569,686
|
568,166
|
||||||
Total real estate
|
1,061,264
|
1,063,205
|
||||||
Commercial:
|
||||||||
Commercial
|
150,407
|
141,336
|
||||||
Agricultural
|
68,048
|
93,805
|
||||||
Total commercial
|
218,455
|
235,141
|
||||||
Other
|
3,627
|
5,167
|
||||||
Loans
|
1,589,077
|
1,628,513
|
||||||
Loans acquired, covered by FDIC loss share (net of discount)
|
181,537
|
210,842
|
||||||
Loans acquired, not covered by FDIC loss share (net of discount)
|
78,745
|
82,764
|
||||||
Total loans before allowance for loan losses
|
$
|
1,849,359
|
$
|
1,922,119
|
(In thousands)
|
March 31,
2013
|
December 31,
2012
|
||||||
Consumer:
|
||||||||
Credit cards
|
$
|
300
|
$
|
281
|
||||
Student loans
|
--
|
--
|
||||||
Other consumer
|
639
|
801
|
||||||
Total consumer
|
939
|
1,082
|
||||||
Real estate:
|
||||||||
Construction
|
194
|
463
|
||||||
Single family residential
|
2,779
|
2,706
|
||||||
Other commercial
|
4,254
|
4,254
|
||||||
Total real estate
|
7,227
|
7,423
|
||||||
Commercial:
|
||||||||
Commercial
|
453
|
471
|
||||||
Agricultural
|
149
|
147
|
||||||
Total commercial
|
602
|
618
|
||||||
Other
|
--
|
--
|
||||||
Total
|
$
|
8,768
|
$
|
9,123
|
(In thousands)
|
Gross
30-89 Days
Past Due
|
90 Days
or More
Past Due
|
Total
Past Due
|
Current
|
Total
Loans
|
90 Days
Past Due &
Accruing
|
||||||||||||||||||
March 31, 2013
|
||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Credit cards
|
$
|
540
|
$
|
494
|
$
|
1,034
|
$
|
170,565
|
$
|
171,599
|
$
|
194
|
||||||||||||
Student loans
|
1,645
|
2,284
|
3,929
|
27,906
|
31,835
|
2,284
|
||||||||||||||||||
Other consumer
|
1,042
|
575
|
1,617
|
100,680
|
102,297
|
261
|
||||||||||||||||||
Total consumer
|
3,227
|
3,353
|
6,580
|
299,151
|
305,731
|
2,739
|
||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Construction
|
145
|
99
|
244
|
135,855
|
136,099
|
--
|
||||||||||||||||||
Single family residential
|
2,853
|
2,014
|
4,867
|
350,612
|
355,479
|
83
|
||||||||||||||||||
Other commercial
|
516
|
3,913
|
4,429
|
565,257
|
569,686
|
1
|
||||||||||||||||||
Total real estate
|
3,514
|
6,026
|
9,540
|
1,051,724
|
1,061,264
|
84
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial
|
374
|
390
|
764
|
149,643
|
150,407
|
119
|
||||||||||||||||||
Agricultural
|
101
|
28
|
129
|
67,919
|
68,048
|
2
|
||||||||||||||||||
Total commercial
|
475
|
418
|
893
|
217,562
|
218,455
|
121
|
||||||||||||||||||
Other
|
--
|
--
|
--
|
3,627
|
3,627
|
--
|
||||||||||||||||||
Total
|
$
|
7,216
|
$
|
9,797
|
$
|
17,013
|
$
|
1,572,064
|
$
|
1,589,077
|
$
|
2,944
|
||||||||||||
December 31, 2012
|
||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Credit cards
|
$
|
710
|
$
|
547
|
$
|
1,257
|
$
|
184,279
|
$
|
185,536
|
$
|
266
|
||||||||||||
Student loans
|
901
|
2,234
|
3,135
|
31,010
|
34,145
|
2,234
|
||||||||||||||||||
Other consumer
|
1,149
|
529
|
1,678
|
103,641
|
105,319
|
204
|
||||||||||||||||||
Total consumer
|
2,760
|
3,310
|
6,070
|
318,930
|
325,000
|
2,704
|
||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Construction
|
309
|
365
|
674
|
137,458
|
138,132
|
--
|
||||||||||||||||||
Single family residential
|
3,069
|
1,539
|
4,608
|
352,299
|
356,907
|
137
|
||||||||||||||||||
Other commercial
|
716
|
3,303
|
4,019
|
564,147
|
568,166
|
--
|
||||||||||||||||||
Total real estate
|
4,094
|
5,207
|
9,301
|
1,053,904
|
1,063,205
|
137
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial
|
340
|
385
|
725
|
140,611
|
141,336
|
74
|
||||||||||||||||||
Agricultural
|
81
|
113
|
194
|
93,611
|
93,805
|
--
|
||||||||||||||||||
Total commercial
|
421
|
498
|
919
|
234,222
|
235,141
|
74
|
||||||||||||||||||
Other
|
--
|
--
|
--
|
5,167
|
5,167
|
--
|
||||||||||||||||||
Total
|
$
|
7,275
|
$
|
9,015
|
$
|
16,290
|
$
|
1,612,223
|
$
|
1,628,513
|
$
|
2,915
|
(In thousands)
|
Unpaid
Contractual
Principal
Balance
|
Recorded Investment
With No
Allowance
|
Recorded
Investment
With Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
Average
Investment in
Impaired
Loans
|
Interest
Income
Recognized
|
|||||||||||||||||||||
March 31, 2013
|
Three Months Ended
March 31, 2013
|
|||||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||
Credit cards
|
$
|
494
|
$
|
494
|
$
|
--
|
$
|
494
|
$
|
74
|
$
|
521
|
$
|
5
|
||||||||||||||
Other consumer
|
1,041
|
903
|
129
|
1,032
|
291
|
1,081
|
11
|
|||||||||||||||||||||
Total consumer
|
1,535
|
1,397
|
129
|
1,526
|
365
|
1,602
|
16
|
|||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||
Construction
|
3,564
|
1,989
|
1,492
|
3,481
|
470
|
4,421
|
46
|
|||||||||||||||||||||
Single family residential
|
4,371
|
2,891
|
1,451
|
4,342
|
538
|
4,180
|
44
|
|||||||||||||||||||||
Other commercial
|
17,803
|
1,222
|
14,368
|
15,590
|
1,487
|
17,286
|
181
|
|||||||||||||||||||||
Total real estate
|
25,738
|
6,102
|
17,311
|
23,413
|
2,495
|
25,887
|
271
|
|||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||||||
Commercial
|
877
|
496
|
225
|
721
|
211
|
700
|
7
|
|||||||||||||||||||||
Agricultural
|
138
|
87
|
5
|
92
|
10
|
91
|
1
|
|||||||||||||||||||||
Total commercial
|
1,015
|
583
|
230
|
813
|
221
|
791
|
8
|
|||||||||||||||||||||
Other
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||||||||
Total
|
$
|
28,288
|
$
|
8,082
|
$
|
17,670
|
$
|
25,752
|
$
|
3,081
|
$
|
28,280
|
$
|
295
|
||||||||||||||
December 31, 2012
|
Three Months Ended
March 31, 2012
|
|||||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||
Credit cards
|
$
|
547
|
$
|
547
|
$
|
--
|
$
|
547
|
$
|
82
|
$
|
578
|
$
|
4
|
||||||||||||||
Other consumer
|
1,140
|
999
|
131
|
1,130
|
249
|
1,190
|
15
|
|||||||||||||||||||||
Total consumer
|
1,687
|
1,546
|
131
|
1,677
|
331
|
1,768
|
19
|
|||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||
Construction
|
5,443
|
3,866
|
1,494
|
5,360
|
505
|
5,352
|
68
|
|||||||||||||||||||||
Single family residential
|
4,091
|
2,877
|
1,140
|
4,017
|
494
|
4,457
|
56
|
|||||||||||||||||||||
Other commercial
|
21,199
|
5,903
|
13,078
|
18,981
|
1,310
|
24,821
|
313
|
|||||||||||||||||||||
Total real estate
|
30,733
|
12,646
|
15,712
|
28,358
|
2,309
|
34,630
|
437
|
|||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||||||
Commercial
|
842
|
487
|
191
|
678
|
179
|
793
|
10
|
|||||||||||||||||||||
Agricultural
|
236
|
74
|
16
|
90
|
24
|
402
|
5
|
|||||||||||||||||||||
Total commercial
|
1,078
|
561
|
207
|
768
|
203
|
1,195
|
15
|
|||||||||||||||||||||
Other
|
--
|
--
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||||||||
Total
|
$
|
33,498
|
$
|
14,753
|
$
|
16,050
|
$
|
30,803
|
$
|
2,843
|
$
|
37,593
|
$
|
471
|
Accruing TDR Loans
|
Nonaccrual TDR Loans
|
Total TDR Loans
|
||||||||||||||||||||||
(Dollars in thousands)
|
Number
|
Balance
|
Number
|
Balance
|
Number
|
Balance
|
||||||||||||||||||
March 31, 2013
|
||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Other consumer
|
1
|
$
|
33
|
--
|
$
|
--
|
1
|
$
|
33
|
|||||||||||||||
Total consumer
|
1
|
33
|
--
|
--
|
1
|
33
|
||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Construction
|
2
|
1,212
|
--
|
--
|
2
|
1,212
|
||||||||||||||||||
Single-family residential
|
4
|
888
|
1
|
14
|
5
|
902
|
||||||||||||||||||
Other commercial
|
13
|
7,883
|
4
|
2,974
|
17
|
10,857
|
||||||||||||||||||
Total real estate
|
19
|
9,983
|
5
|
2,988
|
24
|
12,971
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial
|
2
|
77
|
1
|
85
|
3
|
162
|
||||||||||||||||||
Agriculture
|
1
|
652
|
--
|
--
|
1
|
652
|
||||||||||||||||||
Total commercial
|
3
|
729
|
1
|
85
|
4
|
814
|
||||||||||||||||||
Total
|
23
|
$
|
10,745
|
6
|
$
|
3,073
|
29
|
$
|
13,818
|
|||||||||||||||
December 31, 2012
|
||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Other consumer
|
1
|
$
|
33
|
1
|
$
|
12
|
2
|
$
|
45
|
|||||||||||||||
Total consumer
|
1
|
33
|
1
|
12
|
2
|
45
|
||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Construction
|
2
|
1,212
|
--
|
--
|
2
|
1,212
|
||||||||||||||||||
Single-family residential
|
3
|
570
|
1
|
15
|
4
|
585
|
||||||||||||||||||
Other commercial
|
14
|
8,508
|
4
|
2,962
|
18
|
11,470
|
||||||||||||||||||
Total real estate
|
19
|
10,290
|
5
|
2,977
|
24
|
13,267
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial
|
1
|
39
|
1
|
85
|
2
|
124
|
||||||||||||||||||
Agricultural
|
1
|
653
|
--
|
--
|
1
|
653
|
||||||||||||||||||
Total commercial
|
2
|
692
|
1
|
85
|
3
|
777
|
||||||||||||||||||
Total
|
22
|
$
|
11,015
|
7
|
$
|
3,074
|
29
|
$
|
14,089
|
Modification Type
|
||||||||||||||||||||||||
(Dollars in thousands)
|
Number of
Loans
|
Balance Prior
to TDR
|
Balance at
March 31
|
Change in
Maturity
Date
|
Change in
Rate
|
Financial Impact
on Date of
Restructure
|
||||||||||||||||||
Three Months Ended March 31, 2013
|
||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Other consumer
|
--
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
--
|
|||||||||||||
Total consumer
|
--
|
--
|
--
|
--
|
--
|
|||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Single-family residential
|
1
|
321
|
321
|
--
|
321
|
--
|
||||||||||||||||||
Total real estate
|
1
|
321
|
321
|
--
|
321
|
--
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial
|
--
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||
Total commercial
|
--
|
--
|
--
|
--
|
--
|
--
|
||||||||||||||||||
Total
|
1
|
$
|
321
|
$
|
321
|
$
|
--
|
$
|
321
|
$
|
--
|
|||||||||||||
Three Months Ended March 31, 2012
|
||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Other consumer
|
1
|
$
|
48
|
$
|
48
|
$
|
--
|
$
|
48
|
$
|
--
|
|||||||||||||
Total consumer
|
1
|
48
|
48
|
--
|
48
|
--
|
||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Single-family residential
|
1
|
175
|
175
|
--
|
175
|
--
|
||||||||||||||||||
Other commercial
|
3
|
878
|
878
|
--
|
878
|
--
|
||||||||||||||||||
Total real estate
|
4
|
1,053
|
1,053
|
--
|
1,053
|
--
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial
|
1
|
51
|
51
|
--
|
51
|
--
|
||||||||||||||||||
Total commercial
|
1
|
51
|
51
|
--
|
51
|
--
|
||||||||||||||||||
Total
|
6
|
$
|
1,152
|
$
|
1,152
|
$
|
--
|
$
|
1,152
|
$
|
--
|
·
|
Risk Rate 1 – Pass (Excellent) – This category includes loans which are virtually free of credit risk. Borrowers in this category represent the highest credit quality and greatest financial strength.
|
·
|
Risk Rate 2 – Pass (Good) - Loans under this category possess a nominal risk of default. This category includes borrowers with strong financial strength and superior financial ratios and trends. These loans are generally fully secured by cash or equivalents (other than those rated "excellent”).
|
·
|
Risk Rate 3 – Pass (Acceptable – Average) - Loans in this category are considered to possess a normal level of risk. Borrowers in this category have satisfactory financial strength and adequate cash flow coverage to service debt requirements. If secured, the perfected collateral should be of acceptable quality and within established borrowing parameters.
|
·
|
Risk Rate 4 – Pass (Monitor) - Loans in the Watch (Monitor) category exhibit an overall acceptable level of risk, but that risk may be increased by certain conditions, which represent "red flags". These "red flags" require a higher level of supervision or monitoring than the normal "Pass" rated credit. The borrower may be experiencing these conditions for the first time, or it may be recovering from weakness, which at one time justified a harsher rating. These conditions may include: weaknesses in financial trends; marginal cash flow; one-time negative operating results; non-compliance with policy or borrowing agreements; poor diversity in operations; lack of adequate monitoring information or lender supervision; questionable management ability/stability.
|
·
|
Risk Rate 5 – Special Mention - A loan in this category has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution's credit position at some future date. Special Mention loans are not adversely classified (although they are "criticized") and do not expose an institution to sufficient risk to warrant adverse classification. Borrowers may be experiencing adverse operating trends, or an ill-proportioned balance sheet. Non-financial characteristics of a Special Mention rating may include management problems, pending litigation, a non-existent, or ineffective loan agreement or other material structural weakness, and/or other significant deviation from prudent lending practices.
|
·
|
Risk Rate 6 – Substandard - A Substandard loan is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. The loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. This does not imply ultimate loss of the principal, but may involve burdensome administrative expenses and the accompanying cost to carry the loan.
|
·
|
Risk Rate 7 – Doubtful – A loan classified Doubtful has all the weaknesses inherent in a substandard loan except that the weaknesses make collection or liquidation in full (on the basis of currently existing facts, conditions, and values) highly questionable and improbable. Doubtful borrowers are usually in default, lack adequate liquidity, or capital, and lack the resources necessary to remain an operating entity. The possibility of loss is extremely high, but because of specific pending events that may strengthen the asset, its classification as loss is deferred. Pending factors include: proposed merger or acquisition; liquidation procedures; capital injection; perfection of liens on additional collateral; and refinancing plans. Loans classified as Doubtful are placed on nonaccrual status.
|
·
|
Risk Rate 8 – Loss - Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loans has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless loan, even though partial recovery may be affected in the future. Borrowers in the Loss category are often in bankruptcy, have formally suspended debt repayments, or have otherwise ceased normal business operations. Loans should be classified as Loss and charged-off in the period in which they become uncollectible.
|
(In thousands)
|
Risk Rate
1-4
|
Risk Rate
5
|
Risk Rate
6
|
Risk Rate
7
|
Risk Rate
8
|
Total
|
||||||||||||||||||
March 31, 2013
|
||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Credit cards
|
$
|
171,105
|
$
|
--
|
$
|
494
|
$
|
--
|
$
|
--
|
$
|
171,599
|
||||||||||||
Student loans
|
29,551
|
--
|
2,284
|
--
|
--
|
31,835
|
||||||||||||||||||
Other consumer
|
100,758
|
6
|
1,482
|
31
|
20
|
102,297
|
||||||||||||||||||
Total consumer
|
301,414
|
6
|
4,260
|
31
|
20
|
305,731
|
||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Construction
|
131,778
|
29
|
4,292
|
--
|
--
|
136,099
|
||||||||||||||||||
Single family residential
|
347,060
|
1,449
|
6,970
|
--
|
--
|
355,479
|
||||||||||||||||||
Other commercial
|
535,849
|
8,878
|
24,959
|
--
|
--
|
569,686
|
||||||||||||||||||
Total real estate
|
1,014,687
|
10,356
|
36,221
|
--
|
--
|
1,061,264
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial
|
147,786
|
105
|
2,487
|
29
|
--
|
150,407
|
||||||||||||||||||
Agricultural
|
67,684
|
--
|
364
|
--
|
--
|
68,048
|
||||||||||||||||||
Total commercial
|
215,470
|
105
|
2,851
|
29
|
--
|
218,455
|
||||||||||||||||||
Other
|
3,627
|
--
|
--
|
--
|
--
|
3,627
|
||||||||||||||||||
Loans acquired, covered by FDIC loss share
|
181,537
|
--
|
--
|
--
|
--
|
181,537
|
||||||||||||||||||
Loans acquired, not covered by FDIC loss share
|
78,745
|
--
|
--
|
--
|
--
|
78,745
|
||||||||||||||||||
Total
|
$
|
1,795,480
|
$
|
10,467
|
$
|
43,332
|
$
|
60
|
$
|
20
|
$
|
1,849,359
|
(In thousands)
|
Risk Rate
1-4
|
Risk Rate
5
|
Risk Rate
6
|
Risk Rate
7
|
Risk Rate
8
|
Total
|
||||||||||||||||||
December 31, 2012
|
||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Credit cards
|
$
|
184,989
|
$
|
--
|
$
|
547
|
$
|
--
|
$
|
--
|
$
|
185,536
|
||||||||||||
Student loans
|
31,911
|
--
|
2,234
|
--
|
--
|
34,145
|
||||||||||||||||||
Other consumer
|
103,597
|
7
|
1,660
|
33
|
22
|
105,319
|
||||||||||||||||||
Total consumer
|
320,497
|
7
|
4,441
|
33
|
22
|
325,000
|
||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||
Construction
|
131,873
|
30
|
6,229
|
--
|
--
|
138,132
|
||||||||||||||||||
Single family residential
|
348,628
|
1,458
|
6,821
|
--
|
--
|
356,907
|
||||||||||||||||||
Other commercial
|
540,986
|
8,484
|
18,696
|
--
|
--
|
568,166
|
||||||||||||||||||
Total real estate
|
1,021,487
|
9,972
|
31,746
|
--
|
--
|
1,063,205
|
||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||
Commercial
|
138,948
|
114
|
2,235
|
39
|
--
|
141,336
|
||||||||||||||||||
Agricultural
|
93,357
|
--
|
448
|
--
|
--
|
93,805
|
||||||||||||||||||
Total commercial
|
232,305
|
114
|
2,683
|
39
|
--
|
235,141
|
||||||||||||||||||
Other
|
5,167
|
--
|
--
|
--
|
--
|
5,167
|
||||||||||||||||||
Loans acquired, covered by FDIC loss share
|
210,842
|
--
|
--
|
--
|
--
|
210,842
|
||||||||||||||||||
Loans acquired, not covered by FDIC loss share
|
82,764
|
--
|
--
|
--
|
--
|
82,764
|
||||||||||||||||||
Total
|
$
|
1,873,062
|
$
|
10,093
|
$
|
38,870
|
$
|
72
|
$
|
22
|
$
|
1,922,119
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
(In thousands)
|
2013
|
2012
|
||||||
Consumer:
|
||||||||
Credit cards
|
$
|
(673
|
)
|
$
|
(787
|
)
|
||
Student loans
|
(13
|
)
|
(18
|
)
|
||||
Other consumer
|
(166
|
)
|
(52
|
)
|
||||
Total consumer
|
(852
|
)
|
(857
|
)
|
||||
Real estate:
|
||||||||
Construction
|
(112
|
)
|
46
|
|||||
Single-family residential
|
(35
|
)
|
(220
|
)
|
||||
Other commercial
|
(24
|
)
|
(1,435
|
)
|
||||
Total real estate
|
(171
|
)
|
(1,609
|
)
|
||||
Commercial:
|
||||||||
Commercial
|
(29
|
)
|
(54
|
)
|
||||
Agriculture
|
(14
|
)
|
(34
|
)
|
||||
Total commercial
|
(43
|
)
|
(88
|
)
|
||||
Other
|
--
|
--
|
||||||
Total
|
$
|
(1,066
|
)
|
$
|
(2,554
|
)
|
(In thousands)
|
Commercial
|
Real
Estate
|
Credit
Card
|
Other
Consumer
and Other
|
Unallocated
|
Total
|
||||||||||||||||||
Three Months Ended March 31, 2013
|
||||||||||||||||||||||||
Balance, beginning of period
|
$
|
3,446
|
$
|
15,453
|
$
|
7,211
|
$
|
1,772
|
$
|
--
|
$
|
27,882
|
||||||||||||
Provision for loan losses
|
129
|
849
|
261
|
(320
|
)
|
--
|
919
|
|||||||||||||||||
Charge-offs
|
(96
|
)
|
(239
|
)
|
(909
|
)
|
(374
|
)
|
--
|
(1,618
|
)
|
|||||||||||||
Recoveries
|
53
|
68
|
236
|
195
|
--
|
552
|
||||||||||||||||||
Net charge-offs
|
(43
|
)
|
(171
|
)
|
(673
|
)
|
(179
|
)
|
--
|
(1,066
|
)
|
|||||||||||||
Balance, March 31, 2013
|
$
|
3,532
|
$
|
16,131
|
$
|
6,799
|
$
|
1,273
|
$
|
--
|
$
|
27,735
|
||||||||||||
Period-end amount allocated to:
|
||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
221
|
$
|
2,495
|
$
|
74
|
$
|
291
|
$
|
--
|
$
|
3,081
|
||||||||||||
Loans collectively evaluated for impairment
|
3,311
|
13,636
|
6,725
|
982
|
--
|
24,654
|
||||||||||||||||||
Balance, March 31, 2013
|
$
|
3,532
|
$
|
16,131
|
$
|
6,799
|
$
|
1,273
|
$
|
--
|
$
|
27,735
|
(In thousands)
|
Commercial
|
Real
Estate
|
Credit
Card
|
Other
Consumer
and Other
|
Unallocated
|
Total
|
||||||||||||||||||
Three Months Ended March 31, 2012
|
||||||||||||||||||||||||
Balance, beginning of period
|
$
|
2,063
|
$
|
10,117
|
$
|
5,513
|
$
|
1,847
|
$
|
10,568
|
$
|
30,108
|
||||||||||||
Provision for loan losses
|
(61
|
)
|
1,133
|
774
|
(6
|
)
|
(1,069
|
)
|
771
|
|||||||||||||||
Charge-offs
|
(129
|
)
|
(2,539
|
)
|
(997
|
)
|
(226
|
)
|
--
|
(3,891
|
)
|
|||||||||||||
Recoveries
|
41
|
930
|
210
|
156
|
--
|
1,337
|
||||||||||||||||||
Net charge-offs
|
(88
|
)
|
(1,609
|
)
|
(787
|
)
|
(70
|
)
|
--
|
(2,554
|
)
|
|||||||||||||
Balance, March 31, 2012
|
$
|
1,914
|
$
|
9,641
|
$
|
5,500
|
$
|
1,771
|
$
|
9,499
|
$
|
28,325
|
||||||||||||
Period-end amount allocated to:
|
||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
290
|
$
|
2,244
|
$
|
83
|
$
|
220
|
$
|
--
|
$
|
2,837
|
||||||||||||
Loans collectively evaluated for impairment
|
1,624
|
7,397
|
5,417
|
1,551
|
9,499
|
25,488
|
||||||||||||||||||
Balance, March 31, 2012
|
$
|
1,914
|
$
|
9,641
|
$
|
5,500
|
$
|
1,771
|
$
|
9,499
|
$
|
28,325
|
||||||||||||
Period-end amount allocated to:
|
||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
203
|
$
|
2,309
|
$
|
82
|
$
|
249
|
$
|
--
|
$
|
2,843
|
||||||||||||
Loans collectively evaluated for impairment
|
3,243
|
13,144
|
7,129
|
1,523
|
--
|
25,039
|
||||||||||||||||||
Balance, December 31, 2012
|
$
|
3,446
|
$
|
15,453
|
$
|
7,211
|
$
|
1,772
|
$
|
--
|
$
|
27,882
|
(In thousands)
|
Commercial
|
Real
Estate
|
Credit
Card
|
Other
Consumer
and Other
|
Total
|
|||||||||||||||
March 31, 2013
|
||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
813
|
$
|
23,413
|
$
|
494
|
$
|
1,032
|
$
|
25,752
|
||||||||||
Loans collectively evaluated for impairment
|
217,642
|
1,037,851
|
171,105
|
136,727
|
1,563,325
|
|||||||||||||||
Balance, end of period
|
$
|
218,455
|
$
|
1,061,264
|
$
|
171,599
|
$
|
137,759
|
$
|
1,589,077
|
||||||||||
December 31, 2012
|
||||||||||||||||||||
Loans individually evaluated for impairment
|
$
|
768
|
$
|
28,358
|
$
|
547
|
$
|
1,130
|
$
|
30,803
|
||||||||||
Loans collectively evaluated for impairment
|
234,373
|
1,034,847
|
184,989
|
143,501
|
1,597,710
|
|||||||||||||||
Balance, end of period
|
$
|
235,141
|
$
|
1,063,205
|
$
|
185,536
|
$
|
144,631
|
$
|
1,628,513
|
Loans Acquired
|
||||||||
(in thousands)
|
March 31,
2013
|
December 31,
2012
|
||||||
Consumer:
|
||||||||
Other consumer
|
$
|
1,049
|
$
|
1,847
|
||||
Total consumer
|
1,049
|
1,847
|
||||||
Real estate:
|
||||||||
Construction
|
22,135
|
19,172
|
||||||
Single family residential
|
77,524
|
90,795
|
||||||
Other commercial
|
147,351
|
160,148
|
||||||
Total real estate
|
247,010
|
270,115
|
||||||
Commercial:
|
||||||||
Commercial
|
12,223
|
18,950
|
||||||
Agricultural
|
--
|
2,694
|
||||||
Total commercial
|
12,223
|
21,644
|
||||||
Total loans acquired (1) (2)
|
$
|
260,282
|
$
|
293,606
|
(1)
|
These loans were not classified as non-performing assets at March 31, 2013 or December 31, 2012, as the loans are accounted for on a pooled basis and the pools are considered to be performing. Therefore, interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, is being recognized on all purchased impaired loans. The loans are grouped in pools sharing common risk characteristics and were treated in the aggregate when applying various valuation techniques.
|
(2)
|
Included in loans acquired were $181.5 million and $210.8 million of loans covered by FDIC loss share agreements at March 31, 2013 and December 31, 2012, respectively.
|
Three Months Ended
March 31,
|
||||||||
(In thousands)
|
2013
|
2012
|
||||||
Impact on net interest income
|
$
|
2,947
|
$
|
3,184
|
||||
Non-interest income
|
(2,828
|
)
|
(2,778
|
)
|
||||
Net impact to pre-tax income
|
119
|
406
|
||||||
Net impact, net of taxes
|
$
|
72
|
$
|
247
|
Three Months Ended
March 31, 2013
|
Three Months Ended
March 31, 2012
|
|||||||||||||||
(In thousands)
|
Accretable
Yield
|
Carrying
Amount of
Loans
|
Accretable
Yield
|
Carrying
Amount of
Loans
|
||||||||||||
Beginning balance
|
$
|
58,066
|
$
|
293,606
|
$
|
42,833
|
$
|
158,075
|
||||||||
Additions
|
--
|
--
|
--
|
--
|
||||||||||||
Accretable yield adjustments
|
--
|
--
|
--
|
--
|
||||||||||||
Accretion
|
(8,670
|
)
|
8,670
|
(5,973
|
)
|
5,973
|
||||||||||
Payments and other reductions, net
|
--
|
(41,994
|
)
|
--
|
(34,313
|
)
|
||||||||||
Balance, ending
|
$
|
49,396
|
$
|
260,282
|
$
|
36,860
|
$
|
129,735
|
Three Months Ended
March 31,
|
||||||||
(In thousands)
|
2013
|
2012
|
||||||
Beginning balance
|
$
|
4,854
|
$
|
3,419
|
||||
FDIC true-up provision recorded on new acquisitions
|
--
|
--
|
||||||
Amortization expense
|
43
|
28
|
||||||
Adjustments related to changes in expected losses
|
359
|
252
|
||||||
Balance, ending
|
$
|
5,256
|
$
|
3,699
|
(In thousands)
|
March 31,
2013
|
December 31,
2012
|
||||||
Goodwill
|
$
|
60,605
|
$
|
60,605
|
||||
Core deposit premiums:
|
||||||||
Gross carrying amount
|
$
|
5,401
|
$
|
5,597
|
||||
Accumulated amortization
|
(1,777
|
)
|
(1,837
|
)
|
||||
Net core deposit premiums
|
$
|
3,624
|
$
|
3,760
|
(In thousands)
|
Year
|
Amortization
Expense
|
|||
Remainder of 2013
|
$
|
377
|
|||
2014
|
410
|
||||
2015
|
403
|
||||
2016
|
401
|
||||
2017
|
401
|
||||
Thereafter
|
1,632
|
||||
Total
|
$
|
3,624
|
(In thousands)
|
March 31,
2013
|
March 31,
2012
|
||||||
Income taxes currently payable
|
$
|
3,896
|
$
|
1,529
|
||||
Deferred income taxes
|
(1,276
|
)
|
1,149
|
|
||||
Provision for income taxes
|
$
|
2,620
|
$
|
2,678
|
March 31,
|
December 31,
|
|||||||
(In thousands)
|
2013
|
2012
|
||||||
Deferred tax assets
|
||||||||
Loans acquired
|
$
|
21,433
|
$
|
24,186
|
||||
FDIC true-up liability
|
1,931
|
1,775
|
||||||
Allowance for loan losses
|
10,580
|
10,736
|
||||||
Valuation of foreclosed assets
|
251
|
669
|
||||||
Deferred compensation payable
|
1,690
|
1,676
|
||||||
FHLB advances
|
377
|
409
|
||||||
Vacation compensation
|
1,079
|
1,058
|
||||||
Accumulated depreciation
|
437
|
280
|
||||||
Loan interest
|
767
|
767
|
||||||
Other
|
583
|
569
|
||||||
Total deferred tax assets
|
39,128
|
42,125
|
||||||
Deferred tax liabilities
|
||||||||
Deferred loan fee income and expenses, net
|
(2,681
|
)
|
(2,373
|
)
|
||||
FHLB stock dividends
|
(296
|
)
|
(296
|
)
|
||||
Goodwill and core deposit premium amortization
|
(11,556
|
)
|
(11,190
|
)
|
||||
FDIC indemnification asset
|
(27,850
|
)
|
(31,846
|
)
|
||||
Available-for-sale securities
|
(29
|
)
|
(166
|
)
|
||||
Other
|
(2,492
|
)
|
(3,443
|
)
|
||||
Total deferred tax liabilities
|
(44,904
|
)
|
(49,314
|
)
|
||||
Net deferred tax liabilities included in other liabilities on balance sheets
|
$
|
(5,776
|
)
|
$
|
(7,189
|
)
|
(In thousands)
|
March 31,
2013
|
March 31,
2012
|
||||||
Computed at the statutory rate (35%)
|
$
|
3,005
|
$
|
3,161
|
||||
Increase (decrease) in taxes resulting from:
|
||||||||
State income taxes, net of federal tax benefit
|
239
|
238
|
||||||
Tax exempt interest income
|
(594
|
)
|
(670
|
)
|
||||
Tax exempt earnings on BOLI
|
(97
|
)
|
(124
|
)
|
||||
Other differences, net
|
67
|
73
|
||||||
Actual tax provision
|
$
|
2,620
|
$
|
2,678
|
(In thousands)
|
March 31,
2013
|
December 31,
2012
|
||||||
Other Borrowings
|
||||||||
FHLB advances, due 2013 to 2033, 0.96% to 8.41% secured by residential real estate loans
|
$
|
81,646
|
$
|
89,441
|
||||
Subordinated Debentures
|
||||||||
Trust preferred securities, due 12/30/2033, floating rate of 2.80% above the three month LIBOR rate, reset quarterly, callable without penalty
|
20,620
|
20,620
|
||||||
Total other borrowings and subordinated debentures
|
$
|
102,266
|
$
|
110,061
|
(In thousands)
|
Year
|
Annual
Maturities
|
|||
2013
|
$
|
7,895
|
|||
2014
|
11,908
|
||||
2015
|
10,650
|
||||
2016
|
9,030
|
||||
2017
|
21,778
|
||||
Thereafter
|
41,005
|
||||
Total
|
$
|
102,266
|
Stock Options
Outstanding
|
Non-Vested Stock
Awards Outstanding
|
|||||||||||||||
Number
of
Shares
|
Weighted
Average
Exercise
Price
|
Number
of
Shares
|
Weighted
Average
Grant-Date
Fair-Value
|
|||||||||||||
Balance, January 1, 2013
|
217,650
|
$
|
26.77
|
134,730
|
$
|
25.89
|
||||||||||
Granted
|
--
|
--
|
53,376
|
25.56
|
||||||||||||
Stock Options Exercised
|
(2,283
|
)
|
23.78
|
--
|
--
|
|||||||||||
Stock Awards Vested
|
--
|
--
|
(35,677
|
)
|
26.95
|
|||||||||||
Forfeited/Expired
|
(822
|
)
|
28.31
|
--
|
--
|
|||||||||||
Balance, March 31, 2013
|
214,545
|
$
|
26.79
|
152,429
|
$
|
25.52
|
||||||||||
Exercisable, March 31, 2013
|
206,017
|
$
|
26.65
|
Options Outstanding
|
Options Exercisable
|
|||||||||||||||||||||
Range of
Exercise Prices
|
Number
of Shares
|
Weighted
Average
Remaining
Contractual
Life (Years)
|
Weighted
Average
Exercise
Price
|
Number
of Shares
|
Weighted
Average
Exercise
Price
|
|||||||||||||||||
$23.78
|
-
|
$23.78
|
43,517
|
1.3
|
$
|
23.78
|
43,517
|
$
|
23.78
|
|||||||||||||
24.50
|
-
|
24.50
|
30,800
|
2.2
|
24.50
|
30,800
|
24.50
|
|||||||||||||||
26.19
|
-
|
27.67
|
49,800
|
3.0
|
26.20
|
49,800
|
26.20
|
|||||||||||||||
28.42
|
-
|
28.42
|
46,100
|
4.0
|
28.42
|
46,100
|
28.42
|
|||||||||||||||
30.31
|
-
|
30.31
|
44,328
|
5.0
|
30.31
|
35,800
|
30.31
|
Three Months Ended
March 31,
|
||||||||
(In thousands)
|
2013
|
2012
|
||||||
Interest paid
|
$
|
3,085
|
$
|
4,423
|
||||
Income taxes paid
|
379
|
2
|
||||||
Transfers of loans to foreclosed assets
|
3,153
|
3,181
|
||||||
Transfers of loans acquired, covered by FDIC loss share, to foreclosed assets covered by FDIC loss share
|
3,236
|
3,530
|
Three Months Ended
March 31,
|
||||||||
(In thousands)
|
2013
|
2012
|
||||||
Professional services
|
$
|
1,184
|
$
|
1,117
|
||||
Postage
|
662
|
627
|
||||||
Telephone
|
659
|
600
|
||||||
Credit card expense
|
1,658
|
1,692
|
||||||
Operating supplies
|
402
|
336
|
||||||
Amortization of core deposit premiums
|
137
|
74
|
||||||
Other expense
|
3,079
|
2,904
|
||||||
Total other operating expenses
|
$
|
7,781
|
$
|
7,350
|
·
|
Level 1 Inputs – Quoted prices in active markets for identical assets or liabilities.
|
·
|
Level 2 Inputs – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets; quoted prices for similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
|
·
|
Level 3 Inputs – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
|
Fair Value Measurements Using
|
||||||||||||||||
(In thousands)
|
Fair Value
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable Inputs
(Level 3)
|
||||||||||||
March 31, 2013
|
||||||||||||||||
ASSETS
|
||||||||||||||||
Available-for-sale securities
|
||||||||||||||||
U.S. Government agencies
|
$
|
159,846
|
$
|
--
|
$
|
159,846
|
$
|
--
|
||||||||
Mortgage-backed securities
|
15,891
|
--
|
15,891
|
--
|
||||||||||||
State and political subdivisions
|
1,417
|
--
|
1,417
|
--
|
||||||||||||
Other securities
|
15,011
|
1,504
|
13,507
|
--
|
||||||||||||
Assets held in trading accounts
|
8,368
|
1,650
|
6,718
|
--
|
||||||||||||
December 31, 2012
|
||||||||||||||||
ASSETS
|
||||||||||||||||
Available-for-sale securities
|
||||||||||||||||
U.S. Government agencies
|
$
|
152,481
|
$
|
--
|
$
|
152,481
|
$
|
--
|
||||||||
Mortgage-backed securities
|
20,634
|
--
|
20,634
|
--
|
||||||||||||
State and political subdivisions
|
2,988
|
--
|
2,988
|
--
|
||||||||||||
Other securities
|
15,239
|
1,504
|
13,735
|
--
|
||||||||||||
Assets held in trading accounts
|
6,224
|
1,800
|
4,424
|
--
|
Fair Value Measurements Using
|
||||||||||||||||
(In thousands)
|
Fair Value
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant Other
Observable Inputs
(Level 2)
|
Significant
Unobservable Inputs
(Level 3)
|
||||||||||||
March 31, 2013
|
||||||||||||||||
ASSETS
|
||||||||||||||||
Impaired loans (1) (2) (collateral dependent)
|
$
|
1,322
|
$
|
--
|
$
|
--
|
$
|
1,322
|
||||||||
Foreclosed assets held for sale (1)
|
281
|
--
|
--
|
281
|
||||||||||||
December 31, 2012
|
||||||||||||||||
ASSETS
|
||||||||||||||||
Impaired loans (1) (2) (collateral dependent)
|
$
|
4,900
|
$
|
--
|
$
|
--
|
$
|
4,900
|
||||||||
Foreclosed assets held for sale (1)
|
1,484
|
--
|
--
|
1,484
|
(1)
|
These amounts represent the resulting carrying amounts on the Consolidated Balance Sheets for impaired collateral dependent loans and foreclosed assets held for sale for which fair value re-measurements took place during the period.
|
(2)
|
Specific allocations of $45,000 and $219,000 were related to the impaired collateral dependent loans for which fair value re-measurements took place during the periods ended March 31, 2013 and December 31, 2012, respectively.
|
Carrying
|
Fair Value Measurements
|
|||||||||||||||||||
(In thousands)
|
Amount
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||||
March 31, 2013
|
||||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
642,998
|
$
|
642,998
|
$
|
--
|
$
|
--
|
$
|
642,998
|
||||||||||
Held-to-maturity securities
|
488,513
|
--
|
491,556
|
--
|
491,556
|
|||||||||||||||
Mortgage loans held for sale
|
19,100
|
--
|
--
|
19,100
|
19,100
|
|||||||||||||||
Interest receivable
|
13,027
|
--
|
13,027
|
--
|
13,027
|
|||||||||||||||
Loans
|
1,561,342
|
--
|
--
|
1,561,626
|
1,561,626
|
|||||||||||||||
Loans acquired, covered by FDIC loss share
|
181,537
|
--
|
--
|
179,752
|
179,752
|
|||||||||||||||
Loans acquired, not covered by FDIC loss share
|
78,745
|
--
|
--
|
83,111
|
83,111
|
|||||||||||||||
FDIC indemnification asset
|
71,002
|
--
|
--
|
71,002
|
71,002
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Non-interest bearing transaction accounts
|
592,442
|
--
|
592,442
|
--
|
592,442
|
|||||||||||||||
Interest bearing transaction accounts and savings deposits
|
1,456,005
|
--
|
1,456,005
|
--
|
1,456,005
|
|||||||||||||||
Time deposits
|
844,217
|
--
|
--
|
847,962
|
847,962
|
|||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase
|
108,227
|
--
|
108,227
|
--
|
108,227
|
|||||||||||||||
Other borrowings
|
81,646
|
--
|
86,816
|
--
|
86,816
|
|||||||||||||||
Subordinated debentures
|
20,620
|
--
|
15,793
|
--
|
15,793
|
|||||||||||||||
Interest payable
|
1,167
|
--
|
1,167
|
--
|
1,167
|
|||||||||||||||
December 31, 2012
|
||||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
537,797
|
$
|
537,797
|
$
|
--
|
$
|
--
|
$
|
537,797
|
||||||||||
Held-to-maturity securities
|
496,141
|
--
|
500,578
|
--
|
500,578
|
|||||||||||||||
Mortgage loans held for sale
|
25,367
|
--
|
--
|
25,367
|
25,367
|
|||||||||||||||
Interest receivable
|
14,530
|
--
|
14,530
|
--
|
14,530
|
|||||||||||||||
Loans
|
1,600,631
|
--
|
--
|
1,602,014
|
1,602,014
|
|||||||||||||||
Loans acquired, covered by FDIC loss share
|
210,842
|
--
|
--
|
208,685
|
208,685
|
|||||||||||||||
Loans acquired, not covered by FDIC loss share
|
82,764
|
--
|
--
|
82,764
|
82,764
|
|||||||||||||||
FDIC indemnification asset
|
75,286
|
--
|
--
|
75,286
|
75,286
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Non-interest bearing transaction accounts
|
576,655
|
--
|
576,655
|
--
|
576,655
|
|||||||||||||||
Interest bearing transaction accounts and savings deposits
|
1,421,137
|
--
|
1,421,137
|
--
|
1,421,137
|
|||||||||||||||
Time deposits
|
876,371
|
--
|
--
|
880,201
|
880,201
|
|||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase
|
104,078
|
--
|
104,078
|
--
|
104,078
|
|||||||||||||||
Other borrowings
|
89,441
|
--
|
94,472
|
--
|
94,472
|
|||||||||||||||
Subordinated debentures
|
20,620
|
--
|
15,414
|
--
|
15,414
|
|||||||||||||||
Interest payable
|
1,096
|
--
|
1,096
|
--
|
1,096
|
Three Months Ended
March 31,
|
||||||||
(In thousands)
|
2013
|
2012
|
||||||
Interest income
|
$
|
33,232
|
$
|
31,988
|
||||
FTE adjustment
|
1,073
|
1,203
|
||||||
Interest income – FTE
|
34,305
|
33,191
|
||||||
Interest expense
|
3,157
|
4,270
|
||||||
Net interest income – FTE
|
$
|
31,148
|
$
|
28,921
|
||||
Yield on earning assets – FTE
|
4.41
|
%
|
4.51
|
%
|
||||
Cost of interest bearing liabilities
|
0.51
|
%
|
0.73
|
%
|
||||
Net interest spread – FTE
|
3.90
|
%
|
3.78
|
%
|
||||
Net interest margin – FTE
|
4.01
|
%
|
3.93
|
%
|
(In thousands)
|
Three Months Ended
March 31,
2013 vs. 2012
|
|||
Increase due to change in earning assets
|
$
|
3,620
|
||
Decrease due to change in earning asset yields
|
(2,507
|
)
|
||
Increase due to change in interest bearing liabilities
|
69
|
|||
Increase due to change in interest rates paid on interest bearing liabilities
|
1,044
|
|||
Increase in net interest income
|
$
|
2,226
|
Three Months Ended March 31,
|
||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
Average
|
Income/
|
Yield/
|
Average
|
Income/
|
Yield/
|
|||||||||||||||||||
($ in thousands)
|
Balance
|
Expense
|
Rate (%)
|
Balance
|
Expense
|
Rate (%)
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Earning assets:
|
||||||||||||||||||||||||
Interest bearing balances due from banks
|
$
|
560,759
|
$
|
290
|
0.21
|
$
|
576,416
|
$
|
303
|
0.21
|
||||||||||||||
Federal funds sold
|
8,487
|
3
|
0.14
|
281
|
--
|
0.00
|
||||||||||||||||||
Investment securities - taxable
|
488,148
|
1,222
|
1.02
|
459,164
|
1,378
|
1.21
|
||||||||||||||||||
Investment securities - non-taxable
|
200,985
|
2,742
|
5.53
|
209,361
|
3,089
|
5.93
|
||||||||||||||||||
Mortgage loans held for sale
|
19,442
|
155
|
3.23
|
17,076
|
153
|
3.60
|
||||||||||||||||||
Assets held in trading accounts
|
8,525
|
11
|
0.52
|
6,845
|
12
|
0.71
|
||||||||||||||||||
Loans, not covered by loss share
|
1,669,054
|
23,707
|
5.76
|
1,550,341
|
22,283
|
5.78
|
||||||||||||||||||
Loans acquired, covered by loss share
|
196,190
|
6,175
|
12.76
|
141,563
|
5,973
|
16.97
|
||||||||||||||||||
Total interest earning assets
|
3,151,590
|
34,305
|
4.41
|
2,961,047
|
33,191
|
4.51
|
||||||||||||||||||
Non-earning assets
|
387,226
|
318,638
|
||||||||||||||||||||||
Total assets
|
$
|
3,538,816
|
$
|
3,279,685
|
||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||||||
Interest bearing liabilities
|
||||||||||||||||||||||||
Interest bearing transaction and savings accounts
|
$
|
1,446,533
|
$
|
611
|
0.17
|
$
|
1,252,972
|
$
|
696
|
0.22
|
||||||||||||||
Time deposits
|
858,692
|
1,588
|
0.75
|
863,522
|
2,269
|
1.06
|
||||||||||||||||||
Total interest bearing deposits
|
2,305,225
|
2,199
|
0.39
|
2,116,494
|
2,965
|
0.56
|
||||||||||||||||||
Federal funds purchased and securities sold under agreement to repurchase
|
118,131
|
65
|
0.22
|
108,841
|
99
|
0.37
|
||||||||||||||||||
Other borrowings
|
83,872
|
734
|
3.55
|
89,920
|
815
|
3.65
|
||||||||||||||||||
Subordinated debentures
|
20,620
|
159
|
3.13
|
30,930
|
391
|
5.08
|
||||||||||||||||||
Total interest bearing liabilities
|
2,527,848
|
3,157
|
0.51
|
2,346,185
|
4,270
|
0.73
|
||||||||||||||||||
Non-interest bearing liabilities:
|
||||||||||||||||||||||||
Non-interest bearing deposits
|
567,588
|
494,366
|
||||||||||||||||||||||
Other liabilities
|
34,486
|
27,417
|
||||||||||||||||||||||
Total liabilities
|
3,129,922
|
2,867,968
|
||||||||||||||||||||||
Stockholders’ equity
|
408,894
|
411,717
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
3,538,816
|
$
|
3,279,685
|
||||||||||||||||||||
Net interest spread
|
3.90
|
3.78
|
||||||||||||||||||||||
Net interest margin
|
$
|
31,148
|
4.01
|
$
|
28,921
|
3.93
|
Three Months Ended
March 31,
|
||||||||||||
2013 over 2012
|
||||||||||||
(In thousands, on a fully
|
Yield/
|
|||||||||||
taxable equivalent basis)
|
Volume
|
Rate
|
Total
|
|||||||||
Increase (decrease) in:
|
||||||||||||
Interest income:
|
||||||||||||
Interest bearing balances due from banks
|
$
|
(8
|
)
|
$
|
(5
|
)
|
$
|
(13
|
)
|
|||
Federal funds sold
|
3
|
--
|
3
|
|||||||||
Investment securities - taxable
|
83
|
(239
|
)
|
(156
|
)
|
|||||||
Investment securities - non-taxable
|
(121
|
)
|
(226
|
)
|
(347
|
)
|
||||||
Mortgage loans held for sale
|
20
|
(18
|
)
|
2
|
||||||||
Assets held in trading accounts
|
2
|
(4
|
)
|
(2
|
)
|
|||||||
Loans, not covered by loss share
|
1,689
|
(265
|
)
|
1,424
|
||||||||
Loans acquired, covered by loss share
|
1,952
|
(1,750
|
)
|
202
|
||||||||
Total
|
3,620
|
(2,507
|
)
|
1,113
|
||||||||
Interest expense:
|
||||||||||||
Interest bearing transaction and savings accounts
|
98
|
(183
|
)
|
(85
|
)
|
|||||||
Time deposits
|
(13
|
)
|
(668
|
)
|
(681
|
)
|
||||||
Federal funds purchased and securities sold under agreements to repurchase
|
7
|
(41
|
)
|
(34
|
)
|
|||||||
Other borrowings
|
(54
|
)
|
(27
|
)
|
(81
|
)
|
||||||
Subordinated debentures
|
(107
|
)
|
(125
|
)
|
(232
|
)
|
||||||
Total
|
(69
|
)
|
(1,044
|
)
|
(1,113
|
)
|
||||||
Increase (decrease) in net interest income
|
$
|
3,689
|
$
|
(1,463
|
)
|
$
|
2,226
|
Three Months
|
2013
|
|||||||||||||||
Ended March 31
|
Change from
|
|||||||||||||||
(In thousands)
|
2013
|
2012
|
2012
|
|||||||||||||
Trust income
|
$
|
1,444
|
$
|
1,309
|
$
|
135
|
10.31
|
%
|
||||||||
Service charges on deposit accounts
|
4,241
|
3,865
|
376
|
9.73
|
||||||||||||
Other service charges and fees
|
775
|
792
|
(17
|
)
|
-2.15
|
|||||||||||
Mortgage lending income
|
1,216
|
1,294
|
(78
|
)
|
-6.03
|
|||||||||||
Investment banking income
|
454
|
699
|
(245
|
)
|
-35.05
|
|||||||||||
Credit card fees
|
4,039
|
4,079
|
(40
|
)
|
-0.98
|
|||||||||||
Bank owned life insurance income
|
278
|
355
|
(77
|
)
|
-21.69
|
|||||||||||
Net gain (loss) on assets covered by FDIC loss share agreements
|
(2,142
|
)
|
(2,665
|
)
|
523
|
19.62
|
||||||||||
Other income
|
1,008
|
995
|
13
|
1.31
|
||||||||||||
Total non-interest income
|
$
|
11,313
|
$
|
10,723
|
$
|
590
|
5.50
|
%
|
Three Months
|
2013
|
|||||||||||||||
Ended March 31
|
Change from
|
|||||||||||||||
(In thousands)
|
2013
|
2012
|
2012
|
|||||||||||||
Salaries and employee benefits
|
$
|
18,507
|
$
|
16,824
|
$
|
1,683
|
10.00
|
%
|
||||||||
Occupancy expense, net
|
2,555
|
2,081
|
474
|
22.78
|
||||||||||||
Furniture and equipment expense
|
1,723
|
1,604
|
119
|
7.42
|
||||||||||||
Other real estate and foreclosure expense
|
331
|
207
|
124
|
59.90
|
||||||||||||
Deposit insurance
|
775
|
571
|
204
|
35.73
|
||||||||||||
Merger related costs
|
240
|
--
|
240
|
100.00
|
||||||||||||
Other operating expenses:
|
||||||||||||||||
Professional services
|
1,184
|
1,117
|
67
|
6.00
|
||||||||||||
Postage
|
662
|
627
|
35
|
5.58
|
||||||||||||
Telephone
|
659
|
600
|
59
|
9.83
|
||||||||||||
Credit card expenses
|
1,658
|
1,692
|
(34
|
)
|
-2.01
|
|||||||||||
Operating supplies
|
402
|
336
|
66
|
19.64
|
||||||||||||
Amortization of intangibles
|
137
|
74
|
63
|
85.14
|
||||||||||||
Other expense
|
3,079
|
2,904
|
175
|
6.03
|
||||||||||||
Total non-interest expense
|
$
|
31,912
|
$
|
28,637
|
$
|
3,275
|
11.44
|
%
|
(In thousands)
|
March 31,
2013
|
December 31,
2012
|
||||||
Consumer:
|
||||||||
Credit cards
|
$
|
171,599
|
$
|
185,536
|
||||
Student loans
|
31,835
|
34,145
|
||||||
Other consumer
|
102,297
|
105,319
|
||||||
Total consumer
|
305,731
|
325,000
|
||||||
Real estate:
|
||||||||
Construction
|
136,099
|
138,132
|
||||||
Single family residential
|
355,479
|
356,907
|
||||||
Other commercial
|
569,686
|
568,166
|
||||||
Total real estate
|
1,061,264
|
1,063,205
|
||||||
Commercial:
|
||||||||
Commercial
|
150,407
|
141,336
|
||||||
Agricultural
|
68,048
|
93,805
|
||||||
Total commercial
|
218,455
|
235,141
|
||||||
Other
|
3,627
|
5,167
|
||||||
Total loans, excluding loans acquired, before allowance for loan losses
|
$
|
1,589,077
|
$
|
1,628,513
|
(In thousands)
|
March 31,
2013
|
December 31,
2012
|
||||||
Loans acquired, covered by FDIC loss share (net of discount)
|
$
|
181,537
|
$
|
210,842
|
||||
Foreclosed assets covered by FDIC loss share
|
28,003
|
27,620
|
||||||
FDIC indemnification asset
|
71,002
|
75,286
|
||||||
Total covered assets
|
$
|
280,542
|
$
|
313,748
|
||||
Loans acquired, not covered by FDIC loss share (net of discount)
|
$
|
78,745
|
$
|
82,764
|
||||
Foreclosed assets acquired, not covered by FDIC loss share
|
9,461
|
11,796
|
||||||
Total assets acquired, not covered by FDIC loss share
|
$
|
88,206
|
$
|
94,560
|
($ in thousands)
|
March 31,
2013
|
December 31,
2012
|
||||||
Nonaccrual loans (1)
|
$
|
8,768
|
$
|
9,123
|
||||
Loans past due 90 days or more (principal or interest payments):
|
||||||||
Government guaranteed student loans (2)
|
2,284
|
2,234
|
||||||
Other loans
|
660
|
681
|
||||||
Total loans past due 90 days or more
|
2,944
|
2,915
|
||||||
Total non-performing loans
|
11,712
|
12,038
|
||||||
Other non-performing assets:
|
||||||||
Foreclosed assets held for sale
|
21,253
|
21,556
|
||||||
Acquired foreclosed assets held for sale, not covered by loss share
|
9,461
|
11,796
|
||||||
Other non-performing assets
|
238
|
221
|
||||||
Total other non-performing assets
|
30,952
|
33,573
|
||||||
Total non-performing assets
|
$
|
42,664
|
$
|
45,611
|
||||
Performing TDRs
|
$
|
10,745
|
$
|
11,015
|
||||
Allowance for loan losses to non-performing loans
|
237
|
%
|
232
|
%
|
||||
Non-performing loans to total loans
|
0.74
|
%
|
0.74
|
%
|
||||
Non-performing loans to total loans (excluding Government guaranteed student loans) (2)
|
0.52
|
%
|
0.60
|
%
|
||||
Non-performing assets to total assets (3)
|
1.20
|
%
|
1.29
|
%
|
||||
Non-performing assets to total assets (excluding Government guaranteed student loans) (2) (3)
|
1.14
|
%
|
1.23
|
%
|
(1)
|
Includes nonaccrual TDRs of approximately $3.1 million at March 31, 2013 and December 31, 2012.
|
(2)
|
Student loans past due 90 days or more are included in non-performing loans. Student loans are Government guaranteed and will be purchased at 97% of principal and accrued interest when they exceed 270 days past due; therefore, non-performing ratios have been calculated excluding these loans.
|
(3)
|
Excludes all loans acquired and excludes foreclosed assets acquired, covered by FDIC loss share agreements, except for their inclusion in total assets.
|
(In thousands)
|
2013
|
2012
|
||||||
Balance, beginning of year
|
$
|
27,882
|
$
|
30,108
|
||||
Loans charged off:
|
||||||||
Credit card
|
909
|
997
|
||||||
Other consumer
|
374
|
226
|
||||||
Real estate
|
239
|
2,539
|
||||||
Commercial
|
96
|
129
|
||||||
Total loans charged off
|
1,618
|
3,891
|
||||||
Recoveries of loans previously charged off:
|
||||||||
Credit card
|
236
|
210
|
||||||
Other consumer
|
195
|
156
|
||||||
Real estate
|
68
|
930
|
||||||
Commercial
|
53
|
41
|
||||||
Total recoveries
|
552
|
1,337
|
||||||
Net loans charged off
|
1,066
|
2,554
|
||||||
Provision for loan losses
|
919
|
771
|
||||||
Balance, March 31
|
$
|
27,735
|
28,325
|
|||||
Loans charged off:
|
||||||||
Credit card
|
2,519
|
|||||||
Other consumer
|
972
|
|||||||
Real estate
|
1,556
|
|||||||
Commercial
|
414
|
|||||||
Total loans charged off
|
5,461
|
|||||||
Recoveries of loans previously charged off:
|
||||||||
Credit card
|
648
|
|||||||
Other consumer
|
419
|
|||||||
Real estate
|
453
|
|||||||
Commercial
|
129
|
|||||||
Total recoveries
|
1,649
|
|||||||
Net loans charged off
|
3,812
|
|||||||
Provision for loan losses
|
3,369
|
|||||||
Balance, end of year
|
$
|
27,882
|
March 31, 2013
|
December 31, 2012
|
|||||||||||||||
Allowance
|
% of
|
Allowance
|
% of
|
|||||||||||||
($ in thousands)
|
Amount
|
loans (1)
|
Amount
|
loans (1)
|
||||||||||||
Credit cards
|
$
|
6,799
|
10.8
|
%
|
$
|
7,211
|
11.4
|
%
|
||||||||
Other consumer
|
1,125
|
8.4
|
%
|
1,574
|
8.6
|
%
|
||||||||||
Real estate
|
16,131
|
66.8
|
%
|
15,453
|
65.3
|
%
|
||||||||||
Commercial
|
3,532
|
13.8
|
%
|
3,446
|
14.4
|
%
|
||||||||||
Other
|
148
|
0.2
|
%
|
198
|
0.3
|
%
|
||||||||||
Total
|
$
|
27,735
|
100.0
|
%
|
$
|
27,882
|
100.0
|
%
|
March 31,
|
December 31,
|
|||||||
($ in thousands)
|
2013
|
2012
|
||||||
Tier 1 capital:
|
||||||||
Stockholders’ equity
|
$
|
406,454
|
$
|
406,062
|
||||
Trust preferred securities
|
20,000
|
20,000
|
||||||
Goodwill and core deposit premiums
|
(48,529
|
)
|
(48,966
|
)
|
||||
Unrealized gain on available-for-sale securities, net of income taxes
|
(45
|
)
|
(257
|
)
|
||||
Total Tier 1 capital
|
377,880
|
376,839
|
||||||
Tier 2 capital:
|
||||||||
Qualifying unrealized gain on available-for-sale equity securities
|
28
|
19
|
||||||
Qualifying allowance for loan losses
|
24,129
|
24,743
|
||||||
Total Tier 2 capital
|
24,157
|
24,762
|
||||||
Total risk-based capital
|
$
|
402,037
|
$
|
401,601
|
||||
Risk weighted assets
|
$
|
1,925,199
|
$
|
1,974,800
|
||||
Assets for leverage ratio
|
$
|
3,490,102
|
$
|
3,484,504
|
||||
Ratios at end of period:
|
||||||||
Tier 1 leverage ratio
|
10.83
|
%
|
10.81
|
%
|
||||
Tier 1 risk-based capital ratio
|
19.63
|
%
|
19.08
|
%
|
||||
Total risk-based capital ratio
|
20.88
|
%
|
20.34
|
%
|
||||
Minimum guidelines:
|
||||||||
Tier 1 leverage ratio
|
4.00
|
%
|
4.00
|
%
|
||||
Tier 1 risk-based capital ratio
|
4.00
|
%
|
4.00
|
%
|
||||
Total risk-based capital ratio
|
8.00
|
%
|
8.00
|
%
|
||||
Well capitalized guidelines:
|
||||||||
Tier 1 leverage ratio
|
5.00
|
%
|
5.00
|
%
|
||||
Tier 1 risk-based capital ratio
|
6.00
|
%
|
6.00
|
%
|
||||
Total risk-based capital ratio
|
10.00
|
%
|
10.00
|
%
|
Three Months Ended
March 31,
|
||||||||
($ in thousands)
|
2013
|
2012
|
||||||
Net Income
|
$
|
5,937
|
$
|
6,355
|
||||
Nonrecurring items:
|
||||||||
Merger related costs
|
240
|
--
|
||||||
Tax effect (1)
|
(94
|
)
|
--
|
|||||
Net nonrecurring items
|
146
|
--
|
||||||
Core earnings (non-GAAP)
|
$
|
6,083
|
$
|
6,355
|
||||
Diluted earnings per share
|
$
|
0.36
|
$
|
0.37
|
||||
Nonrecurring items:
|
||||||||
Merger related costs
|
0.01
|
--
|
||||||
Tax effect (1)
|
--
|
--
|
||||||
Net nonrecurring items
|
0.01
|
--
|
||||||
Diluted core earnings per share (non-GAAP)
|
$
|
0.37
|
$
|
0.37
|
Interest Rate Sensitivity Period
|
||||||||||||||||||||||||||||||||
(In thousands, except ratios)
|
0-30
Days
|
31-90
Days
|
91-180
Days
|
181-365
Days
|
1-2
Years
|
2-5
Years
|
Over 5
Years
|
Total
|
||||||||||||||||||||||||
Earning assets:
|
||||||||||||||||||||||||||||||||
Short-term investments
|
$
|
602,992
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
--
|
$
|
602,992
|
||||||||||||||||
Assets held in trading accounts
|
4,368
|
1,000
|
--
|
1,000
|
2,000
|
--
|
--
|
8,368
|
||||||||||||||||||||||||
Investment securities
|
129,878
|
133,802
|
112,803
|
100,690
|
21,198
|
48,876
|
133,431
|
680,678
|
||||||||||||||||||||||||
Mortgage loans held for sale
|
19,100
|
--
|
--
|
--
|
--
|
--
|
--
|
19,100
|
||||||||||||||||||||||||
Loans
|
501,691
|
109,888
|
136,774
|
204,701
|
248,057
|
355,335
|
32,631
|
1,589,077
|
||||||||||||||||||||||||
Loans acquired, not covered
|
109,482
|
21,588
|
10,376
|
18,747
|
14,081
|
7,263
|
--
|
181,537
|
||||||||||||||||||||||||
Loans acquired, covered
|
28,708
|
7,073
|
4,929
|
11,432
|
19,905
|
5,794
|
904
|
78,745
|
||||||||||||||||||||||||
Total earning assets
|
1,396,219
|
273,351
|
264,882
|
336,570
|
305,241
|
417,268
|
166,966
|
3,160,497
|
||||||||||||||||||||||||
Interest bearing liabilities:
|
||||||||||||||||||||||||||||||||
Interest bearing transaction and savings deposits
|
796,510
|
--
|
--
|
--
|
131,899
|
395,697
|
131,899
|
1,456,005
|
||||||||||||||||||||||||
Time deposits
|
69,034
|
131,353
|
174,552
|
258,114
|
134,506
|
76,611
|
47
|
844,217
|
||||||||||||||||||||||||
Short-term debt
|
108,227
|
--
|
--
|
--
|
--
|
--
|
--
|
108,227
|
||||||||||||||||||||||||
Long-term debt
|
21,890
|
3,154
|
1,444
|
8,429
|
6,962
|
38,186
|
22,201
|
102,266
|
||||||||||||||||||||||||
Total interest bearing liabilities
|
995,661
|
134,507
|
175,996
|
266,543
|
273,367
|
510,494
|
154,147
|
2,510,715
|
||||||||||||||||||||||||
Interest rate sensitivity Gap
|
$
|
400,558
|
$
|
138,844
|
$
|
88,886
|
$
|
70,027
|
$
|
31,874
|
$
|
(93,226
|
)
|
$
|
12,819
|
$
|
649,782
|
|||||||||||||||
Cumulative interest rate sensitivity Gap
|
$
|
400,558
|
$
|
539,402
|
$
|
628,288
|
$
|
698,315
|
$
|
730,189
|
$
|
636,963
|
$
|
649,782
|
||||||||||||||||||
Cumulative rate sensitive assets to rate sensitive liabilities
|
140.2
|
%
|
147.7
|
%
|
148.1
|
%
|
144.4
|
%
|
139.6
|
%
|
127.0
|
%
|
125.9
|
%
|
||||||||||||||||||
Cumulative Gap as a % of earning assets
|
12.7
|
%
|
17.1
|
%
|
19.9
|
%
|
22.1
|
%
|
23.1
|
%
|
20.2
|
%
|
20.6
|
%
|
Period
|
Total Number
of Shares
Purchased
|
Average
Price Paid
Per Share
|
Total Number
of Shares
Purchased as
Part of Publicly
Announced Plans
|
Maximum
Number of
Shares that May
Yet be Purchased
Under the Plans
|
||||||||||||
January 1 – January 31
|
52,299
|
$
|
25.58
|
52,299
|
521,401
|
|||||||||||
February 1 – February 28
|
22,000
|
25.58
|
22,000
|
499,401
|
||||||||||||
March 1 – March 31
|
19,716
|
25.63
|
19,716
|
479,685
|
||||||||||||
Total
|
94,015
|
$
|
25.59
|
94,015
|
|
2.1
|
Purchase and Assumption Agreement, dated as of May 14, 2010, among Federal Insurance Deposit Corporation, Receiver of Southwest Community Bank, Springfield, Missouri, Federal Deposit Insurance Corporation and Simmons First National Bank (incorporated by reference to Exhibit 2.1 to Simmons First National Corporation’s Current Report on Form 8-K, as amended, for May 19, 2010 (File No. 000-06253)).
|
|
2.2
|
Purchase and Assumption Agreement, dated as of October 15, 2010, among Federal Insurance Deposit Corporation, Receiver of Security Savings Bank F.S.B., Olathe, Kansas, Federal Deposit Insurance Corporation and Simmons First National Bank (incorporated by reference to Exhibit 2.1 to Simmons First National Corporation’s Current Report on Form 8-K, as amended, for October 21, 2010 (File No. 000-06253)).
|
|
2.3
|
Purchase and Assumption Agreement Whole Bank All Deposits, among Federal Insurance Deposit Corporation, Receiver of Truman Bank, St. Louis, Missouri, Federal Deposit Insurance Corporation, and Simmons First National Bank, Pine Bluff, Arkansas, dated as of September 14, 2012 (incorporated by reference to Exhibit 2.1 to Simmons First National Corporation’s Current Report on Form 8-K, as amended, for September 20, 2012 (File No. 000-06253)).
|
|
2.4
|
Loan Sale Agreement, by and between Federal Deposit Insurance Corporation, as Receiver for Truman Bank, St. Louis, Missouri, and Simmons First National Bank, Pine Bluff, Arkansas, dated as of September 14, 2012 (incorporated by reference to Exhibit 2.2 to Simmons First National Corporation’s Current Report on Form 8-K, as amended, for September 20, 2012 (File No. 000-06253)).
|
|
2.5
|
Purchase and Assumption Agreement Whole Bank All Deposits, among Federal Insurance Deposit Corporation, Receiver of Excel Bank, Sedalia, Missouri, Federal Deposit Insurance Corporation, and Simmons First National Bank, Pine Bluff, Arkansas, dated as of October 19, 2012 (incorporated by reference to Exhibit 2.1 to Simmons First National Corporation’s Current Report on Form 8-K, as amended, for October 25, 2012 (File No. 000-06253)).
|
|
3.1
|
Restated Articles of Incorporation of Simmons First National Corporation (incorporated by reference to Exhibit 3.1 to Simmons First National Corporation’s Quarterly Report on Form 10-Q for the Quarter ended March 31, 2009 (File No. 000-06253)).
|
|
3.2
|
Amended By-Laws of Simmons First National Corporation (incorporated by reference to Exhibit 3.2 to Simmons First National Corporation’s Annual Report on Form 10-K for the Year ended December 31, 2007 (File No. 000-06253)).
|
|
10.1
|
Amended and Restated Trust Agreement, dated as of December 16, 2003, among the Company, Deutsche Bank Trust Company Americas, Deutsche Bank Trust Company Delaware and each of J. Thomas May, Barry L. Crow and Robert A. Fehlman as administrative trustees, with respect to Simmons First Capital Trust II (incorporated by reference to Exhibit 10.1 to Simmons First National Corporation’s Annual Report on Form 10-K for the Year ended December 31, 2003 (File No. 000-06253)).
|
|
10.2
|
Guarantee Agreement, dated as of December 16, 2003, between the Company and Deutsche Bank Trust Company Americas, as guarantee trustee, with respect to Simmons First Capital Trust II (incorporated by reference to Exhibit 10.2 to Simmons First National Corporation’s Annual Report on Form 10-K for the Year ended December 31, 2003 (File No. 000-06253)).
|
|
10.3
|
Junior Subordinated Indenture, dated as of December 16, 2003, among the Company and Deutsche Bank Trust Company Americas, as trustee, with respect to the junior subordinated note held by Simmons First Capital Trust II (incorporated by reference to Exhibit 10.3 to Simmons First National Corporation’s Annual Report on Form 10-K for the Year ended December 31, 2003 (File No. 000-06253)).
|
|
10.4
|
Amended and Restated Trust Agreement, dated as of December 16, 2003, among the Company, Deutsche Bank Trust Company Americas, Deutsche Bank Trust Company Delaware and each of J. Thomas May, Barry L. Crow and Robert A. Fehlman as administrative trustees, with respect to Simmons First Capital Trust III (incorporated by reference to Exhibit 10.4 to Simmons First National Corporation’s Annual Report on Form 10-K for the Year ended December 31, 2003 (File No. 000-06253)).
|
|
10.5
|
Guarantee Agreement, dated as of December 16, 2003, between the Company and Deutsche Bank Trust Company Americas, as guarantee trustee, with respect to Simmons First Capital Trust III (incorporated by reference to Exhibit 10.5 to Simmons First National Corporation’s Annual Report on Form 10-K for the Year ended December 31, 2003 (File No. 000-06253)).
|
|
10.6
|
Junior Subordinated Indenture, dated as of December 16, 2003, among the Company and Deutsche Bank Trust Company Americas, as trustee, with respect to the junior subordinated note held by Simmons First Capital Trust III (incorporated by reference to Exhibit 10.6 to Simmons First National Corporation’s Annual Report on Form 10-K for the Year ended December 31, 2003 (File No. 000-06253)).
|
|
10.7
|
Amended and Restated Trust Agreement, dated as of December 16, 2003, among the Company, Deutsche Bank Trust Company Americas, Deutsche Bank Trust Company Delaware and each of J. Thomas May, Barry L. Crow and Robert A. Fehlman as administrative trustees, with respect to Simmons First Capital Trust IV (incorporated by reference to Exhibit 10.7 to Simmons First National Corporation’s Annual Report on Form 10-K for the Year ended December 31, 2003 (File No. 000-06253)).
|
|
10.8
|
Guarantee Agreement, dated as of December 16, 2003, between the Company and Deutsche Bank Trust Company Americas, as guarantee trustee, with respect to Simmons First Capital Trust IV (incorporated by reference to Exhibit 10.8 to Simmons First National Corporation’s Annual Report on Form 10-K for the Year ended December 31, 2003 (File No. 000-06253)).
|
|
10.9
|
Junior Subordinated Indenture, dated as of December 16, 2003, among the Company and Deutsche Bank Trust Company Americas, as trustee, with respect to the junior subordinated note held by Simmons First Capital Trust IV (incorporated by reference to Exhibit 10.9 to Simmons First National Corporation’s Annual Report on Form 10-K for the Year ended December 31, 2003 (File No. 000-06253)).
|
|
10.10
|
Notice of discretionary bonuses to J. Thomas May, David L. Bartlett, Robert A. Fehlman, Marty D. Casteel and Robert C. Dill (incorporated by reference to Simmons First National Corporation’s Current Report on Form 8-K for January 25, 2010 (File No. 000-06253)).
|
|
10.11
|
Deferred Compensation Agreements, adopted January 25, 2010, between Simmons First National Corporation and Robert A. Fehlman and Marty D. Casteel (incorporated by reference to Exhibits 10.2 and 10.3 to Simmons First National Corporation’s Current Report on Form 8-K for January 25, 2010 (File No. 000-06253)).
|
|
10.12
|
Simmons First National Corporation Executive Retention Program, adopted January 25, 2010, and notice of retention bonuses to David Bartlett, Robert A. Fehlman and Marty D. Casteel (incorporated by reference to Exhibit 10.4 to Simmons First National Corporation’s Current Report on Form 8-K for January 25, 2010 (File No. 000-06253)).
|
|
10.13
|
Simmons First National Corporation Executive Stock Incentive Plan – 2010, adopted January 25, 2010 (incorporated by reference to Exhibit 10.5 to Simmons First National Corporation’s Current Report on Form 8-K for January 25, 2010 (File No. 000-06253)).
|
|
10.14
|
Deferred Compensation Agreement for Marty D. Casteel (incorporated by reference to Exhibit 10.3 to Simmons First National Corporation’s Current Report on Form 8-K for January 25, 2010 (File No. 000-06253)).
|
|
10.15
|
Simmons First National Corporation Executive Retention Program (incorporated by reference to Exhibit 10.4 to Simmons First National Corporation’s Current Report on Form 8-K for January 25, 2010 (File No. 000-06253)).
|
|
10.16
|
Simmons First National Corporation Executive Stock Incentive Plan - 2010 (incorporated by reference to Exhibit 10.5 to Simmons First National Corporation’s Current Report on Form 8-K for January 25, 2010 (File No. 000-06253)).
|
|
10.17
|
Change in Control Agreement for J. Thomas May (incorporated by reference to Exhibit 10(a) to Simmons First National Corporation’s Quarterly Report on Form 10-Q filed August 9, 2001 (File No. 000-06253)).
|
|
10.18
|
Change in Control Agreement for Robert A. Fehlman (incorporated by reference to Exhibit 10.3 to Simmons First National Corporation’s Current Report on Form 8-K filed January 29, 2010 (File No. 000-06253)).
|
|
10.19
|
Change in Control Agreement for David Bartlett (incorporated by reference to Exhibit 10.1 to Simmons First National Corporation’s Current Report on Form 8-K filed March 2, 2006 (File No. 000-06253)).
|
|
10.20
|
Change in Control Agreement for Marty D. Casteel (incorporated by reference to Exhibit 10.2 to Simmons First National Corporation’s Current Report on Form 8-K filed January 29, 2010 (File No. 000-06253)).
|
|
10.21
|
Change in Control Agreement for Robert Dill (incorporated by reference to Exhibit 10.21 to Simmons First National Corporation’s Amendment to the Annual Report on Form 10-K/A for the Year ended December 31, 2009 (File No. 000-06253)).
|
|
10.22
|
Amendment to Change in Control Agreement for Robert C. Dill (incorporated by reference to Exhibit 10.22 to Simmons First National Corporation’s Amendment to the Annual Report on Form 10-K/A for the Year ended December 31, 2009 (File No. 000-06253)).
|
|
10.23
|
Amended and Restated Deferred Compensation Agreement for J. Thomas May (incorporated by reference to Exhibit 10.23 to Simmons First National Corporation’s Amendment to the Annual Report on Form 10-K/A for the Year ended December 31, 2009 (File No. 000-06253)).
|
|
10.24
|
First Amendment to the Amended and Restated Deferred Compensation Agreement for J. Thomas May (incorporated by reference to Exhibit 10.24 to Simmons First National Corporation’s Amendment to the Annual Report on Form 10-K/A for the Year ended December 31, 2009 (File No. 000-06253)).
|
|
10.25
|
Second Amendment to the Amended and Restated Deferred Compensation Agreement for J. Thomas May (incorporated by reference to Exhibit 10.25 to Simmons First National Corporation’s Amendment to the Annual Report on Form 10-K/A for the Year ended December 31, 2009 (File No. 000-06253)).
|
|
10.26
|
Executive Salary Continuation Agreement for David L. Bartlett (incorporated by reference to Exhibit 10.26 to Simmons First National Corporation’s Amendment to the Annual Report on Form 10-K/A for the Year ended December 31, 2009 (File No. 000-06253)).
|
|
10.27
|
409A Amendment to the Simmons First Bank of Hot Springs Executive Salary Continuation Agreement for David Bartlett (incorporated by reference to Exhibit 10.27 to Simmons First National Corporation’s Amendment to the Annual Report on Form 10-K/A for the Year ended December 31, 2009 (File No. 000-06253)).
|
|
10.28
|
Simmons First National Corporation Incentive and Non-Qualified Stock Option Plan (incorporated by reference to Exhibit 4.1 to Simmons First National Corporation’s Registration Statement on Form S-8 filed May 19, 2006 (File No. 333-134276)).
|
|
10.29
|
Simmons First National Corporation Executive Stock Incentive Plan (incorporated by reference to Exhibit 4.1 to Simmons First National Corporation’s Registration Statement on Form S-8 filed May 19, 2006 (File No. 333-134301)).
|
|
10.30
|
Simmons First National Corporation Executive Stock Incentive Plan – 2001 (incorporated by reference to Definitive Additional Materials to Simmons First National Corporation’s Definitive Proxy Materials on Schedule 14A filed April 2, 2001 (File No. 000-06253)).
|
|
10.31
|
Simmons First National Corporation Executive Stock Incentive Plan – 2006 (incorporated by reference to Exhibit 1.2 to Simmons First National Corporation’s Definitive Proxy Materials on Schedule 14A filed March 10, 2006 (File No. 000-06253)).
|
|
10.32
|
First Amendment to Simmons First National Corporation Executive Stock Incentive Plan – 2006 (incorporated by reference to Exhibit 10.1 to Simmons First National Corporation’s Current Report on Form 8-K filed June 4, 2007 (File No. 000-06253)).
|
|
10.33
|
Simmons First National Corporation Outside Director's Stock Incentive Plan - 2006 (incorporated by reference to Exhibit 1.3 to Simmons First National Corporation’s Definitive Proxy Materials on Schedule 14A filed March 10, 2006 (File No. 000-06253)).
|
|
10.34
|
Amended and Restated Simmons First National Corporation Outside Director's Stock Incentive Plan - 2006 (incorporated by reference to Exhibit 1.1 to Simmons First National Corporation’s Definitive Proxy Materials on Schedule 14A filed March 10, 2008 (File No. 000-06253)).
|
|
10.35
|
Simmons First National Corporation Dividend Reinvestment Plan (incorporated by reference to Exhibit 4.1 to Simmons First National Corporation’s Registration Statement on Form S-3D filed May 20, 1998 (File No. 333-53119)).
|
|
10.36
|
Simmons First National Corporation Amended and Restated Dividend Reinvestment Plan (incorporated by reference to Exhibit 4.1 to Simmons First National Corporation’s Registration Statement on Form S-3D filed July 14, 2004 (File No. 333-117350)).
|
|
10.37
|
Form of Lock-Up Agreement (incorporated by reference to Exhibit 10.1 to Simmons First National Corporation’s Current Report on Form 8-K filed November 12, 2009 (File No. 000-06253)).
|
|
10.38
|
Simmons First National Corporation Executive Stock Incentive – 2010 (incorporated by reference to exhibit 99.1 to Simmons First National Corporation’s Registration Statement on Form S-8 filed January 28, 2013 (File No. 333-186254)).
|
|
12.1
|
Computation of Ratios of Earnings to Fixed Charges.*
|
|
14
|
Code of Ethics, dated December 2003, for CEO, CFO, controller and other accounting officers (incorporated by reference to Exhibit 14 to Simmons First National Corporation’s Annual Report on Form 10-K for the Year ended December 31, 2003 (File No. 000-06253)).
|
|
15.1
|
Awareness Letter of BKD, LLP.*
|
|
31.1
|
Rule 13a-14(a)/15d-14(a) Certification of the Corporation’s Chief Executive Officer.*
|
|
31.2
|
Rule 13a-14(a)/15d-14(a) Certification of the Corporation’s Chief Financial Officer.*
|
|
32.1
|
Certification of the Corporation’s Chief Executive Officer Pursuant to 18 U.S.C. Sections 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
|
|
32.2
|
Certification of the Corporation’s Chief Financial Officer Pursuant to 18 U.S.C. Sections 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
|
|
101.INS
|
XBRL Instance Document.**
|
|
101.SCH
|
XBRL Taxonomy Extension Schema.**
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase.**
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase.**
|
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase.**
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase.**
|
|
*
|
Filed herewith.
|
|
**
|
Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Act of 1934, as amended, and otherwise are not subject to liability under those sections.
|
Date: May 10, 2013
|
/s/ J. Thomas May
|
J. Thomas May
|
|
Chairman and Chief Executive Officer
|
|
Date: May 10, 2013
|
/s/ Robert A. Fehlman
|
Robert A. Fehlman
|
|
Senior Executive Vice President,
|
|
Chief Financial Officer and Treasurer
|
|
Three Months Ended
|
||||||||||||||||||||||||||||
March 31
|
Year Ended December 31,
|
|||||||||||||||||||||||||||
2013
|
2012
|
2012
|
2011
|
2010
|
2009
|
2008
|
||||||||||||||||||||||
Fixed Charges:
|
||||||||||||||||||||||||||||
Interest on deposits
|
$ | 2,199 | $ | 2,965 | $ | 10,625 | $ | 14,925 | $ | 19,537 | $ | 31,046 | $ | 53,150 | ||||||||||||||
Interest on borrowings
|
958 | 1,305 | 4,992 | 5,471 | 7,469 | 7,760 | 8,974 | |||||||||||||||||||||
Estimated interest on rental expense
|
287 | 161 | 936 | 617 | 526 | 469 | 487 | |||||||||||||||||||||
Fixed charges including interest on deposits (A)
|
3,444 | 4,431 | 16,553 | 21,013 | 27,532 | 39,275 | 62,611 | |||||||||||||||||||||
Less: Interest on deposits
|
2,199 | 2,965 | 10,625 | 14,925 | 19,537 | 31,046 | 53,150 | |||||||||||||||||||||
Fixed charges excluding interest on deposits (B)
|
$ | 1,245 | $ | 1,466 | $ | 5,928 | $ | 6,088 | $ | 7,995 | $ | 8,229 | $ | 9,461 | ||||||||||||||
Earnings:
|
||||||||||||||||||||||||||||
Pretax income from continuing operations
|
$ | 8,557 | $ | 9,033 | $ | 40,015 | $ | 35,799 | $ | 54,431 | $ | 35,400 | $ | 38,337 | ||||||||||||||
Fixed charges including interest on deposits
|
3,444 | 4,431 | 16,553 | 21,013 | 27,532 | 39,275 | 62,611 | |||||||||||||||||||||
Earnings, including interest on deposits (C)
|
12,001 | 13,464 | 56,568 | 56,812 | 81,963 | 74,675 | 100,948 | |||||||||||||||||||||
Less: Interest on deposits
|
2,199 | 2,965 | 10,625 | 14,925 | 19,537 | 31,046 | 53,150 | |||||||||||||||||||||
Earnings, excluding interest on deposits (D)
|
$ | 9,802 | $ | 10,499 | $ | 45,943 | $ | 41,887 | $ | 62,426 | $ | 43,629 | $ | 47,798 | ||||||||||||||
Ratio of earnings to fixed charges:
|
||||||||||||||||||||||||||||
Including interest on deposits (C /A)
|
3.48 | 3.04 | 3.42 | 2.70 | 2.98 | 1.90 | 1.61 | |||||||||||||||||||||
Excluding interest on deposits (D / B)
|
7.87 | 7.16 | 7.75 | 6.88 | 7.81 | 5.30 | 5.05 |
/s/ J. Thomas May | |
J. Thomas May
Chairman and Chief Executive Officer
|
/s/ Robert A. Fehlman | |
Robert A. Fehlman
Senior Executive Vice President,
Chief Financial Officer and Treasurer
|
/s/ J. Thomas May | |
J. Thomas May
Chairman and Chief Executive Officer
|
/s/ Robert A. Fehlman | |
Robert A. Fehlman
Senior Executive Vice President,
Chief Financial Officer and Treasurer
|
Note 2 - Earnings Per Share (Detail)
|
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 140,228 | 95,770 |
Note 4 - Loans and Allowance for Loan Losses (Detail) - Net (charge-offs)/recoveries, excluding loans acquired, segregated by class of loans: (Loans, excluding acquired loans [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Finance Receivable, net (charge-offs)/recoveries | $ (1,066) | $ (2,554) |
Consumer Loans [Member] | Credit Cards [Member]
|
||
Finance Receivable, net (charge-offs)/recoveries | (673) | (787) |
Consumer Loans [Member] | Student Loans [Member]
|
||
Finance Receivable, net (charge-offs)/recoveries | (13) | (18) |
Consumer Loans [Member] | Other Consumer [Member]
|
||
Finance Receivable, net (charge-offs)/recoveries | (166) | (52) |
Consumer Loans [Member]
|
||
Finance Receivable, net (charge-offs)/recoveries | (852) | (857) |
Real Estate Loans [Member] | Construction Loans [Member]
|
||
Finance Receivable, net (charge-offs)/recoveries | (112) | 46 |
Real Estate Loans [Member] | Single Family Residential Loans [Member]
|
||
Finance Receivable, net (charge-offs)/recoveries | (35) | (220) |
Real Estate Loans [Member] | Other Commercial Real Estate Loans [Member]
|
||
Finance Receivable, net (charge-offs)/recoveries | (24) | (1,435) |
Real Estate Loans [Member]
|
||
Finance Receivable, net (charge-offs)/recoveries | (171) | (1,609) |
Commercial Loans [Member] | Commercial [Member]
|
||
Finance Receivable, net (charge-offs)/recoveries | (29) | (54) |
Commercial Loans [Member] | Agricultural Loans [Member]
|
||
Finance Receivable, net (charge-offs)/recoveries | (14) | (34) |
Commercial Loans [Member]
|
||
Finance Receivable, net (charge-offs)/recoveries | $ (43) | $ (88) |
Note 4 - Loans and Allowance for Loan Losses (Detail) - Nonaccrual loans, excluding loans acquired, segregated by class of loans: (Loans, excluding acquired loans [Member], USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Consumer: | ||
Loans in nonaccrual status | $ 8,768 | $ 9,123 |
Credit Cards [Member]
|
||
Consumer: | ||
Loans in nonaccrual status | 300 | 281 |
Student Loans [Member]
|
||
Consumer: | ||
Loans in nonaccrual status | 0 | |
Other Consumer [Member]
|
||
Consumer: | ||
Loans in nonaccrual status | 639 | 801 |
Consumer Loans [Member]
|
||
Consumer: | ||
Loans in nonaccrual status | 939 | 1,082 |
Construction Loans [Member]
|
||
Consumer: | ||
Loans in nonaccrual status | 194 | 463 |
Single Family Residential Loans [Member]
|
||
Consumer: | ||
Loans in nonaccrual status | 2,779 | 2,706 |
Other Commercial Real Estate Loans [Member]
|
||
Consumer: | ||
Loans in nonaccrual status | 4,254 | 4,254 |
Real Estate Loans [Member]
|
||
Consumer: | ||
Loans in nonaccrual status | 7,227 | 7,423 |
Other Commercial Loans [Member]
|
||
Consumer: | ||
Loans in nonaccrual status | 453 | 471 |
Agricultural Loans [Member]
|
||
Consumer: | ||
Loans in nonaccrual status | 149 | 147 |
Commercial Loans [Member]
|
||
Consumer: | ||
Loans in nonaccrual status | 602 | 618 |
Other Loans [Member]
|
||
Consumer: | ||
Loans in nonaccrual status | $ 0 | $ 0 |
Note 9 - Other Borrowings and Subordinated Debentures (Detail) (USD $)
In Millions, unless otherwise specified |
Mar. 31, 2013
|
---|---|
Advances from Federal Home Loan Banks | $ 81.6 |
Advances from Federal Home Loan Bank Available | 575.9 |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 707.2 |
Note 4 - Loans and Allowance for Loan Losses (Detail) (USD $)
|
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
Dec. 31, 2012
Risk Ratings 6,7, and 8 [Member]
|
Sep. 30, 2012
Risk Ratings 6,7, and 8 [Member]
|
Mar. 31, 2013
Loans Receivable [Member]
|
Dec. 31, 2012
Loans Receivable [Member]
|
Mar. 31, 2013
Student Loans [Member]
|
Dec. 31, 2012
Student Loans [Member]
|
Mar. 31, 2013
Restructured During Current Period [Member]
|
|
Loans and Leases Receivable, Gross | $ 1,850,000,000 | $ 1,920,000,000 | $ 31,835,000 | $ 34,145,000 | |||||
Percentage of Portfolio | 97.00% | ||||||||
Impaired Financing Receivable, Recorded Investment | 25,800,000 | 30,800,000 | |||||||
Impaired Financing Receivable, Related Allowance | 3,100,000 | 2,800,000 | |||||||
Impaired Financing Receivable, Interest Income, Accrual Method | 295,000 | ||||||||
Impaired Financing Receivable, Average Recorded Investment | 28,300,000 | ||||||||
Financing Receivable, Modifications, Number of Contracts | 1 | ||||||||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 321,000 | ||||||||
Loans And Leases Receivable Classified | $ 39,000,000 | $ 43,400,000 |
Note 8 - Income Taxes (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] |
|
Note 14 - Additional Cash Flow Information (Detail) - Additional Cash Flow Information (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Interest paid | $ 3,085 | $ 4,423 |
Income taxes paid | 379 | 2 |
Transfers of loans to foreclosed assets | 3,153 | 3,181 |
Transfers of loans acquired, covered by FDIC loss share, to foreclosed assets covered by FDIC loss share | $ 3,236 | $ 3,530 |
Note 9 - Other Borrowings and Subordinated Debentures (Detail) - Aggregate Annual Maturities of Long-Term Debt (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
---|---|
2013 | $ 7,895 |
2014 | 11,908 |
2015 | 10,650 |
2016 | 9,030 |
2017 | 21,778 |
Thereafter | 41,005 |
Total | $ 102,266 |
Note 5 - Loans Acquired (Detail) (USD $)
|
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
|
Acquired Loans, Covered By FDIC Loss Share Agreements | $ 181,500,000 | $ 210,800,000 |
Certain Loans Acquired In Transfer Accretable Yield Adj | 22,100,000 | |
FDIC Indemnification Asset Accretable Yield Adj | 19,100,000 | |
Certain Loans Acquired In Transfer Accretable Yield Adj Current Year Increase Decrease | 8,500,000 | |
FDIC Indemnification Asset Accretable Yield Adj Current Year Increase Decrease | (8,200,000) | |
Certain Loans Acquired In Transfer Accretable Yield Adj Current Year Increase Decrease Net | $ 270,000 |
Note 17 - Commitments and Credit Risk (Detail) (USD $)
|
3 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
Mar. 31, 2013
Standby Letters of Credit [Member]
|
Dec. 31, 2012
Standby Letters of Credit [Member]
|
Mar. 31, 2013
Credit Card Commitments to Extend Credit [Member]
|
Dec. 31, 2012
Credit Card Commitments to Extend Credit [Member]
|
Mar. 31, 2013
Other Loan Commitments to Extend Credit [Member]
|
Dec. 31, 2012
Other Loan Commitments to Extend Credit [Member]
|
Mar. 31, 2013
Minimum [Member]
|
Mar. 31, 2013
Maximum [Member]
|
|
Commitments and Contingencies | $ 422,957,000 | $ 401,817,000 | $ 348,547,000 | $ 301,444,000 | ||||||
Letters of Credit Outstanding, Amount | 6,945,000 | 9,901,000 | ||||||||
Letters of Credit Term | 7 months | 5 years | ||||||||
Deferred Revenue | $ 5,000 | $ 10,000 |
Note 13 - Stock Based Compensation (Detail) - Stock Compensation Plans (USD $)
|
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Balance, January 1, 2013 | 217,650 | |
Balance, January 1, 2013 (in Dollars per share) | $ 26.77 | |
Balance, January 1, 2013 | 134,730 | |
Balance, January 1, 2013 (in Dollars per share) | $ 25.89 | |
Granted | 53,376 | |
Granted (in Dollars per share) | $ 25.56 | |
Stock Options Exercised | (2,283) | 0 |
Stock Options Exercised (in Dollars per share) | $ 23.78 | |
Stock Awards Vested | (35,677) | |
Stock Awards Vested (in Dollars per share) | $ 26.95 | |
Forfeited/Expired | (822) | |
Forfeited/Expired (in Dollars per share) | $ 28.31 | |
Balance, March 31, 2013 | 214,545 | |
Balance, March 31, 2013 (in Dollars per share) | $ 26.79 | |
Balance, March 31, 2013 | 152,429 | |
Balance, March 31, 2013 (in Dollars per share) | $ 25.52 | |
Exercisable, March 31, 2013 | 206,017 | |
Exercisable, March 31, 2013 (in Dollars per share) | $ 26.65 |
Note 9 - Other Borrowings and Subordinated Debentures (Detail) - Debt Components (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Trust preferred securities, due 12/30/2033, floating rate of 2.80% above the three month LIBOR rate, reset quarterly, callable without penalty | $ 20,620 | $ 20,620 |
Total other borrowings and subordinated debentures | 102,266 | 110,061 |
FHLB Advances [Member]
|
||
FHLB advances, due 2013 to 2033, 0.96% to 8.41% secured by residential real estate loans | 81,646 | 89,441 |
Trust Preferred Securities Due 12/30/2033 Floating Rate of 2.8% Above Three Month LIBOR 1 [Member]
|
||
Trust preferred securities, due 12/30/2033, floating rate of 2.80% above the three month LIBOR rate, reset quarterly, callable without penalty | $ 20,620 | $ 20,620 |
Note 17 - Commitments and Credit Risk
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
Commitments Disclosure [Text Block] |
NOTE
17: COMMITMENTS AND CREDIT RISK
The
Company grants agri-business, commercial and residential
loans to customers throughout Arkansas, Kansas and Missouri,
along with credit card loans to customers throughout the
United States. Commitments to extend credit are
agreements to lend to a customer as long as there is no
violation of any condition established in the
contract. Commitments generally have fixed
expiration dates or other termination clauses and may require
payment of a fee. Since a portion of the
commitments may expire without being drawn upon, the total
commitment amounts do not necessarily represent future cash
requirements. Each customer's creditworthiness is
evaluated on a case-by-case basis. The amount of
collateral obtained, if deemed necessary, is based on
management's credit evaluation of the
counterparty. Collateral held varies, but may
include accounts receivable, inventory, property, plant and
equipment, commercial real estate and residential real
estate.
At
March 31, 2013, the Company had outstanding commitments to
extend credit aggregating approximately $422,957,000 and
$348,547,000 for credit card commitments and other loan
commitments. At December 31, 2012, the Company had
outstanding commitments to extend credit aggregating
approximately $401,817,000 and $301,444,000 for credit card
commitments and other loan commitments.
Standby
letters of credit are conditional commitments issued by the
Company, to guarantee the performance of a customer to a
third party. Those guarantees are primarily issued
to support public and private borrowing arrangements,
including commercial paper, bond financing, and similar
transactions. The credit risk involved in issuing
letters of credit is essentially the same as that involved in
extending loans to customers. The Company had
total outstanding letters of credit amounting to $6,945,000
and $9,901,000 at March 31, 2013, and December 31, 2012,
respectively, with terms ranging from 7 months to 5
years. At March 31, 2013 and December 31,
2012, the Company’s deferred revenue under standby
letter of credit agreements was approximately $5,000 and
$10,000, respectively.
|
Note 4 - Loans and Allowance for Loan Losses (Detail) - Impaired loans, net of government guarantess and excluding loans acquired, segregated by class of loans: (USD $)
|
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
|
Total Recorded Investment | $ 25,800,000 | $ 30,800,000 |
Related Allowance | 3,100,000 | 2,800,000 |
Average Investment in Impaired Loans | 28,300,000 | |
Interest Income Recognized | 295,000 | |
Consumer Loans [Member] | Credit Cards [Member] | Impaired Loans Net Of Government Guarantees And Excluding Loans Acquired [Member]
|
||
Unpaid Contractual Principal Balance | 494,000 | 547,000 |
Recorded Investment With No Allowance | 494,000 | 547,000 |
Total Recorded Investment | 494,000 | 547,000 |
Related Allowance | 74,000 | 82,000 |
Average Investment in Impaired Loans | 521,000 | 578,000 |
Interest Income Recognized | 5,000 | 4,000 |
Consumer Loans [Member] | Other Consumer [Member] | Impaired Loans Net Of Government Guarantees And Excluding Loans Acquired [Member]
|
||
Unpaid Contractual Principal Balance | 1,041,000 | 1,140,000 |
Recorded Investment With No Allowance | 903,000 | 999,000 |
Recorded Investment With Allowance | 129,000 | 131,000 |
Total Recorded Investment | 1,032,000 | 1,130,000 |
Related Allowance | 291,000 | 249,000 |
Average Investment in Impaired Loans | 1,081,000 | 1,190,000 |
Interest Income Recognized | 11,000 | 15,000 |
Consumer Loans [Member] | Impaired Loans Net Of Government Guarantees And Excluding Loans Acquired [Member]
|
||
Unpaid Contractual Principal Balance | 1,535,000 | 1,687,000 |
Recorded Investment With No Allowance | 1,397,000 | 1,546,000 |
Recorded Investment With Allowance | 129,000 | 131,000 |
Total Recorded Investment | 1,526,000 | 1,677,000 |
Related Allowance | 365,000 | 331,000 |
Average Investment in Impaired Loans | 1,602,000 | 1,768,000 |
Interest Income Recognized | 16,000 | 19,000 |
Real Estate Loans [Member] | Construction Loans [Member] | Impaired Loans Net Of Government Guarantees And Excluding Loans Acquired [Member]
|
||
Unpaid Contractual Principal Balance | 3,564,000 | 5,443,000 |
Recorded Investment With No Allowance | 1,989,000 | 3,866,000 |
Recorded Investment With Allowance | 1,492,000 | 1,494,000 |
Total Recorded Investment | 3,481,000 | 5,360,000 |
Related Allowance | 470,000 | 505,000 |
Average Investment in Impaired Loans | 4,421,000 | 5,352,000 |
Interest Income Recognized | 46,000 | 68,000 |
Real Estate Loans [Member] | Single Family Residential Loans [Member] | Impaired Loans Net Of Government Guarantees And Excluding Loans Acquired [Member]
|
||
Unpaid Contractual Principal Balance | 4,371,000 | 4,091,000 |
Recorded Investment With No Allowance | 2,891,000 | 2,877,000 |
Recorded Investment With Allowance | 1,451,000 | 1,140,000 |
Total Recorded Investment | 4,342,000 | 4,017,000 |
Related Allowance | 538,000 | 494,000 |
Average Investment in Impaired Loans | 4,180,000 | 4,457,000 |
Interest Income Recognized | 44,000 | 56,000 |
Real Estate Loans [Member] | Other Commercial Real Estate Loans [Member] | Impaired Loans Net Of Government Guarantees And Excluding Loans Acquired [Member]
|
||
Unpaid Contractual Principal Balance | 17,803,000 | |
Recorded Investment With No Allowance | 1,222,000 | |
Recorded Investment With Allowance | 14,368,000 | |
Total Recorded Investment | 15,590,000 | |
Related Allowance | 1,487,000 | |
Average Investment in Impaired Loans | 17,286,000 | |
Interest Income Recognized | 181,000 | |
Real Estate Loans [Member] | Other Commercial Loans [Member] | Impaired Loans Net Of Government Guarantees And Excluding Loans Acquired [Member]
|
||
Unpaid Contractual Principal Balance | 21,199,000 | |
Recorded Investment With No Allowance | 5,903,000 | |
Recorded Investment With Allowance | 13,078,000 | |
Total Recorded Investment | 18,981,000 | |
Related Allowance | 1,310,000 | |
Average Investment in Impaired Loans | 24,821,000 | |
Interest Income Recognized | 313,000 | |
Real Estate Loans [Member] | Impaired Loans Net Of Government Guarantees And Excluding Loans Acquired [Member]
|
||
Unpaid Contractual Principal Balance | 25,738,000 | 30,733,000 |
Recorded Investment With No Allowance | 6,102,000 | 12,646,000 |
Recorded Investment With Allowance | 17,311,000 | 15,712,000 |
Total Recorded Investment | 23,413,000 | 28,358,000 |
Related Allowance | 2,495,000 | 2,309,000 |
Average Investment in Impaired Loans | 25,887,000 | 34,630,000 |
Interest Income Recognized | 271,000 | 437,000 |
Commercial Loans [Member] | Commercial [Member] | Impaired Loans Net Of Government Guarantees And Excluding Loans Acquired [Member]
|
||
Unpaid Contractual Principal Balance | 877,000 | |
Recorded Investment With No Allowance | 496,000 | |
Recorded Investment With Allowance | 225,000 | |
Total Recorded Investment | 721,000 | |
Related Allowance | 211,000 | |
Average Investment in Impaired Loans | 700,000 | |
Interest Income Recognized | 7,000 | |
Commercial Loans [Member] | Agricultural Loans [Member] | Impaired Loans Net Of Government Guarantees And Excluding Loans Acquired [Member]
|
||
Unpaid Contractual Principal Balance | 138,000 | 236,000 |
Recorded Investment With No Allowance | 87,000 | 74,000 |
Recorded Investment With Allowance | 5,000 | 16,000 |
Total Recorded Investment | 92,000 | 90,000 |
Related Allowance | 10,000 | 24,000 |
Average Investment in Impaired Loans | 91,000 | 402,000 |
Interest Income Recognized | 1,000 | 5,000 |
Commercial Loans [Member] | Commercial Loans [Member] | Impaired Loans Net Of Government Guarantees And Excluding Loans Acquired [Member]
|
||
Unpaid Contractual Principal Balance | 842,000 | |
Recorded Investment With No Allowance | 487,000 | |
Recorded Investment With Allowance | 191,000 | |
Total Recorded Investment | 678,000 | |
Related Allowance | 179,000 | |
Average Investment in Impaired Loans | 793,000 | |
Interest Income Recognized | 10,000 | |
Commercial Loans [Member] | Impaired Loans Net Of Government Guarantees And Excluding Loans Acquired [Member]
|
||
Unpaid Contractual Principal Balance | 1,015,000 | 1,078,000 |
Recorded Investment With No Allowance | 583,000 | 561,000 |
Recorded Investment With Allowance | 230,000 | 207,000 |
Total Recorded Investment | 813,000 | 768,000 |
Related Allowance | 221,000 | 203,000 |
Average Investment in Impaired Loans | 791,000 | 1,195,000 |
Interest Income Recognized | 8,000 | 15,000 |
Impaired Loans Net Of Government Guarantees And Excluding Loans Acquired [Member]
|
||
Unpaid Contractual Principal Balance | 28,288,000 | 33,498,000 |
Recorded Investment With No Allowance | 8,082,000 | 14,753,000 |
Recorded Investment With Allowance | 17,670,000 | 16,050,000 |
Total Recorded Investment | 25,752,000 | 30,803,000 |
Related Allowance | 3,081,000 | 2,843,000 |
Average Investment in Impaired Loans | 28,280,000 | 37,593,000 |
Interest Income Recognized | $ 295,000 | $ 471,000 |
Note 12 - Undivided Profits (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2013
|
Sep. 30, 2012
|
Mar. 31, 2013
Current Year Earnings [Member]
|
Mar. 31, 2013
Retained Net Earnings of Preceding Year [Member]
|
|
Maximum Dividend Limit | 75.00% | 75.00% | ||
Amount Available for Dividend Distribution without Prior Approval from Regulatory Agency (in Dollars) | $ 10.7 | |||
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | |||
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.00% | |||
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | |||
Capital to Risk Weighted Assets | 20.88% |
Note 15 - Other Operating Expenses (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Operating Cost and Expense, by Component [Table Text Block] |
|
Note 4 - Loans and Allowance for Loan Losses (Detail) - Loans restructured as TDRs, excluding loans acquired, segregated by class of loans: (Loans, excluding acquired loans [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Number of Loans | 1 | 6 |
Balance Prior to TDR | $ 321 | $ 1,152 |
Balance at March 31 | 321 | 1,152 |
Consumer Loans [Member] | Change in Rate [Member] | Other Consumer [Member]
|
||
Balance at March 31 | 48 | |
Consumer Loans [Member] | Change in Rate [Member]
|
||
Balance at March 31 | 48 | |
Consumer Loans [Member] | Other Consumer [Member]
|
||
Number of Loans | 1 | |
Balance Prior to TDR | 48 | |
Balance at March 31 | 48 | |
Consumer Loans [Member]
|
||
Number of Loans | 1 | |
Balance Prior to TDR | 48 | |
Balance at March 31 | 48 | |
Real Estate Loans [Member] | Change in Rate [Member] | Single Family Residential Loans [Member]
|
||
Balance at March 31 | 321 | 175 |
Real Estate Loans [Member] | Change in Rate [Member] | Other Commercial Real Estate Loans [Member]
|
||
Balance at March 31 | 878 | |
Real Estate Loans [Member] | Change in Rate [Member]
|
||
Balance at March 31 | 321 | 1,053 |
Real Estate Loans [Member] | Single Family Residential Loans [Member]
|
||
Number of Loans | 1 | 1 |
Balance Prior to TDR | 321 | 175 |
Balance at March 31 | 321 | 175 |
Real Estate Loans [Member] | Other Commercial Real Estate Loans [Member]
|
||
Number of Loans | 3 | |
Balance Prior to TDR | 878 | |
Balance at March 31 | 878 | |
Real Estate Loans [Member]
|
||
Number of Loans | 1 | 4 |
Balance Prior to TDR | 321 | 1,053 |
Balance at March 31 | 321 | 1,053 |
Commercial Loans [Member] | Change in Rate [Member] | Commercial [Member]
|
||
Balance at March 31 | 51 | |
Commercial Loans [Member] | Change in Rate [Member]
|
||
Balance at March 31 | 51 | |
Commercial Loans [Member] | Commercial [Member]
|
||
Number of Loans | 1 | |
Balance Prior to TDR | 51 | |
Balance at March 31 | 51 | |
Commercial Loans [Member]
|
||
Number of Loans | 1 | |
Balance Prior to TDR | 51 | |
Balance at March 31 | 51 | |
Change in Rate [Member]
|
||
Balance at March 31 | $ 321 | $ 1,152 |
Note 8 - Income Taxes (Detail) - Deferred Tax Assets and Liabilites (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Deferred tax assets | ||
Loans acquired | $ 21,433 | $ 24,186 |
FDIC true-up liability | 1,931 | 1,775 |
Allowance for loan losses | 10,580 | 10,736 |
Valuation of foreclosed assets | 251 | 669 |
Deferred compensation payable | 1,690 | 1,676 |
FHLB advances | 377 | 409 |
Vacation compensation | 1,079 | 1,058 |
Accumulated depreciation | 437 | 280 |
Loan interest | 767 | 767 |
Other | 583 | 569 |
Total deferred tax assets | 39,128 | 42,125 |
Deferred tax liabilities | ||
Deferred loan fee income and expenses, net | (2,681) | (2,373) |
FHLB stock dividends | (296) | (296) |
Goodwill and core deposit premium amortization | (11,556) | (11,190) |
FDIC indemnification asset | (27,850) | (31,846) |
Available-for-sale securities | (29) | (166) |
Other | (2,492) | (3,443) |
Total deferred tax liabilities | (44,904) | (49,314) |
Net deferred tax liabilities included in other liabilities on balance sheets | $ (5,776) | $ (7,189) |
Note 5 - Loans Acquired (Detail) - Summary of the changes in the FDIC true-up provision: (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|
Beginning balance | $ 4,854 | $ 3,419 |
Amortization expense | 43 | 28 |
Adjustments related to changes in expected losses | 359 | 252 |
Balance, ending | $ 5,256 | $ 3,699 |
Note 4 - Loans and Allowance for Loan Losses (Detail) - Loan portfolio by categories: (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Consumer: | ||
Loans acquired, covered by FDIC loss share (net of discount) | $ 181,537 | $ 210,842 |
Loans acquired, not covered by FDIC loss share (net of discount) | 78,745 | 82,764 |
Credit Cards [Member]
|
||
Consumer: | ||
Loans | 171,599 | 185,536 |
Student Loans [Member]
|
||
Consumer: | ||
Loans | 31,835 | 34,145 |
Other Consumer [Member]
|
||
Consumer: | ||
Loans | 102,297 | 105,319 |
Consumer Loans [Member]
|
||
Consumer: | ||
Loans | 305,731 | 325,000 |
Construction Loans [Member]
|
||
Consumer: | ||
Loans | 136,099 | 138,132 |
Single Family Residential Loans [Member]
|
||
Consumer: | ||
Loans | 355,479 | 356,907 |
Other Commercial Real Estate Loans [Member]
|
||
Consumer: | ||
Loans | 569,686 | 568,166 |
Real Estate Loans [Member]
|
||
Consumer: | ||
Loans | 1,061,264 | 1,063,205 |
Other Commercial Loans [Member]
|
||
Consumer: | ||
Loans | 150,407 | 141,336 |
Agricultural Loans [Member]
|
||
Consumer: | ||
Loans | 68,048 | 93,805 |
Commercial Loans [Member]
|
||
Consumer: | ||
Loans | 218,455 | 235,141 |
Other Loans [Member]
|
||
Consumer: | ||
Loans | 3,627 | 5,167 |
Loans, excluding acquired loans [Member]
|
||
Consumer: | ||
Loans | 1,589,077 | 1,628,513 |
Loans, including acquired loans [Member]
|
||
Consumer: | ||
Total loans before allowance for loan losses | $ 1,849,359 | $ 1,922,119 |
Note 1 - Basis of Presentation
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] |
NOTE
1: BASIS OF PRESENTATION
The
consolidated financial statements include the accounts of
Simmons First National Corporation (the
“Company”) and its
subsidiaries. Significant intercompany accounts
and transactions have been eliminated in
consolidation.
All
adjustments made to the unaudited financial statements were
of a normal recurring nature. In the opinion of
management, all adjustments necessary for a fair presentation
of the results of interim periods have been
made. Certain prior year amounts are reclassified
to conform to current year classification. The
consolidated balance sheet of the Company as of December 31,
2012, has been derived from the audited consolidated balance
sheet of the Company as of that date. The results
of operations for the period are not necessarily indicative
of the results to be expected for the full year.
Certain
information and note disclosures normally included in the
Company’s annual financial statements prepared in
accordance with accounting principles generally accepted in
the United States of America have been condensed or
omitted. These consolidated financial statements
should be read in conjunction with the consolidated financial
statements and notes thereto included in the Company’s
Form 10-K Annual Report for 2012 filed with the U.S.
Securities and Exchange Commission (the
“SEC”).
Recently
Issued Accounting Pronouncements
In
July 2012, the FASB issued ASU 2012-02, Intangibles
– Goodwill and Other (Topic 350) – Testing
Indefinite-Lived Intangible Assets for
Impairment. ASU 2012-02 amends the guidance
related to testing indefinite-lived intangible assets, other
than goodwill, for impairment. The provisions of
ASU 2012-02 allow for a qualitative assessment in testing an
indefinite-lived intangible asset for impairment before
calculating the fair value of the asset. If the
qualitative assessment determines that it is more likely than
not that the asset is impaired, then a quantitative
assessment of the fair value of the asset is required;
otherwise, the quantitative calculation is not
necessary. The provisions of ASU 2012-02 became
effective for the Company on January 1, 2013, and did not
have a significant impact on the Company’s ongoing
financial position or results of operations.
In
October, 2012, the FASB issued ASU 2012-06, Business
Combinations (Topic 805) – Subsequent
Accounting for an Indemnification Asset Recognized at the
Acquisition Date as a Result of a Government-Assisted
Acquisition of a Financial Institution. ASU
2012-06 amends guidance on the subsequent accounting for an
indemnification asset recognized at the acquisition date as a
result of a government assisted acquisition of a financial
institution. ASU 2012-06 requires that a
subsequent adjustment to the indemnification asset be
measured on the same basis as the underlying indemnified
assets. Any amortization of changes in value of
the indemnification asset should be limited to the lesser of
the term of the indemnification agreement and the remaining
life of the indemnified assets. ASU 2012-06 became
effective for the Company on January 1,
2013. Because the Company has historically
accounted for its indemnification assets in accordance with
ASU 2012-06, its early adoption did not have a significant
impact on the Company’s financial position or results
of operations.
In
February, 2013, the FASB issued ASU 2013-02, Comprehensive
Income (Topic 220) – Reporting of
Amounts Reclassified Out of Accumulated Other Comprehensive
Income. ASU 2013-02 requires disclosure of
amounts reclassified out of accumulated other comprehensive
income in their entirety, by component, on the face of the
statement of comprehensive income or in the notes to the
financial statements. Amounts that are not
required to be classified in their entirety to net income
must be cross-referenced to other disclosures that provide
additional detail. ASU 2013-02 became effective
prospectively for the Company on January 1, 2013, and did not
have a significant impact on the Company's financial position
or results of operations.
There
have been no other significant changes to the Company’s
accounting policies from the 2012 Form
10-K. Presently, the Company is not aware of any
other changes to the Accounting Standards Codification that
will have a material impact on the Company’s present or
future financial position or results of operations.
Acquisition
Accounting, Covered Loans and Related Indemnification
Asset
The
Company accounts for its acquisitions under ASC Topic 805,
Business
Combinations, which requires the use of the purchase
method of accounting. All identifiable assets
acquired, including loans, are recorded at fair
value. No allowance for loan losses related to the
acquired loans is recorded on the acquisition date as the
fair value of the loans acquired incorporates assumptions
regarding credit risk. Loans acquired are recorded
at fair value in accordance with the fair value methodology
prescribed in ASC Topic 820, exclusive of the shared loss
agreements with the FDIC, if any. The fair value
estimates associated with the loans include estimates related
to expected prepayments and the amount and timing of
undiscounted expected principal, interest and other cash
flows.
Over
the life of the acquired loans, the Company continues to
estimate cash flows expected to be collected on individual
loans or on pools of loans sharing common risk
characteristics and were treated in the aggregate when
applying various valuation techniques. The Company
evaluates at each balance sheet date whether the present
value of its loans determined using the effective interest
rates has decreased and if so, recognizes a provision for
loan loss in its consolidated statement of
income. For any increases in cash flows expected
to be collected, the Company adjusts the amount of accretable
yield recognized on a prospective basis over the loan’s
or pool’s remaining life.
Because
the FDIC will reimburse the Company for losses incurred on
certain acquired loans, an indemnification asset is recorded
at fair value at the acquisition date. The
indemnification asset is recognized at the same time as the
indemnified loans, and measured on the same basis, subject to
collectability or contractual limitations. The
shared-loss agreements on the acquisition date reflect the
reimbursements expected to be received from the FDIC, using
an appropriate discount rate, which reflects counterparty
credit risk and other uncertainties.
The
shared-loss agreements continue to be measured on the same
basis as the related indemnified loans. Because
the acquired loans are subject to the accounting prescribed
by ASC Topic 310, subsequent changes to the basis of the
shared-loss agreements also follow that
model. Deterioration in the credit quality of the
loans (immediately recorded as an adjustment to the allowance
for loan losses) would immediately increase the basis of the
shared-loss agreements, with the offset recorded through the
consolidated statement of income. Increases in the
credit quality or cash flows of loans (reflected as an
adjustment to yield and accreted into income over the
remaining life of the loans) decrease the basis of the
shared-loss agreements, with such decrease being accreted
into income over 1) the same period or 2) the life of the
shared-loss agreements, whichever is shorter. Loss
assumptions used in the basis of the indemnified loans are
consistent with the loss assumptions used to measure the
indemnification asset. Fair value accounting
incorporates into the fair value of the indemnification asset
an element of the time value of money, which is accreted back
into income over the life of the shared-loss
agreements.
Upon
the determination of an incurred loss the indemnification
asset will be reduced by the amount owed by the
FDIC. A corresponding, claim receivable is
recorded until cash is received from the FDIC. For
further discussion of the Company’s acquisition and
loan accounting, see Note 5, Loans Acquired.
|
Note 6 - Goodwill And Core Deposit Premiums (Detail) (USD $)
|
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
Dec. 31, 2012
|
|
Goodwill | $ 60,605,000 | $ 60,605,000 | |
Amortization of Intangible Assets | 137,000 | 74,000 | |
Core Deposit Premium [Member]
|
|||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Core Deposits [Member]
|
|||
Amortization of Intangible Assets | $ 137,000 | $ 74,000 |