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þ
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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¨
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Michigan
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38-2022454
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer
Identification No.)
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235 E. Main Street
Midland, Michigan
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48640
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(Address of Principal Executive Offices)
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(Zip Code)
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Large accelerated filer
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¨
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Accelerated filer
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þ
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Non-accelerated filer
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¨
(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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March 31,
2013 |
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December 31,
2012 |
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March 31,
2012 |
||||||
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(Unaudited)
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(Unaudited)
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||||||
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(In thousands, except share data)
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||||||||||
Assets
|
|
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|
||||||
Cash and cash equivalents:
|
|
|
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|
||||||
Cash and cash due from banks
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$
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101,501
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$
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142,467
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$
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120,435
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Interest-bearing deposits with the Federal Reserve Bank
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477,225
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513,668
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353,243
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Total cash and cash equivalents
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578,726
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656,135
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|
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473,678
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Investment securities:
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||||||
Available-for-sale, at fair value
|
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703,622
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|
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586,809
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676,007
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Held-to-maturity (fair value - $261,405 at March 31, 2013, $229,922 at December 31, 2012 and $192,372 at March 31, 2012)
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257,749
|
|
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229,977
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191,297
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Total investment securities
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961,371
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816,786
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|
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867,304
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Loans held-for-sale
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14,850
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17,665
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25,080
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|||
Loans
|
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4,185,261
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4,167,735
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3,843,098
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|||
Allowance for loan losses
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(82,834
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)
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(84,491
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)
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(87,785
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)
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Net loans
|
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4,102,427
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4,083,244
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3,755,313
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Premises and equipment (net of accumulated depreciation of $94,068 at March 31, 2013, $93,207 at December 31, 2012 and $88,603 at March 31, 2012)
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73,501
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75,458
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66,661
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Goodwill
|
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120,164
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120,164
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113,414
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Other intangible assets
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14,902
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15,388
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|
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10,939
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Interest receivable and other assets
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124,587
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|
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132,412
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|
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139,130
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Total Assets
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$
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5,990,528
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$
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5,917,252
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$
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5,451,519
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Liabilities and Shareholders’ Equity
|
|
|
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|
||||||
Deposits:
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|
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|
||||||
Noninterest-bearing
|
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$
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1,086,986
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$
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1,085,857
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$
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914,523
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Interest-bearing
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3,920,372
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3,835,586
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3,546,861
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Total deposits
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5,007,358
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4,921,443
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4,461,384
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Interest payable and other liabilities
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30,931
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|
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54,716
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32,809
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Short-term borrowings
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347,484
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|
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310,463
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335,082
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|
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Federal Home Loan Bank (FHLB) advances
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—
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34,289
|
|
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42,120
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Total liabilities
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5,385,773
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5,320,911
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4,871,395
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Shareholders’ equity:
|
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||||||
Preferred stock, no par value:
|
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||||||
Authorized – 200,000 shares, none issued
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—
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—
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—
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Common stock, $1 par value per share:
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Authorized — 45,000,000 shares
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Issued and outstanding — 27,532,377 shares at March 31, 2013, 27,498,868 shares at December 31, 2012 and 27,491,026 shares at March 31, 2012
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27,532
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27,499
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27,491
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Additional paid-in capital
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433,648
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433,195
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431,549
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Retained earnings
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174,209
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166,766
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|
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145,195
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Accumulated other comprehensive loss
|
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(30,634
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)
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(31,119
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)
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(24,111
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)
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Total shareholders’ equity
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604,755
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596,341
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580,124
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Total Liabilities and Shareholders’ Equity
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$
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5,990,528
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$
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5,917,252
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$
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5,451,519
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Three Months Ended
|
||||||
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March 31,
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||||||
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2013
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2012
|
||||
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(In thousands, except per share data)
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Interest Income
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Interest and fees on loans
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$
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47,905
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$
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48,256
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Interest on investment securities:
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Taxable
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2,438
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2,565
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Tax-exempt
|
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1,564
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1,485
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Dividends on nonmarketable equity securities
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151
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130
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|
||
Interest on deposits with the Federal Reserve Bank
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321
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|
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228
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|
||
Total interest income
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52,379
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52,664
|
|
||
Interest Expense
|
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Interest on deposits
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4,566
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6,102
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|
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Interest on short-term borrowings
|
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114
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|
|
104
|
|
||
Interest on FHLB advances
|
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47
|
|
|
263
|
|
||
Total interest expense
|
|
4,727
|
|
|
6,469
|
|
||
Net Interest Income
|
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47,652
|
|
|
46,195
|
|
||
Provision for loan losses
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3,000
|
|
|
5,000
|
|
||
Net interest income after provision for loan losses
|
|
44,652
|
|
|
41,195
|
|
||
Noninterest Income
|
|
|
|
|
||||
Service charges and fees on deposit accounts
|
|
5,195
|
|
|
4,505
|
|
||
Wealth management revenue
|
|
3,445
|
|
|
2,921
|
|
||
Other charges and fees for customer services
|
|
4,651
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|
|
3,365
|
|
||
Mortgage banking revenue
|
|
2,012
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|
|
1,185
|
|
||
Gain on sale of investment securities
|
|
847
|
|
|
—
|
|
||
Gain on sale of merchant card services
|
|
—
|
|
|
1,280
|
|
||
Other
|
|
89
|
|
|
69
|
|
||
Total noninterest income
|
|
16,239
|
|
|
13,325
|
|
||
Operating Expenses
|
|
|
|
|
||||
Salaries, wages and employee benefits
|
|
23,369
|
|
|
20,569
|
|
||
Occupancy
|
|
3,663
|
|
|
3,154
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|
||
Equipment and software
|
|
3,450
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|
|
3,118
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|
||
Other
|
|
11,475
|
|
|
10,130
|
|
||
Total operating expenses
|
|
41,957
|
|
|
36,971
|
|
||
Income before income taxes
|
|
18,934
|
|
|
17,549
|
|
||
Federal income tax expense
|
|
5,700
|
|
|
5,175
|
|
||
Net Income
|
|
$
|
13,234
|
|
|
$
|
12,374
|
|
Net Income Per Common Share:
|
|
|
|
|
||||
Basic
|
|
$
|
0.48
|
|
|
$
|
0.45
|
|
Diluted
|
|
0.48
|
|
|
0.45
|
|
||
Cash Dividends Declared Per Common Share
|
|
0.21
|
|
|
0.20
|
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Net income
|
|
$
|
13,234
|
|
|
$
|
12,374
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
||||
Net unrealized gains on investment securities available-for-sale, net of tax expense of $227 and $469 for the three months ended March 31, 2013, and 2012, respectively
|
|
420
|
|
|
872
|
|
||
Reclassification adjustment for realized gain on sale of investment securities available-for-sale included in net income, net of tax expense of $296 for the three months ended March 31, 2013
|
|
(551
|
)
|
|
—
|
|
||
Adjustment for pension and other postretirement benefits, net of tax expense of $332 and $186 for the three months ended March 31, 2013, and 2012, respectively
|
|
616
|
|
|
346
|
|
||
Total other comprehensive income, net of tax
|
|
485
|
|
|
1,218
|
|
||
Comprehensive income
|
|
$
|
13,719
|
|
|
$
|
13,592
|
|
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
|
||||||||||
|
|
(In thousands, except per share data)
|
||||||||||||||||||
Balances at January 1, 2012
|
|
$
|
27,457
|
|
|
$
|
431,277
|
|
|
$
|
138,324
|
|
|
$
|
(25,329
|
)
|
|
$
|
571,729
|
|
Comprehensive income
|
|
|
|
|
|
12,374
|
|
|
1,218
|
|
|
13,592
|
|
|||||||
Cash dividends declared and paid of $0.20 per share
|
|
|
|
|
|
(5,503
|
)
|
|
|
|
(5,503
|
)
|
||||||||
Shares issued – directors’ stock plans
|
|
12
|
|
|
228
|
|
|
|
|
|
|
240
|
|
|||||||
Shares issued – restricted stock units
|
|
22
|
|
|
(270
|
)
|
|
|
|
|
|
(248
|
)
|
|||||||
Share-based compensation
|
|
|
|
314
|
|
|
|
|
|
|
314
|
|
||||||||
Balances at March 31, 2012
|
|
$
|
27,491
|
|
|
$
|
431,549
|
|
|
$
|
145,195
|
|
|
$
|
(24,111
|
)
|
|
$
|
580,124
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balances at January 1, 2013
|
|
$
|
27,499
|
|
|
$
|
433,195
|
|
|
$
|
166,766
|
|
|
$
|
(31,119
|
)
|
|
$
|
596,341
|
|
Comprehensive income
|
|
|
|
|
|
13,234
|
|
|
485
|
|
|
13,719
|
|
|||||||
Cash dividends declared and paid of $0.21 per share
|
|
|
|
|
|
(5,791
|
)
|
|
|
|
(5,791
|
)
|
||||||||
Shares issued – stock options
|
|
|
|
(10
|
)
|
|
|
|
|
|
(10
|
)
|
||||||||
Shares issued – directors’ stock plans
|
|
11
|
|
|
228
|
|
|
|
|
|
|
239
|
|
|||||||
Shares issued – restricted stock units
|
|
22
|
|
|
(394
|
)
|
|
|
|
|
|
(372
|
)
|
|||||||
Share-based compensation
|
|
|
|
629
|
|
|
|
|
|
|
629
|
|
||||||||
Balances at March 31, 2013
|
|
$
|
27,532
|
|
|
$
|
433,648
|
|
|
$
|
174,209
|
|
|
$
|
(30,634
|
)
|
|
$
|
604,755
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Operating Activities
|
|
|
|
|
||||
Net income
|
|
$
|
13,234
|
|
|
$
|
12,374
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Provision for loan losses
|
|
3,000
|
|
|
5,000
|
|
||
Gains on sales of loans
|
|
(2,394
|
)
|
|
(1,896
|
)
|
||
Proceeds from sales of loans
|
|
71,205
|
|
|
73,162
|
|
||
Loans originated for sale
|
|
(65,996
|
)
|
|
(77,528
|
)
|
||
Net gains on sales of other real estate and repossessed assets
|
|
(235
|
)
|
|
(305
|
)
|
||
Depreciation of premises and equipment
|
|
2,177
|
|
|
1,983
|
|
||
Amortization of intangible assets
|
|
1,001
|
|
|
1,067
|
|
||
Gain on sale of investment securities
|
|
(847
|
)
|
|
—
|
|
||
Net amortization of premiums and discounts on investment securities
|
|
863
|
|
|
1,281
|
|
||
Share-based compensation expense
|
|
629
|
|
|
314
|
|
||
Contributions to defined benefit pension plan
|
|
(15,000
|
)
|
|
(12,000
|
)
|
||
Net decrease in interest receivable and other assets
|
|
7,154
|
|
|
14,426
|
|
||
Net decrease in interest payable and other liabilities
|
|
(7,837
|
)
|
|
(8,716
|
)
|
||
Net cash provided by operating activities
|
|
6,954
|
|
|
9,162
|
|
||
Investing Activities
|
|
|
|
|
||||
Investment securities – available-for-sale:
|
|
|
|
|
||||
Proceeds from sales
|
|
33,028
|
|
|
—
|
|
||
Proceeds from maturities, calls and principal reductions
|
|
41,165
|
|
|
72,992
|
|
||
Purchases
|
|
(191,165
|
)
|
|
(81,537
|
)
|
||
Investment securities – held-to-maturity:
|
|
|
|
|
||||
Proceeds from maturities, calls and principal reductions
|
|
7,111
|
|
|
8,515
|
|
||
Purchases
|
|
(34,940
|
)
|
|
(16,599
|
)
|
||
Net increase in loans
|
|
(24,374
|
)
|
|
(21,660
|
)
|
||
Proceeds from sales of other real estate and repossessed assets
|
|
2,701
|
|
|
4,145
|
|
||
Purchases of premises and equipment and branch bank property, net of disposals
|
|
(602
|
)
|
|
(2,655
|
)
|
||
Net cash used in investing activities
|
|
(167,076
|
)
|
|
(36,799
|
)
|
||
Financing Activities
|
|
|
|
|
||||
Net increase in interest- and noninterest-bearing demand deposits and savings accounts
|
|
125,946
|
|
|
129,749
|
|
||
Net decrease in time deposits
|
|
(40,031
|
)
|
|
(35,222
|
)
|
||
Net increase in short-term borrowings
|
|
37,021
|
|
|
31,296
|
|
||
Repayment of FHLB advances
|
|
(34,289
|
)
|
|
(937
|
)
|
||
Cash dividends paid
|
|
(5,791
|
)
|
|
(5,503
|
)
|
||
Proceeds from directors’ stock plans and exercise of stock options, net of shares withheld
|
|
229
|
|
|
240
|
|
||
Shares issued, net of shares withheld, for restricted stock performance units
|
|
(372
|
)
|
|
(248
|
)
|
||
Net cash provided by financing activities
|
|
82,713
|
|
|
119,375
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
(77,409
|
)
|
|
91,738
|
|
||
Cash and cash equivalents at beginning of period
|
|
656,135
|
|
|
381,940
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
578,726
|
|
|
$
|
473,678
|
|
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
|
||||
Interest paid
|
|
$
|
4,890
|
|
|
$
|
6,577
|
|
Loans transferred to other real estate and repossessed assets
|
|
2,191
|
|
|
4,299
|
|
||
Closed branch offices transferred to other real estate
|
|
382
|
|
|
—
|
|
||
Federal income taxes refunded
|
|
(3,500
|
)
|
|
(8,000
|
)
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Balance at beginning of period
|
|
$
|
49,390
|
|
|
$
|
68,305
|
|
Additions (reductions)*
|
|
(491
|
)
|
|
4,006
|
|
||
Accretion recognized in interest income
|
|
(4,940
|
)
|
|
(6,638
|
)
|
||
Reclassification from nonaccretable difference
|
|
125
|
|
|
—
|
|
||
Balance at end of period
|
|
$
|
44,084
|
|
|
$
|
65,673
|
|
*
|
Represents additions of estimated contractual interest expected to be collected from acquired loans being renewed or extended, less reductions in contractual interest resulting from the early payoff of acquired loans.
|
|
|
Investment Securities Available-for-Sale
|
||||||||||||||
|
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
(In thousands)
|
||||||||||||||
March 31, 2013
|
|
|
|
|
|
|
|
|
||||||||
Government sponsored agencies
|
|
$
|
94,939
|
|
|
$
|
608
|
|
|
$
|
168
|
|
|
$
|
95,379
|
|
State and political subdivisions
|
|
47,043
|
|
|
2,206
|
|
|
—
|
|
|
49,249
|
|
||||
Residential mortgage-backed securities
|
|
237,256
|
|
|
1,984
|
|
|
48
|
|
|
239,192
|
|
||||
Collateralized mortgage obligations
|
|
246,751
|
|
|
1,087
|
|
|
170
|
|
|
247,668
|
|
||||
Corporate bonds
|
|
65,114
|
|
|
783
|
|
|
349
|
|
|
65,548
|
|
||||
Preferred stock
|
|
6,144
|
|
|
442
|
|
|
—
|
|
|
6,586
|
|
||||
Total
|
|
$
|
697,247
|
|
|
$
|
7,110
|
|
|
$
|
735
|
|
|
$
|
703,622
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
||||||||
Government sponsored agencies
|
|
$
|
97,529
|
|
|
$
|
241
|
|
|
$
|
213
|
|
|
$
|
97,557
|
|
State and political subdivisions
|
|
47,663
|
|
|
2,302
|
|
|
—
|
|
|
49,965
|
|
||||
Residential mortgage-backed securities
|
|
96,320
|
|
|
3,100
|
|
|
9
|
|
|
99,411
|
|
||||
Collateralized mortgage obligations
|
|
262,790
|
|
|
984
|
|
|
182
|
|
|
263,592
|
|
||||
Corporate bonds
|
|
69,788
|
|
|
546
|
|
|
539
|
|
|
69,795
|
|
||||
Preferred stock
|
|
6,144
|
|
|
345
|
|
|
—
|
|
|
6,489
|
|
||||
Total
|
|
$
|
580,234
|
|
|
$
|
7,518
|
|
|
$
|
943
|
|
|
$
|
586,809
|
|
March 31, 2012
|
|
|
|
|
|
|
|
|
||||||||
Government sponsored agencies
|
|
$
|
77,365
|
|
|
$
|
240
|
|
|
$
|
79
|
|
|
$
|
77,526
|
|
State and political subdivisions
|
|
41,816
|
|
|
2,240
|
|
|
—
|
|
|
44,056
|
|
||||
Residential mortgage-backed securities
|
|
107,126
|
|
|
3,938
|
|
|
159
|
|
|
110,905
|
|
||||
Collateralized mortgage obligations
|
|
355,291
|
|
|
1,356
|
|
|
695
|
|
|
355,952
|
|
||||
Corporate bonds
|
|
86,547
|
|
|
218
|
|
|
699
|
|
|
86,066
|
|
||||
Preferred stock
|
|
1,389
|
|
|
113
|
|
|
—
|
|
|
1,502
|
|
||||
Total
|
|
$
|
669,534
|
|
|
$
|
8,105
|
|
|
$
|
1,632
|
|
|
$
|
676,007
|
|
|
|
Investment Securities Held-to-Maturity
|
||||||||||||||
|
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
(In thousands)
|
||||||||||||||
March 31, 2013
|
|
|
|
|
|
|
|
|
||||||||
State and political subdivisions
|
|
$
|
247,249
|
|
|
$
|
10,002
|
|
|
$
|
1,886
|
|
|
$
|
255,365
|
|
Trust preferred securities
|
|
10,500
|
|
|
—
|
|
|
4,460
|
|
|
6,040
|
|
||||
Total
|
|
$
|
257,749
|
|
|
$
|
10,002
|
|
|
$
|
6,346
|
|
|
$
|
261,405
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
||||||||
State and political subdivisions
|
|
$
|
219,477
|
|
|
$
|
8,087
|
|
|
$
|
3,367
|
|
|
$
|
224,197
|
|
Trust preferred securities
|
|
10,500
|
|
|
—
|
|
|
4,775
|
|
|
5,725
|
|
||||
Total
|
|
$
|
229,977
|
|
|
$
|
8,087
|
|
|
$
|
8,142
|
|
|
$
|
229,922
|
|
March 31, 2012
|
|
|
|
|
|
|
|
|
||||||||
State and political subdivisions
|
|
$
|
180,797
|
|
|
$
|
7,449
|
|
|
$
|
549
|
|
|
$
|
187,697
|
|
Trust preferred securities
|
|
10,500
|
|
|
—
|
|
|
5,825
|
|
|
4,675
|
|
||||
Total
|
|
$
|
191,297
|
|
|
$
|
7,449
|
|
|
$
|
6,374
|
|
|
$
|
192,372
|
|
|
|
March 31, 2013
|
||||||
|
|
Amortized
Cost
|
|
Fair Value
|
||||
|
|
(In thousands)
|
||||||
Investment Securities Available-for-Sale:
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
111,238
|
|
|
$
|
112,000
|
|
Due after one year through five years
|
|
110,514
|
|
|
112,051
|
|
||
Due after five years through ten years
|
|
351,441
|
|
|
353,879
|
|
||
Due after ten years
|
|
117,910
|
|
|
119,106
|
|
||
Preferred stock
|
|
6,144
|
|
|
6,586
|
|
||
Total
|
|
$
|
697,247
|
|
|
$
|
703,622
|
|
Investment Securities Held-to-Maturity:
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
37,103
|
|
|
$
|
37,168
|
|
Due after one year through five years
|
|
103,486
|
|
|
106,000
|
|
||
Due after five years through ten years
|
|
78,048
|
|
|
82,248
|
|
||
Due after ten years
|
|
39,112
|
|
|
35,989
|
|
||
Total
|
|
$
|
257,749
|
|
|
$
|
261,405
|
|
|
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
March 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Government sponsored agencies
|
|
$
|
17,281
|
|
|
$
|
168
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,281
|
|
|
$
|
168
|
|
State and political subdivisions
|
|
73,880
|
|
|
1,667
|
|
|
10,685
|
|
|
219
|
|
|
84,565
|
|
|
1,886
|
|
||||||
Residential mortgage-backed securities
|
|
86,179
|
|
|
45
|
|
|
374
|
|
|
3
|
|
|
86,553
|
|
|
48
|
|
||||||
Collateralized mortgage obligations
|
|
27,802
|
|
|
133
|
|
|
8,560
|
|
|
37
|
|
|
36,362
|
|
|
170
|
|
||||||
Corporate bonds
|
|
—
|
|
|
—
|
|
|
19,651
|
|
|
349
|
|
|
19,651
|
|
|
349
|
|
||||||
Trust preferred securities
|
|
—
|
|
|
—
|
|
|
6,040
|
|
|
4,460
|
|
|
6,040
|
|
|
4,460
|
|
||||||
Total
|
|
$
|
205,142
|
|
|
$
|
2,013
|
|
|
$
|
45,310
|
|
|
$
|
5,068
|
|
|
$
|
250,452
|
|
|
$
|
7,081
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Government sponsored agencies
|
|
$
|
46,103
|
|
|
$
|
213
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
46,103
|
|
|
$
|
213
|
|
State and political subdivisions
|
|
70,675
|
|
|
2,257
|
|
|
8,046
|
|
|
1,110
|
|
|
78,721
|
|
|
3,367
|
|
||||||
Residential mortgage-backed securities
|
|
273
|
|
|
1
|
|
|
1,305
|
|
|
8
|
|
|
1,578
|
|
|
9
|
|
||||||
Collateralized mortgage obligations
|
|
19,331
|
|
|
10
|
|
|
36,835
|
|
|
172
|
|
|
56,166
|
|
|
182
|
|
||||||
Corporate bonds
|
|
4,747
|
|
|
253
|
|
|
34,707
|
|
|
286
|
|
|
39,454
|
|
|
539
|
|
||||||
Trust preferred securities
|
|
—
|
|
|
—
|
|
|
5,725
|
|
|
4,775
|
|
|
5,725
|
|
|
4,775
|
|
||||||
Total
|
|
$
|
141,129
|
|
|
$
|
2,734
|
|
|
$
|
86,618
|
|
|
$
|
6,351
|
|
|
$
|
227,747
|
|
|
$
|
9,085
|
|
March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Government sponsored agencies
|
|
$
|
19,205
|
|
|
$
|
54
|
|
|
$
|
9,897
|
|
|
$
|
25
|
|
|
$
|
29,102
|
|
|
$
|
79
|
|
State and political subdivisions
|
|
26,775
|
|
|
525
|
|
|
3,956
|
|
|
24
|
|
|
30,731
|
|
|
549
|
|
||||||
Residential mortgage-backed securities
|
|
32
|
|
|
1
|
|
|
20,630
|
|
|
158
|
|
|
20,662
|
|
|
159
|
|
||||||
Collateralized mortgage obligations
|
|
79,386
|
|
|
448
|
|
|
39,597
|
|
|
247
|
|
|
118,983
|
|
|
695
|
|
||||||
Corporate bonds
|
|
29,598
|
|
|
392
|
|
|
14,693
|
|
|
307
|
|
|
44,291
|
|
|
699
|
|
||||||
Trust preferred securities
|
|
—
|
|
|
—
|
|
|
4,675
|
|
|
5,825
|
|
|
4,675
|
|
|
5,825
|
|
||||||
Total
|
|
$
|
154,996
|
|
|
$
|
1,420
|
|
|
$
|
93,448
|
|
|
$
|
6,586
|
|
|
$
|
248,444
|
|
|
$
|
8,006
|
|
|
|
March 31,
2013 |
|
December 31,
2012 |
|
March 31,
2012 |
||||||
|
|
(In thousands)
|
||||||||||
Commercial loan portfolio:
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
1,038,115
|
|
|
$
|
1,002,722
|
|
|
$
|
903,935
|
|
Commercial real estate
|
|
1,162,383
|
|
|
1,161,861
|
|
|
1,095,793
|
|
|||
Real estate construction
|
|
65,367
|
|
|
62,689
|
|
|
56,906
|
|
|||
Land development
|
|
32,640
|
|
|
37,548
|
|
|
44,251
|
|
|||
Subtotal
|
|
2,298,505
|
|
|
2,264,820
|
|
|
2,100,885
|
|
|||
Consumer loan portfolio:
|
|
|
|
|
|
|
||||||
Residential mortgage
|
|
872,454
|
|
|
883,835
|
|
|
861,301
|
|
|||
Consumer installment
|
|
540,216
|
|
|
546,036
|
|
|
480,622
|
|
|||
Home equity
|
|
474,086
|
|
|
473,044
|
|
|
400,290
|
|
|||
Subtotal
|
|
1,886,756
|
|
|
1,902,915
|
|
|
1,742,213
|
|
|||
Total loans
|
|
$
|
4,185,261
|
|
|
$
|
4,167,735
|
|
|
$
|
3,843,098
|
|
|
|
Commercial
|
|
Real Estate
Commercial
|
|
Real Estate
Construction
|
|
Land
Development
|
|
Total
|
||||||||||
|
|
(In thousands)
|
||||||||||||||||||
March 31, 2013
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Originated Portfolio:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Grades 1-5
|
|
$
|
868,683
|
|
|
$
|
858,484
|
|
|
$
|
50,601
|
|
|
$
|
11,720
|
|
|
$
|
1,789,488
|
|
Risk Grade 6
|
|
28,037
|
|
|
44,603
|
|
|
59
|
|
|
434
|
|
|
73,133
|
|
|||||
Risk Grade 7
|
|
26,040
|
|
|
29,359
|
|
|
1,020
|
|
|
5,754
|
|
|
62,173
|
|
|||||
Risk Grade 8
|
|
10,471
|
|
|
34,170
|
|
|
168
|
|
|
4,105
|
|
|
48,914
|
|
|||||
Risk Grade 9
|
|
1,715
|
|
|
1,679
|
|
|
—
|
|
|
—
|
|
|
3,394
|
|
|||||
Subtotal
|
|
934,946
|
|
|
968,295
|
|
|
51,848
|
|
|
22,013
|
|
|
1,977,102
|
|
|||||
Acquired Portfolio:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Grades 1-5
|
|
93,560
|
|
|
176,523
|
|
|
13,519
|
|
|
7,783
|
|
|
291,385
|
|
|||||
Risk Grade 6
|
|
6,870
|
|
|
5,035
|
|
|
—
|
|
|
242
|
|
|
12,147
|
|
|||||
Risk Grade 7
|
|
874
|
|
|
11,146
|
|
|
—
|
|
|
—
|
|
|
12,020
|
|
|||||
Risk Grade 8
|
|
1,865
|
|
|
1,384
|
|
|
—
|
|
|
2,602
|
|
|
5,851
|
|
|||||
Risk Grade 9
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Subtotal
|
|
103,169
|
|
|
194,088
|
|
|
13,519
|
|
|
10,627
|
|
|
321,403
|
|
|||||
Total
|
|
$
|
1,038,115
|
|
|
$
|
1,162,383
|
|
|
$
|
65,367
|
|
|
$
|
32,640
|
|
|
$
|
2,298,505
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Originated Portfolio:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Grades 1-5
|
|
$
|
827,112
|
|
|
$
|
846,901
|
|
|
$
|
47,847
|
|
|
$
|
15,010
|
|
|
$
|
1,736,870
|
|
Risk Grade 6
|
|
38,066
|
|
|
45,261
|
|
|
59
|
|
|
497
|
|
|
83,883
|
|
|||||
Risk Grade 7
|
|
16,831
|
|
|
26,343
|
|
|
—
|
|
|
6,367
|
|
|
49,541
|
|
|||||
Risk Grade 8
|
|
12,540
|
|
|
33,345
|
|
|
1,217
|
|
|
4,184
|
|
|
51,286
|
|
|||||
Risk Grade 9
|
|
2,061
|
|
|
4,315
|
|
|
—
|
|
|
—
|
|
|
6,376
|
|
|||||
Subtotal
|
|
896,610
|
|
|
956,165
|
|
|
49,123
|
|
|
26,058
|
|
|
1,927,956
|
|
|||||
Acquired Portfolio:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Grades 1-5
|
|
93,281
|
|
|
188,499
|
|
|
13,566
|
|
|
8,419
|
|
|
303,765
|
|
|||||
Risk Grade 6
|
|
8,225
|
|
|
5,900
|
|
|
—
|
|
|
237
|
|
|
14,362
|
|
|||||
Risk Grade 7
|
|
2,169
|
|
|
9,677
|
|
|
—
|
|
|
—
|
|
|
11,846
|
|
|||||
Risk Grade 8
|
|
2,437
|
|
|
1,620
|
|
|
—
|
|
|
2,834
|
|
|
6,891
|
|
|||||
Risk Grade 9
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Subtotal
|
|
106,112
|
|
|
205,696
|
|
|
13,566
|
|
|
11,490
|
|
|
336,864
|
|
|||||
Total
|
|
$
|
1,002,722
|
|
|
$
|
1,161,861
|
|
|
$
|
62,689
|
|
|
$
|
37,548
|
|
|
$
|
2,264,820
|
|
March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Originated Portfolio:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Grades 1-5
|
|
$
|
715,244
|
|
|
$
|
729,709
|
|
|
$
|
38,133
|
|
|
$
|
16,782
|
|
|
$
|
1,499,868
|
|
Risk Grade 6
|
|
23,995
|
|
|
31,818
|
|
|
—
|
|
|
4,119
|
|
|
59,932
|
|
|||||
Risk Grade 7
|
|
23,119
|
|
|
41,963
|
|
|
539
|
|
|
6,799
|
|
|
72,420
|
|
|||||
Risk Grade 8
|
|
10,836
|
|
|
43,319
|
|
|
61
|
|
|
2,426
|
|
|
56,642
|
|
|||||
Risk Grade 9
|
|
607
|
|
|
3,551
|
|
|
—
|
|
|
1,322
|
|
|
5,480
|
|
|||||
Subtotal
|
|
773,801
|
|
|
850,360
|
|
|
38,733
|
|
|
31,448
|
|
|
1,694,342
|
|
|||||
Acquired Portfolio:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Grades 1-5
|
|
109,109
|
|
|
219,944
|
|
|
18,173
|
|
|
9,304
|
|
|
356,530
|
|
|||||
Risk Grade 6
|
|
11,529
|
|
|
14,149
|
|
|
—
|
|
|
—
|
|
|
25,678
|
|
|||||
Risk Grade 7
|
|
2,559
|
|
|
10,284
|
|
|
—
|
|
|
412
|
|
|
13,255
|
|
|||||
Risk Grade 8
|
|
6,937
|
|
|
1,056
|
|
|
—
|
|
|
3,087
|
|
|
11,080
|
|
|||||
Risk Grade 9
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Subtotal
|
|
130,134
|
|
|
245,433
|
|
|
18,173
|
|
|
12,803
|
|
|
406,543
|
|
|||||
Total
|
|
$
|
903,935
|
|
|
$
|
1,095,793
|
|
|
$
|
56,906
|
|
|
$
|
44,251
|
|
|
$
|
2,100,885
|
|
|
|
Residential Mortgage
|
|
Consumer
Installment
|
|
Home Equity
|
|
Total
Consumer
|
||||||||
|
|
(In thousands)
|
||||||||||||||
March 31, 2013
|
|
|
|
|
|
|
|
|
||||||||
Originated Loans:
|
|
|
|
|
|
|
|
|
||||||||
Performing
|
|
$
|
844,240
|
|
|
$
|
537,817
|
|
|
$
|
432,489
|
|
|
$
|
1,814,546
|
|
Nonperforming
|
|
14,931
|
|
|
699
|
|
|
3,711
|
|
|
19,341
|
|
||||
Subtotal
|
|
859,171
|
|
|
538,516
|
|
|
436,200
|
|
|
1,833,887
|
|
||||
Acquired Loans:
|
|
|
|
|
|
|
|
|
||||||||
Performing
|
|
13,283
|
|
|
1,700
|
|
|
37,724
|
|
|
52,707
|
|
||||
Nonperforming
|
|
—
|
|
|
—
|
|
|
162
|
|
|
162
|
|
||||
Subtotal
|
|
13,283
|
|
|
1,700
|
|
|
37,886
|
|
|
52,869
|
|
||||
Total
|
|
$
|
872,454
|
|
|
$
|
540,216
|
|
|
$
|
474,086
|
|
|
$
|
1,886,756
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
||||||||
Originated Loans:
|
|
|
|
|
|
|
|
|
||||||||
Performing
|
|
$
|
854,882
|
|
|
$
|
543,339
|
|
|
$
|
429,734
|
|
|
$
|
1,827,955
|
|
Nonperforming
|
|
14,988
|
|
|
739
|
|
|
3,502
|
|
|
19,229
|
|
||||
Subtotal
|
|
869,870
|
|
|
544,078
|
|
|
433,236
|
|
|
1,847,184
|
|
||||
Acquired Loans:
|
|
|
|
|
|
|
|
|
||||||||
Performing
|
|
13,843
|
|
|
1,958
|
|
|
39,637
|
|
|
55,438
|
|
||||
Nonperforming
|
|
122
|
|
|
—
|
|
|
171
|
|
|
293
|
|
||||
Subtotal
|
|
13,965
|
|
|
1,958
|
|
|
39,808
|
|
|
55,731
|
|
||||
Total
|
|
$
|
883,835
|
|
|
$
|
546,036
|
|
|
$
|
473,044
|
|
|
$
|
1,902,915
|
|
March 31, 2012
|
|
|
|
|
|
|
|
|
||||||||
Originated Loans:
|
|
|
|
|
|
|
|
|
||||||||
Performing
|
|
$
|
824,323
|
|
|
$
|
476,610
|
|
|
$
|
350,916
|
|
|
$
|
1,651,849
|
|
Nonperforming
|
|
18,511
|
|
|
1,278
|
|
|
4,299
|
|
|
24,088
|
|
||||
Subtotal
|
|
842,834
|
|
|
477,888
|
|
|
355,215
|
|
|
1,675,937
|
|
||||
Acquired Loans:
|
|
|
|
|
|
|
|
|
||||||||
Performing
|
|
17,459
|
|
|
2,734
|
|
|
44,571
|
|
|
64,764
|
|
||||
Nonperforming
|
|
1,008
|
|
|
—
|
|
|
504
|
|
|
1,512
|
|
||||
Subtotal
|
|
18,467
|
|
|
2,734
|
|
|
45,075
|
|
|
66,276
|
|
||||
Total
|
|
$
|
861,301
|
|
|
$
|
480,622
|
|
|
$
|
400,290
|
|
|
$
|
1,742,213
|
|
|
|
March 31,
2013 |
|
December 31,
2012 |
|
March 31,
2012 |
||||||
|
|
(In thousands)
|
||||||||||
Nonaccrual loans:
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
12,186
|
|
|
$
|
14,601
|
|
|
$
|
11,443
|
|
Commercial real estate
|
|
35,849
|
|
|
37,660
|
|
|
46,870
|
|
|||
Real estate construction
|
|
168
|
|
|
1,217
|
|
|
61
|
|
|||
Land development
|
|
4,105
|
|
|
4,184
|
|
|
3,748
|
|
|||
Residential mortgage
|
|
10,407
|
|
|
10,164
|
|
|
12,687
|
|
|||
Consumer installment
|
|
699
|
|
|
739
|
|
|
1,278
|
|
|||
Home equity
|
|
2,837
|
|
|
2,733
|
|
|
3,066
|
|
|||
Total nonaccrual loans
|
|
66,251
|
|
|
71,298
|
|
|
79,153
|
|
|||
Accruing loans contractually past due 90 days or more as to interest or principal payments:
|
|
|
|
|
|
|
||||||
Commercial
|
|
4
|
|
|
—
|
|
|
1,005
|
|
|||
Commercial real estate
|
|
177
|
|
|
87
|
|
|
75
|
|
|||
Real estate construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential mortgage
|
|
196
|
|
|
1,503
|
|
|
333
|
|
|||
Consumer installment
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Home equity
|
|
874
|
|
|
769
|
|
|
1,233
|
|
|||
Total accruing loans contractually past due 90 days or more as to interest or principal payments
|
|
1,251
|
|
|
2,359
|
|
|
2,646
|
|
|||
Nonperforming TDRs:
|
|
|
|
|
|
|
||||||
Commercial loan portfolio
|
|
14,587
|
|
|
13,876
|
|
|
11,258
|
|
|||
Consumer loan portfolio
|
|
4,328
|
|
|
3,321
|
|
|
5,491
|
|
|||
Total nonperforming TDRs
|
|
18,915
|
|
|
17,197
|
|
|
16,749
|
|
|||
Total nonperforming loans
|
|
$
|
86,417
|
|
|
$
|
90,854
|
|
|
$
|
98,548
|
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Valuation
Allowance
|
||||||
|
|
(In thousands)
|
||||||||||
March 31, 2013
|
|
|
|
|
|
|
||||||
Impaired loans with a valuation allowance:
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
4,347
|
|
|
$
|
4,931
|
|
|
$
|
1,629
|
|
Commercial real estate
|
|
12,876
|
|
|
13,045
|
|
|
3,893
|
|
|||
Residential mortgage
|
|
17,296
|
|
|
17,296
|
|
|
662
|
|
|||
Subtotal
|
|
34,519
|
|
|
35,272
|
|
|
6,184
|
|
|||
Impaired loans with no related valuation allowance:
|
|
|
|
|
|
|
||||||
Commercial
|
|
21,565
|
|
|
26,737
|
|
|
—
|
|
|||
Commercial real estate
|
|
42,852
|
|
|
56,259
|
|
|
—
|
|
|||
Real estate construction
|
|
372
|
|
|
442
|
|
|
—
|
|
|||
Land development
|
|
11,247
|
|
|
15,510
|
|
|
—
|
|
|||
Residential mortgage
|
|
10,407
|
|
|
10,407
|
|
|
—
|
|
|||
Consumer installment
|
|
699
|
|
|
699
|
|
|
—
|
|
|||
Home equity
|
|
2,837
|
|
|
2,837
|
|
|
—
|
|
|||
Subtotal
|
|
89,979
|
|
|
112,891
|
|
|
—
|
|
|||
Total impaired loans:
|
|
|
|
|
|
|
||||||
Commercial
|
|
25,912
|
|
|
31,668
|
|
|
1,629
|
|
|||
Commercial real estate
|
|
55,728
|
|
|
69,304
|
|
|
3,893
|
|
|||
Real estate construction
|
|
372
|
|
|
442
|
|
|
—
|
|
|||
Land development
|
|
11,247
|
|
|
15,510
|
|
|
—
|
|
|||
Residential mortgage
|
|
27,703
|
|
|
27,703
|
|
|
662
|
|
|||
Consumer installment
|
|
699
|
|
|
699
|
|
|
—
|
|
|||
Home equity
|
|
2,837
|
|
|
2,837
|
|
|
—
|
|
|||
Total
|
|
$
|
124,498
|
|
|
$
|
148,163
|
|
|
$
|
6,184
|
|
December 31, 2012
|
|
|
|
|
|
|
||||||
Impaired loans with a valuation allowance:
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
6,368
|
|
|
$
|
6,818
|
|
|
$
|
1,966
|
|
Commercial real estate
|
|
17,267
|
|
|
17,607
|
|
|
5,359
|
|
|||
Real estate construction
|
|
171
|
|
|
171
|
|
|
75
|
|
|||
Land development
|
|
254
|
|
|
254
|
|
|
50
|
|
|||
Residential mortgage
|
|
18,901
|
|
|
18,901
|
|
|
658
|
|
|||
Subtotal
|
|
42,961
|
|
|
43,751
|
|
|
8,108
|
|
|||
Impaired loans with no related valuation allowance:
|
|
|
|
|
|
|
||||||
Commercial
|
|
23,230
|
|
|
27,959
|
|
|
—
|
|
|||
Commercial real estate
|
|
37,223
|
|
|
48,531
|
|
|
—
|
|
|||
Real estate construction
|
|
1,046
|
|
|
1,116
|
|
|
—
|
|
|||
Land development
|
|
10,867
|
|
|
15,112
|
|
|
—
|
|
|||
Residential mortgage
|
|
10,164
|
|
|
10,164
|
|
|
—
|
|
|||
Consumer installment
|
|
739
|
|
|
739
|
|
|
—
|
|
|||
Home equity
|
|
2,733
|
|
|
2,733
|
|
|
—
|
|
|||
Subtotal
|
|
86,002
|
|
|
106,354
|
|
|
—
|
|
|||
Total impaired loans:
|
|
|
|
|
|
|
||||||
Commercial
|
|
29,598
|
|
|
34,777
|
|
|
1,966
|
|
|||
Commercial real estate
|
|
54,490
|
|
|
66,138
|
|
|
5,359
|
|
|||
Real estate construction
|
|
1,217
|
|
|
1,287
|
|
|
75
|
|
|||
Land development
|
|
11,121
|
|
|
15,366
|
|
|
50
|
|
|||
Residential mortgage
|
|
29,065
|
|
|
29,065
|
|
|
658
|
|
|||
Consumer installment
|
|
739
|
|
|
739
|
|
|
—
|
|
|||
Home equity
|
|
2,733
|
|
|
2,733
|
|
|
—
|
|
|||
Total
|
|
$
|
128,963
|
|
|
$
|
150,105
|
|
|
$
|
8,108
|
|
|
|
|
|
|
|
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Valuation
Allowance
|
||||||
|
|
(In thousands)
|
||||||||||
March 31, 2012
|
|
|
|
|
|
|
||||||
Impaired loans with a valuation allowance:
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
7,039
|
|
|
$
|
7,980
|
|
|
$
|
1,936
|
|
Commercial real estate
|
|
22,714
|
|
|
23,450
|
|
|
6,913
|
|
|||
Land development
|
|
1,158
|
|
|
1,164
|
|
|
328
|
|
|||
Residential mortgage
|
|
24,147
|
|
|
24,147
|
|
|
710
|
|
|||
Subtotal
|
|
55,058
|
|
|
56,741
|
|
|
9,887
|
|
|||
Impaired loans with no related valuation allowance:
|
|
|
|
|
|
|
||||||
Commercial
|
|
19,832
|
|
|
28,011
|
|
|
—
|
|
|||
Commercial real estate
|
|
38,884
|
|
|
52,659
|
|
|
—
|
|
|||
Real estate construction
|
|
61
|
|
|
61
|
|
|
—
|
|
|||
Land development
|
|
7,708
|
|
|
12,739
|
|
|
—
|
|
|||
Residential mortgage
|
|
12,687
|
|
|
12,687
|
|
|
—
|
|
|||
Consumer installment
|
|
1,278
|
|
|
1,278
|
|
|
—
|
|
|||
Home equity
|
|
3,066
|
|
|
3,066
|
|
|
—
|
|
|||
Subtotal
|
|
83,516
|
|
|
110,501
|
|
|
—
|
|
|||
Total impaired loans:
|
|
|
|
|
|
|
||||||
Commercial
|
|
26,871
|
|
|
35,991
|
|
|
1,936
|
|
|||
Commercial real estate
|
|
61,598
|
|
|
76,109
|
|
|
6,913
|
|
|||
Real estate construction
|
|
61
|
|
|
61
|
|
|
—
|
|
|||
Land development
|
|
8,866
|
|
|
13,903
|
|
|
328
|
|
|||
Residential mortgage
|
|
36,834
|
|
|
36,834
|
|
|
710
|
|
|||
Consumer installment
|
|
1,278
|
|
|
1,278
|
|
|
—
|
|
|||
Home equity
|
|
3,066
|
|
|
3,066
|
|
|
—
|
|
|||
Total
|
|
$
|
138,574
|
|
|
$
|
167,242
|
|
|
$
|
9,887
|
|
|
|
Average
Recorded
Investment
|
|
Interest Income
Recognized
While on
Impaired Status
|
||||
|
|
(In thousands)
|
||||||
Three Months Ended March 31, 2013
|
|
|
|
|
||||
Commercial
|
|
$
|
26,953
|
|
|
$
|
193
|
|
Commercial real estate
|
|
56,745
|
|
|
288
|
|
||
Real estate construction
|
|
363
|
|
|
2
|
|
||
Land development
|
|
10,914
|
|
|
91
|
|
||
Residential mortgage
|
|
28,920
|
|
|
295
|
|
||
Consumer installment
|
|
719
|
|
|
—
|
|
||
Home equity
|
|
2,962
|
|
|
—
|
|
||
Total
|
|
$
|
127,576
|
|
|
$
|
869
|
|
Three Months Ended March 31, 2012
|
|
|
|
|
||||
Commercial
|
|
$
|
26,096
|
|
|
$
|
174
|
|
Commercial real estate
|
|
62,015
|
|
|
228
|
|
||
Real estate construction
|
|
64
|
|
|
—
|
|
||
Land development
|
|
7,727
|
|
|
72
|
|
||
Residential mortgage
|
|
37,629
|
|
|
393
|
|
||
Consumer installment
|
|
1,538
|
|
|
—
|
|
||
Home equity
|
|
2,824
|
|
|
—
|
|
||
Total
|
|
$
|
137,893
|
|
|
$
|
867
|
|
|
|
31-60
Days
Past Due
|
|
61-89
Days
Past Due
|
|
Accruing
Loans
Past Due
90 Days
or More
|
|
Non-accrual
Loans
|
|
Total
Past Due
|
|
Current
|
|
Total
Loans
|
||||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||||||
March 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Originated Portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
|
$
|
7,948
|
|
|
$
|
1,664
|
|
|
$
|
4
|
|
|
$
|
12,186
|
|
|
$
|
21,802
|
|
|
$
|
913,144
|
|
|
$
|
934,946
|
|
Commercial real estate
|
|
9,195
|
|
|
2,541
|
|
|
177
|
|
|
35,849
|
|
|
47,762
|
|
|
920,533
|
|
|
968,295
|
|
|||||||
Real estate construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
168
|
|
|
168
|
|
|
51,680
|
|
|
51,848
|
|
|||||||
Land development
|
|
927
|
|
|
—
|
|
|
—
|
|
|
4,105
|
|
|
5,032
|
|
|
16,981
|
|
|
22,013
|
|
|||||||
Residential mortgage
|
|
2,605
|
|
|
831
|
|
|
196
|
|
|
10,407
|
|
|
14,039
|
|
|
845,132
|
|
|
859,171
|
|
|||||||
Consumer installment
|
|
2,038
|
|
|
524
|
|
|
—
|
|
|
699
|
|
|
3,261
|
|
|
535,255
|
|
|
538,516
|
|
|||||||
Home equity
|
|
1,374
|
|
|
235
|
|
|
874
|
|
|
2,837
|
|
|
5,320
|
|
|
430,880
|
|
|
436,200
|
|
|||||||
Total
|
|
$
|
24,087
|
|
|
$
|
5,795
|
|
|
$
|
1,251
|
|
|
$
|
66,251
|
|
|
$
|
97,384
|
|
|
$
|
3,713,605
|
|
|
$
|
3,810,989
|
|
Acquired Portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
|
$
|
191
|
|
|
$
|
—
|
|
|
$
|
2,504
|
|
|
$
|
—
|
|
|
$
|
2,695
|
|
|
$
|
100,474
|
|
|
$
|
103,169
|
|
Commercial real estate
|
|
479
|
|
|
157
|
|
|
3,341
|
|
|
—
|
|
|
3,977
|
|
|
190,111
|
|
|
194,088
|
|
|||||||
Real estate construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,519
|
|
|
13,519
|
|
|||||||
Land development
|
|
—
|
|
|
—
|
|
|
2,602
|
|
|
—
|
|
|
2,602
|
|
|
8,025
|
|
|
10,627
|
|
|||||||
Residential mortgage
|
|
405
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
405
|
|
|
12,878
|
|
|
13,283
|
|
|||||||
Consumer installment
|
|
34
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
1,633
|
|
|
1,700
|
|
|||||||
Home equity
|
|
154
|
|
|
—
|
|
|
162
|
|
|
—
|
|
|
316
|
|
|
37,570
|
|
|
37,886
|
|
|||||||
Total
|
|
$
|
1,263
|
|
|
$
|
190
|
|
|
$
|
8,609
|
|
|
$
|
—
|
|
|
$
|
10,062
|
|
|
$
|
364,210
|
|
|
$
|
374,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31-60
Days
Past Due
|
|
61-89
Days
Past Due
|
|
Accruing
Loans
Past Due
90 Days
or More
|
|
Non-accrual
Loans
|
|
Total
Past Due
|
|
Current
|
|
Total
Loans
|
||||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||||||
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Originated Portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
|
$
|
3,999
|
|
|
$
|
730
|
|
|
$
|
—
|
|
|
$
|
14,601
|
|
|
$
|
19,330
|
|
|
$
|
877,280
|
|
|
$
|
896,610
|
|
Commercial real estate
|
|
5,852
|
|
|
2,089
|
|
|
87
|
|
|
37,660
|
|
|
45,688
|
|
|
910,477
|
|
|
956,165
|
|
|||||||
Real estate construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,217
|
|
|
1,217
|
|
|
47,906
|
|
|
49,123
|
|
|||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,184
|
|
|
4,184
|
|
|
21,874
|
|
|
26,058
|
|
|||||||
Residential mortgage
|
|
3,161
|
|
|
55
|
|
|
1,503
|
|
|
10,164
|
|
|
14,883
|
|
|
854,987
|
|
|
869,870
|
|
|||||||
Consumer installment
|
|
2,415
|
|
|
378
|
|
|
—
|
|
|
739
|
|
|
3,532
|
|
|
540,546
|
|
|
544,078
|
|
|||||||
Home equity
|
|
1,618
|
|
|
427
|
|
|
769
|
|
|
2,733
|
|
|
5,547
|
|
|
427,689
|
|
|
433,236
|
|
|||||||
Total
|
|
$
|
17,045
|
|
|
$
|
3,679
|
|
|
$
|
2,359
|
|
|
$
|
71,298
|
|
|
$
|
94,381
|
|
|
$
|
3,680,759
|
|
|
$
|
3,775,140
|
|
Acquired Portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,834
|
|
|
$
|
—
|
|
|
$
|
2,834
|
|
|
$
|
103,278
|
|
|
$
|
106,112
|
|
Commercial real estate
|
|
287
|
|
|
15
|
|
|
3,139
|
|
|
—
|
|
|
3,441
|
|
|
202,255
|
|
|
205,696
|
|
|||||||
Real estate construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,566
|
|
|
13,566
|
|
|||||||
Land development
|
|
—
|
|
|
—
|
|
|
2,834
|
|
|
—
|
|
|
2,834
|
|
|
8,656
|
|
|
11,490
|
|
|||||||
Residential mortgage
|
|
123
|
|
|
—
|
|
|
122
|
|
|
—
|
|
|
245
|
|
|
13,720
|
|
|
13,965
|
|
|||||||
Consumer installment
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
1,948
|
|
|
1,958
|
|
|||||||
Home equity
|
|
205
|
|
|
—
|
|
|
170
|
|
|
—
|
|
|
375
|
|
|
39,433
|
|
|
39,808
|
|
|||||||
Total
|
|
$
|
625
|
|
|
$
|
15
|
|
|
$
|
9,099
|
|
|
$
|
—
|
|
|
$
|
9,739
|
|
|
$
|
382,856
|
|
|
$
|
392,595
|
|
March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Originated Portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
|
$
|
3,655
|
|
|
$
|
1,793
|
|
|
$
|
1,005
|
|
|
$
|
11,443
|
|
|
$
|
17,896
|
|
|
$
|
755,905
|
|
|
$
|
773,801
|
|
Commercial real estate
|
|
4,632
|
|
|
4,436
|
|
|
75
|
|
|
46,870
|
|
|
56,013
|
|
|
794,347
|
|
|
850,360
|
|
|||||||
Real estate construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
61
|
|
|
38,672
|
|
|
38,733
|
|
|||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,748
|
|
|
3,748
|
|
|
27,700
|
|
|
31,448
|
|
|||||||
Residential mortgage
|
|
2,039
|
|
|
1,314
|
|
|
333
|
|
|
12,687
|
|
|
16,373
|
|
|
826,461
|
|
|
842,834
|
|
|||||||
Consumer installment
|
|
2,519
|
|
|
410
|
|
|
—
|
|
|
1,278
|
|
|
4,207
|
|
|
473,681
|
|
|
477,888
|
|
|||||||
Home equity
|
|
1,514
|
|
|
305
|
|
|
1,233
|
|
|
3,066
|
|
|
6,118
|
|
|
349,097
|
|
|
355,215
|
|
|||||||
Total
|
|
$
|
14,359
|
|
|
$
|
8,258
|
|
|
$
|
2,646
|
|
|
$
|
79,153
|
|
|
$
|
104,416
|
|
|
$
|
3,265,863
|
|
|
$
|
3,370,279
|
|
Acquired Portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
|
$
|
—
|
|
|
$
|
150
|
|
|
$
|
7,147
|
|
|
$
|
—
|
|
|
$
|
7,297
|
|
|
$
|
122,837
|
|
|
$
|
130,134
|
|
Commercial real estate
|
|
—
|
|
|
—
|
|
|
3,474
|
|
|
—
|
|
|
3,474
|
|
|
241,959
|
|
|
245,433
|
|
|||||||
Real estate construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,173
|
|
|
18,173
|
|
|||||||
Land development
|
|
—
|
|
|
—
|
|
|
3,362
|
|
|
—
|
|
|
3,362
|
|
|
9,441
|
|
|
12,803
|
|
|||||||
Residential mortgage
|
|
85
|
|
|
—
|
|
|
1,008
|
|
|
—
|
|
|
1,093
|
|
|
17,374
|
|
|
18,467
|
|
|||||||
Consumer installment
|
|
17
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
2,714
|
|
|
2,734
|
|
|||||||
Home equity
|
|
98
|
|
|
43
|
|
|
504
|
|
|
—
|
|
|
645
|
|
|
44,430
|
|
|
45,075
|
|
|||||||
Total
|
|
$
|
200
|
|
|
$
|
196
|
|
|
$
|
15,495
|
|
|
$
|
—
|
|
|
$
|
15,891
|
|
|
$
|
456,928
|
|
|
$
|
472,819
|
|
|
|
Performing
|
|
Nonperforming
|
|
Total
|
||||||
|
|
(In thousands)
|
||||||||||
March 31, 2013
|
|
|
|
|
|
|
||||||
Commercial loan portfolio
|
|
$
|
17,755
|
|
|
$
|
14,587
|
|
|
$
|
32,342
|
|
Consumer loan portfolio
|
|
12,968
|
|
|
4,328
|
|
|
17,296
|
|
|||
Total
|
|
$
|
30,723
|
|
|
$
|
18,915
|
|
|
$
|
49,638
|
|
December 31, 2012
|
|
|
|
|
|
|
||||||
Commercial loan portfolio
|
|
$
|
15,789
|
|
|
$
|
13,876
|
|
|
$
|
29,665
|
|
Consumer loan portfolio
|
|
15,580
|
|
|
3,321
|
|
|
18,901
|
|
|||
Total
|
|
$
|
31,369
|
|
|
$
|
17,197
|
|
|
$
|
48,566
|
|
March 31, 2012
|
|
|
|
|
|
|
||||||
Commercial loan portfolio
|
|
$
|
8,521
|
|
|
$
|
11,258
|
|
|
$
|
19,779
|
|
Consumer loan portfolio
|
|
18,656
|
|
|
5,491
|
|
|
24,147
|
|
|||
Total
|
|
$
|
27,177
|
|
|
$
|
16,749
|
|
|
$
|
43,926
|
|
|
|
Number
of Loans
|
|
Pre-
Modification
Recorded
Investment
|
|
Post-
Modification
Recorded
Investment
|
|||||
|
|
(Dollars in thousands)
|
|||||||||
Three Months Ended March 31, 2013
|
|
|
|
|
|
|
|||||
Commercial loan portfolio:
|
|
|
|
|
|
|
|||||
Commercial
|
|
3
|
|
|
$
|
458
|
|
|
$
|
458
|
|
Commercial real estate
|
|
3
|
|
|
2,174
|
|
|
2,174
|
|
||
Land development
|
|
1
|
|
|
262
|
|
|
262
|
|
||
Subtotal – commercial loan portfolio
|
|
7
|
|
|
2,894
|
|
|
2,894
|
|
||
Consumer loan portfolio (residential mortgage)
|
|
16
|
|
|
1,249
|
|
|
1,214
|
|
||
Total
|
|
23
|
|
|
$
|
4,143
|
|
|
$
|
4,108
|
|
Three Months Ended March 31, 2012
|
|
|
|
|
|
|
|||||
Commercial loan portfolio:
|
|
|
|
|
|
|
|||||
Commercial
|
|
5
|
|
|
$
|
1,262
|
|
|
$
|
1,262
|
|
Commercial real estate
|
|
5
|
|
|
1,529
|
|
|
1,529
|
|
||
Land development
|
|
1
|
|
|
1,638
|
|
|
1,638
|
|
||
Subtotal – commercial loan portfolio
|
|
11
|
|
|
4,429
|
|
|
4,429
|
|
||
Consumer loan portfolio (residential mortgage)
|
|
20
|
|
|
3,154
|
|
|
3,061
|
|
||
Total
|
|
31
|
|
|
$
|
7,583
|
|
|
$
|
7,490
|
|
|
|
Number of
Loans
|
|
Principal Balance at End of Period
|
|||
|
|
(Dollars in thousands)
|
|||||
Three Months Ended March 31, 2013
|
|
|
|
|
|||
Commercial loan portfolio (commercial)
|
|
1
|
|
|
$
|
434
|
|
Consumer loan portfolio (residential mortgage)
|
|
3
|
|
|
369
|
|
|
Total
|
|
4
|
|
|
$
|
803
|
|
Three Months Ended March 31, 2012
|
|
|
|
|
|||
Commercial loan portfolio:
|
|
|
|
|
|||
Commercial
|
|
1
|
|
|
$
|
60
|
|
Commercial real estate
|
|
1
|
|
|
768
|
|
|
Subtotal – commercial loan portfolio
|
|
2
|
|
|
828
|
|
|
Consumer loan portfolio (residential mortgage)
|
|
2
|
|
|
214
|
|
|
Total
|
|
4
|
|
|
$
|
1,042
|
|
|
|
Commercial
Loan
Portfolio
|
|
Consumer
Loan
Portfolio
|
|
Unallocated
|
|
Total
|
||||||||
|
|
(In thousands)
|
||||||||||||||
Changes in allowance for loan losses for the three months ended March 31, 2013:
|
||||||||||||||||
Beginning balance
|
|
$
|
49,975
|
|
|
$
|
29,333
|
|
|
$
|
5,183
|
|
|
$
|
84,491
|
|
Provision for loan losses
|
|
2,437
|
|
|
871
|
|
|
(308
|
)
|
|
3,000
|
|
||||
Charge-offs
|
|
(3,516
|
)
|
|
(1,958
|
)
|
|
—
|
|
|
(5,474
|
)
|
||||
Recoveries
|
|
211
|
|
|
606
|
|
|
—
|
|
|
817
|
|
||||
Ending balance
|
|
$
|
49,107
|
|
|
$
|
28,852
|
|
|
$
|
4,875
|
|
|
$
|
82,834
|
|
Allowance for loan losses balance at March 31, 2013 attributable to:
|
||||||||||||||||
Loans individually evaluated for impairment
|
|
$
|
5,522
|
|
|
$
|
662
|
|
|
$
|
—
|
|
|
$
|
6,184
|
|
Loans collectively evaluated for impairment
|
|
43,585
|
|
|
27,690
|
|
|
4,875
|
|
|
76,150
|
|
||||
Loans acquired with deteriorated credit quality
|
|
—
|
|
|
500
|
|
|
—
|
|
|
500
|
|
||||
Total
|
|
$
|
49,107
|
|
|
$
|
28,852
|
|
|
$
|
4,875
|
|
|
$
|
82,834
|
|
Recorded investment (loan balance) at March 31, 2013:
|
||||||||||||||||
Loans individually evaluated for impairment
|
|
$
|
84,650
|
|
|
$
|
17,296
|
|
|
$
|
—
|
|
|
$
|
101,946
|
|
Loans collectively evaluated for impairment
|
|
1,892,452
|
|
|
1,816,591
|
|
|
—
|
|
|
3,709,043
|
|
||||
Loans acquired with deteriorated credit quality
|
|
321,403
|
|
|
52,869
|
|
|
—
|
|
|
374,272
|
|
||||
Total
|
|
$
|
2,298,505
|
|
|
$
|
1,886,756
|
|
|
$
|
—
|
|
|
$
|
4,185,261
|
|
|
|
Commercial
Loan
Portfolio
|
|
Consumer
Loan
Portfolio
|
|
Unallocated
|
|
Total
|
||||||||
|
|
(In thousands)
|
||||||||||||||
Allowance for loan losses balance at December 31, 2012 attributable to:
|
|
|
|
|
||||||||||||
Loans individually evaluated for impairment
|
|
$
|
7,450
|
|
|
$
|
658
|
|
|
$
|
—
|
|
|
$
|
8,108
|
|
Loans collectively evaluated for impairment
|
|
42,525
|
|
|
28,175
|
|
|
5,183
|
|
|
75,883
|
|
||||
Loans acquired with deteriorated credit quality
|
|
—
|
|
|
500
|
|
|
—
|
|
|
500
|
|
||||
Total
|
|
$
|
49,975
|
|
|
$
|
29,333
|
|
|
$
|
5,183
|
|
|
$
|
84,491
|
|
Recorded investment (loan balance) at December 31, 2012:
|
|
|
|
|
|
|
|
|
||||||||
Loans individually evaluated for impairment
|
|
$
|
87,327
|
|
|
$
|
18,901
|
|
|
$
|
—
|
|
|
$
|
106,228
|
|
Loans collectively evaluated for impairment
|
|
1,840,629
|
|
|
1,828,283
|
|
|
—
|
|
|
3,668,912
|
|
||||
Loans acquired with deteriorated credit quality
|
|
336,864
|
|
|
55,731
|
|
|
—
|
|
|
392,595
|
|
||||
Total
|
|
$
|
2,264,820
|
|
|
$
|
1,902,915
|
|
|
$
|
—
|
|
|
$
|
4,167,735
|
|
|
|
Commercial
Loan
Portfolio
|
|
Consumer
Loan
Portfolio
|
|
Unallocated
|
|
Total
|
||||||||
|
|
(In thousands)
|
||||||||||||||
Changes in allowance for loan losses for the three months ended March 31, 2012:
|
||||||||||||||||
Beginning balance
|
|
$
|
55,645
|
|
|
$
|
29,166
|
|
|
$
|
3,522
|
|
|
$
|
88,333
|
|
Provision for loan losses
|
|
2,037
|
|
|
1,343
|
|
|
1,620
|
|
|
5,000
|
|
||||
Charge-offs
|
|
(3,379
|
)
|
|
(3,168
|
)
|
|
—
|
|
|
(6,547
|
)
|
||||
Recoveries
|
|
614
|
|
|
385
|
|
|
—
|
|
|
999
|
|
||||
Ending balance
|
|
$
|
54,917
|
|
|
$
|
27,726
|
|
|
$
|
5,142
|
|
|
$
|
87,785
|
|
Allowance for loan losses balance at March 31, 2012 attributable to:
|
||||||||||||||||
Loans individually evaluated for impairment
|
|
$
|
9,177
|
|
|
$
|
710
|
|
|
$
|
—
|
|
|
$
|
9,887
|
|
Loans collectively evaluated for impairment
|
|
44,140
|
|
|
26,416
|
|
|
5,142
|
|
|
75,698
|
|
||||
Loans acquired with deteriorated credit quality
|
|
1,600
|
|
|
600
|
|
|
—
|
|
|
2,200
|
|
||||
Total
|
|
$
|
54,917
|
|
|
$
|
27,726
|
|
|
$
|
5,142
|
|
|
$
|
87,785
|
|
Recorded investment (loan balance) at March 31, 2012:
|
|
|
|
|
|
|
|
|
||||||||
Loans individually evaluated for impairment
|
|
$
|
81,901
|
|
|
$
|
24,147
|
|
|
$
|
—
|
|
|
$
|
106,048
|
|
Loans collectively evaluated for impairment
|
|
1,612,441
|
|
|
1,651,790
|
|
|
—
|
|
|
3,264,231
|
|
||||
Loans acquired with deteriorated credit quality
|
|
406,543
|
|
|
66,276
|
|
|
—
|
|
|
472,819
|
|
||||
Total
|
|
$
|
2,100,885
|
|
|
$
|
1,742,213
|
|
|
$
|
—
|
|
|
$
|
3,843,098
|
|
|
|
March 31,
2013 |
|
December 31,
2012 |
|
March 31,
2012 |
||||||
|
|
(In thousands)
|
||||||||||
Goodwill
|
|
$
|
120,164
|
|
|
$
|
120,164
|
|
|
$
|
113,414
|
|
Other intangible assets:
|
|
|
|
|
|
|
||||||
Core deposit intangible assets
|
|
$
|
11,417
|
|
|
$
|
11,910
|
|
|
$
|
7,512
|
|
Mortgage servicing rights
|
|
3,485
|
|
|
3,478
|
|
|
3,427
|
|
|||
Total other intangible assets
|
|
$
|
14,902
|
|
|
$
|
15,388
|
|
|
$
|
10,939
|
|
|
|
March 31,
2013 |
|
December 31,
2012 |
|
March 31,
2012 |
||||||
|
|
(In thousands)
|
||||||||||
Gross original amount
|
|
$
|
18,659
|
|
|
$
|
18,659
|
|
|
$
|
26,468
|
|
Accumulated amortization
|
|
7,242
|
|
|
6,749
|
|
|
18,956
|
|
|||
Carrying amount
|
|
$
|
11,417
|
|
|
$
|
11,910
|
|
|
$
|
7,512
|
|
Amortization expense for the three months ended March 31
|
|
$
|
493
|
|
|
|
|
$
|
367
|
|
|
|
March 31,
2013 |
|
December 31,
2012 |
|
March 31,
2012 |
||||||
|
|
(In thousands)
|
||||||||||
Net carrying value of MSRs
|
|
$
|
3,485
|
|
|
$
|
3,478
|
|
|
$
|
3,427
|
|
Fair value of MSRs
|
|
$
|
5,326
|
|
|
$
|
4,716
|
|
|
$
|
5,158
|
|
Loans serviced for others that have servicing rights capitalized
|
|
$
|
907,823
|
|
|
$
|
906,314
|
|
|
$
|
904,191
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Balance at beginning of period
|
|
$
|
3,478
|
|
|
$
|
3,593
|
|
Additions
|
|
515
|
|
|
534
|
|
||
Amortization
|
|
(508
|
)
|
|
(700
|
)
|
||
Balance at end of period
|
|
$
|
3,485
|
|
|
$
|
3,427
|
|
|
|
March 31,
2013 |
|
December 31,
2012 |
|
March 31,
2012 |
||||||
|
|
(In thousands)
|
||||||||||
Net unrealized gains on investment securities – available-for-sale, net of related tax expense of $2,232 at March 31, 2013, $2,301 at December 31, 2012 and $2,265 at March 31, 2012
|
|
$
|
4,143
|
|
|
$
|
4,274
|
|
|
$
|
4,208
|
|
Pension and other postretirement benefits adjustment, net of related tax benefit of $18,726 at March 31, 2013, $19,058 at December 31, 2012 and $15,249 at March 31, 2012
|
|
(34,777
|
)
|
|
(35,393
|
)
|
|
(28,319
|
)
|
|||
Accumulated other comprehensive loss
|
|
$
|
(30,634
|
)
|
|
$
|
(31,119
|
)
|
|
$
|
(24,111
|
)
|
|
|
Actual
|
|
Minimum Required for Capital Adequacy Purposes
|
|
Required to be Well Capitalized Under Prompt Corrective Action Regulations
|
|||||||||||||||
|
|
Capital
Amount
|
|
Ratio
|
|
Capital
Amount
|
|
Ratio
|
|
Capital
Amount
|
|
Ratio
|
|||||||||
|
|
(Dollars in thousands)
|
|||||||||||||||||||
March 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporation
|
|
$
|
561,092
|
|
|
13.3
|
%
|
|
$
|
337,508
|
|
|
8.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Chemical Bank
|
|
545,361
|
|
|
13.0
|
|
|
336,576
|
|
|
8.0
|
|
|
$
|
420,720
|
|
|
10.0
|
%
|
||
Tier 1 Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporation
|
|
507,985
|
|
|
12.0
|
|
|
168,754
|
|
|
4.0
|
|
|
N/A
|
|
|
N/A
|
|
|||
Chemical Bank
|
|
492,398
|
|
|
11.7
|
|
|
168,288
|
|
|
4.0
|
|
|
252,432
|
|
|
6.0
|
|
|||
Leverage Ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporation
|
|
507,985
|
|
|
8.8
|
|
|
230,992
|
|
|
4.0
|
|
|
N/A
|
|
|
N/A
|
|
|||
Chemical Bank
|
|
492,398
|
|
|
8.5
|
|
|
230,544
|
|
|
4.0
|
|
|
288,179
|
|
|
5.0
|
|
|||
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporation
|
|
$
|
552,171
|
|
|
13.2
|
%
|
|
$
|
334,140
|
|
|
8.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Chemical Bank
|
|
536,223
|
|
|
12.9
|
|
|
333,195
|
|
|
8.0
|
|
|
$
|
416,494
|
|
|
10.0
|
%
|
||
Tier 1 Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporation
|
|
499,563
|
|
|
12.0
|
|
|
167,070
|
|
|
4.0
|
|
|
N/A
|
|
|
N/A
|
|
|||
Chemical Bank
|
|
483,761
|
|
|
11.6
|
|
|
166,598
|
|
|
4.0
|
|
|
249,896
|
|
|
6.0
|
|
|||
Leverage Ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporation
|
|
499,563
|
|
|
9.2
|
|
|
217,145
|
|
|
4.0
|
|
|
N/A
|
|
|
N/A
|
|
|||
Chemical Bank
|
|
483,761
|
|
|
8.9
|
|
|
216,784
|
|
|
4.0
|
|
|
270,980
|
|
|
5.0
|
|
|||
March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporation
|
|
$
|
528,910
|
|
|
13.7
|
%
|
|
$
|
309,209
|
|
|
8.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Chemical Bank
|
|
522,775
|
|
|
13.5
|
|
|
309,024
|
|
|
8.0
|
|
|
$
|
386,280
|
|
|
10.0
|
%
|
||
Tier 1 Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporation
|
|
480,109
|
|
|
12.4
|
|
|
154,605
|
|
|
4.0
|
|
|
N/A
|
|
|
N/A
|
|
|||
Chemical Bank
|
|
474,002
|
|
|
12.3
|
|
|
154,512
|
|
|
4.0
|
|
|
231,768
|
|
|
6.0
|
|
|||
Leverage Ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporation
|
|
481,109
|
|
|
9.1
|
|
|
210,126
|
|
|
4.0
|
|
|
N/A
|
|
|
N/A
|
|
|||
Chemical Bank
|
|
474,002
|
|
|
9.0
|
|
|
210,055
|
|
|
4.0
|
|
|
262,569
|
|
|
5.0
|
|
Level 1
|
Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 valuations for the Corporation would include U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. Valuations are obtained from a third party pricing service for these investment securities.
|
Level 2
|
Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 valuations for the Corporation include government sponsored agency securities, including securities issued by the Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Federal Farm Credit Bank, Student Loan Marketing Corporation and the Small Business Administration, securities issued by certain state and political subdivisions, residential mortgage-backed securities, collateralized mortgage obligations, corporate bonds, preferred stock and trust preferred securities. Valuations are obtained from a third-party pricing service for these investment securities.
|
Level 3
|
Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models, yield curves and similar techniques. The determination of fair value requires management judgment or estimation and generally is corroborated by external data, which includes third-party pricing services. Level 3 valuations for the Corporation include securities issued by certain state and political subdivisions, impaired loans, goodwill, core deposit intangible assets, MSRs and other real estate and repossessed assets.
|
|
|
Fair Value Measurements – Recurring Basis
|
||||||||||||||
|
|
Quoted Prices
In Active
Markets for
Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
|
|
(In thousands)
|
||||||||||||||
March 31, 2013
|
|
|
|
|
|
|
|
|
||||||||
Investment securities – available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
Government sponsored agencies
|
|
$
|
—
|
|
|
$
|
95,379
|
|
|
$
|
—
|
|
|
$
|
95,379
|
|
State and political subdivisions
|
|
—
|
|
|
49,249
|
|
|
—
|
|
|
49,249
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
239,192
|
|
|
—
|
|
|
239,192
|
|
||||
Collateralized mortgage obligations
|
|
—
|
|
|
247,668
|
|
|
—
|
|
|
247,668
|
|
||||
Corporate bonds
|
|
—
|
|
|
65,548
|
|
|
—
|
|
|
65,548
|
|
||||
Preferred stock
|
|
—
|
|
|
1,831
|
|
|
—
|
|
|
1,831
|
|
||||
Total investment securities – available-for-sale
|
|
—
|
|
|
698,867
|
|
|
—
|
|
|
698,867
|
|
||||
Loans held-for-sale
|
|
—
|
|
|
14,850
|
|
|
—
|
|
|
14,850
|
|
||||
Total assets measured at fair value on a recurring basis
|
|
$
|
—
|
|
|
$
|
713,717
|
|
|
$
|
—
|
|
|
$
|
713,717
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
||||||||
Investment securities – available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
Government sponsored agencies
|
|
$
|
—
|
|
|
$
|
97,557
|
|
|
$
|
—
|
|
|
$
|
97,557
|
|
State and political subdivisions
|
|
—
|
|
|
49,965
|
|
|
—
|
|
|
49,965
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
99,411
|
|
|
—
|
|
|
99,411
|
|
||||
Collateralized mortgage obligations
|
|
—
|
|
|
263,592
|
|
|
—
|
|
|
263,592
|
|
||||
Corporate bonds
|
|
—
|
|
|
69,795
|
|
|
—
|
|
|
69,795
|
|
||||
Preferred stock
|
|
—
|
|
|
1,734
|
|
|
—
|
|
|
1,734
|
|
||||
Total investment securities – available-for-sale
|
|
—
|
|
|
582,054
|
|
|
—
|
|
|
582,054
|
|
||||
Loans held-for-sale
|
|
—
|
|
|
17,665
|
|
|
—
|
|
|
17,665
|
|
||||
Total assets measured at fair value on a recurring basis
|
|
$
|
—
|
|
|
$
|
599,719
|
|
|
$
|
—
|
|
|
$
|
599,719
|
|
March 31, 2012
|
|
|
|
|
|
|
|
|
||||||||
Investment securities – available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
Government sponsored agencies
|
|
$
|
—
|
|
|
$
|
77,526
|
|
|
$
|
—
|
|
|
$
|
77,526
|
|
State and political subdivisions
|
|
—
|
|
|
44,056
|
|
|
—
|
|
|
44,056
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
110,905
|
|
|
—
|
|
|
110,905
|
|
||||
Collateralized mortgage obligations
|
|
—
|
|
|
355,952
|
|
|
—
|
|
|
355,952
|
|
||||
Corporate bonds
|
|
—
|
|
|
86,066
|
|
|
—
|
|
|
86,066
|
|
||||
Preferred stock
|
|
—
|
|
|
1,502
|
|
|
—
|
|
|
1,502
|
|
||||
Total investment securities – available-for-sale
|
|
$
|
—
|
|
|
$
|
676,007
|
|
|
$
|
—
|
|
|
$
|
676,007
|
|
|
|
Fair Value Measurements – Nonrecurring Basis
|
||||||||||||||
|
|
Quoted Prices
In Active
Markets for
Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
|
|
(In thousands)
|
||||||||||||||
March 31, 2013
|
|
|
|
|
|
|
|
|
||||||||
Impaired originated loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47,073
|
|
|
$
|
47,073
|
|
Other real estate/repossessed assets
|
|
—
|
|
|
—
|
|
|
18,194
|
|
|
18,194
|
|
||||
Total
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
65,267
|
|
|
$
|
65,267
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
||||||||
Impaired originated loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51,694
|
|
|
$
|
51,694
|
|
Other real estate/repossessed assets
|
|
—
|
|
|
—
|
|
|
18,469
|
|
|
18,469
|
|
||||
Total
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70,163
|
|
|
$
|
70,163
|
|
March 31, 2012
|
|
|
|
|
|
|
|
|
||||||||
Impaired originated loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
58,202
|
|
|
$
|
58,202
|
|
Other real estate/repossessed assets
|
|
—
|
|
|
—
|
|
|
25,944
|
|
|
25,944
|
|
||||
Total
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
84,146
|
|
|
$
|
84,146
|
|
|
|
Level in Fair Value Measurement
Hierarchy
|
|
March 31, 2013
|
|
December 31, 2012
|
|
March 31, 2012
|
||||||||||||||||||
|
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
|||||||||||||
|
|
|
|
(In thousands)
|
||||||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
|
Level 1
|
|
$
|
578,726
|
|
|
$
|
578,726
|
|
|
$
|
656,135
|
|
|
$
|
656,135
|
|
|
$
|
473,678
|
|
|
$
|
473,678
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available-for-sale
|
|
Level 2
|
|
698,867
|
|
|
698,867
|
|
|
582,054
|
|
|
582,054
|
|
|
676,007
|
|
|
676,007
|
|
||||||
Available-for-sale
|
|
NA
|
|
4,755
|
|
|
4,755
|
|
|
4,755
|
|
|
4,755
|
|
|
—
|
|
|
—
|
|
||||||
Held-to-maturity
|
|
Level 2
|
|
257,749
|
|
|
261,405
|
|
|
229,977
|
|
|
229,922
|
|
|
183,297
|
|
|
184,372
|
|
||||||
Held-to-maturity
|
|
Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,000
|
|
|
8,000
|
|
||||||
Nonmarketable equity securities
|
|
NA
|
|
25,572
|
|
|
25,572
|
|
|
25,572
|
|
|
25,572
|
|
|
25,572
|
|
|
25,572
|
|
||||||
Loans held-for-sale
|
|
Level 2
|
|
14,850
|
|
|
14,850
|
|
|
17,665
|
|
|
17,665
|
|
|
25,080
|
|
|
25,109
|
|
||||||
Net loans
|
|
Level 3
|
|
4,102,427
|
|
|
4,123,585
|
|
|
4,083,244
|
|
|
4,093,880
|
|
|
3,755,313
|
|
|
3,781,585
|
|
||||||
Interest receivable
|
|
Level 2
|
|
16,960
|
|
|
16,960
|
|
|
14,933
|
|
|
14,933
|
|
|
16,804
|
|
|
16,804
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits without defined maturities
|
|
Level 2
|
|
$
|
3,574,832
|
|
|
$
|
3,574,832
|
|
|
$
|
3,448,886
|
|
|
$
|
3,448,886
|
|
|
$
|
2,981,632
|
|
|
$
|
2,981,632
|
|
Time deposits
|
|
Level 3
|
|
1,432,526
|
|
|
1,448,634
|
|
|
1,472,557
|
|
|
1,489,072
|
|
|
1,479,752
|
|
|
1,500,227
|
|
||||||
Interest payable
|
|
Level 2
|
|
1,338
|
|
|
1,338
|
|
|
1,501
|
|
|
1,501
|
|
|
2,039
|
|
|
2,039
|
|
||||||
Short-term borrowings
|
|
Level 2
|
|
347,484
|
|
|
347,484
|
|
|
310,463
|
|
|
310,463
|
|
|
335,082
|
|
|
335,082
|
|
||||||
FHLB advances
|
|
Level 2
|
|
—
|
|
|
—
|
|
|
34,289
|
|
|
34,835
|
|
|
42,120
|
|
|
43,186
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands, except per share data)
|
||||||
Numerator for both basic and diluted earnings per common share, net income
|
|
$
|
13,234
|
|
|
$
|
12,374
|
|
Denominator for basic earnings per common share, weighted average common shares outstanding
|
|
27,519
|
|
|
27,478
|
|
||
Weighted average common stock equivalents
|
|
122
|
|
|
61
|
|
||
Denominator for diluted earnings per common share
|
|
27,641
|
|
|
27,539
|
|
||
Basic earnings per common share
|
|
$
|
0.48
|
|
|
$
|
0.45
|
|
Diluted earnings per common share
|
|
0.48
|
|
|
0.45
|
|
|
|
Non-Vested
Stock Options Outstanding
|
|
Stock Options Outstanding
|
||||||||||||||
|
|
Number of
Options
|
|
Weighted-
Average
Exercise
Price
Per Share
|
|
Weighted-
Average
Grant Date
Fair Value
Per Share
|
|
Number of
Options
|
|
Weighted-
Average
Exercise
Price
Per Share
|
||||||||
Outstanding at January 1, 2013
|
|
314,765
|
|
|
$
|
23.03
|
|
|
$
|
6.92
|
|
|
997,222
|
|
|
$
|
27.24
|
|
Granted
|
|
244,219
|
|
|
25.14
|
|
|
7.40
|
|
|
244,219
|
|
|
25.14
|
|
|||
Exercised
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,216
|
)
|
|
21.70
|
|
|||
Vested
|
|
(95,575
|
)
|
|
23.93
|
|
|
7.19
|
|
|
—
|
|
|
—
|
|
|||
Forfeited/expired
|
|
(12,311
|
)
|
|
23.43
|
|
|
7.00
|
|
|
(12,311
|
)
|
|
23.43
|
|
|||
Outstanding at March 31, 2013
|
|
451,098
|
|
|
$
|
23.97
|
|
|
$
|
7.12
|
|
|
1,223,914
|
|
|
$
|
26.89
|
|
Exercisable/vested at March 31, 2013
|
|
|
|
|
|
|
|
772,816
|
|
|
$
|
28.59
|
|
Expected dividend yield
|
3.50
|
%
|
|
Risk-free interest rate
|
1.34
|
%
|
|
Expected stock price volatility
|
42.1
|
%
|
|
Expected life of options – in years
|
7.0
|
||
Weighted average per share fair value
|
$
|
7.40
|
|
|
|
Number of
Units
|
|
Weighted-
Average
Grant Date
Fair Value
Per Unit
|
|||
Outstanding at January 1, 2013
|
|
156,510
|
|
|
$
|
20.83
|
|
Granted
|
|
71,429
|
|
|
23.41
|
|
|
Converted into shares of common stock
|
|
(35,303
|
)
|
|
22.48
|
|
|
Forfeited/expired
|
|
(1,754
|
)
|
|
25.97
|
|
|
Outstanding at March 31, 2013
|
|
190,882
|
|
|
$
|
21.44
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Defined Benefit Pension Plans
|
|
|
|
|
||||
Service cost
|
|
$
|
325
|
|
|
$
|
303
|
|
Interest cost
|
|
1,167
|
|
|
1,215
|
|
||
Expected return on plan assets
|
|
(1,948
|
)
|
|
(1,731
|
)
|
||
Amortization of unrecognized net loss
|
|
946
|
|
|
614
|
|
||
Net periodic benefit cost
|
|
$
|
490
|
|
|
$
|
401
|
|
Postretirement Benefit Plan
|
|
|
|
|
||||
Interest cost
|
|
$
|
75
|
|
|
$
|
37
|
|
Amortization of prior service credit
|
|
—
|
|
|
(75
|
)
|
||
Amortization of unrecognized net gain
|
|
—
|
|
|
(7
|
)
|
||
Net periodic benefit cost (income)
|
|
$
|
75
|
|
|
$
|
(45
|
)
|
|
|
March 31,
2013
|
|
December 31,
2012
|
|
March 31,
2012
|
||||||
|
|
(In thousands)
|
||||||||||
Commercial loan portfolio:
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
1,038,115
|
|
|
$
|
1,002,722
|
|
|
$
|
903,935
|
|
Commercial real estate
|
|
1,162,383
|
|
|
1,161,861
|
|
|
1,095,793
|
|
|||
Real estate construction
|
|
65,367
|
|
|
62,689
|
|
|
56,906
|
|
|||
Land development
|
|
32,640
|
|
|
37,548
|
|
|
44,251
|
|
|||
Subtotal
|
|
2,298,505
|
|
|
2,264,820
|
|
|
2,100,885
|
|
|||
Consumer loan portfolio:
|
|
|
|
|
|
|
||||||
Residential mortgage
|
|
872,454
|
|
|
883,835
|
|
|
861,301
|
|
|||
Consumer installment
|
|
540,216
|
|
|
546,036
|
|
|
480,622
|
|
|||
Home equity
|
|
474,086
|
|
|
473,044
|
|
|
400,290
|
|
|||
Subtotal
|
|
1,886,756
|
|
|
1,902,915
|
|
|
1,742,213
|
|
|||
Total loans
|
|
$
|
4,185,261
|
|
|
$
|
4,167,735
|
|
|
$
|
3,843,098
|
|
|
|
March 31,
2013
|
|
December 31,
2012
|
|
March 31,
2012
|
||||||
|
|
(Dollars in thousands)
|
||||||||||
Nonaccrual loans:
|
|
|
|
|
|
|
||||||
Commercial
|
|
$
|
12,186
|
|
|
$
|
14,601
|
|
|
$
|
11,443
|
|
Commercial real estate
|
|
35,849
|
|
|
37,660
|
|
|
46,870
|
|
|||
Real estate construction
|
|
168
|
|
|
1,217
|
|
|
61
|
|
|||
Land development
|
|
4,105
|
|
|
4,184
|
|
|
3,748
|
|
|||
Residential mortgage
|
|
10,407
|
|
|
10,164
|
|
|
12,687
|
|
|||
Consumer installment
|
|
699
|
|
|
739
|
|
|
1,278
|
|
|||
Home equity
|
|
2,837
|
|
|
2,733
|
|
|
3,066
|
|
|||
Total nonaccrual loans
|
|
66,251
|
|
|
71,298
|
|
|
79,153
|
|
|||
Accruing loans contractually past due 90 days or more as to interest or principal payments:
|
|
|
|
|
|
|
||||||
Commercial
|
|
4
|
|
|
—
|
|
|
1,005
|
|
|||
Commercial real estate
|
|
177
|
|
|
87
|
|
|
75
|
|
|||
Real estate construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential mortgage
|
|
196
|
|
|
1,503
|
|
|
333
|
|
|||
Consumer installment
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Home equity
|
|
874
|
|
|
769
|
|
|
1,233
|
|
|||
Total accruing loans contractually past due 90 days or more as to interest or principal payments
|
|
1,251
|
|
|
2,359
|
|
|
2,646
|
|
|||
Nonperforming TDRs:
|
|
|
|
|
|
|
||||||
Commercial loan portfolio
|
|
14,587
|
|
|
13,876
|
|
|
11,258
|
|
|||
Consumer loan portfolio
|
|
4,328
|
|
|
3,321
|
|
|
5,491
|
|
|||
Total nonperforming TDRs
|
|
18,915
|
|
|
17,197
|
|
|
16,749
|
|
|||
Total nonperforming loans
|
|
86,417
|
|
|
90,854
|
|
|
98,548
|
|
|||
Other real estate and repossessed assets
(1)
|
|
18,194
|
|
|
18,469
|
|
|
25,944
|
|
|||
Total nonperforming assets
|
|
$
|
104,611
|
|
|
$
|
109,323
|
|
|
$
|
124,492
|
|
Nonperforming loans as a percent of total loans
|
|
2.06
|
%
|
|
2.18
|
%
|
|
2.56
|
%
|
|||
Nonperforming assets as a percent of total assets
|
|
1.75
|
%
|
|
1.85
|
%
|
|
2.28
|
%
|
(1)
|
Includes property acquired through foreclosure and by acceptance of a deed in lieu of foreclosure and other property held-for-sale.
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Balance at beginning of period
|
|
$
|
71,298
|
|
|
$
|
78,394
|
|
Additions during period
|
|
9,024
|
|
|
15,854
|
|
||
Principal balances charged off
|
|
(4,545
|
)
|
|
(4,991
|
)
|
||
Transfers to other real estate/repossessed assets
|
|
(1,565
|
)
|
|
(2,833
|
)
|
||
Returned to accrual status
|
|
(2,869
|
)
|
|
(3,992
|
)
|
||
Payments received
|
|
(5,092
|
)
|
|
(3,279
|
)
|
||
Balance at end of period
|
|
$
|
66,251
|
|
|
$
|
79,153
|
|
|
|
March 31, 2013
|
|
December 31, 2012
|
|
March 31, 2012
|
|||||||||||||||
|
|
Amount
|
|
Percent
of Total
|
|
Amount
|
|
Percent
of Total
|
|
Amount
|
|
Percent
of Total
|
|||||||||
|
|
(Dollars in thousands)
|
|||||||||||||||||||
Commercial loan portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
|
$
|
16,453
|
|
|
19.0
|
%
|
|
$
|
19,763
|
|
|
21.8
|
%
|
|
$
|
16,664
|
|
|
16.9
|
%
|
Commercial real estate
|
|
41,725
|
|
|
48.3
|
|
|
42,472
|
|
|
46.7
|
|
|
52,349
|
|
|
53.1
|
|
|||
Real estate construction
|
|
372
|
|
|
0.4
|
|
|
1,217
|
|
|
1.3
|
|
|
61
|
|
|
0.1
|
|
|||
Land development
|
|
8,526
|
|
|
9.9
|
|
|
8,173
|
|
|
9.0
|
|
|
5,386
|
|
|
5.5
|
|
|||
Subtotal-commercial loan portfolio
|
|
67,076
|
|
|
77.6
|
|
|
71,625
|
|
|
78.8
|
|
|
74,460
|
|
|
75.6
|
|
|||
Consumer loan portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential mortgage
|
|
14,931
|
|
|
17.3
|
|
|
14,988
|
|
|
16.5
|
|
|
18,511
|
|
|
18.8
|
|
|||
Consumer installment
|
|
699
|
|
|
0.8
|
|
|
739
|
|
|
0.8
|
|
|
1,278
|
|
|
1.3
|
|
|||
Home equity
|
|
3,711
|
|
|
4.3
|
|
|
3,502
|
|
|
3.9
|
|
|
4,299
|
|
|
4.3
|
|
|||
Subtotal-consumer loan portfolio
|
|
19,341
|
|
|
22.4
|
|
|
19,229
|
|
|
21.2
|
|
|
24,088
|
|
|
24.4
|
|
|||
Total nonperforming loans
|
|
$
|
86,417
|
|
|
100.0
|
%
|
|
$
|
90,854
|
|
|
100.0
|
%
|
|
$
|
98,548
|
|
|
100.0
|
%
|
|
|
March 31, 2013
|
|
December 31, 2012
|
|
March 31, 2012
|
|||||||||||||||
|
|
Number of
Borrowers
|
|
Amount
|
|
Number of
Borrowers
|
|
Amount
|
|
Number of
Borrowers
|
|
Amount
|
|||||||||
|
|
(Dollars in thousands)
|
|||||||||||||||||||
$5,000,000 or more
|
|
1
|
|
|
$
|
6,062
|
|
|
1
|
|
|
$
|
6,157
|
|
|
1
|
|
|
$
|
6,777
|
|
$2,500,000 – $4,999,999
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
5,140
|
|
|||
$1,000,000 – $2,499,999
|
|
14
|
|
|
21,895
|
|
|
16
|
|
|
27,408
|
|
|
13
|
|
|
21,104
|
|
|||
$500,000 – $999,999
|
|
25
|
|
|
17,092
|
|
|
21
|
|
|
14,868
|
|
|
21
|
|
|
15,051
|
|
|||
$250,000 – $499,999
|
|
24
|
|
|
7,903
|
|
|
28
|
|
|
9,521
|
|
|
38
|
|
|
13,011
|
|
|||
Under $250,000
|
|
175
|
|
|
14,124
|
|
|
173
|
|
|
13,671
|
|
|
158
|
|
|
13,377
|
|
|||
Total
|
|
239
|
|
|
$
|
67,076
|
|
|
239
|
|
|
$
|
71,625
|
|
|
233
|
|
|
$
|
74,460
|
|
|
|
Performing
Status
|
|
Nonperforming Status
|
|
Total
|
||||||||||||||
|
|
Current
|
|
Past Due
31-90 Days
|
|
Subtotal
|
|
|||||||||||||
|
|
(In thousands)
|
||||||||||||||||||
March 31, 2013
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loan portfolio
|
|
$
|
17,755
|
|
|
$
|
12,330
|
|
|
$
|
2,257
|
|
|
$
|
14,587
|
|
|
$
|
32,342
|
|
Consumer loan portfolio
|
|
12,968
|
|
|
3,457
|
|
|
871
|
|
|
4,328
|
|
|
17,296
|
|
|||||
Total TDRs
|
|
$
|
30,723
|
|
|
$
|
15,787
|
|
|
$
|
3,128
|
|
|
$
|
18,915
|
|
|
$
|
49,638
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loan portfolio
|
|
$
|
15,789
|
|
|
$
|
13,361
|
|
|
$
|
515
|
|
|
$
|
13,876
|
|
|
$
|
29,665
|
|
Consumer loan portfolio
|
|
15,580
|
|
|
2,688
|
|
|
633
|
|
|
3,321
|
|
|
18,901
|
|
|||||
Total TDRs
|
|
$
|
31,369
|
|
|
$
|
16,049
|
|
|
$
|
1,148
|
|
|
$
|
17,197
|
|
|
$
|
48,566
|
|
March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loan portfolio
|
|
$
|
8,521
|
|
|
$
|
11,054
|
|
|
$
|
204
|
|
|
$
|
11,258
|
|
|
$
|
19,779
|
|
Consumer loan portfolio
|
|
18,656
|
|
|
4,891
|
|
|
600
|
|
|
5,491
|
|
|
24,147
|
|
|||||
Total TDRs
|
|
$
|
27,177
|
|
|
$
|
15,945
|
|
|
$
|
804
|
|
|
$
|
16,749
|
|
|
$
|
43,926
|
|
|
|
Three Months Ended March 31, 2013
|
||||||||||
|
|
Performing
|
|
Nonperforming
|
|
Total
|
||||||
|
|
(In thousands)
|
||||||||||
Balance at January 1, 2013
|
|
$
|
15,789
|
|
|
$
|
13,876
|
|
|
$
|
29,665
|
|
Additions for modifications
|
|
—
|
|
|
2,894
|
|
|
2,894
|
|
|||
Transfers to performing TDR status
|
|
2,818
|
|
|
(2,818
|
)
|
|
—
|
|
|||
Transfers to nonperforming TDR status
|
|
(482
|
)
|
|
482
|
|
|
—
|
|
|||
Transfers from nonaccrual status
|
|
—
|
|
|
1,336
|
|
|
1,336
|
|
|||
Transfers to nonaccrual status
|
|
—
|
|
|
(1,039
|
)
|
|
(1,039
|
)
|
|||
Principal payments and pay-offs
|
|
(370
|
)
|
|
(144
|
)
|
|
(514
|
)
|
|||
Balance at March 31, 2013
|
|
$
|
17,755
|
|
|
$
|
14,587
|
|
|
$
|
32,342
|
|
|
|
March 31, 2013
|
|
December 31, 2012
|
|
March 31, 2012
|
||||||
|
|
(In thousands)
|
||||||||||
Composition of ORE:
|
|
|
|
|
|
|
||||||
Vacant land
|
|
$
|
3,386
|
|
|
$
|
3,407
|
|
|
$
|
7,036
|
|
Commercial real estate properties
|
|
8,860
|
|
|
8,359
|
|
|
10,453
|
|
|||
Residential real estate properties
|
|
5,588
|
|
|
5,764
|
|
|
6,598
|
|
|||
Residential land development properties
|
|
—
|
|
|
527
|
|
|
1,397
|
|
|||
Total ORE
|
|
$
|
17,834
|
|
|
$
|
18,057
|
|
|
$
|
25,484
|
|
|
|
Three Months Ended
|
||||||
|
|
March 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Balance at beginning of period
|
|
$
|
18,057
|
|
|
$
|
24,888
|
|
Additions
|
|
1,723
|
|
|
3,646
|
|
||
Write-downs to fair value
|
|
(251
|
)
|
|
(206
|
)
|
||
Dispositions
|
|
(1,695
|
)
|
|
(2,844
|
)
|
||
Balance at end of period
|
|
$
|
17,834
|
|
|
$
|
25,484
|
|
|
|
March 31, 2013
|
|
December 31, 2012
|
|
March 31, 2012
|
||||||
|
|
(In thousands)
|
||||||||||
Originated impaired loans:
|
|
|
|
|
|
|
||||||
Commercial loan portfolio:
|
|
|
|
|
|
|
||||||
Nonaccrual loans
|
|
$
|
52,308
|
|
|
$
|
57,662
|
|
|
$
|
62,122
|
|
Nonperforming TDRs
|
|
14,587
|
|
|
13,876
|
|
|
11,258
|
|
|||
Performing TDRs
|
|
17,755
|
|
|
15,789
|
|
|
8,521
|
|
|||
Subtotal
|
|
84,650
|
|
|
87,327
|
|
|
81,901
|
|
|||
Consumer loan portfolio:
|
|
|
|
|
|
|
||||||
Nonaccrual loans
|
|
13,943
|
|
|
13,636
|
|
|
17,031
|
|
|||
Nonperforming TDRs
|
|
4,328
|
|
|
3,321
|
|
|
5,491
|
|
|||
Performing TDRs
|
|
12,968
|
|
|
15,580
|
|
|
18,656
|
|
|||
Subtotal
|
|
31,239
|
|
|
32,537
|
|
|
41,178
|
|
|||
Total originated impaired loans
|
|
115,889
|
|
|
119,864
|
|
|
123,079
|
|
|||
Acquired loans not performing in accordance with original contractual terms
|
|
8,609
|
|
|
9,099
|
|
|
15,495
|
|
|||
Total impaired loans
|
|
$
|
124,498
|
|
|
$
|
128,963
|
|
|
$
|
138,574
|
|
|
|
Amount
|
|
Valuation
Allowance
|
|
Confirmed
Losses
|
|
Cumulative
Inherent
Loss
Percentage
|
|||||||
|
|
(Dollars in thousands)
|
|||||||||||||
March 31, 2013
|
|
|
|
|
|
|
|
|
|||||||
Impaired loans – originated commercial loan portfolio:
|
|
|
|
|
|
|
|
|
|||||||
With valuation allowance and no charge-offs
|
|
$
|
9,964
|
|
|
$
|
3,111
|
|
|
$
|
—
|
|
|
31
|
%
|
With valuation allowance and charge-offs
|
|
7,259
|
|
|
2,411
|
|
|
753
|
|
|
39
|
|
|||
With charge-offs and no valuation allowance
|
|
29,850
|
|
|
—
|
|
|
19,158
|
|
|
39
|
|
|||
Without valuation allowance or charge-offs
|
|
37,577
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
84,650
|
|
|
$
|
5,522
|
|
|
$
|
19,911
|
|
|
24
|
%
|
|
Impaired acquired loans
|
|
8,609
|
|
|
|
|
|
|
|
||||||
Total impaired loans to commercial borrowers
|
|
$
|
93,259
|
|
|
|
|
|
|
|
|
|
Amount
|
|
Valuation
Allowance
|
|
Confirmed
Losses
|
|
Cumulative
Inherent
Loss
Percentage
|
|||||||
|
|
(Dollars in thousands)
|
|||||||||||||
December 31, 2012
|
|
|
|
|
|
|
|
|
|||||||
Impaired loans – originated commercial loan portfolio:
|
|
|
|
|
|
|
|
|
|||||||
With valuation allowance and no charge-offs
|
|
$
|
16,054
|
|
|
$
|
4,624
|
|
|
$
|
—
|
|
|
29
|
%
|
With valuation allowance and charge-offs
|
|
8,006
|
|
|
2,826
|
|
|
790
|
|
|
41
|
|
|||
With charge-offs and no valuation allowance
|
|
27,634
|
|
|
—
|
|
|
16,525
|
|
|
37
|
|
|||
Without valuation allowance or charge-offs
|
|
35,633
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
87,327
|
|
|
$
|
7,450
|
|
|
$
|
17,315
|
|
|
24
|
%
|
|
Impaired acquired loans
|
|
9,099
|
|
|
|
|
|
|
|
||||||
Total impaired loans to commercial borrowers
|
|
$
|
96,426
|
|
|
|
|
|
|
|
|||||
March 31, 2012
|
|
|
|
|
|
|
|
|
|||||||
Impaired loans – originated commercial loan portfolio:
|
|
|
|
|
|
|
|
|
|||||||
With valuation allowance and no charge-offs
|
|
$
|
18,689
|
|
|
$
|
5,437
|
|
|
$
|
—
|
|
|
29
|
%
|
With valuation allowance and charge-offs
|
|
12,222
|
|
|
3,740
|
|
|
1,683
|
|
|
39
|
|
|||
With charge-offs and no valuation allowance
|
|
27,291
|
|
|
—
|
|
|
18,168
|
|
|
40
|
|
|||
Without valuation allowance or charge-offs
|
|
23,699
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
81,901
|
|
|
$
|
9,177
|
|
|
$
|
19,851
|
|
|
29
|
%
|
|
Impaired acquired loans
|
|
15,495
|
|
|
|
|
|
|
|
||||||
Total impaired loans to commercial borrowers
|
|
$
|
97,396
|
|
|
|
|
|
|
|
|
|
March 31, 2013
|
|
December 31, 2012
|
|
March 31, 2012
|
||||||
|
|
(Dollars in thousands)
|
||||||||||
Allowance for loan losses – originated loans
|
|
$
|
82,334
|
|
|
$
|
83,991
|
|
|
$
|
85,585
|
|
Allowance for loan losses – acquired loans
|
|
500
|
|
|
500
|
|
|
2,200
|
|
|||
Nonperforming loans
|
|
86,417
|
|
|
90,854
|
|
|
98,548
|
|
|||
Allowance for originated loans as a percent of:
|
|
|
|
|
|
|
||||||
Total originated loans
|
|
2.16
|
%
|
|
2.22
|
%
|
|
2.54
|
%
|
|||
Nonperforming loans
|
|
95
|
%
|
|
92
|
%
|
|
87
|
%
|
|||
Nonperforming loans, less impaired originated loans for which the expected loss has been charged-off
|
|
146
|
%
|
|
132
|
%
|
|
120
|
%
|
Maturity Schedule
|
|
Amount
|
|
Weighted
Average
Interest Rate
|
|||
|
|
(Dollars in thousands)
|
|||||
2013 maturities:
|
|
|
|
|
|||
Second quarter
|
|
$
|
371,035
|
|
|
0.67
|
%
|
Third quarter
|
|
211,298
|
|
|
0.97
|
|
|
Fourth quarter
|
|
173,947
|
|
|
1.00
|
|
|
Total 2013 maturities
|
|
756,280
|
|
|
0.83
|
|
|
2014 maturities
|
|
343,636
|
|
|
1.35
|
|
|
2015 maturities
|
|
196,258
|
|
|
2.12
|
|
|
2016 maturities
|
|
63,833
|
|
|
1.67
|
|
|
2017 maturities and beyond
|
|
72,519
|
|
|
1.39
|
|
|
Total time deposits
|
|
$
|
1,432,526
|
|
|
1.20
|
%
|
|
|
Less than
1 year
|
|
1-3
years
|
|
3-5
years
|
|
More
than
5 years
|
|
Total
|
||||||||||
|
|
(In thousands)
|
||||||||||||||||||
Unused commitments to extend credit:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loans
|
|
$
|
425,980
|
|
|
$
|
76,546
|
|
|
$
|
16,873
|
|
|
$
|
28,367
|
|
|
$
|
547,766
|
|
Home equity lines of credit
|
|
92,893
|
|
|
50,499
|
|
|
52,979
|
|
|
25,633
|
|
|
222,004
|
|
|||||
Residential mortgage construction loans
|
|
15,884
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,884
|
|
|||||
Total unused commitments to extend credit
|
|
534,757
|
|
|
127,045
|
|
|
69,852
|
|
|
54,000
|
|
|
785,654
|
|
|||||
Undisbursed loan commitments
|
|
245,375
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
245,375
|
|
|||||
Standby letters of credit
|
|
27,052
|
|
|
19,649
|
|
|
344
|
|
|
—
|
|
|
47,045
|
|
|||||
Total credit-related commitments
|
|
$
|
807,184
|
|
|
$
|
146,694
|
|
|
$
|
70,196
|
|
|
$
|
54,000
|
|
|
$
|
1,078,074
|
|
|
|
Leverage
|
|
Tier 1
Risk-Based
Capital
|
|
Total
Risk-Based
Capital
|
|||
Actual Capital Ratios:
|
|
|
|
|
|
|
|||
Chemical Financial Corporation
|
|
8.8
|
%
|
|
12.0
|
%
|
|
13.3
|
%
|
Chemical Bank
|
|
8.5
|
|
|
11.7
|
|
|
13.0
|
|
Minimum required for capital adequacy purposes
|
|
4.0
|
|
|
4.0
|
|
|
8.0
|
|
Minimum required for “well-capitalized” capital adequacy purposes
|
|
5.0
|
|
|
6.0
|
|
|
10.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2013
|
||||||||||||||||||||||
|
|
Compared to December 31, 2012
|
|
Compared to March 31, 2012
|
||||||||||||||||||||
|
|
Increase (Decrease)
Due to Changes in
|
|
|
|
Increase (Decrease)
Due to Changes in
|
|
|
||||||||||||||||
|
|
Average
Volume**
|
|
Average
Yield/Rate**
|
|
Combined Increase/
(Decrease)
|
|
Average
Volume**
|
|
Average
Yield/Rate**
|
|
Combined Increase/
(Decrease)
|
||||||||||||
Changes in Interest Income on Interest-Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans
|
|
$
|
437
|
|
|
$
|
(1,279
|
)
|
|
$
|
(842
|
)
|
|
$
|
3,755
|
|
|
$
|
(4,131
|
)
|
|
$
|
(376
|
)
|
Taxable investment securities/other assets
|
|
125
|
|
|
(219
|
)
|
|
(94
|
)
|
|
13
|
|
|
(119
|
)
|
|
(106
|
)
|
||||||
Tax-exempt investment securities
|
|
182
|
|
|
(119
|
)
|
|
63
|
|
|
381
|
|
|
(254
|
)
|
|
127
|
|
||||||
Interest-bearing deposits with the FRB
|
|
123
|
|
|
—
|
|
|
123
|
|
|
93
|
|
|
—
|
|
|
93
|
|
||||||
Total change in interest income on interest-earning assets
|
|
867
|
|
|
(1,617
|
)
|
|
(750
|
)
|
|
4,242
|
|
|
(4,504
|
)
|
|
(262
|
)
|
||||||
Changes in Interest Expense on Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing demand deposits
|
|
$
|
40
|
|
|
$
|
(13
|
)
|
|
$
|
27
|
|
|
$
|
45
|
|
|
$
|
(65
|
)
|
|
$
|
(20
|
)
|
Savings deposits
|
|
27
|
|
|
(12
|
)
|
|
15
|
|
|
38
|
|
|
(136
|
)
|
|
(98
|
)
|
||||||
Time deposits
|
|
101
|
|
|
(360
|
)
|
|
(259
|
)
|
|
(144
|
)
|
|
(1,274
|
)
|
|
(1,418
|
)
|
||||||
Short-term borrowings
|
|
5
|
|
|
—
|
|
|
5
|
|
|
1
|
|
|
9
|
|
|
10
|
|
||||||
FHLB advances
|
|
(175
|
)
|
|
(18
|
)
|
|
(193
|
)
|
|
(211
|
)
|
|
(5
|
)
|
|
(216
|
)
|
||||||
Total change in interest expense on interest-bearing liabilities
|
|
(2
|
)
|
|
(403
|
)
|
|
(405
|
)
|
|
(271
|
)
|
|
(1,471
|
)
|
|
(1,742
|
)
|
||||||
Total Change in Net Interest Income (FTE)
|
|
$
|
869
|
|
|
$
|
(1,214
|
)
|
|
$
|
(345
|
)
|
|
$
|
4,513
|
|
|
$
|
(3,033
|
)
|
|
$
|
1,480
|
|
*
|
Taxable equivalent basis using a federal income tax rate of 35%.
|
**
|
The change in interest income and interest expense due to both volume and rate has been allocated to the volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||||||||
|
|
March 31, 2013
|
|
December 31, 2012
|
|
March 31, 2012
|
||||||
|
|
(In thousands)
|
||||||||||
Service charges and fees on deposit accounts
|
|
$
|
5,195
|
|
|
$
|
5,035
|
|
|
$
|
4,505
|
|
Wealth management revenue
|
|
3,445
|
|
|
2,928
|
|
|
2,921
|
|
|||
Electronic banking fees
|
|
3,397
|
|
|
2,590
|
|
|
2,457
|
|
|||
Mortgage banking revenue
|
|
2,012
|
|
|
2,538
|
|
|
1,185
|
|
|||
Gain on sale of investment securities
|
|
847
|
|
|
34
|
|
|
—
|
|
|||
Other fees for customer services
|
|
781
|
|
|
654
|
|
|
533
|
|
|||
Insurance commissions
|
|
473
|
|
|
479
|
|
|
375
|
|
|||
Gain on sale of merchant card services
|
|
—
|
|
|
—
|
|
|
1,280
|
|
|||
Other
|
|
89
|
|
|
418
|
|
|
69
|
|
|||
Total noninterest income
|
|
$
|
16,239
|
|
|
$
|
14,676
|
|
|
$
|
13,325
|
|
|
|
Three Months Ended
|
||||||||||
|
|
March 31, 2013
|
|
December 31, 2012
|
|
March 31, 2012
|
||||||
|
|
(In thousands)
|
||||||||||
Salaries and wages
|
|
$
|
18,444
|
|
|
$
|
18,378
|
|
|
$
|
16,448
|
|
Employee benefits
|
|
4,925
|
|
|
4,159
|
|
|
4,121
|
|
|||
Occupancy
|
|
3,663
|
|
|
3,149
|
|
|
3,154
|
|
|||
Equipment and software
|
|
3,450
|
|
|
3,461
|
|
|
3,118
|
|
|||
Outside processing and service fees
|
|
2,615
|
|
|
3,744
|
|
|
2,195
|
|
|||
FDIC insurance premiums
|
|
1,131
|
|
|
1,099
|
|
|
1,110
|
|
|||
Credit-related expenses
|
|
991
|
|
|
1,227
|
|
|
1,367
|
|
|||
Professional fees
|
|
976
|
|
|
1,390
|
|
|
953
|
|
|||
Postage and courier
|
|
953
|
|
|
919
|
|
|
899
|
|
|||
Advertising and marketing
|
|
771
|
|
|
723
|
|
|
522
|
|
|||
FHLB prepayment fees
|
|
753
|
|
|
—
|
|
|
—
|
|
|||
Training, travel and other employee expenses
|
|
620
|
|
|
771
|
|
|
530
|
|
|||
Telephone
|
|
550
|
|
|
450
|
|
|
410
|
|
|||
Donations
|
|
510
|
|
|
842
|
|
|
469
|
|
|||
Intangible asset amortization
|
|
493
|
|
|
467
|
|
|
367
|
|
|||
Supplies
|
|
427
|
|
|
454
|
|
|
344
|
|
|||
Other
|
|
685
|
|
|
775
|
|
|
964
|
|
|||
Total Operating Expenses
|
|
$
|
41,957
|
|
|
$
|
42,008
|
|
|
$
|
36,971
|
|
|
|
Gradual Change
|
|
Immediate
Change
|
|||||||||||||
Twelve month interest rate change projection (in basis points)
|
|
-200
|
|
-100
|
|
0
|
|
+100
|
|
+200
|
|
+400
|
|||||
Percent change in net interest income vs. constant rates
|
|
(4.2
|
)%
|
|
(2.4
|
)%
|
|
—
|
|
0.7
|
%
|
|
0.7
|
%
|
|
4.7
|
%
|
|
|
Issuer Purchases of Equity Securities
|
|||||||||||
Period Beginning on First Day of Month Ended
|
|
Total Number of Shares Purchased
(1)
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced
Plans or Programs
|
|
Maximum Number of Shares that May Yet Be Purchased Under
Plans or Programs
|
|
||||
January 31, 2013
|
|
439
|
|
|
$
|
24.60
|
|
|
—
|
|
|
500,000
|
|
February 28, 2013
|
|
14,822
|
|
|
23.45
|
|
|
—
|
|
|
500,000
|
|
|
March 31, 2013
|
|
4,170
|
|
|
26.29
|
|
|
—
|
|
|
500,000
|
|
|
Total
|
|
19,431
|
|
|
$
|
25.37
|
|
|
—
|
|
|
|
|
(1)
|
Includes shares delivered or attested in satisfaction of the exercise price and/or tax withholding obligations by employees who received shares of the Corporation's common stock during the
three months ended March 31, 2013
upon conversion of vested restricted stock performance units and by holders of employee stock options who exercised options during the
three months ended March 31, 2013
. The Corporation's share-based compensation plans permit employees to use stock to satisfy such obligations based on the market value of the stock on the date of conversion or date of exercise, as applicable.
|
|
|
CHEMICAL FINANCIAL CORPORATION
|
|
|
|
|
|
Date:
|
April 30, 2013
|
By:
|
/s/ David B. Ramaker
|
|
|
|
David B. Ramaker
|
|
|
|
Chairman of the Board, Chief Executive Officer and President
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
Date:
|
April 30, 2013
|
By:
|
/s/ Lori A. Gwizdala
|
|
|
|
Lori A. Gwizdala
|
|
|
|
Executive Vice President, Chief Financial Officer and Treasurer
|
|
|
|
(Principal Financial and Accounting Officer)
|
Exhibit
Number
|
|
Document
|
|
|
|
||
3.1
|
|
|
Restated Articles of Incorporation. Previously filed as Exhibit 3.1 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, filed with the SEC on May 5, 2011. Here incorporated by reference.
|
|
|
||
3.2
|
|
|
Bylaws. Previously filed as Exhibit 3.2 to the registrant’s Current Report on Form 8-K dated January 20, 2009, filed with the SEC on January 23, 2009. Here incorporated by reference.
|
|
|
||
4.1
|
|
|
Restated Articles of Incorporation. Exhibit 3.1 is here incorporated by reference.
|
|
|
||
4.2
|
|
|
Bylaws. Exhibit 3.2 is here incorporated by reference.
|
|
|
||
10.1
|
|
|
Chemical Financial Corporation Deferred Compensation Plan.
|
|
|
|
|
31.1
|
|
|
Certification of Chief Executive Officer.
|
|
|
||
31.2
|
|
|
Certification of Chief Financial Officer.
|
|
|
||
32.1
|
|
|
Certification pursuant to 18 U.S.C. §1350.
|
|
|
||
101.1
|
|
|
Interactive Data File.*
|
|
|
|
|
*
|
|
|
As provided in Rule 406T of Regulation S-T, this information shall not be deemed “Filed” for purposes of Section 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934 or otherwise subject to liability under those sections.
|
By
|
/s/ David B. Ramaker
|
|
Its Chairman, President & CEO
|
(Select only one box in each column.)
|
||||||
Specified Time:
_________
(mm/dd/yyyy)
|
Change in Control
|
Death
|
Disability
|
Unforeseeable Emergency
|
Distribution Method
|
|
o
|
o
|
o
|
o
|
o
|
Lump Sum
|
|
o
|
o
|
o
|
o
|
NA
|
5 Annual Installments
|
|
o
|
o
|
o
|
o
|
NA
|
10 Annual Installments
|
|
By
|
/s/ David B. Ramaker
|
|
Its Chairman, President & CEO
|
By
|
/s/ Bruce M. Groom
|
|
Its EVP & Senior Trust Officer
|
By
|
/s/ David B. Ramaker
|
Title
|
Chairman, CEO & President
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended
March 31, 2013
of Chemical 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 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
April 30, 2013
|
|
|
|
/s/ David B. Ramaker
|
|
|
David B. Ramaker
Chairman of the Board,
Chief Executive Officer and President
Chemical Financial Corporation
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended
March 31, 2013
of Chemical 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 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
April 30, 2013
|
|
|
|
/s/ Lori A. Gwizdala
|
|
|
Lori A. Gwizdala
Executive Vice President,
Chief Financial Officer and Treasurer
Chemical Financial Corporation
|
Dated:
|
April 30, 2013
|
/s/ David B. Ramaker
|
|
|
David B. Ramaker
Chairman of the Board, Chief Executive Officer and President
|
|
|
|
Dated:
|
April 30, 2013
|
/s/ Lori A. Gwizdala
|
|
|
Lori A. Gwizdala
Executive Vice President, Chief Financial Officer and Treasurer
|