INDIANA | 35-1546989 |
(State or other jurisdiction | (I.R.S. Employer |
incorporation or organization) | Identification No.) |
One First Financial Plaza, Terre Haute, IN | 47807 |
(Address of principal executive office) | (Zip Code) |
(812)238-6000 | |
(Registrant's telephone number, including area code) |
Large accelerated filer ¨ | Accelerated filer x |
Non-accelerated filer ¨ (Do not check if a smaller reporting company) | Smaller reporting company ¨ |
Page No. | |
Item 1. | Financial Statements |
June 30, 2014 | December 31, 2013 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 84,774 | $ | 71,033 | |||
Federal funds sold | 9,370 | 4,276 | |||||
Securities available-for-sale | 912,495 | 914,560 | |||||
Loans: | |||||||
Commercial | 1,046,883 | 1,042,138 | |||||
Residential | 477,265 | 482,377 | |||||
Consumer | 268,403 | 268,033 | |||||
1,792,551 | 1,792,548 | ||||||
Less: | |||||||
Unearned Income | 111 | (1,120 | ) | ||||
Allowance for loan losses | (18,255 | ) | (20,068 | ) | |||
1,774,407 | 1,771,360 | ||||||
Restricted Stock | 21,064 | 21,057 | |||||
Accrued interest receivable | 10,950 | 11,554 | |||||
Premises and equipment, net | 51,754 | 51,449 | |||||
Bank-owned life insurance | 79,863 | 79,035 | |||||
Goodwill | 39,489 | 39,489 | |||||
Other intangible assets | 4,388 | 4,935 | |||||
Other real estate owned | 5,190 | 5,291 | |||||
FDIC Indemnification Asset | 420 | 1,055 | |||||
Other assets | 39,759 | 43,624 | |||||
TOTAL ASSETS | $ | 3,033,923 | $ | 3,018,718 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Deposits: | |||||||
Non-interest-bearing | $ | 505,846 | $ | 506,815 | |||
Interest-bearing: | |||||||
Certificates of deposit of $100 or more | 168,799 | 179,177 | |||||
Other interest-bearing deposits | 1,758,438 | 1,772,799 | |||||
2,433,083 | 2,458,791 | ||||||
Short-term borrowings | 73,420 | 59,592 | |||||
Other borrowings | 63,140 | 58,288 | |||||
Other liabilities | 58,534 | 55,852 | |||||
TOTAL LIABILITIES | 2,628,177 | 2,632,523 | |||||
Shareholders’ equity | |||||||
Common stock, $.125 stated value per share; | |||||||
Authorized shares-40,000,000 | |||||||
Issued shares-14,538,132 in 2014 and 14,516,113 in 2013 | |||||||
Outstanding shares-13,355,272 in 2014 and 13,343,029 in 2013 | 1,812 | 1,811 | |||||
Additional paid-in capital | 71,557 | 71,074 | |||||
Retained earnings | 366,858 | 357,083 | |||||
Accumulated other comprehensive loss | (4,320 | ) | (13,969 | ) | |||
Less: Treasury shares at cost-1,182,860 in 2014 and 1,173,084 in 2013 | (30,161 | ) | (29,804 | ) | |||
TOTAL SHAREHOLDERS’ EQUITY | 405,746 | 386,195 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 3,033,923 | $ | 3,018,718 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||
INTEREST INCOME: | |||||||||||||||
Loans, including related fees | $ | 21,625 | $ | 22,576 | $ | 43,843 | $ | 46,030 | |||||||
Securities: | |||||||||||||||
Taxable | 4,298 | 3,479 | 8,742 | 6,694 | |||||||||||
Tax-exempt | 1,766 | 1,761 | 3,512 | 3,531 | |||||||||||
Other | 426 | 489 | 842 | 992 | |||||||||||
TOTAL INTEREST INCOME | 28,115 | 28,305 | 56,939 | 57,247 | |||||||||||
INTEREST EXPENSE: | |||||||||||||||
Deposits | 1,233 | 1,534 | 2,523 | 3,276 | |||||||||||
Short-term borrowings | 22 | 19 | 36 | 39 | |||||||||||
Other borrowings | 254 | 1,014 | 632 | 2,021 | |||||||||||
TOTAL INTEREST EXPENSE | 1,509 | 2,567 | 3,191 | 5,336 | |||||||||||
NET INTEREST INCOME | 26,606 | 25,738 | 53,748 | 51,911 | |||||||||||
Provision for loan losses | (356 | ) | 2,960 | 1,604 | 5,981 | ||||||||||
NET INTEREST INCOME AFTER PROVISION | |||||||||||||||
FOR LOAN LOSSES | 26,962 | 22,778 | 52,144 | 45,930 | |||||||||||
NON-INTEREST INCOME: | |||||||||||||||
Trust and financial services | 1,414 | 1,403 | 2,903 | 2,929 | |||||||||||
Service charges and fees on deposit accounts | 2,761 | 2,394 | 5,245 | 4,648 | |||||||||||
Other service charges and fees | 2,989 | 2,726 | 5,828 | 5,226 | |||||||||||
Securities gains/(losses), net | (1 | ) | 3 | (1 | ) | 7 | |||||||||
Insurance commissions | 1,852 | 1,941 | 3,765 | 3,904 | |||||||||||
Gain on sales of mortgage loans | 457 | 943 | 833 | 1,906 | |||||||||||
Other | 93 | 253 | 1,103 | 920 | |||||||||||
TOTAL NON-INTEREST INCOME | 9,565 | 9,663 | 19,676 | 19,540 | |||||||||||
NON-INTEREST EXPENSE: | |||||||||||||||
Salaries and employee benefits | 13,887 | 13,713 | 27,983 | 27,309 | |||||||||||
Occupancy expense | 1,789 | 1,576 | 3,714 | 3,098 | |||||||||||
Equipment expense | 1,904 | 1,537 | 3,562 | 3,038 | |||||||||||
FDIC Expense | 473 | 502 | 960 | 1,059 | |||||||||||
Other | 5,996 | 6,055 | 11,535 | 11,078 | |||||||||||
TOTAL NON-INTEREST EXPENSE | 24,049 | 23,383 | 47,754 | 45,582 | |||||||||||
INCOME BEFORE INCOME TAXES | 12,478 | 9,058 | 24,066 | 19,888 | |||||||||||
Provision for income taxes | 3,990 | 2,612 | 7,747 | 5,749 | |||||||||||
NET INCOME | 8,488 | 6,446 | 16,319 | 14,139 | |||||||||||
OTHER COMPREHENSIVE INCOME | |||||||||||||||
Change in unrealized gains/losses on securities, net of reclassifications and taxes | 4,116 | (10,559 | ) | 9,419 | (12,226 | ) | |||||||||
Change in funded status of post retirement benefits, net of taxes | 115 | 338 | 230 | 552 | |||||||||||
COMPREHENSIVE INCOME | $ | 12,719 | $ | (3,775 | ) | $ | 25,968 | $ | 2,465 | ||||||
PER SHARE DATA | |||||||||||||||
Basic and Diluted Earnings per Share | $ | 0.63 | $ | 0.48 | $ | 1.22 | $ | 1.06 | |||||||
Dividends per Share | $ | 0.49 | $ | 0.48 | $ | 0.49 | $ | 0.48 | |||||||
Weighted average number of shares outstanding (in thousands) | 13,355 | 13,307 | 13,352 | 13,304 |
Common Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Treasury Stock | Total | ||||||||||||||||||
Balance, April 1, 2013 | $ | 1,809 | $ | 70,171 | $ | 346,035 | $ | (8,925 | ) | $ | (30,707 | ) | $ | 378,383 | |||||||||
Net income | — | — | 6,446 | — | — | 6,446 | |||||||||||||||||
Other comprehensive income | — | — | — | (10,221 | ) | — | (10,221 | ) | |||||||||||||||
Omnibus Equity Incentive Plan | — | 183 | — | — | — | 183 | |||||||||||||||||
Cash Dividends, $.48 per share | — | — | (6,389 | ) | — | — | (6,389 | ) | |||||||||||||||
Balance, June 30, 2013 | $ | 1,809 | $ | 70,354 | $ | 346,092 | $ | (19,146 | ) | $ | (30,707 | ) | $ | 368,402 | |||||||||
Balance, April 1, 2014 | $ | 1,812 | $ | 71,315 | $ | 364,914 | $ | (8,551 | ) | $ | (30,161 | ) | $ | 399,329 | |||||||||
Net income | — | — | 8,488 | — | — | 8,488 | |||||||||||||||||
Other comprehensive income | — | — | — | 4,231 | — | 4,231 | |||||||||||||||||
Omnibus Equity Incentive Plan | — | 242 | — | — | — | 242 | |||||||||||||||||
Cash Dividends, $.49 per share | — | — | (6,544 | ) | — | — | (6,544 | ) | |||||||||||||||
Balance, June 30, 2014 | $ | 1,812 | $ | 71,557 | $ | 366,858 | $ | (4,320 | ) | $ | (30,161 | ) | $ | 405,746 |
Common Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Treasury Stock | Total | ||||||||||||||||||
Balance January 1, 2013 | $ | 1,808 | $ | 69,989 | $ | 338,342 | $ | (7,472 | ) | $ | (30,545 | ) | $ | 372,122 | |||||||||
Net income | — | — | 14,139 | — | — | 14,139 | |||||||||||||||||
Other comprehensive income | — | — | — | (11,674 | ) | — | (11,674 | ) | |||||||||||||||
Treasury stock purchase (5,354 shares) | — | — | — | — | (162 | ) | (162 | ) | |||||||||||||||
Omnibus Equity Incentive Plan | 1 | 365 | — | — | — | 366 | |||||||||||||||||
Cash Dividends, $.48 per share | — | — | (6,389 | ) | — | — | (6,389 | ) | |||||||||||||||
Balance, June 30, 2013 | $ | 1,809 | $ | 70,354 | $ | 346,092 | $ | (19,146 | ) | $ | (30,707 | ) | $ | 368,402 | |||||||||
Balance, January 1, 2014 | $ | 1,811 | $ | 71,074 | $ | 357,083 | $ | (13,969 | ) | $ | (29,804 | ) | $ | 386,195 | |||||||||
Net income | — | — | 16,319 | — | — | 16,319 | |||||||||||||||||
Other comprehensive income (loss) | — | — | — | 9,649 | — | 9,649 | |||||||||||||||||
Treasury stock purchase (9,776 shares) | — | — | — | — | (357 | ) | (357 | ) | |||||||||||||||
Omnibus Equity Incentive Plan | 1 | 483 | — | — | — | 484 | |||||||||||||||||
Cash Dividends, $.49 per share | — | — | (6,544 | ) | — | — | (6,544 | ) | |||||||||||||||
Balance, June 30, 2014 | $ | 1,812 | $ | 71,557 | $ | 366,858 | $ | (4,320 | ) | $ | (30,161 | ) | $ | 405,746 |
Six Months Ended June 30, | |||||||
2014 | 2013 | ||||||
(Unaudited) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 16,319 | $ | 14,139 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Net amortization (accretion) of premiums and discounts on investments | 1,318 | 1,465 | |||||
Provision for loan losses | 1,604 | 5,981 | |||||
Securities (gains) losses | 1 | (7 | ) | ||||
(Gain) loss on sale of other real estate | 62 | 51 | |||||
Restricted stock compensation | 484 | 366 | |||||
Depreciation and amortization | 2,943 | 2,705 | |||||
Other, net | 1,394 | 329 | |||||
NET CASH FROM OPERATING ACTIVITIES | 24,125 | 25,029 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from sales of securities available-for-sale | 355 | 5,023 | |||||
Redemption of restricted stock | — | 250 | |||||
Purchases of restricted stock | (7 | ) | (8 | ) | |||
Calls, maturities and principal reductions on securities available-for-sale | 65,595 | 86,246 | |||||
Purchases of securities available-for-sale | (50,051 | ) | (259,646 | ) | |||
Loans made to customers, net of repayment | (5,384 | ) | 44,345 | ||||
Proceeds from sales of other real estate owned | 841 | 966 | |||||
Net change in federal funds sold | (5,094 | ) | 10,585 | ||||
Additions to premises and equipment | (2,701 | ) | (1,280 | ) | |||
NET CASH FROM INVESTING ACTIVITIES | 3,554 | (113,519 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net change in deposits | (26,004 | ) | 2,877 | ||||
Net change in short-term borrowings | 13,828 | (11,357 | ) | ||||
Proceeds from other borrowings | 100,000 | 95,000 | |||||
Maturities of other borrowings | (95,000 | ) | (5,000 | ) | |||
Purchase of treasury stock | (357 | ) | (162 | ) | |||
Dividends paid | (6,405 | ) | (6,378 | ) | |||
NET CASH FROM FINANCING ACTIVITIES | (13,938 | ) | 74,980 | ||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 13,741 | (13,510 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 71,033 | 87,230 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 84,774 | $ | 73,720 |
1. | Significant Accounting Policies |
2. | Allowance for Loan Losses |
Allowance for Loan Losses: | June 30, 2014 | |||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Unallocated | Total | |||||||||||||||
Beginning balance | $ | 12,453 | $ | 1,581 | $ | 3,864 | $ | 2,510 | $ | 20,408 | ||||||||||
Provision for loan losses* | (1,051 | ) | (54 | ) | 533 | (248 | ) | (820 | ) | |||||||||||
Loans charged -off | (710 | ) | (633 | ) | (982 | ) | — | (2,325 | ) | |||||||||||
Recoveries | 158 | 480 | 354 | — | 992 | |||||||||||||||
Ending Balance | $ | 10,850 | $ | 1,374 | $ | 3,769 | $ | 2,262 | $ | 18,255 |
Allowance for Loan Losses: | June 30, 2013 | |||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Unallocated | Total | |||||||||||||||
Beginning balance | $ | 14,144 | $ | 5,400 | $ | 3,481 | $ | 2,247 | $ | 25,272 | ||||||||||
Provision for loan losses* | 1,660 | 303 | 611 | 126 | 2,700 | |||||||||||||||
Loans charged -off | (1,435 | ) | (4,127 | ) | (811 | ) | — | (6,373 | ) | |||||||||||
Recoveries | 162 | 16 | 356 | — | 534 | |||||||||||||||
Ending Balance | $ | 14,531 | $ | 1,592 | $ | 3,637 | $ | 2,373 | $ | 22,133 |
Allowance for Loan Losses: | June 30, 2014 | |||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Unallocated | Total | |||||||||||||||
Beginning balance | $ | 12,450 | $ | 1,585 | $ | 3,650 | $ | 2,383 | $ | 20,068 | ||||||||||
Provision for loan losses* | (319 | ) | 12 | 1,333 | (121 | ) | 905 | |||||||||||||
Loans charged -off | (1,646 | ) | (805 | ) | (2,035 | ) | (4,486 | ) | ||||||||||||
Recoveries | 365 | 582 | 821 | 1,768 | ||||||||||||||||
Ending Balance | $ | 10,850 | $ | 1,374 | $ | 3,769 | $ | 2,262 | $ | 18,255 |
Allowance for Loan Losses: | June 30, 2013 | |||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Unallocated | Total | |||||||||||||||
Beginning balance | $ | 10,987 | $ | 5,426 | $ | 3,879 | $ | 1,666 | $ | 21,958 | ||||||||||
Provision for loan losses* | 2,924 | 500 | 844 | 707 | 4,975 | |||||||||||||||
Loans charged -off | (1,885 | ) | (4,399 | ) | (1,837 | ) | (8,121 | ) | ||||||||||||
Recoveries | 2,505 | 65 | 751 | 3,321 | ||||||||||||||||
Ending Balance | $ | 14,531 | $ | 1,592 | $ | 3,637 | $ | 2,373 | $ | 22,133 |
Allowance for Loan Losses | June 30, 2014 | |||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Unallocated | Total | |||||||||||||||
Individually evaluated for impairment | $ | 2,590 | $ | — | $ | — | $ | — | $ | 2,590 | ||||||||||
Collectively evaluated for impairment | 7,467 | 1,295 | 3,769 | 2,262 | 14,793 | |||||||||||||||
Acquired with deteriorated credit quality | 793 | 79 | — | — | 872 | |||||||||||||||
Ending Balance | $ | 10,850 | $ | 1,374 | $ | 3,769 | $ | 2,262 | $ | 18,255 |
Loans: | June 30, 2014 | |||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Total | ||||||||||||||
Individually evaluated for impairment | $ | 15,548 | $ | 35 | $ | — | $ | 15,583 | ||||||||||
Collectively evaluated for impairment | 1,028,728 | 476,753 | 269,610 | 1,775,091 | ||||||||||||||
Acquired with deteriorated credit quality | 7,665 | 1,872 | — | 9,537 | ||||||||||||||
Ending Balance | $ | 1,051,941 | $ | 478,660 | $ | 269,610 | $ | 1,800,211 |
Allowance for Loan Losses: | December 31, 2013 | |||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Unallocated | Total | |||||||||||||||
Individually evaluated for impairment | 3,158 | — | — | — | 3,158 | |||||||||||||||
Collectively evaluated for impairment | 8,421 | 1,408 | 3,650 | 2,383 | 15,862 | |||||||||||||||
Acquired with deteriorated credit quality | 871 | 177 | — | — | 1,048 | |||||||||||||||
Ending Balance | $ | 12,450 | $ | 1,585 | $ | 3,650 | $ | 2,383 | $ | 20,068 |
Loans | December 31, 2013 | |||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Total | ||||||||||||||
Individually evaluated for impairment | 18,825 | 37 | — | 18,862 | ||||||||||||||
Collectively evaluated for impairment | 1,020,771 | 481,439 | 269,352 | 1,771,562 | ||||||||||||||
Acquired with deteriorated credit quality | 8,001 | 2,397 | — | 10,398 | ||||||||||||||
Ending Balance | $ | 1,047,597 | $ | 483,873 | $ | 269,352 | $ | 1,800,822 |
June 30, 2014 | ||||||||||||||||||||||||
Unpaid Principal | Recorded | Allowance for Loan Losses | Average Recorded | Interest Income | Cash Basis Interest | |||||||||||||||||||
(Dollar amounts in thousands) | Balance | Investment | Allocated | Investment | Recognized | Recognized | ||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Commercial & Industrial | $ | 265 | $ | 265 | $ | — | $ | 1,359 | $ | — | $ | — | ||||||||||||
Farmland | — | — | — | — | — | — | ||||||||||||||||||
Non Farm, Non Residential | 250 | 84 | — | 97 | — | — | ||||||||||||||||||
Agriculture | — | — | — | — | — | — | ||||||||||||||||||
All Other Commercial | — | — | — | — | — | — | ||||||||||||||||||
Residential | ||||||||||||||||||||||||
First Liens | — | — | — | — | — | — | ||||||||||||||||||
Home Equity | — | — | — | — | — | — | ||||||||||||||||||
Junior Liens | — | — | — | — | — | — | ||||||||||||||||||
Multifamily | — | — | — | — | — | — | ||||||||||||||||||
All Other Residential | — | — | — | — | — | — | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Motor Vehicle | — | — | — | — | — | — | ||||||||||||||||||
All Other Consumer | — | — | — | — | — | — | ||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Commercial & Industrial | 8,895 | 7,381 | 1,623 | 7,850 | — | — | ||||||||||||||||||
Farmland | — | — | — | — | — | — | ||||||||||||||||||
Non Farm, Non Residential | 6,518 | 6,518 | 802 | 6,666 | — | — | ||||||||||||||||||
Agriculture | — | — | — | — | — | — | ||||||||||||||||||
All Other Commercial | 1,384 | 1,384 | 165 | 1,159 | — | — | ||||||||||||||||||
Residential | ||||||||||||||||||||||||
First Liens | 35 | 35 | — | 36 | — | — | ||||||||||||||||||
Home Equity | — | — | — | — | — | — | ||||||||||||||||||
Junior Liens | — | — | — | — | — | — | ||||||||||||||||||
Multifamily | — | — | — | — | — | — | ||||||||||||||||||
All Other Residential | — | — | — | — | — | — | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Motor Vehicle | — | — | — | — | — | — | ||||||||||||||||||
All Other Consumer | — | — | — | — | — | — | ||||||||||||||||||
TOTAL | $ | 17,347 | $ | 15,667 | $ | 2,590 | $ | 17,167 | $ | — | $ | — |
December 31, 2013 | ||||||||||||||||||||||||
Unpaid Principal | Recorded | Allowance for Loan Losses | Average Recorded | Interest Income | Cash Basis Interest Income | |||||||||||||||||||
(Dollar amounts in thousands) | Balance | Investment | Allocated | Investment | Recognized | Recognized | ||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Commercial & Industrial | $ | 2,120 | $ | 1,918 | $ | — | $ | 1,555 | $ | — | $ | — | ||||||||||||
Farmland | — | — | — | — | — | — | ||||||||||||||||||
Non Farm, Non Residential | 271 | 105 | — | 26 | — | — | ||||||||||||||||||
Agriculture | — | — | — | — | — | — | ||||||||||||||||||
All Other Commercial | — | — | — | — | — | — | ||||||||||||||||||
Residential | ||||||||||||||||||||||||
First Liens | — | — | — | 7 | — | — | ||||||||||||||||||
Home Equity | — | — | — | — | — | — | ||||||||||||||||||
Junior Liens | — | — | — | — | — | — | ||||||||||||||||||
Multifamily | — | — | — | — | — | — | ||||||||||||||||||
All Other Residential | — | — | — | — | — | — | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Motor Vehicle | — | — | — | — | — | — | ||||||||||||||||||
All Other Consumer | — | — | — | — | — | — | ||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Commercial & Industrial | 10,134 | 8,620 | 1,612 | 13,029 | 217 | 217 | ||||||||||||||||||
Farmland | — | — | — | 356 | 113 | 113 | ||||||||||||||||||
Non Farm, Non Residential | 7,664 | 7,204 | 1,500 | 7,921 | — | — | ||||||||||||||||||
Agriculture | — | — | — | — | — | — | ||||||||||||||||||
All Other Commercial | 1,062 | 1,062 | 46 | 2,979 | — | — | ||||||||||||||||||
Residential | ||||||||||||||||||||||||
First Liens | 37 | 37 | — | 524 | — | — | ||||||||||||||||||
Home Equity | — | — | — | 113 | — | — | ||||||||||||||||||
Junior Liens | — | — | — | — | — | — | ||||||||||||||||||
Multifamily | — | — | — | 2,216 | — | — | ||||||||||||||||||
All Other Residential | — | — | — | — | — | — | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Motor Vehicle | — | — | — | — | — | — | ||||||||||||||||||
All Other Consumer | — | — | — | — | — | — | ||||||||||||||||||
TOTAL | $ | 21,288 | $ | 18,946 | $ | 3,158 | $ | 28,726 | $ | 330 | $ | 330 |
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | |||||||||||||||||||||||
Average Recorded | Interest Income | Cash Basis Interest Income | Average Recorded | Interest Income | Cash Basis Interest Income | |||||||||||||||||||
(Dollar amounts in thousands) | Investment | Recognized | Recognized | Investment | Recognized | Recognized | ||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Commercial & Industrial | $ | 1,080 | $ | — | $ | — | $ | 1,359 | $ | — | $ | — | ||||||||||||
Farmland | — | — | — | — | — | — | ||||||||||||||||||
Non Farm, Non Residential | 93 | — | — | 97 | — | — | ||||||||||||||||||
Agriculture | — | — | — | — | — | — | ||||||||||||||||||
All Other Commercial | — | — | — | — | — | — | ||||||||||||||||||
Residential | ||||||||||||||||||||||||
First Liens | — | — | — | — | — | — | ||||||||||||||||||
Home Equity | — | — | — | — | — | — | ||||||||||||||||||
Junior Liens | — | — | — | — | — | — | ||||||||||||||||||
Multifamily | — | — | — | — | — | — | ||||||||||||||||||
All Other Residential | — | — | — | — | — | — | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Motor Vehicle | — | — | — | — | — | — | ||||||||||||||||||
All Other Consumer | — | — | — | — | — | — | ||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Commercial & Industrial | 7,466 | — | — | 7,850 | — | — | ||||||||||||||||||
Farmland | — | — | — | — | — | — | ||||||||||||||||||
Non Farm, Non Residential | 6,397 | — | — | 6,666 | — | — | ||||||||||||||||||
Agriculture | — | — | — | — | — | — | ||||||||||||||||||
All Other Commercial | 1,207 | — | — | 1,159 | — | — | ||||||||||||||||||
Residential | ||||||||||||||||||||||||
First Liens | 36 | — | — | 36 | — | — | ||||||||||||||||||
Home Equity | — | — | — | — | — | — | ||||||||||||||||||
Junior Liens | — | — | — | — | — | — | ||||||||||||||||||
Multifamily | — | — | — | — | — | — | ||||||||||||||||||
All Other Residential | — | — | — | — | — | — | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Motor Vehicle | — | — | — | — | — | — | ||||||||||||||||||
All Other Consumer | — | — | — | — | — | — | ||||||||||||||||||
TOTAL | $ | 16,279 | $ | — | $ | — | $ | 17,167 | $ | — | $ | — |
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | |||||||||||||||||||||||
Average Recorded | Interest Income | Cash Basis Interest Income | Average Recorded | Interest Income | Cash Basis Interest Income | |||||||||||||||||||
(Dollar amounts in thousands) | Investment | Recognized | Recognized | Investment | Recognized | Recognized | ||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Commercial & Industrial | $ | 1,284 | $ | — | $ | — | $ | 856 | $ | — | $ | — | ||||||||||||
Farmland | — | — | — | — | — | — | ||||||||||||||||||
Non Farm, Non Residential | 1,975 | — | — | 2,798 | — | — | ||||||||||||||||||
Agriculture | — | — | — | — | — | — | ||||||||||||||||||
All Other Commercial | — | — | — | — | — | — | ||||||||||||||||||
Residential | ||||||||||||||||||||||||
First Liens | — | — | — | 250 | — | — | ||||||||||||||||||
Home Equity | — | — | — | — | — | — | ||||||||||||||||||
Junior Liens | — | — | — | — | — | — | ||||||||||||||||||
Multifamily | — | — | — | 83 | — | — | ||||||||||||||||||
All Other Residential | — | — | — | — | — | — | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Motor Vehicle | — | — | — | — | — | — | ||||||||||||||||||
All Other Consumer | — | — | — | — | — | — | ||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Commercial & Industrial | 16,669 | — | — | 17,068 | — | — | ||||||||||||||||||
Farmland | 891 | — | — | 891 | — | — | ||||||||||||||||||
Non Farm, Non Residential | 2,609 | — | — | 3,345 | — | — | ||||||||||||||||||
Agriculture | — | — | — | — | — | — | ||||||||||||||||||
All Other Commercial | 1,384 | — | — | 1,428 | — | — | ||||||||||||||||||
Residential | ||||||||||||||||||||||||
First Liens | 1,213 | — | — | 1,213 | — | — | ||||||||||||||||||
Home Equity | — | — | — | — | — | — | ||||||||||||||||||
Junior Liens | — | — | — | 293 | — | — | ||||||||||||||||||
Multifamily | — | — | — | — | — | — | ||||||||||||||||||
All Other Residential | — | — | — | — | — | — | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Motor Vehicle | — | — | — | — | — | — | ||||||||||||||||||
All Other Consumer | — | — | — | — | — | — | ||||||||||||||||||
TOTAL | $ | 26,025 | $ | — | $ | — | $ | 28,225 | $ | — | $ | — |
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
Loans Past Due Over 90 Day Still | Troubled Debt | Loans Past Due Over 90 Day Still | Troubled Debt | |||||||||||||||||||||
(Dollar amounts in thousands) | Accruing | Restructurings | Nonaccrual | Accruing | Restructurings | Nonaccrual | ||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Commercial & Industrial | $ | — | $ | 5,053 | $ | 4,606 | $ | 240 | $ | 6,578 | $ | 6,861 | ||||||||||||
Farmland | — | — | 91 | — | — | 99 | ||||||||||||||||||
Non Farm, Non Residential | — | 4,080 | 5,364 | 489 | 5,687 | 4,918 | ||||||||||||||||||
Agriculture | — | — | 320 | — | — | 134 | ||||||||||||||||||
All Other Commercial | — | — | 1,720 | — | — | 1,412 | ||||||||||||||||||
Residential | ||||||||||||||||||||||||
First Liens | 722 | 4,916 | 4,493 | 1,100 | 4,283 | 4,047 | ||||||||||||||||||
Home Equity | 9 | — | 287 | 40 | — | 195 | ||||||||||||||||||
Junior Liens | 80 | — | 409 | 147 | — | 390 | ||||||||||||||||||
Multifamily | — | 56 | 1 | — | 61 | 433 | ||||||||||||||||||
All Other Residential | 3 | — | 119 | 1 | — | 130 | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Motor Vehicle | 108 | 524 | 385 | 187 | 626 | 186 | ||||||||||||||||||
All Other Consumer | — | 35 | 611 | 3 | 17 | 974 | ||||||||||||||||||
TOTAL | $ | 922 | $ | 14,664 | $ | 18,406 | $ | 2,207 | $ | 17,252 | $ | 19,779 |
June 30, 2014 | ||||||||||||||||||||||||
30-59 Days | 60-89 Days | Greater than 90 days | Total | |||||||||||||||||||||
(Dollar amounts in thousands) | Past Due | Past Due | Past Due | Past Due | Current | Total | ||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Commercial & Industrial | $ | 2,952 | $ | 905 | $ | 3,199 | $ | 7,056 | $ | 467,757 | $ | 474,813 | ||||||||||||
Farmland | — | — | — | — | 92,786 | 92,786 | ||||||||||||||||||
Non Farm, Non Residential | 452 | 422 | 565 | 1,439 | 235,586 | 237,025 | ||||||||||||||||||
Agriculture | 111 | — | 151 | 262 | 120,851 | 121,113 | ||||||||||||||||||
All Other Commercial | 41 | 122 | 188 | 351 | 125,853 | 126,204 | ||||||||||||||||||
Residential | ||||||||||||||||||||||||
First Liens | 1,060 | 967 | 2,039 | 4,066 | 320,554 | 324,620 | ||||||||||||||||||
Home Equity | 149 | 10 | 97 | 256 | 40,292 | 40,548 | ||||||||||||||||||
Junior Liens | 245 | 102 | 277 | 624 | 31,616 | 32,240 | ||||||||||||||||||
Multifamily | 16 | — | — | 16 | 73,717 | 73,733 | ||||||||||||||||||
All Other Residential | — | — | 3 | 3 | 7,516 | 7,519 | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Motor Vehicle | 2,948 | 350 | 115 | 3,413 | 245,839 | 249,252 | ||||||||||||||||||
All Other Consumer | 41 | 28 | — | 69 | 20,289 | 20,358 | ||||||||||||||||||
TOTAL | $ | 8,015 | $ | 2,906 | $ | 6,634 | $ | 17,555 | $ | 1,782,656 | $ | 1,800,211 |
December 31, 2013 | ||||||||||||||||||||||||
30-59 Days | 60-89 Days | Greater than 90 days | Total | |||||||||||||||||||||
(Dollar amounts in thousands) | Past Due | Past Due | Past Due | Past Due | Current | Total | ||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Commercial & Industrial | $ | 1,076 | $ | 266 | $ | 7,900 | $ | 9,242 | $ | 459,076 | $ | 468,318 | ||||||||||||
Farmland | — | — | — | — | 92,602 | 92,602 | ||||||||||||||||||
Non Farm, Non Residential | 362 | — | 2,042 | 2,404 | 239,183 | 241,587 | ||||||||||||||||||
Agriculture | 31 | 32 | — | 63 | 136,388 | 136,451 | ||||||||||||||||||
All Other Commercial | 50 | 217 | 188 | 455 | 108,184 | 108,639 | ||||||||||||||||||
Residential | ||||||||||||||||||||||||
First Liens | 5,594 | 1,513 | 1,701 | 8,808 | 324,141 | 332,949 | ||||||||||||||||||
Home Equity | 307 | 7 | 40 | 354 | 41,350 | 41,704 | ||||||||||||||||||
Junior Liens | 392 | 170 | 471 | 1,033 | 32,269 | 33,302 | ||||||||||||||||||
Multifamily | 103 | 19 | 400 | 522 | 66,138 | 66,660 | ||||||||||||||||||
All Other Residential | 88 | — | 1 | 89 | 9,169 | 9,258 | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Motor Vehicle | 3,579 | 612 | 227 | 4,418 | 243,146 | 247,564 | ||||||||||||||||||
All Other Consumer | 123 | 22 | 7 | 152 | 21,636 | 21,788 | ||||||||||||||||||
TOTAL | $ | 11,705 | $ | 2,858 | $ | 12,977 | $ | 27,540 | $ | 1,773,282 | $ | 1,800,822 |
2014 | ||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Total | ||||||||
April 1, | 9,343 | 4,362 | 620 | 14,325 | ||||||||
Added | 441 | 668 | 30 | 1,139 | ||||||||
Charged Off | — | — | (19 | ) | (19 | ) | ||||||
Payments | (578 | ) | (74 | ) | (72 | ) | (724 | ) | ||||
June 30, | 9,206 | 4,956 | 559 | 14,721 |
2013 | ||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Total | ||||||||
April 1, | 16,070 | 4,747 | 700 | 21,285 | ||||||||
Added | — | — | 90 | 90 | ||||||||
Charged Off | — | (50 | ) | (23 | ) | (73 | ) | |||||
Payments | (1,065 | ) | (125 | ) | (74 | ) | (1,264 | ) | ||||
June 30, | 15,005 | 4,572 | 693 | 20,270 |
2014 | ||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Total | ||||||||
January 1, | 12,327 | 4,330 | 644 | 17,301 | ||||||||
Added | 441 | 801 | 98 | 1,340 | ||||||||
Charged Off | (1,069 | ) | — | (39 | ) | (1,108 | ) | |||||
Payments | (2,493 | ) | (175 | ) | (144 | ) | (2,812 | ) | ||||
June 30, | 9,206 | 4,956 | 559 | 14,721 |
2013 | ||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Total | ||||||||
January 1, | 16,474 | 4,107 | 704 | 21,285 | ||||||||
Added | — | 780 | 163 | 943 | ||||||||
Charged Off | — | (50 | ) | (32 | ) | (82 | ) | |||||
Payments | (1,469 | ) | (265 | ) | (142 | ) | (1,876 | ) | ||||
June 30, | 15,005 | 4,572 | 693 | 20,270 |
June 30, 2014 | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Pass | Special Mention | Substandard | Doubtful | Not Rated | Total | ||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Commercial & Industrial | $ | 417,190 | $ | 29,830 | $ | 19,433 | $ | 3,628 | $ | 3,478 | $ | 473,559 | ||||||||||||
Farmland | 85,730 | 5,386 | 368 | — | 19 | 91,503 | ||||||||||||||||||
Non Farm, Non Residential | 190,004 | 20,980 | 25,427 | 114 | — | 236,525 | ||||||||||||||||||
Agriculture | 111,137 | 7,439 | 849 | — | 423 | 119,848 | ||||||||||||||||||
All Other Commercial | 105,137 | 7,756 | 9,663 | 38 | 2,854 | 125,448 | ||||||||||||||||||
Residential | ||||||||||||||||||||||||
First Liens | 112,178 | 4,452 | 8,434 | 1,070 | 197,425 | 323,559 | ||||||||||||||||||
Home Equity | 12,014 | 422 | 1,452 | 100 | 26,497 | 40,485 | ||||||||||||||||||
Junior Liens | 8,284 | 99 | 573 | 65 | 23,117 | 32,138 | ||||||||||||||||||
Multifamily | 68,865 | 3,614 | 1,104 | — | — | 73,583 | ||||||||||||||||||
All Other Residential | 1,287 | 195 | 427 | — | 5,591 | 7,500 | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Motor Vehicle | 11,083 | 213 | 339 | 17 | 236,521 | 248,173 | ||||||||||||||||||
All Other Consumer | 3,296 | 47 | 70 | 10 | 16,807 | 20,230 | ||||||||||||||||||
TOTAL | $ | 1,126,205 | $ | 80,433 | $ | 68,139 | $ | 5,042 | $ | 512,732 | $ | 1,792,551 |
December 31, 2013 | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Pass | Special Mention | Substandard | Doubtful | Not Rated | Total | ||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Commercial & Industrial | $ | 406,650 | $ | 18,968 | $ | 30,986 | $ | 4,069 | $ | 6,426 | $ | 467,099 | ||||||||||||
Farmland | 86,633 | 3,631 | 347 | — | 445 | 91,056 | ||||||||||||||||||
Non Farm, Non Residential | 207,115 | 13,408 | 19,719 | 809 | — | 241,051 | ||||||||||||||||||
Agriculture | 128,137 | 6,482 | 105 | — | 71 | 134,795 | ||||||||||||||||||
All Other Commercial | 93,515 | 2,297 | 10,038 | 44 | 2,243 | 108,137 | ||||||||||||||||||
Residential | ||||||||||||||||||||||||
First Liens | 114,074 | 3,834 | 8,498 | 995 | 204,416 | 331,817 | ||||||||||||||||||
Home Equity | 12,883 | 274 | 1,071 | 113 | 27,295 | 41,636 | ||||||||||||||||||
Junior Liens | 8,858 | 60 | 550 | 67 | 23,654 | 33,189 | ||||||||||||||||||
Multifamily | 63,073 | 1,908 | 1,482 | 48 | — | 66,511 | ||||||||||||||||||
All Other Residential | 3,643 | — | 31 | — | 5,550 | 9,224 | ||||||||||||||||||
Consumer | ||||||||||||||||||||||||
Motor Vehicle | 11,447 | 219 | 510 | 9 | 234,210 | 246,395 | ||||||||||||||||||
All Other Consumer | 3,507 | 46 | 79 | 22 | 17,984 | 21,638 | ||||||||||||||||||
TOTAL | $ | 1,139,535 | $ | 51,127 | $ | 73,416 | $ | 6,176 | $ | 522,294 | $ | 1,792,548 |
3. | Securities |
June 30, 2014 | ||||||||||||||||
(Dollar amounts in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
U.S. Government agencies | $ | 1,529 | $ | 22 | $ | — | $ | 1,551 | ||||||||
Mortgage Backed Securities - Residential | 178,473 | 8,125 | (879 | ) | 185,719 | |||||||||||
Mortgage Backed Securities - Commercial | 22 | 1 | — | 23 | ||||||||||||
Collateralized Mortgage Obligations | 519,491 | 2,190 | (12,931 | ) | 508,750 | |||||||||||
State and Municipal Obligations | 193,608 | 8,702 | (479 | ) | 201,831 | |||||||||||
Collateralized Debt Obligations | 10,555 | 6,035 | (1,969 | ) | 14,621 | |||||||||||
TOTAL | $ | 903,678 | $ | 25,075 | $ | (16,258 | ) | $ | 912,495 |
December 31, 2013 | ||||||||||||||||
(Dollar amounts in thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
U.S. Government agencies | $ | 1,623 | $ | 10 | $ | — | $ | 1,633 | ||||||||
Mortgage Backed Securities-residential | 191,995 | 7,761 | (1,992 | ) | 197,764 | |||||||||||
Mortgage Backed Securities-commercial | 4,642 | 1 | (252 | ) | 4,391 | |||||||||||
Collateralized mortgage obligations | 521,148 | 1,492 | (15,899 | ) | 506,741 | |||||||||||
State and municipal | 190,521 | 6,388 | (1,922 | ) | 194,987 | |||||||||||
Collateralized debt obligations | 10,968 | 4,695 | (6,619 | ) | 9,044 | |||||||||||
TOTAL | $ | 920,897 | $ | 20,347 | $ | (26,684 | ) | $ | 914,560 |
Available-for-Sale | ||||||||
Amortized | Fair | |||||||
(Dollar amounts in thousands) | Cost | Value | ||||||
Due in one year or less | $ | 8,533 | $ | 8,655 | ||||
Due after one but within five years | 34,546 | 36,064 | ||||||
Due after five but within ten years | 89,392 | 93,301 | ||||||
Due after ten years | 592,712 | 588,733 | ||||||
725,183 | 726,753 | |||||||
Mortgage-backed securities | 178,495 | 185,742 | ||||||
TOTAL | $ | 903,678 | $ | 912,495 |
June 30, 2014 | ||||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
(Dollar amounts in thousands) | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||
Mortgage Backed Securities - Residential | $ | 55,101 | $ | (878 | ) | $ | 123 | $ | (1 | ) | $ | 55,224 | $ | (879 | ) | |||||||||
Collateralized mortgage obligations | 258,410 | (11,873 | ) | 118,571 | (1,058 | ) | 376,981 | (12,931 | ) | |||||||||||||||
State and municipal obligations | 16,246 | (450 | ) | 7,430 | (29 | ) | 23,676 | (479 | ) | |||||||||||||||
Collateralized Debt Obligations | — | — | 9,949 | (1,969 | ) | 9,949 | (1,969 | ) | ||||||||||||||||
Total temporarily impaired securities | $ | 329,757 | $ | (13,201 | ) | $ | 136,073 | $ | (3,057 | ) | $ | 465,830 | $ | (16,258 | ) |
December 31, 2013 | ||||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | ||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||||||
(Dollar amounts in thousands) | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||
Mortgage Backed Securities - Residential | $ | 52,524 | $ | (1,645 | ) | $ | 6,022 | $ | (347 | ) | $ | 58,546 | $ | (1,992 | ) | |||||||||
Mortgage Backed Securities - Commercial | — | — | 4,357 | (252 | ) | 4,357 | (252 | ) | ||||||||||||||||
Collateralized mortgage obligations | 406,291 | (13,979 | ) | 29,588 | (1,920 | ) | 435,879 | (15,899 | ) | |||||||||||||||
State and municipal obligations | 43,899 | (1,746 | ) | 2,305 | (176 | ) | 46,204 | (1,922 | ) | |||||||||||||||
Collateralized Debt Obligations | — | — | 3,686 | (6,619 | ) | 3,686 | (6,619 | ) | ||||||||||||||||
Total temporarily impaired securities | $ | 502,714 | $ | (17,370 | ) | $ | 45,958 | $ | (9,314 | ) | $ | 548,672 | $ | (26,684 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Beginning balance | $ | 14,079 | $ | 14,983 | $ | 14,079 | $ | 14,983 | ||||||||
Increases to the amount related to the credit | ||||||||||||||||
Loss for which other-than-temporary was previously recognized | — | — | — | — | ||||||||||||
Reductions for increases in cash flows collected | — | — | — | — | ||||||||||||
Amounts realized for securities sold during the period | — | — | — | — | ||||||||||||
Ending balance | $ | 14,079 | $ | 14,983 | $ | 14,079 | $ | 14,983 |
4. | Fair Value |
June 30, 2014 | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
(Dollar amounts in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
U.S. Government agencies | $ | — | $ | 1,551 | $ | — | $ | 1,551 | ||||||||
Mortgage Backed Securities-residential | — | 185,719 | — | 185,719 | ||||||||||||
Mortgage Backed Securities-commercial | — | 23 | — | 23 | ||||||||||||
Collateralized mortgage obligations | — | 508,750 | — | 508,750 | ||||||||||||
State and municipal | — | 197,796 | 4,035 | 201,831 | ||||||||||||
Collateralized debt obligations | — | — | 14,621 | 14,621 | ||||||||||||
TOTAL | $ | — | $ | 893,839 | $ | 18,656 | $ | 912,495 | ||||||||
Derivative Assets | 1,206 | |||||||||||||||
Derivative Liabilities | (1,206 | ) |
December 31, 2013 | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
(Dollar amounts in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
U.S. Government agencies | $ | — | $ | 1,633 | $ | — | $ | 1,633 | ||||||||
Mortgage Backed Securities-residential | — | 197,764 | — | 197,764 | ||||||||||||
Mortgage Backed Securities-commercial | — | 4,391 | — | 4,391 | ||||||||||||
Collateralized mortgage obligations | — | 506,741 | — | 506,741 | ||||||||||||
State and municipal | — | 190,462 | 4,525 | 194,987 | ||||||||||||
Collateralized debt obligations | — | — | 9,044 | 9,044 | ||||||||||||
TOTAL | $ | — | $ | 900,991 | $ | 13,569 | $ | 914,560 | ||||||||
Derivative Assets | 1,195 | |||||||||||||||
Derivative Liabilities | (1,195 | ) |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||
Three Months Ended June 30, 2014 | |||||||||||
State and municipal obligations | Collateralized debt obligations | Total | |||||||||
Beginning balance, April 1 | $ | 4,035 | $ | 12,508 | $ | 16,543 | |||||
Total realized/unrealized gains or losses | |||||||||||
Included in earnings | — | — | — | ||||||||
Included in other comprehensive income | — | 2,203 | 2,203 | ||||||||
Transfers | — | — | — | ||||||||
Settlements | — | (90 | ) | (90 | ) | ||||||
Ending balance, June 30 | $ | 4,035 | $ | 14,621 | $ | 18,656 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||
State and municipal obligations | Collateralized debt obligations | Total | ||||||||||
Beginning balance, January 1 | $ | 4,525 | $ | 9,044 | $ | 13,569 | ||||||
Total realized/unrealized gains or losses | ||||||||||||
Included in earnings | — | — | — | |||||||||
Included in other comprehensive income | — | 6,060 | 6,060 | |||||||||
Transfers | — | — | — | |||||||||
Settlements | (490 | ) | (483 | ) | (973 | ) | ||||||
Ending balance, June 30 | $ | 4,035 | $ | 14,621 | $ | 18,656 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||
Year Ended December 31, 2013 | ||||||||||||
State and municipal obligations | Collateralized debt obligations | Total | ||||||||||
Beginning balance, January 1 | $ | 9,911 | $ | 6,122 | $ | 16,033 | ||||||
Total realized/unrealized gains or losses | ||||||||||||
Included in earnings | — | 904 | 904 | |||||||||
Included in other comprehensive income | — | 3,155 | 3,155 | |||||||||
Transfers | (1,186 | ) | — | (1,186 | ) | |||||||
Settlements | (4,200 | ) | (1,137 | ) | (5,337 | ) | ||||||
Ending balance, December 31 | $ | 4,525 | $ | 9,044 | $ | 13,569 |
Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range | |||||||
State and municipal obligations | $ | 4,035 | Discounted cash flow | Discount rate Probability of default | 3.05%-5.50% 0% | |||||
Other real estate | $ | 5,190 | Sales comparison/income approach | Discount rate for age of appraisal and market conditions | 5.00%-20.00% | |||||
Impaired Loans | $ | 12,728 | Sales comparison/income approach | Discount rate for age of appraisal and market conditions | 0.00%-50.00% |
Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range | |||||||
State and municipal obligations | $ | 4,525 | Discounted cash flow | Discount rate Probability of default | 3.05%-5.50% 0% | |||||
Other real estate | $ | 5,291 | Sales comparison/income approach | Discount rate for age of appraisal and market conditions | 5.00%-20.00% | |||||
Impaired Loans | $ | 13,765 | Sales comparison/income approach | Discount rate for age of appraisal and market conditions | 0.00%-50.00% |
June 30, 2014 | ||||||||||||
(Dollar amounts in thousands) | Carrying Value | Allowance for Loan Losses Allocated | Fair Value | |||||||||
Commercial | ||||||||||||
Commercial & Industrial | $ | 7,381 | $ | 1,623 | $ | 5,758 | ||||||
Farmland | — | — | — | |||||||||
Non Farm, Non Residential | 6,518 | 802 | 5,716 | |||||||||
Agriculture | — | — | — | |||||||||
All Other Commercial | 1,384 | 165 | 1,219 | |||||||||
Residential | ||||||||||||
First Liens | 35 | — | 35 | |||||||||
Home Equity | — | — | — | |||||||||
Junior Liens | — | — | — | |||||||||
Multifamily | — | — | — | |||||||||
All Other Residential | — | — | — | |||||||||
Consumer | ||||||||||||
Motor Vehicle | — | — | — | |||||||||
All Other Consumer | — | — | — | |||||||||
TOTAL | $ | 15,318 | $ | 2,590 | $ | 12,728 |
December 31, 2013 | ||||||||||||
(Dollar amounts in thousands) | Carrying Value | Allowance for Loan Losses Allocated | Fair Value | |||||||||
Commercial | ||||||||||||
Commercial & Industrial | $ | 8,620 | $ | 1,612 | $ | 7,008 | ||||||
Farmland | — | — | — | |||||||||
Non Farm, Non Residential | 7,204 | 1,500 | 5,704 | |||||||||
Agriculture | — | — | ||||||||||
All Other Commercial | 1,062 | 46 | 1,016 | |||||||||
Residential | ||||||||||||
First Liens | 37 | — | 37 | |||||||||
Home Equity | — | — | — | |||||||||
Junior Liens | — | — | — | |||||||||
Multifamily | — | — | — | |||||||||
All Other Residential | — | — | ||||||||||
Consumer | ||||||||||||
Motor Vehicle | — | — | ||||||||||
All Other Consumer | — | — | ||||||||||
TOTAL | $ | 16,923 | $ | 3,158 | $ | 13,765 |
June 30, 2014 | ||||||||||||||||||||
Carrying | Fair Value | |||||||||||||||||||
(Dollar amounts in thousands) | Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Cash and due from banks | $ | 84,774 | $ | 19,048 | $ | 65,726 | $ | — | $ | 84,774 | ||||||||||
Federal funds sold | 9,370 | — | 9,370 | — | 9,370 | |||||||||||||||
Securities available—for—sale | 912,495 | — | 893,839 | 18,656 | 912,495 | |||||||||||||||
Restricted stock | 21,064 | n/a | n/a | n/a | n/a | |||||||||||||||
Loans, net | 1,774,407 | — | — | 1,825,140 | 1,825,140 | |||||||||||||||
FDIC Indemnification Asset | 420 | — | 420 | — | 420 | |||||||||||||||
Accrued interest receivable | 10,950 | — | 3,292 | 7,658 | 10,950 | |||||||||||||||
Deposits | (2,433,083 | ) | — | (2,433,594 | ) | — | (2,433,594 | ) | ||||||||||||
Short—term borrowings | (73,420 | ) | — | (73,420 | ) | — | (73,420 | ) | ||||||||||||
Federal Home Loan Bank advances | (63,140 | ) | — | (63,932 | ) | — | (63,932 | ) | ||||||||||||
Accrued interest payable | (544 | ) | — | (544 | ) | — | (544 | ) |
December 31, 2013 | ||||||||||||||||||||
Carrying | Fair Value | |||||||||||||||||||
(Dollar amounts in thousands) | Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Cash and due from banks | $ | 71,033 | $ | 22,455 | $ | 48,578 | $ | — | $ | 71,033 | ||||||||||
Federal funds sold | 4,276 | — | 4,276 | — | 4,276 | |||||||||||||||
Securities available—for—sale | 914,560 | — | 900,991 | 13,569 | 914,560 | |||||||||||||||
Restricted stock | 21,057 | n/a | n/a | n/a | n/a | |||||||||||||||
Loans, net | 1,771,360 | — | — | 1,816,726 | 1,816,726 | |||||||||||||||
FDIC Indemnification Asset | 1,055 | — | 1,055 | — | 1,055 | |||||||||||||||
Accrued interest receivable | 11,554 | — | 3,279 | 8,275 | 11,554 | |||||||||||||||
Deposits | (2,458,791 | ) | — | (2,460,197 | ) | — | (2,460,197 | ) | ||||||||||||
Short—term borrowings | (59,592 | ) | — | (59,592 | ) | — | (59,592 | ) | ||||||||||||
Federal Home Loan Bank advances | (58,288 | ) | — | (60,258 | ) | — | (60,258 | ) | ||||||||||||
Accrued interest payable | (750 | ) | — | (750 | ) | — | (750 | ) |
5. | Short-Term Borrowings |
(000 's) | |||||||
June 30, 2014 | December 31, 2013 | ||||||
Federal Funds Purchased | $ | 51,650 | $ | 30,679 | |||
Repurchase Agreements | 21,770 | 28,913 | |||||
$ | 73,420 | $ | 59,592 |
6. | Other Borrowings |
(000 's) | |||||||
June 30, 2014 | December 31, 2013 | ||||||
FHLB Advances | $ | 63,140 | $ | 58,288 |
7. | Components of Net Periodic Benefit Cost |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
(000's) | (000's) | |||||||||||||||||||||||||||||||
Pension Benefits | Post-Retirement Health Benefits | Pension Benefits | Post-Retirement Health Benefits | |||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Service cost | $ | 510 | $ | 559 | $ | 13 | $ | 17 | $ | 1,020 | $ | 1,119 | $ | 26 | $ | 34 | ||||||||||||||||
Interest cost | 939 | 846 | 44 | 43 | 1,878 | 1,692 | 87 | 87 | ||||||||||||||||||||||||
Expected return on plan assets | (948 | ) | (827 | ) | — | — | (1,897 | ) | (1,655 | ) | — | |||||||||||||||||||||
Amortization of transition obligation | — | — | — | 15 | — | 30 | ||||||||||||||||||||||||||
Net amortization of prior service cost | (2 | ) | (4 | ) | — | — | (5 | ) | (8 | ) | — | |||||||||||||||||||||
Net amortization of net (gain) loss | 190 | 523 | — | — | 379 | 1,046 | (1 | ) | — | |||||||||||||||||||||||
Net Periodic Benefit Cost | $ | 689 | $ | 1,097 | $ | 57 | $ | 75 | $ | 1,375 | $ | 2,194 | $ | 112 | $ | 151 |
8. | New accounting standards |
9. | Acquisitions and FDIC Indemnification Asset |
Three Months Ended June 30, 2014 | ||||||||||||
(Dollar amounts in thousands) | Commercial | Consumer | Total | |||||||||
Beginning balance | $ | 7,510 | $ | 2,401 | $ | 9,911 | ||||||
Discount accretion | — | — | — | |||||||||
Disposals | (173 | ) | (516 | ) | (689 | ) | ||||||
ASC 310-30 Loans | $ | 7,337 | $ | 1,885 | $ | 9,222 |
Six Months Ended June 30, 2014 | ||||||||||||
(Dollar amounts in thousands) | Commercial | Consumer | Total | |||||||||
Beginning balance | $ | 7,676 | $ | 2,409 | $ | 10,085 | ||||||
Discount accretion | — | — | — | |||||||||
Disposals | (339 | ) | (524 | ) | (863 | ) | ||||||
ASC 310-30 Loans | $ | 7,337 | $ | 1,885 | $ | 9,222 |
Three Months Ended June 30, 2013 | ||||||||||||
(Dollar amounts in thousands) | Commercial | Consumer | Total | |||||||||
Beginning balance | $ | 12,329 | $ | 3,436 | $ | 15,765 | ||||||
Discount accretion | (11 | ) | (3 | ) | (14 | ) | ||||||
Disposals | (799 | ) | (427 | ) | (1,226 | ) | ||||||
ASC 310-30 Loans | $ | 11,519 | $ | 3,006 | $ | 14,525 |
Six Months Ended June 30, 2013 | ||||||||||||
(Dollar amounts in thousands) | Commercial | Consumer | Total | |||||||||
Beginning balance | $ | 13,654 | $ | 3,464 | $ | 17,118 | ||||||
Discount accretion | (24 | ) | (8 | ) | (32 | ) | ||||||
Disposals | (2,111 | ) | (450 | ) | (2,561 | ) | ||||||
ASC 310-30 Loans | $ | 11,519 | $ | 3,006 | $ | 14,525 |
Three Months Ended June 30, | Six Months Ended June 30, | Year Ended December 31, | ||||||||||
(Dollar amounts in thousands) | 2014 | 2014 | 2013 | |||||||||
Beginning balance | $ | 754 | $ | 1,055 | $ | 2,632 | ||||||
Accretion | — | — | — | |||||||||
Net changes in losses and expenses | (189 | ) | (359 | ) | (1,225 | ) | ||||||
Reimbursements from the FDIC | (145 | ) | (276 | ) | (352 | ) | ||||||
TOTAL | $ | 420 | $ | 420 | $ | 1,055 |
10. | Accumulated Other Comprehensive Income (Loss) |
Unrealized | ||||||||||||
gains and | 2014 | |||||||||||
Losses on available- for-sale | Retirement | |||||||||||
(Dollar amounts in thousands) | Securities | plans | Total | |||||||||
Beginning balance, April 1 | $ | 1,668 | $ | (10,219 | ) | $ | (8,551 | ) | ||||
Change in other comprehensive income before reclassification | 4,115 | — | 4,115 | |||||||||
Amounts reclassified from accumulated other comprehensive income | 1 | 115 | 116 | |||||||||
Net Current period other comprehensive other income | 4,116 | 115 | 4,231 | |||||||||
Ending balance, June 30 | $ | 5,784 | $ | (10,104 | ) | $ | (4,320 | ) |
Unrealized | ||||||||||||
gains and | 2014 | |||||||||||
Losses on available- for-sale | Retirement | |||||||||||
(Dollar amounts in thousands) | Securities | plans | Total | |||||||||
Beginning balance, January 1 | $ | (3,635 | ) | $ | (10,334 | ) | $ | (13,969 | ) | |||
Change in other comprehensive income before reclassification | 9,418 | — | 9,418 | |||||||||
Amounts reclassified from accumulated other comprehensive income | 1 | 230 | 231 | |||||||||
Net Current period other comprehensive other income | 9,419 | 230 | 9,649 | |||||||||
Ending balance, June 30 | $ | 5,784 | $ | (10,104 | ) | $ | (4,320 | ) | ||||
Unrealized | ||||||||||||
gains and | 2013 | |||||||||||
Losses on available- for-sale | Retirement | |||||||||||
(Dollar amounts in thousands) | Securities | plans | Total | |||||||||
Beginning balance, April 1 | $ | 11,764 | $ | (20,689 | ) | $ | (8,925 | ) | ||||
Change in other comprehensive income before reclassification | (10,557 | ) | — | (10,557 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | (2 | ) | 338 | 336 | ||||||||
Net Current period other comprehensive other income | (10,559 | ) | 338 | (10,221 | ) | |||||||
Ending balance, June 30 | $ | 1,205 | $ | (20,351 | ) | $ | (19,146 | ) |
Unrealized | ||||||||||||
gains and | 2013 | |||||||||||
Losses on available- for-sale | Retirement | |||||||||||
(Dollar amounts in thousands) | Securities | plans | Total | |||||||||
Beginning balance, January 1 | $ | 13,431 | $ | (20,903 | ) | $ | (7,472 | ) | ||||
Change in other comprehensive income before reclassification | (12,222 | ) | — | (12,222 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | (4 | ) | 552 | 548 | ||||||||
Net Current period other comprehensive other income | (12,226 | ) | 552 | (11,674 | ) | |||||||
Ending balance, June 30 | $ | 1,205 | $ | (20,351 | ) | $ | (19,146 | ) | ||||
Balance at | Current Period | Balance at | ||||||||||
(Dollar amounts in thousands) | 4/1/2014 | Change | 6/30/2014 | |||||||||
Unrealized gains (losses) on securities available-for-sale | ||||||||||||
without other than temporary impairment | $ | 511 | $ | 2,785 | $ | 3,296 | ||||||
Unrealized gains (losses) on securities available-for-sale | ||||||||||||
with other than temporary impairment | 1,157 | 1,331 | 2,488 | |||||||||
Total unrealized loss on securities available-for-sale | $ | 1,668 | $ | 4,116 | $ | 5,784 | ||||||
Unrealized loss on retirement plans | (10,219 | ) | 115 | (10,104 | ) | |||||||
TOTAL | $ | (8,551 | ) | $ | 4,231 | $ | (4,320 | ) |
Balance at | Current Period | Balance at | ||||||||||
(Dollar amounts in thousands) | 1/1/2014 | Change | 6/30/2014 | |||||||||
Unrealized gains (losses) on securities available-for-sale | ||||||||||||
without other than temporary impairment | $ | (2,499 | ) | $ | 5,795 | $ | 3,296 | |||||
Unrealized gains (losses) on securities available-for-sale | ||||||||||||
with other than temporary impairment | (1,136 | ) | 3,624 | 2,488 | ||||||||
Total unrealized loss on securities available-for-sale | $ | (3,635 | ) | $ | 9,419 | $ | 5,784 | |||||
Unrealized loss on retirement plans | (10,334 | ) | 230 | (10,104 | ) | |||||||
TOTAL | $ | (13,969 | ) | $ | 9,649 | $ | (4,320 | ) |
Balance at | Current Period | Balance at | ||||||||||
(Dollar amounts in thousands) | 4/1/2013 | Change | 6/30/2013 | |||||||||
Unrealized gains (losses) on securities available-for-sale | ||||||||||||
without other than temporary impairment | $ | 15,161 | $ | (12,138 | ) | $ | 3,023 | |||||
Unrealized gains (losses) on securities available-for-sale | ||||||||||||
with other than temporary impairment | (3,397 | ) | 1,579 | (1,818 | ) | |||||||
Total unrealized loss on securities available-for-sale | $ | 11,764 | $ | (10,559 | ) | $ | 1,205 | |||||
Unrealized loss on retirement plans | (20,689 | ) | 338 | (20,351 | ) | |||||||
TOTAL | $ | (8,925 | ) | $ | (10,221 | ) | $ | (19,146 | ) |
Balance at | Current Period | Balance at | ||||||||||
(Dollar amounts in thousands) | 1/1/2013 | Change | 6/30/2013 | |||||||||
Unrealized gains (losses) on securities available-for-sale | ||||||||||||
without other than temporary impairment | $ | 17,044 | $ | (14,021 | ) | $ | 3,023 | |||||
Unrealized gains (losses) on securities available-for-sale | ||||||||||||
with other than temporary impairment | (3,613 | ) | 1,795 | (1,818 | ) | |||||||
Total unrealized loss on securities available-for-sale | $ | 13,431 | $ | (12,226 | ) | $ | 1,205 | |||||
Unrealized loss on retirement plans | (20,903 | ) | 552 | (20,351 | ) | |||||||
TOTAL | $ | (7,472 | ) | $ | (11,674 | ) | $ | (19,146 | ) |
Three Months Ended June 30, 2014 | ||||||
Details about accumulated | Amount reclassified from | Affected line item in | ||||
other comprehensive | accumulated other | the statement where | ||||
income components | comprehensive income | net income is presented | ||||
(in thousands) | ||||||
Unrealized gains and losses | $ | (1 | ) | Net securities gains (losses) | ||
on available-for-sale | — | Income tax expense | ||||
securities | $ | (1 | ) | Net of tax | ||
Amortization of | $ | (237 | ) | (a) | ||
retirement plan items | 122 | Income tax expense | ||||
$ | (115 | ) | Net of tax | |||
Total reclassifications for the period | $ | (116 | ) | Net of tax |
Six Months Ended June 30, 2014 | ||||||
Details about accumulated | Amount reclassified from | Affected line item in | ||||
other comprehensive | accumulated other | the statement where | ||||
income components | comprehensive income | net income is presented | ||||
(in thousands) | ||||||
Unrealized gains and losses | $ | (1 | ) | Net securities gains (losses) | ||
on available-for-sale | — | Income tax expense | ||||
securities | $ | (1 | ) | Net of tax | ||
Amortization of | $ | (474 | ) | (a) | ||
retirement plan items | 244 | Income tax expense | ||||
$ | (230 | ) | Net of tax | |||
Total reclassifications for the period | $ | (231 | ) | Net of tax |
Three Months Ended June 30, 2013 | ||||||
Details about accumulated | Amount reclassified from | Affected line item in | ||||
other comprehensive | accumulated other | the statement where | ||||
income components | comprehensive income | net income is presented | ||||
(in thousands) | ||||||
Unrealized gains and losses | $ | 3 | Net securities gains (losses) | |||
on available-for-sale | (1 | ) | Income tax expense | |||
securities | $ | 2 | Net of tax | |||
Amortization of | $ | (563 | ) | (a) | ||
retirement plan items | 225 | Income tax expense | ||||
$ | (338 | ) | Net of tax | |||
Total reclassifications for the period | $ | (336 | ) | Net of tax |
Six Months Ended June 30, 2013 | ||||||
Details about accumulated | Amount reclassified from | Affected line item in | ||||
other comprehensive | accumulated other | the statement where | ||||
income components | comprehensive income | net income is presented | ||||
(in thousands) | ||||||
Unrealized gains and losses | $ | 7 | Net securities gains (losses) | |||
on available-for-sale | (3 | ) | Income tax expense | |||
securities | $ | 4 | Net of tax | |||
Amortization of | $ | (920 | ) | (a) | ||
retirement plan items | 368 | Income tax expense | ||||
$ | (552 | ) | Net of tax | |||
Total reclassifications for the period | $ | (548 | ) | Net of tax |
(000's) | |||||||
June 30, 2014 | December 31, 2013 | ||||||
Non-accrual loans | $ | 18,406 | $ | 19,779 | |||
Restructured loans | 14,721 | 17,301 | |||||
Accruing loans past due over 90 days | 824 | 2,073 | |||||
$ | 33,951 | $ | 39,153 | ||||
Ratio of the allowance for loan losses | |||||||
as a percentage of non-performing loans | 53.8 | % | 51.3 | % |
(000's) | |||||||
June 30, 2014 | December 31, 2013 | ||||||
Non-accrual loans | |||||||
Commercial loans | $ | 12,101 | $ | 13,424 | |||
Residential loans | 5,309 | 5,195 | |||||
Consumer loans | 996 | 1,160 | |||||
$ | 18,406 | $ | 19,779 | ||||
Past due 90 days or more | |||||||
Commercial loans | $ | — | $ | 712 | |||
Residential loans | 722 | 1,181 | |||||
Consumer loans | 102 | 180 | |||||
$ | 824 | $ | 2,073 |
(000's) | |||||||
June 30, 2014 | December 31, 2013 | ||||||
Non-accrual loans | |||||||
Commercial loans | $ | 482 | $ | 799 | |||
1-4 family residential | 298 | 275 | |||||
Installment loans | — | — | |||||
$ | 780 | $ | 1,074 | ||||
Past due 90 days or more: | |||||||
Commercial loans | $ | — | $ | 459 | |||
Residential loans | — | 121 | |||||
Consumer loans | — | — | |||||
$ | — | $ | 580 |
Basis Point | Percentage Change in Net Interest Income | ||||||||
Interest Rate Change | 12 months | 24 months | 36 months | ||||||
Down 200 | -1.48 | % | -4.49 | % | -6.50 | % | |||
Down 100 | -0.87 | -2.61 | -3.84 | ||||||
Up 100 | 1.94 | 5.39 | 9.06 | ||||||
Up 200 | 0.94 | 7.22 | 14.37 |
June 30, 2014 | December 31, 2013 | To Be Well Capitalized | ||||||
Total risk-based capital | ||||||||
Corporation | 17.59 | % | 17.13 | % | N/A | |||
First Financial Bank | 16.99 | % | 16.49 | % | 10.00 | % | ||
Tier I risk-based capital | ||||||||
Corporation | 16.75 | % | 16.22 | % | N/A | |||
First Financial Bank | 16.26 | % | 15.68 | % | 6.00 | % | ||
Tier I leverage capital | ||||||||
Corporation | 12.28 | % | 11.69 | % | N/A | |||
First Financial Bank | 11.70 | % | 11.40 | % | 5.00 | % |
ITEM 4. | Controls and Procedures |
ITEM 1. | Legal Proceedings. |
ITEM 1A. | Risk Factors. |
ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
ITEM 3. | Defaults upon Senior Securities. |
ITEM 4. | Mine Safety Disclosures |
ITEM 5. | Other Information. |
ITEM 6. | Exhibits. |
Exhibit No.: | Description of Exhibit: |
2.1 | Purchase and Assumption Agreement dated March 18, 2013 between First Financial Bank, National Association and Bank of America, National Association, incorporated by reference to Exhibit 2.1 of the Corporation’s Form 8-K filed on March 20, 2013. |
3.1 | Amended and Restated Articles of Incorporation of First Financial Corporation, incorporated by reference to Exhibit 3(i) of the Corporation’s Form 10-Q filed for the quarter ended September 30, 2002. |
3.2 | Code of By-Laws of First Financial Corporation, incorporated by reference to Exhibit 3(ii) of the Corporation’s Form 8-K filed on August 24, 2012. |
10.1* | Employment Agreement for Norman L. Lowery, dated February 4, 2014 and effective January 1, 2014, incorporated by reference to Exhibit 10.01 of the Corporation’s Form 8-K filed on March 12, 2014. |
10.2* | 2001 Long-Term Incentive Plan of First Financial Corporation, incorporated by reference to Exhibit 10.3 of the Corporation’s Form 10-Q filed for the quarter ended September 30, 2002. |
10.3* | 2013 Schedule of Director Compensation, incorporated by reference to Exhibit 10.3 of the Corporation’s Form 10-K filed for the fiscal year ended December 31, 2013. |
10.4* | 2013 Schedule of Named Executive Officer Compensation, incorporated by reference to Exhibit 10.4 of the Corporation’s Form 10-K filed for the fiscal year ended December 31, 2013. |
10.5* | 2005 Long-Term Incentive Plan of First Financial Corporation, incorporated by reference to Exhibit 10.7 of the Corporation’s Form 8-K filed on September 4, 2007. |
10.6* | 2005 Executives Deferred Compensation Plan, incorporated by reference to Exhibit 10.5 of the Corporation’s Form 8-K filed on September 4, 2007. |
10.7* | 2005 Executives Supplemental Retirement Plan, incorporated by reference to Exhibit 10.6 of the Corporation’s Form 8-K filed on September 4, 2007. |
10.9* | First Financial Corporation 2010 Long-Term Incentive Compensation Plan incorporated by reference to Exhibit 10. 9 of the Corporation’s Form 10-K filed March 15, 2011. |
10.10* | First Financial Corporation 2011 Short-Term Incentive Compensation Plan incorporated by reference to Exhibit 10.10 of the Corporation’s Form 10-K filed March 15, 2011. |
10.11* | First Financial Corporation 2011 Omnibus Equity Incentive Plan incorporated by reference to Exhibit 10.11 of the Corporation’s Form 10-Q for the quarter ended March 31, 2011 filed on May 9, 2011. |
10.12* | Form of Restricted Stock Award Agreement under the First Financial Corporation 2011 Omnibus Equity Incentive Plan |
31.1 | Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 by Principal Executive Officer, dated August 7, 2014. |
31.2 | Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 by Principal Financial Officer, dated August 7, 2014. |
32.1 | Certification, dated August 7, 2014, of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2005 on Form 10-Q for the quarter ended June 30, 2014. |
101.1 | Financial statements from the Quarterly Report on Form 10-Q of the Corporation for the quarter ended June 30, 2014, formatted in XBRL pursuant to Rule 405 : (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income and Comprehensive Income, (iii) Consolidated Statements of Cash Flows, (iv) Consolidated Statements of Shareholders’ Equity, and (v) Notes to Consolidated Financial Statements, as blocks of text and in detail**. |
FIRST FINANCIAL CORPORATION | |||
(Registrant) | |||
Date: | August 7, 2014 | By /s/ Norman L. Lowery | |
Norman L. Lowery, Vice Chairman, President and CEO | |||
(Principal Executive Officer) | |||
Date: | August 7, 2014 | By /s/ Rodger A. McHargue | |
Rodger A. McHargue, Treasurer and CFO | |||
(Principal Financial Officer) |
1 | I have reviewed this quarterly report on Form 10-Q of First Financial Corporation; | |
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4 | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and l5d-15(f)) for the registrant and have: | |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with generally accepted accounting principles; | |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |
5 | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. |
By /s/ Norman L. Lowery |
Norman L. Lowery, |
Vice Chairman, President and CEO |
(Principal Executive Officer) |
1 | I have reviewed this quarterly report on Form 10-Q of First Financial Corporation; | |
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4 | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and l5d-15(f)) for the registrant and have: | |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with generally accepted accounting principles; | |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |
5 | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. |
By /s/ Rodger A. McHargue |
Rodger A. McHargue |
Treasurer and CFO |
(Principal Financial Officer) |
August 7, 2014 | By /s/ Norman L. Lowery |
Norman L. Lowery, Vice Chairman, President & CEO | |
(Principal Executive Officer) | |
August 7, 2014 | By /s/ Rodger A. McHargue |
Rodger A. McHargue, Treasurer & CFO | |
(Principal Financial Officer) |
Securities (Details Textual) (USD $)
|
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2014
|
Jun. 30, 2013
|
Jun. 30, 2014
|
Jun. 30, 2013
|
Mar. 31, 2014
|
Dec. 31, 2013
|
Mar. 31, 2013
|
Dec. 31, 2012
|
Jun. 30, 2012
Other-Than-Temporarily Impaired CDO
|
Jun. 30, 2014
Other-Than-Temporarily Impaired CDO
position
|
Jun. 30, 2014
Minimum [Member]
Other-Than-Temporarily Impaired CDO
|
Jun. 30, 2014
Minimum [Member]
Standard Poors [Member]
|
Jun. 30, 2014
Minimum [Member]
Moody Investor Service [Member]
|
Jun. 30, 2014
Maximum [Member]
Other-Than-Temporarily Impaired CDO
|
Jun. 30, 2014
Maximum [Member]
Standard Poors [Member]
|
Jun. 30, 2014
Maximum [Member]
Moody Investor Service [Member]
|
Jun. 30, 2014
London Interbank Offered Rate (LIBOR) [Member]
|
Jun. 30, 2014
London Interbank Offered Rate (LIBOR) [Member]
Minimum [Member]
|
Jun. 30, 2014
London Interbank Offered Rate (LIBOR) [Member]
Maximum [Member]
|
|
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||||||
Gain on sale of investments | $ 3,000 | $ 7,000 | |||||||||||||||||
Loss on sale of investments | 1,000 | 0 | 11,000 | ||||||||||||||||
Gross unrealized losses | 16,258,000 | 16,258,000 | 26,684,000 | ||||||||||||||||
Number of positions in loss position greater than 12 months | 3 | ||||||||||||||||||
Contractual balance | 25,800,000 | ||||||||||||||||||
Reduced balance | 14,300,000 | ||||||||||||||||||
Interest payment received | 1,600,000 | ||||||||||||||||||
Cumulative OTTI charges | 14,079,000 | 14,983,000 | 14,079,000 | 14,983,000 | 14,079,000 | 14,079,000 | 14,983,000 | 14,983,000 | 14,100,000 | ||||||||||
Other comprehensive income net | 4,200,000 | ||||||||||||||||||
OTTI, portion in other comprehensive loss, net of tax, available-for-sale securities | 2,500,000 | ||||||||||||||||||
Severity of OTTI (as a percent) | 28.00% | 93.00% | |||||||||||||||||
Base discount rate, which is subject to an additional margin | 3 month LIBOR | ||||||||||||||||||
Basis point spread on variable rate | 1.60% | 1.80% | |||||||||||||||||
Amortized Cost | 903,678,000 | 903,678,000 | 920,897,000 | 389,000 | |||||||||||||||
Securities available-for-sale | $ 912,495,000 | $ 912,495,000 | $ 914,560,000 | $ 368,000 | |||||||||||||||
Credit Quality Indicator Pricing | 4.4 | 0.32 | 90.3 | 90.5 |
Accumulated Other Comprehensive Income (Details 1) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2014
|
Jun. 30, 2013
|
Jun. 30, 2014
|
Jun. 30, 2013
|
|
TOTAL Balance | $ (8,551) | $ (8,925) | $ (13,969) | $ (7,472) |
Current Period Change | 4,231 | (10,221) | 9,649 | (11,674) |
TOTAL Balance | (4,320) | (19,146) | (4,320) | (19,146) |
Unrealized gains losses on securities available-for-sale without other than temporary impairment [Member]
|
||||
TOTAL Balance | 511 | 15,161 | (2,499) | 17,044 |
Current Period Change | 2,785 | (12,138) | 5,795 | (14,021) |
TOTAL Balance | 3,296 | 3,023 | 3,296 | 3,023 |
Unrealized gains losses on securities available-for-sale with other than temporary impairment [Member]
|
||||
TOTAL Balance | 1,157 | (3,397) | (1,136) | (3,613) |
Current Period Change | 1,331 | 1,579 | 3,624 | 1,795 |
TOTAL Balance | 2,488 | (1,818) | 2,488 | (1,818) |
Total unrealized loss on securities available-for-sale [Member]
|
||||
TOTAL Balance | 1,668 | 11,764 | (3,635) | 13,431 |
Current Period Change | 4,116 | (10,559) | 9,419 | (12,226) |
TOTAL Balance | 5,784 | 1,205 | 5,784 | 1,205 |
Unrealized loss on retirement plans [Member]
|
||||
TOTAL Balance | (10,219) | (20,689) | (10,334) | (20,903) |
Current Period Change | 115 | 338 | 230 | 552 |
TOTAL Balance | $ (10,104) | $ (20,351) | $ (10,104) | $ (20,351) |
Components of Net Periodic Benefit Cost (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2014
|
Jun. 30, 2013
|
Jun. 30, 2014
|
Jun. 30, 2013
|
|
Pension Benefits [Member]
|
||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 510 | $ 559 | $ 1,020 | $ 1,119 |
Interest cost | 939 | 846 | 1,878 | 1,692 |
Expected return on plan assets | (948) | (827) | (1,897) | (1,655) |
Amortization of transition obligation | 0 | 0 | 0 | |
Net amortization of prior service cost | (2) | (4) | (5) | (8) |
Net amortization of net (gain) loss | 190 | 523 | 379 | 1,046 |
Net Periodic Benefit Cost | 689 | 1,097 | 1,375 | 2,194 |
Post-Retirement Health Benefits [Member]
|
||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 13 | 17 | 26 | 34 |
Interest cost | 44 | 43 | 87 | 87 |
Expected return on plan assets | 0 | 0 | 0 | |
Amortization of transition obligation | 0 | 15 | 30 | |
Net amortization of prior service cost | 0 | 0 | 0 | |
Net amortization of net (gain) loss | 0 | 0 | (1) | 0 |
Net Periodic Benefit Cost | $ 57 | $ 75 | $ 112 | $ 151 |
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