Alaska | 92-0175752 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
TABLE OF CONTENTS | ||
Part I | FINANCIAL INFORMATION | |
Item 1. | Financial Statements (unaudited) | |
Item 2. | ||
Item 3. | ||
Item 4. | ||
Part II | OTHER INFORMATION | |
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
June 30, 2016 | December 31, 2015 | ||||||
(In Thousands, Except Share Data) | |||||||
ASSETS | |||||||
Cash and due from banks | $30,095 | $30,989 | |||||
Interest bearing deposits in other banks | 44,661 | 27,684 | |||||
Investment securities available for sale, at fair value | 290,601 | 291,113 | |||||
Investment securities held to maturity, at amortized cost | 901 | 903 | |||||
Total portfolio investments | 291,502 | 292,016 | |||||
Investment in Federal Home Loan Bank stock | 1,966 | 1,816 | |||||
Loans held for sale | 60,360 | 50,553 | |||||
Loans | 967,346 | 980,787 | |||||
Allowance for loan losses | (18,385 | ) | (18,153 | ) | |||
Net loans | 948,961 | 962,634 | |||||
Purchased receivables, net | 13,596 | 13,326 | |||||
Other real estate owned, net | 2,558 | 3,053 | |||||
Premises and equipment, net | 38,671 | 40,217 | |||||
Mortgage servicing rights, at fair value | 2,602 | 1,654 | |||||
Goodwill | 22,334 | 22,334 | |||||
Other intangible assets, net | 1,372 | 1,442 | |||||
Other assets | 59,692 | 51,774 | |||||
Total assets | $1,518,370 | $1,499,492 | |||||
LIABILITIES | |||||||
Deposits: | |||||||
Demand | $461,970 | $430,191 | |||||
Interest-bearing demand | 183,885 | 209,291 | |||||
Savings | 231,246 | 227,969 | |||||
Money market | 241,334 | 236,675 | |||||
Certificates of deposit less than $100,000 | 50,933 | 52,505 | |||||
Certificates of deposit $100,000 and greater | 86,320 | 84,161 | |||||
Total deposits | 1,255,688 | 1,240,792 | |||||
Securities sold under repurchase agreements | 26,049 | 31,420 | |||||
Borrowings | 4,362 | 2,120 | |||||
Junior subordinated debentures | 18,558 | 18,558 | |||||
Other liabilities | 29,748 | 29,388 | |||||
Total liabilities | 1,334,405 | 1,322,278 | |||||
SHAREHOLDERS' EQUITY | |||||||
Preferred stock, $1 par value, 2,500,000 shares authorized, none issued or outstanding | — | — | |||||
Common stock, $1 par value, 10,000,000 shares authorized, 6,877,140 shares issued and outstanding at June 30, 2016 and December 31, 2015 | 6,877 | 6,877 | |||||
Additional paid-in capital | 62,797 | 62,420 | |||||
Retained earnings | 113,238 | 108,150 | |||||
Accumulated other comprehensive income (loss) | 742 | (412 | ) | ||||
Total Northrim BanCorp shareholders' equity | 183,654 | 177,035 | |||||
Noncontrolling interest | 311 | 179 | |||||
Total shareholders' equity | 183,965 | 177,214 | |||||
Total liabilities and shareholders' equity | $1,518,370 | $1,499,492 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
(In Thousands, Except Per Share Data) | 2016 | 2015 | 2016 | 2015 | ||||||||||
Interest Income | ||||||||||||||
Interest and fees on loans and loans held for sale | $13,710 | $14,135 | $27,488 | $27,602 | ||||||||||
Interest on investment securities available for sale | 953 | 759 | 1,933 | 1,644 | ||||||||||
Interest on investment securities held to maturity | 14 | 25 | 27 | 48 | ||||||||||
Interest on deposits in other banks | 41 | 24 | 88 | 35 | ||||||||||
Total Interest Income | 14,718 | 14,943 | 29,536 | 29,329 | ||||||||||
Interest Expense | ||||||||||||||
Interest expense on deposits, borrowings and junior subordinated debentures | 639 | 748 | 1,283 | 1,502 | ||||||||||
Net Interest Income | 14,079 | 14,195 | 28,253 | 27,827 | ||||||||||
Provision for loan losses | 200 | 376 | 903 | 702 | ||||||||||
Net Interest Income After Provision for Loan Losses | 13,879 | 13,819 | 27,350 | 27,125 | ||||||||||
Other Operating Income | ||||||||||||||
Mortgage banking income | 8,510 | 7,859 | 14,206 | 15,165 | ||||||||||
Employee benefit plan income | 936 | 931 | 1,900 | 1,708 | ||||||||||
Bankcard fees | 675 | 669 | 1,308 | 1,258 | ||||||||||
Purchased receivable income | 531 | 562 | 1,065 | 1,151 | ||||||||||
Service charges on deposit accounts | 510 | 568 | 1,009 | 1,058 | ||||||||||
Gain (loss) on sale of securities, net | 12 | 16 | (11 | ) | 130 | |||||||||
Other income | 690 | 958 | 1,492 | 1,628 | ||||||||||
Total Other Operating Income | 11,864 | 11,563 | 20,969 | 22,098 | ||||||||||
Other Operating Expense | ||||||||||||||
Salaries and other personnel expense | 12,011 | 11,125 | 23,262 | 21,675 | ||||||||||
Occupancy expense | 1,697 | 1,594 | 3,305 | 3,198 | ||||||||||
Data processing expense | 1,146 | 1,104 | 2,230 | 2,200 | ||||||||||
Professional and outside services | 785 | 791 | 1,492 | 1,542 | ||||||||||
Change in fair value, RML earn-out liability | 687 | 587 | 817 | 2,089 | ||||||||||
Marketing expense | 615 | 642 | 1,353 | 1,259 | ||||||||||
Loss on sale of premises and equipment | 358 | 7 | 358 | 7 | ||||||||||
Insurance expense | 263 | 345 | 578 | 669 | ||||||||||
OREO (income) expense, net rental income and gains on sale | 127 | (121 | ) | 101 | 176 | |||||||||
Intangible asset amortization expense | 35 | 72 | 70 | 145 | ||||||||||
Other operating expense | 1,645 | 1,607 | 3,174 | 3,254 | ||||||||||
Total Other Operating Expense | 19,369 | 17,753 | 36,740 | 36,214 | ||||||||||
Income Before Provision for Income Taxes | 6,374 | 7,629 | 11,579 | 13,009 | ||||||||||
Provision for income taxes | 1,868 | 2,686 | 3,567 | 4,433 | ||||||||||
Net Income | 4,506 | 4,943 | 8,012 | 8,576 | ||||||||||
Less: Net income attributable to the noncontrolling interest | 156 | 162 | 286 | 234 | ||||||||||
Net Income Attributable to Northrim BanCorp, Inc. | $4,350 | $4,781 | $7,726 | $8,342 | ||||||||||
Earnings Per Share, Basic | $0.63 | $0.70 | $1.12 | $1.22 | ||||||||||
Earnings Per Share, Diluted | $0.63 | $0.69 | $1.11 | $1.20 | ||||||||||
Weighted Average Shares Outstanding, Basic | 6,877,140 | 6,854,338 | 6,877,140 | 6,854,264 | ||||||||||
Weighted Average Shares Outstanding, Diluted | 6,968,891 | 6,941,671 | 6,966,905 | 6,938,879 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
(In Thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||
Net income | $4,506 | $4,943 | $8,012 | $8,576 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Securities available for sale: | ||||||||||||
Unrealized gains (losses) arising during the period | $466 | ($152 | ) | $1,792 | $736 | |||||||
Reclassification of net (gains) losses included in net income (net of tax | ||||||||||||
(benefit) expense of $5 and $7 for the second quarter of 2016 and 2015, | ||||||||||||
respectively and ($5) and $53 for the six months ended June 30, 2016 | ||||||||||||
and 2015, respectively) | (7 | ) | (9 | ) | 6 | (77 | ) | |||||
Income tax expense (benefit) related to unrealized gains and losses | (174 | ) | 58 | (644 | ) | (263 | ) | |||||
Other comprehensive income (loss), net of tax | 285 | (103 | ) | 1,154 | 396 | |||||||
Comprehensive income | 4,791 | 4,840 | 9,166 | 8,972 | ||||||||
Less: comprehensive income attributable to the noncontrolling interest | 156 | 162 | 286 | 234 | ||||||||
Comprehensive income attributable to Northrim BanCorp, Inc. | $4,635 | $4,678 | $8,880 | $8,738 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest | Total | |||||||||||||||||||||
Number of Shares | Par Value | |||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||
Balance as of January 1, 2015 | 6,854 | $6,854 | $61,729 | $95,493 | $247 | $118 | $164,441 | |||||||||||||||||||
Cash dividend declared | — | — | — | (5,126 | ) | — | — | (5,126 | ) | |||||||||||||||||
Stock-based compensation expense | — | — | 608 | — | — | — | 608 | |||||||||||||||||||
Exercise of stock options | 23 | 23 | 27 | — | — | — | 50 | |||||||||||||||||||
Excess tax benefits from stock based payment arrangements | — | — | 56 | — | — | — | 56 | |||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | — | (490 | ) | (490 | ) | |||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (659 | ) | — | (659 | ) | |||||||||||||||||
Net income attributable to the noncontrolling interest | — | — | — | — | — | 551 | 551 | |||||||||||||||||||
Net income attributable to Northrim BanCorp, Inc. | — | — | — | 17,783 | — | — | 17,783 | |||||||||||||||||||
Twelve Months Ended December 31, 2015 | 6,877 | $6,877 | $62,420 | $108,150 | ($412 | ) | $179 | $177,214 | ||||||||||||||||||
Cash dividend declared | — | — | — | (2,638 | ) | — | — | (2,638 | ) | |||||||||||||||||
Stock-based compensation expense | — | — | 377 | — | — | — | 377 | |||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | — | (154 | ) | (154 | ) | |||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 1,154 | — | 1,154 | |||||||||||||||||||
Net income attributable to the noncontrolling interest | — | — | — | — | — | 286 | 286 | |||||||||||||||||||
Net income attributable to Northrim BanCorp, Inc. | — | — | — | 7,726 | — | — | 7,726 | |||||||||||||||||||
Six Months Ended June 30, 2016 | 6,877 | $6,877 | $62,797 | $113,238 | $742 | $311 | $183,965 |
Six Months Ended June 30, | |||||||
(In Thousands) | 2016 | 2015 | |||||
Operating Activities: | |||||||
Net income | $8,012 | $8,576 | |||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||
Loss (gain) on sale of securities, net | 11 | (130 | ) | ||||
Loss on sale of premises and equipment | 358 | 7 | |||||
Depreciation and amortization of premises and equipment | 1,178 | 1,122 | |||||
Amortization of software | 84 | 90 | |||||
Intangible asset amortization | 70 | 145 | |||||
Amortization of investment security premium, net of discount accretion | 8 | (119 | ) | ||||
Deferred tax liability | 448 | (685 | ) | ||||
Stock-based compensation | 377 | 237 | |||||
Excess tax benefits from share-based payment arrangements | — | 1 | |||||
Deferral of loan fees and costs, net | (292 | ) | (92 | ) | |||
Provision for loan losses | 903 | 702 | |||||
Recovery from purchased receivables | (18 | ) | (72 | ) | |||
Gain on sale of loans | (11,924 | ) | (13,686 | ) | |||
Proceeds from the sale of loans held for sale | 344,087 | 376,782 | |||||
Origination of loans held for sale | (341,970 | ) | (392,823 | ) | |||
Gain on sale of other real estate owned | (112 | ) | (136 | ) | |||
Impairment on other real estate owned | 130 | 268 | |||||
Net changes in assets and liabilities: | |||||||
Decrease (increase) in accrued interest receivable | 62 | (26 | ) | ||||
(Increase) decrease in other assets | (3,302 | ) | 2,352 | ||||
Decrease in other liabilities | (6,472 | ) | (8,731 | ) | |||
Net Cash Provided by (Used in) Operating Activities | (8,362 | ) | (26,218 | ) | |||
Investing Activities: | |||||||
Investment in securities: | |||||||
Purchases of investment securities available for sale | (31,985 | ) | (59,196 | ) | |||
Purchases of FHLB stock | (151 | ) | — | ||||
Proceeds from sales/calls/maturities of securities available for sale | 34,283 | 115,917 | |||||
Proceeds from maturities of domestic certificates of deposit | — | 3,500 | |||||
Proceeds from redemption of FHLB stock | 1 | 1,587 | |||||
(Increase) decrease in purchased receivables, net | (252 | ) | 1,278 | ||||
Decrease (increase) in loans, net | 13,063 | (50,597 | ) | ||||
Proceeds from sale of other real estate owned | 477 | 1,971 | |||||
Elliott Cove divestiture, net of cash received | — | 219 | |||||
Sales of premises and equipment | 1,379 | — | |||||
Purchases of premises and equipment | (1,369 | ) | (3,428 | ) | |||
Net Cash Provided by Investing Activities | 15,446 | 11,251 | |||||
Financing Activities: | |||||||
Increase in deposits | 14,896 | 58,970 | |||||
Decrease in securities sold under repurchase agreements | (5,371 | ) | (1,948 | ) | |||
Increase (decrease) in borrowings | 2,242 | (3,995 | ) | ||||
Distributions to noncontrolling interest | (154 | ) | (75 | ) | |||
Cash dividends paid | (2,614 | ) | (2,470 | ) | |||
Net Cash Provided by Financing Activities | 8,999 | 50,482 | |||||
Net Change in Cash and Cash Equivalents | 16,083 | 35,515 | |||||
Cash and Cash Equivalents at Beginning of Period | 58,673 | 68,556 | |||||
Cash and Cash Equivalents at End of Period | $74,756 | $104,071 |
Supplemental Information: | |||||||
Income taxes paid | $2,162 | $4,011 | |||||
Interest paid | $1,213 | $1,556 | |||||
Noncash commitments to invest in Low Income Housing Tax Credit Partnerships | $6,809 | $55 | |||||
Transfer of loans to other real estate owned | $— | $337 | |||||
Cash dividends declared but not paid | $24 | $22 |
(In Thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
June 30, 2016 | |||||||||||||||
Securities available for sale | |||||||||||||||
U.S. Treasury and government sponsored entities | $234,388 | $1,055 | $7 | $235,436 | |||||||||||
Municipal securities | 9,290 | 68 | 17 | 9,341 | |||||||||||
U.S. Agency mortgage-backed securities | 6 | — | — | 6 | |||||||||||
Corporate bonds | 40,838 | 83 | 36 | 40,885 | |||||||||||
Preferred stock | 4,922 | 55 | 44 | 4,933 | |||||||||||
Total securities available for sale | $289,444 | $1,261 | $104 | $290,601 | |||||||||||
Securities held to maturity | |||||||||||||||
Municipal securities | $901 | $44 | $— | $945 | |||||||||||
Total securities held to maturity | $901 | $44 | $— | $945 | |||||||||||
December 31, 2015 | |||||||||||||||
Securities available for sale | |||||||||||||||
U.S. Treasury and government sponsored entities | $238,116 | $150 | $830 | $237,436 | |||||||||||
Municipal securities | 10,227 | 117 | 18 | 10,326 | |||||||||||
U.S. Agency mortgage-backed securities | 818 | 1 | 10 | 809 | |||||||||||
Corporate bonds | 39,049 | 57 | 88 | 39,018 | |||||||||||
Preferred stock | 3,549 | 8 | 33 | 3,524 | |||||||||||
Total securities available for sale | $291,759 | $333 | $979 | $291,113 | |||||||||||
Securities held to maturity | |||||||||||||||
Municipal securities | $903 | $56 | $— | $959 | |||||||||||
Total securities held to maturity | $903 | $56 | $— | $959 |
Less Than 12 Months | More Than 12 Months | Total | ||||||||||||||||
(In Thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||
June 30, 2016: | ||||||||||||||||||
Securities Available for Sale | ||||||||||||||||||
U.S. Treasury and government sponsored entities | $12,422 | $3 | $489 | $4 | $12,911 | $7 | ||||||||||||
Corporate Bonds | 17,421 | 36 | — | — | 17,421 | 36 | ||||||||||||
Municipal Securities | 1,209 | 4 | 1,480 | 13 | 2,689 | 17 | ||||||||||||
Preferred Stock | 1,506 | 44 | — | — | 1,506 | 44 | ||||||||||||
Total | $32,558 | $87 | $1,969 | $17 | $34,527 | $104 | ||||||||||||
December 31, 2015: | ||||||||||||||||||
Securities Available for Sale | ||||||||||||||||||
U.S. Treasury and government sponsored entities | $146,433 | $829 | $36 | $1 | $146,469 | $830 | ||||||||||||
Corporate Bonds | 19,874 | 88 | — | — | 19,874 | 88 | ||||||||||||
Municipal Securities | 4,454 | 18 | — | — | 4,454 | 18 | ||||||||||||
Mortgage-backed Securities | 637 | 9 | 100 | 1 | 737 | 10 | ||||||||||||
Preferred Stock | 2,514 | 33 | — | — | 2,514 | 33 | ||||||||||||
Total | $173,912 | $977 | $136 | $2 | $174,048 | $979 |
(In Thousands) | Amortized Cost | Fair Value | Weighted Average Yield | |||||||
US Treasury and government sponsored entities | ||||||||||
Within 1 year | $9,996 | $10,015 | 0.84 | % | ||||||
1-5 years | 224,392 | 225,421 | 1.14 | % | ||||||
Total | $234,388 | $235,436 | 1.12 | % | ||||||
U.S. Agency mortgage-backed securities | ||||||||||
1-5 years | $6 | $6 | 1.47 | % | ||||||
Total | $6 | $6 | 1.47 | % | ||||||
Corporate bonds | ||||||||||
Within 1 year | $7,106 | $7,117 | 1.44 | % | ||||||
1-5 years | 33,732 | 33,768 | 1.39 | % | ||||||
Total | $40,838 | $40,885 | 1.40 | % | ||||||
Preferred stock | ||||||||||
Over 10 years | $4,922 | $4,933 | 7.16 | % | ||||||
Total | $4,922 | $4,933 | 7.16 | % | ||||||
Municipal securities | ||||||||||
Within 1 year | $478 | $479 | 0.93 | % | ||||||
1-5 years | 7,679 | 7,780 | 2.91 | % | ||||||
5-10 years | 2,034 | 2,027 | 4.12 | % | ||||||
Total | $10,191 | $10,286 | 3.06 | % |
(In Thousands) | Proceeds | Gross Gains | Gross Losses | ||||||||
2016 | |||||||||||
Available for sale securities | $5,785 | $12 | $23 | ||||||||
2015 | |||||||||||
Available for sale securities | $2,621 | $130 | $— |
(In Thousands) | 2016 | 2015 | |||||
US Treasury and government sponsored entities | $1,336 | $1,120 | |||||
U.S. Agency mortgage-backed securities | 4 | 13 | |||||
Other | 447 | 344 | |||||
Total taxable interest income | $1,787 | $1,477 | |||||
Municipal securities | $146 | $167 | |||||
Total tax-exempt interest income | $146 | $167 | |||||
Total | $1,933 | $1,644 |
(In Thousands) | Commercial | Real estate construction one-to-four family | Real estate construction other | Real estate term owner occupied | Real estate term non-owner occupied | Real estate term other | Consumer secured by 1st deeds of trust | Consumer other | Total | ||||||||||||||||||||||||||
June 30, 2016 | |||||||||||||||||||||||||||||||||||
AQR Pass | $314,597 | $34,811 | $55,541 | $135,670 | $291,379 | $38,793 | $25,970 | $27,036 | $923,797 | ||||||||||||||||||||||||||
AQR Special Mention | 3,109 | — | — | 1,256 | — | 285 | 152 | 6 | 4,808 | ||||||||||||||||||||||||||
AQR Substandard | 19,648 | 3,972 | 1,912 | 16,338 | 221 | — | 909 | 61 | 43,061 | ||||||||||||||||||||||||||
Subtotal | $337,354 | $38,783 | $57,453 | $153,264 | $291,600 | $39,078 | $27,031 | $27,103 | $971,666 | ||||||||||||||||||||||||||
Less: Unearned origination fees, net of origination costs | (4,320 | ) | |||||||||||||||||||||||||||||||||
Total loans | $967,346 | ||||||||||||||||||||||||||||||||||
December 31, 2015 | |||||||||||||||||||||||||||||||||||
AQR Pass | $313,689 | $44,488 | $74,931 | $112,248 | $313,710 | $37,938 | $26,015 | $28,882 | $951,901 | ||||||||||||||||||||||||||
AQR Special Mention | 536 | — | — | — | — | 91 | 171 | 10 | 808 | ||||||||||||||||||||||||||
AQR Substandard | 15,309 | — | — | 16,515 | 359 | — | 487 | 20 | 32,690 | ||||||||||||||||||||||||||
Subtotal | $329,534 | $44,488 | $74,931 | $128,763 | $314,069 | $38,029 | $26,673 | $28,912 | $985,399 | ||||||||||||||||||||||||||
Less: Unearned origination fees, net of origination costs | (4,612 | ) | |||||||||||||||||||||||||||||||||
Total loans | $980,787 |
(In Thousands) | June 30, 2016 | December 31, 2015 | |||||
Commercial | $4,479 | $3,013 | |||||
Real estate construction one-to-four family | 3,972 | — | |||||
Real estate construction other | 1,912 | — | |||||
Real estate term owner occupied | 34 | 38 | |||||
Real estate term non-owner occupied | 221 | 359 | |||||
Consumer secured by 1st deeds of trust | 552 | 256 | |||||
Consumer other | 14 | 20 | |||||
Total nonaccrual loans | $11,184 | $3,686 | |||||
Government guarantees on nonaccrual loans | (1,600 | ) | (1,561 | ) | |||
Net nonaccrual loans | $9,584 | $2,125 |
(In Thousands) | 30-59 Days Past Due Still Accruing | 60-89 Days Past Due Still Accruing | Greater Than 90 Days Still Accruing | Total Past Due | Nonaccrual | Current | Total | ||||||||||||||||||||
June 30, 2016 | |||||||||||||||||||||||||||
Commercial | $334 | $137 | $— | $471 | $4,479 | $332,404 | $337,354 | ||||||||||||||||||||
Real estate construction one-to-four family | — | — | — | — | 3,972 | 34,811 | 38,783 | ||||||||||||||||||||
Real estate construction other | — | — | — | — | 1,912 | 55,541 | 57,453 | ||||||||||||||||||||
Real estate term owner occupied | 550 | — | — | 550 | 34 | 152,680 | 153,264 | ||||||||||||||||||||
Real estate term non-owner occupied | — | — | — | — | 221 | 291,379 | 291,600 | ||||||||||||||||||||
Real estate term other | — | — | — | — | — | 39,078 | 39,078 | ||||||||||||||||||||
Consumer secured by 1st deed of trust | 143 | — | — | 143 | 552 | 26,336 | 27,031 | ||||||||||||||||||||
Consumer other | — | — | 47 | 47 | 14 | 27,042 | 27,103 | ||||||||||||||||||||
Subtotal | $1,027 | $137 | $47 | $1,211 | $11,184 | $959,271 | $971,666 | ||||||||||||||||||||
(4,320 | ) | ||||||||||||||||||||||||||
Total | $967,346 | ||||||||||||||||||||||||||
December 31, 2015 | |||||||||||||||||||||||||||
Commercial | $242 | $21 | $— | $263 | $3,013 | $326,258 | $329,534 | ||||||||||||||||||||
Real estate construction one-to-four family | — | — | — | — | — | 44,488 | 44,488 | ||||||||||||||||||||
Real estate construction other | — | — | — | — | — | 74,931 | 74,931 | ||||||||||||||||||||
Real estate term owner occupied | — | — | — | — | 38 | 128,725 | 128,763 | ||||||||||||||||||||
Real estate term non-owner occupied | — | — | — | — | 359 | 313,710 | 314,069 | ||||||||||||||||||||
Real estate term other | 289 | — | — | 289 | — | 37,740 | 38,029 | ||||||||||||||||||||
Consumer secured by 1st deed of trust | 568 | — | — | 568 | 256 | 25,849 | 26,673 | ||||||||||||||||||||
Consumer other | 30 | — | — | 30 | 20 | 28,862 | 28,912 | ||||||||||||||||||||
Subtotal | $1,129 | $21 | $— | $1,150 | $3,686 | $980,563 | $985,399 | ||||||||||||||||||||
(4,612 | ) | ||||||||||||||||||||||||||
Total | $980,787 |
(In Thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||
June 30, 2016 | |||||||||||
With no related allowance recorded | |||||||||||
Commercial - AQR special mention | $151 | $151 | $— | ||||||||
Commercial - AQR substandard | 19,427 | 20,107 | — | ||||||||
Real estate construction other - AQR substandard | 1,912 | 1,912 | — | ||||||||
Real estate term owner occupied- AQR pass | 257 | 257 | — | ||||||||
Real estate term owner occupied- AQR substandard | 16,259 | 16,259 | — | ||||||||
Real estate term non-owner occupied- AQR pass | 457 | 457 | — | ||||||||
Real estate term non-owner occupied- AQR substandard | 216 | 216 | — | ||||||||
Real estate term other - AQR pass | 662 | 662 | — | ||||||||
Real estate term other - AQR special mention | 77 | 77 | — | ||||||||
Consumer secured by 1st deeds of trust - AQR pass | 74 | 74 | — | ||||||||
Consumer secured by 1st deeds of trust - AQR substandard | 509 | 509 | — | ||||||||
Subtotal | $40,001 | $40,681 | $— |
With an allowance recorded | |||||||||||
Real estate construction one-to-four family - AQR substandard | $3,972 | $3,972 | $204 | ||||||||
Consumer secured by 1st deeds of trust - AQR substandard | 400 | 400 | 23 | ||||||||
Subtotal | $4,372 | $4,372 | $227 |
Total | |||||||||||
Commercial - AQR special mention | $151 | $151 | $— | ||||||||
Commercial - AQR substandard | 19,427 | 20,107 | — | ||||||||
Real estate construction one-to-four family - AQR substandard | 3,972 | 3,972 | 204 | ||||||||
Real estate construction other - AQR substandard | 1,912 | 1,912 | — | ||||||||
Real estate term owner-occupied - AQR pass | 257 | 257 | — | ||||||||
Real estate term owner-occupied - AQR substandard | 16,259 | 16,259 | — | ||||||||
Real estate term non-owner occupied - AQR pass | 457 | 457 | — | ||||||||
Real estate term non-owner occupied - AQR substandard | 216 | 216 | — | ||||||||
Real estate term other - AQR pass | 662 | 662 | — | ||||||||
Real estate term other - AQR special mention | 77 | 77 | — | ||||||||
Consumer secured by 1st deeds of trust - AQR pass | 74 | 74 | — | ||||||||
Consumer secured by 1st deeds of trust - AQR substandard | 909 | 909 | 23 | ||||||||
Total | $44,373 | $45,053 | $227 |
(In Thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||
December 31, 2015 | |||||||||||
With no related allowance recorded | |||||||||||
Commercial - AQR special mention | $157 | $157 | $— | ||||||||
Commercial - AQR substandard | 14,030 | 14,443 | — | ||||||||
Real estate term owner occupied - AQR pass | 753 | 753 | — | ||||||||
Real estate term owner occupied - AQR substandard | 16,476 | 16,476 | — | ||||||||
Real estate term non-owner occupied - AQR pass | 473 | 473 | — | ||||||||
Real estate term non-owner occupied - AQR substandard | 352 | 352 | — | ||||||||
Real estate term other - AQR pass | 699 | 699 | — | ||||||||
Real estate term other - AQR special mention | 91 | 91 | |||||||||
Consumer secured by 1st deeds of trust - AQR pass | 76 | 76 | — | ||||||||
Consumer secured by 1st deeds of trust - AQR substandard | 472 | 472 | — | ||||||||
Subtotal | $33,579 | $33,992 | $— |
With an allowance recorded | |||||||||||
Commercial - AQR substandard | $1,061 | $1,061 | $344 | ||||||||
Subtotal | $1,061 | $1,061 | $344 |
Total | |||||||||||
Commercial - AQR special mention | $157 | $157 | $— | ||||||||
Commercial - AQR substandard | 15,091 | 15,504 | 344 | ||||||||
Real estate term owner occupied - AQR pass | 753 | 753 | — | ||||||||
Real estate term owner occupied - AQR substandard | 16,476 | 16,476 | — | ||||||||
Real estate term non-owner occupied - AQR pass | 473 | 473 | — | ||||||||
Real estate term non-owner occupied - AQR substandard | 352 | 352 | — | ||||||||
Real estate term other - AQR pass | 699 | 699 | — | ||||||||
Real estate term other - AQR special mention | 91 | 91 | — | ||||||||
Consumer secured by 1st deeds of trust - AQR pass | 76 | 76 | — | ||||||||
Consumer secured by 1st deeds of trust - AQR substandard | 472 | 472 | — | ||||||||
Total | $34,640 | $35,053 | $344 |
Three Months Ended June 30, | 2016 | 2015 | |||||||||||||
(In Thousands) | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||
With no related allowance recorded | |||||||||||||||
Commercial - AQR special mention | $152 | $3 | $164 | $3 | |||||||||||
Commercial - AQR substandard | 19,699 | 176 | 12,315 | 41 | |||||||||||
Real estate construction other - AQR pass | — | — | 743 | 30 | |||||||||||
Real estate construction other - AQR substandard | 1,912 | — | — | — | |||||||||||
Real estate term owner occupied- AQR pass | 258 | 5 | 766 | 17 | |||||||||||
Real estate term owner occupied- AQR substandard | 16,283 | 232 | 5,269 | 19 | |||||||||||
Real estate term non-owner occupied- AQR pass | 462 | 18 | 541 | 19 | |||||||||||
Real estate term non-owner occupied- AQR special mention | — | — | 2,079 | 44 | |||||||||||
Real estate term non-owner occupied- AQR substandard | 222 | — | 1,652 | — | |||||||||||
Real estate term other - AQR pass | 674 | 12 | — | — | |||||||||||
Real estate term other - AQR special mention | 83 | 2 | — | — | |||||||||||
Real estate term other - AQR substandard | — | — | 149 | 3 | |||||||||||
Consumer secured by 1st deeds of trust - AQR pass | 75 | 1 | 80 | 1 | |||||||||||
Consumer secured by 1st deeds of trust - AQR substandard | 486 | 5 | 444 | 4 | |||||||||||
Subtotal | $40,306 | $454 | $24,202 | $181 |
With an allowance recorded | |||||||||||||||
Commercial - AQR substandard | $— | $— | $2,414 | $— | |||||||||||
Real estate construction one-to-four family - AQR substandard | 3,972 | — | — | — | |||||||||||
Consumer secured by 1st deeds of trust - AQR substandard | 292 | — | — | — | |||||||||||
Subtotal | $4,264 | $— | $2,414 | $— |
Total | |||||||||||||||
Commercial - AQR special mention | $152 | $3 | $164 | $3 | |||||||||||
Commercial - AQR substandard | 19,699 | 176 | 14,729 | 41 | |||||||||||
Real estate construction one-to-four family - AQR substandard | 3,972 | — | — | — | |||||||||||
Real estate construction other - AQR pass | — | — | 743 | 30 | |||||||||||
Real estate construction other - AQR substandard | 1,912 | — | — | — | |||||||||||
Real estate term owner-occupied - AQR pass | 258 | 5 | 766 | 17 | |||||||||||
Real estate term owner-occupied - AQR substandard | 16,283 | 232 | 5,269 | 19 | |||||||||||
Real estate term non-owner occupied - AQR pass | 462 | 18 | 541 | 19 | |||||||||||
Real estate term non-owner occupied - AQR special mention | — | — | 2,079 | 44 | |||||||||||
Real estate term non-owner occupied - AQR substandard | 222 | — | 1,652 | — | |||||||||||
Real estate term other - AQR pass | 674 | 12 | — | — | |||||||||||
Real estate term other - AQR special mention | 83 | 2 | — | — | |||||||||||
Real estate term other - AQR substandard | — | — | 149 | 3 | |||||||||||
Consumer secured by 1st deeds of trust - AQR pass | 75 | 1 | 80 | 1 | |||||||||||
Consumer secured by 1st deeds of trust - AQR substandard | 778 | 5 | 444 | 4 | |||||||||||
Total Impaired Loans | $44,570 | $454 | $26,616 | $181 |
Six Months Ended June 30, | 2016 | 2015 | |||||||||||||
(In Thousands) | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||
With no related allowance recorded | |||||||||||||||
Commercial - AQR special mention | $154 | $6 | $166 | $7 | |||||||||||
Commercial - AQR substandard | 18,143 | 374 | 7,703 | 70 | |||||||||||
Real estate construction one-to-four family - AQR substandard | 1,986 | — | — | — | |||||||||||
Real estate construction other - AQR pass | — | — | 753 | 59 | |||||||||||
Real estate construction other - AQR substandard | 1,912 | — | — | — | |||||||||||
Real estate term owner occupied- AQR pass | 504 | 19 | 634 | 28 | |||||||||||
Real estate term owner occupied- AQR special mention | — | — | 135 | 5 | |||||||||||
Real estate term owner occupied- AQR substandard | 16,342 | 467 | 2,967 | 28 | |||||||||||
Real estate term non-owner occupied- AQR pass | 466 | 37 | 544 | 38 | |||||||||||
Real estate term non-owner occupied- AQR special mention | — | — | 2,127 | 88 | |||||||||||
Real estate term non-owner occupied- AQR substandard | 230 | — | 2,009 | — | |||||||||||
Real estate term other - AQR pass | 608 | 24 | — | — | |||||||||||
Real estate term other - AQR special mention | 87 | 4 | — | — | |||||||||||
Real estate term other - AQR substandard | — | — | 149 | 7 | |||||||||||
Consumer secured by 1st deeds of trust - AQR pass | 75 | 2 | 81 | 2 | |||||||||||
Consumer secured by 1st deeds of trust - AQR substandard | 476 | 8 | 560 | 4 | |||||||||||
Subtotal | $40,983 | $941 | $17,828 | $336 |
With an allowance recorded | |||||||||||||||
Commercial - AQR substandard | $297 | $— | $2,330 | $— | |||||||||||
Real estate construction one-to-four family - AQR substandard | 1,986 | — | — | — | |||||||||||
Real estate term other - AQR substandard | — | — | 141 | — | |||||||||||
Consumer secured by 1st deeds of trust - AQR substandard | 146 | — | — | — | |||||||||||
Subtotal | $2,429 | $— | $2,471 | $— |
Total | |||||||||||||||
Commercial - AQR special mention | $154 | $6 | $166 | $7 | |||||||||||
Commercial - AQR substandard | 18,440 | 374 | 10,033 | 70 | |||||||||||
Real estate construction one-to-four family - AQR substandard | 3,972 | — | — | — | |||||||||||
Real estate construction other - AQR pass | — | — | 753 | 59 | |||||||||||
Real estate construction other - AQR substandard | 1,912 | — | — | — | |||||||||||
Real estate term owner-occupied - AQR pass | 504 | 19 | 634 | 28 | |||||||||||
Real estate term owner-occupied - AQR special mention | — | — | 135 | 5 | |||||||||||
Real estate term owner-occupied - AQR substandard | 16,342 | 467 | 2,967 | 28 | |||||||||||
Real estate term non-owner occupied - AQR pass | 466 | 37 | 544 | 38 | |||||||||||
Real estate term non-owner occupied - AQR special mention | — | — | 2,127 | 88 | |||||||||||
Real estate term non-owner occupied - AQR substandard | 230 | — | 2,009 | — | |||||||||||
Real estate term other - AQR pass | 608 | 24 | — | — | |||||||||||
Real estate term other - AQR special mention | 87 | 4 | — | — | |||||||||||
Real estate term other - AQR substandard | — | — | 290 | 7 | |||||||||||
Consumer secured by 1st deeds of trust - AQR pass | 75 | 2 | 81 | 2 | |||||||||||
Consumer secured by 1st deeds of trust - AQR substandard | 622 | 8 | 560 | 4 | |||||||||||
Total Impaired Loans | $43,412 | $941 | $20,299 | $336 |
Three Months Ended June 30, | Commercial | Real estate construction one-to-four family | Real estate construction other | Real estate term owner occupied | Real estate term non-owner occupied | Real estate term other | Consumer secured by 1st deed of trust | Consumer other | Unallocated | Total | ||||||||||||||||||||
2016 | ||||||||||||||||||||||||||||||
Balance, beginning of period | $5,749 | $760 | $1,621 | $1,739 | $5,498 | $638 | $264 | $396 | $1,518 | $18,183 | ||||||||||||||||||||
Charge-Offs | (135 | ) | — | — | — | — | — | — | — | — | (135 | ) | ||||||||||||||||||
Recoveries | 135 | — | — | — | — | — | — | 2 | — | 137 | ||||||||||||||||||||
Provision (benefit) | 118 | 132 | (524 | ) | 546 | (200 | ) | 32 | 82 | 22 | (8 | ) | 200 | |||||||||||||||||
Balance, end of period | $5,867 | $892 | $1,097 | $2,285 | $5,298 | $670 | $346 | $420 | $1,510 | $18,385 | ||||||||||||||||||||
Balance, end of period: | ||||||||||||||||||||||||||||||
Individually evaluated | ||||||||||||||||||||||||||||||
for impairment | $— | $204 | $— | $— | $— | $— | $23 | $— | $— | $227 | ||||||||||||||||||||
Balance, end of period: | ||||||||||||||||||||||||||||||
Collectively evaluated | ||||||||||||||||||||||||||||||
for impairment | $5,867 | $688 | $1,097 | $2,285 | $5,298 | $670 | $323 | $420 | $1,510 | $18,158 | ||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||||
Balance, beginning of period | $6,091 | $757 | $1,663 | $1,570 | $4,794 | $756 | $274 | $402 | $640 | $16,947 | ||||||||||||||||||||
Charge-Offs | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | 91 | — | — | — | — | — | — | 4 | — | 95 | ||||||||||||||||||||
Provision (benefit) | (495 | ) | (68 | ) | 200 | (100 | ) | 94 | (85 | ) | (9 | ) | 9 | 830 | 376 | |||||||||||||||
Balance, end of period | $5,687 | $689 | $1,863 | $1,470 | $4,888 | $671 | $265 | $415 | $1,470 | $17,418 | ||||||||||||||||||||
Balance, end of period: | ||||||||||||||||||||||||||||||
Individually evaluated | ||||||||||||||||||||||||||||||
for impairment | $265 | $— | $— | $— | $— | $— | $— | $— | $— | $265 | ||||||||||||||||||||
Balance, end of period: | ||||||||||||||||||||||||||||||
Collectively evaluated | ||||||||||||||||||||||||||||||
for impairment | $5,422 | $689 | $1,863 | $1,470 | $4,888 | $671 | $265 | $415 | $1,470 | $17,153 |
Six Months Ended June 30, | Commercial | Real estate construction one-to-four family | Real estate construction other | Real estate term owner occupied | Real estate term non-owner occupied | Real estate term other | Consumer secured by 1st deed of trust | Consumer other | Unallocated | Total | ||||||||||||||||||||
2016 | ||||||||||||||||||||||||||||||
Balance, beginning of period | $5,906 | $854 | $1,439 | $1,657 | $5,515 | $628 | $264 | $397 | $1,493 | $18,153 | ||||||||||||||||||||
Charge-Offs | (868 | ) | — | — | — | — | — | — | (1 | ) | — | (869 | ) | |||||||||||||||||
Recoveries | 193 | — | — | — | — | — | — | 5 | — | 198 | ||||||||||||||||||||
Provision (benefit) | 636 | 38 | (342 | ) | 628 | (217 | ) | 42 | 82 | 19 | 17 | 903 | ||||||||||||||||||
Balance, end of period | $5,867 | $892 | $1,097 | $2,285 | $5,298 | $670 | $346 | $420 | $1,510 | $18,385 | ||||||||||||||||||||
Balance, end of period: | ||||||||||||||||||||||||||||||
Individually evaluated | ||||||||||||||||||||||||||||||
for impairment | $— | $204 | $— | $— | $— | $— | $23 | $— | $— | $227 | ||||||||||||||||||||
Balance, end of period: | ||||||||||||||||||||||||||||||
Collectively evaluated | ||||||||||||||||||||||||||||||
for impairment | $5,867 | $688 | $1,097 | $2,285 | $5,298 | $670 | $323 | $420 | $1,510 | $18,158 | ||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||||
Balance, beginning of period | $5,643 | $644 | $1,653 | $1,580 | $4,704 | $656 | $285 | $410 | $1,148 | $16,723 | ||||||||||||||||||||
Charge-Offs | (107 | ) | — | — | — | — | (81 | ) | — | — | — | (188 | ) | |||||||||||||||||
Recoveries | 158 | — | — | — | — | 17 | — | 6 | — | 181 | ||||||||||||||||||||
Provision (benefit) | (7 | ) | 45 | 210 | (110 | ) | 184 | 79 | (20 | ) | (1 | ) | 322 | 702 | ||||||||||||||||
Balance, end of period | $5,687 | $689 | $1,863 | $1,470 | $4,888 | $671 | $265 | $415 | $1,470 | $17,418 | ||||||||||||||||||||
Balance, end of period: | ||||||||||||||||||||||||||||||
Individually evaluated | ||||||||||||||||||||||||||||||
for impairment | $265 | $— | $— | $— | $— | $— | $— | $— | $— | $265 | ||||||||||||||||||||
Balance, end of period: | ||||||||||||||||||||||||||||||
Collectively evaluated | ||||||||||||||||||||||||||||||
for impairment | $5,422 | $689 | $1,863 | $1,470 | $4,888 | $671 | $265 | $415 | $1,470 | $17,153 |
(In Thousands) | Commercial | Real estate construction one-to-four family | Real estate construction other | Real estate term owner occupied | Real estate term non-owner occupied | Real estate term other | Consumer secured by 1st deed of trust | Consumer other | Total | ||||||||||||||||||||||||||
June 30, 2016 | |||||||||||||||||||||||||||||||||||
Balance, end of period | $337,354 | $38,783 | $57,453 | $153,264 | $291,600 | $39,078 | $27,031 | $27,103 | $971,666 | ||||||||||||||||||||||||||
Balance, end of period: | |||||||||||||||||||||||||||||||||||
Individually evaluated | |||||||||||||||||||||||||||||||||||
for impairment | $19,578 | $3,972 | $1,912 | $16,516 | $673 | $739 | $983 | $— | $44,373 | ||||||||||||||||||||||||||
Balance, end of period: | |||||||||||||||||||||||||||||||||||
Collectively evaluated | |||||||||||||||||||||||||||||||||||
for impairment | $317,776 | $34,811 | $55,541 | $136,748 | $290,927 | $38,339 | $26,048 | $27,103 | $927,293 | ||||||||||||||||||||||||||
December 31, 2015 | |||||||||||||||||||||||||||||||||||
Balance, end of period | $329,534 | $44,488 | $74,931 | $128,763 | $314,069 | $38,029 | $26,673 | $28,912 | $985,399 | ||||||||||||||||||||||||||
Balance, end of period: | |||||||||||||||||||||||||||||||||||
Individually evaluated | |||||||||||||||||||||||||||||||||||
for impairment | $15,248 | $— | $— | $17,229 | $825 | $790 | $548 | $— | $34,640 | ||||||||||||||||||||||||||
Balance, end of period: | |||||||||||||||||||||||||||||||||||
Collectively evaluated | |||||||||||||||||||||||||||||||||||
for impairment | $314,286 | $44,488 | $74,931 | $111,534 | $313,244 | $37,239 | $26,125 | $28,912 | $950,759 |
(In Thousands) | Commercial | Real estate construction 1-4 family | Real estate construction other | Real estate term owner occupied | Real estate term non-owner occupied | Real estate term other | Consumer secured by 1st deeds of trust | Consumer other | Unallocated | Total | ||||||||||||||||||||
June 30, 2016 | ||||||||||||||||||||||||||||||
Individually evaluated for impairment: | ||||||||||||||||||||||||||||||
AQR Substandard | $— | $204 | $— | $— | $— | $— | $23 | $— | $— | $227 | ||||||||||||||||||||
Collectively: evaluated for impairment: | ||||||||||||||||||||||||||||||
AQR Pass | 5,764 | 688 | 1,097 | 2,240 | 5,298 | 666 | 320 | 409 | — | 16,482 | ||||||||||||||||||||
AQR Special Mention | 96 | — | — | 45 | — | 4 | 3 | — | — | 148 | ||||||||||||||||||||
AQR Substandard | 7 | — | — | — | — | — | — | 11 | — | 18 | ||||||||||||||||||||
Unallocated | — | — | — | — | — | — | — | — | 1,510 | 1,510 | ||||||||||||||||||||
$5,867 | $892 | $1,097 | $2,285 | $5,298 | $670 | $346 | $420 | $1,510 | $18,385 | |||||||||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||||||||
Individually evaluated for impairment: | ||||||||||||||||||||||||||||||
AQR Substandard | $344 | $— | $— | $— | $— | $— | $— | $— | $— | $344 | ||||||||||||||||||||
Collectively: evaluated for impairment: | ||||||||||||||||||||||||||||||
AQR Pass | 5,543 | 854 | 1,439 | 1,657 | 5,515 | 624 | 261 | 397 | — | 16,290 | ||||||||||||||||||||
AQR Special Mention | 11 | — | — | — | — | 4 | 3 | — | — | 18 | ||||||||||||||||||||
AQR Substandard | 8 | — | — | — | — | — | — | — | — | 8 | ||||||||||||||||||||
Unallocated | — | — | — | — | — | — | — | — | 1,493 | 1,493 | ||||||||||||||||||||
$5,906 | $854 | $1,439 | $1,657 | $5,515 | $628 | $264 | $397 | $1,493 | $18,153 |
(In Thousands) | June 30, 2016 | December 31, 2015 | ||||
Purchased receivables | $13,759 | $13,507 | ||||
Reserve for purchased receivable losses | (163 | ) | (181 | ) | ||
Total | $13,596 | $13,326 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
(In Thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||
Balance at beginning of period | $169 | $265 | $181 | $289 | ||||||||
Charge-offs | — | — | — | — | ||||||||
Recoveries | — | — | — | 30 | ||||||||
Charge-offs net of recoveries | — | — | — | 30 | ||||||||
Reserve for (recovery from) purchased receivables | (6 | ) | (18 | ) | (18 | ) | (72 | ) | ||||
Balance at end of period | $163 | $247 | $163 | $247 |
(In Thousands) | Asset Derivatives | |||||||||
June 30, 2016 | December 31, 2015 | |||||||||
Balance Sheet Location | Fair Value | Fair Value | ||||||||
Interest rate contracts | Other assets | $366 | $125 | |||||||
Interest rate lock commitments | Other assets | 2,580 | 1,514 | |||||||
Total | $2,946 | $1,639 |
(In Thousands) | Liability Derivatives | |||||||||
June 30, 2016 | December 31, 2015 | |||||||||
Balance Sheet Location | Fair Value | Fair Value | ||||||||
Interest rate contracts | Other liabilities | $950 | $216 |
(In Thousands) | Income Statement Location | June 30, 2016 | June 30, 2015 | ||||||
Interest rate contracts | Mortgage banking income | ($1,392 | ) | ($65 | ) | ||||
Interest rate lock commitments | Mortgage banking income | 1,020 | 573 | ||||||
Total | ($372 | ) | $508 |
June 30, 2016 | Gross amounts not offset in the Statement of Financial Position | |||||||||||||
(In Thousands) | Gross amounts of recognized assets and liabilities | Gross amounts offset in the Statement of Financial Position | Net amounts of assets and liabilities presented in the Statement of Financial Position | Financial Instruments | Collateral Posted | Net Amount | ||||||||
Asset Derivatives | ||||||||||||||
Interest rate contracts | $366 | $— | $366 | $— | $— | $366 | ||||||||
Liability Derivatives | ||||||||||||||
Interest rate contracts | $950 | $— | $950 | $— | $304 | $646 | ||||||||
December 31, 2015 | Gross amounts not offset in the Statement of Financial Position | |||||||||||||
(In Thousands) | Gross amounts of recognized assets and liabilities | Gross amounts offset in the Statement of Financial Position | Net amounts of assets and liabilities presented in the Statement of Financial Position | Financial Instruments | Collateral Posted | Net Amount | ||||||||
Asset Derivatives | ||||||||||||||
Interest rate contracts | $125 | $— | $125 | $— | $— | $125 | ||||||||
Liability Derivatives | ||||||||||||||
Interest rate contracts | $216 | $— | $216 | $— | $216 | $— |
• | Level 1: Valuation is based upon quoted prices for identical instruments traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. |
• | Level 2: Valuation is based upon quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. |
• | Level 3: Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s estimation of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. |
June 30, 2016 | December 31, 2015 | ||||||||||||||
(In Thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||
Financial assets: | |||||||||||||||
Level 1 inputs: | |||||||||||||||
Cash, due from banks and deposits in other banks | $74,756 | $74,756 | $58,673 | $58,673 | |||||||||||
Investment securities | 71,121 | 71,121 | 43,033 | 43,033 | |||||||||||
Level 2 inputs: | |||||||||||||||
Investment securities | 220,381 | 220,425 | 248,983 | 249,039 | |||||||||||
Investment in Federal Home Loan Bank stock | 1,966 | 1,966 | 1,816 | 1,816 | |||||||||||
Accrued interest receivable | 3,558 | 3,558 | 3,620 | 3,620 | |||||||||||
Interest rate contracts | 366 | 366 | 125 | 125 | |||||||||||
Level 3 inputs: | |||||||||||||||
Loans and loans held for sale | 1,027,706 | 1,029,593 | 1,031,340 | 1,033,551 | |||||||||||
Purchased receivables, net | 13,596 | 13,596 | 13,326 | 13,326 | |||||||||||
Interest rate lock commitments | 2,580 | 2,580 | 1,514 | 1,514 | |||||||||||
Mortgage servicing rights | 2,602 | 2,602 | 1,654 | 1,654 | |||||||||||
Financial liabilities: | |||||||||||||||
Level 2 inputs: | |||||||||||||||
Deposits | $1,255,688 | $1,255,709 | $1,240,792 | $1,240,223 | |||||||||||
Securities sold under repurchase agreements | 26,049 | 26,049 | 31,420 | 31,420 | |||||||||||
Borrowings | 4,362 | 4,204 | 2,120 | 2,101 | |||||||||||
Accrued interest payable | 126 | 126 | 56 | 56 | |||||||||||
Interest rate contracts | 950 | 950 | 216 | 216 | |||||||||||
Level 3 inputs: | |||||||||||||||
RML earn-out liability | 7,483 | 7,483 | 6,624 | 6,624 | |||||||||||
Junior subordinated debentures | 18,558 | 19,691 | 18,558 | 17,433 | |||||||||||
Unrecognized financial instruments: | |||||||||||||||
Commitments to extend credit(1) | $219,325 | $2,193 | $222,387 | $2,224 | |||||||||||
Standby letters of credit(1) | 8,256 | 83 | 6,399 | 64 |
(In Thousands) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
June 30, 2016 | |||||||||||||||
Assets: | |||||||||||||||
Available for sale securities | |||||||||||||||
U.S. Treasury and government sponsored entities | $235,436 | $30,315 | $205,121 | $— | |||||||||||
Municipal securities | 9,341 | — | 9,341 | — | |||||||||||
U.S. Agency mortgage-backed securities | 6 | — | 6 | — | |||||||||||
Corporate bonds | 40,885 | 35,873 | 5,012 | — | |||||||||||
Preferred stock | 4,933 | 4,933 | — | — | |||||||||||
Total available for sale securities | $290,601 | $71,121 | $219,480 | $— | |||||||||||
Interest rate contracts | $366 | $— | $366 | $— | |||||||||||
Interest rate lock commitments | 2,580 | — | — | 2,580 | |||||||||||
Mortgage servicing rights | 2,602 | — | — | 2,602 | |||||||||||
Total other assets | $5,548 | $— | $366 | $5,182 | |||||||||||
Liabilities: | |||||||||||||||
Interest rate contracts | $950 | $— | $950 | $— | |||||||||||
December 31, 2015 | |||||||||||||||
Assets: | |||||||||||||||
Available for sale securities | |||||||||||||||
U.S. Treasury and government sponsored entities | $237,436 | $35,008 | $202,428 | $— | |||||||||||
Municipal securities | 10,326 | — | 10,326 | — | |||||||||||
U.S. Agency mortgage-backed securities | 809 | — | 809 | — | |||||||||||
Corporate bonds | 39,018 | 4,501 | 34,517 | — | |||||||||||
Preferred stock | 3,524 | 3,524 | — | — | |||||||||||
Total available for sale securities | $291,113 | $43,033 | $248,080 | $— | |||||||||||
Interest rate contracts | $125 | $— | $125 | $— | |||||||||||
Interest rate lock commitments | 1,514 | — | — | 1,514 | |||||||||||
Mortgage servicing rights | 1,654 | — | — | 1,654 | |||||||||||
Total other assets | $3,293 | $— | $125 | $3,168 | |||||||||||
Liabilities: | |||||||||||||||
Interest rate contracts | $216 | $— | $216 | $— |
(In Thousands) | Beginning balance | Change included in earnings | Purchases and issuances | Sales and settlements | Ending balance | Net change in unrealized gains (losses) relating to items held at end of period | ||||||||||||
Three Months Ended June 30, 2016 | ||||||||||||||||||
Interest rate lock commitments | $1,858 | ($610 | ) | $6,027 | ($4,695 | ) | $2,580 | $2,580 | ||||||||||
Mortgage servicing rights | 2,234 | (245 | ) | 613 | — | 2,602 | — | |||||||||||
Total | $4,092 | ($855 | ) | $6,640 | ($4,695 | ) | $5,182 | $2,580 | ||||||||||
Three Months Ended June 30, 2015 | ||||||||||||||||||
Interest rate lock commitments | $1,972 | ($584 | ) | $5,705 | ($5,606 | ) | $1,487 | $1,487 | ||||||||||
Mortgage servicing rights | 971 | (29 | ) | — | — | 942 | — | |||||||||||
Total | $2,943 | ($613 | ) | $5,705 | ($5,606 | ) | $2,429 | $1,487 |
(In Thousands) | Beginning balance | Change included in earnings | Purchases and issuances | Sales and settlements | Ending balance | Net change in unrealized gains (losses) relating to items held at end of period | ||||||||||||
Six Months Ended June 30, 2016 | ||||||||||||||||||
Interest rate lock commitments | $1,514 | ($1,058 | ) | $10,443 | ($8,319 | ) | $2,580 | $2,580 | ||||||||||
Mortgage servicing rights | 1,654 | (357 | ) | 1,305 | — | 2,602 | — | |||||||||||
Total | $3,168 | ($1,415 | ) | $11,748 | ($8,319 | ) | $5,182 | $2,580 | ||||||||||
Six Months Ended June 30, 2015 | ||||||||||||||||||
Interest rate lock commitments | $841 | ($1,132 | ) | $10,891 | ($9,113 | ) | $1,487 | $1,487 | ||||||||||
Mortgage servicing rights | 1,010 | (68 | ) | — | — | 942 | — | |||||||||||
Total | $1,851 | ($1,200 | ) | $10,891 | ($9,113 | ) | $2,429 | $1,487 |
(In Thousands) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total (gains) losses | ||||||||||||||
June 30, 2016 | |||||||||||||||||||
Loans measured for impairment | $4,372 | $— | $— | $4,372 | ($118 | ) | |||||||||||||
Other real estate owned | 796 | — | — | 796 | 130 | ||||||||||||||
Total | $5,168 | $— | $— | $5,168 | $12 | ||||||||||||||
December 31, 2015 | |||||||||||||||||||
Loans measured for impairment | $1,061 | $— | $— | $1,061 | $269 | ||||||||||||||
Other real estate owned | 830 | — | — | 830 | 361 | ||||||||||||||
Total | $1,891 | $— | $— | $1,891 | $630 |
Financial Instrument | Valuation Technique | Unobservable Input | Weighted Average Rate Range | |
Loans measured for impairment | In-house valuation of collateral | Discount rate | 25% - 30% | |
Interest rate lock commitment | External pricing model | Pull through rate | 91.62 | % |
Mortgage servicing rights | Discounted cash flow | Constant prepayment rate | 11.15% - 21.30% | |
Discount rate | 8.87% - 10.50% | |||
RML earn-out liability | Discounted cash flow | Discount rate | 0.35% - 6.41% | |
Financial projections of mortgage operations | NA(1) |
Three Months Ended June 30, 2016 | |||||||||||
(In Thousands) | Community Banking | Home Mortgage Lending | Consolidated | ||||||||
Interest income | $14,246 | $472 | $14,718 | ||||||||
Interest expense | 417 | 222 | 639 | ||||||||
Net interest income | 13,829 | 250 | 14,079 | ||||||||
Provision for loan losses | 200 | — | 200 | ||||||||
Other operating income | 3,354 | 8,510 | 11,864 | ||||||||
Change in fair value, RML earn-out liability | 687 | — | 687 | ||||||||
Other operating expense | 12,504 | 6,178 | 18,682 | ||||||||
Income before provision for income taxes | 3,792 | 2,582 | 6,374 | ||||||||
Provision for income taxes | 805 | 1,063 | 1,868 | ||||||||
Net income | 2,987 | 1,519 | 4,506 | ||||||||
Less: net income attributable to the noncontrolling interest | 156 | — | 156 | ||||||||
Net income attributable to Northrim BanCorp, Inc. | $2,831 | $1,519 | $4,350 |
Three Months Ended June 30, 2015 | |||||||||||
(In Thousands) | Community Banking | Home Mortgage Lending | Consolidated | ||||||||
Interest income | $14,354 | $589 | $14,943 | ||||||||
Interest expense | 370 | 378 | 748 | ||||||||
Net interest income | 13,984 | 211 | 14,195 | ||||||||
Provision for loan losses | 376 | — | 376 | ||||||||
Other operating income | 3,704 | 7,859 | 11,563 | ||||||||
Change in fair value, RML earn-out liability | 587 | — | 587 | ||||||||
Other operating expense | 11,430 | 5,736 | 17,166 | ||||||||
Income before provision for income taxes | 5,295 | 2,334 | 7,629 | ||||||||
Provision for income taxes | 1,722 | 964 | 2,686 | ||||||||
Net income | 3,573 | 1,370 | 4,943 | ||||||||
Less: net income attributable to the noncontrolling interest | 162 | — | 162 | ||||||||
Net income attributable to Northrim BanCorp, Inc. | $3,411 | $1,370 | $4,781 |
Six Months Ended June 30, 2016 | |||||||||||
(In Thousands) | Community Banking | Home Mortgage Lending | Consolidated | ||||||||
Interest income | $28,694 | $842 | $29,536 | ||||||||
Interest expense | 932 | 351 | 1,283 | ||||||||
Net interest income | 27,762 | 491 | 28,253 | ||||||||
Provision for loan losses | 903 | — | 903 | ||||||||
Other operating income | 6,763 | 14,206 | 20,969 | ||||||||
Change in fair value, RML earn-out liability | 817 | — | 817 | ||||||||
Other operating expense | 24,810 | 11,113 | 35,923 | ||||||||
Income before provision for income taxes | 7,995 | 3,584 | 11,579 | ||||||||
Provision for income taxes | 2,090 | 1,477 | 3,567 | ||||||||
Net income | 5,905 | 2,107 | 8,012 | ||||||||
Less: net income attributable to the noncontrolling interest | 286 | — | 286 | ||||||||
Net income attributable to Northrim BanCorp, Inc. | $5,619 | $2,107 | $7,726 |
Six Months Ended June 30, 2015 | |||||||||||
(In Thousands) | Community Banking | Home Mortgage Lending | Consolidated | ||||||||
Interest income | $28,344 | $985 | $29,329 | ||||||||
Interest expense | 844 | 658 | 1,502 | ||||||||
Net interest income | 27,500 | 327 | 27,827 | ||||||||
Provision for loan losses | 702 | — | 702 | ||||||||
Other operating income | 6,933 | 15,165 | 22,098 | ||||||||
Change in fair value, RML earn-out liability | 2,089 | — | 2,089 | ||||||||
Other operating expense | 23,252 | 10,873 | 34,125 | ||||||||
Income before provision for income taxes | 8,390 | 4,619 | 13,009 | ||||||||
Provision for income taxes | 2,526 | 1,907 | 4,433 | ||||||||
Net income | 5,864 | 2,712 | 8,576 | ||||||||
Less: net income attributable to the noncontrolling interest | 234 | — | 234 | ||||||||
Net income attributable to Northrim BanCorp, Inc. | $5,630 | $2,712 | $8,342 |
June 30, 2016 | |||||||||||
(In Thousands) | Community Banking | Home Mortgage Lending | Consolidated | ||||||||
Total assets | $1,436,273 | $82,097 | $1,518,370 | ||||||||
Loans held for sale | $— | $60,360 | $60,360 |
December 31, 2015 | |||||||||||
(In Thousands) | Community Banking | Home Mortgage Lending | Consolidated | ||||||||
Total assets | $1,431,759 | $67,733 | $1,499,492 | ||||||||
Loans held for sale | $— | $50,553 | $50,553 |
• | Year-to-date net income attributable to the Company decreased 7% to $7.7 million, or $1.11 per diluted share at June 30, 2016, from $8.3 million, or $1.20 per diluted share at June 30, 2015. |
• | Total revenues, which include net interest income plus other operating income, increased 1% to $25.9 million in the second quarter of 2016 from total revenues of $25.8 million in the second quarter a year ago, mainly as a result of a higher mortgage banking income in 2016. |
• | Average portfolio loans increased $2.5 million to $969.5 million for the second quarter of 2016 as compared to $967.0 million for the second quarter of 2015. |
• | Net interest income decreased 1% to $14.1 million in the second quarter of 2016, compared to $14.2 million in the quarter ended June 30, 2015 primarily due to a decrease in the yield on portfolio loans in the second quarter of 2016. |
• | Northrim paid a quarterly cash dividend of $0.19 per share in June of 2016, compared to the $0.18 per share dividend paid in June 2015. The dividend provides a yield of approximately 2.7% at current market share prices. |
• | Book value per share increased to $26.75 at the end of the second quarter of 2016 as compared to $25.77 at December 31, 2015. |
• | The Company remains well-capitalized with Tier 1 Capital to Risk Adjusted Assets at June 30, 2016, of 13.85%, compared to 13.34% at December 31, 2015. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2016 | 2015 | 2016 | 2015 | |||||
Return on average assets | 1.17 | % | 1.33 | % | 1.04 | % | 1.17 | % |
Return on average shareholders' equity | 9.42 | % | 11.46 | % | 8.53 | % | 10.07 | % |
Dividend payout ratio | 30.37 | % | 26.04 | % | 34.13 | % | 29.85 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(In Thousands) | ||||||||||||
Balance, beginning of the period | $2,702 | $4,209 | $3,053 | $4,607 | ||||||||
Transfers from loans | — | 156 | — | 337 | ||||||||
Proceeds from the sale of other real estate owned | (66 | ) | (1,660 | ) | (477 | ) | (1,971 | ) | ||||
Gain on sale of other real estate owned, net | 52 | 136 | 112 | 136 | ||||||||
Deferred gain on sale of other real estate owned | — | (34 | ) | — | (34 | ) | ||||||
Impairment on other real estate owned | (130 | ) | — | (130 | ) | (268 | ) | |||||
Balance at end of period | $2,558 | $2,807 | $2,558 | $2,807 |
(Dollars in Thousands) | Three Months Ended June 30, | |||||||||||||||||||||||||||
Interest income/ | Average Yields/Costs | |||||||||||||||||||||||||||
Average Balances | Change | expense | Change | Tax Equivalent | ||||||||||||||||||||||||
2016 | 2015 | $ | % | 2016 | 2015 | $ | % | 2016 | 2015 | Change | ||||||||||||||||||
Loans1,2 | $969,450 | $966,952 | $2,498 | — | % | $13,241 | $13,548 | ($307 | ) | (2 | )% | 5.54 | % | 5.67 | % | (0.13 | )% | |||||||||||
Loans held for sale | 48,826 | 66,074 | (17,248 | ) | (26 | )% | 469 | 587 | (118 | ) | (20 | )% | 3.85 | % | 3.56 | % | 0.29 | % | ||||||||||
Short-term investments3 | 33,151 | 39,229 | (6,078 | ) | (15 | )% | 41 | 24 | 17 | 71 | % | 0.49 | % | 0.25 | % | 0.24 | % | |||||||||||
Long-term investments4 | 293,716 | 229,485 | 64,231 | 28 | % | 967 | 784 | 183 | 23 | % | 1.44 | % | 1.50 | % | (0.06 | )% | ||||||||||||
Total investments | 326,867 | 268,714 | 58,153 | 22 | % | 1,008 | 808 | 200 | 25 | % | 1.35 | % | 1.32 | % | 0.03 | % | ||||||||||||
Interest-earning assets | 1,345,143 | 1,301,740 | 43,403 | 3 | % | 14,718 | 14,943 | (225 | ) | (2 | )% | 4.46 | % | 4.67 | % | (0.21 | )% | |||||||||||
Nonearning assets | 144,274 | 143,404 | 870 | 1 | % | |||||||||||||||||||||||
Total | $1,489,417 | $1,445,144 | $44,273 | 3 | % | |||||||||||||||||||||||
Interest-bearing demand | $192,703 | $178,451 | $14,252 | 8 | % | $17 | $15 | $2 | 13 | % | 0.04 | % | 0.03 | % | 0.01 | % | ||||||||||||
Savings deposits | 232,566 | 227,761 | 4,805 | 2 | % | 120 | 121 | (1 | ) | (1 | )% | 0.10 | % | 0.11 | % | (0.01 | )% | |||||||||||
Money market deposits | 242,821 | 230,925 | 11,896 | 5 | % | 104 | 99 | 5 | 5 | % | 0.09 | % | 0.09 | % | — | % | ||||||||||||
Time deposits | 136,854 | 147,835 | (10,981 | ) | (7 | )% | 238 | 258 | (20 | ) | (8 | )% | 0.70 | % | 0.70 | % | — | % | ||||||||||
Total interest-bearing deposits | 804,944 | 784,972 | 19,972 | 3 | % | 479 | 493 | (14 | ) | (3 | )% | 0.24 | % | 0.25 | % | (0.01 | )% | |||||||||||
Borrowings | 47,996 | 54,644 | (6,648 | ) | (12 | )% | 160 | 255 | (95 | ) | (37 | )% | 1.30 | % | 1.85 | % | (0.55 | )% | ||||||||||
Total interest-bearing liabilities | 852,940 | 839,616 | 13,324 | 2 | % | 639 | 748 | (109 | ) | (15 | )% | 0.30 | % | 0.36 | % | (0.06 | )% | |||||||||||
Demand deposits and other noninterest | ||||||||||||||||||||||||||||
-bearing liabilities | 450,707 | 438,230 | 12,477 | 3 | % | |||||||||||||||||||||||
Equity | 185,770 | 167,298 | 18,472 | 11 | % | |||||||||||||||||||||||
Total | $1,489,417 | $1,445,144 | $44,273 | 3 | % | |||||||||||||||||||||||
Net interest income | $14,079 | $14,195 | ($116 | ) | (1 | )% | ||||||||||||||||||||||
Net interest margin | 4.21 | % | 4.37 | % | (0.16 | )% | ||||||||||||||||||||||
Average loans to average interest-earning assets | 72.07 | % | 74.28 | % | ||||||||||||||||||||||||
Average loans to average total deposits | 78.49 | % | 81.03 | % | ||||||||||||||||||||||||
Average non-interest deposits to average total deposits | 34.83 | % | 34.22 | % | ||||||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 157.71 | % | 155.04 | % | ||||||||||||||||||||||||
Average yield on interest-earning assets | 1.05 | % | 1.09 | % |
(In Thousands) | Three Months Ended June 30, 2016 vs. 2015 | ||||||||
Increase (decrease) due to | |||||||||
Volume | Rate | Total | |||||||
Interest Income: | |||||||||
Loans | ($38 | ) | ($269 | ) | ($307 | ) | |||
Loans held for sale | (175 | ) | 57 | (118 | ) | ||||
Short-term investments | (4 | ) | 21 | 17 | |||||
Long-term investments | 226 | (43 | ) | 183 | |||||
Total interest income | $9 | ($234 | ) | ($225 | ) | ||||
Interest Expense: | |||||||||
Interest-bearing deposits | $22 | ($36 | ) | ($14 | ) | ||||
Borrowings | (28 | ) | (67 | ) | (95 | ) | |||
Total interest expense | ($6 | ) | ($103 | ) | ($109 | ) |
(Dollars in Thousands) | Six Months Ended June 30, | |||||||||||||||||||||||||||
Interest income/ | Average Yields/Costs | |||||||||||||||||||||||||||
Average Balances | Change | expense | Change | Tax Equivalent | ||||||||||||||||||||||||
2016 | 2015 | $ | % | 2016 | 2015 | $ | % | 2016 | 2015 | Change | ||||||||||||||||||
Loans1,2 | $974,783 | $956,571 | $18,212 | 2 | % | $26,650 | $26,620 | $30 | — | % | 5.54 | % | 5.65 | % | (0.11 | )% | ||||||||||||
Loans held for sale | 43,495 | 54,780 | (11,285 | ) | (21 | )% | 838 | 982 | (144 | ) | (15 | )% | 3.86 | % | 3.62 | % | 0.24 | % | ||||||||||
Short-term investments3 | 35,587 | 26,972 | 8,615 | 32 | % | 88 | 35 | 53 | 151 | % | 0.49 | % | 0.26 | % | 0.23 | % | ||||||||||||
Long-term investments4 | 292,662 | 250,000 | 42,662 | 17 | % | 1,960 | 1,692 | 268 | 16 | % | 1.47 | % | 1.49 | % | (0.02 | )% | ||||||||||||
Total investments | 328,249 | 276,972 | 51,277 | 19 | % | 2,048 | 1,727 | 321 | 19 | % | 1.37 | % | 1.38 | % | (0.01 | )% | ||||||||||||
Interest-earning assets | 1,346,527 | 1,288,323 | 58,204 | 5 | % | 29,536 | 29,329 | 207 | 1 | % | 4.47 | % | 4.65 | % | (0.18 | )% | ||||||||||||
Nonearning assets | 142,777 | 148,888 | (6,111 | ) | (4 | )% | ||||||||||||||||||||||
Total | $1,489,304 | $1,437,211 | $52,093 | 4 | % | |||||||||||||||||||||||
Interest-bearing demand | $195,173 | $179,118 | $16,055 | 9 | % | $34 | $30 | $4 | 13 | % | 0.04 | % | 0.03 | % | 0.01 | % | ||||||||||||
Savings deposits | 231,526 | 225,222 | 6,304 | 3 | % | 237 | 237 | — | — | % | 0.10 | % | 0.11 | % | (0.01 | )% | ||||||||||||
Money market deposits | 242,219 | 228,318 | 13,901 | 6 | % | 208 | 196 | 12 | 6 | % | 0.09 | % | 0.09 | % | — | % | ||||||||||||
Time deposits | 136,466 | 147,441 | (10,975 | ) | (7 | )% | 471 | 507 | (36 | ) | (7 | )% | 0.69 | % | 0.69 | % | — | % | ||||||||||
Total interest-bearing deposits | 805,384 | 780,099 | 25,285 | 3 | % | 950 | 970 | (20 | ) | (2 | )% | 0.24 | % | 0.25 | % | (0.01 | )% | |||||||||||
Borrowings | 49,430 | 56,801 | (7,371 | ) | (13 | )% | 333 | 532 | (199 | ) | (37 | )% | 1.32 | % | 1.84 | % | (0.52 | )% | ||||||||||
Total interest-bearing liabilities | 854,814 | 836,900 | 17,914 | 2 | % | 1,283 | 1,502 | (219 | ) | (15 | )% | 0.30 | % | 0.36 | % | (0.06 | )% | |||||||||||
Demand deposits and other noninterest | ||||||||||||||||||||||||||||
-bearing liabilities | 452,408 | 433,198 | 19,210 | 4 | % | |||||||||||||||||||||||
Equity | 182,082 | 167,113 | 14,969 | 9 | % | |||||||||||||||||||||||
Total | $1,489,304 | $1,437,211 | $52,093 | 4 | % | |||||||||||||||||||||||
Net interest income | $28,253 | $27,827 | $426 | 2 | % | |||||||||||||||||||||||
Net interest margin | 4.22 | % | 4.36 | % | (0.14 | )% | ||||||||||||||||||||||
Average loans to average interest-earning assets | 72.39 | % | 74.25 | % | ||||||||||||||||||||||||
Average loans to average total deposits | 78.88 | % | 81.24 | % | ||||||||||||||||||||||||
Average non-interest deposits to average total deposits | 34.83 | % | 33.75 | % | ||||||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 157.52 | % | 153.94 | % | ||||||||||||||||||||||||
Average yield on interest-earning assets | 2.10 | % | 2.16 | % |
(In Thousands) | Six Months Ended June 30, 2016 vs. 2015 | ||||||||
Increase (decrease) due to | |||||||||
Volume | Rate | Total | |||||||
Interest Income: | |||||||||
Loans | $492 | ($462 | ) | $30 | |||||
Loans held for sale | (220 | ) | 76 | (144 | ) | ||||
Short-term investments | 14 | 39 | 53 | ||||||
Long-term investments | 294 | (26 | ) | 268 | |||||
Total interest income | $580 | ($373 | ) | $207 | |||||
Interest Expense: | |||||||||
Interest-bearing deposits | $37 | ($57 | ) | ($20 | ) | ||||
Borrowings | (63 | ) | (136 | ) | (199 | ) | |||
Total interest expense | ($26 | ) | ($193 | ) | ($219 | ) |
June 30, 2016 | December 31, 2015 | |||||||||
Dollar Amount | Percent of Total | Dollar Amount | Percent of Total | |||||||
(In Thousands) | ||||||||||
Balance | % of total | Balance | % of total | |||||||
U.S. Treasury securities | $30,315 | 10.4 | % | $35,008 | 12.0 | % | ||||
U.S. Agency securities | 205,121 | 70.4 | % | 202,428 | 69.3 | % | ||||
U.S. Agency mortgage-backed securities | 6 | — | % | 809 | 0.3 | % | ||||
Corporate bonds | 40,885 | 14.0 | % | 39,018 | 13.4 | % | ||||
Preferred stock | 4,933 | 1.7 | % | 3,524 | 1.2 | % | ||||
Municipal securities | 10,242 | 3.5 | % | 11,229 | 3.8 | % | ||||
Total portfolio investments | $291,502 | $292,016 |
June 30, 2016 | December 31, 2015 | |||||||||
Dollar Amount | Percent of Total | Dollar Amount | Percent of Total | |||||||
(In Thousands) | ||||||||||
Commercial | $337,354 | 34.9 | % | $329,534 | 33.6 | % | ||||
Real estate construction one-to-four family | 38,783 | 4.0 | % | 44,488 | 4.5 | % | ||||
Real estate construction other | 57,453 | 5.9 | % | 74,931 | 7.6 | % | ||||
Real estate term owner occupied | 153,264 | 15.8 | % | 128,763 | 13.1 | % | ||||
Real estate term non-owner occupied | 291,600 | 30.1 | % | 314,069 | 32.0 | % | ||||
Real estate term other | 39,078 | 4.0 | % | 38,029 | 3.9 | % | ||||
Consumer secured by 1st deeds of trust | 27,031 | 2.8 | % | 26,673 | 2.7 | % | ||||
Consumer other | 27,103 | 2.8 | % | 28,912 | 2.9 | % | ||||
Subtotal | $971,666 | $985,399 | ||||||||
Less: Unearned origination fee, | ||||||||||
net of origination costs | (4,320 | ) | (0.3 | )% | (4,612 | ) | (0.3 | )% | ||
Total loans | $967,346 | $980,787 |
(In Thousands) | Commercial | Real estate construction one-to-four family | Real estate construction other | Real estate term owner occupied | Real estate term non-owner occupied | Real estate term other | Consumer secured by 1st deeds of trust | Consumer other | Total | ||||||||||||||||||
June 30, 2016 | |||||||||||||||||||||||||||
AQR Pass | $22,414 | $— | $— | $6,764 | $8,361 | $— | $— | $— | $37,539 | ||||||||||||||||||
AQR Special Mention | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
AQR Substandard | 4,234 | — | — | — | — | — | — | — | 4,234 | ||||||||||||||||||
Total | $26,648 | $— | $— | $6,764 | $8,361 | $— | $— | $— | $41,773 | ||||||||||||||||||
December 31, 2015 | |||||||||||||||||||||||||||
AQR Pass | $31,746 | $— | $— | $6,990 | $8,544 | $— | $— | $— | $47,280 | ||||||||||||||||||
Total | $31,746 | $— | $— | $6,990 | $8,544 | $— | $— | $— | $47,280 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
(In Thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||
Balance at beginning of period | $18,183 | $16,947 | $18,153 | $16,723 | ||||||||||
Charge-offs: | ||||||||||||||
Commercial | 135 | — | 868 | 107 | ||||||||||
Real estate term other | — | — | — | 81 | ||||||||||
Consumer other | — | — | 1 | — | ||||||||||
Total charge-offs | 135 | — | 869 | 188 | ||||||||||
Recoveries: | ||||||||||||||
Commercial | 135 | 91 | 193 | 158 | ||||||||||
Real estate term other | — | — | — | 17 | ||||||||||
Consumer other | 2 | 4 | 5 | 6 | ||||||||||
Total recoveries | 137 | 95 | 198 | 181 | ||||||||||
Net, charge-offs | (2 | ) | (95 | ) | 671 | 7 | ||||||||
Provision for loan losses | 200 | 376 | 903 | 702 | ||||||||||
Balance at end of period | $18,385 | $17,418 | $18,385 | $17,418 |
June 30, 2016 | December 31, 2015 | |||||||||
(In thousands) | Balance | % of total | Balance | % of total | ||||||
Demand deposits | $461,970 | 37 | % | $430,191 | 35 | % | ||||
Interest-bearing demand | 183,885 | 15 | % | 209,291 | 17 | % | ||||
Savings deposits | 231,246 | 18 | % | 227,969 | 18 | % | ||||
Money market deposits | 241,334 | 19 | % | 236,675 | 19 | % | ||||
Time deposits | 137,253 | 11 | % | 136,666 | 11 | % | ||||
Total deposits | $1,255,688 | $1,240,792 |
Time Certificates of Deposits | |||||
of $100,000 or More | |||||
Percent of Total Deposits | |||||
(In Thousands) | Amount | ||||
Amounts maturing in: | |||||
Three months or less | $31,531 | 37 | % | ||
Over 3 through 6 months | 11,326 | 13 | % | ||
Over 6 through 12 months | 14,289 | 17 | % | ||
Over 12 months | 29,174 | 33 | % | ||
Total | $86,320 | 100 | % |
Adequately-Capitalized | Well-Capitalized | Northrim BanCorp, Inc. | Northrim Bank | ||||
June 30, 2016 | |||||||
Common equity tier 1 capital | 4.50% | 6.50% | 12.48% | 12.51% | |||
Tier 1 risk-based capital | 6.00% | 8.00% | 13.85% | 12.51% | |||
Total risk-based capital | 8.00% | 10.00% | 15.11% | 13.76% | |||
Leverage ratio | 4.00% | 5.00% | 12.10% | 10.90% | |||
December 31, 2015 | |||||||
Common equity tier 1 capital | 4.50% | 6.50% | 12.01% | 12.21% | |||
Tier 1 risk-based capital | 6.00% | 8.00% | 13.34% | 12.16% | |||
Total risk-based capital | 8.00% | 10.00% | 14.60% | 13.41% | |||
Leverage ratio | 4.00% | 5.00% | 11.20% | 10.18% |
10.1 | Employment Agreement with Benjamin Craig dated April 15, 2016 (incorporated by reference to the Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on April 20, 2016) |
31.1 | Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) |
31.2 | Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) |
32.1 | Certification of Chief Executive Officer required by Rule 13a-14(b) or Rule 15d-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 |
32.2 | Certification of Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350 |
101.INS | XBRL Instance Document |
101.SCH | XBRL Schema Document |
101.CAL | XBRL Calculation Linkbase Document |
101.LAB | XBRL Labels Linkbase Document |
101.PRE | XBRL Presentation Linkbase Document |
101.DEF | XBRL Definition Linkbase Document |
August 8, 2016 | By | /s/ Joseph M. Beedle |
Joseph M. Beedle | ||
Chairman, President, and Chief Executive Officer | ||
(Principal Executive Officer) |
August 8, 2016 | By | /s/ Latosha M. Frye |
Latosha M. Frye | ||
Executive Vice President, Chief Financial Officer | ||
(Principal Financial and Accounting Officer) |
1. | I have reviewed this Quarterly report on Form 10-Q of Northrim BanCorp, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Joseph M. Beedle | |
Joseph M. Beedle | |
Chief Executive Officer |
1. | I have reviewed this Quarterly report on Form 10-Q of Northrim BanCorp, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Latosha M. Frye | |
Latosha M. Frye | |
Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Joseph M. Beedle | |
Joseph M. Beedle | |
Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Latosha M. Frye | |
Latosha M. Frye | |
Chief Financial Officer |
Document And Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Aug. 08, 2016 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Entity Registrant Name | NORTHRIM BANCORP INC | |
Entity Central Index Key | 0001163370 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Entity Common Stock, Shares Outstanding | 6,882,482 | |
Trading Symbol | NRIM |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 2,500,000 | 2,500,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 6,877,140 | 6,877,140 |
Common stock, shares outstanding (in shares) | 6,877,140 | 6,877,140 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4,506 | $ 4,943 | $ 8,012 | $ 8,576 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gains (losses) arising during the period | 466 | (152) | 1,792 | 736 |
Reclassification of net (gains) losses included in net income (net of tax (benefit) expense of $5 and $7 for the second quarter of 2016 and 2015, respectively and ($5) and $53 for the six months ended June 30, 2016 and 2015, respectively) | (7) | (9) | 6 | (77) |
Income tax expense (benefit) related to unrealized gains and losses | (174) | 58 | (644) | (263) |
Other comprehensive income (loss), net of tax | 285 | (103) | 1,154 | 396 |
Comprehensive income | 4,791 | 4,840 | 9,166 | 8,972 |
Less: comprehensive income attributable to the noncontrolling interest | 156 | 162 | 286 | 234 |
Comprehensive income attributable to Northrim BanCorp, Inc. | $ 4,635 | $ 4,678 | $ 8,880 | $ 8,738 |
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Reclassification of net (gains) losses, tax (benefit) expense | $ 5 | $ 7 | $ (5) | $ 53 |
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements and corresponding footnotes have been prepared by Northrim BanCorp, Inc. (the “Company”) in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with instructions to Form 10-Q under the Securities Exchange Act of 1934, as amended. The year-end Consolidated Balance Sheet data was derived from the Company's audited financial statements. Accordingly, they do not include all of the information and footnotes required by Generally Accepted Accounting Principles ("GAAP") for complete financial statements. The Company owns a 100% interest in Residential Mortgage Holding Company, LLC ("RML"), the parent company of Residential Mortgage, LLC ("Residential Mortgage") and a 50.1% interest in Northrim Benefits Group, LLC ("NBG") and consolidates their balance sheets and income statements into its financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain immaterial reclassifications have been made to prior year amounts to maintain consistency with the current year with no impact on net income or total shareholders’ equity. The Company determined that it operates in two primary operating segments: Community Banking and Home Mortgage Lending. The Company has evaluated events and transactions through August 8, 2016 for potential recognition or disclosure. Operating results for the interim period ended June 30, 2016, are not necessarily indicative of the results anticipated for the year ending December 31, 2016. These consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. |
Significant Accounting Policies and Recent Accounting Pronouncements |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Recent Accounting Pronouncements | Significant Accounting Policies and Recent Accounting Pronouncements The Company’s significant accounting policies are discussed in Note 1 to the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 requires that equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU 2016-01 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2017, and the Company will apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption and the amendments related to equity securities without readily determinable fair values (including disclosure requirements) will be applied prospectively to equity investments that exist as of the date of adoption of ASU 2016-01. The Company does not believe that the adoption of this standard will have a material impact on the Company’s consolidated financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about lease arrangements. ASU 2016-02 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2018, and must be applied prospectively. The Company is currently evaluating how the adoption of this standard will impact the Company’s consolidated financial position and results of operations. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Option in Debt Instruments (“ASU 2016-06”). ASU 2016-06 simplifies the embedded derivative analysis for debt instruments containing contingent call or put options by removing the requirement to assess whether a contingent event is related to interest rates or credit risks. ASU 2016-06 is effective for the Company's financial statements for annual and interim periods beginning on or after December 15, 2016, and interim periods within those fiscal years. The Company does not believe that the adoption of this standard will have a material impact on the Company’s consolidated financial position or results of operations. In March 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”). ASU 2016-07 eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. ASU 2016-07 requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. ASU 2016-17 requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. ASU 2016-07 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2016, and must be applied prospectively. The Company does not believe that the adoption of this standard will have a material impact on the Company’s consolidated financial position or results of operations. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2016, and must be applied prospectively. The Company does not believe that the adoption of this standard will have a material impact on the Company’s consolidated financial position or results of operations. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (“ASU 2016-13”). ASU 2016-13 requires a financial asset (or a group of financial assets) that is measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset or assets to present the net carrying value at the amount expected to be collected on the financial asset. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination ("PCD assets") that are measured at amortized cost basis is determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for these assets. Interest income for PCD assets should be recognized based on the effective interest rate, excluding the discount embedded in the purchase price that is attributable to the acquirer’s assessment of credit losses at acquisition. ASU 2016-13 requires credit losses relating to available-for-sale debt securities to be recorded through an allowance for credit losses. Available-for-sale accounting recognizes that value may be realized either through collection of contractual cash flows or through sale of the security. Therefore, the amendments limit the amount of the allowance for credit losses to the amount by which fair value is below amortized cost because the classification as available for sale is premised on an investment strategy that recognizes that the investment could be sold at fair value, if cash collection would result in the realization of an amount less than fair value. The allowance for credit losses for purchased available-for-sale securities with a more-than-insignificant amount of credit deterioration since origination is determined in a similar manner to other available-for-sale debt securities; however, the initial allowance for credit losses is added to the purchase price rather than reported as a credit loss expense. Only subsequent changes in the allowance for credit losses are recorded in credit loss expense. Interest income should be recognized based on the effective interest rate, excluding the discount embedded in the purchase price. ASU 2016-13 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2019, and must be applied prospectively. The Company is currently evaluating the impact that the adoption of this standard will have on the Company’s consolidated financial position and results of operations. |
Cash and Cash Equivalents |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Cash and Due from Banks [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company is required to maintain a $500,000 minimum average daily balance with the Federal Reserve Bank of San Francisco ("Federal Reserve Bank") for purposes of settling financial transactions and charges for Federal Reserve Bank services. The Company is also required to maintain cash balances or deposits with the Federal Reserve Bank sufficient to meet its statutory reserve requirements. The Company is required to maintain a $500,000 balance with a correspondent bank for outsourced servicing of ATMs. |
Investment Securities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The carrying values and estimated fair values of investment securities at the periods indicated are presented below:
Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2016 and December 31, 2015 were as follows:
The unrealized losses on investments in government sponsored entities, corporate bonds, preferred stock, and municipal securities in both periods were caused by changes in interest rates. At June 30, 2016 and December 31, 2015, respectively, there were eight and thirty-nine available-for-sale securities with unrealized losses that have been in a loss position for less than twelve months. There were two and six securities as of June 30, 2016 and December 31, 2015 that have been in an unrealized loss position for more than twelve months. The contractual terms of the investments in a loss position do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because it is more likely than not that the Company will hold these investments until a market price recovery or maturity, these investments are not considered other-than-temporarily impaired. At June 30, 2016 and December 31, 2015, $55.5 million and $59.7 million in securities were pledged for deposits and borrowings. The amortized cost and estimated fair values of debt securities at June 30, 2016, are distributed by contractual maturity as shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Although preferred stock has no stated maturity, it is aggregated in the calculation of weighted average yields presented below in the category of investments that mature in ten years or more.
The proceeds and resulting gains and losses, computed using specific identification, from sales of investment securities for the six months ending June 30, 2016 and 2015, respectively, are as follows:
A summary of interest income for the six months ending June 30, 2016 and 2015 on available for sale investment securities is as follows:
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Loans and Credit Quality |
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Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Credit Quality | Loans and Credit Quality The following table presents total portfolio loans by portfolio segment and class of financing receivable, based on our asset quality rating ("AQR") criteria:
Loans are carried at their principal amount outstanding, net of charge-offs, unamortized fees and direct loan origination costs. Loan balances are charged-off to the allowance for loan losses ("Allowance") when management believes that collection of principal is unlikely. Interest income on loans is accrued and recognized on the principal amount outstanding except for loans in a nonaccrual status. All classes of loans are placed on nonaccrual and considered impaired when management believes doubt exists as to the collectability of the interest or principal. Cash payments received on nonaccrual loans are directly applied to the principal balance. Generally, a loan may be returned to accrual status when the delinquent principal and interest is brought current in accordance with the terms of the loan agreement. Additionally, certain ongoing performance criteria, which generally includes a performance period of six months, must be met in order for a loan to be returned to accrual status. Loans are reported as past due when installment payments, interest payments, or maturity payments are past due based on contractual terms. Nonaccrual loans: Nonaccrual loans net of government guarantees totaled $9.6 million and $2.1 million at June 30, 2016 and December 31, 2015, respectively. Nonaccrual loans at the periods indicated, by segment, are presented below:
Past Due Loans: Past due loans and nonaccrual loans at the periods indicated are presented below by segment:
Impaired Loans: The Company considers a loan to be impaired when it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan agreement. Once a loan is determined to be impaired, the impairment is measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate, except that if the loan is collateral dependent, the impairment is measured by using the fair value of the loan’s collateral. Nonperforming loans greater than $50,000 are individually evaluated for impairment based upon the borrower’s overall financial condition, resources, and payment record, and the prospects for support from any financially responsible guarantors. At June 30, 2016 and December 31, 2015, the recorded investment in loans that are considered to be impaired was $44.4 million and $34.6 million, respectively. The following table presents information about impaired loans by class as of the periods indicated:
The unpaid principal balance included in the tables above represents the recorded investment at the dates indicated, plus amounts charged off for book purposes. The following tables summarize our average recorded investment and interest income recognized on impaired loans for the three and six month periods ended June 30, 2016 and 2015, respectively:
Purchased Credit Impaired Loans: The Company acquired 18 purchased credit impaired loans in connection with its acquisition of Alaska Pacific Bancshares, Inc. on April 1, 2014 subject to the requirements of FASB ASC 310-30 Loans and Debt Securities Acquired with Deteriorated Credit Quality. This group of loans consists primarily of commercial and commercial real estate loans, and unlike a pool of consumer mortgages, it is not practicable for the Company to analyze the accretable yield of these loans. As such, the Company has elected the cost recovery method of income recognition for these loans, and thus no accretable difference has been identified for these loans. At the acquisition date, April 1, 2014, the fair value of this group of loans was $3.9 million. The carrying value of these loans as of June 30, 2016 is $1.4 million. Troubled Debt Restructurings: Loans classified as troubled debt restructurings (“TDR”) totaled $12.5 million and $13.7 million at June 30, 2016 and December 31, 2015, respectively. A TDR is a loan to a borrower that is experiencing financial difficulty that has been modified from its original terms and conditions in such a way that the Company is granting the borrower a concession that it would not grant otherwise. The Company has granted a variety of concessions to borrowers in the form of loan modifications. The modifications granted can generally be described in the following categories: Rate Modification: A modification in which the interest rate is changed. Term Modification: A modification in which the maturity date, timing of payments, or frequency of payments is changed. Payment Modification: A modification in which the dollar amount of the payment is changed, or in which a loan is converted to interest only payments for a period of time is included in this category. Combination Modification: Any other type of modification, including the use of multiple categories above. AQR pass graded loans included above in the impaired loan data are loans classified as TDRs. By definition, TDRs are considered impaired loans. All of the Company's TDRs are included in impaired loans. The Company had no newly restructured loans during the three and six month periods ended June 30, 2016. The Company had no commitments to extend additional credit to borrowers whose terms have been modified in TDRs. There were no charge offs in the six months ended June 30, 2016 on loans that were later classified as TDRs. All TDRs are also classified as impaired loans and are included in the loans individually evaluated for impairment in the calculation of the Allowance. There were no TDRs with specific impairment at June 30, 2016 and December 31, 2015, respectively. The Company had no TDRs that subsequently defaulted within the first twelve months of restructure, during the periods ending June 30, 2016 and December 31, 2015, respectively. |
Allowance for Loan Losses |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | Allowance for Loan Losses The following tables detail activity in the Allowance for the periods indicated:
The following is a detail of the recorded investment in the loan portfolio, segregated by amounts evaluated individually or collectively in the Allowance at the periods indicated:
The following represents the balance of the Allowance for the periods indicated segregated by segment and class:
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Purchased Receivables |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchased Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchased Receivables | Purchased Receivables Purchased receivables are carried at their principal amount outstanding, net of a reserve for anticipated losses that have not yet been identified, and have a maturity of less than one year. Purchased receivable balances are charged against this reserve when management believes that collection of principal is unlikely. Management evaluates the adequacy of the reserve for purchased receivable losses based on historical loss experience by class of receivable and its assessment of current economic conditions. As of June 30, 2016, the Company has one class of purchased receivables. There were no purchased receivables past due at June 30, 2016 or December 31, 2015, respectively, and there were no restructured purchased receivables at June 30, 2016 or December 31, 2015. Income on purchased receivables is accrued and recognized on the principal amount outstanding using an effective interest method except when management believes doubt exists as to the collectability of the income or principal. As of June 30, 2016, the Company is accruing income on all purchased receivable balances outstanding. The following table summarizes the components of net purchased receivables for the periods indicated:
The following table sets forth information regarding changes in the purchased receivable reserve for the three and six month periods ending June 30, 2016 and 2015, respectively:
The Company did not record any charge-offs in the first six months of 2016 and 2015, respectively. |
Derivatives |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives The Company enters into commercial loan interest rate swap agreements with commercial banking customers which are offset with a corresponding swap agreement with a third party financial institution ("counterparty"). The Company has agreements with its counterparties that contain provisions that provide that if the Company fails to maintain its status as a well-capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. These agreements also require that the Company and the counterparty collateralize any fair value shortfalls that exceed $250,000 with eligible collateral, which includes cash and securities backed with the full faith and credit of the federal government. Similarly, the Company could be required to settle its obligations under the agreement if specific regulatory events occur, such as if the Company were issued a prompt corrective action directive or a cease and desist order, or if certain regulatory ratios fall below specified levels. The Company pledged $304,000 and $216,000 in available for sale securities to collateralize fair value shortfalls on interest rate swap agreements as of June 30, 2016 and December 31, 2015, respectively. The Company had interest rate swaps with an aggregate notional amount of $20.1 million and $21.3 million at June 30, 2016 and December 31, 2015, respectively. At June 30, 2016, the notional amount of interest rate swaps is made up of two variable to fixed rate swaps to commercial loan customers totaling $10.1 million, and two fixed to variable rate swaps with a counterparty totaling $10.1 million. Changes in fair value from these four interest rate swaps offset each other in the first six months of 2016. The Company did not recognize any fee income related to interest rate swaps in the three or six month periods ending June 30, 2016 or 2015, respectively. Interest rate swap income is recorded in other income on the Consolidated Statements of Income. The Company also uses derivatives to hedge the risk of changes in the fair values of interest rate lock commitments. The Company enters into commitments to originate residential mortgage loans, and it enters into forward delivery contracts to sell mortgage-backed securities to brokers/dealers at specific prices and dates in order to hedge the interest rate risk in its residential mortgage loan commitments. Market risk with respect to commitments to originate loans arises from changes in the value of contractual positions due to changes in interest rates. RML had commitments to originate mortgage loans held for sale totaling $98.8 million and $71.3 million at June 30, 2016 and December 31, 2015, respectively. Changes in the value of RML's interest rate derivatives are recorded in the mortgage banking income on the Consolidated Statements of Income. The following table presents the fair value of derivatives not designated as hedging instruments at June 30, 2016 and December 31, 2015:
The following table presents the net gains of derivatives not designated as hedging instruments for the three month periods ending June 30, 2016 and 2015, respectively:
Our derivative transactions with counterparties under International Swaps and Derivative Association master agreements include "right of set-off" provisions. "Right of set-off" provisions are legally enforceable rights to offset recognized amounts and there may be an intention to settle such amounts on a net basis. We do not offset such financial instruments for financial reporting purposes. The following table summarizes the derivatives that have a right of offset as of June 30, 2016 and December 31, 2015, respectively:
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Stock Incentive Plan |
6 Months Ended |
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Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plan | Stock Incentive Plan The Company adopted the 2014 Stock Option Plan (“2014 Plan”) following shareholder approval of the 2014 Plan at the 2014 Annual Meeting. Subsequent to the adoption of the 2014 Plan, no additional grants may be issued under the prior plans. The 2014 Plan provides for grants of up to 350,000 shares of common stock. Stock Options: Under the 2014 Plan and previous plans, certain key employees have been granted the option to purchase set amounts of common stock at the market price on the day the option was granted. Optionees, at their own discretion, may cover the cost of exercise through the exchange at the then fair value of already owned shares of the Company’s stock. Options are granted for a 10-year period and vest on a pro-rata basis over the initial three years from grant. The Company measures the fair value of each stock option at the date of grant using the Black-Scholes option pricing model. For the quarters ended June 30, 2016 and 2015, the Company recognized $51,000 and $22,000, respectively, in stock option compensation expense as a component of salaries and other personnel expense. For the six months ended June 30, 2016 and 2015, the Company recognized $87,000 and $44,000, respectively, in stock option compensation expense as a component of salaries and other personnel expense. There were no exercises of stock options in the three and six month periods ended June 30, 2016, respectively. The Company issued 224 shares from the exercise of stock options in the three and six months ended June 30, 2015, respectively. Proceeds from the exercise of stock options in the three and six months ended June 30, 2015 were $49,000, respectively. The Company withheld $49,000 to pay for stock option exercises or income taxes that resulted from the exercise of stock options in the three and six months ended June 30, 2015, respectively. There were no stock options granted in the first six months of 2016 and 2015, respectively. Restricted Stock Units: The Company grants restricted stock units to certain key employees periodically. Recipients of restricted stock units do not pay any cash consideration to the Company for the shares and receive all dividends with respect to such shares when the shares vest. Restricted stock units cliff vest at the end of a three-year time period. For the three months ended June 30, 2016 and 2015, the Company recognized $165,000 and $97,000, respectively, in restricted stock unit compensation expense as a component of salaries and other personnel expense. For the six months ended June 30, 2016 and 2015, the Company recognized $290,000 and $193,000, respectively, in restricted stock unit compensation expense as a component of salaries and other personnel expense. There were no restricted stock units granted in the first six months of 2016 and 2015, respectively. |
Fair Value of Assets and Liabilities |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:
The following methods and assumptions were used to estimate fair value disclosures. All financial instruments are held for other than trading purposes. Cash and cash equivalents: Due to the short term nature of these instruments, the carrying amounts reported in the consolidated balance sheets represent their fair values. Investment securities: Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Investments in Federal Home Loan Bank stock are recorded at cost, which also represents fair value. Loans held for sale: Due to the short term nature of these instruments, the carrying amounts reported in the consolidated balance sheets approximate their fair values. Loans: Fair values were generally determined by discounting both principal and interest cash flows on pools of loans expected to be collected using a discount rate for similar instruments with adjustments that the Company believes a market participant would consider in determining fair value. The Company estimates the cash flows expected to be collected using internal credit risk, interest rate and prepayment risk models that incorporate the Corporation’s best estimate of current key assumptions, such as default rates, loss severity and prepayment speeds for the life of the loan. Purchased receivables: Fair values for purchased receivables are based on their carrying amounts due to their short duration and repricing frequency. Generally, purchased receivables have a duration of less than one year. Mortgage servicing rights: MSR are held at fair value. These assets are classified as Level 3 as quoted prices are not available. In order to determine the fair value of MSRs, the present value of net expected future cash flows is estimated. Assumptions used include market discount rates, anticipated prepayment speeds, escrow calculations, delinquency rates, and ancillary fee income net of servicing costs. The model assumptions are also compared to publicly filed information from several large MSR holders, as available. Accrued interest receivable: Due to the short term nature of these instruments, the carrying amounts reported in the consolidated balance sheets represent their fair values. Deposits: The fair value for deposits with stated maturities was determined by discounting contractual cash flows using current market rates for instruments with similar maturities. For deposits with no stated maturities, the carrying value was considered to approximate fair value and does not take into account the significant value of the cost advantage and stability of the Company's long-term relationships with depositors. Accrued interest payable: Due to the short term nature of these instruments, the carrying amounts reported in the consolidated balance sheets represent their fair values. Securities sold under repurchase agreements: Fair values for securities sold under repurchase agreements are based on their carrying amounts due to their short duration and repricing frequency. Borrowings: Due to the short term nature of these instruments, the carrying amount of short-term borrowings reported in the consolidated balance sheets approximate the fair value. Fair values for long-term borrowings are estimated using a discounted cash flow calculation that applies currently offered interest rates to a schedule of aggregate expected monthly payments. Contingent liability, earn-out payments related to acquisition of RML: The contingent liability for estimated earn-out payments included as a portion of the purchase price for RML is recorded in the balance sheet at it estimated fair value, and fair value adjustments to the liability are reported in other operating expense. The fair value for this contingent liability is estimated based on management's assessment of expected pre-tax income at RML over the remaining earn out period. These cash flows are discounted to present value using the appropriate FHLB borrowing rate. Inputs to this assessment include the general economic conditions in our markets that impact mortgage loan originations, current and anticipated trends in local market demand for mortgage, including interest rates, and RML's estimated market share. Junior subordinated debentures: Fair value adjustments for junior subordinated debentures are based on discounted cash flows to maturity using current interest rates for similar financial instruments. Management utilized a market approach to determine the appropriate discount rate for junior subordinated debentures. Derivative instruments: The fair value of the interest rate lock commitments are estimated using quoted or published market prices for similar instruments, adjusted for factors such as pull-through rate assumptions based on historical information, where appropriate. The pull-through rate assumptions are considered Level 3 valuation inputs and are significant to the interest rate lock commitment valuation; as such, the interest rate lock commitment derivatives are classified as Level 3. Interest rate contracts are valued in a model, which uses as its basis a discounted cash flow technique incorporating credit valuation adjustments to reflect nonperformance risk in the measurement of fair value. Although the Bank has determined that the majority of inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2016, the Bank has assessed the significance of the impact of these adjustments on the overall valuation of its interest rate positions and has determined that they are not significant to the overall valuation of its interest rate derivatives. As a result, the Bank has classified its interest rate derivative valuations in Level 2 of the fair value hierarchy. Assets subject to nonrecurring adjustment to fair value: The Company is also required to measure certain assets such as equity method investments, goodwill, intangible assets, impaired loans, and other real estate owned (“OREO”) at fair value on a nonrecurring basis in accordance with GAAP. Any nonrecurring adjustments to fair value usually result from the write down of individual assets. The Company uses either in-house evaluations or external appraisals to estimate the fair value of OREO and impaired loans as of each reporting date. In-house appraisals are considered Level 3 inputs and external appraisals are considered Level 2 inputs. The Company’s determination of which method to use is based upon several factors. The Company takes into account compliance with legal and regulatory guidelines, the amount of the loan, the size of the assets, the location and type of property to be valued and how critical the timing of completion of the analysis is to the assessment of value. Those factors are balanced with the level of internal expertise, internal experience and market information available, versus external expertise available such as qualified appraisers, brokers, auctioneers and equipment specialists. The Company uses external sources to estimate fair value for projects that are not fully constructed as of the date of valuation. These projects are generally valued as if complete, with an appropriate allowance for cost of completion, including contingencies developed from external sources such as vendors, engineers and contractors. The Company believes that recording other real estate owned that is not fully constructed based on as if complete values is more appropriate than recording other real estate owned that is not fully constructed using as is values. We concluded that as-is-complete values are appropriate for these types of projects based on the accounting guidance for capitalization of project costs and subsequent measurement of the value of real estate. GAAP specifically states that estimates and cost allocations must be reviewed at the end of each reporting period and reallocated based on revised estimates. The Company adjusts the carrying value of other real estate owned in accordance with this guidance for increases in estimated cost to complete that exceed the fair value of the real estate at the end of each reporting period. Commitments to extend credit and standby letters of credit: The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligation with the counterparties at the reporting date. Limitations: Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Estimated fair values as of the periods indicated are as follows:
(1) Carrying amounts reflect the notional amount of credit exposure under these financial instruments. The following table sets forth the balances as of the periods indicated of assets measured at fair value on a recurring basis:
The following table provides a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and six month periods ended June 30, 2016 and 2015, respectively:
As of and for the periods ending June 30, 2016 and December 31, 2015, respectively, no impairment or valuation adjustment was recognized for assets recognized at fair value on a nonrecurring basis, except for certain assets as shown in the following table. For loans measured for impairment, the Company classifies fair value measurements using observable inputs, such as external appraisals, as Level 2 valuations in the fair value hierarchy, and unobservable inputs, such as in-house evaluations, as Level 3 valuations in the fair value hierarchy.
Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at June 30, 2016:
(1) Fair value of RML earn-out liability was calculated using estimated pre-tax net income per the merger agreement. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company's operations are managed along two operating segments: Community Banking and Home Mortgage Lending. The Community Banking segment's principal business focus is the offering of loan and deposit products to business and consumer customers in its primary market areas. As of June 30, 2016, the Community Banking segment operated 14 branches throughout Alaska. The Home Mortgage Lending segment's principal business focus is the origination and sale of mortgage loans for 1-4 family residential properties. Summarized financial information for the Company's reportable segments and the reconciliation to the consolidated financial results is shown in the following tables:
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Significant Accounting Policies and Recent Accounting Pronouncements (Policies) |
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Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 requires that equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU 2016-01 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2017, and the Company will apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption and the amendments related to equity securities without readily determinable fair values (including disclosure requirements) will be applied prospectively to equity investments that exist as of the date of adoption of ASU 2016-01. The Company does not believe that the adoption of this standard will have a material impact on the Company’s consolidated financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about lease arrangements. ASU 2016-02 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2018, and must be applied prospectively. The Company is currently evaluating how the adoption of this standard will impact the Company’s consolidated financial position and results of operations. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Option in Debt Instruments (“ASU 2016-06”). ASU 2016-06 simplifies the embedded derivative analysis for debt instruments containing contingent call or put options by removing the requirement to assess whether a contingent event is related to interest rates or credit risks. ASU 2016-06 is effective for the Company's financial statements for annual and interim periods beginning on or after December 15, 2016, and interim periods within those fiscal years. The Company does not believe that the adoption of this standard will have a material impact on the Company’s consolidated financial position or results of operations. In March 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”). ASU 2016-07 eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. ASU 2016-07 requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. ASU 2016-17 requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. ASU 2016-07 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2016, and must be applied prospectively. The Company does not believe that the adoption of this standard will have a material impact on the Company’s consolidated financial position or results of operations. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2016, and must be applied prospectively. The Company does not believe that the adoption of this standard will have a material impact on the Company’s consolidated financial position or results of operations. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (“ASU 2016-13”). ASU 2016-13 requires a financial asset (or a group of financial assets) that is measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset or assets to present the net carrying value at the amount expected to be collected on the financial asset. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination ("PCD assets") that are measured at amortized cost basis is determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Only subsequent changes in the allowance for credit losses are recorded as a credit loss expense for these assets. Interest income for PCD assets should be recognized based on the effective interest rate, excluding the discount embedded in the purchase price that is attributable to the acquirer’s assessment of credit losses at acquisition. ASU 2016-13 requires credit losses relating to available-for-sale debt securities to be recorded through an allowance for credit losses. Available-for-sale accounting recognizes that value may be realized either through collection of contractual cash flows or through sale of the security. Therefore, the amendments limit the amount of the allowance for credit losses to the amount by which fair value is below amortized cost because the classification as available for sale is premised on an investment strategy that recognizes that the investment could be sold at fair value, if cash collection would result in the realization of an amount less than fair value. The allowance for credit losses for purchased available-for-sale securities with a more-than-insignificant amount of credit deterioration since origination is determined in a similar manner to other available-for-sale debt securities; however, the initial allowance for credit losses is added to the purchase price rather than reported as a credit loss expense. Only subsequent changes in the allowance for credit losses are recorded in credit loss expense. Interest income should be recognized based on the effective interest rate, excluding the discount embedded in the purchase price. ASU 2016-13 is effective for the Company’s financial statements for annual and interim periods beginning on or after December 15, 2019, and must be applied prospectively. The Company is currently evaluating the impact that the adoption of this standard will have on the Company’s consolidated financial position and results of operations. |
Investment Securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Marketable Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Investment Security Carrying and Fair Value | The carrying values and estimated fair values of investment securities at the periods indicated are presented below:
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Unrealized Gain (Loss) on Investments | Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2016 and December 31, 2015 were as follows:
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Schedule of Amortized Cost and Fair Value by Contractual Maturity | The amortized cost and estimated fair values of debt securities at June 30, 2016, are distributed by contractual maturity as shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Although preferred stock has no stated maturity, it is aggregated in the calculation of weighted average yields presented below in the category of investments that mature in ten years or more.
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Schedule of Available-For-Sale Securities Proceeds, Gains, and Losses | The proceeds and resulting gains and losses, computed using specific identification, from sales of investment securities for the six months ending June 30, 2016 and 2015, respectively, are as follows:
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Summary of Interest Income On Available-For-Sale Investment Securities | A summary of interest income for the six months ending June 30, 2016 and 2015 on available for sale investment securities is as follows:
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Loans and Credit Quality (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Portfolio Segmented by Risk Class | The following table presents total portfolio loans by portfolio segment and class of financing receivable, based on our asset quality rating ("AQR") criteria:
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Nonaccrual Loans by Segment | Nonaccrual loans at the periods indicated, by segment, are presented below:
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Past Due Loans and Nonaccrual Loans | Past due loans and nonaccrual loans at the periods indicated are presented below by segment:
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Impaired Loans | The following table presents information about impaired loans by class as of the periods indicated:
The unpaid principal balance included in the tables above represents the recorded investment at the dates indicated, plus amounts charged off for book purposes. The following tables summarize our average recorded investment and interest income recognized on impaired loans for the three and six month periods ended June 30, 2016 and 2015, respectively:
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Allowance for Loan Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | The following tables detail activity in the Allowance for the periods indicated:
The following table sets forth information regarding changes in the purchased receivable reserve for the three and six month periods ending June 30, 2016 and 2015, respectively:
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Recorded Investment Segregated by Amounts Individually or Collectively in Allowance for Loan Losses | The following is a detail of the recorded investment in the loan portfolio, segregated by amounts evaluated individually or collectively in the Allowance at the periods indicated:
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Balance of the Allowance Segregated by Segment and Class | The following represents the balance of the Allowance for the periods indicated segregated by segment and class:
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Purchased Receivables (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchased Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Components of Net Purchased Receivables | The following table summarizes the components of net purchased receivables for the periods indicated:
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Allowance on Net Purchased Receivables | The following tables detail activity in the Allowance for the periods indicated:
The following table sets forth information regarding changes in the purchased receivable reserve for the three and six month periods ending June 30, 2016 and 2015, respectively:
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Derivatives (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table presents the fair value of derivatives not designated as hedging instruments at June 30, 2016 and December 31, 2015:
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Derivative Instruments, Gain (Loss) | The following table presents the net gains of derivatives not designated as hedging instruments for the three month periods ending June 30, 2016 and 2015, respectively:
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Offsetting Assets | The following table summarizes the derivatives that have a right of offset as of June 30, 2016 and December 31, 2015, respectively:
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Offsetting Liabilities | The following table summarizes the derivatives that have a right of offset as of June 30, 2016 and December 31, 2015, respectively:
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Fair Value of Assets and Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Fair Values | Estimated fair values as of the periods indicated are as follows:
(1) Carrying amounts reflect the notional amount of credit exposure under these financial instruments. |
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Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table sets forth the balances as of the periods indicated of assets measured at fair value on a recurring basis:
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Fair Value, Assets Measured on Recurring Basis | The following table provides a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and six month periods ended June 30, 2016 and 2015, respectively:
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Schedule of Asset Impairment | As of and for the periods ending June 30, 2016 and December 31, 2015, respectively, no impairment or valuation adjustment was recognized for assets recognized at fair value on a nonrecurring basis, except for certain assets as shown in the following table. For loans measured for impairment, the Company classifies fair value measurements using observable inputs, such as external appraisals, as Level 2 valuations in the fair value hierarchy, and unobservable inputs, such as in-house evaluations, as Level 3 valuations in the fair value hierarchy.
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Schedule of Valuation Assumptions | The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at June 30, 2016:
(1) Fair value of RML earn-out liability was calculated using estimated pre-tax net income per the merger agreement. |
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Information | Summarized financial information for the Company's reportable segments and the reconciliation to the consolidated financial results is shown in the following tables:
|
Basis of Presentation - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2016
Segment
| |
Schedule of Equity Method Investments [Line Items] | |
Number of segments | 2 |
Residential Mortgage Holding Company | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 100.00% |
NBG | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 50.10% |
Cash and Cash Equivalents (Details) |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Cash and Due from Banks [Abstract] | |
Required daily balance with Federal Reserve | $ 500,000 |
Required balance for ATM | $ 500,000 |
Investment Securities - Narrative (Details) $ in Millions |
Jun. 30, 2016
USD ($)
security
|
Dec. 31, 2015
USD ($)
security
|
---|---|---|
Marketable Securities [Abstract] | ||
Securities with unrealized losses (in security) | 8 | 39 |
Number of securities in unrealized loss position greater than 12 months (in security) | 2 | 6 |
AFS pledged as collateral | $ | $ 55.5 | $ 59.7 |
Investment Securities - Schedule Of Amortized Cost And Fair Value By Contractual Maturity Of Debt Securities (Details) - Municipal securities $ in Thousands |
Jun. 30, 2016
USD ($)
|
---|---|
Schedule Of Debt Securities [Line Items] | |
Within 1 year, amortized cost | $ 478 |
1-5 years, amortized cost | 7,679 |
5-10 years, amortized cost | 2,034 |
Total debt securities, amortized cost | 10,191 |
Within 1 year, fair value | 479 |
1-5 years, fair value | 7,780 |
5-10 years, fair value | 2,027 |
Total debt securities, fair value | $ 10,286 |
Within 1 year, weighted average yield | 0.93% |
1-5 years, weighted average yield | 2.91% |
5-10 years, weighted average yield | 4.12% |
Weighted average yield, total | 3.06% |
Investment Securities - Schedule Of Available-For-Sale Securities Proceeds, Gains, And Losses (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Marketable Securities [Abstract] | ||
Proceeds | $ 5,785 | $ 2,621 |
Gross Gains | 12 | 130 |
Gross Losses | $ 23 | $ 0 |
Investment Securities - Summary Of Interest Income On Available-For-Sale Investment Securities (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Schedule of Available-for-sale Securities [Line Items] | ||
Total taxable interest income | $ 1,787 | $ 1,477 |
Total tax-exempt interest income | 146 | 167 |
Total interest income | 1,933 | 1,644 |
U.S. Treasury and government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total taxable interest income | 1,336 | 1,120 |
U.S. Agency mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total taxable interest income | 4 | 13 |
Other | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total taxable interest income | 447 | 344 |
Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total tax-exempt interest income | $ 146 | $ 167 |
Purchased Receivables - Narrative (Details) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
Segment
purchased_receivable
|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
Segment
purchased_receivable
|
Jun. 30, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
purchased_receivable
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Term of purchased receivables (less than) | 1 year | ||||
Number of segments and classes of purchased receivables | Segment | 1 | 1 | |||
Loans classified as troubled debt restructuring | $ 12,500,000 | $ 12,500,000 | $ 13,700,000 | ||
Charge-offs | $ (135,000) | $ 0 | $ (869,000) | $ (188,000) | |
Purchased Receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of purchased receivables past due | purchased_receivable | 0 | 0 | 0 | ||
Loans classified as troubled debt restructuring | $ 0 | $ 0 | $ 0 | ||
Charge-offs | $ 0 | $ 0 | $ 0 | $ 0 |
Purchased Receivables - Summary of Components of Net Purchased Receivables (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|---|---|
Purchased Receivables [Abstract] | ||||||
Purchased receivables | $ 13,759 | $ 13,507 | ||||
Reserve for purchased receivable losses | (163) | $ (169) | (181) | $ (247) | $ (265) | $ (289) |
Total | $ 13,596 | $ 13,326 |
Purchased Receivables - Allowance on Net Purchase Receivables (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Purchased Receivable Allowance for Loan Loss Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 169,000 | $ 265,000 | $ 181,000 | $ 289,000 |
Charge-offs | 135,000 | 0 | 869,000 | 188,000 |
Balance at end of period | 163,000 | 247,000 | 163,000 | 247,000 |
Purchased Receivable | ||||
Purchased Receivable Allowance for Loan Loss Reserve [Roll Forward] | ||||
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 30,000 |
Charge-offs net of recoveries | 0 | 0 | 0 | 30,000 |
Reserve for (recovery from) purchased receivables | $ (6,000) | $ (18,000) | $ (18,000) | $ (72,000) |
Derivatives - Narrative (Details) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
derivative_swap
|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
derivative_swap
|
Jun. 30, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Derivatives, Fair Value [Line Items] | |||||
Collateral requirement threshold | $ 250,000 | ||||
Collateral posted | $ 304,000 | 304,000 | $ 216,000 | ||
Derivative notional amount | $ 20,100,000 | $ 20,100,000 | 21,300,000 | ||
Number of derivatives | derivative_swap | 4 | 4 | |||
Derivative fee income | $ 0 | $ 0 | $ 0 | $ 0 | |
Residential Mortgage Holding Company | |||||
Derivatives, Fair Value [Line Items] | |||||
Unfunded lending commitment | 98,800,000 | 98,800,000 | $ 71,300,000 | ||
Variable to Fixed | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative notional amount | $ 10,100,000 | $ 10,100,000 | |||
Number of derivatives | derivative_swap | 2 | 2 | |||
Fixed to Variable | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative notional amount | $ 10,100,000 | $ 10,100,000 | |||
Number of derivatives | derivative_swap | 2 | 2 |
Derivatives - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative contracts | $ 2,946 | $ 1,639 |
Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate contracts | 950 | 216 |
Interest rate swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts | 366 | 125 |
Interest rate swap | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts | 366 | 125 |
Interest rate lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts | 2,580 | 1,514 |
Interest rate contracts | 950 | 216 |
Interest rate lock commitments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative contracts | $ 2,580 | $ 1,514 |
Derivatives - Schedule of Derivative Gain (Loss) (Details) - Other Income - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivatives not designated as hedging | $ (372) | $ 508 |
Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivatives not designated as hedging | (1,392) | (65) |
Interest rate lock commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivatives not designated as hedging | $ 1,020 | $ 573 |
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