INDEPENDENT BANK CORPORATION
|
Michigan | 38-2032782 | |
(State or jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
230 West Main Street, P.O. Box 491, Ionia, Michigan 48846 |
NONE |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer o | Smaller reporting company x |
Common stock, no par value | 9,479,853 | |
Class | Outstanding at May 8, 2013 | |
Number(s) | ||
PART I -
|
Financial Information
|
|
Item 1.
|
3
|
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4
|
||
5
|
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6
|
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7
|
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8-60
|
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Item 2.
|
61-89
|
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Item 3.
|
90
|
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Item 4.
|
90
|
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PART II -
|
Other Information
|
|
Item 1A
|
91
|
|
Item 2.
|
91
|
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Item 3b.
|
92
|
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Item 6.
|
92
|
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●
|
our ability to successfully raise new equity capital, effect a conversion of our outstanding convertible preferred stock held by the U.S. Treasury into our common stock, exit the Troubled Asset Relief Program (“TARP”), bring quarterly payments on our trust preferred securities current, and otherwise implement our capital plan;
|
|
●
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the failure of assumptions underlying the establishment of and provisions made to our allowance for loan losses;
|
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●
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the timing and pace of an economic recovery in Michigan and the United States in general, including regional and local real estate markets;
|
|
●
|
the ability of our Bank to remain well-capitalized;
|
|
●
|
the failure of assumptions underlying our estimate of probable incurred losses from vehicle service contract payment plan counterparty contingencies, including our assumptions regarding future cancellations of vehicle service contracts, the value to us of collateral that may be available to recover funds due from our counterparties, and our ability to enforce the contractual obligations of our counterparties to pay amounts owing to us;
|
|
●
|
further adverse developments in the vehicle service contract industry;
|
|
●
|
potential limitations on our ability to access and rely on wholesale funding sources;
|
|
●
|
the risk that sales of our common stock could trigger a reduction in the amount of net operating loss carryforwards that we may be able to utilize for income tax purposes;
|
|
●
|
the continued services of our management team; and
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●
|
implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act or other new legislation, which may have significant effects on us and the financial services industry, the exact nature and extent of which cannot be determined at this time.
|
Part I - Item 1.
|
INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
|
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
(unaudited)
|
||||||||
Assets
|
(In thousands, except share amounts)
|
|||||||
Cash and due from banks
|
$ | 51,489 | $ | 55,487 | ||||
Interest bearing deposits
|
170,141 | 124,295 | ||||||
Cash and Cash Equivalents
|
221,630 | 179,782 | ||||||
Interest bearing deposits - time
|
6,973 | - | ||||||
Trading securities
|
201 | 110 | ||||||
Securities available for sale
|
283,934 | 208,413 | ||||||
Federal Home Loan Bank and Federal Reserve Bank stock, at cost
|
20,838 | 20,838 | ||||||
Loans held for sale, carried at fair value
|
37,554 | 47,487 | ||||||
Loans held for sale, carried at lower of cost or fair value
|
- | 3,292 | ||||||
Loans
|
||||||||
Commercial
|
612,331 | 617,258 | ||||||
Mortgage
|
515,796 | 527,340 | ||||||
Installment
|
184,424 | 189,849 | ||||||
Payment plan receivables
|
78,311 | 84,692 | ||||||
Total Loans
|
1,390,862 | 1,419,139 | ||||||
Allowance for loan losses
|
(40,765 | ) | (44,275 | ) | ||||
Net Loans
|
1,350,097 | 1,374,864 | ||||||
Other real estate and repossessed assets
|
23,639 | 26,133 | ||||||
Property and equipment, net
|
47,440 | 47,016 | ||||||
Bank-owned life insurance
|
51,228 | 50,890 | ||||||
Other intangibles
|
3,772 | 3,975 | ||||||
Capitalized mortgage loan servicing rights
|
11,590 | 11,013 | ||||||
Prepaid FDIC deposit insurance assessment
|
8,851 | 9,448 | ||||||
Vehicle service contract counterparty receivables, net
|
18,270 | 18,449 | ||||||
Accrued income and other assets
|
19,330 | 22,157 | ||||||
Total Assets
|
$ | 2,105,347 | $ | 2,023,867 | ||||
Liabilities and Shareholders' Equity
|
||||||||
Deposits
|
||||||||
Non-interest bearing
|
$ | 504,614 | $ | 488,126 | ||||
Savings and interest-bearing checking
|
919,098 | 871,238 | ||||||
Reciprocal
|
45,852 | 33,242 | ||||||
Retail time
|
366,635 | 372,340 | ||||||
Brokered time
|
14,594 | 14,591 | ||||||
Total Deposits
|
1,850,793 | 1,779,537 | ||||||
Other borrowings
|
17,630 | 17,625 | ||||||
Subordinated debentures
|
50,175 | 50,175 | ||||||
Vehicle service contract counterparty payables
|
6,443 | 7,725 | ||||||
Accrued expenses and other liabilities
|
36,221 | 33,830 | ||||||
Total Liabilities
|
1,961,262 | 1,888,892 | ||||||
Shareholders' Equity
|
||||||||
Convertible preferred stock, no par value, 200,000 shares authorized; 74,426 shares issued and outstanding at March 31, 2013 and December 31, 2012; liquidation preference: $86,191 at March 31,2013 and $85,150 at December 31, 2012
|
85,299 | 84,204 | ||||||
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 9,473,462 shares at March 31, 2013 and 9,093,732 shares at December 31, 2012
|
253,437 | 251,237 | ||||||
Accumulated deficit
|
(187,698 | ) | (192,408 | ) | ||||
Accumulated other comprehensive loss
|
(6,953 | ) | (8,058 | ) | ||||
Total Shareholders' Equity
|
144,085 | 134,975 | ||||||
Total Liabilities and Shareholders' Equity
|
$ | 2,105,347 | $ | 2,023,867 |
Three Months Ended
|
||||||||
March 31,
|
March 31,
|
|||||||
2013
|
2012
|
|||||||
(unaudited)
|
||||||||
Interest Income
|
(In thousands)
|
|||||||
Interest and fees on loans
|
$ | 20,710 | $ | 24,346 | ||||
Interest on securities
|
||||||||
Taxable
|
670 | 658 | ||||||
Tax-exempt
|
238 | 296 | ||||||
Other investments
|
332 | 396 | ||||||
Total Interest Income
|
21,950 | 25,696 | ||||||
Interest Expense
|
||||||||
Deposits
|
1,529 | 2,424 | ||||||
Other borrowings
|
865 | 1,172 | ||||||
Total Interest Expense
|
2,394 | 3,596 | ||||||
Net Interest Income
|
19,556 | 22,100 | ||||||
Provision for loan losses
|
(691 | ) | 5,131 | |||||
Net Interest Income After Provision for Loan Losses
|
20,247 | 16,969 | ||||||
Non-interest Income
|
||||||||
Service charges on deposit accounts
|
3,406 | 4,201 | ||||||
Interchange income
|
1,757 | 2,322 | ||||||
Net gains (losses) on assets
|
||||||||
Mortgage loans
|
3,637 | 3,860 | ||||||
Securities
|
84 | 684 | ||||||
Other than temporary impairment loss on securities
|
||||||||
Total impairment loss
|
- | (177 | ) | |||||
Loss recognized in other comprehensive loss
|
- | - | ||||||
Net impairment loss recognized in earnings
|
- | (177 | ) | |||||
Mortgage loan servicing
|
622 | 736 | ||||||
Title insurance fees
|
484 | 508 | ||||||
Increase in fair value of U.S. Treasury warrant
|
(1,045 | ) | (154 | ) | ||||
Other
|
2,123 | 2,604 | ||||||
Total Non-interest Income
|
11,068 | 14,584 | ||||||
Non-interest Expense
|
||||||||
Compensation and employee benefits
|
11,307 | 12,482 | ||||||
Occupancy, net
|
2,424 | 2,716 | ||||||
Loan and collection
|
2,226 | 2,890 | ||||||
Data processing
|
1,916 | 1,933 | ||||||
Furniture, fixtures and equipment
|
1,032 | 1,196 | ||||||
Communications
|
780 | 973 | ||||||
Legal and professional
|
692 | 897 | ||||||
Provision for loss reimbursement on sold loans
|
663 | 432 | ||||||
Net losses on other real estate and repossessed assets
|
652 | 987 | ||||||
FDIC deposit insurance
|
630 | 857 | ||||||
Advertising
|
570 | 556 | ||||||
Interchange expense
|
410 | 406 | ||||||
Credit card and bank service fees
|
334 | 651 | ||||||
Vehicle service contract counterparty contingencies
|
127 | 471 | ||||||
Recoveries related to unfunded lending commitments
|
(19 | ) | (47 | ) | ||||
Other
|
1,729 | 649 | ||||||
Total Non-interest Expense
|
25,473 | 28,049 | ||||||
Income Before Income Tax
|
5,842 | 3,504 | ||||||
Income tax expense
|
35 | - | ||||||
Net Income
|
$ | 5,807 | $ | 3,504 | ||||
Preferred stock dividends and discount accretion
|
1,095 | 1,056 | ||||||
Net Income Applicable to Common Stock
|
$ | 4,712 | $ | 2,448 | ||||
Net Income Per Common Share
|
||||||||
Basic
|
$ | 0.51 | $ | 0.29 | ||||
Diluted
|
0.27 | 0.07 | ||||||
Dividends Per Common Share
|
||||||||
Declared
|
$ | .00 | $ | .00 | ||||
Paid
|
.00 | .00 |
Three months ended March 31,
|
||||||||
2013
|
2012
|
|||||||
(unaudited)
|
||||||||
(In thousands)
|
||||||||
Net income
|
$ | 5,807 | $ | 3,504 | ||||
Other comprehensive income (loss), before tax
|
||||||||
Available for sale securities
|
||||||||
Unrealized gain (loss) arising during period
|
974 | (1,037 | ) | |||||
Change in unrealized losses for which a portion of other than temporary impairment has been recognized in earnings
|
33 | 129 | ||||||
Reclassification adjustment for other than temporary impairment included in earnings
|
- | 177 | ||||||
Reclassification adjustments for (gains) losses included in earnings
|
7 | (692 | ) | |||||
Unrealized gains (losses) recognized in other comprehensive income on available for sale securities
|
1,014 | (1,423 | ) | |||||
Income tax expense
|
- | - | ||||||
Unrealized gains (losses) recognized in other comprehensive income on available for sale securities, net of tax
|
1,014 | (1,423 | ) | |||||
Derivative instruments
|
||||||||
Unrealized loss arising during period
|
(3 | ) | (51 | ) | ||||
Reclassification adjustment for expense recognized in earnings
|
94 | 185 | ||||||
Reclassfication adjustment for accretion on settled derivatives
|
- | 145 | ||||||
Unrealized gains recognized in other comprehensive income on derivative instruments
|
91 | 279 | ||||||
Income tax expense
|
- | - | ||||||
Unrealized gains recognized in other comprehensive income on derivative instruments, net of tax
|
91 | 279 | ||||||
Other comprehensive income (loss)
|
1,105 | (1,144 | ) | |||||
Comprehensive income
|
$ | 6,912 | $ | 2,360 |
Three months ended March 31,
|
||||||||
2013
|
2012
|
|||||||
(unaudited - In thousands)
|
||||||||
Net Income
|
$ | 5,807 | $ | 3,504 | ||||
Adjustments to Reconcile Net Income to Net Cash from Operating Activities
|
||||||||
Proceeds from sales of loans held for sale
|
131,495 | 116,422 | ||||||
Disbursements for loans held for sale
|
(117,925 | ) | (108,082 | ) | ||||
Provision for loan losses
|
(691 | ) | 5,131 | |||||
Deferred loan fees
|
133 | (97 | ) | |||||
Depreciation, amortization of intangible assets and premiums and accretion of discounts on securities and loans
|
(1,040 | ) | (1,313 | ) | ||||
Net gain on sale of property and equipment
|
(1 | ) | - | |||||
Net gains on mortgage loans
|
(3,637 | ) | (3,860 | ) | ||||
Net gains on securities
|
(84 | ) | (684 | ) | ||||
Securities impairment recognized in earnings
|
- | 177 | ||||||
Net losses on other real estate and repossessed assets
|
652 | 987 | ||||||
Vehicle service contract counterparty contingencies
|
127 | 471 | ||||||
Share based compensation
|
236 | 45 | ||||||
Increase (decrease) in accrued income and other assets
|
2,573 | (934 | ) | |||||
Increase in accrued expenses and other liabilities
|
823 | 1,576 | ||||||
Total Adjustments
|
12,661 | 9,839 | ||||||
Net Cash from Operating Activities
|
18,468 | 13,343 | ||||||
Cash Flow used in Investing Activities
|
||||||||
Proceeds from the sale of securities available for sale
|
1,800 | 9,206 | ||||||
Proceeds from the maturity of securities available for sale
|
22,820 | 545 | ||||||
Principal payments received on securities available for sale
|
6,487 | 4,261 | ||||||
Purchases of securities available for sale
|
(103,259 | ) | (150,607 | ) | ||||
Purchases of interest bearing deposits
|
(6,986 | ) | - | |||||
Net cash from branch sale
|
3,292 | - | ||||||
Net decrease in portfolio loans (loans originated, net of principal payments)
|
26,729 | 34,293 | ||||||
Proceeds from the collection of vehicle service contract counterparty receivables
|
169 | 210 | ||||||
Proceeds from the sale of other real estate and repossessed assets
|
3,511 | 5,298 | ||||||
Proceeds from the sale of property and equipment, net
|
3 | - | ||||||
Capital expenditures
|
(2,119 | ) | (2,827 | ) | ||||
Net Cash used in Investing Activities
|
(47,553 | ) | (99,621 | ) | ||||
Cash Flow from Financing Activities
|
||||||||
Net increase in total deposits
|
71,256 | 98,187 | ||||||
Net increase in other borrowings
|
5 | 6 | ||||||
Proceeds from Federal Home Loan Bank advances
|
- | 12,000 | ||||||
Payments of Federal Home Loan Bank advances
|
- | (12,354 | ) | |||||
Net increase (decrease) in vehicle service contract counterparty payables
|
(1,282 | ) | 180 | |||||
Proceeds from issuance of common stock
|
954 | - | ||||||
Net Cash from Financing Activities
|
70,933 | 98,019 | ||||||
Net Increase in Cash and Cash Equivalents
|
41,848 | 11,741 | ||||||
Cash and Cash Equivalents at Beginning of Period
|
179,782 | 341,108 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 221,630 | $ | 352,849 | ||||
Cash paid during the period for
|
||||||||
Interest
|
$ | 1,810 | $ | 3,034 | ||||
Income taxes
|
6 | 131 | ||||||
Transfers to other real estate and repossessed assets
|
1,669 | 3,161 | ||||||
Transfer of payment plan receivables to vehicle service contract counterparty receivables
|
79 | 368 | ||||||
Purchase of securities available for sale not yet settled
|
2,565 | 10,817 |
Three months ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
(unaudited)
|
||||||||
(In thousands)
|
||||||||
Balance at beginning of period
|
$ | 134,975 | $ | 102,627 | ||||
Net income
|
5,807 | 3,504 | ||||||
Issuance of common stock
|
1,962 | - | ||||||
Share based compensation
|
236 | 45 | ||||||
Net change in accumulated other comprehensive loss, net of related tax effect
|
1,105 | (1,144 | ) | |||||
Balance at end of period
|
$ | 144,085 | $ | 105,032 |
1.
|
Preparation of Financial Statements
|
2.
|
New Accounting Standards
|
3.
|
Securities
|
Amortized
|
Unrealized
|
|||||||||||||||
Cost
|
Gains
|
Losses
|
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
March 31, 2013
|
||||||||||||||||
U.S. agency
|
$ | 8,120 | $ | - | $ | 14 | $ | 8,106 | ||||||||
U.S. agency residential mortgage-backed
|
192,538 | 1,536 | 67 | 194,007 | ||||||||||||
Private label residential mortgage-backed
|
8,573 | 1 | 1,009 | 7,565 | ||||||||||||
Obligations of states and political subdivisions
|
70,318 | 828 | 243 | 70,903 | ||||||||||||
Trust preferred
|
2,898 | - | 533 | 2,365 | ||||||||||||
Corporate
|
989 | - | 1 | 988 | ||||||||||||
Total
|
$ | 283,436 | $ | 2,365 | $ | 1,867 | $ | 283,934 | ||||||||
December 31, 2012
|
||||||||||||||||
U.S. agency
|
$ | 30,620 | $ | 70 | $ | 23 | $ | 30,667 | ||||||||
U.S. agency residential mortgage-backed
|
126,151 | 1,264 | 3 | 127,412 | ||||||||||||
Private label residential mortgage-backed
|
9,070 | - | 876 | 8,194 | ||||||||||||
Obligations of states and political subdivisions
|
38,384 | 736 | 69 | 39,051 | ||||||||||||
Trust preferred
|
4,704 | - | 1,615 | 3,089 | ||||||||||||
Total
|
$ | 208,929 | $ | 2,070 | $ | 2,586 | $ | 208,413 |
Less Than Twelve Months
|
Twelve Months or More
|
Total
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
Fair Value
|
Losses
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
March 31, 2013
|
||||||||||||||||||||||||
U.S. agency
|
$ | 8,106 | $ | 14 | $ | - | $ | - | $ | 8,106 | $ | 14 | ||||||||||||
U.S. agency residential mortgage-backed
|
60,230 | 66 | 236 | 1 | 60,466 | 67 | ||||||||||||||||||
Private label residential mortgage-backed
|
- | - | 7,323 | 1,009 | 7,323 | 1,009 | ||||||||||||||||||
Obligations of states and political subdivisions
|
23,506 | 213 | 1,228 | 30 | 24,734 | 243 | ||||||||||||||||||
Trust preferred
|
- | - | 2,365 | 533 | 2,365 | 533 | ||||||||||||||||||
Corporate
|
988 | 1 | - | - | 988 | 1 | ||||||||||||||||||
Total
|
$ | 92,830 | $ | 294 | $ | 11,152 | $ | 1,573 | $ | 103,982 | $ | 1,867 | ||||||||||||
December 31, 2012
|
||||||||||||||||||||||||
U.S. agency
|
$ | 8,097 | $ | 23 | $ | - | $ | - | $ | 8,097 | $ | 23 | ||||||||||||
U.S. agency residential mortgage-backed
|
- | - | 457 | 3 | 457 | 3 | ||||||||||||||||||
Private label residential mortgage-backed
|
- | - | 8,192 | 876 | 8,192 | 876 | ||||||||||||||||||
Obligations of states and political subdivisions
|
7,384 | 69 | - | - | 7,384 | 69 | ||||||||||||||||||
Trust preferred
|
- | - | 3,089 | 1,615 | 3,089 | 1,615 | ||||||||||||||||||
Total
|
$ | 15,481 | $ | 92 | $ | 11,738 | $ | 2,494 | $ | 27,219 | $ | 2,586 |
March 31, 2013
|
December 31, 2012
|
|||||||||||||||
Net
|
Net
|
|||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||
Value
|
Gain (Loss)
|
Value
|
Gain (Loss)
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Private label residential mortgage-backed
|
||||||||||||||||
Jumbo
|
$ | 5,274 | $ | (683 | ) | $ | 6,041 | $ | (594 | ) | ||||||
Alt-A
|
2,049 | (326 | ) | 2,153 | (282 | ) |
March 31, 2013
|
December 31, 2012
|
|||||||||||||||
Net
|
Net
|
|||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||
Value
|
Gain (Loss)
|
Value
|
Gain (Loss)
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Trust preferred securities
|
||||||||||||||||
Rated issues
|
$ | 1,618 | $ | (280 | ) | $ | 1,581 | $ | (316 | ) | ||||||
Unrated issues - no OTTI
|
747 | (253 | ) | 1,508 | (1,299 | ) |
2013
|
2012
|
|||||||
(In thousands)
|
||||||||
Balance at beginning of year
|
$ | 1,809 | $ | 1,470 | ||||
Additions to credit losses on securities for which no previous OTTI was recognized
|
- | - | ||||||
Increases to credit losses on securities for which OTTI was
|
||||||||
previously recognized
|
- | 177 | ||||||
Total
|
$ | 1,809 | $ | 1,647 |
Amortized
|
Fair
|
|||||||
Cost
|
Value
|
|||||||
(In thousands)
|
||||||||
Maturing within one year
|
$ | 1,976 | $ | 1,975 | ||||
Maturing after one year but within five years
|
19,358 | 19,514 | ||||||
Maturing after five years but within ten years
|
20,595 | 20,890 | ||||||
Maturing after ten years
|
40,396 | 39,983 | ||||||
82,325 | 82,362 | |||||||
U.S. agency residential mortgage-backed
|
192,538 | 194,007 | ||||||
Private label residential mortgage-backed
|
8,573 | 7,565 | ||||||
Total
|
$ | 283,436 | $ | 283,934 |
Realized
|
||||||||||||
Proceeds
|
Gains
|
Losses(1)
|
||||||||||
(In thousands)
|
||||||||||||
2013
|
$ | 1,800 | $ | - | $ | 7 | ||||||
2012
|
9,206 | 692 | - |
(1)
|
Losses in 2013 and 2012 exclude zero and $0.177 million, respectively of credit related OTTI recognizedin earnings.
|
4.
|
Loans
|
An analysis of the allowance for loan losses by portfolio segment for the three months ended March 31, follows:
|
Payment
|
||||||||||||||||||||||||
Plan
|
||||||||||||||||||||||||
Commercial
|
Mortgage
|
Installment
|
Receivables
|
Unallocated
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
2013
|
||||||||||||||||||||||||
Balance at beginning of period
|
$ | 11,402 | $ | 21,447 | $ | 3,378 | $ | 144 | $ | 7,904 | $ | 44,275 | ||||||||||||
Additions (deductions)
|
||||||||||||||||||||||||
Provision for loan losses
|
(272 | ) | (139 | ) | 375 | (4 | ) | (651 | ) | (691 | ) | |||||||||||||
Recoveries credited to allowance
|
536 | 622 | 286 | 7 | - | 1,451 | ||||||||||||||||||
Loans charged against the allowance
|
(1,608 | ) | (1,767 | ) | (877 | ) | (18 | ) | - | (4,270 | ) | |||||||||||||
Balance at end of period
|
$ | 10,058 | $ | 20,163 | $ | 3,162 | $ | 129 | $ | 7,253 | $ | 40,765 | ||||||||||||
2012
|
||||||||||||||||||||||||
Balance at beginning of period
|
$ | 18,183 | $ | 22,885 | $ | 6,146 | $ | 197 | $ | 11,473 | $ | 58,884 | ||||||||||||
Additions (deductions)
|
||||||||||||||||||||||||
Provision for loan losses
|
1,496 | 4,235 | 289 | 30 | (919 | ) | 5,131 | |||||||||||||||||
Recoveries credited to allowance
|
1,006 | 548 | 326 | - | - | 1,880 | ||||||||||||||||||
Loans charged against the allowance
|
(4,244 | ) | (4,397 | ) | (1,227 | ) | (21 | ) | - | (9,889 | ) | |||||||||||||
Balance at end of period
|
$ | 16,441 | $ | 23,271 | $ | 5,534 | $ | 206 | $ | 10,554 | $ | 56,006 |
Payment
|
||||||||||||||||||||||||
Plan
|
||||||||||||||||||||||||
Commercial
|
Mortgage
|
Installment
|
Receivables
|
Unallocated
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
March 31, 2013
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 5,936 | $ | 12,370 | $ | 1,494 | $ | - | $ | - | $ | 19,800 | ||||||||||||
Collectively evaluated for impairment
|
4,122 | 7,793 | 1,668 | 129 | 7,253 | 20,965 | ||||||||||||||||||
Total ending allowance balance
|
$ | 10,058 | $ | 20,163 | $ | 3,162 | $ | 129 | $ | 7,253 | $ | 40,765 | ||||||||||||
Loans
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 56,309 | $ | 85,489 | $ | 7,349 | $ | - | $ | 149,147 | ||||||||||||||
Collectively evaluated for impairment
|
557,711 | 432,744 | 177,819 | 78,311 | 1,246,585 | |||||||||||||||||||
Total loans recorded investment
|
614,020 | 518,233 | 185,168 | 78,311 | 1,395,732 | |||||||||||||||||||
Accrued interest included in recorded investment
|
1,689 | 2,437 | 744 | - | 4,870 | |||||||||||||||||||
Total loans
|
$ | 612,331 | $ | 515,796 | $ | 184,424 | $ | 78,311 | $ | 1,390,862 | ||||||||||||||
December 31, 2012
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 6,558 | $ | 12,869 | $ | 1,582 | $ | - | $ | - | $ | 21,009 | ||||||||||||
Collectively evaluated for impairment
|
4,844 | 8,578 | 1,796 | 144 | 7,904 | 23,266 | ||||||||||||||||||
Total ending allowance balance
|
$ | 11,402 | $ | 21,447 | $ | 3,378 | $ | 144 | $ | 7,904 | $ | 44,275 | ||||||||||||
Loans
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 55,634 | $ | 88,028 | $ | 7,505 | $ | - | $ | 151,167 | ||||||||||||||
Collectively evaluated for impairment
|
563,316 | 441,703 | 183,090 | 84,692 | 1,272,801 | |||||||||||||||||||
Total loans recorded investment
|
618,950 | 529,731 | 190,595 | 84,692 | 1,423,968 | |||||||||||||||||||
Accrued interest included in recorded investment
|
1,692 | 2,391 | 746 | - | 4,829 | |||||||||||||||||||
Total loans
|
$ | 617,258 | $ | 527,340 | $ | 189,849 | $ | 84,692 | $ | 1,419,139 |
90+ and
|
Total Non-
|
|||||||||||
Still
|
Non-
|
Performing
|
||||||||||
Accruing
|
Accrual
|
Loans
|
||||||||||
(In thousands)
|
||||||||||||
March 31, 2013
|
||||||||||||
Commercial
|
||||||||||||
Income producing - real estate
|
$ | - | $ | 4,099 | $ | 4,099 | ||||||
Land, land development and construction - real estate
|
- | 2,991 | 2,991 | |||||||||
Commercial and industrial
|
56 | 4,449 | 4,505 | |||||||||
Mortgage
|
||||||||||||
1-4 family
|
3 | 9,153 | 9,156 | |||||||||
Resort lending
|
- | 3,878 | 3,878 | |||||||||
Home equity line of credit - 1st lien
|
- | 382 | 382 | |||||||||
Home equity line of credit - 2nd lien
|
- | 665 | 665 | |||||||||
Installment
|
||||||||||||
Home equity installment - 1st lien
|
- | 1,167 | 1,167 | |||||||||
Home equity installment - 2nd lien
|
- | 606 | 606 | |||||||||
Loans not secured by real estate
|
- | 396 | 396 | |||||||||
Other
|
- | - | - | |||||||||
Payment plan receivables
|
||||||||||||
Full refund
|
- | 18 | 18 | |||||||||
Partial refund
|
- | 17 | 17 | |||||||||
Other
|
- | - | - | |||||||||
Total recorded investment
|
$ | 59 | $ | 27,821 | $ | 27,880 | ||||||
Accrued interest included in recorded investment
|
$ | - | $ | - | $ | - | ||||||
December 31, 2012
|
||||||||||||
Commercial
|
||||||||||||
Income producing - real estate
|
$ | - | $ | 5,611 | $ | 5,611 | ||||||
Land, land development and construction - real estate
|
- | 4,062 | 4,062 | |||||||||
Commercial and industrial
|
- | 5,080 | 5,080 | |||||||||
Mortgage
|
||||||||||||
1-4 family
|
7 | 9,654 | 9,661 | |||||||||
Resort lending
|
- | 4,861 | 4,861 | |||||||||
Home equity line of credit - 1st lien
|
- | 529 | 529 | |||||||||
Home equity line of credit - 2nd lien
|
- | 685 | 685 | |||||||||
Installment
|
||||||||||||
Home equity installment - 1st lien
|
- | 1,278 | 1,278 | |||||||||
Home equity installment - 2nd lien
|
- | 675 | 675 | |||||||||
Loans not secured by real estate
|
- | 390 | 390 | |||||||||
Other
|
- | - | - | |||||||||
Payment plan receivables
|
||||||||||||
Full refund
|
- | 57 | 57 | |||||||||
Partial refund
|
- | 38 | 38 | |||||||||
Other
|
- | 9 | 9 | |||||||||
Total recorded investment
|
$ | 7 | $ | 32,929 | $ | 32,936 | ||||||
Accrued interest included in recorded investment
|
$ | - | $ | - | $ | - |
Loans Past Due
|
Loans not
|
Total
|
||||||||||||||||||||||
30-59 days
|
60-89 days
|
90+ days
|
Total
|
Past Due
|
Loans
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
March 31, 2013
|
||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Income producing - real estate
|
$ | 585 | $ | 188 | $ | 1,972 | $ | 2,745 | $ | 222,460 | $ | 225,205 | ||||||||||||
Land, land development and construction - real estate
|
58 | - | 1,055 | 1,113 | 39,883 | 40,996 | ||||||||||||||||||
Commercial and industrial
|
2,080 | 1,412 | 2,447 | 5,939 | 341,880 | 347,819 | ||||||||||||||||||
Mortgage
|
||||||||||||||||||||||||
1-4 family
|
3,074 | 2,393 | 9,156 | 14,623 | 276,381 | 291,004 | ||||||||||||||||||
Resort lending
|
515 | 565 | 3,878 | 4,958 | 158,917 | 163,875 | ||||||||||||||||||
Home equity line of credit - 1st lien
|
402 | 80 | 382 | 864 | 17,871 | 18,735 | ||||||||||||||||||
Home equity line of credit - 2nd lien
|
664 | 110 | 665 | 1,439 | 43,180 | 44,619 | ||||||||||||||||||
Installment
|
||||||||||||||||||||||||
Home equity installment - 1st lien
|
469 | 399 | 1,167 | 2,035 | 29,065 | 31,100 | ||||||||||||||||||
Home equity installment - 2nd lien
|
381 | 35 | 606 | 1,022 | 37,484 | 38,506 | ||||||||||||||||||
Loans not secured by real estate
|
1,112 | 197 | 396 | 1,705 | 111,309 | 113,014 | ||||||||||||||||||
Other
|
13 | 5 | - | 18 | 2,530 | 2,548 | ||||||||||||||||||
Payment plan receivables
|
||||||||||||||||||||||||
Full refund
|
1,937 | 385 | 18 | 2,340 | 71,992 | 74,332 | ||||||||||||||||||
Partial refund
|
94 | 6 | 17 | 117 | 3,716 | 3,833 | ||||||||||||||||||
Other
|
3 | 3 | - | 6 | 140 | 146 | ||||||||||||||||||
Total recorded investment
|
$ | 11,387 | $ | 5,778 | $ | 21,759 | $ | 38,924 | $ | 1,356,808 | $ | 1,395,732 | ||||||||||||
Accrued interest included in recorded investment
|
$ | 99 | $ | 80 | $ | - | $ | 179 | $ | 4,691 | $ | 4,870 | ||||||||||||
December 31, 2012
|
||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Income producing - real estate
|
$ | 3,734 | $ | 609 | $ | 2,826 | $ | 7,169 | $ | 215,623 | $ | 222,792 | ||||||||||||
Land, land development and
|
||||||||||||||||||||||||
construction - real estate
|
336 | - | 1,176 | 1,512 | 41,750 | 43,262 | ||||||||||||||||||
Commercial and industrial
|
2,522 | 654 | 1,913 | 5,089 | 347,807 | 352,896 | ||||||||||||||||||
Mortgage
|
||||||||||||||||||||||||
1-4 family
|
4,429 | 1,115 | 9,661 | 15,205 | 279,132 | 294,337 | ||||||||||||||||||
Resort lending
|
748 | 370 | 4,861 | 5,979 | 164,414 | 170,393 | ||||||||||||||||||
Home equity line of credit - 1st lien
|
453 | 51 | 529 | 1,033 | 18,003 | 19,036 | ||||||||||||||||||
Home equity line of credit - 2nd lien
|
442 | 32 | 685 | 1,159 | 44,806 | 45,965 | ||||||||||||||||||
Installment
|
||||||||||||||||||||||||
Home equity installment - 1st lien
|
599 | 140 | 1,278 | 2,017 | 30,368 | 32,385 | ||||||||||||||||||
Home equity installment - 2nd lien
|
430 | 125 | 675 | 1,230 | 38,956 | 40,186 | ||||||||||||||||||
Loans not secured by real estate
|
899 | 259 | 390 | 1,548 | 113,751 | 115,299 | ||||||||||||||||||
Other
|
24 | 12 | - | 36 | 2,689 | 2,725 | ||||||||||||||||||
Payment plan receivables
|
||||||||||||||||||||||||
Full refund
|
2,249 | 552 | 57 | 2,858 | 77,335 | 80,193 | ||||||||||||||||||
Partial refund
|
112 | 46 | 38 | 196 | 4,119 | 4,315 | ||||||||||||||||||
Other
|
3 | 6 | 9 | 18 | 166 | 184 | ||||||||||||||||||
Total recorded investment
|
$ | 16,980 | $ | 3,971 | $ | 24,098 | $ | 45,049 | $ | 1,378,919 | $ | 1,423,968 | ||||||||||||
Accrued interest included in recorded investment
|
$ | 146 | $ | 43 | $ | - | $ | 189 | $ | 4,640 | $ | 4,829 |
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
Impaired loans with no allocated allowance
|
||||||||
TDR
|
$ | 15,688 | $ | 14,435 | ||||
Non - TDR
|
1,848 | 418 | ||||||
Impaired loans with an allocated allowance
|
||||||||
TDR - allowance based on collateral
|
14,269 | 16,231 | ||||||
TDR - allowance based on present value cash flow
|
113,502 | 112,997 | ||||||
Non - TDR - allowance based on collateral
|
3,342 | 6,580 | ||||||
Non - TDR - allowance based on present value cash flow
|
- | - | ||||||
Total impaired loans
|
$ | 148,649 | $ | 150,661 | ||||
Amount of allowance for loan losses allocated
|
||||||||
TDR - allowance based on collateral
|
$ | 4,403 | $ | 5,060 | ||||
TDR - allowance based on present value cash flow
|
14,393 | 14,462 | ||||||
Non - TDR - allowance based on collateral
|
1,004 | 1,487 | ||||||
Non - TDR - allowance based on present value cash flow
|
- | - | ||||||
Total amount of allowance for loan losses allocated
|
$ | 19,800 | $ | 21,009 |
March 31, 2013
|
December 31, 2012
|
|||||||||||||||||||||||
Unpaid
|
Unpaid
|
|||||||||||||||||||||||
Recorded
|
Principal
|
Related
|
Recorded
|
Principal
|
Related
|
|||||||||||||||||||
Investment
|
Balance
|
Allowance
|
Investment
|
Balance
|
Allowance
|
|||||||||||||||||||
With no related allowance recorded:
|
(In thousands)
|
|||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Income producing - real estate
|
$ | 4,899 | $ | 5,552 | $ | - | $ | 4,050 | $ | 4,672 | $ | - | ||||||||||||
Land, land development & construction-real estate
|
2,949 | 2,942 | - | 3,304 | 3,294 | - | ||||||||||||||||||
Commercial and industrial
|
4,670 | 5,033 | - | 2,611 | 2,592 | - | ||||||||||||||||||
Mortgage
|
||||||||||||||||||||||||
1-4 family
|
- | - | - | - | - | - | ||||||||||||||||||
Resort lending
|
35 | 163 | - | - | - | - | ||||||||||||||||||
Home equity line of credit - 1st lien
|
- | - | - | - | - | - | ||||||||||||||||||
Home equity line of credit - 2nd lien
|
- | - | - | - | - | - | ||||||||||||||||||
Installment
|
||||||||||||||||||||||||
Home equity installment - 1st lien
|
2,089 | 2,317 | - | 2,027 | 2,219 | - | ||||||||||||||||||
Home equity installment - 2nd lien
|
2,315 | 2,314 | - | 2,278 | 2,278 | - | ||||||||||||||||||
Loans not secured by real estate
|
606 | 709 | - | 610 | 681 | - | ||||||||||||||||||
Other
|
19 | 19 | - | 20 | 20 | - | ||||||||||||||||||
17,582 | 19,049 | - | 14,900 | 15,756 | - | |||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Income producing - real estate
|
22,079 | 25,586 | 2,006 | 20,628 | 24,250 | 1,822 | ||||||||||||||||||
Land, land development & construction-real estate
|
7,873 | 10,954 | 1,431 | 8,808 | 11,971 | 1,986 | ||||||||||||||||||
Commercial and industrial
|
13,839 | 15,485 | 2,499 | 16,233 | 18,564 | 2,750 | ||||||||||||||||||
Mortgage
|
||||||||||||||||||||||||
1-4 family
|
63,073 | 67,094 | 8,352 | 64,160 | 68,418 | 8,518 | ||||||||||||||||||
Resort lending
|
22,182 | 22,756 | 3,930 | 23,763 | 24,160 | 4,321 | ||||||||||||||||||
Home equity line of credit - 1st lien
|
157 | 167 | 84 | 62 | 77 | 30 | ||||||||||||||||||
Home equity line of credit - 2nd lien
|
42 | 118 | 4 | 43 | 118 | - | ||||||||||||||||||
Installment
|
||||||||||||||||||||||||
Home equity installment - 1st lien
|
969 | 996 | 563 | 1,215 | 1,240 | 610 | ||||||||||||||||||
Home equity installment - 2nd lien
|
1,138 | 1,142 | 892 | 1,161 | 1,174 | 930 | ||||||||||||||||||
Loans not secured by real estate
|
213 | 213 | 39 | 194 | 194 | 42 | ||||||||||||||||||
Other
|
- | - | - | - | - | - | ||||||||||||||||||
131,565 | 144,511 | 19,800 | 136,267 | 150,166 | 21,009 | |||||||||||||||||||
Total
|
||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Income producing - real estate
|
26,978 | 31,138 | 2,006 | 24,678 | 28,922 | 1,822 | ||||||||||||||||||
Land, land development & construction-real estate
|
10,822 | 13,896 | 1,431 | 12,112 | 15,265 | 1,986 | ||||||||||||||||||
Commercial and industrial
|
18,509 | 20,518 | 2,499 | 18,844 | 21,156 | 2,750 | ||||||||||||||||||
Mortgage
|
||||||||||||||||||||||||
1-4 family
|
63,073 | 67,094 | 8,352 | 64,160 | 68,418 | 8,518 | ||||||||||||||||||
Resort lending
|
22,217 | 22,919 | 3,930 | 23,763 | 24,160 | 4,321 | ||||||||||||||||||
Home equity line of credit - 1st lien
|
157 | 167 | 84 | 62 | 77 | 30 | ||||||||||||||||||
Home equity line of credit - 2nd lien
|
42 | 118 | 4 | 43 | 118 | - | ||||||||||||||||||
Installment
|
||||||||||||||||||||||||
Home equity installment - 1st lien
|
3,058 | 3,313 | 563 | 3,242 | 3,459 | 610 | ||||||||||||||||||
Home equity installment - 2nd lien
|
3,453 | 3,456 | 892 | 3,439 | 3,452 | 930 | ||||||||||||||||||
Loans not secured by real estate
|
819 | 922 | 39 | 804 | 875 | 42 | ||||||||||||||||||
Other
|
19 | 19 | - | 20 | 20 | - | ||||||||||||||||||
Total
|
$ | 149,147 | $ | 163,560 | $ | 19,800 | $ | 151,167 | $ | 165,922 | $ | 21,009 | ||||||||||||
Accrued interest included in recorded investment
|
$ | 498 | $ | 506 |
(1)
|
There were no impaired payment plan receivables at March 31, 2013 or December 31, 2012.
|
2013
|
2012
|
|||||||||||||||
Average
|
Interest
|
Average
|
Interest
|
|||||||||||||
Recorded
|
Income
|
Recorded
|
Income
|
|||||||||||||
Investment
|
Recognized
|
Investment
|
Recognized
|
|||||||||||||
With no related allowance recorded:
|
(In thousands)
|
|||||||||||||||
Commercial
|
||||||||||||||||
Income producing - real estate
|
$ | 4,475 | $ | 63 | $ | 3,600 | $ | 17 | ||||||||
Land, land development & construction-real estate
|
3,127 | 42 | 1,590 | - | ||||||||||||
Commercial and industrial
|
3,641 | 38 | 4,027 | 2 | ||||||||||||
Mortgage
|
||||||||||||||||
1-4 family
|
- | - | - | - | ||||||||||||
Resort lending
|
18 | - | 579 | - | ||||||||||||
Home equity line of credit - 1st lien
|
- | - | - | - | ||||||||||||
Home equity line of credit - 2nd lien
|
- | - | - | - | ||||||||||||
Installment
|
||||||||||||||||
Home equity installment - 1st lien
|
2,058 | 24 | 1,827 | 20 | ||||||||||||
Home equity installment - 2nd lien
|
2,297 | 29 | 1,861 | 21 | ||||||||||||
Loans not secured by real estate
|
608 | 8 | 527 | 6 | ||||||||||||
Other
|
20 | 1 | 24 | 1 | ||||||||||||
16,244 | 205 | 14,035 | 67 | |||||||||||||
With an allowance recorded:
|
||||||||||||||||
Commercial
|
||||||||||||||||
Income producing - real estate
|
21,354 | 137 | 22,223 | 147 | ||||||||||||
Land, land development & construction-real estate
|
8,341 | 56 | 11,575 | 53 | ||||||||||||
Commercial and industrial
|
15,036 | 140 | 15,705 | 114 | ||||||||||||
Mortgage
|
||||||||||||||||
1-4 family
|
63,617 | 706 | 67,542 | 724 | ||||||||||||
Resort lending
|
22,973 | 219 | 24,474 | 244 | ||||||||||||
Home equity line of credit - 1st lien
|
110 | 1 | 67 | 1 | ||||||||||||
Home equity line of credit - 2nd lien
|
43 | 1 | 137 | 1 | ||||||||||||
Installment
|
||||||||||||||||
Home equity installment - 1st lien
|
1,092 | 12 | 1,626 | 21 | ||||||||||||
Home equity installment - 2nd lien
|
1,150 | 13 | 1,604 | 19 | ||||||||||||
Loans not secured by real estate
|
204 | 2 | 178 | 2 | ||||||||||||
Other
|
- | - | - | - | ||||||||||||
133,920 | 1,287 | 145,131 | 1,326 | |||||||||||||
Total
|
||||||||||||||||
Commercial
|
||||||||||||||||
Income producing - real estate
|
25,829 | 200 | 25,823 | 164 | ||||||||||||
Land, land development & construction-real estate
|
11,468 | 98 | 13,165 | 53 | ||||||||||||
Commercial and industrial
|
18,677 | 178 | 19,732 | 116 | ||||||||||||
Mortgage
|
||||||||||||||||
1-4 family
|
63,617 | 706 | 67,542 | 724 | ||||||||||||
Resort lending
|
22,991 | 219 | 25,053 | 244 | ||||||||||||
Home equity line of credit - 1st lien
|
110 | 1 | 67 | 1 | ||||||||||||
Home equity line of credit - 2nd lien
|
43 | 1 | 137 | 1 | ||||||||||||
Installment
|
||||||||||||||||
Home equity installment - 1st lien
|
3,150 | 36 | 3,453 | 41 | ||||||||||||
Home equity installment - 2nd lien
|
3,447 | 42 | 3,465 | 40 | ||||||||||||
Loans not secured by real estate
|
812 | 10 | 705 | 8 | ||||||||||||
Other
|
20 | 1 | 24 | 1 | ||||||||||||
Total
|
$ | 150,164 | $ | 1,492 | $ | 159,166 | $ | 1,393 |
(1)
|
There were no impaired payment plan receivables during the three month periods ended March 31, 2013 and 2012.
|
March 31, 2013
|
||||||||||||
Commercial
|
Retail
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Performing TDR's
|
$ | 44,626 | $ | 83,985 | $ | 128,611 | ||||||
Non-performing TDR's(1)
|
6,349 | 8,499 | (2) | 14,848 | ||||||||
Total
|
$ | 50,975 | $ | 92,484 | $ | 143,459 |
December 31, 2012
|
||||||||||||
Commercial
|
Retail
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Performing TDR's
|
$ | 40,753 | $ | 85,977 | $ | 126,730 | ||||||
Non-performing TDR's(1)
|
7,756 | 9,177 | (2) | 16,933 | ||||||||
Total
|
$ | 48,509 | $ | 95,154 | $ | 143,663 |
(1)
|
Included in non-performing loans table above.
|
(2)
|
Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.
|
Pre-modification
|
Post-modification
|
|||||||||||
Number of
|
Recorded
|
Recorded
|
||||||||||
Contracts
|
Balance
|
Balance
|
||||||||||
(Dollars in thousands)
|
||||||||||||
2013
|
||||||||||||
Commercial
|
||||||||||||
Income producing - real estate
|
3 | $ | 4,083 | $ | 3,822 | |||||||
Land, land development & construction-real estate
|
1 | 16 | 15 | |||||||||
Commercial and industrial
|
13 | 840 | 834 | |||||||||
Mortgage
|
||||||||||||
1-4 family
|
7 | 791 | 786 | |||||||||
Resort lending
|
3 | 799 | 795 | |||||||||
Home equity line of credit - 1st lien
|
1 | 95 | 96 | |||||||||
Home equity line of credit - 2nd lien
|
- | - | - | |||||||||
Installment
|
||||||||||||
Home equity installment - 1st lien
|
7 | 173 | 176 | |||||||||
Home equity installment - 2nd lien
|
6 | 148 | 148 | |||||||||
Loans not secured by real estate
|
2 | 57 | 28 | |||||||||
Other
|
- | - | - | |||||||||
Total
|
43 | $ | 7,002 | $ | 6,700 | |||||||
2012
|
||||||||||||
Commercial
|
||||||||||||
Income producing - real estate
|
2 | $ | 223 | $ | 217 | |||||||
Land, land development & construction-real estate
|
2 | 2,838 | 2,836 | |||||||||
Commercial and industrial
|
14 | 3,910 | 3,894 | |||||||||
Mortgage
|
||||||||||||
1-4 family
|
15 | 1,298 | 1,267 | |||||||||
Resort lending
|
7 | 2,175 | 2,155 | |||||||||
Home equity line of credit - 1st lien
|
1 | 15 | 6 | |||||||||
Home equity line of credit - 2nd lien
|
- | - | - | |||||||||
Installment
|
||||||||||||
Home equity installment - 1st lien
|
4 | 308 | 311 | |||||||||
Home equity installment - 2nd lien
|
7 | 194 | 194 | |||||||||
Loans not secured by real estate
|
1 | 25 | 25 | |||||||||
Other
|
- | - | - | |||||||||
Total
|
53 | $ | 10,986 | $ | 10,905 |
Number of
|
Recorded
|
|||||||
Contracts
|
Balance
|
|||||||
(Dollars in thousands)
|
||||||||
2013
|
||||||||
Commercial
|
||||||||
Income producing - real estate
|
- | $ | - | |||||
Land, land development & construction-real estate
|
1 | 334 | ||||||
Commercial and industrial
|
1 | 81 | ||||||
Mortgage
|
||||||||
1-4 family
|
1 | 106 | ||||||
Resort lending
|
1 | 156 | ||||||
Home equity line of credit - 1st lien
|
- | - | ||||||
Home equity line of credit - 2nd lien
|
- | - | ||||||
Installment
|
||||||||
Home equity installment - 1st lien
|
- | - | ||||||
Home equity installment - 2nd lien
|
- | - | ||||||
Loans not secured by real estate
|
- | - | ||||||
Other
|
- | - | ||||||
4 | $ | 677 | ||||||
2012
|
||||||||
Commercial
|
||||||||
Income producing - real estate
|
4 | $ | 597 | |||||
Land, land development & construction-real estate
|
3 | 2,303 | ||||||
Commercial and industrial
|
8 | 790 | ||||||
Mortgage
|
||||||||
1-4 family
|
- | - | ||||||
Resort lending
|
1 | 117 | ||||||
Home equity line of credit - 1st lien
|
- | - | ||||||
Home equity line of credit - 2nd lien
|
- | - | ||||||
Installment
|
||||||||
Home equity installment - 1st lien
|
1 | 26 | ||||||
Home equity installment - 2nd lien
|
- | - | ||||||
Loans not secured by real estate
|
- | - | ||||||
Other
|
- | - | ||||||
17 | $ | 3,833 |
Commercial
|
||||||||||||||||||||
|
|
Substandard
|
Non-
|
|
||||||||||||||||
Non-watch
|
Watch
|
Accrual
|
Accrual
|
|||||||||||||||||
1-6 | 7-8 | 9 | 10-11 |
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
March 31, 2013
|
||||||||||||||||||||
Income producing - real estate
|
$ | 187,106 | $ | 27,441 | $ | 6,559 | $ | 4,099 | $ | 225,205 | ||||||||||
Land, land development and construction - real estate
|
31,607 | 5,346 | 1,052 | 2,991 | 40,996 | |||||||||||||||
Commercial and industrial
|
304,931 | 25,852 | 12,588 | 4,448 | 347,819 | |||||||||||||||
Total
|
$ | 523,644 | $ | 58,639 | $ | 20,199 | $ | 11,538 | $ | 614,020 | ||||||||||
Accrued interest included in total
|
$ | 1,426 | $ | 172 | $ | 91 | $ | - | $ | 1,689 | ||||||||||
December 31, 2012
|
||||||||||||||||||||
Income producing - real estate
|
$ | 183,530 | $ | 27,096 | $ | 6,555 | $ | 5,611 | $ | 222,792 | ||||||||||
Land, land development and construction - real estate
|
32,784 | 3,457 | 2,959 | 4,062 | 43,262 | |||||||||||||||
Commercial and industrial
|
307,566 | 26,954 | 13,296 | 5,080 | 352,896 | |||||||||||||||
Total
|
$ | 523,880 | $ | 57,507 | $ | 22,810 | $ | 14,753 | $ | 618,950 | ||||||||||
Accrued interest included in total
|
$ | 1,417 | $ | 163 | $ | 112 | $ | - | $ | 1,692 |
Mortgage (1)
|
|||||||||||||||||||||
Home
|
Home
|
||||||||||||||||||||
Resort
|
Equity
|
Equity
|
|||||||||||||||||||
1-4 Family
|
Lending
|
1st Lien
|
2nd Lien
|
Total
|
|||||||||||||||||
(In thousands)
|
|||||||||||||||||||||
March 31, 2013
|
|||||||||||||||||||||
800 and above
|
$ | 21,176 | $ | 15,112 | $ | 2,975 | $ | 5,193 | $ | 44,456 | |||||||||||
750-799 | 56,977 | 63,881 | 4,525 | 12,283 | 137,666 | ||||||||||||||||
700-749 | 60,733 | 41,138 | 3,401 | 8,991 | 114,263 | ||||||||||||||||
650-699 | 54,234 | 17,310 | 2,275 | 7,892 | 81,711 | ||||||||||||||||
600-649 | 34,065 | 11,597 | 3,361 | 4,757 | 53,780 | ||||||||||||||||
550-599 | 27,200 | 7,278 | 858 | 2,699 | 38,035 | ||||||||||||||||
500-549 | 19,641 | 1,004 | 658 | 1,912 | 23,215 | ||||||||||||||||
Under 500
|
9,133 | 1,626 | 417 | 787 | 11,963 | ||||||||||||||||
Unknown
|
7,845 | 4,929 | 265 | 105 | 13,144 | ||||||||||||||||
Total
|
$ | 291,004 | $ | 163,875 | $ | 18,735 | $ | 44,619 | $ | 518,233 | |||||||||||
Accrued interest included in total
|
$ | 1,354 | $ | 776 | $ | 88 | $ | 219 | $ | 2,437 | |||||||||||
December 31, 2012
|
|||||||||||||||||||||
800 and above
|
$ | 19,638 | $ | 15,430 | $ | 3,031 | $ | 5,515 | $ | 43,614 | |||||||||||
750-799 | 62,419 | 67,094 | 4,758 | 12,783 | 147,054 | ||||||||||||||||
700-749 | 59,594 | 41,860 | 3,293 | 9,177 | 113,924 | ||||||||||||||||
650-699 | 57,584 | 17,685 | 2,309 | 7,987 | 85,565 | ||||||||||||||||
600-649 | 31,465 | 12,317 | 3,311 | 4,775 | 51,868 | ||||||||||||||||
550-599 | 27,739 | 7,887 | 964 | 2,754 | 39,344 | ||||||||||||||||
500-549 | 20,243 | 1,212 | 656 | 1,997 | 24,108 | ||||||||||||||||
Under 500
|
9,470 | 1,637 | 456 | 789 | 12,352 | ||||||||||||||||
Unknown
|
6,185 | 5,271 | 258 | 188 | 11,902 | ||||||||||||||||
Total
|
$ | 294,337 | $ | 170,393 | $ | 19,036 | $ | 45,965 | $ | 529,731 | |||||||||||
Accrued interest included in total
|
$ | 1,319 | $ | 750 | $ | 91 | $ | 231 | $ | 2,391 |
Installment(1)
|
|||||||||||||||||||||
Home
|
Home
|
Loans not
|
|||||||||||||||||||
Equity
|
Equity
|
Secured by
|
|||||||||||||||||||
1st Lien
|
2nd Lien
|
Real Estate
|
Other
|
Total
|
|||||||||||||||||
(In thousands)
|
|||||||||||||||||||||
March 31, 2013
|
|||||||||||||||||||||
800 and above
|
$ | 3,733 | $ | 3,055 | $ | 18,533 | $ | 41 | $ | 25,362 | |||||||||||
750-799 | 7,211 | 10,822 | 43,262 | 443 | 61,738 | ||||||||||||||||
700-749 | 4,766 | 8,600 | 23,975 | 712 | 38,053 | ||||||||||||||||
650-699 | 5,636 | 6,925 | 13,238 | 629 | 26,428 | ||||||||||||||||
600-649 | 4,155 | 4,075 | 5,982 | 358 | 14,570 | ||||||||||||||||
550-599 | 3,104 | 2,564 | 3,087 | 183 | 8,938 | ||||||||||||||||
500-549 | 1,624 | 1,315 | 2,044 | 107 | 5,090 | ||||||||||||||||
Under 500
|
668 | 1,070 | 784 | 32 | 2,554 | ||||||||||||||||
Unknown
|
203 | 80 | 2,109 | 43 | 2,435 | ||||||||||||||||
Total
|
$ | 31,100 | $ | 38,506 | $ | 113,014 | $ | 2,548 | $ | 185,168 | |||||||||||
Accrued interest included in total
|
$ | 133 | $ | 149 | $ | 441 | $ | 21 | $ | 744 | |||||||||||
December 31, 2012
|
|||||||||||||||||||||
800 and above
|
$ | 3,909 | $ | 3,265 | $ | 19,293 | $ | 38 | $ | 26,505 | |||||||||||
750-799 | 7,394 | 11,300 | 43,740 | 462 | 62,896 | ||||||||||||||||
700-749 | 4,884 | 8,826 | 24,267 | 786 | 38,763 | ||||||||||||||||
650-699 | 5,925 | 7,164 | 13,758 | 710 | 27,557 | ||||||||||||||||
600-649 | 4,360 | 4,214 | 6,442 | 367 | 15,383 | ||||||||||||||||
550-599 | 3,226 | 2,716 | 3,428 | 188 | 9,558 | ||||||||||||||||
500-549 | 1,722 | 1,403 | 2,154 | 114 | 5,393 | ||||||||||||||||
Under 500
|
760 | 1,195 | 895 | 42 | 2,892 | ||||||||||||||||
Unknown
|
205 | 103 | 1,322 | 18 | 1,648 | ||||||||||||||||
Total
|
$ | 32,385 | $ | 40,186 | $ | 115,299 | $ | 2,725 | $ | 190,595 | |||||||||||
Accrued interest included in total
|
$ | 137 | $ | 157 | $ | 429 | $ | 23 | $ | 746 |
Payment Plan Receivables
|
|||||||||||||||||
Full
|
Partial
|
||||||||||||||||
Refund
|
Refund
|
Other
|
Total
|
||||||||||||||
(In thousands)
|
|||||||||||||||||
March 31, 2013
|
|||||||||||||||||
AM Best rating
|
|||||||||||||||||
A+ | $ | - | $ | - | $ | 90 | $ | 90 | |||||||||
A | 23,372 | 3,376 | - | 26,748 | |||||||||||||
A- | 16,317 | 457 | - | 16,774 | |||||||||||||
B+ | 15 | - | - | 15 | |||||||||||||
B | - | - | - | - | |||||||||||||
Not rated
|
34,628 | - | 56 | 34,684 | |||||||||||||
Total
|
$ | 74,332 | $ | 3,833 | $ | 146 | $ | 78,311 | |||||||||
December 31, 2012
|
|||||||||||||||||
AM Best rating
|
|||||||||||||||||
A+ | $ | - | $ | - | $ | 110 | $ | 110 | |||||||||
A | 24,825 | 3,916 | - | 28,741 | |||||||||||||
A- | 19,310 | 399 | - | 19,709 | |||||||||||||
B+ | 56 | - | - | 56 | |||||||||||||
B | - | - | - | - | |||||||||||||
Not rated
|
36,002 | - | 74 | 36,076 | |||||||||||||
Total
|
$ | 80,193 | $ | 4,315 | $ | 184 | $ | 84,692 |
5.
|
Segments
|
IB
|
Mepco
|
Other(1)
|
Elimination(2)
|
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
As of March 31, 2013
|
||||||||||||||||||||
Total assets
|
$ | 1,978,620 | $ | 124,104 | $ | 202,914 | $ | (200,291 | ) | $ | 2,105,347 | |||||||||
For the three months ended March 31, 2013
|
||||||||||||||||||||
Interest income
|
18,780 | 3,170 | - | - | 21,950 | |||||||||||||||
Net interest income
|
17,616 | 2,521 | (581 | ) | - | 19,556 | ||||||||||||||
Provision for loan losses
|
(687 | ) | (4 | ) | - | - | (691 | ) | ||||||||||||
Income (loss) before income tax
|
6,819 | 823 | (1,776 | ) | (24 | ) | 5,842 | |||||||||||||
Net income (loss)
|
7,064 | 543 | (1,776 | ) | (24 | ) | 5,807 | |||||||||||||
As of December 31, 2012
|
||||||||||||||||||||
Total assets
|
$ | 1,885,807 | $ | 135,447 | $ | 192,343 | $ | (189,730 | ) | $ | 2,023,867 | |||||||||
For the three months ended March 31, 2012
|
||||||||||||||||||||
Interest income
|
21,845 | 3,851 | - | - | 25,696 | |||||||||||||||
Net interest income
|
19,939 | 2,882 | (721 | ) | - | 22,100 | ||||||||||||||
Provision for loan losses
|
5,103 | 28 | - | - | 5,131 | |||||||||||||||
Income (loss) before income tax
|
3,013 | 1,556 | (1,041 | (24 | ) | 3,504 | ||||||||||||||
Net income (loss)
|
3,542 | 1,027 | (1,041 | (24 | ) | 3,504 |
6
|
Earnings Per Common Share
|
2013
|
2012
|
|||||||
(in thousands, except
|
||||||||
per share amounts)
|
||||||||
Net income applicable to common stock
|
$ | 4,712 | $ | 2,448 | ||||
Convertible preferred stock dividends
|
1,095 | 1,056 | ||||||
Net income applicable to common stock for calculation of diluted earnings per share
|
$ | 5,807 | $ | 3,504 | ||||
Weighted average shares outstanding (1)
|
9,266 | 8,534 | ||||||
Effect of convertible preferred stock
|
12,026 | 38,618 | ||||||
Restricted stock units
|
361 | 140 | ||||||
Stock units for deferred compensation plan for non-employee directors
|
117 | 26 | ||||||
Effect of stock options
|
61 | - | ||||||
Weighted average shares outstanding for calculation of diluted earnings per share
|
21,831 | 47,318 | ||||||
Net income per common share
|
||||||||
Basic (1)
|
$ | 0.51 | $ | 0.29 | ||||
Diluted
|
$ | 0.27 | $ | 0.07 |
7.
|
Derivative Financial Instruments
|
March 31, 2013
|
||||||||||||
Average
|
||||||||||||
Notional
|
Maturity
|
Fair
|
||||||||||
Amount
|
(years)
|
Value
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Cash Flow Hedges - Pay fixed interest-rate swap agreements
|
$ | 10,000 | 1.8 | $ | (648 | ) | ||||||
No hedge designation
|
||||||||||||
Mandatory commitments to sell mortgage loans
|
$ | 76,941 | 0.1 | $ | (186 | ) | ||||||
Rate-lock mortgage loan commitments
|
39,392 | 0.1 | 1,159 | |||||||||
Amended Warrant
|
2,504 | 5.7 | (1,504 | ) | ||||||||
Total
|
$ | 118,837 | 0.2 | $ | (531 | ) |
Asset Derivatives
|
Liability Derivatives
|
|||||||||||||||||||
March 31,
|
December 31,
|
March 31,
|
December 31,
|
|||||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||||||
Balance
|
Balance
|
Balance
|
Balance
|
|||||||||||||||||
Sheet
|
Fair
|
Sheet
|
Fair
|
Sheet
|
Fair
|
Sheet
|
Fair
|
|||||||||||||
Location
|
Value
|
Location
|
Value
|
Location
|
Value
|
Location
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||
Pay-fixed interest rate swap agreements
|
Other liabilities
|
$ | 648 |
Other liabilities
|
$ | 739 | ||||||||||||||
Total
|
648 | 739 | ||||||||||||||||||
Derivatives not designated as hedging instruments
|
||||||||||||||||||||
Rate-lock mortgage loan commitments
|
Other assets
|
$ | 1,159 |
Other assets
|
1,368 | |||||||||||||||
Mandatory commitments to sell mortgage loans
|
- | - |
Other liabilities
|
186 |
Other liabilities
|
122 | ||||||||||||||
Amended Warrant
|
- | - |
Other liabilities
|
1,504 |
Other liabilities
|
459 | ||||||||||||||
Total
|
1,159 | 1,368 | 1,690 | 581 | ||||||||||||||||
Total derivatives
|
$ | 1,159 | $ | 1,368 |
|
$ | 2,338 | $ | 1,320 |
Three Month Periods Ended March 31,
|
||||||||||||||||||||||||||
Gain (Loss)
Recognized in
Other
Comprehensive
Income (Loss)
(Effective Portion)
|
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective
|
Gain (Loss)
Reclassified from
Accumulated Other
Comprehensive
Loss into Income
(Effective Portion)
|
Location of Gain (Loss) Recognized
in Income
|
Gain (Loss)
Recognized
in Income
|
||||||||||||||||||||||
2013
|
2012
|
Portion)
|
2013
|
2012
|
(1)
|
2013
|
2012
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||
Cash Flow Hedges
|
||||||||||||||||||||||||||
Pay-fixed interest rate swap agreements
|
$
|
(3
|
)
|
$
|
(51
|
)
|
Interest expense
|
$
|
(94
|
)
|
$
|
(330
|
)
|
$
|
-
|
$
|
-
|
|||||||||
Total
|
$
|
(3
|
)
|
$
|
(51
|
)
|
$
|
(94
|
)
|
$
|
(330
|
)
|
$
|
-
|
$
|
-
|
||||||||||
No hedge designation
|
||||||||||||||||||||||||||
Rate-lock mortgage loan commitments
|
Net mortgage loan gains
|
$
|
(209
|
)
|
$
|
843
|
||||||||||||||||||||
Mandatory commitments to sell mortgage loans
|
Net mortgage loan gains
|
(64
|
)
|
614
|
||||||||||||||||||||||
Amended warrant
|
Increase in fair value of U.S. Treasury warrant
|
(1,045
|
)
|
(154
|
)
|
|||||||||||||||||||||
Total
|
$
|
(1,318
|
)
|
$
|
1,303
|
8.
|
Intangible Assets
|
March 31, 2013
|
December 31, 2012
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Carrying
|
Accumulated
|
Carrying
|
Accumulated
|
|||||||||||||
Amount
|
Amortization
|
Amount
|
Amortization
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Amortized intangible assets - core deposits
|
$ | 23,703 | $ | 19,931 | $ | 23,703 | $ | 19,728 |
(In thousands)
|
||||
2013
|
$ | 610 | ||
2014
|
536 | |||
2015
|
347 | |||
2016
|
347 | |||
2017
|
346 | |||
2018 and thereafter
|
1,586 | |||
Total
|
$ | 3,772 |
9.
|
Share Based Compensation
|
Weighted-
|
||||||||||||||||
Average
|
||||||||||||||||
Average
|
Remaining
|
Aggregated
|
||||||||||||||
Number of
|
Exercise
|
Contractual
|
Intrinsic
|
|||||||||||||
Shares
|
Price
|
Term (Years)
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Outstanding at January 1, 2013
|
275,933 | $ | 4.46 | |||||||||||||
Granted
|
- | |||||||||||||||
Exercised
|
(5,834 | ) | 1.92 | |||||||||||||
Forfeited
|
(1,166 | ) | 2.39 | |||||||||||||
Expired
|
(1,940 | ) | 11.53 | |||||||||||||
Outstanding at March 31, 2013
|
266,993 | $ | 4.48 | 8.34 | $ | 1,434 | ||||||||||
Vested and expected to vest at March 31, 2013
|
251,892 | $ | 4.60 | 8.29 | $ | 1,344 | ||||||||||
Exercisable at March 31, 2013
|
75,703 | $ | 9.71 | 6.77 | $ | 277 |
Weighted-
|
||||||||
Average
|
||||||||
Number
|
Grant Date
|
|||||||
of Shares
|
Fair Value
|
|||||||
Outstanding at January 1, 2013
|
375,416 | $ | 6.21 | |||||
Granted
|
- | |||||||
Vested
|
(14,636 | ) | 76.30 | |||||
Forfeited
|
- | |||||||
Outstanding at March 31, 2013
|
360,780 | $ | 3.37 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
(In thousands)
|
||||||||
Intrinsic value
|
$ | 15 | $ | - | ||||
Cash proceeds received
|
$ | 11 | $ | - | ||||
Tax benefit realized
|
$ | - | $ | - |
10.
|
Income Tax
|
11.
|
Regulatory Matters
|
●
|
Submission of a joint revised capital plan by November 30, 2011 to maintain sufficient capital at the Company on a consolidated basis and at the Bank on a stand-alone basis;
|
●
|
Submission of quarterly progress reports regarding disposition plans for any assets in excess of $1.0 million that are in ORE, are 90 days or more past due, are on our “watch list,” or were adversely classified in our most recent examination;
|
●
|
Enhanced reporting and monitoring at Mepco regarding risk management and the internal classification of assets; and
|
●
|
Enhanced interest rate risk modeling practices.
|
●
|
Submission of quarterly progress reports to the FRB and DIFS regarding disposition plans for any assets in excess of $1.0 million that are in ORE, are 90 days or more past due, are on our “watch list,” or are adversely classified;
|
●
|
Prior approval of the FRB and DIFS for the Bank to pay any dividend to the Company; and
|
●
|
Prior approval of the FRB and DIFS for the Company to pay any dividend to its shareholders, to make any distributions of interest, principal or other sums on subordinated debentures or trust preferred securities, to increase borrowings or guarantee any debt, and/or to purchase or redeem any of its stock.
|
Minimum for
|
Minimum for
|
|||||||||||||||||||||||
Adequately Capitalized
|
Well-Capitalized
|
|||||||||||||||||||||||
Actual
|
Institutions
|
Institutions
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
March 31, 2013
|
||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||
Consolidated
|
$ | 212,720 | 15.57 | % | $ | 109,270 | 8.00 | % |
NA
|
NA
|
||||||||||||||
Independent Bank
|
215,128 | 15.78 | 109,051 | 8.00 | 136,313 | 10.00 | % | |||||||||||||||||
Tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Consolidated
|
$ | 195,247 | 14.29 | % | $ | 54,635 | 4.00 | % |
NA
|
NA
|
||||||||||||||
Independent Bank
|
197,688 | 14.50 | 54,525 | 4.00 | 81,788 | 6.00 | % | |||||||||||||||||
Tier 1 capital to average assets
|
||||||||||||||||||||||||
Consolidated
|
$ | 195,247 | 9.50 | % | $ | 82,248 | 4.00 | % |
NA
|
NA
|
||||||||||||||
Independent Bank
|
197,688 | 9.62 | 82,166 | 4.00 | $ | 102,707 | 5.00 | % | ||||||||||||||||
December 31, 2012
|
||||||||||||||||||||||||
Total capital to risk-weighted assets
|
||||||||||||||||||||||||
Consolidated
|
$ | 204,663 | 14.71 | % | $ | 111,268 | 8.00 | % |
NA
|
NA
|
||||||||||||||
Independent Bank
|
207,553 | 14.95 | 111,063 | 8.00 | $ | 138,829 | 10.00 | % | ||||||||||||||||
Tier 1 capital to risk-weighted assets
|
||||||||||||||||||||||||
Consolidated
|
$ | 185,948 | 13.37 | % | $ | 55,634 | 4.00 | % |
NA
|
NA
|
||||||||||||||
Independent Bank
|
189,777 | 13.67 | 55,531 | 4.00 | $ | 83,297 | 6.00 | % | ||||||||||||||||
Tier 1 capital to average assets
|
||||||||||||||||||||||||
Consolidated
|
$ | 185,948 | 8.08 | % | $ | 92,026 | 4.00 | % |
NA
|
NA
|
||||||||||||||
Independent Bank
|
189,777 | 8.26 | 91,919 | 4.00 | $ | 114,899 | 5.00 | % |
Consolidated
|
Independent Bank
|
|||||||||||||||
March 31,
|
December 31,
|
March 31,
|
December 31,
|
|||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Total shareholders' equity
|
$ | 144,085 | $ | 134,975 | $ | 195,095 | $ | 186,384 | ||||||||
Add (deduct)
|
||||||||||||||||
Qualifying trust preferred securities
|
48,668 | 47,678 | - | - | ||||||||||||
Accumulated other comprehensive loss
|
6,953 | 8,058 | 7,052 | 8,156 | ||||||||||||
Intangible assets
|
(3,772 | ) | (3,975 | ) | (3,772 | ) | (3,975 | ) | ||||||||
Disallowed capitalized mortgage loan servicing rights
|
(687 | ) | (788 | ) | (687 | ) | (788 | ) | ||||||||
Tier 1 capital
|
195,247 | 185,948 | 197,688 | 189,777 | ||||||||||||
Qualifying trust preferred securities
|
- | 990 | - | - | ||||||||||||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets
|
17,473 | 17,725 | 17,440 | 17,776 | ||||||||||||
Total risk-based capital
|
$ | 212,720 | $ | 204,663 | $ | 215,128 | $ | 207,553 |
Independent
|
Minimum
|
|||||||||||
Bank
|
Minimum
|
Ratio
|
||||||||||
Actual as of
|
Ratios
|
Required to
|
||||||||||
March 31,
|
Established
|
be Well-
|
||||||||||
2013
|
by our Board
|
Capitalized
|
||||||||||
Total Capital to Risk-Weighted Assets
|
15.78 | % | 11.00 | % | 10.00 | % | ||||||
Tier 1 Capital to Average Total Assets
|
9.62 | 8.00 | 5.00 |
12.
|
Fair Value Disclosures
|
Fair Value Measurements Using
|
||||||||||||||||
Quoted
|
||||||||||||||||
Prices
|
||||||||||||||||
in Active
|
||||||||||||||||
Markets
|
Significant
|
Significant
|
||||||||||||||
for
|
Other
|
Un-
|
||||||||||||||
Fair Value
|
Identical
|
Observable
|
observable
|
|||||||||||||
Measure-
|
Assets
|
Inputs
|
Inputs
|
|||||||||||||
ments
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
(In thousands)
|
||||||||||||||||
March 31, 2013:
|
|
|
|
|
||||||||||||
Measured at Fair Value on a Recurring Basis:
|
||||||||||||||||
Assets
|
||||||||||||||||
Trading securities
|
$ | 201 | $ | 201 | $ | - | $ | - | ||||||||
Securities available for sale
|
||||||||||||||||
U.S. agency
|
8,106 | - | 8,106 | - | ||||||||||||
U.S. agency residential mortgage-backed
|
194,007 | - | 194,007 | - | ||||||||||||
Private label residential mortgage-backed
|
7,565 | - | 7,565 | - | ||||||||||||
Obligations of states and political subdivisions
|
70,903 | - | 70,903 | - | ||||||||||||
Trust preferred
|
2,365 | - | 2,365 | - | ||||||||||||
Corporate
|
988 | - | 988 | - | ||||||||||||
Loans held for sale
|
37,554 | - | 37,554 | - | ||||||||||||
Derivatives (1)
|
1,159 | - | 1,159 | - | ||||||||||||
Liabilities
|
||||||||||||||||
Derivatives (2)
|
2,338 | - | 834 | 1,504 | ||||||||||||
Measured at Fair Value on a Non-recurring basis:
|
||||||||||||||||
Assets
|
||||||||||||||||
Capitalized mortgage loan servicing rights (3)
|
8,485 | - | - | 8,485 | ||||||||||||
Impaired loans (4)
|
||||||||||||||||
Commercial
|
||||||||||||||||
Income producing - real estate
|
3,185 | - | - | 3,185 | ||||||||||||
Land, land development & construction-real estate
|
2,726 | - | - | 2,726 | ||||||||||||
Commercial and industrial
|
3,375 | - | - | 3,375 | ||||||||||||
Mortgage
|
||||||||||||||||
1-4 Family
|
2,480 | - | - | 2,480 | ||||||||||||
Resort Lending
|
438 | - | - | 438 | ||||||||||||
Other real estate (5)
|
||||||||||||||||
Commercial
|
||||||||||||||||
Income producing - real estate
|
86 | - | - | 86 | ||||||||||||
Land, land development & construction-real estate
|
2,247 | - | - | 2,247 | ||||||||||||
Mortgage
|
||||||||||||||||
1-4 Family
|
631 | - | - | 631 | ||||||||||||
Resort Lending
|
2,229 | - | - | 2,229 | ||||||||||||
Installment
|
||||||||||||||||
Home equity installment - 1st lien
|
55 | - | - | 55 |
Fair Value Measurements Using
|
||||||||||||||||
Quoted
|
||||||||||||||||
Prices
|
||||||||||||||||
in Active
|
||||||||||||||||
Markets
|
Significant
|
Significant
|
||||||||||||||
for
|
Other
|
Un-
|
||||||||||||||
Fair Value
|
Identical
|
Observable
|
observable
|
|||||||||||||
Measure-
|
Assets
|
Inputs
|
Inputs
|
|||||||||||||
ments
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
(In thousands)
|
||||||||||||||||
December 31, 2012:
|
|
|
|
|
||||||||||||
Measured at Fair Value on a Recurring Basis:
|
||||||||||||||||
Assets
|
||||||||||||||||
Trading securities
|
$ | 110 | $ | 110 | $ | - | $ | - | ||||||||
Securities available for sale
|
||||||||||||||||
U.S. agency
|
30,667 | - | 30,667 | - | ||||||||||||
U.S. agency residential mortgage-backed
|
127,412 | - | 127,412 | - | ||||||||||||
Private label residential mortgage-backed
|
8,194 | - | 8,194 | - | ||||||||||||
Obligations of states and political subdivisions
|
39,051 | - | 39,051 | - | ||||||||||||
Trust preferred
|
3,089 | - | 3,089 | - | ||||||||||||
Loans held for sale
|
47,487 | - | 47,487 | - | ||||||||||||
Derivatives (1)
|
1,368 | - | 1,368 | - | ||||||||||||
Liabilities
|
||||||||||||||||
Derivatives (2)
|
1,320 | - | 861 | 459 | ||||||||||||
Measured at Fair Value on a Non-recurring basis:
|
||||||||||||||||
Assets
|
||||||||||||||||
Capitalized mortgage loan servicing rights (3)
|
8,814 | - | - | 8,814 | ||||||||||||
Impaired loans (4)
|
||||||||||||||||
Commercial
|
||||||||||||||||
Income producing - real estate
|
3,727 | - | - | 3,727 | ||||||||||||
Land, land development & construction-real estate
|
2,882 | - | - | 2,882 | ||||||||||||
Commercial and industrial
|
6,581 | - | - | 6,581 | ||||||||||||
Mortgage
|
||||||||||||||||
1-4 Family
|
2,694 | - | - | 2,694 | ||||||||||||
Resort Lending
|
380 | - | - | 380 | ||||||||||||
Other real estate (5)
|
||||||||||||||||
Commercial
|
||||||||||||||||
Income producing - real estate
|
86 | - | - | 86 | ||||||||||||
Land, land development & construction-real estate
|
3,190 | - | - | 3,190 | ||||||||||||
Mortgage
|
||||||||||||||||
1-4 Family
|
405 | - | - | 405 | ||||||||||||
Resort Lending
|
3,535 | - | - | 3,535 | ||||||||||||
Installment
|
||||||||||||||||
Home equity installment - 1st lien
|
59 | - | - | 59 | ||||||||||||
Loans held for sale relating to branch sale
|
3,292 | - | 3,292 | - |
Changes in Fair Values for the Three-Month
|
||||||||||||||||||||||||
Periods Ended March 31 for Items Measured at
|
||||||||||||||||||||||||
Fair Value Pursuant to Election of the Fair Value Option
|
||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
Total
|
Total
|
|||||||||||||||||||||||
Change
|
Change
|
|||||||||||||||||||||||
in Fair
|
in Fair
|
|||||||||||||||||||||||
Values
|
Values
|
|||||||||||||||||||||||
Included
|
Included
|
|||||||||||||||||||||||
Net Gains (Losses)
|
in Current
|
Net Gains (Losses)
|
in Current
|
|||||||||||||||||||||
on Assets
|
Period
|
on Assets
|
Period
|
|||||||||||||||||||||
Securities
|
Loans
|
Earnings
|
Securities
|
Loans
|
Earnings
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Trading securities
|
$ | 91 | $ | - | $ | 91 | $ | (8 | ) | $ | - | $ | (8 | ) | ||||||||||
Loans held for sale
|
- | (694 | ) | (694 | ) | - | (421 | ) | (421 | ) |
|
·
|
Capitalized mortgage loan servicing rights, whose individual strata are measured at fair value, had a carrying amount of $8.5 million which is net of a valuation allowance of $5.3 million at March 31, 2013 and had a carrying amount of $8.8 million which is net of a valuation allowance of $6.1 million at December 31, 2012. A recovery of $0.8 million and $0.7 million was included in our results of operations for the three month periods ending March 31, 2013 and 2012, respectively.
|
|
·
|
Loans which are measured for impairment using the fair value of collateral for collateral dependent loans, had a carrying amount of $17.6 million, with a valuation allowance of $5.4 million at March 31, 2013 and had a carrying amount of $22.8 million, with a valuation allowance of $6.5 million at December 31, 2012. The provision for loan losses included in our results of operations relating to impaired loans was a credit of $0.3 million and an expense of $2.3 million for the three month periods ending March 31, 2013 and 2012, respectively.
|
|
·
|
Other real estate, which is measured using the fair value of the property, had a carrying amount of $5.2 million which is net of a valuation allowance of $4.8 million at March 31, 2013 and a carrying amount of $7.3 million which is net of a valuation allowance of $6.0 million at December 31, 2012. An additional charge relating to ORE measured at fair value of $0.7 million and $1.0 million was included in our results of operations during the three month periods ended March 31, 2013 and 2012, respectively.
|
(Liability)
|
||||||||
Amended Warrant
|
||||||||
2013
|
2012
|
|||||||
Beginning balance
|
$ | (459 | ) | $ | (174 | ) | ||
Total gains (losses) realized and unrealized:
|
||||||||
Included in results of operations
|
(1,045 | ) | (154 | ) | ||||
Included in other comprehensive income
|
- | - | ||||||
Purchases, issuances, settlements, maturities and calls
|
- | - | ||||||
Transfers in and/or out of Level 3
|
- | - | ||||||
Ending balance
|
$ | (1,504 | ) | $ | (328 | ) | ||
Amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at March 31
|
$ | (1,045 | ) | $ | (154 | ) |
(Liability)
|
Unobservable Input Values
|
|||||||||||||
Fair
|
Valuation
|
Unobservable
|
March 31,
|
December 31,
|
||||||||||
Value
|
Technique
|
Inputs
|
2013
|
2012
|
||||||||||
(In thousands)
|
||||||||||||||
Amended Warrant
|
$ | (1,504 | ) |
Binomial Lattice Model
|
Probability of non- permitted equity raise
|
0.5 | % | 0.5 | % | |||||
Expected discount to stock price in an equity raise
|
10.0 | % | 10.0 | % | ||||||||||
Dollar amount of expected capital raise
|
$100 Million
|
$100 Million
|
||||||||||||
Expected time of non-permitted equity raise
|
April, 2013
|
April, 2013
|
Asset
|
|||||||||||
(Liability)
|
|||||||||||
Fair
|
Valuation
|
Unobservable
|
Weighted
|
||||||||
Value
|
Technique
|
Inputs
|
Average
|
||||||||
(In thousands)
|
|||||||||||
March 31, 2013
|
|||||||||||
Capitalized mortgage loan servicing rights
|
$ | 8,485 |
Present value of net servicing revenue
|
Discount rate
|
11.02 | % | |||||
Cost to service
|
$ | 81 | |||||||||
Ancillary income
|
43 | ||||||||||
Float rate
|
0.96 | % | |||||||||
Impaired loans | |||||||||||
Commercial
|
9,286 |
Sales comparison approach
|
Adjustment for differences between comparable sales
|
3.1 | % | ||||||
Income approach
|
Capitalization rate
|
10.3 | |||||||||
Mortgage
|
2,918 |
Sales comparison approach
|
Adjustment for differences between comparable sales
|
9.7 | |||||||
Other real estate
|
|||||||||||
Commercial
|
2,333 |
Sales comparison approach
|
Adjustment for differences between comparable sales
|
(11.5 | ) | ||||||
Income approach
|
Capitalization rate
|
11.0 | |||||||||
Mortgage and installment
|
2,915 |
Sales comparison approach
|
Adjustment for differences between comparable sales
|
31.6 | |||||||
December 31, 2012
|
|||||||||||
$ | 8,814 |
Present value of net servicing revenue
|
Discount rate
|
11.00 | % | ||||||
Capitalized mortgage loan servicing rights |
Cost to service
|
$ | 83 | ||||||||
Ancillary income
|
43 | ||||||||||
Float rate
|
0.84 | % | |||||||||
Impaired loans | |||||||||||
Commercial
|
13,190 |
Sales comparison approach
|
Adjustment for differences between comparable sales
|
16.7 | % | ||||||
Income approach
|
Capitalization rate
|
10.8 | |||||||||
Mortgage
|
3,074 |
Sales comparison approach
|
Adjustment for differences between comparable sales
|
9.5 | |||||||
Other real estate | |||||||||||
Commercial
|
3,276 |
Sales comparison approach
|
Adjustment for differences between comparable sales
|
(12.4 | ) | ||||||
Income approach
|
Capitalization rate
|
12.3 | |||||||||
Mortgage and installment
|
3,999 |
Sales comparison approach
|
Adjustment for differences between comparable sales
|
(6.3 | ) |
Aggregate Fair Value
|
Difference
|
Contractual Principal
|
||||||||||
(In thousands)
|
||||||||||||
Loans held for sale
|
||||||||||||
March 31, 2013
|
$ | 37,554 | $ | 1,149 | $ | 36,405 | ||||||
December 31, 2012
|
47,487 | 1,843 | 45,644 |
13.
|
Fair Values of Financial Instruments
|
Fair Value Measurements Using
|
||||||||||||||||||||
Quoted
|
||||||||||||||||||||
Prices
|
||||||||||||||||||||
in Active
|
||||||||||||||||||||
Markets
|
Significant
|
Significant
|
||||||||||||||||||
for
|
Other
|
Un-
|
||||||||||||||||||
Recorded
|
Fair Value
|
Identical
|
Observable
|
observable
|
||||||||||||||||
Book
|
Measure-
|
Assets
|
Inputs
|
Inputs
|
||||||||||||||||
Balance
|
ments
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
March 31, 2013
|
||||||||||||||||||||
Assets
|
||||||||||||||||||||
Cash and due from banks
|
$ | 51,489 | $ | 51,489 | $ | 51,489 | $ | - | $ | - | ||||||||||
Interest bearing deposits
|
170,141 | 170,141 | 170,141 | - | - | |||||||||||||||
Interest bearing deposits - time
|
6,973 | 6,973 | - | 6,973 | - | |||||||||||||||
Trading securities
|
201 | 201 | 201 | - | - | |||||||||||||||
Securities available for sale
|
283,934 | 283,934 | - | 283,934 | - | |||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock
|
20,838 |
NA
|
NA
|
NA
|
NA
|
|||||||||||||||
Net loans and loans held for sale
|
1,387,651 | 1,338,104 | - | 37,554 | 1,300,550 | |||||||||||||||
Accrued interest receivable
|
6,154 | 6,154 | 129 | 1,130 | 4,895 | |||||||||||||||
Derivative financial instruments
|
1,159 | 1,159 | - | 1,159 | - | |||||||||||||||
Liabilities
|
||||||||||||||||||||
Deposits with no stated maturity (1)
|
$ | 1,427,613 | $ | 1,427,613 | $ | 1,427,613 | $ | - | $ | - | ||||||||||
Deposits with stated maturity (1)
|
423,180 | 425,026 | - | 425,026 | - | |||||||||||||||
Other borrowings
|
17,630 | 21,230 | - | 21,230 | - | |||||||||||||||
Subordinated debentures
|
50,175 | 46,719 | 8,801 | 37,918 | - | |||||||||||||||
Accrued interest payable
|
7,782 | 7,782 | 3,199 | 4,583 | - | |||||||||||||||
Derivative financial instruments
|
2,338 | 2,338 | - | 834 | 1,504 | |||||||||||||||
December 31, 2012
|
||||||||||||||||||||
Assets
|
||||||||||||||||||||
Cash and due from banks
|
$ | 55,487 | $ | 55,487 | $ | 55,487 | $ | - | $ | - | ||||||||||
Interest bearing deposits
|
124,295 | 124,295 | 124,295 | - | - | |||||||||||||||
Trading securities
|
110 | 110 | 110 | - | - | |||||||||||||||
Securities available for sale
|
208,413 | 208,413 | - | 208,413 | - | |||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock
|
20,838 |
NA
|
NA
|
NA
|
NA
|
|||||||||||||||
Net loans and loans held for sale
|
1,425,643 | 1,400,385 | - | 50,779 | 1,349,606 | |||||||||||||||
Accrued interest receivable
|
5,814 | 5,814 | 102 | 934 | 4,778 | |||||||||||||||
Derivative financial instruments
|
1,368 | 1,368 | - | 1,368 | - | |||||||||||||||
Liabilities
|
||||||||||||||||||||
Deposits with no stated maturity (1)
|
$ | 1,360,609 | $ | 1,360,609 | $ | 1,360,609 | $ | - | $ | - | ||||||||||
Deposits with stated maturity (1)
|
418,928 | 420,374 | - | 420,374 | - | |||||||||||||||
Other borrowings
|
17,625 | 21,463 | - | 21,463 | - | |||||||||||||||
Subordinated debentures
|
50,175 | 42,235 | 7,956 | 34,279 | - | |||||||||||||||
Accrued interest payable
|
7,197 | 7,197 | 2,942 | 4,255 | - | |||||||||||||||
Derivative financial instruments
|
1,320 | 1,320 | - | 861 | 459 |
(1)
|
Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $3.9 million and $1.2 million at March 31, 2013 and December 31, 2012, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $42.0 million and $32.0 million at March 31, 2013 and December 31, 2012, respectively.
|
Dispropor-
|
||||||||||||||||||||||||
tionate
|
Dispropor-
|
|||||||||||||||||||||||
Unrealized
|
Tax Effects
|
tionate
|
||||||||||||||||||||||
Losses on
|
from
|
Unrealized
|
Unrealized
|
Tax Effects
|
||||||||||||||||||||
Available
|
Securities
|
Losses on
|
Losses on
|
from Cash
|
||||||||||||||||||||
for Sale
|
Available
|
Cash Flow
|
Settled
|
Flow
|
||||||||||||||||||||
Securities
|
for Sale
|
Hedges
|
Derivatives
|
Hedges
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
2013
|
||||||||||||||||||||||||
Balances at beginning of period
|
$ | (516 | ) | $ | (5,617 | ) | $ | (739 | ) | $ | - | $ | (1,186 | ) | $ | (8,058 | ) | |||||||
Other comprehensive income (loss) before reclassifications
|
1,007 | - | (3 | ) | - | - | 1,004 | |||||||||||||||||
Amounts reclassified from
|
||||||||||||||||||||||||
AOCL
|
7 | - | 94 | - | - | 101 | ||||||||||||||||||
Net current period other comprehensive income (loss)
|
1,014 | - | 91 | - | - | 1,105 | ||||||||||||||||||
Balances at end of period
|
$ | 498 | $ | (5,617 | ) | $ | (648 | ) | $ | - | $ | (1,186 | ) | $ | (6,953 | ) | ||||||||
2012
|
||||||||||||||||||||||||
Balances at beginning of period
|
$ | (3,579 | ) | $ | (5,617 | ) | $ | (1,103 | ) | $ | (436 | ) | $ | (1,186 | ) | $ | (11,921 | ) | ||||||
Other comprehensive income (loss) before reclassifications
|
(908 | ) | - | (51 | ) | - | - | (959 | ) | |||||||||||||||
Amounts reclassified from
|
||||||||||||||||||||||||
AOCL
|
(515 | ) | - | 185 | 145 | - | (185 | ) | ||||||||||||||||
Net current period other comprehensive income (loss)
|
(1,423 | ) | - | 134 | 145 | - | (1,144 | ) | ||||||||||||||||
Balances at end of period
|
$ | (5,002 | ) | $ | (5,617 | ) | $ | (969 | ) | $ | (291 | ) | $ | (1,186 | ) | $ | (13,065 | ) |
Amount
|
|||||
Reclassified
|
|||||
From
|
Affected Line Item in Condensed
|
||||
AOCL Component
|
AOCL
|
Statements of Operations
|
|||
(In thousands)
|
|||||
2013
|
|||||
Unrealized losses on available for sale securities
|
|||||
$ | (7 | ) |
Net gains on securities
|
||
- |
Net impairment loss recognized in earnings
|
||||
(7 | ) |
Total reclassifications before tax
|
|||
- |
Tax expense
|
||||
$ | (7 | ) |
Reclassifications, net of tax
|
||
Unrealized losses on cash flow hedges
|
|||||
$ | (94 | ) |
Interest expense
|
||
- |
Tax expense
|
||||
$ | (94 | ) |
Reclassification, net of tax
|
||
$ | (101 | ) |
Total reclassifications for the period, net of tax
|
||
2012
|
|||||
Unrealized losses on available for sale securities
|
|||||
$ | 692 |
Net gains on securities
|
|||
(177 | ) |
Net impairment loss recognized in earnings
|
|||
515 |
Total reclassifications before tax
|
||||
- |
Tax expense
|
||||
$ | 515 |
Reclassifications, net of tax
|
|||
Unrealized losses on cash flow hedges
|
|||||
$ | (185 | ) |
Interest expense
|
||
- |
Tax expense
|
||||
(185 | ) |
Reclassification, net of tax
|
|||
Unrealized losses on settled derivatives
|
|||||
$ | (145 | ) |
Interest expense
|
||
- |
Tax expense
|
||||
(145 | ) |
Reclassification, net of tax
|
|||
$ | 185 |
Total reclassifications for the period, net of tax
|
Three months
ended March 31,
|
||||||||
2013
|
2012
|
|||||||
Net income (annualized) to
|
||||||||
Average assets
|
0.93 | % | 0.42 | % | ||||
Average common shareholders’ equity
|
34.76 | 42.29 | ||||||
Net income per common share
|
||||||||
Basic
|
$ | 0.51 | $ | 0.29 | ||||
Diluted
|
0.27 | 0.07 |
(a)
|
These amounts are calculated using net income applicable to common stock.
|
Average Balances and Rates
|
||||||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||||||
March 31,
|
||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
Average
|
Average
|
|||||||||||||||||||||||
Balance
|
Interest
|
Rate(3)
|
Balance
|
Interest
|
Rate(3)
|
|||||||||||||||||||
Assets (1)
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Taxable loans
|
$ | 1,436,527 | $ | 20,649 | 5.81 | % | $ | 1,582,444 | $ | 24,270 | 6.16 | % | ||||||||||||
Tax-exempt loans (2)
|
5,884 | 61 | 4.20 | 7,239 | 76 | 4.22 | ||||||||||||||||||
Taxable securities
|
199,876 | 670 | 1.36 | 184,798 | 658 | 1.43 | ||||||||||||||||||
Tax-exempt securities (2)
|
24,200 | 238 | 3.99 | 27,145 | 296 | 4.39 | ||||||||||||||||||
Cash – interest bearing
|
186,065 | 120 | 0.26 | 318,573 | 199 | 0.25 | ||||||||||||||||||
Other investments
|
20,838 | 212 | 4.13 | 20,828 | 197 | 3.80 | ||||||||||||||||||
Interest Earning Assets
|
1,873,390 | 21,950 | 4.73 | 2,141,027 | 25,696 | 4.82 | ||||||||||||||||||
Cash and due from banks
|
45,583 | 56,080 | ||||||||||||||||||||||
Other assets, net
|
142,300 | 164,120 | ||||||||||||||||||||||
Total Assets
|
$ | 2,061,273 | $ | 2,361,227 | ||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||
Savings and interest-bearing checking
|
$ | 894,348 | 282 | 0.13 | $ | 1,053,896 | 472 | 0.18 | ||||||||||||||||
Time deposits
|
423,713 | 1,247 | 1.19 | 576,967 | 1,952 | 1.36 | ||||||||||||||||||
Other borrowings
|
67,802 | 865 | 5.17 | 83,384 | 1,172 | 5.65 | ||||||||||||||||||
Interest Bearing Liabilities
|
1,385,863 | 2,394 | 0.70 | 1,714,247 | 3,596 | 0.84 | ||||||||||||||||||
Non-interest bearing deposits
|
493,952 | 504,019 | ||||||||||||||||||||||
Other liabilities
|
41,683 | 39,252 | ||||||||||||||||||||||
Shareholders’ equity
|
139,775 | 103,709 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$ | 2,061,273 | $ | 2,361,227 | ||||||||||||||||||||
Net Interest Income
|
$ | 19,556 | $ | 22,100 | ||||||||||||||||||||
Net Interest Income as a Percent of Average Interest Earning Assets
|
4.21 | % | 4.14 | % |
(1)
|
All domestic.
|
(2)
|
Interest on tax-exempt loans and securities is not presented on a fully tax equivalent basis due to the current net operating loss carryforward position and the deferred tax asset valuation allowance.
|
(3)
|
Annualized.
|
Three months ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
(In thousands)
|
||||||||
Service charges on deposit accounts
|
$ | 3,406 | $ | 4,201 | ||||
Interchange income
|
1,757 | 2,322 | ||||||
Net gains (losses) on assets
|
||||||||
Mortgage loans
|
3,637 | 3,860 | ||||||
Securities
|
84 | 684 | ||||||
Other than temporary loss on securities available for sale
|
||||||||
Total impairment loss
|
- | (177 | ) | |||||
Loss recognized in other comprehensive income
|
- | - | ||||||
Net impairment loss recognized in earnings
|
- | (177 | ) | |||||
Mortgage loan servicing
|
622 | 736 | ||||||
Investment and insurance commissions
|
450 | 447 | ||||||
Bank owned life insurance
|
338 | 424 | ||||||
Title insurance fees
|
484 | 508 | ||||||
Increase in fair value of U.S. Treasury warrant
|
(1,045 | ) | (154 | ) | ||||
Other
|
1,335 | 1,733 | ||||||
Total non-interest income
|
$ | 11,068 | $ | 14,584 |
Three months ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
(Dollars in thousands)
|
||||||||
Mortgage loans originated
|
$ | 128,732 | $ | 112,798 | ||||
Mortgage loans sold
|
130,456 | 112,141 | ||||||
Mortgage loans sold with servicing rights released
|
14,537 | 15,340 | ||||||
Net gains on the sale of mortgage loans
|
3,637 | 3,860 | ||||||
Net gains as a percentage of mortgage loans sold (“Loan Sales Margin”)
|
2.79 | % | 3.44 | % | ||||
Fair value adjustments included in the Loan
|
||||||||
Sales Margin
|
(0.74 | ) | 0.92 |
Capitalized Mortgage Loan Servicing Rights
|
||||||||
Three months ended
March 31,
|
||||||||
2013
|
2012
|
|||||||
(In thousands)
|
||||||||
Balance at beginning of period
|
$ | 11,013 | $ | 11,229 | ||||
Originated servicing rights capitalized
|
1,029 | 924 | ||||||
Amortization
|
(1,210 | ) | (1,062 | ) | ||||
Decrease in valuation allowance
|
758 | 704 | ||||||
Balance at end of period
|
$ | 11,590 | $ | 11,795 | ||||
Valuation allowance at end of period
|
$ | 5,329 | $ | 5,840 |
Non-Interest Expense
|
||||||||
Three months ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
(In thousands)
|
||||||||
Compensation
|
$ | 8,205 | $ | 9,945 | ||||
Performance-based compensation
|
1,062 | 85 | ||||||
Payroll taxes and employee benefits
|
2,040 | 2,452 | ||||||
Compensation and employee benefits
|
11,307 | 12,482 | ||||||
Occupancy, net
|
2,424 | 2,716 | ||||||
Loan and collection
|
2,226 | 2,890 | ||||||
Data processing
|
1,916 | 1,933 | ||||||
Furniture, fixtures and equipment
|
1,032 | 1,196 | ||||||
Communications
|
780 | 973 | ||||||
Legal and professional fees
|
692 | 897 | ||||||
Provision for loss reimbursement on sold loans
|
663 | 432 | ||||||
Net losses on other real estate and repossessed assets
|
652 | 987 | ||||||
FDIC deposit insurance
|
630 | 857 | ||||||
Advertising
|
570 | 556 | ||||||
Interchange expense
|
410 | 406 | ||||||
Credit card and bank service fees
|
334 | 651 | ||||||
Supplies
|
250 | 394 | ||||||
Amortization of intangible assets
|
203 | 272 | ||||||
Vehicle service contract counterparty contingencies
|
127 | 471 | ||||||
Recoveries related to unfunded lending commitments
|
(19 | ) | (47 | ) | ||||
Other
|
1,276 | (17 | ) | |||||
Total non-interest expense
|
$ | 25,473 | $ | 28,049 |
·
|
Achieving at least six consecutive quarters of profitability (we have already achieved five consecutive quarters);
|
·
|
A forecast of future profitability that supports that the realization of the deferred tax assets is more likely than not; and
|
·
|
A forecast that future asset quality continues to be stable to improving and that other factors do not exist that could cause a significant adverse impact on future profitability.
|
Business Segments
|
||||||||
Three months ended
March 31,
|
||||||||
2013
|
2012
|
|||||||
(In thousands)
|
||||||||
Independent Bank
|
$ | 7,064 | $ | 3,542 | ||||
Mepco
|
543 | 1,027 | ||||||
Other(1)
|
(1,776 | ) | (1,041 | ) | ||||
Elimination
|
(24 | ) | (24 | ) | ||||
Net income
|
$ | 5,807 | $ | 3,504 |
(1)
|
Includes amounts relating to our parent company and certain insignificant operations.
|
Unrealized
|
||||||||||||||||
Amortized
Cost
|
Gains
|
Losses
|
Fair
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Securities available for sale
|
||||||||||||||||
March 31, 2013
|
$ | 283,436 | $ | 2,365 | $ | 1,867 | $ | 283,934 | ||||||||
December 31, 2012
|
208,929 | 2,070 | 2,586 | 208,413 |
Three months ended
|
||||||||
March 31,
|
||||||||
2013
|
2012
|
|||||||
(In thousands)
|
||||||||
Proceeds
|
$ | 1,800 | $ | 9,206 | ||||
Gross gains
|
$ | - | $ | 692 | ||||
Gross losses
|
(7 | ) | - | |||||
Net impairment charges
|
- | (177 | ) | |||||
Fair value adjustments
|
91 | (8 | ) | |||||
Net gains
|
$ | 84 | $ | 507 |
Non-performing assets(1)
|
||||||||
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
(Dollars in thousands)
|
||||||||
Non-accrual loans
|
$ | 27,821 | $ | 32,929 | ||||
Loans 90 days or more past due and still accruing interest
|
59 | 7 | ||||||
Total non-performing loans
|
27,880 | 32,936 | ||||||
Other real estate and repossessed assets
|
23,639 | 26,133 | ||||||
Total non-performing assets
|
$ | 51,519 | $ | 59,069 | ||||
As a percent of Portfolio Loans
|
||||||||
Non-performing loans
|
2.00 | % | 2.32 | % | ||||
Allowance for loan losses
|
2.93 | 3.12 | ||||||
Non-performing assets to total assets
|
2.45 | 2.92 | ||||||
Allowance for loan losses as a percent of non-performing loans
|
146.22 | 134.43 |
(1)
|
Excludes loans classified as “troubled debt restructured” that are not past due and vehicle service contract counterparty receivables, net.
|
Troubled debt restructurings (“TDR”)
|
||||||||||||
March 31, 2013
|
||||||||||||
Commercial
|
Retail
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Performing TDR’s
|
$ | 44,626 | $ | 83,985 | $ | 128,611 | ||||||
Non-performing TDR’s (1)
|
6,349 | 8,499 | (2) | 14,848 | ||||||||
Total
|
$ | 50,975 | $ | 92,484 | $ | 143,459 |
December 31, 2012 | ||||||||||||
Commercial |
Retail
|
Total
|
||||||||||
(In thousands) | ||||||||||||
Performing TDR’s
|
$ | 40,753 | $ | 85,977 | $ | 126,730 | ||||||
Non-performing TDR’s (1)
|
7,756 | 9,177 | (2) | 16,933 | ||||||||
Total
|
$ | 48,509 | $ | 95,154 | $ | 143,663 |
(1)
|
Included in the “Non-performing assets” table above.
|
(2)
|
Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.
|
Allowance for loan losses
|
Three months ended
|
|||||||||||||||
March 31,
|
||||||||||||||||
2013
|
2012
|
|||||||||||||||
Unfunded
|
Unfunded
|
|||||||||||||||
Loans
|
Commitments
|
Loans
|
Commitments
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Balance at beginning of period
|
$ | 44,275 | $ | 598 | $ | 58,884 | $ | 1,286 | ||||||||
Additions (deduction)
|
||||||||||||||||
Provision for loan losses
|
(691 | ) | - | 5,131 | - | |||||||||||
Recoveries credited to allowance
|
1,451 | - | 1,880 | - | ||||||||||||
Loans charged against the allowance
|
(4,270 | ) | - | (9,889 | ) | - | ||||||||||
Additions (deductions) included in non-interest expense
|
- | (19 | ) | - | (47 | ) | ||||||||||
Balance at end of period
|
$ | 40,765 | $ | 579 | $ | 56,006 | $ | 1,239 | ||||||||
Net loans charged against the allowance to average Portfolio Loans (annualized)
|
0.82 | % | 2.07 | % |
Allocation of the Allowance for Loan Losses
|
||||||||
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
(In thousands)
|
||||||||
Specific allocations
|
$ | 19,800 | $ | 21,009 | ||||
Other adversely rated commercial loans
|
1,969 | 2,419 | ||||||
Historical loss allocations
|
11,743 | 12,943 | ||||||
Additional allocations based on subjective factors
|
7,253 | 7,904 | ||||||
Total
|
$ | 40,765 | $ | 44,275 |
March 31,
|
December 31,
|
|||||||||||||||||
2013 | 2012 | |||||||||||||||||
Average
|
Average
|
|||||||||||||||||
Amount
|
Maturity
|
Rate
|
Amount
|
Maturity
|
Rate
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
Brokered CDs(1)
|
$ | 14,594 |
0.5 years
|
1.73 | % | $ | 14,591 |
0.6 years
|
1.70 | % | ||||||||
Fixed-rate FHLB advances
|
17,622 |
4.3 years
|
6.38 | 17,622 |
4.5 years
|
6.38 | ||||||||||||
Total
|
$ | 32,216 |
2.6 years
|
4.28 | % | $ | 32,213 |
2.7 years
|
4.26 | % |
(1)
|
Certain of these items have had their average maturity and rate altered through the use of derivative instruments, such as pay-fixed interest-rate swaps.
|
Capitalization
|
||||||||
March 31,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
(In thousands)
|
||||||||
Subordinated debentures
|
$ | 50,175 | $ | 50,175 | ||||
Amount not qualifying as regulatory capital
|
(1,507 | ) | (1,507 | ) | ||||
Amount qualifying as regulatory capital
|
48,668 | 48,668 | ||||||
Shareholders’ equity
|
||||||||
Preferred stock
|
85,299 | 84,204 | ||||||
Common stock
|
253,437 | 251,237 | ||||||
Accumulated deficit
|
(187,698 | ) | (192,408 | ) | ||||
Accumulated other comprehensive loss
|
(6,953 | ) | (8,058 | ) | ||||
Total shareholders’ equity
|
144,085 | 134,975 | ||||||
Total capitalization
|
$ | 192,753 | $ | 183,643 |
Regulatory Capital Ratios
|
Independent
Bank
Actual at
March 31, 2013
|
Minimum
Ratios
Established by
our Board
|
Required to be
Well-
Capitalized
|
|||||||||
Tier 1 capital to average total assets
|
9.62 | % | 8.00 | % | 5.00 | % | ||||||
Total capital to risk-weighted assets
|
15.84 | 11.00 | 10.00 |
Changes in Market Value of Portfolio Equity and Net Interest Income
|
||||||||||||||||
Market Value
|
||||||||||||||||
Change in Interest
|
Of Portfolio
|
Percent
|
Net Interest
|
Percent
|
||||||||||||
Rates
|
Equity(1)
|
Change
|
Income(2)
|
Change
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
March 31, 2013
|
||||||||||||||||
200 basis point rise
|
$ | 273,400 | 23.93 | % | $ | 80,700 | 7.60 | % | ||||||||
100 basis point rise
|
249,200 | 12.96 | 77,500 | 3.33 | ||||||||||||
Base-rate scenario
|
220,600 | - | 75,000 | - | ||||||||||||
100 basis point decline
|
191,200 | (13.33 | ) | 73,800 | (1.60 | ) | ||||||||||
December 31, 2012
|
||||||||||||||||
200 basis point rise
|
$ | 262,100 | 24.81 | % | $ | 81,200 | 6.01 | % | ||||||||
100 basis point rise
|
240,000 | 14.29 | 78,600 | 2.61 | ||||||||||||
Base-rate scenario
|
210,000 | - | 76,600 | - | ||||||||||||
100 basis point decline
|
180,400 | (14.10 | ) | 75,500 | (1.44 | ) |
(1)
|
Simulation analyses calculate the change in the net present value of our assets and liabilities, including debt and related financial derivative instruments, under parallel shifts in interest rates by discounting the estimated future cash flows using a market-based discount rate. Cash flow estimates incorporate anticipated changes in prepayment speeds and other embedded options.
|
(2)
|
Simulation analyses calculate the change in net interest income under immediate parallel shifts in interest rates over the next twelve months, based upon a static statement of financial condition, which includes debt and related financial derivative instruments, and do not consider loan fees.
|
|
●
|
Submission of a joint revised capital plan by November 30, 2011 to maintain sufficient capital at the Company on a consolidated basis and at the Bank on a stand-alone basis;
|
|
●
|
Submission of quarterly progress reports regarding disposition plans for any assets in excess of $1.0 million that are in ORE, are 90 days or more past due, are on our “watch list,” or were adversely classified in our most recent examination;
|
|
●
|
Enhanced reporting and monitoring at Mepco regarding risk management and the internal classification of assets; and
|
|
●
|
Enhanced interest rate risk modeling practices.
|
|
●
|
Submission of quarterly progress reports to the FRB and DIFS regarding disposition plans for any assets in excess of $1.0 million that are in ORE, are 90 days or more past due, are on our “watch list,” or are adversely classified;
|
|
●
|
Prior approval of the FRB and DIFS for the Bank to pay any dividend to the Company; and
|
|
●
|
Prior approval of the FRB and DIFS for the Company to pay any dividend to its shareholders, to make any distributions of interest, principal or other sums on subordinated debentures or trust preferred securities, to increase borrowings or guarantee any debt, and/or to purchase or redeem any of its stock.
|
(a)
|
Evaluation of Disclosure Controls and Procedures.
|
|
With the participation of management, our chief executive officer and chief financial officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a – 15(e) and 15d – 15(e)) for the period ended March 31, 2013, have concluded that, as of such date, our disclosure controls and procedures were effective.
|
(b)
|
Changes in Internal Controls.
|
|
During the quarter ended March 31, 2013, there were no changes in our internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
|
Item 1A.
|
Total Number of
|
Remaining
|
||||||||||||
Shares Purchased
|
Number of
|
||||||||||||
as Part of a
|
Shares Authorized
|
||||||||||||
Total Number of
|
Average Price
|
Publicly
|
for Purchase
|
||||||||||
Period
|
Shares Purchased
|
Paid Per Share
|
Announced Plan
|
Under the Plan
|
|||||||||
January 2013
|
2,433 | (1) | $ | 3.84 | - |
NA
|
|||||||
February 2013
|
- | - | - |
NA
|
|||||||||
March 2013
|
- | - | - |
NA
|
|||||||||
Total
|
2,433 | $ | 3.84 | - |
NA
|
(1)
|
A portion of the salary payable to our President and Chief Executive Officer, William B. Kessel, is payable in salary stock, which is issued on a bi-weekly basis in connection with our regular pay periods. The shares disclosed in this table include shares withheld from the shares that would otherwise have been issued to Mr. Kessel in order to satisfy tax withholding obligations. Subsequent to January, 2013 shares were no longer being withheld relating to Mr. Kessel’s salary stock. In addition, restricted stock granted in 2008 vested during January, 2013. The shares disclosed in this table also include shares withheld from the shares that would otherwise have been issued to certain officers in order to satisfy tax withholding obligations resulting from such vesting.
|
Item 3b.
|
Item 6.
|
(a)
|
The following exhibits (listed by number corresponding to the Exhibit Table as Item 601 in Regulation S-K) are filed with this report:
|
Computation of Earnings Per Share.
|
||
Certificate of the Chief Executive Officer of Independent Bank Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
|
||
Certificate of the Chief Financial Officer of Independent Bank Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
|
||
Certificate of the Chief Executive Officer of Independent Bank Corporation pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
|
||
Certificate of the Chief Financial Officer of Independent Bank Corporation pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
|
||
101.
|
INS Instance Document
|
|
101.
|
SCH XBRL Taxonomy Extension Schema Document
|
|
101.
|
CAL XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.
|
DEF XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.
|
LAB XBRL Taxonomy Extension Label Linkbase Document
|
|
101.
|
PRE XBRL Taxonomy Extension Presentation Linkbase Document
|
Date
|
May 8, 2013
|
By
|
/s/ Robert N. Shuster
|
||
Robert N. Shuster, Principal Financial
|
|||||
Officer
|
|||||
Date
|
May 8, 2013
|
By
|
/s/ James J. Twarozynski
|
||
James J. Twarozynski, Principal
|
|||||
Accounting Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Independent Bank Corporation;
|
2.
|
Based on my knowledge, this quarterly 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 quarterly report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly 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 we 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 quarterly report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
disclosed in this quarterly 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 the registrant's board of directors (or persons performing the equivalent functions):
|
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.
|
INDEPENDENT BANK CORPORATION
|
|
Date: May 8, 2013
|
/s/ William B. Kessel |
William B. Kessel | |
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Independent Bank Corporation;
|
2.
|
Based on my knowledge, this quarterly 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 quarterly report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly 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 we 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 quarterly report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
disclosed in this quarterly 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 the registrant's board of directors (or persons performing the equivalent functions):
|
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.
|
INDEPENDENT BANK CORPORATION
|
|
Date: May 8, 2013
|
/s/ Robert N. Shuster
|
Robert N. Shuster
|
|
|
Chief Financial Officer
|
INDEPENDENT BANK CORPORATION
|
|
Date: May 8, 2013
|
/s/ William B. Kessel
|
William B. Kessel
|
|
|
President and Chief Executive Officer
|
INDEPENDENT BANK CORPORATION
|
|
Date: May 8, 2013
|
/s/ Robert N. Shuster
|
Robert N. Shuster
|
|
|
Chief Financial Officer
|
Regulatory Matters (Details) (USD $)
|
Mar. 31, 2013
|
Dec. 31, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
---|---|---|---|---|
Regulatory Matters [Abstract] | ||||
Past due assets disposition plan amount to be reported, as per previous MOU | $ 1,000,000 | |||
Past due assets disposition plan amount to be reported | 1,000,000 | |||
Components of regulatory capital [Abstract] | ||||
Total shareholders' equity | 144,085,000 | 134,975,000 | 105,032,000 | 102,627,000 |
Add (deduct) [Abstract] | ||||
Accumulated other comprehensive loss | (6,953,000) | (8,058,000) | (13,065,000) | (11,921,000) |
Intangible assets | (3,772,000) | (3,975,000) | ||
Maximum percentage of allowance for loan losses and allowance for unfunded lending commitments (in hundredths) | 1.25% | |||
Consolidated [Member]
|
||||
Total capital to risk-weighted assets [Abstract] | ||||
Total risk-based capital | 212,720,000 | 204,663,000 | ||
Minimum for Adequately Capitalized Institutions, Amount | 109,270,000 | 111,268,000 | ||
Actual, Ratio (in hundredths) | 15.57% | 14.71% | ||
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | 8.00% | 8.00% | ||
Tier 1 capital to risk-weighted assets [Abstract] | ||||
Actual, Amount | 195,247,000 | 185,948,000 | ||
Minimum for Adequately Capitalized Institutions, Amount | 54,635,000 | 55,634,000 | ||
Actual, Ratio (in hundredths) | 14.29% | 13.37% | ||
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | 4.00% | 4.00% | ||
Tier 1 capital to average assets [Abstract] | ||||
Tier 1 capital | 195,247,000 | 185,948,000 | ||
Minimum for Adequately Capitalized Institutions, Amount | 82,248,000 | 92,026,000 | ||
Actual, Ratio (in hundredths) | 9.50% | 8.08% | ||
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | 4.00% | 4.00% | ||
Components of regulatory capital [Abstract] | ||||
Total shareholders' equity | 144,085,000 | 134,975,000 | ||
Add (deduct) [Abstract] | ||||
Qualifying trust preferred securities | 48,668,000 | 47,678,000 | ||
Accumulated other comprehensive loss | 6,953,000 | 8,058,000 | ||
Intangible assets | (3,772,000) | (3,975,000) | ||
Disallowed capitalized mortgage loan servicing rights | (687,000) | (788,000) | ||
Tier 1 capital | 195,247,000 | 185,948,000 | ||
Qualifying trust preferred securities | 0 | 990,000 | ||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets | 17,473,000 | 17,725,000 | ||
Total risk-based capital | 212,720,000 | 204,663,000 | ||
Actual, minimum board imposed and/or ratios necessary to be well capitalized [Abstract] | ||||
Total Capital to Risk-Weighted Assets (in hundredths) | 15.57% | 14.71% | ||
Tier 1 Capital to Average Total Assets (in hundredths) | 9.50% | 8.08% | ||
Independent Bank [Member]
|
||||
Total capital to risk-weighted assets [Abstract] | ||||
Total risk-based capital | 215,128,000 | 207,553,000 | ||
Minimum for Adequately Capitalized Institutions, Amount | 109,051,000 | 111,063,000 | ||
Minimum for Well Capitalized Institutions, Amount | 136,313,000 | 138,829,000 | ||
Actual, Ratio (in hundredths) | 15.78% | 14.95% | ||
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | 8.00% | 8.00% | ||
Minimum for Well-Capitalized Institutions, Ratio (in hundredths) | 10.00% | 10.00% | ||
Tier 1 capital to risk-weighted assets [Abstract] | ||||
Actual, Amount | 197,688,000 | 189,777,000 | ||
Minimum for Adequately Capitalized Institutions, Amount | 54,525,000 | 55,531,000 | ||
Minimum for Well-Capitalized Institutions, Amount | 81,788,000 | 83,297,000 | ||
Actual, Ratio (in hundredths) | 14.50% | 13.67% | ||
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | 4.00% | 4.00% | ||
Minimum for Well Capitalized Institutions, Ratio (in hundredths) | 6.00% | 6.00% | ||
Tier 1 capital to average assets [Abstract] | ||||
Tier 1 capital | 197,688,000 | 189,777,000 | ||
Minimum for Adequately Capitalized Institutions, Amount | 82,166,000 | 91,919,000 | ||
Minimum for Well-Capitalized Institutions, Amount | 102,707,000 | 114,899,000 | ||
Actual, Ratio (in hundredths) | 9.62% | 8.26% | ||
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | 4.00% | 4.00% | ||
Minimum for Well-Capitalized Institutions, Ratio (in hundredths) | 5.00% | 5.00% | ||
Components of regulatory capital [Abstract] | ||||
Total shareholders' equity | 195,095,000 | 186,384,000 | ||
Add (deduct) [Abstract] | ||||
Qualifying trust preferred securities | 0 | 0 | ||
Accumulated other comprehensive loss | 7,052,000 | 8,156,000 | ||
Intangible assets | (3,772,000) | (3,975,000) | ||
Disallowed capitalized mortgage loan servicing rights | (687,000) | (788,000) | ||
Tier 1 capital | 197,688,000 | 189,777,000 | ||
Qualifying trust preferred securities | 0 | 0 | ||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets | 17,440,000 | 17,776,000 | ||
Total risk-based capital | $ 215,128,000 | $ 207,553,000 | ||
Actual, minimum board imposed and/or ratios necessary to be well capitalized [Abstract] | ||||
Total Capital to Risk-Weighted Assets (in hundredths) | 15.78% | 14.95% | ||
Tier 1 Capital to Average Total Assets (in hundredths) | 9.62% | 8.26% | ||
Board Established Ratios [Member]
|
||||
Total capital to risk-weighted assets [Abstract] | ||||
Actual, Ratio (in hundredths) | 11.00% | |||
Tier 1 capital to average assets [Abstract] | ||||
Actual, Ratio (in hundredths) | 8.00% | |||
Actual, minimum board imposed and/or ratios necessary to be well capitalized [Abstract] | ||||
Total Capital to Risk-Weighted Assets (in hundredths) | 11.00% | |||
Tier 1 Capital to Average Total Assets (in hundredths) | 8.00% | |||
Minimum Ratio To Be Well Capitalized [Member]
|
||||
Total capital to risk-weighted assets [Abstract] | ||||
Actual, Ratio (in hundredths) | 10.00% | |||
Tier 1 capital to average assets [Abstract] | ||||
Actual, Ratio (in hundredths) | 5.00% | |||
Actual, minimum board imposed and/or ratios necessary to be well capitalized [Abstract] | ||||
Total Capital to Risk-Weighted Assets (in hundredths) | 10.00% | |||
Tier 1 Capital to Average Total Assets (in hundredths) | 5.00% |
Share Based Compensation (Details) (USD $)
|
3 Months Ended | 0 Months Ended | 3 Months Ended | 24 Months Ended | 3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
Mar. 31, 2013
Stock Options [Member]
|
Mar. 31, 2013
Restricted Stock [Member]
|
Apr. 23, 2013
Subsequent Event [Member]
|
Mar. 31, 2013
Director [Member]
|
Mar. 31, 2012
Director [Member]
|
Mar. 31, 2013
Chief Executive Officer [Member]
|
Mar. 31, 2012
Chief Executive Officer [Member]
|
Dec. 31, 2012
Chief Executive Officer [Member]
|
Mar. 31, 2013
Non-Employee Directors [Member]
|
Mar. 31, 2012
Non-Employee Directors [Member]
|
|
Salary Stock Arrangement with Individual, Share-based Payments [Line Items] | ||||||||||||
Number of additional shares approved for grant (in shares) | 100,000 | 500,000 | 300,000 | |||||||||
Annual salary increase | $ 20,000 | $ 15,000 | $ 200,000 | |||||||||
Shares issues as retainer fees (in shares) | 20,000 | 80,000 | ||||||||||
Total compensation expense (recovery) recognized | 100,000 | (100,000) | ||||||||||
Tax benefit relating to compensation expense recognized | 0 | 0 | 0 | 0 | ||||||||
Non employee directors share-based compensation expenses | 100,000 | 100,000 | ||||||||||
Total compensation cost not yet recognized | 1,100,000 | |||||||||||
Total compensation cost not yet recognized, period for recognition | 2 years 6 months | |||||||||||
Outstanding stock option grants and transaction [Roll Forward] | ||||||||||||
Outstanding, beginning balance (in shares) | 275,933 | |||||||||||
Granted (in shares) | 0 | |||||||||||
Exercised (in shares) | (5,834) | |||||||||||
Forfeited (in shares) | (1,166) | |||||||||||
Expired (in shares) | (1,940) | |||||||||||
Outstanding, ending balance (in shares) | 266,993 | |||||||||||
Vested and expected to vest, period end (in shares) | 251,892 | |||||||||||
Exercisable, period end (in shares) | 75,703 | |||||||||||
Weighted Average Exercise Price [Roll Forward] | ||||||||||||
Outstanding, beginning balance (in dollars per share) | $ 4.46 | |||||||||||
Exercised (in dollars per share) | $ 1.92 | |||||||||||
Forfeited (in dollars per share) | $ 2.39 | |||||||||||
Expired (in dollars per share) | $ 11.53 | |||||||||||
Outstanding, ending balance (in dollars per share) | $ 4.48 | |||||||||||
Vested and expected to vest, period end (in dollars per share) | $ 4.60 | |||||||||||
Exercisable, period end (in dollars per share) | $ 9.71 | |||||||||||
Weighted-Average Remaining Contractual Term [Abstract] | ||||||||||||
Outstanding, Weighted Average Remaining Contractual Term | 8 years 4 months 2 days | |||||||||||
Vested and Expected to Vest, Weighted-Average Remaining Contractual Term | 8 years 3 months 15 days | |||||||||||
Exercisable, Weighted Average Remaining Contractual Term | 6 years 9 months 7 days | |||||||||||
Aggregate intrinsic value [Abstract] | ||||||||||||
Outstanding, Intrinsic Value | 1,434,000 | |||||||||||
Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 1,344,000 | |||||||||||
Exercisable, Aggregate Intrinsic Value | 277,000 | |||||||||||
Number of Shares [Roll Forward] | ||||||||||||
Outstanding, beginning balance (in shares) | 375,416 | |||||||||||
Granted (in shares) | 0 | |||||||||||
Vested (in shares) | (14,636) | |||||||||||
Forfeited (in shares) | 0 | |||||||||||
Outstanding, ending balance (in shares) | 360,780 | |||||||||||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||||||||||
Outstanding, beginning balance (in dollars per share) | $ 6.21 | |||||||||||
Vested (in dollars per share) | $ 76.30 | |||||||||||
Outstanding, ending balance (in dollars per share) | $ 3.37 | |||||||||||
Information regarding options exercised [Abstract] | ||||||||||||
Intrinsic value | 15,000 | 0 | ||||||||||
Cash proceeds received | 11,000 | 0 | ||||||||||
Tax benefit realized | $ 0 | $ 0 |
Fair Values of Financial Instruments (Tables)
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
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Fair Values of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated recorded book balances and fair values | The estimated recorded book balances and fair values follow:
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Loans (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
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Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Analysis of allowance for loan losses by portfolio segment | An analysis of the allowance for loan losses by portfolio segment for the three months ended March 31, follows:
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Allowance for loan losses and recorded investment in loans by portfolio segment | Allowance for loan losses and recorded investment in loans by portfolio segment follows:
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Loans on non-accrual status and past due more than 90 days | Loans on non-accrual status and past due more than 90 days ("Non-performing Loans") follow:
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Aging analysis of loans by class | An aging analysis of loans by class follows:
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Impaired loans | Impaired loans are as follows :
Impaired loans by class are as follows (1):
(1) There were no impaired payment plan receivables at March 31, 2013 or December 31, 2012. |
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Average recorded investment in and interest income earned on impaired loans by class | Average recorded investment in and interest income earned on impaired loans by class for the three month periods ending March 31, follows (1):
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Troubled debt restructurings | Troubled debt restructurings follow:
(1) Included in non-performing loans table above. (2) Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. |
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Troubled debt restructuring during the period | Loans that have been classified as troubled debt restructurings during the three-month periods ended March 31 follow:
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Troubled debt restructuring during the past twelve months that subsequently defaulted | Loans that have been classified as troubled debt restructurings during the past twelve months and that have subsequently defaulted during the three-month periods ended March 31 follow:
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Summary of loan ratings by loan class | The following table summarizes loan ratings by loan class for our commercial loan segment:
For each of our mortgage and installment segment classes we generally monitor credit quality based on the credit scores of the borrowers. These credit scores are generally updated at least annually. The following table summarizes credit scores by loan class for our mortgage and installment loan segments:
(1) Credit scores have been updated within the last twelve months. Mepco Finance Corporation ("Mepco") is a wholly-owned subsidiary of our Bank that operates a vehicle service contract payment plan business throughout the United States. See Note #14 for more information about Mepco's business. As of March 31, 2013, approximately 94.9% of Mepco's outstanding payment plan receivables relate to programs in which a third party insurer or risk retention group is obligated to pay Mepco the full refund owing upon cancellation of the related service contract (including with respect to both the portion funded to the service contract seller and the portion funded to the administrator). These receivables are shown as "Full Refund" in the table below. Another approximately 4.9% of Mepco's outstanding payment plan receivables as of March 31, 2013, relate to programs in which a third party insurer or risk retention group is obligated to pay Mepco the refund owing upon cancellation only with respect to the unearned portion previously funded by Mepco to the administrator (but not to the service contract seller). These receivables are shown as "Partial Refund" in the table below. The balance of Mepco's outstanding payment plan receivables relate to programs in which there is no insurer or risk retention group that has any contractual liability to Mepco for any portion of the refund amount. These receivables are shown as "Other" in the table below. For each class of our payment plan receivables we monitor credit ratings of the counterparties as we evaluate the credit quality of this portfolio. The following table summarizes credit ratings of insurer or risk retention group counterparties by class of payment plan receivable:
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Fair Values of Financial Instruments (Details) (USD $)
|
Mar. 31, 2013
|
Dec. 31, 2012
|
||||
---|---|---|---|---|---|---|
Assets [Abstract] | ||||||
Cash and due from banks | $ 51,489,000 | $ 55,487,000 | ||||
Securities available for sale | 283,934,000 | 208,413,000 | ||||
Liabilities [Abstract] | ||||||
Subordinated debentures | 50,175,000 | 50,175,000 | ||||
Reciprocal deposits included in deposits with no stated maturity | 3,900,000 | 1,200,000 | ||||
Reciprocal deposits included in deposits with stated maturity | 42,000,000 | 32,000,000 | ||||
Recorded Book Balance [Member]
|
||||||
Assets [Abstract] | ||||||
Cash and due from banks | 51,489,000 | 55,487,000 | ||||
Interest bearing deposits | 170,141,000 | 124,295,000 | ||||
Interest bearing deposits - time | 6,973,000 | |||||
Trading securities | 201,000 | 110,000 | ||||
Securities available for sale | 283,934,000 | 208,413,000 | ||||
Federal Home Loan Bank and Federal Reserve Bank Stock | 20,838,000 | 20,838,000 | ||||
Net loans and loans held for sale | 1,387,651,000 | 1,425,643,000 | ||||
Accrued interest receivable | 6,154,000 | 5,814,000 | ||||
Derivative financial instruments | 1,159,000 | 1,368,000 | ||||
Liabilities [Abstract] | ||||||
Deposits with no stated maturity | 1,427,613,000 | [1] | 1,360,609,000 | [1] | ||
Deposits with stated maturity | 423,180,000 | [1] | 418,928,000 | [1] | ||
Other borrowings | 17,630,000 | 17,625,000 | ||||
Subordinated debentures | 50,175,000 | 50,175,000 | ||||
Accrued interest payable | 7,782,000 | 7,197,000 | ||||
Derivative financial instruments | 2,338,000 | 1,320,000 | ||||
Fair Value Measurements [Member]
|
||||||
Assets [Abstract] | ||||||
Cash and due from banks | 51,489,000 | 55,487,000 | ||||
Interest bearing deposits | 170,141,000 | 124,295,000 | ||||
Interest bearing deposits - time | 6,973,000 | |||||
Trading securities | 201,000 | 110,000 | ||||
Securities available for sale | 283,934,000 | 208,413,000 | ||||
Net loans and loans held for sale | 1,338,104,000 | 1,400,385,000 | ||||
Accrued interest receivable | 6,154,000 | 5,814,000 | ||||
Derivative financial instruments | 1,159,000 | 1,368,000 | ||||
Liabilities [Abstract] | ||||||
Deposits with no stated maturity | 1,427,613,000 | [1] | 1,360,609,000 | [1] | ||
Deposits with stated maturity | 425,026,000 | [1] | 420,374,000 | [1] | ||
Other borrowings | 21,230,000 | 21,463,000 | ||||
Subordinated debentures | 46,719,000 | 42,235,000 | ||||
Accrued interest payable | 7,782,000 | 7,197,000 | ||||
Derivative financial instruments | 2,338,000 | 1,320,000 | ||||
Quoted Prices in Active Markets for Identical Assets, (Level 1) [Member]
|
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Assets [Abstract] | ||||||
Cash and due from banks | 51,489,000 | 55,487,000 | ||||
Interest bearing deposits | 170,141,000 | 124,295,000 | ||||
Interest bearing deposits - time | 0 | |||||
Trading securities | 201,000 | 110,000 | ||||
Securities available for sale | 0 | 0 | ||||
Net loans and loans held for sale | 0 | 0 | ||||
Accrued interest receivable | 129,000 | 102,000 | ||||
Derivative financial instruments | 0 | 0 | ||||
Liabilities [Abstract] | ||||||
Deposits with no stated maturity | 1,427,613,000 | [1] | 1,360,609,000 | [1] | ||
Deposits with stated maturity | 0 | [1] | 0 | [1] | ||
Other borrowings | 0 | 0 | ||||
Subordinated debentures | 8,801,000 | 7,956,000 | ||||
Accrued interest payable | 3,199,000 | 2,942,000 | ||||
Derivative financial instruments | 0 | 0 | ||||
Significant Other Observable Inputs, (Level 2) [Member]
|
||||||
Assets [Abstract] | ||||||
Cash and due from banks | 0 | 0 | ||||
Interest bearing deposits | 0 | 0 | ||||
Interest bearing deposits - time | 6,973,000 | |||||
Trading securities | 0 | 0 | ||||
Securities available for sale | 283,934,000 | 208,413,000 | ||||
Net loans and loans held for sale | 37,554,000 | 50,779,000 | ||||
Accrued interest receivable | 1,130,000 | 934,000 | ||||
Derivative financial instruments | 1,159,000 | 1,368,000 | ||||
Liabilities [Abstract] | ||||||
Deposits with no stated maturity | 0 | [1] | 0 | [1] | ||
Deposits with stated maturity | 425,026,000 | [1] | 420,374,000 | [1] | ||
Other borrowings | 21,230,000 | 21,463,000 | ||||
Subordinated debentures | 37,918,000 | 34,279,000 | ||||
Accrued interest payable | 4,583,000 | 4,255,000 | ||||
Derivative financial instruments | 834,000 | 861,000 | ||||
Significant Unobservable Inputs, (Level 3) [Member]
|
||||||
Assets [Abstract] | ||||||
Cash and due from banks | 0 | 0 | ||||
Interest bearing deposits | 0 | 0 | ||||
Interest bearing deposits - time | 0 | |||||
Trading securities | 0 | 0 | ||||
Securities available for sale | 0 | 0 | ||||
Net loans and loans held for sale | 1,300,550,000 | 1,349,606,000 | ||||
Accrued interest receivable | 4,895,000 | 4,778,000 | ||||
Derivative financial instruments | 0 | 0 | ||||
Liabilities [Abstract] | ||||||
Deposits with no stated maturity | 0 | [1] | 0 | [1] | ||
Deposits with stated maturity | 0 | [1] | 0 | [1] | ||
Other borrowings | 0 | 0 | ||||
Subordinated debentures | 0 | 0 | ||||
Accrued interest payable | 0 | 0 | ||||
Derivative financial instruments | $ 1,504,000 | $ 459,000 | ||||
|
Earnings Per Common Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
|||||
Earnings Per Share Reconciliation [Abstract] | ||||||
Net Income Applicable to Common Stock | $ 4,712 | $ 2,448 | ||||
Convertible preferred stock dividends | 1,095 | 1,056 | ||||
Net income applicable to common stock for calculation of diluted earnings per share | $ 5,807 | $ 3,504 | ||||
Weighted average shares outstanding (in shares) | 9,266 | [1] | 8,534 | [1] | ||
Effect of convertible preferred stock (in shares) | 12,026 | 38,618 | ||||
Restricted stock units (in shares) | 361 | 140 | ||||
Stock units for deferred compensation plan for non-employee directors (in shares) | 117 | 26 | ||||
Effect of stock options (in shares) | 61 | 0 | ||||
Weighted average shares outstanding for calculation of diluted earnings per share (in shares) | 21,831 | 47,318 | ||||
Net income (loss) per common share [Abstract] | ||||||
Basic (in dollars per share) | $ 0.51 | [1] | $ 0.29 | [1] | ||
Diluted (in dollars per share) | $ 0.27 | $ 0.07 | ||||
Stock Options [Member]
|
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Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive shares excluded from computation of diluted loss per share (in shares) | 40,000 | 200,000 | ||||
Warrant [Member]
|
||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 346,154 | 346,154 | ||||
|
Loans, Receivables Past Due (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Loans on non-accrual status and past due more than 90 days (Non-performing loans) [Abstract] | ||
90+ and Still Accruing | $ 59 | $ 7 |
Non-Accrual | 27,821 | 32,929 |
Total Non-performing Loans | 27,880 | 32,936 |
Aging analysis of loans by class [Abstract] | ||
Loans Past Due 30-59 days | 11,387 | 16,980 |
Loans Past Due 60 to 89 days | 5,778 | 3,971 |
Loans Past Due 90+ days | 21,759 | 24,098 |
Total | 38,924 | 45,049 |
Loans not Past Due | 1,356,808 | 1,378,919 |
Total Loans | 1,395,732 | 1,423,968 |
Accrued Interest Included in Recorded Investment [Member]
|
||
Loans on non-accrual status and past due more than 90 days (Non-performing loans) [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 0 | 0 |
Total Non-performing Loans | 0 | 0 |
Aging analysis of loans by class [Abstract] | ||
Loans Past Due 30-59 days | 99 | 146 |
Loans Past Due 60 to 89 days | 80 | 43 |
Loans Past Due 90+ days | 0 | 0 |
Total | 179 | 189 |
Loans not Past Due | 4,691 | 4,640 |
Total Loans | 4,870 | 4,829 |
Commercial [Member] | Income Producing - Real Estate [Member]
|
||
Loans on non-accrual status and past due more than 90 days (Non-performing loans) [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 4,099 | 5,611 |
Total Non-performing Loans | 4,099 | 5,611 |
Aging analysis of loans by class [Abstract] | ||
Loans Past Due 30-59 days | 585 | 3,734 |
Loans Past Due 60 to 89 days | 188 | 609 |
Loans Past Due 90+ days | 1,972 | 2,826 |
Total | 2,745 | 7,169 |
Loans not Past Due | 222,460 | 215,623 |
Total Loans | 225,205 | 222,792 |
Commercial [Member] | Land, Land Development and Construction Real Estate [Member]
|
||
Loans on non-accrual status and past due more than 90 days (Non-performing loans) [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 2,991 | 4,062 |
Total Non-performing Loans | 2,991 | 4,062 |
Aging analysis of loans by class [Abstract] | ||
Loans Past Due 30-59 days | 58 | 336 |
Loans Past Due 60 to 89 days | 0 | 0 |
Loans Past Due 90+ days | 1,055 | 1,176 |
Total | 1,113 | 1,512 |
Loans not Past Due | 39,883 | 41,750 |
Total Loans | 40,996 | 43,262 |
Commercial [Member] | Commercial and Industrial [Member]
|
||
Loans on non-accrual status and past due more than 90 days (Non-performing loans) [Abstract] | ||
90+ and Still Accruing | 56 | 0 |
Non-Accrual | 4,449 | 5,080 |
Total Non-performing Loans | 4,505 | 5,080 |
Aging analysis of loans by class [Abstract] | ||
Loans Past Due 30-59 days | 2,080 | 2,522 |
Loans Past Due 60 to 89 days | 1,412 | 654 |
Loans Past Due 90+ days | 2,447 | 1,913 |
Total | 5,939 | 5,089 |
Loans not Past Due | 341,880 | 347,807 |
Total Loans | 347,819 | 352,896 |
Mortgage [Member] | 1-4 Family [Member]
|
||
Loans on non-accrual status and past due more than 90 days (Non-performing loans) [Abstract] | ||
90+ and Still Accruing | 3 | 7 |
Non-Accrual | 9,153 | 9,654 |
Total Non-performing Loans | 9,156 | 9,661 |
Aging analysis of loans by class [Abstract] | ||
Loans Past Due 30-59 days | 3,074 | 4,429 |
Loans Past Due 60 to 89 days | 2,393 | 1,115 |
Loans Past Due 90+ days | 9,156 | 9,661 |
Total | 14,623 | 15,205 |
Loans not Past Due | 276,381 | 279,132 |
Total Loans | 291,004 | 294,337 |
Mortgage [Member] | Resort Lending [Member]
|
||
Loans on non-accrual status and past due more than 90 days (Non-performing loans) [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 3,878 | 4,861 |
Total Non-performing Loans | 3,878 | 4,861 |
Aging analysis of loans by class [Abstract] | ||
Loans Past Due 30-59 days | 515 | 748 |
Loans Past Due 60 to 89 days | 565 | 370 |
Loans Past Due 90+ days | 3,878 | 4,861 |
Total | 4,958 | 5,979 |
Loans not Past Due | 158,917 | 164,414 |
Total Loans | 163,875 | 170,393 |
Mortgage [Member] | Home Equity Line of Credit - 1st Lien [Member]
|
||
Loans on non-accrual status and past due more than 90 days (Non-performing loans) [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 382 | 529 |
Total Non-performing Loans | 382 | 529 |
Aging analysis of loans by class [Abstract] | ||
Loans Past Due 30-59 days | 402 | 453 |
Loans Past Due 60 to 89 days | 80 | 51 |
Loans Past Due 90+ days | 382 | 529 |
Total | 864 | 1,033 |
Loans not Past Due | 17,871 | 18,003 |
Total Loans | 18,735 | 19,036 |
Mortgage [Member] | Home Equity Line of Credit - 2nd Lien [Member]
|
||
Loans on non-accrual status and past due more than 90 days (Non-performing loans) [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 665 | 685 |
Total Non-performing Loans | 665 | 685 |
Aging analysis of loans by class [Abstract] | ||
Loans Past Due 30-59 days | 664 | 442 |
Loans Past Due 60 to 89 days | 110 | 32 |
Loans Past Due 90+ days | 665 | 685 |
Total | 1,439 | 1,159 |
Loans not Past Due | 43,180 | 44,806 |
Total Loans | 44,619 | 45,965 |
Installment [Member] | Home Equity Installment - 1st Lien [Member]
|
||
Loans on non-accrual status and past due more than 90 days (Non-performing loans) [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 1,167 | 1,278 |
Total Non-performing Loans | 1,167 | 1,278 |
Aging analysis of loans by class [Abstract] | ||
Loans Past Due 30-59 days | 469 | 599 |
Loans Past Due 60 to 89 days | 399 | 140 |
Loans Past Due 90+ days | 1,167 | 1,278 |
Total | 2,035 | 2,017 |
Loans not Past Due | 29,065 | 30,368 |
Total Loans | 31,100 | 32,385 |
Installment [Member] | Home Equity Installment - 2nd Lien [Member]
|
||
Loans on non-accrual status and past due more than 90 days (Non-performing loans) [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 606 | 675 |
Total Non-performing Loans | 606 | 675 |
Aging analysis of loans by class [Abstract] | ||
Loans Past Due 30-59 days | 381 | 430 |
Loans Past Due 60 to 89 days | 35 | 125 |
Loans Past Due 90+ days | 606 | 675 |
Total | 1,022 | 1,230 |
Loans not Past Due | 37,484 | 38,956 |
Total Loans | 38,506 | 40,186 |
Installment [Member] | Loans Not Secured By Real Estate [Member]
|
||
Loans on non-accrual status and past due more than 90 days (Non-performing loans) [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 396 | 390 |
Total Non-performing Loans | 396 | 390 |
Aging analysis of loans by class [Abstract] | ||
Loans Past Due 30-59 days | 1,112 | 899 |
Loans Past Due 60 to 89 days | 197 | 259 |
Loans Past Due 90+ days | 396 | 390 |
Total | 1,705 | 1,548 |
Loans not Past Due | 111,309 | 113,751 |
Total Loans | 113,014 | 115,299 |
Installment [Member] | Others 2 [Member]
|
||
Loans on non-accrual status and past due more than 90 days (Non-performing loans) [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 0 | 0 |
Total Non-performing Loans | 0 | 0 |
Aging analysis of loans by class [Abstract] | ||
Loans Past Due 30-59 days | 13 | 24 |
Loans Past Due 60 to 89 days | 5 | 12 |
Loans Past Due 90+ days | 0 | 0 |
Total | 18 | 36 |
Loans not Past Due | 2,530 | 2,689 |
Total Loans | 2,548 | 2,725 |
Payment Plan Receivable [Member] | Full Refund [Member]
|
||
Loans on non-accrual status and past due more than 90 days (Non-performing loans) [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 18 | 57 |
Total Non-performing Loans | 18 | 57 |
Aging analysis of loans by class [Abstract] | ||
Loans Past Due 30-59 days | 1,937 | 2,249 |
Loans Past Due 60 to 89 days | 385 | 552 |
Loans Past Due 90+ days | 18 | 57 |
Total | 2,340 | 2,858 |
Loans not Past Due | 71,992 | 77,335 |
Total Loans | 74,332 | 80,193 |
Payment Plan Receivable [Member] | Partial Refund [Member]
|
||
Loans on non-accrual status and past due more than 90 days (Non-performing loans) [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 17 | 38 |
Total Non-performing Loans | 17 | 38 |
Aging analysis of loans by class [Abstract] | ||
Loans Past Due 30-59 days | 94 | 112 |
Loans Past Due 60 to 89 days | 6 | 46 |
Loans Past Due 90+ days | 17 | 38 |
Total | 117 | 196 |
Loans not Past Due | 3,716 | 4,119 |
Total Loans | 3,833 | 4,315 |
Payment Plan Receivable [Member] | Others [Member]
|
||
Loans on non-accrual status and past due more than 90 days (Non-performing loans) [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 0 | 9 |
Total Non-performing Loans | 0 | 9 |
Aging analysis of loans by class [Abstract] | ||
Loans Past Due 30-59 days | 3 | 3 |
Loans Past Due 60 to 89 days | 3 | 6 |
Loans Past Due 90+ days | 0 | 9 |
Total | 6 | 18 |
Loans not Past Due | 140 | 166 |
Total Loans | $ 146 | $ 184 |
Shareholders' Equity (Details) (USD $)
|
3 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
Nov. 15, 2011
|
Mar. 31, 2013
Series B Preferred Stock [Member]
|
Mar. 31, 2013
Common Stock [Member]
|
Apr. 16, 2010
UST [Member]
Series A Preferred Stock [Member]
|
Apr. 02, 2010
UST [Member]
Series A Preferred Stock [Member]
|
Mar. 31, 2013
UST [Member]
Series B Preferred Stock [Member]
Director
|
Dec. 31, 2012
UST [Member]
Series B Preferred Stock [Member]
|
Apr. 02, 2010
UST [Member]
Series B Preferred Stock [Member]
|
Apr. 16, 2010
UST [Member]
Series B Preferred Stock [Member]
Amended and Restated Warrants [Member]
|
Apr. 30, 2010
UST [Member]
Common Stock [Member]
Amended and Restated Warrants [Member]
|
Apr. 16, 2010
UST [Member]
Common Stock [Member]
Amended and Restated Warrants [Member]
|
Dec. 12, 2008
UST [Member]
Common Stock [Member]
Amended and Restated Warrants [Member]
|
Mar. 31, 2013
Dutchess [Member]
Common Stock [Member]
|
Dec. 31, 2012
Dutchess [Member]
Common Stock [Member]
|
Dec. 31, 2011
Dutchess [Member]
Common Stock [Member]
|
Dec. 31, 2010
Dutchess [Member]
Common Stock [Member]
|
Jul. 07, 2010
Dutchess [Member]
Common Stock [Member]
|
|
Class of Stock [Line Items] | |||||||||||||||||||
Series A Fixed Rate Cumulative Perpetual Preferred Stock (in shares) | 72,000 | ||||||||||||||||||
Liquidation preference (in dollars per share) | $ 1,000 | $ 1,000 | |||||||||||||||||
Warrants issued to purchase common stock (in shares) | 346,154 | 346,154 | |||||||||||||||||
Series B Preferred Stock issued (in shares) | 74,426 | 74,426 | 74,426 | ||||||||||||||||
Warrants, exercise price (in dollars per share) | $ 7.234 | ||||||||||||||||||
Amended warrants expiration date | Dec. 12, 2018 | ||||||||||||||||||
Accrued dividends | $ 2,400,000 | $ 11,800,000 | $ 10,700,000 | ||||||||||||||||
Annual dividend rate (in hundredths) | 5.00% | ||||||||||||||||||
Future annual dividend rate (in hundredths) | 9.00% | ||||||||||||||||||
Number of additional directors that could be elected | 2 | ||||||||||||||||||
Annual cash dividends on preferred stock | 4,300,000 | ||||||||||||||||||
Annual cash dividend payable after December 13, 2013 | 7,800,000 | ||||||||||||||||||
Terms of Series B Preferred Stock [Abstract] | |||||||||||||||||||
Amount of common stock in exchange of trust preferred securities | 40,000,000 | ||||||||||||||||||
Minimum redeemable preferred stock | 18,600,000 | 100,000,000 | |||||||||||||||||
Numerator of common shares fraction (in dollars per share) | $ 750 | ||||||||||||||||||
Denominator of common stocks fraction (in dollars per share) | $ 7.234 | ||||||||||||||||||
Series B Preferred Stock convertible number of common stock (in shares) | 9,400,000 | ||||||||||||||||||
Period of mandatory conversion of Series B Preferred Stock | seventh anniversary (April 16, 2017) | ||||||||||||||||||
Numerator of common stock fraction upon mandatory liquidations (in dollars per share) | $ 1,000 | ||||||||||||||||||
Accrued dividend (in dollars per share) | $ 158 | $ 144 | |||||||||||||||||
Maximum number of common stock to be issued on conversion (in shares) | 14,400,000 | ||||||||||||||||||
Preferred stock redemption price (in dollars per share) | $ 1,000 | ||||||||||||||||||
Period used to determine price of stock | 20 days | ||||||||||||||||||
Percentage of preferred stock that can be redeemed (in hundredths) | 25.00% | ||||||||||||||||||
Aggregate liquidation amount (in hundredths) | 5.00% | ||||||||||||||||||
Updated guidance amount | 100,000 | ||||||||||||||||||
Minimum amount required for liquidation | 3,700,000 | ||||||||||||||||||
Commitment to purchase common stock | 15,000,000 | ||||||||||||||||||
Period committed to purchase common stock | 36 months | ||||||||||||||||||
Discount on sales price of common stock (in hundredths) | 5.00% | ||||||||||||||||||
Number of shares sold (in shares) | 1,400,000 | 170,000 | 450,000 | 430,000 | 350,000 | ||||||||||||||
Aggregate purchase price of common stock sold | 4,200,000 | ||||||||||||||||||
Number of shares that require shareholder approval to sell (in shares) | 2,600,000 | ||||||||||||||||||
Additional funds available | $ 10,800,000 | ||||||||||||||||||
Shareholders with certain limited exceptions (in hundredths) | 5.00% | ||||||||||||||||||
Number of Series C Junior Participating Preferred Stock purchase by each right | 1/1000 | ||||||||||||||||||
Discount to current market price of the common stock (in hundredths) | 50.00% | ||||||||||||||||||
Beneficial ownership level (in hundredths) | 4.99% |
Income Tax (Details) (USD $)
|
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2013
|
Mar. 31, 2012
|
Dec. 31, 2012
|
|
Income Tax [Abstract] | |||
Gross unrecognized tax benefits | $ 1,900,000 | $ 1,900,000 | |
Deferred Tax Assets, Valuation Allowance | 62,500,000 | 65,100,000 | |
Alternative minimum tax | 40,000 | ||
Income tax expense (benefit) | $ 35,000 | $ 0 |
New Accounting Standards
|
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
New Accounting Standards [Abstract] | |
New Accounting Standards | 2. New Accounting Standards In February, 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-02, "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income". This ASU amended guidance on the reporting of reclassifications out of accumulated other comprehensive income. The amendments in this guidance require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. This amended guidance became effective for us at January 1, 2013 and was applied prospectively. The effect of adopting this standard did not have a material impact on our consolidated operating results or financial condition, but the additional disclosures are included in note #16. |