R | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
£ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 6021 | 27-2176993 | ||
(State or other jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification No.) | ||
1309 W. 15th Street, Plano, Texas | 75075 | |||
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer o | Accelerated filer x | |
Non-accelerated filer o | Smaller reporting company o | |
(Do not check if a smaller reporting company) |
Class: Common Stock | Shares Outstanding as of July 29, 2013: | |
39,931,516 |
June 30, | December 31, | ||||||
2013 | 2012 | ||||||
ASSETS | (unaudited) | ||||||
Cash and due from financial institutions | $ | 30,504 | $ | 34,227 | |||
Short-term interest-bearing deposits in other financial institutions | 27,280 | 34,469 | |||||
Total cash and cash equivalents | 57,784 | 68,696 | |||||
Securities available for sale, at fair value | 287,834 | 287,034 | |||||
Securities held to maturity (fair value: June 30, 2013 — $339,455, December 31, 2012— $376,153) | 330,969 | 360,554 | |||||
Loans held for sale | 904,228 | 1,060,720 | |||||
Loans held for investment (net of allowance for loan losses of $19,277 at June 30, 2013 and $18,051 at December 31, 2012) | 1,816,025 | 1,673,204 | |||||
FHLB and Federal Reserve Bank stock, at cost | 41,475 | 45,025 | |||||
Bank-owned life insurance | 35,231 | 34,916 | |||||
Foreclosed assets, net | 557 | 1,901 | |||||
Premises and equipment, net | 52,865 | 53,160 | |||||
Goodwill | 29,650 | 29,650 | |||||
Accrued interest receivable | 10,099 | 9,900 | |||||
Prepaid FDIC assessment | — | 4,809 | |||||
Other assets | 27,767 | 33,489 | |||||
Total assets | $ | 3,594,484 | $ | 3,663,058 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Deposits | |||||||
Non-interest-bearing demand | $ | 384,836 | $ | 357,800 | |||
Interest-bearing demand | 464,262 | 488,748 | |||||
Savings and money market | 887,082 | 880,924 | |||||
Time | 453,000 | 450,334 | |||||
Total deposits | 2,189,180 | 2,177,806 | |||||
FHLB advances (net of prepayment penalty of $2,681 at June 30, 2013 and $3,193 at December 31, 2012) | 800,208 | 892,208 | |||||
Repurchase agreement | 25,000 | 25,000 | |||||
Accrued interest payable | 1,151 | 1,216 | |||||
Other liabilities | 45,511 | 45,957 | |||||
Total liabilities | 3,061,050 | 3,142,187 | |||||
Commitments and contingent liabilities | — | — | |||||
Shareholders’ equity | |||||||
Preferred stock, $.01 par value; 10,000,000 shares authorized; 0 shares issued — June 30, 2013 and December 31, 2012 | — | — | |||||
Common stock, $.01 par value; 90,000,000 shares authorized; 39,926,716 shares issued — June 30, 2013 and 39,612,911 shares issued — December 31, 2012 | 399 | 396 | |||||
Additional paid-in capital | 373,378 | 372,168 | |||||
Retained earnings | 176,569 | 164,328 | |||||
Accumulated other comprehensive income, net | 271 | 1,895 | |||||
Unearned Employee Stock Ownership Plan (ESOP) shares; 1,825,942 shares at June 30, 2013 and 1,918,039 shares at December 31, 2012 | (17,183 | ) | (17,916 | ) | |||
Total shareholders’ equity | 533,434 | 520,871 | |||||
Total liabilities and shareholders’ equity | $ | 3,594,484 | $ | 3,663,058 | |||
See accompanying notes to consolidated financial statements. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Interest and dividend income | |||||||||||||||
Loans, including fees | $ | 32,151 | $ | 30,290 | $ | 62,529 | $ | 54,610 | |||||||
Taxable securities | 2,457 | 4,185 | 4,860 | 8,643 | |||||||||||
Nontaxable securities | 529 | 473 | 1,003 | 946 | |||||||||||
Interest-bearing deposits in other financial institutions | 25 | 38 | 56 | 57 | |||||||||||
FHLB and Federal Reserve Bank stock | 134 | 141 | 267 | 247 | |||||||||||
35,296 | 35,127 | 68,715 | 64,503 | ||||||||||||
Interest expense | |||||||||||||||
Deposits | 2,450 | 3,247 | 4,882 | 6,476 | |||||||||||
FHLB advances | 2,205 | 2,415 | 4,466 | 4,869 | |||||||||||
Repurchase agreement | 203 | 251 | 404 | 454 | |||||||||||
Other borrowings | — | 28 | — | 28 | |||||||||||
4,858 | 5,941 | 9,752 | 11,827 | ||||||||||||
Net interest income | 30,438 | 29,186 | 58,963 | 52,676 | |||||||||||
Provision for loan losses | 1,858 | 1,447 | 2,741 | 2,342 | |||||||||||
Net interest income after provision for loan losses | 28,580 | 27,739 | 56,222 | 50,334 | |||||||||||
Non-interest income | |||||||||||||||
Service charges and fees | 4,768 | 4,827 | 9,059 | 9,065 | |||||||||||
Other charges and fees | 179 | 165 | 391 | 293 | |||||||||||
Net gain on sale of mortgage loans | — | 2,174 | — | 4,406 | |||||||||||
Bank-owned life insurance income | 153 | 165 | 315 | 274 | |||||||||||
Gain (loss) on sale of available for sale securities (reclassified from accumulated other comprehensive income for unrealized gains (losses) on available-for-sale securities) | — | 116 | (177 | ) | 116 | ||||||||||
Gain (loss) on sale and disposition of assets | 444 | (56 | ) | 674 | (137 | ) | |||||||||
Impairment of goodwill | — | (818 | ) | — | (818 | ) | |||||||||
Other | 199 | 1,940 | 1,340 | 2,044 | |||||||||||
5,743 | 8,513 | 11,602 | 15,243 | ||||||||||||
Non-interest expense | |||||||||||||||
Salaries and employee benefits | 12,528 | 14,110 | 25,443 | 25,834 | |||||||||||
Acquisition costs | — | 3,741 | — | 3,885 | |||||||||||
Advertising | 751 | 490 | 1,264 | 775 | |||||||||||
Occupancy and equipment | 1,938 | 1,952 | 3,728 | 3,422 | |||||||||||
Outside professional services | 570 | 691 | 1,254 | 1,174 | |||||||||||
Regulatory assessments | 650 | 624 | 1,229 | 1,205 | |||||||||||
Data processing | 1,729 | 1,617 | 3,247 | 2,862 | |||||||||||
Office operations | 1,751 | 1,934 | 3,399 | 3,479 | |||||||||||
Other | 1,786 | 1,164 | 3,012 | 2,139 | |||||||||||
21,703 | 26,323 | 42,576 | 44,775 | ||||||||||||
Income before income tax expense | 12,620 | 9,929 | 25,248 | 20,802 | |||||||||||
Income tax expense (items reclassified from accumulated other comprehensive income include an income tax benefit of $62 for the six months ended June 30, 2013 and an income tax expense of $41 for both the three and six months ended June 30, 2012) | 4,446 | 3,437 | 9,016 | 7,238 | |||||||||||
Net income | $ | 8,174 | $ | 6,492 | $ | 16,232 | $ | 13,564 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.21 | $ | 0.17 | $ | 0.43 | $ | 0.39 | |||||||
Diluted | $ | 0.21 | $ | 0.17 | $ | 0.43 | $ | 0.39 | |||||||
See accompanying notes to consolidated financial statements. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income | $ | 8,174 | $ | 6,492 | $ | 16,232 | $ | 13,564 | |||||||
Change in unrealized gains (losses) on securities available for sale | (3,031 | ) | 1,064 | (2,705 | ) | 1,396 | |||||||||
Reclassification of amount realized through sale of securities | — | (116 | ) | 177 | (116 | ) | |||||||||
Tax effect | 1,063 | (338 | ) | 904 | (456 | ) | |||||||||
Other comprehensive income (loss), net of tax | (1,968 | ) | 610 | (1,624 | ) | 824 | |||||||||
Comprehensive income | $ | 6,206 | $ | 7,102 | $ | 14,608 | $ | 14,388 | |||||||
See accompanying notes to consolidated financial statements. |
For the six months ended June 30, 2012 | Common Stock | Additional Paid-In Capital | Unearned ESOP Shares | Retained Earnings | Accumulated Other Comprehensive Income, Net | Total Shareholders’ Equity | |||||||||||||||||
Balance at January 1, 2012 | $ | 337 | $ | 279,473 | $ | (19,383 | ) | $ | 144,535 | $ | 1,347 | $ | 406,309 | ||||||||||
ESOP shares earned (92,097 shares) | — | 653 | 734 | — | — | 1,387 | |||||||||||||||||
Share-based compensation expense | — | 1,039 | — | — | — | 1,039 | |||||||||||||||||
Net issuance of common stock under employee stock plans (58,621 shares) | 1 | 714 | — | — | — | 715 | |||||||||||||||||
Dividends declared ($0.12 per share) | — | — | — | (4,377 | ) | — | (4,377 | ) | |||||||||||||||
Acquisition of Highlands Bancshares, Inc. | 55 | 86,059 | — | — | — | 86,114 | |||||||||||||||||
Net income | — | — | — | 13,564 | — | 13,564 | |||||||||||||||||
Other comprehensive income | — | — | — | — | 824 | 824 | |||||||||||||||||
Total comprehensive income | 14,388 | ||||||||||||||||||||||
Balance at June 30, 2012 | $ | 393 | $ | 367,938 | $ | (18,649 | ) | $ | 153,722 | $ | 2,171 | $ | 505,575 |
For the six months ended June 30, 2013 | |||||||||||||||||||||||
Balance at January 1, 2013 | $ | 396 | $ | 372,168 | $ | (17,916 | ) | $ | 164,328 | $ | 1,895 | $ | 520,871 | ||||||||||
ESOP shares earned (92,097 shares) | — | 1,124 | 733 | — | — | 1,857 | |||||||||||||||||
Share-based compensation expense | — | 1,422 | — | — | — | 1,422 | |||||||||||||||||
Net issuance of common stock under employee stock plans (397,605 shares) | 4 | 217 | — | — | — | 221 | |||||||||||||||||
Share repurchase (83,800 shares) | (1 | ) | (1,553 | ) | — | — | — | (1,554 | ) | ||||||||||||||
Dividends declared ($0.10 per share) | — | — | — | (3,991 | ) | — | (3,991 | ) | |||||||||||||||
Net income | — | — | — | 16,232 | — | 16,232 | |||||||||||||||||
Other comprehensive income | — | — | — | — | (1,624 | ) | (1,624 | ) | |||||||||||||||
Total comprehensive income | 14,608 | ||||||||||||||||||||||
Balance at June 30, 2013 | $ | 399 | $ | 373,378 | $ | (17,183 | ) | $ | 176,569 | $ | 271 | $ | 533,434 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 16,232 | $ | 13,564 | |||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||
Provision for loan losses | 2,741 | 2,342 | |||||
Depreciation and amortization | 2,270 | 1,737 | |||||
Deferred tax expense | 188 | 2,406 | |||||
Premium amortization and accretion of securities, net | 3,356 | 2,723 | |||||
Accretion related to acquired loans | (1,705 | ) | (1,382 | ) | |||
(Gain) loss on sale of available for sale securities | 177 | (116 | ) | ||||
ESOP compensation expense | 1,857 | 1,387 | |||||
Share-based compensation expense | 1,422 | 1,039 | |||||
Net gain on loans held for sale | — | (4,406 | ) | ||||
Loans originated or purchased for sale | (7,710,481 | ) | (6,420,681 | ) | |||
Proceeds from sale of loans held for sale | 7,866,973 | 6,333,802 | |||||
FHLB stock dividends | (60 | ) | (58 | ) | |||
Bank-owned life insurance (BOLI) income | (315 | ) | (274 | ) | |||
Gain (loss) on sale and disposition of assets | (674 | ) | 137 | ||||
Impairment of goodwill | — | 818 | |||||
Net change in deferred loan fees | 371 | 109 | |||||
Net change in accrued interest receivable | (199 | ) | 909 | ||||
Net change in other assets | 10,230 | (2,787 | ) | ||||
Net change in other liabilities | 393 | 1,138 | |||||
Net cash provided by (used in) operating activities | 192,776 | (67,593 | ) | ||||
Cash flows from investing activities | |||||||
Available-for-sale securities: | |||||||
Maturities, prepayments and calls | 500,103 | 353,732 | |||||
Purchases | (515,941 | ) | (316,139 | ) | |||
Proceeds from sale of AFS securities | 10,614 | 15,165 | |||||
Held-to-maturity securities: | |||||||
Maturities, prepayments and calls | 59,917 | 68,600 | |||||
Purchases | (31,969 | ) | — | ||||
Net change in loans held for investment | (145,566 | ) | (88,675 | ) | |||
Redemption (purchase) of FHLB and Federal Reserve Bank stock | 3,610 | (5,124 | ) | ||||
Cash and cash equivalents acquired in acquisition of Highlands Bancshares, Inc. | — | 98,469 | |||||
Purchases of premises and equipment | (1,755 | ) | (874 | ) | |||
Proceeds from sale of assets | 3,249 | 2,106 | |||||
Net cash provided by (used in) investing activities | (117,738 | ) | 127,260 |
Cash flows from financing activities | |||||||
Net change in deposits | 11,374 | (112,549 | ) | ||||
Proceeds from FHLB advances | 600,000 | 601,000 | |||||
Repayments on FHLB advances | (692,000 | ) | (472,296 | ) | |||
Share repurchase | (1,554 | ) | — | ||||
Repayments of other borrowings | — | (48,530 | ) | ||||
Payment of dividends | (3,991 | ) | (4,377 | ) | |||
Proceeds from stock option exercises | 221 | 715 | |||||
Net cash used in financing activities | (85,950 | ) | (36,037 | ) | |||
Net change in cash and cash equivalents | (10,912 | ) | 23,630 | ||||
Beginning cash and cash equivalents | 68,696 | 46,348 | |||||
Ending cash and cash equivalents | $ | 57,784 | $ | 69,978 | |||
Supplemental cash flow information: | |||||||
Interest paid | $ | 9,817 | $ | 11,749 | |||
Income taxes paid | 5,007 | 9,790 | |||||
Supplemental noncash disclosures: | |||||||
Transfers from loans to other real estate owned | 1,338 | 997 | |||||
Net noncash liabilities assumed in stock acquisition of Highlands Bancshares, Inc. | — | 12,355 | |||||
See accompanying notes to consolidated financial statements. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Basic earnings per share: | |||||||||||||||
Numerator: | |||||||||||||||
Net income | $ | 8,174 | $ | 6,492 | $ | 16,232 | $ | 13,564 | |||||||
Distributed and undistributed earnings to participating securities | (116 | ) | (10 | ) | (180 | ) | (25 | ) | |||||||
Income available to common shareholders | $ | 8,058 | $ | 6,482 | $ | 16,052 | $ | 13,539 | |||||||
Denominator: | |||||||||||||||
Weighted average common shares outstanding | 39,940,712 | 39,215,084 | 39,837,010 | 36,458,007 | |||||||||||
Less: Average unallocated ESOP shares | (1,856,135 | ) | (2,040,330 | ) | (1,879,030 | ) | (2,063,354 | ) | |||||||
Average unvested restricted stock awards | (539,527 | ) | (58,432 | ) | (420,517 | ) | (63,617 | ) | |||||||
Average shares for basic earnings per share | 37,545,050 | 37,116,322 | 37,537,463 | 34,331,036 | |||||||||||
Basic earnings per common share | $ | 0.21 | $ | 0.17 | $ | 0.43 | $ | 0.39 | |||||||
Diluted earnings per share: | |||||||||||||||
Numerator: | |||||||||||||||
Income available to common shareholders | $ | 8,058 | $ | 6,482 | $ | 16,052 | $ | 13,539 | |||||||
Denominator: | |||||||||||||||
Average shares for basic earnings per share | 37,545,050 | 37,116,322 | 37,537,463 | 34,331,036 | |||||||||||
Dilutive effect of share-based compensation plan | 147,463 | 119,891 | 147,231 | 118,598 | |||||||||||
Average shares for diluted earnings per share | 37,692,513 | 37,236,213 | 37,684,694 | 34,449,634 | |||||||||||
Diluted earnings per common share | $ | 0.21 | $ | 0.17 | $ | 0.43 | 0.39 | ||||||||
Share awards excluded in the computation of diluted earnings per share because the exercise price was greater than the common stock average market price and were, therefore antidilutive | 1,212,900 | 209,671 | 1,235,050 | 252,521 |
Amortized | Gross Unrealized | Gross Unrealized | |||||||||||||
June 30, 2013 | Cost | Gains | Losses | Fair Value | |||||||||||
Agency residential mortgage-backed securities | $ | 198,215 | $ | 1,670 | $ | 1,982 | $ | 197,903 | |||||||
Agency residential collateralized mortgage obligations | 86,210 | 716 | 77 | 86,849 | |||||||||||
SBA pools | 2,991 | 91 | — | 3,082 | |||||||||||
Total securities | $ | 287,416 | $ | 2,477 | $ | 2,059 | $ | 287,834 |
Amortized | Gross Unrealized | Gross Unrealized | |||||||||||||
December 31, 2012 | Cost | Gains | Losses | Fair Value | |||||||||||
Agency residential mortgage-backed securities | $ | 164,023 | $ | 2,195 | $ | 118 | $ | 166,100 | |||||||
Agency residential collateralized mortgage obligations | 116,723 | 996 | 233 | 117,486 | |||||||||||
SBA pools | 3,342 | 106 | — | 3,448 | |||||||||||
Total securities | $ | 284,088 | $ | 3,297 | $ | 351 | $ | 287,034 |
Amortized | Gross Unrealized | Gross Unrealized | |||||||||||||
June 30, 2013 | Cost | Gains | Losses | Fair Value | |||||||||||
Agency residential mortgage-backed securities | $ | 95,230 | $ | 3,839 | $ | 79 | $ | 98,990 | |||||||
Agency commercial mortgage-backed securities | 18,335 | 788 | 229 | 18,894 | |||||||||||
Agency residential collateralized mortgage obligations | 148,006 | 2,972 | 65 | 150,913 | |||||||||||
Municipal bonds | 69,398 | 2,711 | 1,451 | 70,658 | |||||||||||
Total securities | $ | 330,969 | $ | 10,310 | $ | 1,824 | $ | 339,455 |
Amortized | Gross Unrealized | Gross Unrealized | |||||||||||||
December 31, 2012 | Cost | Gains | Losses | Fair Value | |||||||||||
Agency residential mortgage-backed securities | $ | 114,388 | $ | 6,324 | $ | — | $ | 120,712 | |||||||
Agency commercial mortgage-backed securities | 9,243 | 1,303 | — | 10,546 | |||||||||||
Agency residential collateralized mortgage obligations | 186,467 | 3,129 | 173 | 189,423 | |||||||||||
Municipal bonds | 50,456 | 5,018 | 2 | 55,472 | |||||||||||
Total securities | $ | 360,554 | $ | 15,774 | $ | 175 | $ | 376,153 |
Available | |||||||||||
Held to maturity | for sale | ||||||||||
Carrying Amount | Fair Value | Fair Value | |||||||||
Due in one year or less | $ | 1,494 | $ | 1,499 | $ | — | |||||
Due after one to five years | 6,681 | 7,103 | 3,082 | ||||||||
Due after five to ten years | 15,560 | 16,486 | — | ||||||||
Due after ten years | 45,663 | 45,570 | — | ||||||||
Agency residential mortgage-backed securities | 95,230 | 98,990 | 197,903 | ||||||||
Agency commercial mortgage-backed securities | 18,335 | 18,894 | — | ||||||||
Agency residential collateralized mortgage obligations | 148,006 | 150,913 | 86,849 | ||||||||
Total | $ | 330,969 | $ | 339,455 | $ | 287,834 |
June 30, 2013 | December 31, 2012 | ||||||
Public fund certificates of deposit | $ | 134,587 | $ | 134,846 | |||
Public fund demand deposit accounts | 15,313 | 19,972 | |||||
Commercial demand deposit accounts | 3,441 | 4,318 | |||||
Repurchase agreements | 25,000 | 25,000 | |||||
Federal Reserve Bank primary credit - collateral value | 84,424 | 105,807 | |||||
Carrying value of securities pledged on above funds | 295,626 | 309,225 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Proceeds | $ | — | $ | 15,165 | $ | 10,614 | $ | 15,165 | |||||||
Gross gains | — | 116 | — | 116 | |||||||||||
Gross losses | — | — | 177 | — |
AFS | Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||
June 30, 2013 | Fair Value | Unrealized Loss | Number | Fair Value | Unrealized Loss | Number | Fair Value | Unrealized Loss | Number | |||||||||||||||||||||||
Agency residential mortgage-backed securities | $ | 96,606 | $ | 1,982 | 27 | $ | — | $ | — | — | $ | 96,606 | $ | 1,982 | 27 | |||||||||||||||||
Agency residential collateralized mortgage obligations | 5,241 | 35 | 3 | 4,866 | 42 | 3 | 10,107 | 77 | 6 | |||||||||||||||||||||||
Total temporarily impaired | $ | 101,847 | $ | 2,017 | 30 | $ | 4,866 | $ | 42 | 3 | $ | 106,713 | $ | 2,059 | 33 |
HTM | Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||
June 30, 2013 | Fair Value | Unrealized Loss | Number | Fair Value | Unrealized Loss | Number | Fair Value | Unrealized Loss | Number | |||||||||||||||||||||||
Agency residential mortgage-backed securities | $ | 3,750 | $ | 79 | 1 | $ | — | $ | — | — | 3,750 | 79 | 1 | |||||||||||||||||||
Agency commercial mortgage-backed securities | 3,820 | 229 | 1 | — | — | — | 3,820 | 229 | 1 | |||||||||||||||||||||||
Agency residential collateralized mortgage obligations | 10,519 | 29 | 3 | 2,535 | 36 | 3 | 13,054 | 65 | 6 | |||||||||||||||||||||||
Municipal bonds | 18,071 | 1,451 | 30 | — | — | — | 18,071 | 1,451 | 30 | |||||||||||||||||||||||
Total temporarily impaired | $ | 36,160 | $ | 1,788 | 35 | $ | 2,535 | $ | 36 | 3 | $ | 38,695 | $ | 1,824 | 38 |
AFS | Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||
December 31, 2012 | Fair Value | Unrealized Loss | Number | Fair Value | Unrealized Loss | Number | Fair Value | Unrealized Loss | Number | |||||||||||||||||||||||
Agency residential mortgage-backed securities | $ | 24,462 | $ | 118 | 4 | $ | — | $ | — | — | $ | 24,462 | $ | 118 | 4 | |||||||||||||||||
Agency residential collateralized mortgage obligations | 2 | — | 1 | 16,912 | 233 | 6 | 16,914 | 233 | 7 | |||||||||||||||||||||||
Total temporarily impaired | $ | 24,464 | $ | 118 | 5 | $ | 16,912 | $ | 233 | 6 | $ | 41,376 | $ | 351 | 11 |
HTM | Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||
December 31, 2012 | Fair Value | Unrealized Loss | Number | Fair Value | Unrealized Loss | Number | Fair Value | Unrealized Loss | Number | |||||||||||||||||||||||
Agency residential collateralized mortgage obligations | $ | 19,311 | $ | 62 | 5 | $ | 4,972 | $ | 111 | 4 | $ | 24,283 | $ | 173 | 9 | |||||||||||||||||
Municipal bonds | 281 | 2 | 1 | — | — | — | 281 | 2 | 1 | |||||||||||||||||||||||
Total temporarily impaired | $ | 19,592 | $ | 64 | 6 | $ | 4,972 | $ | 111 | 4 | $ | 24,564 | $ | 175 | 10 |
June 30, 2013 | December 31, 2012 | ||||||
Commercial real estate | $ | 1,004,719 | $ | 839,908 | |||
Commercial and industrial loans: | |||||||
Commercial | 288,054 | 245,799 | |||||
Warehouse lines of credit | 24,977 | 32,726 | |||||
Total commercial and industrial loans | 313,031 | 278,525 | |||||
Consumer: | |||||||
Consumer real estate | 465,055 | 513,256 | |||||
Other consumer loans | 52,382 | 59,080 | |||||
Total consumer | 517,437 | 572,336 | |||||
Gross loans held for investment | 1,835,187 | 1,690,769 | |||||
Net of: | |||||||
Deferred fees and discounts, net | 115 | 486 | |||||
Allowance for loan losses | (19,277 | ) | (18,051 | ) | |||
Net loans held for investment | $ | 1,816,025 | $ | 1,673,204 | |||
Loans held for sale | $ | 904,228 | $ | 1,060,720 |
June 30, 2013 | Commercial Real Estate | Commercial and Industrial | Consumer Real Estate | Other Consumer | Total | ||||||||||||||
Allowance for loan losses: | |||||||||||||||||||
Beginning balance - April 1, 2013 | $ | 10,905 | $ | 3,568 | $ | 3,599 | $ | 570 | $ | 18,642 | |||||||||
Charge-offs | (716 | ) | (124 | ) | (326 | ) | (228 | ) | (1,394 | ) | |||||||||
Recoveries | — | 60 | 6 | 105 | 171 | ||||||||||||||
Provision expense (benefit) | 421 | 1,235 | 218 | (16 | ) | 1,858 | |||||||||||||
Ending balance - June 30, 2013 | $ | 10,610 | $ | 4,739 | $ | 3,497 | $ | 431 | $ | 19,277 |
June 30, 2013 | Commercial Real Estate | Commercial and Industrial | Consumer Real Estate | Other Consumer | Total | ||||||||||||||
Allowance for loan losses: | |||||||||||||||||||
Beginning balance - January 1, 2013 | $ | 11,304 | $ | 2,574 | $ | 3,555 | $ | 618 | $ | 18,051 | |||||||||
Charge-offs | (803 | ) | (334 | ) | (355 | ) | (378 | ) | (1,870 | ) | |||||||||
Recoveries | — | 98 | 12 | 245 | 355 | ||||||||||||||
Provision expense (benefit) | 109 | 2,401 | 285 | (54 | ) | 2,741 | |||||||||||||
Ending balance - June 30, 2013 | $ | 10,610 | $ | 4,739 | $ | 3,497 | $ | 431 | $ | 19,277 | |||||||||
Allowance ending balance: | |||||||||||||||||||
Individually evaluated for impairment | $ | 1,313 | $ | 1,736 | $ | 1,043 | $ | 32 | $ | 4,124 | |||||||||
Collectively evaluated for impairment | 9,297 | 3,003 | 2,454 | 399 | 15,153 | ||||||||||||||
Loans: | |||||||||||||||||||
Individually evaluated for impairment | 8,625 | 7,045 | 8,661 | 466 | 24,797 | ||||||||||||||
Collectively evaluated for impairment | 990,268 | 304,916 | 455,254 | 51,727 | 1,802,165 | ||||||||||||||
PCI loans | 5,826 | 1,070 | 1,140 | 189 | 8,225 | ||||||||||||||
Ending balance | $ | 1,004,719 | $ | 313,031 | $ | 465,055 | $ | 52,382 | $ | 1,835,187 |
June 30, 2012 | Commercial Real Estate | Commercial and Industrial | Consumer Real Estate | Other Consumer | Total | ||||||||||||||
Allowance for loan losses: | |||||||||||||||||||
Beginning balance - April 1, 2012 | $ | 11,182 | $ | 2,164 | $ | 4,023 | $ | 654 | $ | 18,023 | |||||||||
Charge-offs | — | (22 | ) | (126 | ) | (210 | ) | (358 | ) | ||||||||||
Recoveries | — | 12 | 6 | 99 | 117 | ||||||||||||||
Provision expense | 736 | 213 | 359 | 139 | 1,447 | ||||||||||||||
Ending balance - June 30, 2012 | $ | 11,918 | $ | 2,367 | $ | 4,262 | $ | 682 | $ | 19,229 |
June 30, 2012 | Commercial Real Estate | Commercial and Industrial | Consumer Real Estate | Other Consumer | Total | ||||||||||||||
Allowance for loan losses: | |||||||||||||||||||
Beginning balance - January 1, 2012 | $ | 10,621 | $ | 2,090 | $ | 4,070 | $ | 706 | $ | 17,487 | |||||||||
Charge-offs | — | (237 | ) | (210 | ) | (407 | ) | (854 | ) | ||||||||||
Recoveries | — | 35 | 13 | 206 | 254 | ||||||||||||||
Provision expense | 1,297 | 479 | 389 | 177 | 2,342 | ||||||||||||||
Ending balance - June 30, 2012 | $ | 11,918 | $ | 2,367 | $ | 4,262 | $ | 682 | $ | 19,229 | |||||||||
Allowance ending balance: | |||||||||||||||||||
Individually evaluated for impairment | $ | 2,453 | $ | 135 | $ | 844 | $ | 10 | $ | 3,442 | |||||||||
Collectively evaluated for impairment | 9,465 | 2,232 | 3,418 | 672 | 15,787 | ||||||||||||||
Loans: | |||||||||||||||||||
Individually evaluated for impairment | 19,465 | 378 | 5,795 | 115 | 25,753 | ||||||||||||||
Collectively evaluated for impairment | 733,347 | 194,334 | 572,359 | 62,149 | 1,562,189 | ||||||||||||||
PCI loans | 7,797 | 2,959 | 1,479 | 379 | 12,614 | ||||||||||||||
Ending balance | $ | 760,609 | $ | 197,671 | $ | 579,633 | $ | 62,643 | $ | 1,600,556 |
June 30, 2013 | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | |||||||||||||||
Commercial real estate | $ | 9,243 | $ | 936 | $ | 7,689 | $ | 8,625 | $ | 1,204 | ||||||||||
Commercial and industrial | 9,200 | 1,296 | 5,749 | 7,045 | 1,650 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Consumer real estate | 8,897 | 6,148 | 2,513 | 8,661 | 1,012 | |||||||||||||||
Other consumer | 484 | — | 466 | 466 | 30 | |||||||||||||||
Total | $ | 27,824 | $ | 8,380 | $ | 16,417 | $ | 24,797 | $ | 3,896 | ||||||||||
December 31, 2012 | ||||||||||||||||||||
Commercial real estate | $ | 17,768 | $ | 4,383 | $ | 12,609 | $ | 16,992 | $ | 2,756 | ||||||||||
Commercial and industrial | 7,632 | 3,284 | 2,325 | 5,609 | 630 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Consumer real estate | 8,672 | 5,291 | 3,198 | 8,489 | 960 | |||||||||||||||
Other consumer | 338 | 28 | 301 | 329 | 23 | |||||||||||||||
Total | $ | 34,410 | $ | 12,986 | $ | 18,433 | $ | 31,419 | $ | 4,369 |
June 30, 2013 | Current Quarter Average Recorded Investment | Year-to-Date Average Recorded Investment | Current Quarter Interest Income Recognized | Year-to-date Interest Income Recognized | |||||||||||
Commercial real estate | $ | 13,340 | $ | 14,754 | $ | 62 | $ | 124 | |||||||
Commercial and industrial | 6,924 | 6,366 | 3 | 6 | |||||||||||
Consumer: | |||||||||||||||
Consumer real estate | 8,517 | 8,567 | 19 | 33 | |||||||||||
Other consumer | 433 | 406 | — | — | |||||||||||
Total | $ | 29,214 | $ | 30,093 | $ | 84 | $ | 163 | |||||||
June 30, 2012 | |||||||||||||||
Commercial real estate | $ | 19,018 | $ | 19,052 | $ | 43 | $ | 95 | |||||||
Commercial and industrial | 371 | 455 | 1 | 1 | |||||||||||
Consumer: | |||||||||||||||
Consumer real estate | 6,238 | 6,307 | 9 | 31 | |||||||||||
Other consumer | 126 | 145 | — | — | |||||||||||
Total | $ | 25,753 | $ | 25,959 | $ | 53 | $ | 127 |
June 30, 2013 | December 31, 2012 | ||||||
Commercial real estate | $ | 8,625 | $ | 13,609 | |||
Commercial and industrial | 6,849 | 5,401 | |||||
Consumer: | |||||||
Consumer real estate | 7,913 | 7,931 | |||||
Other consumer | 412 | 262 | |||||
Total | $ | 23,799 | $ | 27,203 |
June 30, 2013 | December 31, 2012 | ||||||
Nonaccrual TDRs(1) | $ | 10,951 | $ | 13,760 | |||
Performing TDRs (2) | 998 | 4,216 | |||||
Total | $ | 11,949 | $ | 17,976 | |||
Specific reserves on TDRs | $ | 1,346 | $ | 2,643 | |||
Outstanding commitments to lend additional funds to borrowers with TDR loans | — | — |
Three Months Ended June 30, 2013 | Three Months Ended June 30, 2012 | |||||||||||||||||||||||||||||||
Principal Deferrals | Combination of Rate Reduction and Principal Deferral | Other | Total | Principal Deferrals | Combination of Rate Reduction and Principal Deferral | Other | Total | |||||||||||||||||||||||||
Commercial real estate | $ | 62 | $ | 47 | $ | — | $ | 109 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Consumer real estate | — | 73 | 264 | 337 | 255 | — | — | 255 | ||||||||||||||||||||||||
Other consumer | 69 | 68 | 2 | 139 | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 131 | $ | 188 | $ | 266 | $ | 585 | $ | 255 | $ | — | $ | — | $ | 255 |
Six Months Ended June 30, 2013 | Six Months Ended June 30, 2012 | |||||||||||||||||||||||||||||||
Principal Deferrals | Combination of Rate Reduction and Principal Deferral | Other | Total | Principal Deferrals | Combination of Rate Reduction and Principal Deferral | Other | Total | |||||||||||||||||||||||||
Commercial real estate | $ | 752 | $ | 47 | $ | — | $ | 799 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Commercial and industrial | 8 | 31 | — | 39 | 28 | — | 52 | 80 | ||||||||||||||||||||||||
Consumer real estate | — | 73 | 264 | 337 | 255 | 383 | 253 | 891 | ||||||||||||||||||||||||
Other consumer | 128 | 68 | 2 | 198 | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 888 | $ | 219 | $ | 266 | $ | 1,373 | $ | 283 | $ | 383 | $ | 305 | $ | 971 |
June 30, 2013 | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days and Greater Past Due | Total Loans Past Due | Current Loans 1 | Total Loans | |||||||||||||||||
Commercial real estate | $ | 2,393 | $ | 3,610 | $ | 1,633 | $ | 7,636 | $ | 997,083 | $ | 1,004,719 | |||||||||||
Commercial and industrial | 1,272 | 529 | 4,148 | 5,949 | 307,082 | 313,031 | |||||||||||||||||
Consumer loans: | |||||||||||||||||||||||
Consumer real estate | 601 | 2,335 | 3,577 | 6,513 | 458,542 | 465,055 | |||||||||||||||||
Other consumer | 260 | 120 | 60 | 440 | 51,942 | 52,382 | |||||||||||||||||
Total | $ | 4,526 | $ | 6,594 | $ | 9,418 | $ | 20,538 | $ | 1,814,649 | $ | 1,835,187 |
December 31, 2012 | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days and Greater Past Due | Total Loans Past Due | Current Loans 1 | Total Loans | |||||||||||||||||
Commercial real estate | $ | 2,243 | $ | 1,182 | $ | 1,128 | $ | 4,553 | $ | 835,355 | $ | 839,908 | |||||||||||
Commercial and industrial | 2,066 | 530 | 2,867 | 5,463 | 273,062 | 278,525 | |||||||||||||||||
Consumer loans: | |||||||||||||||||||||||
Consumer real estate | 8,145 | 1,974 | 4,469 | 14,588 | 498,668 | 513,256 | |||||||||||||||||
Other consumer | 563 | 151 | 49 | 763 | 58,317 | 59,080 | |||||||||||||||||
Total | $ | 13,017 | $ | 3,837 | $ | 8,513 | $ | 25,367 | $ | 1,665,402 | $ | 1,690,769 |
June 30, 2013 | Commercial Real Estate | Commercial and Industrial | Consumer Real Estate | ||||||||
Grade: 1 | |||||||||||
Pass | $ | 964,803 | $ | 291,632 | $ | 448,497 | |||||
Special Mention | 22,568 | 10,002 | 3,450 | ||||||||
Substandard | 16,452 | 11,397 | 8,923 | ||||||||
Doubtful | 896 | — | 4,185 | ||||||||
Total | $ | 1,004,719 | $ | 313,031 | $ | 465,055 |
December 31, 2012 | Commercial Real Estate | Commercial and Industrial | Consumer Real Estate | ||||||||
Grade: 1 | |||||||||||
Pass | $ | 793,507 | $ | 264,528 | $ | 497,747 | |||||
Special Mention | 17,504 | 645 | 2,617 | ||||||||
Substandard | 27,669 | 13,227 | 8,942 | ||||||||
Doubtful | 1,228 | 125 | 3,950 | ||||||||
Total | $ | 839,908 | $ | 278,525 | $ | 513,256 |
June 30, 2013 | December 31, 2012 | |||||||
Performing | $ | 51,970 | $ | 58,818 | ||||
Non-performing | 412 | 262 | ||||||
Total | $ | 52,382 | $ | 59,080 |
June 30, 2013 | Fair Value Measurements Using Significant Other Observable Inputs (Level 2) | ||
Assets: | |||
Agency residential mortgage-backed securities | $ | 197,903 | |
Agency residential collateralized mortgage obligations | 86,849 | ||
SBA pools | 3,082 | ||
Total securities available for sale | $ | 287,834 |
December 31, 2012 | |||
Assets: | |||
Agency residential mortgage-backed securities | $ | 166,100 | |
Agency residential collateralized mortgage obligations | 117,486 | ||
SBA pools | 3,448 | ||
Total securities available for sale | $ | 287,034 |
Fair Value Measurements Using | |||||||||||
June 30, 2013 | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Assets: | |||||||||||
Impaired loans | $ | 12,521 | $ | — | $ | 12,521 | |||||
Other real estate owned | 553 | 124 | 429 |
Fair Value Measurements Using | |||||||||||
December 31, 2012 | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Assets: | |||||||||||
Impaired loans | $ | 14,064 | $ | — | $ | 14,064 | |||||
Other real estate owned | 1,886 | 416 | 1,470 |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||
Fair Value | Range (Average) | ||||||||
June 30, 2013 | December 31, 2012 | Valuation Technique | Unobservable Input | ||||||
Impaired loans | $ | 11,925 | $ | 10,986 | Third party appraisal | Discount of market value | 0%-10% (7%) | ||
Estimated marketing costs | 6%-9% (7%) | ||||||||
Estimated legal expenses | $0-$7 ($2) | ||||||||
596 | 3,078 | Discounted cash flow analysis | Interest rate | 5.4% (5.4%) | |||||
Loan term (in months) | 61 (61) | ||||||||
Other real estate owned | 429 | 1,470 | Third party appraisal | Discount of market value | 8%-70% (18%) | ||||
Estimated marketing costs | 0%-7% (6%) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Beginning Balance | $ | 1,505 | $ | 2,021 | $ | 1,886 | $ | 2,286 | |||||||
Transfers in at fair value | 744 | 2,343 | 1,334 | 2,983 | |||||||||||
Change in valuation allowance | 23 | (17 | ) | 21 | (97 | ) | |||||||||
Sale of property (gross) | (1,719 | ) | (1,052 | ) | (2,688 | ) | (1,877 | ) | |||||||
Ending Balance | $ | 553 | $ | 3,295 | $ | 553 | $ | 3,295 | |||||||
Valuation allowance: | |||||||||||||||
Beginning Balance | $ | 59 | $ | 1,156 | $ | 57 | $ | 1,076 | |||||||
Sale of property | (93 | ) | (9 | ) | (125 | ) | (24 | ) | |||||||
Valuation adjustment | 70 | 26 | 104 | 121 | |||||||||||
Ending Balance | $ | 36 | $ | 1,173 | $ | 36 | $ | 1,173 |
Fair Value | |||||||||||||||
June 30, 2013 | Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Financial assets | |||||||||||||||
Cash and cash equivalents | $ | 57,784 | $ | 57,784 | $ | — | $ | — | |||||||
Securities available for sale | 287,834 | — | 287,834 | — | |||||||||||
Securities held to maturity | 330,969 | — | 339,455 | — | |||||||||||
Loans held for sale | 904,228 | — | — | 904,697 | |||||||||||
Loans held for investment, net | 1,816,025 | — | — | 1,848,787 | |||||||||||
FHLB and Federal Reserve Bank stock | 41,475 | N/A | N/A | N/A | |||||||||||
Bank-owned life insurance | 35,231 | 35,231 | — | — | |||||||||||
Accrued interest receivable | 10,099 | 10,099 | — | — | |||||||||||
Financial liabilities | |||||||||||||||
Deposits | 2,189,180 | — | — | 2,086,424 | |||||||||||
FHLB advances | 800,208 | — | — | 814,089 | |||||||||||
Repurchase agreement | 25,000 | — | — | 27,634 | |||||||||||
Accrued interest payable | 1,151 | 1,151 | — | — |
Fair Value | |||||||||||||||
December 31, 2012 | Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Financial assets | |||||||||||||||
Cash and cash equivalents | $ | 68,696 | $ | 68,696 | $ | — | $ | — | |||||||
Securities available for sale | 287,034 | — | 287,034 | — | |||||||||||
Securities held to maturity | 360,554 | — | 376,153 | — | |||||||||||
Loans held for sale | 1,060,720 | — | — | 1,061,334 | |||||||||||
Loans held for investment, net | 1,673,204 | — | — | 1,696,060 | |||||||||||
FHLB and Federal Reserve Bank stock | 45,025 | N/A | N/A | N/A | |||||||||||
Bank-owned life insurance | 34,916 | 34,916 | — | — | |||||||||||
Accrued interest receivable | 9,900 | 9,900 | — | — | |||||||||||
Financial liabilities | |||||||||||||||
Deposits | $ | 2,177,806 | $ | — | $ | — | $ | 2,097,063 | |||||||
FHLB advances | 892,208 | — | — | 912,817 | |||||||||||
Repurchase agreement | 25,000 | — | — | 28,501 | |||||||||||
Accrued interest payable | 1,216 | 1,216 | — | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Restricted stock | $ | 595 | $ | 606 | $ | 1,025 | $ | 831 | |||||||
Stock options | 255 | 101 | 397 | 209 | |||||||||||
Income tax benefit | 298 | 247 | 498 | 364 |
Six Months Ended June 30, 2013 | ||||||
Shares | Weighted- Average Grant Date Fair Value | |||||
Non-vested at January 1 | 185,296 | $ | 17.60 | |||
Granted | 389,000 | 20.64 | ||||
Vested | (7,600 | ) | 14.32 | |||
Non-vested at June 30 | 566,696 | $ | 19.80 |
Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
Shares | ||||||||||||
Outstanding at December 31, 2012 | 500,049 | $ | 13.70 | 7.6 | $ | 3,619 | ||||||
Granted | 804,500 | 20.33 | 10.0 | — | ||||||||
Exercised | (8,605 | ) | 11.42 | 0.0 | 74 | |||||||
Forfeited | (5,170 | ) | 13.44 | 0.0 | — | |||||||
Outstanding at June 30, 2013 | 1,290,774 | 17.85 | 8.8 | 3,842 | ||||||||
Fully vested and expected to vest | 1,252,895 | 17.80 | 8.7 | 3,795 | ||||||||
Exercisable at June 30, 2013 | 227,762 | $ | 12.47 | 5.8 | $ | 1,899 |
June 30, 2013 | December 31, 2012 | ||||||
Net deferred tax assets | $ | 14,453 | $ | 14,026 | |||
Estimated annual effective tax rate | 34% to 35% |
Three Months Ended June 30, 2012 | Banking | VPM | Eliminations and Adjustments1 | Total Segments (Consolidated Total) | |||||||||||
Results of Operations: | |||||||||||||||
Total interest income | $ | 35,117 | $ | 349 | $ | (339 | ) | $ | 35,127 | ||||||
Total interest expense | 6,105 | 339 | (503 | ) | 5,941 | ||||||||||
Provision (benefit) for loan losses | 1,463 | (16 | ) | — | 1,447 | ||||||||||
Net interest income after provision for loan losses | 27,549 | 26 | 164 | 27,739 | |||||||||||
Other revenue | 6,596 | (1,067 | ) | 810 | 6,339 | ||||||||||
Net gain (loss) on sale of loans | (368 | ) | 2,542 | — | 2,174 | ||||||||||
Total non-interest expense | 22,504 | 2,718 | 1,101 | 26,323 | |||||||||||
Income (loss) before income tax expense (benefit) | 11,273 | (1,217 | ) | (127 | ) | 9,929 | |||||||||
Income tax expense (benefit) | 4,141 | (396 | ) | (308 | ) | 3,437 | |||||||||
Net income (loss) | $ | 7,132 | $ | (821 | ) | $ | 181 | $ | 6,492 | ||||||
Segment assets | $ | 3,691,661 | $ | 43,073 | $ | (41,878 | ) | $ | 3,692,856 | ||||||
Noncash items: | |||||||||||||||
Net gain (loss) on sale of loans | (368 | ) | 2,542 | — | 2,174 | ||||||||||
Depreciation | 964 | 63 | — | 1,027 | |||||||||||
Provision (benefit) for loan losses | 1,463 | (16 | ) | — | 1,447 |
Six Months Ended June 30, 2012 | Banking | VPM | Eliminations and Adjustments1 | Total Segments (Consolidated Total) | |||||||||||
Results of Operations: | |||||||||||||||
Total interest income | $ | 64,473 | $ | 759 | $ | (729 | ) | $ | 64,503 | ||||||
Total interest expense | 12,182 | 729 | (1,084 | ) | 11,827 | ||||||||||
Provision (benefit) for loan losses | 2,362 | (20 | ) | — | 2,342 | ||||||||||
Net interest income after provision for loan losses | 49,929 | 50 | 355 | 50,334 | |||||||||||
Other revenue | 11,157 | (1,067 | ) | 747 | 10,837 | ||||||||||
Net gain (loss) on sale of loans | (939 | ) | 5,345 | — | 4,406 | ||||||||||
Total non-interest expense | 37,770 | 5,466 | 1,539 | 44,775 | |||||||||||
Income (loss) before income tax expense (benefit) | 22,377 | (1,138 | ) | (437 | ) | 20,802 | |||||||||
Income tax expense (benefit) | 7,998 | (369 | ) | (391 | ) | 7,238 | |||||||||
Net income (loss) | $ | 14,379 | $ | (769 | ) | $ | (46 | ) | $ | 13,564 | |||||
Segment assets | $ | 3,691,661 | $ | 43,073 | $ | (41,878 | ) | $ | 3,692,856 | ||||||
Noncash items: | |||||||||||||||
Net gain (loss) on sale of loans | (939 | ) | 5,345 | — | 4,406 | ||||||||||
Depreciation | 1,815 | 127 | — | 1,942 | |||||||||||
Provision (benefit) for loan losses | 2,362 | (20 | ) | — | 2,342 |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
• | Solid commercial loan growth continues, driving shift in earning asset revenue: Our commercial loan portfolio, consisting of commercial real estate and commercial and industrial loans, totaled $1.3 billion at June 30, 2013, up $199.3 million, or 17.8%, from December 31, 2012. Interest income on the commercial loan portfolio for the six months ended June 30, 2013 increased $5.7 million, or 27.8%, from the six months ended June 30, 2012, representing a shift in earning asset revenue. Commercial loans generated 48.8% of the Company's interest income earned during the six months ended June 30, 2013, compared to 37.7% of interest income earned during the six months ended June 30, 2012. |
• | Net interest margin increased by ten basis points compared to the second quarter of 2012: Improvements in the earning asset mix and lower deposit and borrowing rates drove a ten basis point increase in the net interest margin to 3.72% for the three months ended June 30, 2013, compared to 3.62% for the same period in 2012. Compared to the six months ended June 30, 2012, the net interest margin increased by 21 basis points, from 3.47% for the six months ended June 30, 2012, to 3.68% for the six months ended June 30, 2013. |
• | Asset quality improved, positively impacting earnings: During the second quarter of 2013, two commercial real estate loans that were classified as troubled debt restructurings were paid in full, resulting in the recovery of $480,000 of accumulated interest, as well as the recapture of $91,000 in allowance for loan losses that was previously allocated to these two loans. These transactions reduced troubled debt restructurings by $5.9 million, which includes a $2.5 million reduction in non-performing loans. |
• | Increase in average balance of Warehouse Purchase Program loans led to $653,000 increase in interest income: The average balance of Warehouse Purchase Program loans for the six months ended June 30, 2013 totaled $747.0 million, up $96.9 million from $650.1 million for the six months ended June 30, 2012. (Loans held for sale for the six months ended June 30, 2012, included $21.3 million in loans held for sale from ViewPoint Mortgage ("VPM") prior to its sale in the third quarter of 2012.) This increase in average balances led interest income earned on loans held for sale to increase by $653,000 for the six months ended June 30, 2013, compared to the same period last year. |
June 30, 2013 | December 31, 2012 | Dollar Change | Percent Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Commercial real estate | $ | 1,004,719 | $ | 839,908 | $ | 164,811 | 19.62 | % | ||||||
Commercial and industrial loans: | ||||||||||||||
Commercial | 288,054 | 245,799 | 42,255 | 17.19 | ||||||||||
Warehouse lines of credit | 24,977 | 32,726 | (7,749 | ) | (23.68 | ) | ||||||||
Total commercial and industrial loans | 313,031 | 278,525 | 34,506 | 12.39 | ||||||||||
Consumer: | ||||||||||||||
Consumer real estate | 465,055 | 513,256 | (48,201 | ) | (9.39 | ) | ||||||||
Other consumer | 52,382 | 59,080 | (6,698 | ) | (11.34 | ) | ||||||||
Total consumer loans | 517,437 | 572,336 | (54,899 | ) | (9.59 | ) | ||||||||
Gross loans held for investment | 1,835,187 | 1,690,769 | 144,418 | 8.54 | ||||||||||
Loans held for sale | 904,228 | 1,060,720 | (156,492 | ) | (14.75 | ) | ||||||||
Gross loans | $ | 2,739,415 | $ | 2,751,489 | $ | (12,074 | ) | (0.44 | )% |
June 30, 2013 | December 31, 2012 | ||||||
(Dollars in thousands) | |||||||
Doubtful | $ | 5,101 | $ | 5,334 | |||
Substandard | 37,478 | 50,351 | |||||
Total classified loans | 42,579 | 55,685 | |||||
Foreclosed assets | 557 | 1,901 | |||||
Total classified assets | $ | 43,136 | $ | 57,586 |
June 30, 2013 | December 31, 2012 | Dollar Change | Percent Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Non-interest-bearing demand | $ | 384,836 | $ | 357,800 | $ | 27,036 | 7.6 | % | ||||||
Interest-bearing demand | 464,262 | 488,748 | (24,486 | ) | (5.0 | ) | ||||||||
Savings and money market | 887,082 | 880,924 | 6,158 | 0.7 | ||||||||||
Time | 453,000 | 450,334 | 2,666 | 0.6 | ||||||||||
Total deposits | $ | 2,189,180 | $ | 2,177,806 | $ | 11,374 | 0.5 | % |
Balance | Weighted Average Rate | |||||
(Dollars in thousands) | ||||||
Less than 90 days | $ | 604,297 | 0.16 | % | ||
90 days to less than one year | 13,063 | 4.47 | ||||
One to three years | 96,343 | 3.34 | ||||
After three to five years | 78,245 | 2.91 | ||||
After five years | 10,941 | 5.02 | ||||
802,889 | 0.94 | % | ||||
Restructuring prepayment penalty | (2,681 | ) | ||||
Total | $ | 800,208 |
June 30, 2013 | December 31, 2012 | Dollar Change | Percent Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Common stock | $ | 399 | $ | 396 | $ | 3 | 0.8 | % | ||||||
Additional paid-in capital | 373,378 | 372,168 | 1,210 | 0.3 | ||||||||||
Retained earnings | 176,569 | 164,328 | 12,241 | 7.4 | ||||||||||
Accumulated other comprehensive income, net | 271 | 1,895 | (1,624 | ) | (85.7 | ) | ||||||||
Unearned ESOP shares | (17,183 | ) | (17,916 | ) | 733 | (4.1 | ) | |||||||
Total shareholders’ equity | $ | 533,434 | $ | 520,871 | $ | 12,563 | 2.4 | % |
Three Months Ended June 30, | Dollar | Percent | ||||||||||||
2013 | 2012 | Change | Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Interest and dividend income | ||||||||||||||
Loans, including fees | $ | 32,151 | $ | 30,290 | $ | 1,861 | 6.1 | % | ||||||
Securities | 2,986 | 4,658 | (1,672 | ) | (35.9 | ) | ||||||||
Interest-bearing deposits in other financial institutions | 25 | 38 | (13 | ) | (34.2 | ) | ||||||||
FHLB and Federal Reserve Bank stock | 134 | 141 | (7 | ) | (5.0 | ) | ||||||||
$ | 35,296 | $ | 35,127 | $ | 169 | 0.5 | % |
Three Months Ended June 30, | Dollar | Percent | ||||||||||||
2013 | 2012 | Change | Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Interest expense | ||||||||||||||
Deposits | $ | 2,450 | $ | 3,247 | $ | (797 | ) | (24.5 | )% | |||||
FHLB advances | 2,205 | 2,415 | (210 | ) | (8.7 | ) | ||||||||
Repurchase agreement | 203 | 251 | (48 | ) | (19.1 | ) | ||||||||
Other borrowings | — | 28 | (28 | ) | (100.0 | ) | ||||||||
$ | 4,858 | $ | 5,941 | $ | (1,083 | ) | (18.2 | )% |
Three Months Ended June 30, | Dollar | Percent | ||||||||||||
2013 | 2012 | Change | Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Non-interest income | ||||||||||||||
Service charges and fees | $ | 4,768 | $ | 4,827 | $ | (59 | ) | (1.2 | )% | |||||
Other charges and fees | 179 | 165 | 14 | 8.5 | ||||||||||
Net gain on sale of mortgage loans | — | 2,174 | (2,174 | ) | (100.0 | ) | ||||||||
Bank-owned life insurance income | 153 | 165 | (12 | ) | (7.3 | ) | ||||||||
Gain (loss) on sale of available for sale securities | — | 116 | (116 | ) | (100.0 | ) | ||||||||
Gain (loss) on sale and disposition of assets | 444 | (56 | ) | 500 | N/M 1 | |||||||||
Impairment of goodwill | — | (818 | ) | 818 | (100.0 | ) | ||||||||
Other | 199 | 1,940 | (1,741 | ) | (89.7 | ) | ||||||||
$ | 5,743 | $ | 8,513 | $ | (2,770 | ) | (32.5 | )% |
Three Months Ended June 30, | Dollar | Percent | ||||||||||||
2013 | 2012 | Change | Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Non-interest expense | ||||||||||||||
Salaries and employee benefits | $ | 12,528 | $ | 14,110 | $ | (1,582 | ) | (11.2 | )% | |||||
Acquisition costs | — | 3,741 | (3,741 | ) | (100.0 | ) | ||||||||
Advertising | 751 | 490 | 261 | 53.3 | ||||||||||
Occupancy and equipment | 1,938 | 1,952 | (14 | ) | (0.7 | ) | ||||||||
Outside professional services | 570 | 691 | (121 | ) | (17.5 | ) | ||||||||
Regulatory assessments | 650 | 624 | 26 | 4.2 | ||||||||||
Data processing | 1,729 | 1,617 | 112 | 6.9 | ||||||||||
Office operations | 1,751 | 1,934 | (183 | ) | (9.5 | ) | ||||||||
Other | 1,786 | 1,164 | 622 | 53.4 | ||||||||||
$ | 21,703 | $ | 26,323 | $ | (4,620 | ) | (17.6 | )% |
Six Months Ended June 30, | Dollar | Percent | ||||||||||||
2013 | 2012 | Change | Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Interest and dividend income | ||||||||||||||
Loans, including fees | $ | 62,529 | $ | 54,610 | $ | 7,919 | 14.5 | % | ||||||
Securities | 5,863 | 9,589 | (3,726 | ) | (38.9 | ) | ||||||||
Interest-bearing deposits in other financial institutions | 56 | 57 | (1 | ) | (1.8 | ) | ||||||||
FHLB and Federal Reserve Bank stock | 267 | 247 | 20 | 8.1 | ||||||||||
$ | 68,715 | $ | 64,503 | $ | 4,212 | 6.5 | % |
Six Months Ended June 30, | Dollar | Percent | ||||||||||||
2013 | 2012 | Change | Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Interest expense | ||||||||||||||
Deposits | $ | 4,882 | $ | 6,476 | $ | (1,594 | ) | (24.6 | )% | |||||
FHLB advances | 4,466 | 4,869 | (403 | ) | (8.3 | ) | ||||||||
Repurchase agreement | 404 | 454 | (50 | ) | (11.0 | ) | ||||||||
Other borrowings | — | 28 | (28 | ) | N/M1 | |||||||||
$ | 9,752 | $ | 11,827 | $ | (2,075 | ) | (17.5 | )% |
Six Months Ended June 30, | Dollar | Percent | ||||||||||||
2013 | 2012 | Change | Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Non-interest income | ||||||||||||||
Service charges and fees | $ | 9,059 | $ | 9,065 | $ | (6 | ) | (0.1 | )% | |||||
Other charges and fees | 391 | 293 | 98 | 33.4 | ||||||||||
Net gain on sale of mortgage loans | — | 4,406 | (4,406 | ) | N/M 1 | |||||||||
Bank-owned life insurance income | 315 | 274 | 41 | 15.0 | ||||||||||
Gain (loss) on sale of available for sale securities | (177 | ) | 116 | (293 | ) | N/M 1 | ||||||||
Gain (loss) on sale and disposition of assets | 674 | (137 | ) | 811 | N/M 1 | |||||||||
Impairment of goodwill | — | (818 | ) | 818 | N/M 1 | |||||||||
Other | 1,340 | 2,044 | (704 | ) | (34.4 | ) | ||||||||
$ | 11,602 | $ | 15,243 | $ | (3,641 | ) | (23.9 | )% |
Six Months Ended June 30, | Dollar | Percent | ||||||||||||
2013 | 2012 | Change | Change | |||||||||||
(Dollars in thousands) | ||||||||||||||
Non-interest expense | ||||||||||||||
Salaries and employee benefits | $ | 25,443 | $ | 25,834 | $ | (391 | ) | (1.5 | )% | |||||
Acquisition costs | — | 3,885 | (3,885 | ) | N/M 1 | |||||||||
Advertising | 1,264 | 775 | 489 | 63.1 | ||||||||||
Occupancy and equipment | 3,728 | 3,422 | 306 | 8.9 | ||||||||||
Outside professional services | 1,254 | 1,174 | 80 | 6.8 | ||||||||||
Regulatory assessments | 1,229 | 1,205 | 24 | 2.0 | ||||||||||
Data processing | 3,247 | 2,862 | 385 | 13.5 | ||||||||||
Office operations | 3,399 | 3,479 | (80 | ) | (2.3 | ) | ||||||||
Other | 3,012 | 2,139 | 873 | 40.8 | ||||||||||
$ | 42,576 | $ | 44,775 | $ | (2,199 | ) | (4.9 | )% |
Three Months Ended June 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Average Outstanding Balance | Interest Earned/Paid | Yield/ Rate | Average Outstanding Balance | Interest Earned/Paid | Yield/ Rate | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Commercial real estate | $ | 961,631 | $ | 14,074 | 5.85 | % | $ | 724,775 | $ | 11,618 | 6.41 | % | ||||||||||
Commercial and industrial | 316,151 | 3,829 | 4.84 | 185,580 | 2,713 | 5.85 | ||||||||||||||||
Consumer real estate | 476,226 | 6,143 | 5.16 | 575,791 | 7,979 | 5.54 | ||||||||||||||||
Other consumer | 53,759 | 798 | 5.94 | 62,192 | 999 | 6.43 | ||||||||||||||||
Loans held for sale | 755,577 | 7,307 | 3.87 | 681,095 | 6,981 | 4.10 | ||||||||||||||||
Less: deferred fees and allowance for loan loss | (18,649 | ) | — | — | (17,803 | ) | — | — | ||||||||||||||
Loans receivable 1 | 2,544,695 | 32,151 | 5.05 | 2,211,630 | 30,290 | 5.48 | ||||||||||||||||
Agency mortgage-backed securities | 321,548 | 1,565 | 1.95 | 368,736 | 2,232 | 2.42 | ||||||||||||||||
Agency collateralized mortgage obligations | 253,741 | 872 | 1.37 | 515,353 | 1,920 | 1.49 | ||||||||||||||||
Investment securities | 67,925 | 549 | 3.23 | 57,547 | 506 | 3.52 | ||||||||||||||||
FHLB and FRB stock | 37,717 | 134 | 1.42 | 34,975 | 141 | 1.61 | ||||||||||||||||
Interest-earning deposit accounts | 45,810 | 25 | 0.22 | 33,241 | 38 | 0.46 | ||||||||||||||||
Total interest-earning assets | 3,271,436 | 35,296 | 4.32 | 3,221,482 | 35,127 | 4.36 | ||||||||||||||||
Non-interest-earning assets | 182,263 | 206,325 | ||||||||||||||||||||
Total assets | $ | 3,453,699 | $ | 3,427,807 | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest-bearing demand | $ | 459,433 | 466 | 0.41 | $ | 505,569 | 1,061 | 0.84 | ||||||||||||||
Savings and money market | 883,507 | 601 | 0.27 | 892,844 | 637 | 0.29 | ||||||||||||||||
Time | 451,110 | 1,383 | 1.23 | 529,928 | 1,549 | 1.17 | ||||||||||||||||
Borrowings | 679,693 | 2,408 | 1.42 | 626,055 | 2,694 | 1.72 | ||||||||||||||||
Total interest-bearing liabilities | 2,473,743 | 4,858 | 0.79 | 2,554,396 | 5,941 | 0.93 | ||||||||||||||||
Non-interest-bearing demand | 393,815 | 316,237 | ||||||||||||||||||||
Non-interest-bearing liabilities | 53,244 | 52,578 | ||||||||||||||||||||
Total liabilities | 2,920,802 | 2,923,211 | ||||||||||||||||||||
Total shareholders’ equity | 532,897 | 504,596 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,453,699 | $ | 3,427,807 | ||||||||||||||||||
Net interest income and margin | $ | 30,438 | 3.72 | % | $ | 29,186 | 3.62 | % | ||||||||||||||
Net interest income and margin (tax-equivalent basis) 2 | $ | 30,628 | 3.74 | % | $ | 29,358 | 3.65 | % | ||||||||||||||
Net interest rate spread | 3.53 | % | 3.43 | % | ||||||||||||||||||
Net earning assets | $ | 797,693 | $ | 667,086 | ||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 132.25 | % | 126.12 | % | ||||||||||||||||||
1 | Calculated net of deferred fees, loan discounts, loans in process and allowance for loan losses. Includes loans held for sale. | |||||||||||||||||||||
2 | In order to make pretax income and resultant yields on tax-exempt investments and loans comparable to those on taxable investments and loans, a tax-equivalent adjustment has been computed using a federal income tax rate of 35% for 2013 and 2012. Tax-exempt investments and loans had an average balance of $62.0 million and $52.4 million for the three months ended June 30, 2013 and 2012, respectively. |
Six Months Ended June 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Average Outstanding Balance | Interest Earned/Paid | Yield/ Rate | Average Outstanding Balance | Interest Earned/Paid | Yield/ Rate | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Commercial real estate | $ | 900,732 | $ | 26,410 | 5.86 | % | $ | 653,742 | $ | 20,672 | 6.32 | % | ||||||||||
Commercial and industrial | 299,939 | 7,102 | 4.74 | 127,549 | 3,621 | 5.68 | ||||||||||||||||
Consumer real estate | 490,516 | 12,835 | 5.23 | 543,901 | 14,645 | 5.39 | ||||||||||||||||
Other consumer | 55,452 | 1,633 | 5.89 | 56,414 | 1,776 | 6.30 | ||||||||||||||||
Loans held for sale | 746,954 | 14,549 | 3.90 | 671,392 | 13,896 | 4.14 | ||||||||||||||||
Less: deferred fees and allowance for loan loss | (17,949 | ) | — | — | (17,308 | ) | — | — | ||||||||||||||
Loans receivable 1 | 2,475,644 | 62,529 | 5.05 | 2,035,690 | 54,610 | 5.37 | ||||||||||||||||
Agency mortgage-backed securities | 308,345 | 3,066 | 1.99 | 338,530 | 4,356 | 2.57 | ||||||||||||||||
Agency collateralized mortgage obligations | 271,252 | 1,752 | 1.29 | 533,784 | 4,229 | 1.58 | ||||||||||||||||
Investment securities | 61,561 | 1,045 | 3.40 | 57,180 | 1,004 | 3.51 | ||||||||||||||||
FHLB and FRB stock | 36,381 | 267 | 1.47 | 34,264 | 247 | 1.44 | ||||||||||||||||
Interest-earning deposit accounts | 49,930 | 56 | 0.22 | 33,525 | 57 | 0.34 | ||||||||||||||||
Total interest-earning assets | 3,203,113 | 68,715 | 4.29 | 3,032,973 | 64,503 | 4.25 | ||||||||||||||||
Non-interest-earning assets | 185,548 | 168,839 | ||||||||||||||||||||
Total assets | $ | 3,388,661 | $ | 3,201,812 | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||
Interest-bearing demand | $ | 462,393 | 936 | 0.40 | $ | 489,628 | 2,169 | 0.89 | ||||||||||||||
Savings and money market | 880,614 | 1,189 | 0.27 | 826,217 | 1,123 | 0.27 | ||||||||||||||||
Time | 450,594 | 2,757 | 1.22 | 501,012 | 3,184 | 1.27 | ||||||||||||||||
Borrowings | 635,212 | 4,870 | 1.53 | 618,155 | 5,351 | 1.73 | ||||||||||||||||
Total interest-bearing liabilities | 2,428,813 | 9,752 | 0.80 | 2,435,012 | 11,827 | 0.97 | ||||||||||||||||
Non-interest-bearing demand | 380,589 | 264,728 | ||||||||||||||||||||
Non-interest-bearing liabilities | 48,817 | 44,249 | ||||||||||||||||||||
Total liabilities | 2,858,219 | 2,743,989 | ||||||||||||||||||||
Total shareholders’ equity | 530,442 | 457,823 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,388,661 | $ | 3,201,812 | ||||||||||||||||||
Net interest income and margin | $ | 58,963 | 3.68 | % | $ | 52,676 | 3.47 | % | ||||||||||||||
Net interest income and margin (tax-equivalent basis) 2 | $ | 59,322 | 3.70 | % | $ | 53,021 | 3.50 | % | ||||||||||||||
Net interest rate spread | 3.49 | % | 3.28 | % | ||||||||||||||||||
Net earning assets | $ | 774,300 | $ | 597,961 | ||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 131.88 | % | 124.56 | % | ||||||||||||||||||
1 | Calculated net of deferred fees, loan discounts, loans in process and allowance for loan losses. Includes loans held for sale. | |||||||||||||||||||||
2 | In order to make pretax income and resultant yields on tax-exempt investments and loans comparable to those on taxable investments and loans, a tax-equivalent adjustment has been computed using a federal income tax rate of 35% for 2013 and 2012. Tax-exempt investments and loans had an average balance of $56.9 million and $52.5 million for the six months ended June 30, 2013 and 2012, respectively. |
Three Months Ended June 30, | |||||||||||
2013 versus 2012 | |||||||||||
Increase (Decrease) Due to | Total Increase | ||||||||||
Volume | Rate | (Decrease) | |||||||||
(Dollars in thousands) | |||||||||||
Interest-earning assets: | |||||||||||
Commercial real estate | $ | 3,536 | $ | (1,080 | ) | $ | 2,456 | ||||
Commercial and industrial | 1,646 | (530 | ) | 1,116 | |||||||
Consumer real estate | (1,312 | ) | (524 | ) | (1,836 | ) | |||||
Other consumer | (129 | ) | (72 | ) | (201 | ) | |||||
Loans held for sale | 735 | (409 | ) | 326 | |||||||
Loans receivable | 4,476 | (2,615 | ) | 1,861 | |||||||
Agency mortgage-backed securities | (264 | ) | (403 | ) | (667 | ) | |||||
Agency collateralized mortgage obligations | (909 | ) | (139 | ) | (1,048 | ) | |||||
Investment securities | 86 | (43 | ) | 43 | |||||||
FHLB and FRB stock | 11 | (18 | ) | (7 | ) | ||||||
Interest-earning deposit accounts | 11 | (24 | ) | (13 | ) | ||||||
Total interest-earning assets | 3,411 | (3,242 | ) | 169 | |||||||
Interest-bearing liabilities: | |||||||||||
Interest-bearing demand | (89 | ) | (506 | ) | (595 | ) | |||||
Savings and money market | (7 | ) | (29 | ) | (36 | ) | |||||
Time | (239 | ) | 73 | (166 | ) | ||||||
Borrowings | 217 | (503 | ) | (286 | ) | ||||||
Total interest-bearing liabilities | (118 | ) | (965 | ) | (1,083 | ) | |||||
Net interest income | $ | 3,529 | $ | (2,277 | ) | $ | 1,252 |
Six Months Ended June 30, | |||||||||||
2013 versus 2012 | |||||||||||
Increase (Decrease) Due to | Total Increase | ||||||||||
Volume | Rate | (Decrease) | |||||||||
(Dollars in thousands) | |||||||||||
Interest-earning assets: | |||||||||||
Commercial real estate | $ | 7,334 | $ | (1,596 | ) | $ | 5,738 | ||||
Commercial and industrial | 4,171 | (690 | ) | 3,481 | |||||||
Consumer real estate | (1,406 | ) | (404 | ) | (1,810 | ) | |||||
Other consumer | (30 | ) | (113 | ) | (143 | ) | |||||
Loans held for sale | 1,503 | (850 | ) | 653 | |||||||
Loans receivable | 11,572 | (3,653 | ) | 7,919 | |||||||
Agency mortgage-backed securities | (364 | ) | (926 | ) | (1,290 | ) | |||||
Agency collateralized mortgage obligations | (1,801 | ) | (676 | ) | (2,477 | ) | |||||
Investment securities | 75 | (34 | ) | 41 | |||||||
FHLB and FRB stock | 15 | 5 | 20 | ||||||||
Interest-earning deposit accounts | 22 | (23 | ) | (1 | ) | ||||||
Total interest-earning assets | 9,519 | (5,307 | ) | 4,212 | |||||||
Interest-bearing liabilities: | |||||||||||
Interest-bearing demand | (115 | ) | (1,118 | ) | (1,233 | ) | |||||
Savings and money market | 73 | (7 | ) | 66 | |||||||
Time | (312 | ) | (115 | ) | (427 | ) | |||||
Borrowings | 144 | (625 | ) | (481 | ) | ||||||
Total interest-bearing liabilities | (210 | ) | (1,865 | ) | (2,075 | ) | |||||
Net interest income | $ | 9,729 | $ | (3,442 | ) | $ | 6,287 |
June 30, 2013 | |||||||||||||||||||
Less than One Year | One through Three Years | Four through Five Years | After Five Years | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Contractual obligations: | |||||||||||||||||||
Deposits without a stated maturity | $ | 1,736,180 | $ | — | $ | — | $ | — | $ | 1,736,180 | |||||||||
Certificates of deposit | 317,615 | 115,456 | 18,058 | 1,871 | 453,000 | ||||||||||||||
FHLB advances (gross of restructuring prepayment penalty of $2,681) | 617,360 | 96,343 | 78,245 | 10,941 | 802,889 | ||||||||||||||
Repurchase agreement | — | — | 25,000 | — | 25,000 | ||||||||||||||
Operating leases (premises) | 2,426 | 4,865 | 2,719 | 5,503 | 15,513 | ||||||||||||||
Total contractual obligations | $ | 2,673,581 | $ | 216,664 | $ | 124,022 | $ | 18,315 | 3,032,582 | ||||||||||
Off-balance sheet loan commitments: 1 | |||||||||||||||||||
Unused commitments to extend credit | $ | 302,125 | $ | — | $ | — | $ | — | $ | 302,125 | |||||||||
Unused commitment on Warehouse Purchase Program loans | 508,772 | — | — | — | 508,772 | ||||||||||||||
Letters of credit | 2,558 | — | — | — | 2,558 | ||||||||||||||
Total loan commitments | $ | 813,455 | $ | — | $ | — | $ | — | 813,455 | ||||||||||
Total contractual obligations and loan commitments | $ | 3,846,037 | |||||||||||||||||
1 Loans having no stated maturity are reported in the “Less than One Year” category. |
Actual | Required for Capital Adequacy Purposes | To Be Well-Capitalized Under Prompt Corrective Action Regulations | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
June 30, 2013 | (Dollars in Thousands) | |||||||||||||||||||
Total risk-based capital | ||||||||||||||||||||
the Company | $ | 521,244 | 18.67 | % | $ | 223,401 | 8.00 | % | 279,251 | 10.00 | % | |||||||||
the Bank | 420,672 | 15.07 | 223,284 | 8.00 | 279,105 | 10.00 | ||||||||||||||
Tier 1 risk-based capital | ||||||||||||||||||||
the Company | 501,967 | 17.98 | 111,701 | 4.00 | 167,551 | 6.00 | ||||||||||||||
the Bank | 401,394 | 14.38 | 111,642 | 4.00 | 167,463 | 6.00 | ||||||||||||||
Tier 1 leverage | ||||||||||||||||||||
the Company | 501,967 | 14.71 | 136,514 | 4.00 | 170,643 | 5.00 | ||||||||||||||
the Bank | 401,394 | 11.76 | 136,527 | 4.00 | 170,659 | 5.00 | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Total risk-based capital | ||||||||||||||||||||
the Company | $ | 505,566 | 22.47 | % | $ | 179,957 | 8.00 | % | $ | 224,947 | 10.00 | % | ||||||||
the Bank | 404,562 | 18.00 | 179,847 | 8.00 | 224,809 | 10.00 | ||||||||||||||
Tier 1 risk-based capital | ||||||||||||||||||||
the Company | 487,515 | 21.67 | 89,979 | 4.00 | 134,968 | 6.00 | ||||||||||||||
the Bank | 386,511 | 17.19 | 89,923 | 4.00 | 134,885 | 6.00 | ||||||||||||||
Tier 1 leverage | ||||||||||||||||||||
the Company | 487,515 | 13.97 | 139,620 | 4.00 | 174,525 | 5.00 | ||||||||||||||
the Bank | 386,511 | 11.08 | 139,595 | 4.00 | 174,493 | 5.00 |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
June 30, 2013 | |||||||||||||||||||||
Change in Interest Rates in Basis Points | Economic Value of Equity | Earnings at Risk (12 months) | |||||||||||||||||||
Estimated EVE | Estimated Increase / (Decrease) in EVE | EVE Ratio % | Estimated Net Interest Income | Increase / (Decrease) in Estimated Net Interest Income | |||||||||||||||||
$ Amount | $ Change | % Change | $ Amount | $ Change | % Change | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
400 | 524,624 | (36,236 | ) | (6.46 | ) | 15.50 | 131,723 | 5,695 | 4.52 | ||||||||||||
300 | 541,356 | (19,504 | ) | (3.48 | ) | 15.69 | 127,978 | 1,950 | 1.55 | ||||||||||||
200 | 552,035 | (8,825 | ) | (1.57 | ) | 15.72 | 124,166 | (1,862 | ) | (1.48 | ) | ||||||||||
100 | 559,541 | (1,319 | ) | (0.24 | ) | 15.65 | 121,142 | (4,886 | ) | (3.88 | ) | ||||||||||
— | 560,860 | — | — | 15.43 | 126,028 | — | — | ||||||||||||||
(100 | ) | 550,379 | (10,481 | ) | (1.87 | ) | 14.91 | 124,588 | (1,440 | ) | (1.14 | ) |
December 31, 2012 | |||||||||||||||||||||
Change in Interest Rates in Basis Points | Economic Value of Equity | Earnings at Risk (12 months) | |||||||||||||||||||
Estimated EVE | Estimated Increase / (Decrease) in EVE | EVE Ratio % | Estimated Net Interest Income | Increase / (Decrease) in Estimated Net Interest Income | |||||||||||||||||
$ Amount | $ Change | % Change | $ Amount | $ Change | % Change | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
400 | 534,416 | 18,473 | 3.58 | 15.40 | 140,514 | 11,608 | 9.01 | ||||||||||||||
300 | 541,071 | 25,128 | 4.87 | 15.31 | 134,215 | 5,309 | 4.12 | ||||||||||||||
200 | 541,636 | 25,693 | 4.98 | 15.07 | 127,916 | (990 | ) | (0.77 | ) | ||||||||||||
100 | 534,009 | 18,066 | 3.50 | 14.62 | 125,333 | (3,573 | ) | (2.77 | ) | ||||||||||||
— | 515,943 | — | — | 13.94 | 128,906 | — | — | ||||||||||||||
(100 | ) | 493,055 | (22,888 | ) | (4.44 | ) | 13.15 | 127,524 | (1,382 | ) | (1.07 | ) |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased | Weighted Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||
April 1, 2013 to April 30, 2013 | — | $ | — | — | 1,978,871 | ||||||||
May 1, 2013 to May 31, 2013 | 40,700 | 18.34 | 40,700 | 1,938,171 | |||||||||
June 1, 2013 to June 30, 2013 | 43,100 | 18.75 | 43,100 | 1,895,071 | |||||||||
Total | 83,800 | $ | 18.55 | 83,800 |
Item 3. | Defaults upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit | |||
Number | Description | ||
2.1 | Agreement and Plan of Merger by and between the Registrant and Highlands Bancshares, Inc. (incorporated herein by reference to Exhibit 2.1 of the Registrant's Current Report on Form 8-K filed with the SEC on December 9, 2011 (File No. 001-34737)) | ||
3.1 | Charter of the Registrant (incorporated herein by reference to Exhibit 3.1 to the Registrant's Registration Statement on Form S-1, as amended (File No. 333-165509)) | ||
3.2 | Bylaws of the Registrant (incorporated herein by reference to Exhibit 3.2 to the Registrant's Registration Statement on Form S-1 (File No. 333-165509)) | ||
4.0 | Certificate of Registrant's Common Stock (incorporated herein by reference to Exhibit 4.0 to the Registrant's Registration Statement on Form S-1, as amended (File No. 333-165509)) | ||
10.1 | Form of Severance Agreement between ViewPoint Bank and Mark L. Williamson (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on February 17, 2011 (File No. 001-34737)) | ||
10.2 | Summary of Director Board Fee Arrangements (incorporated herein by reference to Exhibit 3.2 to the Registrant's Quarterly Report on Form 10-Q filed with the SEC on August 9, 2007 (File No. 001-32992)) | ||
10.3 | ViewPoint Bank Deferred Compensation Plan (incorporated herein by reference to Exhibit 10.7 to the Registrant's Registration Statement on Form S-1, as amended (File No. 0-24566-01)) | ||
10.4 | Amended and Restated ViewPoint Bank Supplemental Executive Retirement Plan (incorporated herein by reference to Exhibit 10.8 to the Registrant's Registration Statement on Form S-1, as amended (File No. 0-24566-01)) | ||
10.5 | 2013 Executive Annual Incentive Plan (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on March 6, 2013 (File No. 001-34737)) | ||
Exhibit | |||
Number | Description | ||
10.6 | Employment Agreement between the Registrant and ViewPoint Bank, N.A. and Kevin Hanigan (incorporated herein by reference to Exhibit 10.1 to the Registrant's Registration Statement on Form S-4 filed with the SEC on January 17, 2012 (File No. 333-179037)) | ||
10.7 | Form of Severance Agreement between ViewPoint Bank and the following executive officers: Scott A. Almy, Charles D. Eikenberg and Thomas S. Swiley (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on November 1, 2012 (File No. 001-34737)) | ||
10.8 | Form of Director's Agreement between the Registrant and James B. McCarley (incorporated herein by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the SEC on March 6, 2013 (File No. 001-34737)) | ||
10.9 | Form of Director's Agreement between the Registrant and Gary D. Basham (incorporated herein by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the SEC on March 6, 2013 (File No. 001-34737)) | ||
10.10 | Form of Director's Agreement between the Registrant and Jack D. Ersman (incorporated herein by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the SEC on March 6, 2013 (File No. 001-34737)) | ||
10.11 | Form of Director's Agreement between the Registrant and V. Keith Sockwell (incorporated herein by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the SEC on March 6, 2013 (File No. 001-34737)) | ||
10.12 | Resignation, Release and Consulting Agreement between the Registrant and Pathie E. McKee (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on July 3, 2013 (File No. 001-34737)) | ||
11 | Statement regarding computation of per share earnings (See Note 2 of the Condensed Notes to Unaudited Consolidated Interim Financial Statements included in this Form 10-Q). | ||
31.1 | Rule 13a — 14(a)/15d — 14(a) Certification (Chief Executive Officer) | ||
31.2 | Rule 13a — 14(a)/15d — 14(a) Certification (Chief Financial Officer) | ||
32 | Section 1350 Certifications | ||
101* | The following materials from the ViewPoint Financial Group, Inc. Annual Report on Form 10-Q for the quarter ended June 30, 2013, formatted in eXtensible Business Reporting Language (XBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders’ Equity, (vi) the Consolidated Statements of Cash Flows and (vii) related notes. |
* | This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. As provided in Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934. |
Date: | July 30, 2013 | By: | /s/ Kevin J. Hanigan | |
Kevin J. Hanigan, | ||||
President and Chief Executive Officer | ||||
(Duly Authorized Officer) | ||||
Date: | July 30, 2013 | By: | /s/ Pathie E. McKee | |
Pathie E. McKee, | ||||
Executive Vice President, Chief Financial Officer and Treasurer | ||||
(Principal Financial and Accounting Officer) |
31.1 | Certification of the Chief Executive Officer |
31.2 | Certification of the Chief Financial Officer |
32.0 | Section 1350 Certifications |
101* | Financial statements from Quarterly Report on Form 10-Q of the Registrant for the quarter ended June 30, 2013, formatted in Extensible Business Reporting Language: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders' Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Condensed Notes to Unaudited Consolidated Interim Financial Statements.* |
* This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. As provided in Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934. |
1. | I have reviewed this Quarterly Report on Form 10-Q of ViewPoint Financial Group, 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 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 assurances 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. |
5. | The registrant's other certifying officer 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 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. |
Date: | July 30, 2013 | By: | /s/ Kevin J. Hanigan | |
Kevin J. Hanigan, | ||||
President and Chief Executive Officer | ||||
1. | I have reviewed this Quarterly Report on Form 10-Q of ViewPoint Financial Group, 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 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; |
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. |
5. | The registrant's other certifying officer 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 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. |
Date: | July 30, 2013 | By: | /s/ Pathie E. McKee | |
Pathie E. McKee, | ||||
Executive Vice President, Chief Financial Officer and Treasurer |
1) | The Report fully complies with the requirements of Section 13(a) 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 result of operations of the Company as of the dates and for the periods presented in the financial statements included in such Report. |
Date: | July 30, 2013 | By: | /s/ Kevin J. Hanigan | |
Kevin J. Hanigan, | ||||
President and Chief Executive Officer | ||||
Date: | July 30, 2013 | By: | /s/ Pathie E. McKee | |
Pathie E. McKee, | ||||
Executive Vice President, Chief Financial Officer and Treasurer |
SEGMENT INFORMATION
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION On June 5, 2012, the Bank and VPM, our former mortgage banking subsidiary, entered into a definitive agreement with Highlands Residential Mortgage, Ltd. (“HRM”) to sell substantially all of the assets of VPM to HRM, subject to certain closing conditions. The transaction closed in the third quarter of 2012. The reportable segments are determined by the products and services offered, primarily distinguished between banking and VPM, our former mortgage banking subsidiary. Loans, investments and deposits generate the revenues in the banking segment; secondary marketing sales generated the revenue in the VPM segment. Segment performance is evaluated using segment profit (loss). Information reported internally for performance assessment for the three and six months ended June 30, 2012, was as follows. The Company had only one reportable segment (Banking) for the three and six months ended June 30, 2013.
1 Includes eliminating entries for intercompany transactions and stand-alone expenses of the Company. |
BASIS OF FINANCIAL STATEMENTS
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Accounting Policies [Abstract] | |
BASIS OF FINACIAL STATEMENTS | The accompanying consolidated financial statements of ViewPoint Financial Group, Inc. (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles and with the rules and regulations of the Securities and Exchange Commission for interim financial reporting. Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of management, all normal and recurring adjustments which are considered necessary to fairly present the results for the interim periods presented have been included. Certain items in prior periods were reclassified to conform to the current presentation. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's 2012 Annual Report on Form 10-K (“2012 Form 10-K”). Interim results are not necessarily indicative of results for a full year. In preparing the financial statements, management is required to make estimates and assumptions that affect the recorded amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the period. Actual results could differ from those estimates. For further information with respect to significant accounting policies followed by the Company in preparation of its consolidated financial statements, refer to the 2012 Form 10-K. The accompanying Unaudited Consolidated Interim Financial Statements include the accounts of the Company, whose business primarily consists of the operations of its wholly owned subsidiary, ViewPoint Bank, National Association (the “Bank”). Prior to its sale during the third quarter of 2012, the Bank's operations included its wholly owned subsidiary, ViewPoint Bankers Mortgage, Inc., doing business as ViewPoint Mortgage (“VPM”). The Bank's operations include the impact of the acquisition of Highlands Bancshares, Inc., which was completed on April 2, 2012. All significant intercompany transactions and balances are eliminated in consolidation. |
FAIR VALUE - (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Value Measured on Recurring Basis | Assets measured at fair value on a recurring basis are summarized below. There were no liabilities measured at fair value on a recurring basis as of June 30, 2013 or December 31, 2012.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Value Measured on Nonrecurring Basis | Assets measured at fair value on a non-recurring basis are summarized below. There were no liabilities measured at fair value on a non-recurring basis as of June 30, 2013 or December 31, 2012.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | Unobservable inputs used in nonrecurring Level 3 fair value measurements at June 30, 2013 and December 31, 2012, are summarized below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity for Other Real Estate Owned and Related Valuation Allowances | Activity for other real estate owned for the three and six months ended June 30, 2013 and 2012, and the related valuation allowances were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | Carrying amount and fair value information of financial instruments at June 30, 2013 and at December 31, 2012, were as follows:
|
RECENT ACCOUNTING DEVELOPMENTS
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING DEVELOPMENTS | In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU requires companies to report information about significant amounts reclassified out of accumulated other comprehensive income either on the face of the financial statements or in the notes. If an entity is unable to identify the line item of net income affected by any significant amount reclassified out of accumulated other comprehensive income during a reporting period (including when all reclassifications for the period are not to net income in their entirety), a company must present information about items reclassified out of accumulated other comprehensive income in the notes. Companies that qualify for and present information about significant items reclassified out of accumulated other comprehensive income on the face of the statement where net income is presented must present parenthetically: 1). the effect of significant reclassification items on the respective line items of net income by component of other comprehensive income and 2.) the aggregate tax effect of all significant reclassifications on the line item for income tax benefit/expense in the statement where net income is presented. For public entities, the amendments are effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. Early adoption is permitted. The Company adopted this ASU for the three months ended March 31, 2013, and has included the required disclosures in the unaudited Consolidated Statements of Income included in this Form 10-Q. |
FAIR VALUE - Quantitative Information About Level 3 Fair Value Measurements (Details) (Fair Value, Inputs, Level 3, USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Third Party Appraisal | Impaired Loans
|
||
Quantitative Information about Level 3 Fair value Measurements | ||
Asset fair value, nonrecurring | $ 11,925 | $ 10,986 |
Third Party Appraisal | Impaired Loans | Minimum
|
||
Quantitative Information about Level 3 Fair value Measurements | ||
Discount of market value | 0.00% | |
Estimated marketing costs | 6.00% | |
Estimated legal expenses | 0 | |
Third Party Appraisal | Impaired Loans | Maximum
|
||
Quantitative Information about Level 3 Fair value Measurements | ||
Discount of market value | 10.00% | |
Estimated marketing costs | 9.00% | |
Estimated legal expenses | 7 | |
Third Party Appraisal | Impaired Loans | Weighted Average
|
||
Quantitative Information about Level 3 Fair value Measurements | ||
Discount of market value | 7.00% | |
Estimated marketing costs | 7.00% | |
Estimated legal expenses | 2 | |
Third Party Appraisal | Other real estate owned
|
||
Quantitative Information about Level 3 Fair value Measurements | ||
Asset fair value, nonrecurring | 429 | 1,470 |
Third Party Appraisal | Other real estate owned | Minimum
|
||
Quantitative Information about Level 3 Fair value Measurements | ||
Discount of market value | 8.00% | |
Estimated marketing costs | 0.00% | |
Third Party Appraisal | Other real estate owned | Maximum
|
||
Quantitative Information about Level 3 Fair value Measurements | ||
Discount of market value | 70.00% | |
Estimated marketing costs | 7.00% | |
Third Party Appraisal | Other real estate owned | Weighted Average
|
||
Quantitative Information about Level 3 Fair value Measurements | ||
Discount of market value | 18.00% | |
Estimated marketing costs | 6.00% | |
Discounted cash flow analysis | Impaired Loans
|
||
Quantitative Information about Level 3 Fair value Measurements | ||
Asset fair value, nonrecurring | $ 596 | $ 3,078 |
Discounted cash flow analysis | Impaired Loans | Minimum
|
||
Quantitative Information about Level 3 Fair value Measurements | ||
Interest rate | 5.40% | |
Loan term | 61 months | |
Discounted cash flow analysis | Impaired Loans | Maximum
|
||
Quantitative Information about Level 3 Fair value Measurements | ||
Interest rate | 5.40% | |
Loan term | 61 months | |
Discounted cash flow analysis | Impaired Loans | Weighted Average
|
||
Quantitative Information about Level 3 Fair value Measurements | ||
Interest rate | 5.40% | |
Loan term | 61 months |
LOANS - Narrative (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2013
Contract
|
Jun. 30, 2012
|
Jun. 30, 2013
Contract
|
Jun. 30, 2012
|
Dec. 31, 2012
Contract
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Portion of allowance for loan losses allocated to PCI loans | $ 228 | $ 0 | $ 228 | $ 0 | |
Period for Determining the Average Loss Ratio, Used in Determining Loan Losses | 24 months | ||||
Loans Receivable, Nonperforming, Period Before Being Placed Into Nonaccrual Status | 90 days | ||||
Loans That Are Past Due Or Greater Are Considered Delinquent | 30 days | ||||
Delinquent Period of Loan to Discontinued Interest Income for Consumer Loan | 90 days | ||||
Consumer Loans Are Typically Charged Off | 120 days | ||||
Loans past due over 90 days and still accruing | 1,726 | 1,726 | 593 | ||
PCI loans that are considered non-performing | 0 | 0 | 0 | ||
Purchased performing loans that were non-performing | 6,288 | 6,288 | 5,364 | ||
Purchased performing nonaccruing commercial lines of credit | 2,893 | 2,893 | 3,159 | ||
Troubled Debt Restructuring Non Accrual Period | 6 months | ||||
Troubled Debt Restructuring Performance Period | 6 months | ||||
Number Of Financing Receivables, Modifications, Paid in Full | 2 | ||||
Interest and Fee Income, Loans and Leases | 32,151 | 30,290 | 62,529 | 54,610 | |
Recoveries | 171 | 117 | 355 | 254 | |
Financing receivable, modifications, subsequent default, recorded investment | 0 | 0 | |||
Number Of Days To Define Payment Default | 90 days | ||||
Period of time for Consumer Loans to be Past Due to be Classified as Non-Performing | 90 days | ||||
Consumer Real Estate
|
|||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, modifications, subsequent default, recorded investment | 359 | 584 | |||
Commercial Real Estate
|
|||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Recoveries | 91 | ||||
Commercial Real Estate
|
|||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Recoveries | 0 | 0 | 0 | 0 | |
Reduction Of Financing Receivable Restructings | 5,857 | 5,857 | |||
Reduction of Non-performing Loans | 2,486 | 2,486 | |||
Commercial Real Estate | Recovery of Accumulated Interest [Member]
|
|||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Interest and Fee Income, Loans and Leases | $ 480 |
SEGMENT INFORMATION (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | Information reported internally for performance assessment for the three and six months ended June 30, 2012, was as follows. The Company had only one reportable segment (Banking) for the three and six months ended June 30, 2013.
1 Includes eliminating entries for intercompany transactions and stand-alone expenses of the Company. |
INCOME TAXES (TABLES)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Net Deferred Tax Assets | A summary of the net deferred tax assets as of June 30, 2013 and December 31, 2012, is presented below:
|
FAIR VALUE - Summary of Fair Value Measured on Recurring Basis (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | $ 287,834 | $ 287,034 |
Agency residential mortgage-backed securities
|
||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 197,903 | 166,100 |
SBA pools
|
||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 3,082 | 3,448 |
Fair Value Measurements Using Significant Other Observable Inputs (Level 2)
|
||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 287,834 | 287,034 |
Fair Value, Measurements, Recurring
|
||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Significant Other Observable Inputs (Level 2)
|
||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 287,834 | 287,034 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Significant Other Observable Inputs (Level 2) | Agency residential mortgage-backed securities
|
||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 197,903 | 166,100 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Significant Other Observable Inputs (Level 2) | Agency residential collateralized mortgage obligations
|
||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 86,849 | 117,486 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Significant Other Observable Inputs (Level 2) | SBA pools
|
||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | $ 3,082 | $ 3,448 |
SECURITIES - Securities with Unrealized Losses Aggregated by Investment and Length of Time that Individual Securities Have Been in Continuous Unrealized Loss Position Category (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
Positions
|
Dec. 31, 2012
Positions
|
---|---|---|
Available For Sale And Held To Maturity Securities [Line Items] | ||
Fair Value, Less than 12 months | $ 101,847 | $ 24,464 |
Unrealized loss, Less than 12 Months | 2,017 | 118 |
Number, Less than 12 Months | 30 | 5 |
Fair Value, 12 Months or More | 4,866 | 16,912 |
Unrealized Loss, 12 Months or More | 42 | 233 |
Number, 12 Months or More | 3 | 6 |
Fair Value, Total | 106,713 | 41,376 |
Unrealized Loss, Total | 2,059 | 351 |
Number, Total | 33 | 11 |
Fair Value, Less than 12 Months | 36,160 | 19,592 |
Unrealized Loss, Less than 12 Months | 1,788 | 64 |
Number, Less than 12 Months | 35 | 6 |
Fair Value, 12 Months or More | 2,535 | 4,972 |
Unrealized Loss, 12 Months or More | 36 | 111 |
Number, 12 Months or More | 3 | 4 |
Fair Value, Total | 38,695 | 24,564 |
Unrealized Loss, Total | 1,824 | 175 |
Number, Total | 38 | 10 |
Agency residential mortgage-backed securities
|
||
Available For Sale And Held To Maturity Securities [Line Items] | ||
Fair Value, Less than 12 months | 96,606 | 24,462 |
Unrealized loss, Less than 12 Months | 1,982 | 118 |
Number, Less than 12 Months | 27 | 4 |
Fair Value, 12 Months or More | 0 | 0 |
Unrealized Loss, 12 Months or More | 0 | 0 |
Number, 12 Months or More | 0 | 0 |
Fair Value, Total | 96,606 | 24,462 |
Unrealized Loss, Total | 1,982 | 118 |
Number, Total | 27 | 4 |
Fair Value, Less than 12 Months | 3,750 | |
Unrealized Loss, Less than 12 Months | 79 | |
Number, Less than 12 Months | 1 | |
Fair Value, 12 Months or More | 0 | |
Unrealized Loss, 12 Months or More | 0 | |
Number, 12 Months or More | 0 | |
Fair Value, Total | 3,750 | |
Unrealized Loss, Total | 79 | |
Number, Total | 1 | |
Agency commercial Mortgage Backed Securities [Member]
|
||
Available For Sale And Held To Maturity Securities [Line Items] | ||
Fair Value, Less than 12 Months | 3,820 | |
Unrealized Loss, Less than 12 Months | 229 | |
Number, Less than 12 Months | 1 | |
Fair Value, 12 Months or More | 0 | |
Unrealized Loss, 12 Months or More | 0 | |
Number, 12 Months or More | 0 | |
Fair Value, Total | 3,820 | |
Unrealized Loss, Total | 229 | |
Number, Total | 1 | |
Agency residential collateralized mortgage securities
|
||
Available For Sale And Held To Maturity Securities [Line Items] | ||
Fair Value, Less than 12 months | 5,241 | 2 |
Unrealized loss, Less than 12 Months | 35 | 0 |
Number, Less than 12 Months | 3 | 1 |
Fair Value, 12 Months or More | 4,866 | 16,912 |
Unrealized Loss, 12 Months or More | 42 | 233 |
Number, 12 Months or More | 3 | 6 |
Fair Value, Total | 10,107 | 16,914 |
Unrealized Loss, Total | 77 | 233 |
Number, Total | 6 | 7 |
Fair Value, Less than 12 Months | 10,519 | 19,311 |
Unrealized Loss, Less than 12 Months | 29 | 62 |
Number, Less than 12 Months | 3 | 5 |
Fair Value, 12 Months or More | 2,535 | 4,972 |
Unrealized Loss, 12 Months or More | 36 | 111 |
Number, 12 Months or More | 3 | 4 |
Fair Value, Total | 13,054 | 24,283 |
Unrealized Loss, Total | 65 | 173 |
Number, Total | 6 | 9 |
Municipal bonds
|
||
Available For Sale And Held To Maturity Securities [Line Items] | ||
Fair Value, Less than 12 Months | 18,071 | 281 |
Unrealized Loss, Less than 12 Months | 1,451 | 2 |
Number, Less than 12 Months | 30 | 1 |
Fair Value, 12 Months or More | 0 | 0 |
Unrealized Loss, 12 Months or More | 0 | 0 |
Number, 12 Months or More | 0 | 0 |
Fair Value, Total | 18,071 | 281 |
Unrealized Loss, Total | $ 1,451 | $ 2 |
Number, Total | 30 | 1 |
LOANS - Summary of Outstanding Balances of Troubled Debt Restructuring (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
||||||
---|---|---|---|---|---|---|---|---|
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||||||||
Recorded investment | $ 11,949 | $ 17,976 | ||||||
Specific reserves on TDRs | 1,346 | 2,643 | ||||||
Outstanding commitments to lend additional funds to borrowers with TDR loans | 0 | 0 | ||||||
Nonaccrual TDRs
|
||||||||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||||||||
Recorded investment | 10,951 | [1] | 13,760 | [1] | ||||
Performing TDRs
|
||||||||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||||||||
Recorded investment | $ 998 | [2] | $ 4,216 | [2] | ||||
|
FAIR VALUE - Activity for Other Real Estate Owned and Related Valuation Allowances (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Other Real Estate Owned Fair Value [Roll Forward] | ||||
Beginning Balance | $ 1,505 | $ 2,021 | $ 1,886 | $ 2,286 |
Sale of property (gross) | (1,719) | (1,052) | (2,688) | (1,877) |
Ending Balance | 553 | 3,295 | 553 | 3,295 |
Other real estate owned
|
||||
Other Real Estate Owned Fair Value [Roll Forward] | ||||
Transfers in at fair value | 744 | 2,343 | 1,334 | 2,983 |
Change in valuation allowance | 23 | (17) | 21 | (97) |
Valuation allowance
|
||||
Real Estate Owned Valuation Allowance [Roll Forward] | ||||
Beginning balance | 59 | 1,156 | 57 | 1,076 |
Sale of property | (93) | (9) | (125) | (24) |
Valuation adjustment | 70 | 26 | 104 | 121 |
Ending balance | $ 36 | $ 1,173 | $ 36 | $ 1,173 |
SECURITIES - Carrying Amount and Fair Value of Held to Maturity Debt Securities and Fair Value of Available-for-Sale Debt Securities (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Available For Sale And Held To Maturity Securities [Line Items] | ||
Held to maturity, Carrying Amount, Due less than one year | $ 1,494 | |
Held to maturity, Carrying Amount, Due from one to five years | 6,681 | |
Held to maturity, Carrying Amount, Due from five to ten years | 15,560 | |
Held to maturity, Carrying Amount, Due after ten years | 45,663 | |
Held to maturity, Carrying Amount, Total | 330,969 | 360,554 |
Held to maturity, Fair Value, Due less than one year | 1,499 | |
Held to maturity, Fair Value, Due from one to five years | 7,103 | |
Held to maturity, Fair Value, Due from five to ten years | 16,486 | |
Held to maturity, Fair Value, Due after ten years | 45,570 | |
Fair value of securities held to maturity | 339,455 | 376,153 |
Available for sale, Fair Value, Due in one year or less | 0 | |
Available for sale, Fair Value, Due from one to five years | 3,082 | |
Available for sale, Fair Value, Due from five to ten years | 0 | |
Available for sale, Fair Value, Due after ten years | 0 | |
Securities available for sale, at fair value | 287,834 | 287,034 |
Agency residential mortgage-backed securities
|
||
Available For Sale And Held To Maturity Securities [Line Items] | ||
Held to maturity, Carrying Amount, Total | 95,230 | 114,388 |
Fair value of securities held to maturity | 98,990 | 120,712 |
Securities available for sale, at fair value | 197,903 | 166,100 |
Agency commercial Mortgage Backed Securities [Member]
|
||
Available For Sale And Held To Maturity Securities [Line Items] | ||
Held to maturity, Carrying Amount, Total | 18,335 | 9,243 |
Fair value of securities held to maturity | 18,894 | 10,546 |
Securities available for sale, at fair value | 0 | |
Agency residential collateralized mortgage securities
|
||
Available For Sale And Held To Maturity Securities [Line Items] | ||
Held to maturity, Carrying Amount, Total | 148,006 | 186,467 |
Fair value of securities held to maturity | 150,913 | 189,423 |
Securities available for sale, at fair value | $ 86,849 | $ 117,486 |
LOANS - Real Estate and Commercial and Industrial Credit Exposure Credit Risk Profile by Internally Assigned Grade (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
Jun. 30, 2012
|
||||
---|---|---|---|---|---|---|---|
Financing Receivable, Recorded Investment [Line Items] | |||||||
Commercial real estate | $ 1,004,719 | [1] | $ 839,908 | [1] | $ 760,609 | ||
Commercial and industrial | 313,031 | [1] | 278,525 | [1] | 197,671 | ||
Consumer real estate | 465,055 | [1] | 513,256 | [1] | 579,633 | ||
Pass
|
|||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||
Commercial real estate | 964,803 | [1] | 793,507 | [1] | |||
Commercial and industrial | 291,632 | [1] | 264,528 | [1] | |||
Consumer real estate | 448,497 | [1] | 497,747 | [1] | |||
Special Mention
|
|||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||
Commercial real estate | 22,568 | [1] | 17,504 | [1] | |||
Commercial and industrial | 10,002 | [1] | 645 | [1] | |||
Consumer real estate | 3,450 | [1] | 2,617 | [1] | |||
Substandard
|
|||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||
Commercial real estate | 16,452 | [1] | 27,669 | [1] | |||
Commercial and industrial | 11,397 | [1] | 13,227 | [1] | |||
Consumer real estate | 8,923 | [1] | 8,942 | [1] | |||
Doubtful
|
|||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||
Commercial real estate | 896 | [1] | 1,228 | [1] | |||
Commercial and industrial | 0 | [1] | 125 | [1] | |||
Consumer real estate | $ 4,185 | [1] | $ 3,950 | [1] | |||
|
SHARE-BASED COMPENSATION - (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Compensation cost charged to income for share-based compensation is presented below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonvested Shares for the Company's Stock Plans | A combined summary of changes in the nonvested shares for the Company's stock plans follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of activity in the stock option portion of the plans as of June 30, 2013, is presented below:
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Statement of Other Comprehensive Income [Abstract] | ||||
Net income | $ 8,174 | $ 6,492 | $ 16,232 | $ 13,564 |
Change in unrealized gains (losses) on securities available for sale | (3,031) | 1,064 | (2,705) | 1,396 |
Reclassification of amount realized through sale of securities | 0 | (116) | 177 | (116) |
Tax effect | 1,063 | (338) | 904 | (456) |
Other comprehensive income (loss), net of tax | (1,968) | 610 | (1,624) | 824 |
Comprehensive income | $ 6,206 | $ 7,102 | $ 14,608 | $ 14,388 |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (PARENTHETICAL) (USD $)
|
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared | $ 0.1 | $ 0.12 |
Net issuance of common stock under employee stock plans | 397,605 | 58,621 |
Share repurchase | 83,800 | 0 |
ESOP shares earned, shares | 92,097 | 92,097 |
EARNINGS PER COMMON SHARE
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Basic earnings per common share is computed by dividing net income (which has been adjusted for distributed and undistributed earnings to participating securities) by the weighted-average number of common shares outstanding for the period, reduced for average unallocated ESOP shares and average unvested restricted stock awards. Unvested share-based awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method described in ASC 260-10-45-60B. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock awards and options) were exercised or converted to common stock, or resulted in the issuance of common stock that then shared in the Company’s earnings. Diluted earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding for the period increased for the dilutive effect of unexercised stock options and unvested restricted stock awards. The dilutive effect of the unexercised stock options and unvested restricted stock awards is calculated under the treasury stock method utilizing the average market value of the Company’s stock for the period. A reconciliation of the numerator and denominator of the basic and diluted earnings per common share computation for the three and six months ended June 30, 2013 and 2012 is as follows:
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2013
|
|
Cash flows from operating activities | |||
Net income | $ 16,232 | $ 13,564 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 2,741 | 2,342 | |
Depreciation and amortization | 2,270 | 1,737 | |
Deferred tax expense | 188 | 2,406 | |
Premium amortization and accretion of securities, net | 3,356 | 2,723 | |
Accretion related to acquired loans | (1,705) | (1,382) | |
(Gain) loss on sale of available for sale securities | 177 | (116) | |
ESOP compensation expense | 1,857 | 1,387 | |
Share-based compensation expense | 1,422 | 1,039 | |
Net gain on loans held for sale | 0 | (4,406) | |
Loans originated or purchased for sale | (7,710,481) | (6,420,681) | |
Proceeds from sale of loans held for sale | 7,866,973 | 6,333,802 | |
FHLB stock dividends | (60) | (58) | |
Bank-owned life insurance (BOLI) income | (315) | (274) | |
Gain (loss) on sale and disposition of assets | (674) | 137 | |
Impairment of goodwill | 0 | 818 | |
Net change in deferred loan fees | 371 | 109 | |
Net change in accrued interest receivable | (199) | 909 | |
Net change in other assets | 10,230 | (2,787) | |
Net change in other liabilities | 393 | 1,138 | |
Net cash provided by (used in) operating activities | 192,776 | (67,593) | |
Available-for-sale securities: | |||
Maturities, prepayments and calls | 500,103 | 353,732 | |
Purchases | (515,941) | (316,139) | |
Proceeds from sale of AFS securities | 10,614 | 15,165 | |
Held-to-maturity securities: | |||
Maturities, prepayments and calls | 59,917 | 68,600 | |
Purchases | (31,969) | 0 | |
Net change in loans held for investment | (145,566) | (88,675) | |
Redemption (purchase) of FHLB and Federal Reserve Bank stock | 3,610 | (5,124) | |
Cash and cash equivalents acquired in acquisition of Highlands Bancshares, Inc. | 98,469 | 0 | |
Purchases of premises and equipment | (1,755) | (874) | |
Proceeds from sale of assets | 3,249 | 2,106 | |
Net cash provided by (used in) investing activities | (117,738) | 127,260 | |
Cash flows from financing activities | |||
Net change in deposits | 11,374 | (112,549) | |
Proceeds from FHLB advances | 600,000 | 601,000 | |
Repayments on FHLB advances | (692,000) | (472,296) | |
Share repurchase | (1,554) | 0 | |
Repayments of other borrowings | 0 | (48,530) | |
Payment of dividends | (3,991) | (4,377) | |
Proceeds from stock option exercises | 221 | 715 | |
Net cash used in financing activities | (85,950) | (36,037) | |
Net change in cash and cash equivalents | (10,912) | 23,630 | |
Beginning cash and cash equivalents | 68,696 | 46,348 | 68,696 |
Ending cash and cash equivalents | 57,784 | 69,978 | |
Supplemental cash flow information: | |||
Interest paid | 9,817 | 11,749 | |
Income taxes paid | 5,007 | 9,790 | |
Supplemental noncash disclosures: | |||
Transfers from loans to other real estate owned | 1,338 | 997 | |
Net noncash liabilities assumed in stock acquisition of Highlands Bancshares, Inc. | $ 0 | $ 12,355 |
LOANS - Information on Loans Modified as Troubled Debt Restructuring by Category (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | $ 585 | $ 255 | $ 1,373 | $ 971 |
Commercial Real Estate
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 109 | 0 | 799 | 0 |
Commercial and Industrial
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 39 | 80 | ||
Consumer Real Estate
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 337 | 255 | 337 | 891 |
Other Consumer
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 139 | 0 | 198 | 0 |
Principal Deferrals
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 131 | 255 | 888 | 283 |
Principal Deferrals | Commercial Real Estate
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 62 | 0 | 752 | 0 |
Principal Deferrals | Commercial and Industrial
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 8 | 28 | ||
Principal Deferrals | Consumer Real Estate
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 0 | 255 | 0 | 255 |
Principal Deferrals | Other Consumer
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 69 | 0 | 128 | 0 |
Combination Of Rate And Maturity
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 188 | 0 | 219 | 383 |
Combination Of Rate And Maturity | Commercial Real Estate
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 47 | 0 | 47 | 0 |
Combination Of Rate And Maturity | Commercial and Industrial
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 31 | 0 | ||
Combination Of Rate And Maturity | Consumer Real Estate
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 73 | 0 | 73 | 383 |
Combination Of Rate And Maturity | Other Consumer
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 68 | 0 | 68 | 0 |
Other Member
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 266 | 0 | 266 | 305 |
Other Member | Commercial Real Estate
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 0 | 0 | 0 | 0 |
Other Member | Commercial and Industrial
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 0 | 52 | ||
Other Member | Consumer Real Estate
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | 264 | 0 | 264 | 253 |
Other Member | Other Consumer
|
||||
Financing Receivable, Modifications [Line Items] | ||||
Financing Receivable, Modification, Recorded Investment | $ 2 | $ 0 | $ 2 | $ 0 |
EARNINGS PER COMMON SHARE - (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Numerator: | ||||
Net income | $ 8,174 | $ 6,492 | $ 16,232 | $ 13,564 |
Distributed and undistributed earnings to participating securities | (116) | (10) | (180) | (25) |
Income available to common shareholders | 8,058 | 6,482 | 16,052 | 13,539 |
Denominator: | ||||
Weighted average common shares outstanding | 39,940,712 | 39,215,084 | 39,837,010 | 36,458,007 |
Less: Average unallocated ESOP shares | (1,856,135) | (2,040,330) | (1,879,030) | (2,063,354) |
Average unvested restricted stock awards | (539,527) | (58,432) | (420,517) | (63,617) |
Average shares for basic earnings per share | 37,545,050 | 37,116,322 | 37,537,463 | 34,331,036 |
Basic earnings per common share (in dollars per share) | $ 0.21 | $ 0.17 | $ 0.43 | $ 0.39 |
Numerator: | ||||
Income available to common shareholders | $ 8,058 | $ 6,482 | $ 16,052 | $ 13,539 |
Denominator: | ||||
Average shares for basic earnings per share | 37,545,050 | 37,116,322 | 37,537,463 | 34,331,036 |
Dilutive effect of share-based compensation plan | 147,463 | 119,891 | 147,231 | 118,598 |
Average shares for diluted earnings per share | 37,692,513 | 37,236,213 | 37,684,694 | 34,449,634 |
Diluted earnings per common share | $ 0.21 | $ 0.17 | $ 0.43 | $ 0.39 |
Share awards excluded in the computation of diluted earnings per share because the exercise price was greater than the common stock average market price and were, therefore antidilutive | 1,212,900 | 209,671 | 1,235,050 | 252,521 |
SECURITIES - Summarized Information Regarding Pledged Securities (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Schedule of Held-to-maturity Securities [Line Items] | ||
Secured Debt, Repurchase Agreements | $ 25,000 | $ 25,000 |
Carrying value of securities pledged on above funds | 295,626 | 309,225 |
Federal Reserve Bank primary credit - collateral value
|
||
Schedule of Held-to-maturity Securities [Line Items] | ||
Liabilities Secured By Pledged Securities | 84,424 | 105,807 |
Demand Deposits [Member]
|
||
Schedule of Held-to-maturity Securities [Line Items] | ||
Liabilities Secured By Pledged Securities | 3,441 | 4,318 |
Certificates of Deposit [Member]
|
||
Schedule of Held-to-maturity Securities [Line Items] | ||
Liabilities Secured By Pledged Securities | 134,587 | 134,846 |
Demand Deposits [Member]
|
||
Schedule of Held-to-maturity Securities [Line Items] | ||
Liabilities Secured By Pledged Securities | $ 15,313 | $ 19,972 |
LOANS - Impaired Loans (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||||
Unpaid Contractual Principal Balance | $ 27,824 | [1] | $ 27,824 | [1] | $ 34,410 | [1] | ||||||
Recorded Investment With No Allowance | 8,380 | [1] | 8,380 | [1] | 12,986 | [1] | ||||||
Recorded Investment With Allowance | 16,417 | [1] | 16,417 | [1] | 18,433 | [1] | ||||||
Total Recorded Investment | 24,797 | [1] | 24,797 | [1] | 31,419 | [1] | ||||||
Related Allowance | 3,896 | [1] | 3,896 | [1] | 4,369 | [1] | ||||||
Average Recorded Investment | 29,214 | [1] | 25,753 | [1] | 30,093 | [1] | 25,959 | [1] | ||||
Interest Income Recognized | 84 | [1] | 53 | [1] | 163 | [1] | 127 | [1] | ||||
Commercial Real Estate
|
||||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||||
Unpaid Contractual Principal Balance | 9,243 | [1] | 9,243 | [1] | 17,768 | [1] | ||||||
Recorded Investment With No Allowance | 936 | [1] | 936 | [1] | 4,383 | [1] | ||||||
Recorded Investment With Allowance | 7,689 | [1] | 7,689 | [1] | 12,609 | [1] | ||||||
Total Recorded Investment | 8,625 | [1] | 8,625 | [1] | 16,992 | [1] | ||||||
Related Allowance | 1,204 | [1] | 1,204 | [1] | 2,756 | [1] | ||||||
Average Recorded Investment | 13,340 | [1] | 19,018 | [1] | 14,754 | [1] | 19,052 | [1] | ||||
Interest Income Recognized | 62 | [1] | 43 | [1] | 124 | [1] | 95 | [1] | ||||
Commercial and Industrial
|
||||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||||
Unpaid Contractual Principal Balance | 9,200 | [1] | 9,200 | [1] | 7,632 | [1] | ||||||
Recorded Investment With No Allowance | 1,296 | [1] | 1,296 | [1] | 3,284 | [1] | ||||||
Recorded Investment With Allowance | 5,749 | [1] | 5,749 | [1] | 2,325 | [1] | ||||||
Total Recorded Investment | 7,045 | [1] | 7,045 | [1] | 5,609 | [1] | ||||||
Related Allowance | 1,650 | [1] | 1,650 | [1] | 630 | [1] | ||||||
Average Recorded Investment | 6,924 | [1] | 371 | [1] | 6,366 | [1] | 455 | [1] | ||||
Interest Income Recognized | 3 | [1] | 1 | [1] | 6 | [1] | 1 | [1] | ||||
Consumer Real Estate
|
||||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||||
Unpaid Contractual Principal Balance | 8,897 | [1] | 8,897 | [1] | 8,672 | [1] | ||||||
Recorded Investment With No Allowance | 6,148 | [1] | 6,148 | [1] | 5,291 | [1] | ||||||
Recorded Investment With Allowance | 2,513 | [1] | 2,513 | [1] | 3,198 | [1] | ||||||
Total Recorded Investment | 8,661 | [1] | 8,661 | [1] | 8,489 | [1] | ||||||
Related Allowance | 1,012 | [1] | 1,012 | [1] | 960 | [1] | ||||||
Average Recorded Investment | 8,517 | [1] | 6,238 | [1] | 8,567 | [1] | 6,307 | [1] | ||||
Interest Income Recognized | 19 | [1] | 9 | [1] | 33 | [1] | 31 | [1] | ||||
Other Consumer
|
||||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||||
Unpaid Contractual Principal Balance | 484 | [1] | 484 | [1] | 338 | [1] | ||||||
Recorded Investment With No Allowance | 0 | [1] | 0 | [1] | 28 | [1] | ||||||
Recorded Investment With Allowance | 466 | [1] | 466 | [1] | 301 | [1] | ||||||
Total Recorded Investment | 466 | [1] | 466 | [1] | 329 | [1] | ||||||
Related Allowance | 30 | [1] | 30 | [1] | 23 | [1] | ||||||
Average Recorded Investment | 433 | [1] | 126 | [1] | 406 | [1] | 145 | [1] | ||||
Interest Income Recognized | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | ||||
|
INCOME TAXES - (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
|
Summary Of Net Deferred Tax Assets [Line Items] | ||
Net deferred tax assets | $ 14,453 | $ 14,026 |
Estimated Annual Effective Tax Rate | 34% to 35% | |
Minimum
|
||
Summary Of Net Deferred Tax Assets [Line Items] | ||
Estimated annual effective tax rate | 34.00% | |
Maximum
|
||
Summary Of Net Deferred Tax Assets [Line Items] | ||
Estimated annual effective tax rate | 35.00% |