Business Combinations (Tables)

12 Months Ended

Dec. 31, 2012

Business Combinations [Abstract]

Schedule of components of business acquisition

The following table summarizes the amounts recorded at closing:

	February 29, 2012
	(in thousands)
Cash and cash equivalents	$	150,045
Investments and MBS	187,465
Loans receivable, net	349,990
Goodwill	22,577
Core deposit intangible	11,974
Fixed assets	4,038
Other assets	10,886
Total assets acquired	$	736,975
Deposits	$	695,919
Other liabilities	409
Total liabilities assumed	696,328
Net assets acquired	$	40,647

Schedule of pro forma combined results

Cost savings estimates are not included in the pro forma combined results, nor are certain credit impaired loans and associated losses excluded from the purchase and assumption transaction.

	First Independent (stand alone)		Pro Forma Combined
	Years Ended December 31,
	2012		2012		2011
	(in thousands, except per share data; unaudited)
Net interest income	$	20,145	$	311,159	$	326,916
Noninterest income	4,757		155,258		135,828
Net income	10,817		389,935		49,469
Earnings per share - basic	0.17		6.28		0.80
Earnings per share - diluted	$	0.17	$	6.21	$	0.79

Impaired financing receivables

For purchased impaired loans, details as of the acquisition date were as follows:

	February 29, 2012
	(in thousands)
Contractual cash flows	$	24,408
Expected prepayments and credit losses	7,220
Expected cash flows	17,188
Present value of expected cash flows	15,265
Accretable yield	$	1,923

The following table summarizes impaired loans by class as of December 31, 2012 and December 31, 2011:

					Book Balance
	Unpaid Principal Balance		Charge-Offs		Without Specific Reserve		With Specific Reserve		Specific Reserve
	(in thousands)
December 31, 2012
Residential real estate	$	49,816	$	6,391	$	43,060	$	365	$	365
CRE:
Investor CRE	59,099		8,366		33,540		17,193		2,697
Multifamily	9,554		1,405		6,873		1,276		219
Construction	31,040		14,345		15,421		1,274		266
Total CRE	99,693		24,116		55,834		19,743		3,182
Commercial:
Owner Occupied CRE	61,300		6,452		42,075		12,773		4,916
C&I	16,959		12,725		4,234		0		0
Total commercial	78,259		19,177		46,309		12,773		4,916
Consumer	7,671		426		7,245		0		0
Total	$	235,439	$	50,110	$	152,448	$	32,881	$	8,463
					Book Balance
	Unpaid Principal Balance		Charge-Offs		Without Specific Reserve		With Specific Reserve		Specific Reserve
	(in thousands)
December 31, 2011
Residential real estate	$	52,023	$	9,120	$	38,519	$	4,384	$	872
CRE:
Investor CRE	70,517		18,324		31,503		20,690		4,892
Multifamily	6,185		318		4,496		1,371		716
Construction	133,588		38,370		43,281		51,937		5,562
Total CRE	210,290		57,012		79,280		73,998		11,170
Commercial:
Owner Occupied CRE	89,604		16,333		48,194		25,077		4,043
C&I	25,497		13,618		11,207		672		163
Total commercial	115,101		29,951		59,401		25,749		4,206
Consumer	6,613		784		5,246		583		57
Total	$	384,027	$	96,867	$	182,446	$	104,714	$	16,305

The following table presents the average book balance and interest income recognized for impaired loans by class for the periods presented:

	Years Ended December 31,
	2012				2011
	Average Book Balance		Interest Income Recognized		Average Book Balance		Interest Income Recognized
	(in thousands)
Residential real estate	$	43,164	$	819	$	67,157	$	992
Investor CRE	51,463		1,595		79,139		2,245
Multifamily	7,007		441		14,704		804
Construction	55,956		1,708		215,436		1,401
Owner Occupied CRE	64,060		2,553		75,553		2,757
C&I	8,057		105		12,009		460
Consumer	6,537		8		6,901		0
Total	$	236,244	$	7,229	$	470,899	$	8,659

Schedule of roll forward activity for accretable yield

The following table presents a roll-forward of activity for the accretable yield for the purchased impaired loans:

	Year Ended December 31, 2012
	(in thousands)
Beginning balance	$	0
Additions	1,923
Accretion to interest income	(756		)
Reclassifications	165
Ending balance	$	1,332

Schedule of five-year projected accretion of discount to be recognized as increase to interest income

The following table presents the related five-year projected accretion of the discount which will be recognized as an increase to interest income as of December 31, 2012:

	Amount
	(in thousands)
Years ended:
December 31, 2013	$	4,210
December 31, 2014	2,796
December 31, 2015	1,724
December 31, 2016	1,031
December 31, 2017	679