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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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Common Stock, $1 Par Value Per Share
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The NASDAQ Stock Market
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(Title of Class)
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(Name of each exchange on which registered)
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Large accelerated filer
¨
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Accelerated filer
þ
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Non-accelerated filer
¨
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Smaller reporting company
¨
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(Do not check if a smaller reporting company)
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Page
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Business
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Risk Factors
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Unresolved Staff Comments
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Properties
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Legal Proceedings
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Mine Safety Disclosures
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Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
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Selected Financial Data
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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Quantitative and Qualitative Disclosures About Market Risk
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Financial Statements and Supplementary Data
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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Controls and Procedures
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Other Information
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Directors, Executive Officers and Corporate Governance
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Executive Compensation
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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Certain Relationships and Related Transactions and Director Independence
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Principal Accountant Fees and Services
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Exhibits and Financial Statement Schedules
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December 31,
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2013
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2012
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2011
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Amount
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Percent of Total
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Amount
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Percent of Total
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Amount
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Percent of Total
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(Dollars in millions)
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Composition of Loans:
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Commercial
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$
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1,176.3
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25
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%
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$
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1,002.7
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24
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%
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$
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895.2
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23
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%
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Commercial real estate
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1,232.7
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27
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1,161.9
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28
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1,072.0
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28
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Real estate construction
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89.8
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2
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62.7
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1
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73.4
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2
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Land development
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20.1
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—
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37.5
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1
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44.8
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1
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Residential mortgage
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960.4
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21
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883.8
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21
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861.7
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23
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Consumer installment
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644.8
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14
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546.0
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13
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484.0
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13
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Home equity
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523.6
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11
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473.1
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12
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400.2
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10
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Total composition of loans
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$
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4,647.7
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100
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%
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$
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4,167.7
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100
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%
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$
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3,831.3
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100
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%
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•
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Variations in quarterly or annual results of operations
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•
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Changes in dividends paid per share
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•
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Deterioration in asset quality, including declining real estate values
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•
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Changes in interest rates
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•
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Significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by, or involving, the Corporation or its competitors
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•
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Failure to integrate acquisitions or realize anticipated benefits from acquisitions
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•
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Regulatory actions, including changes to regulatory capital levels, the components of regulatory capital and how regulatory capital is calculated
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•
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New regulations that limit or significantly change the Corporation's ability to continue to offer existing banking products
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•
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Volatility of stock market prices and volumes
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•
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Issuance of additional shares of common stock or other debt or equity securities of the Corporation
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•
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Changes in market valuations of similar companies
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•
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Uncertainties and fluctuations in the financial markets
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•
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Changes in securities analysts' estimates of financial performance or recommendations
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•
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New litigation or contingencies or changes in existing litigation or contingencies
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•
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New technology used, or services offered, by competitors
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•
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Breaches in information security systems of the Corporation and/or its customers and competitors
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•
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Changes in accounting policies or procedures required by standard setting or other regulatory agencies
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•
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New developments in the financial services industry
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•
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News reports relating to trends, concerns and other issues in the financial services industry
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•
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Perceptions in the marketplace regarding the financial services industry, the Corporation and/or its competitors
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•
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Rumors or erroneous information
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•
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Geopolitical conditions such as acts or threats of terrorism or military conflicts
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•
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Disruptions in the credit and financial markets, either nationally or globally, including the impact of a downgrade of U.S. government obligations by one of the credit agencies and the adverse effects of the ongoing sovereign debt crisis in Europe
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The ability to develop, maintain and build long-term customer relationships based on top quality service, high ethical standards and safe, sound assets
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•
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The ability to expand the Corporation's market position
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The ability to keep up-to-date with technological advancements in both delivering new products and maintaining existing products, while continuing to control operating costs
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The scope, relevance and pricing of products and services offered to meet customer needs and demands
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The rate at which the Corporation introduces new products and services relative to its competitors
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Customer satisfaction with the Corporation's level of service
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Industry and general economic trends
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•
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The recording of assets and liabilities of the target company at fair value may materially dilute shareholder value at the transaction date and could have a material adverse effect on the Corporation's financial condition and results of operations
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The time and costs associated with identifying and evaluating potential acquisitions and merger targets
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Potential exposure to unknown or contingent liabilities of the target company
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The estimates and judgments used to evaluate credit, operations, management and market risks with respect to the target institution may not be accurate
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Exposure to potential asset quality issues of the target company
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The time and costs of evaluating new markets, hiring experienced local management and opening new offices, and the time lags between these activities and the generation of sufficient assets and deposits to support the costs of the expansion
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The diversion of the Corporation's management's attention to the negotiation of a transaction, and the integration of the operations and personnel of the combining businesses
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•
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The introduction of new products and services into the Corporation's business
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Potential disruption to the Corporation's business
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•
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The incurrence and possible impairment of goodwill associated with an acquisition and possible adverse short-term effects on the Corporation's results of operations
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The possible loss of key employees and customers of the target company
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Difficulty in estimating the value of the target company
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Potential changes in banking or tax laws or regulations that may affect the target company
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Difficulty or unanticipated expense associated with converting the communication and information systems of the target company to those of the Corporation
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2013
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2012
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High
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Low
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High
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Low
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First quarter
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$
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26.66
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$
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22.80
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$
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24.32
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$
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21.04
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Second quarter
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26.82
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23.18
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23.77
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19.25
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Third quarter
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31.53
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26.20
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24.96
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20.82
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Fourth quarter
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32.64
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26.85
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25.00
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20.60
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Years Ended December 31,
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2013
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2012
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2011
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2010
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2009
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||||||||||
First quarter
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$
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0.210
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$
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0.200
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$
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0.200
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$
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0.200
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$
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0.295
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Second quarter
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0.210
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0.200
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0.200
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0.200
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0.295
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Third quarter
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0.220
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0.210
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0.200
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0.200
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0.295
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|||||
Fourth quarter
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0.230
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0.210
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0.200
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0.200
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0.295
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|||||
Total
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$
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0.870
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$
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0.820
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$
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0.800
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$
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0.800
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$
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1.180
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December 31,
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2008
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2009
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2010
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2011
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2012
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2013
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||||||||||||
Chemical Financial Corporation
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$
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100.00
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$
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89.75
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$
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87.53
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$
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87.85
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$
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101.64
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$
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139.92
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KBW Regional Banking Total Return Index
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100.00
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77.87
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93.75
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88.93
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100.86
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148.09
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||||||
S&P 500 Stock Index
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100.00
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126.46
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145.51
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148.59
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172.37
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228.19
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Issuer Purchases of Equity Securities
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||||||||||
Period
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Total Number of Shares Purchased
(1)
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Average Price Paid Per Share
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Total Number of Shares Purchased as Part of Publicly Announced
Plans or Programs
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Maximum Number of Shares that May Yet Be Purchased Under
Plans or Programs
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||||
October 1, 2013 to October 31, 2013
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—
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$
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—
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—
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500,000
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November 1, 2013 to November 30, 2013
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211
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31.63
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—
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500,000
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December 1, 2013 to December 31, 2013
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761
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31.75
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—
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500,000
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Total
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972
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$
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31.72
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—
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(1)
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Represents 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 in
2013
upon conversion of vested restricted stock performance and service-based units and by holders of employee stock options who exercised options in
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 vesting or date of exercise, as applicable.
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Years Ended December 31,
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||||||||||||||||||
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2013
(1)(2)
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2012
(1)(2)
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2011
(1)
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2010
(1)
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2009
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||||||||||
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(In thousands, except per share data)
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||||||||||||||||||
Earnings Summary
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Net interest income
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$
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196,647
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$
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187,545
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$
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183,853
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$
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171,120
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$
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147,444
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Provision for loan losses
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11,000
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18,500
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26,000
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45,600
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59,000
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|||||
Noninterest income
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60,409
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54,684
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46,890
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44,515
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42,817
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|||||
Operating expenses
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164,948
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151,921
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144,493
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138,845
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119,308
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|||||
Net income
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56,808
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51,008
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43,050
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23,090
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10,003
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|||||
Per Common Share Data
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||||||||||
Net income — basic
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$
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2.02
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$
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1.86
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$
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1.57
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$
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0.88
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$
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0.42
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Net income — diluted
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2.00
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1.85
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1.57
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0.88
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0.42
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|||||
Cash dividends declared and paid
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0.87
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0.82
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0.80
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0.80
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1.18
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|||||
Book value at end of period
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23.38
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21.69
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20.82
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20.41
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19.85
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|||||
Market value at end of period
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31.67
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23.76
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21.32
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22.15
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23.58
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|||||
Common shares outstanding at year end
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29,790
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27,499
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27,457
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27,440
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|
|
23,891
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|||||
Balance Sheet Data (Year End)
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||||||||||
Total assets
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$
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6,184,708
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|
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$
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5,917,252
|
|
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$
|
5,339,453
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|
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$
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5,246,209
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|
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$
|
4,250,712
|
|
Total loans
|
|
4,647,621
|
|
|
4,167,735
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3,831,285
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3,681,662
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2,993,160
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|||||
Total deposits
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5,122,385
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|
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4,921,443
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4,366,857
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4,331,765
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3,418,125
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|||||
Short-term borrowings (customer repurchase agreements)
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|
327,428
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|
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310,463
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|
|
303,786
|
|
|
242,703
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|
|
240,568
|
|
|||||
Federal Home Loan Bank advances
|
|
—
|
|
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34,289
|
|
|
43,057
|
|
|
74,130
|
|
|
90,000
|
|
|||||
Total shareholders' equity
|
|
696,500
|
|
|
596,341
|
|
|
571,729
|
|
|
560,078
|
|
|
474,311
|
|
|||||
Balance Sheet Averages
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
$
|
5,964,592
|
|
|
$
|
5,442,079
|
|
|
$
|
5,304,098
|
|
|
$
|
4,913,310
|
|
|
$
|
4,066,229
|
|
Total earning assets
|
|
5,628,969
|
|
|
5,116,127
|
|
|
4,971,704
|
|
|
4,618,012
|
|
|
3,847,006
|
|
|||||
Total loans
|
|
4,355,152
|
|
|
3,948,407
|
|
|
3,730,795
|
|
|
3,438,550
|
|
|
2,980,126
|
|
|||||
Total interest-bearing liabilities
|
|
4,181,921
|
|
|
3,868,108
|
|
|
3,874,811
|
|
|
3,685,186
|
|
|
3,002,050
|
|
|||||
Total deposits
|
|
4,964,082
|
|
|
4,464,062
|
|
|
4,349,873
|
|
|
4,017,230
|
|
|
3,195,411
|
|
|||||
Short-term borrowings (customer repurchase agreements)
|
|
337,649
|
|
|
312,729
|
|
|
287,176
|
|
|
249,731
|
|
|
232,185
|
|
|||||
Federal Home Loan Bank advances
|
|
1,935
|
|
|
39,301
|
|
|
64,257
|
|
|
87,051
|
|
|
116,050
|
|
|||||
Total shareholders' equity
|
|
626,555
|
|
|
587,451
|
|
|
569,521
|
|
|
530,819
|
|
|
483,034
|
|
|||||
Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest margin
|
|
3.59
|
%
|
|
3.76
|
%
|
|
3.80
|
%
|
|
3.80
|
%
|
|
3.91
|
%
|
|||||
Return on average assets
|
|
0.95
|
|
|
0.94
|
|
|
0.81
|
|
|
0.47
|
|
|
0.25
|
|
|||||
Return on average shareholders' equity
|
|
9.1
|
|
|
8.7
|
|
|
7.6
|
|
|
4.3
|
|
|
2.1
|
|
|||||
Efficiency ratio
|
|
63.1
|
|
|
60.8
|
|
|
61.3
|
|
|
61.1
|
|
|
61.4
|
|
|||||
Dividend payout ratio
|
|
43.5
|
|
|
44.3
|
|
|
51.0
|
|
|
90.9
|
|
|
281.0
|
|
|||||
Consolidated Capital Ratios
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average shareholders' equity as a percentage of average assets
|
|
10.5
|
%
|
|
10.8
|
%
|
|
10.7
|
%
|
|
10.8
|
%
|
|
11.9
|
%
|
|||||
Year end ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leverage ratio
|
|
9.9
|
|
|
9.2
|
|
|
9.0
|
|
|
8.4
|
|
|
10.1
|
|
|||||
Tier 1 risk-based capital ratio
|
|
12.7
|
|
|
12.0
|
|
|
12.1
|
|
|
11.6
|
|
|
14.2
|
|
|||||
Total risk-based capital ratio
|
|
14.0
|
|
|
13.2
|
|
|
13.3
|
|
|
12.9
|
|
|
15.5
|
|
|||||
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loan charge-offs
|
|
$
|
16,419
|
|
|
$
|
22,342
|
|
|
$
|
27,197
|
|
|
$
|
36,911
|
|
|
$
|
35,215
|
|
Net loan charge-offs as a percentage of average loans
|
|
0.38
|
%
|
|
0.57
|
%
|
|
0.73
|
%
|
|
1.07
|
%
|
|
1.18
|
%
|
|||||
Year end balances:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses — originated loans
|
|
$
|
78,572
|
|
|
$
|
83,991
|
|
|
$
|
86,733
|
|
|
$
|
89,530
|
|
|
$
|
80,841
|
|
Allowance for loan losses — acquired loans
|
|
500
|
|
|
500
|
|
|
1,600
|
|
|
—
|
|
|
—
|
|
|||||
Total nonperforming loans
|
|
81,984
|
|
|
90,854
|
|
|
106,269
|
|
|
147,729
|
|
|
135,755
|
|
|||||
Total nonperforming assets
|
|
91,760
|
|
|
109,323
|
|
|
131,753
|
|
|
175,239
|
|
|
153,295
|
|
|||||
Year end ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses as a percentage of total originated loans
|
|
1.81
|
%
|
|
2.22
|
%
|
|
2.60
|
%
|
|
2.86
|
%
|
|
2.70
|
%
|
|||||
Allowance for loan losses as a percentage of nonperforming loans
|
|
96
|
|
|
92
|
|
|
82
|
|
|
61
|
|
|
60
|
|
|||||
Nonperforming loans as a percentage of total loans
|
|
1.76
|
|
|
2.18
|
|
|
2.77
|
|
|
4.01
|
|
|
4.54
|
|
|||||
Nonperforming assets as a percentage of total assets
|
|
1.48
|
|
|
1.85
|
|
|
2.47
|
|
|
3.34
|
|
|
3.61
|
|
(1)
|
Includes the impact of the acquisition of O.A.K. Financial Corporation (OAK) on April 30, 2010. See Note 2 to the consolidated financial statements in Item 8 of this report for information on the acquisition of OAK.
|
(2)
|
Includes the impact of the acquisition of 21 branch offices on December 7, 2012. See Note 2 to the consolidated financial statements in Item 8 of this report for information on the branch acquisition transaction.
|
|
December 31,
|
||||
|
2013
|
|
2012
|
|
2011
|
Equity securities
|
6% – 14%
|
|
6% – 10%
|
|
6% – 10%
|
Debt securities
|
3% – 7%
|
|
2% – 5%
|
|
3% – 6%
|
Other
|
2% – 4%
|
|
2% – 3%
|
|
2% – 3%
|
|
Maturity
(2)
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
Within
One Year
|
|
After One
but Within
Five Years
|
|
After Five
but Within
Ten Years
|
|
After
Ten Years
|
|
Total
Carrying
Value
(3)
|
|
Total
Fair
Value
|
|||||||||||||||||||||||||||
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||||||
Available-for-Sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Government sponsored agencies
|
$
|
12,156
|
|
|
0.86
|
%
|
|
$
|
75,027
|
|
|
1.05
|
%
|
|
$
|
6,295
|
|
|
0.75
|
%
|
|
$
|
285
|
|
|
0.88
|
%
|
|
$
|
93,763
|
|
|
1.00
|
%
|
|
$
|
93,763
|
|
State and political subdivisions
|
1,354
|
|
|
4.06
|
|
|
27,827
|
|
|
3.50
|
|
|
14,617
|
|
|
5.65
|
|
|
—
|
|
|
—
|
|
|
43,798
|
|
|
4.24
|
|
|
43,798
|
|
||||||
Residential mortgage-backed securities
|
49,269
|
|
|
1.49
|
|
|
176,681
|
|
|
1.37
|
|
|
70,785
|
|
|
1.39
|
|
|
2,631
|
|
|
2.84
|
|
|
299,366
|
|
|
1.41
|
|
|
299,366
|
|
||||||
Collateralized mortgage obligations
|
60,991
|
|
|
0.85
|
|
|
109,209
|
|
|
0.93
|
|
|
8,945
|
|
|
1.29
|
|
|
1,796
|
|
|
1.66
|
|
|
180,941
|
|
|
0.93
|
|
|
180,941
|
|
||||||
Corporate bonds
|
19,992
|
|
|
2.46
|
|
|
45,283
|
|
|
1.66
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65,275
|
|
|
1.90
|
|
|
65,275
|
|
||||||
Preferred stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,427
|
|
|
6.14
|
|
|
1,427
|
|
|
6.14
|
|
|
1,427
|
|
||||||
Total investment securities available-for-sale
|
143,762
|
|
|
1.33
|
|
|
434,027
|
|
|
1.37
|
|
|
100,642
|
|
|
1.96
|
|
|
6,139
|
|
|
3.17
|
|
|
684,570
|
|
|
1.46
|
|
|
684,570
|
|
||||||
Held-to-Maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
State and political subdivisions
|
39,966
|
|
|
2.41
|
|
|
106,380
|
|
|
3.32
|
|
|
74,759
|
|
|
4.35
|
|
|
42,300
|
|
|
4.89
|
|
|
263,405
|
|
|
3.72
|
|
|
262,021
|
|
||||||
Trust preferred securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,500
|
|
|
3.95
|
|
|
10,500
|
|
|
3.95
|
|
|
6,250
|
|
||||||
Total investment securities held-to-maturity
|
39,966
|
|
|
2.41
|
|
|
106,380
|
|
|
3.32
|
|
|
74,759
|
|
|
4.35
|
|
|
52,800
|
|
|
4.70
|
|
|
273,905
|
|
|
3.73
|
|
|
268,271
|
|
||||||
Total investment securities
|
$
|
183,728
|
|
|
1.56
|
%
|
|
$
|
540,407
|
|
|
1.75
|
%
|
|
$
|
175,401
|
|
|
2.98
|
%
|
|
$
|
58,939
|
|
|
4.54
|
%
|
|
$
|
958,475
|
|
|
2.11
|
%
|
|
$
|
952,841
|
|
(1)
|
Yields are weighted by amount and time to contractual maturity, are on a taxable equivalent basis using a 35% federal income tax rate and are based on carrying value. Yields disclosed are actual yields based on carrying value at December 31, 2013. Approximately 25% of the Corporation's investment securities at December 31, 2013 were variable-rate financial instruments.
|
(2)
|
Residential mortgage-backed securities, collateralized mortgage obligations and certain government sponsored agencies are based on scheduled principal maturity. All other investment securities are based on final contractual maturity.
|
(3)
|
The aggregate book value of securities issued by any single issuer, other than the U.S. government and government sponsored agencies, did not exceed 10% of the Corporation's shareholders' equity.
|
|
December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In thousands)
|
||||||||||
Available-for-Sale:
|
|
|
|
|
|
||||||
Government sponsored agencies
|
$
|
93,763
|
|
|
$
|
97,557
|
|
|
$
|
70,679
|
|
State and political subdivisions
|
43,798
|
|
|
49,965
|
|
|
45,235
|
|
|||
Residential mortgage-backed securities
|
299,366
|
|
|
99,411
|
|
|
120,780
|
|
|||
Collateralized mortgage obligations
|
180,941
|
|
|
263,592
|
|
|
332,400
|
|
|||
Corporate bonds
|
65,275
|
|
|
69,795
|
|
|
96,768
|
|
|||
Preferred stock
|
1,427
|
|
|
6,489
|
|
|
1,414
|
|
|||
Total investment securities available-for-sale
|
684,570
|
|
|
586,809
|
|
|
667,276
|
|
|||
Held-to-Maturity:
|
|
|
|
|
|
||||||
State and political subdivisions
|
263,405
|
|
|
219,477
|
|
|
172,839
|
|
|||
Trust preferred securities
|
10,500
|
|
|
10,500
|
|
|
10,500
|
|
|||
Total investment securities held-to-maturity
|
273,905
|
|
|
229,977
|
|
|
183,339
|
|
|||
Total investment securities
|
$
|
958,475
|
|
|
$
|
816,786
|
|
|
$
|
850,615
|
|
|
December 31,
|
||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Commercial loan portfolio:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
1,176,307
|
|
|
$
|
1,002,722
|
|
|
$
|
895,150
|
|
|
$
|
818,997
|
|
|
$
|
584,286
|
|
Commercial real estate
|
1,232,658
|
|
|
1,161,861
|
|
|
1,071,999
|
|
|
1,076,971
|
|
|
785,675
|
|
|||||
Real estate construction
|
89,795
|
|
|
62,689
|
|
|
73,355
|
|
|
89,234
|
|
|
74,742
|
|
|||||
Land development
|
20,066
|
|
|
37,548
|
|
|
44,821
|
|
|
53,386
|
|
|
46,563
|
|
|||||
Subtotal — commercial loan portfolio
|
2,518,826
|
|
|
2,264,820
|
|
|
2,085,325
|
|
|
2,038,588
|
|
|
1,491,266
|
|
|||||
Consumer loan portfolio:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage
|
960,423
|
|
|
883,835
|
|
|
861,716
|
|
|
798,046
|
|
|
739,380
|
|
|||||
Consumer installment
|
644,769
|
|
|
546,036
|
|
|
484,058
|
|
|
503,132
|
|
|
485,360
|
|
|||||
Home equity
|
523,603
|
|
|
473,044
|
|
|
400,186
|
|
|
341,896
|
|
|
277,154
|
|
|||||
Subtotal — consumer loan portfolio
|
2,128,795
|
|
|
1,902,915
|
|
|
1,745,960
|
|
|
1,643,074
|
|
|
1,501,894
|
|
|||||
Total loans
|
$
|
4,647,621
|
|
|
$
|
4,167,735
|
|
|
$
|
3,831,285
|
|
|
$
|
3,681,662
|
|
|
$
|
2,993,160
|
|
|
|
December 31, 2013
|
||||||||||||||
|
|
Due In
|
||||||||||||||
|
|
1 Year
or Less
|
|
1 to 5
Years
|
|
Over 5
Years
|
|
Total
|
||||||||
|
|
(Dollars in thousands)
|
||||||||||||||
Loan maturities:
|
|
|
|
|
|
|
|
|
||||||||
Commercial
|
|
$
|
504,552
|
|
|
$
|
490,587
|
|
|
$
|
181,168
|
|
|
$
|
1,176,307
|
|
Commercial real estate
|
|
157,139
|
|
|
889,089
|
|
|
186,430
|
|
|
1,232,658
|
|
||||
Real estate construction and land development
|
|
30,287
|
|
|
53,192
|
|
|
26,382
|
|
|
109,861
|
|
||||
Total
|
|
$
|
691,978
|
|
|
$
|
1,432,868
|
|
|
$
|
393,980
|
|
|
$
|
2,518,826
|
|
Percent of total
|
|
27
|
%
|
|
57
|
%
|
|
16
|
%
|
|
100
|
%
|
||||
Interest sensitivity of above loans:
|
|
|
|
|
|
|
|
|
||||||||
Fixed interest rates
|
|
$
|
208,114
|
|
|
$
|
1,030,897
|
|
|
$
|
313,295
|
|
|
$
|
1,552,306
|
|
Variable interest rates
|
|
483,864
|
|
|
401,971
|
|
|
80,685
|
|
|
966,520
|
|
||||
Total
|
|
$
|
691,978
|
|
|
$
|
1,432,868
|
|
|
$
|
393,980
|
|
|
$
|
2,518,826
|
|
|
December 31,
|
||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Nonaccrual loans
(1)
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
18,374
|
|
|
$
|
14,601
|
|
|
$
|
10,726
|
|
|
$
|
16,668
|
|
|
$
|
19,309
|
|
Commercial real estate
|
28,598
|
|
|
37,660
|
|
|
43,381
|
|
|
55,104
|
|
|
49,419
|
|
|||||
Real estate construction
|
371
|
|
|
1,217
|
|
|
1,057
|
|
|
5,454
|
|
|
795
|
|
|||||
Land development
|
2,309
|
|
|
4,184
|
|
|
6,190
|
|
|
8,967
|
|
|
14,389
|
|
|||||
Residential mortgage
|
8,921
|
|
|
10,164
|
|
|
12,573
|
|
|
12,083
|
|
|
15,508
|
|
|||||
Consumer installment
|
676
|
|
|
739
|
|
|
1,707
|
|
|
1,751
|
|
|
4,009
|
|
|||||
Home equity
|
2,648
|
|
|
2,733
|
|
|
2,760
|
|
|
2,935
|
|
|
3,160
|
|
|||||
Total nonaccrual loans
|
61,897
|
|
|
71,298
|
|
|
78,394
|
|
|
102,962
|
|
|
106,589
|
|
|||||
Accruing loans contractually past due 90 days or more as to interest or principal payments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
536
|
|
|
—
|
|
|
1,381
|
|
|
530
|
|
|
1,371
|
|
|||||
Commercial real estate
|
190
|
|
|
87
|
|
|
374
|
|
|
1,350
|
|
|
3,971
|
|
|||||
Real estate construction
|
—
|
|
|
—
|
|
|
287
|
|
|
735
|
|
|
1,990
|
|
|||||
Land development
|
—
|
|
|
—
|
|
|
—
|
|
|
485
|
|
|
—
|
|
|||||
Residential mortgage
|
537
|
|
|
1,503
|
|
|
752
|
|
|
3,253
|
|
|
3,614
|
|
|||||
Consumer installment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity
|
734
|
|
|
769
|
|
|
1,023
|
|
|
1,055
|
|
|
787
|
|
|||||
Total accruing loans contractually past due 90 days or more as to interest or principal payments
|
1,997
|
|
|
2,359
|
|
|
3,817
|
|
|
7,408
|
|
|
11,733
|
|
|||||
Nonperforming TDRs
(2)
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial loan portfolio
|
13,414
|
|
|
13,876
|
|
|
14,675
|
|
|
15,057
|
|
|
—
|
|
|||||
Consumer loan portfolio
|
4,676
|
|
|
3,321
|
|
|
9,383
|
|
|
22,302
|
|
|
17,433
|
|
|||||
Total nonperforming TDRs
|
18,090
|
|
|
17,197
|
|
|
24,058
|
|
|
37,359
|
|
|
17,433
|
|
|||||
Total nonperforming loans
|
81,984
|
|
|
90,854
|
|
|
106,269
|
|
|
147,729
|
|
|
135,755
|
|
|||||
Other real estate and repossessed assets
(3)
|
9,776
|
|
|
18,469
|
|
|
25,484
|
|
|
27,510
|
|
|
17,540
|
|
|||||
Total nonperforming assets
|
$
|
91,760
|
|
|
$
|
109,323
|
|
|
$
|
131,753
|
|
|
$
|
175,239
|
|
|
$
|
153,295
|
|
Nonperforming loans as a percent of total loans
|
1.76
|
%
|
|
2.18
|
%
|
|
2.77
|
%
|
|
4.01
|
%
|
|
4.54
|
%
|
|||||
Nonperforming assets as a percent of total assets
|
1.48
|
%
|
|
1.85
|
%
|
|
2.47
|
%
|
|
3.34
|
%
|
|
3.61
|
%
|
(1)
|
There was no interest income recognized on nonaccrual loans in
2013
while they were in nonaccrual status. During
2013
, the Corporation received and recognized
$0.9 million
of interest income on these loans while they were in an accruing status. Additional interest income of
$3.5 million
would have been recorded in
2013
on nonaccrual loans existing at December 31,
2013
had they been current in accordance with their original terms.
|
(2)
|
Interest income of
$3.2 million
was recorded in
2013
on performing and nonperforming TDRs. The interest income recognized on residential mortgage TDRs may include accretion of an identified impairment at the time of modification, which is attributable to a temporary reduction in the borrower's interest rate.
|
(3)
|
Includes property acquired through foreclosure and by acceptance of a deed in lieu of foreclosure and other property held for sale.
|
|
Years Ended December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In thousands)
|
||||||
Balance at beginning of period
|
$
|
71,298
|
|
|
$
|
78,394
|
|
Additions during period
|
49,157
|
|
|
52,265
|
|
||
Principal balances charged off
|
(18,185
|
)
|
|
(17,169
|
)
|
||
Transfers to other real estate/repossessed assets
|
(5,072
|
)
|
|
(12,830
|
)
|
||
Return to accrual status
|
(17,039
|
)
|
|
(10,956
|
)
|
||
Payments received
|
(18,262
|
)
|
|
(18,406
|
)
|
||
Balance at end of period
|
$
|
61,897
|
|
|
$
|
71,298
|
|
|
December 31,
|
||||||||||||
|
2013
|
|
2012
|
||||||||||
|
Amount
|
|
Percent
of Total
|
|
Amount
|
|
Percent
of Total
|
||||||
|
(Dollars in thousands)
|
||||||||||||
Commercial loan portfolio:
|
|
|
|
|
|
|
|
||||||
Commercial
|
$
|
22,617
|
|
|
28
|
%
|
|
$
|
19,763
|
|
|
22
|
%
|
Commercial real estate
|
36,082
|
|
|
44
|
|
|
42,472
|
|
|
47
|
|
||
Real estate construction
|
371
|
|
|
1
|
|
|
1,217
|
|
|
1
|
|
||
Land development
|
4,722
|
|
|
5
|
|
|
8,173
|
|
|
9
|
|
||
Subtotal — commercial loan portfolio
|
63,792
|
|
|
78
|
|
|
71,625
|
|
|
79
|
|
||
Consumer loan portfolio:
|
|
|
|
|
|
|
|
||||||
Residential mortgage
|
14,134
|
|
|
17
|
|
|
14,988
|
|
|
16
|
|
||
Consumer installment
|
676
|
|
|
1
|
|
|
739
|
|
|
1
|
|
||
Home equity
|
3,382
|
|
|
4
|
|
|
3,502
|
|
|
4
|
|
||
Subtotal — consumer loan portfolio
|
18,192
|
|
|
22
|
|
|
19,229
|
|
|
21
|
|
||
Total nonperforming loans
|
$
|
81,984
|
|
|
100
|
%
|
|
$
|
90,854
|
|
|
100
|
%
|
|
December 31,
|
||||||||||
|
2013
|
|
2012
|
||||||||
|
Number of
Borrowers
|
|
Amount
|
|
Number of
Borrowers
|
|
Amount
|
||||
|
(Dollars in thousands)
|
||||||||||
$5,000,000 or more
|
2
|
|
$
|
12,267
|
|
|
1
|
|
$
|
6,157
|
|
$2,500,000 - $4,999,999
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||
$1,000,000 - $2,499,999
|
6
|
|
9,858
|
|
|
16
|
|
27,408
|
|
||
$500,000 - $999,999
|
27
|
|
19,813
|
|
|
21
|
|
14,868
|
|
||
$250,000 - $499,999
|
25
|
|
8,318
|
|
|
28
|
|
9,521
|
|
||
Under $250,000
|
181
|
|
13,536
|
|
|
173
|
|
13,671
|
|
||
Total
|
241
|
|
$
|
63,792
|
|
|
239
|
|
$
|
71,625
|
|
|
|
Performing
TDRs
|
|
Nonperforming TDRs
|
|
|
|
Total
|
||||||||||||||||
|
|
Current
|
|
Past Due
31-90 Days
|
|
Sub-
Total
|
|
Nonaccrual TDRs
|
|
|||||||||||||||
December 31, 2013
|
|
(In thousands)
|
||||||||||||||||||||||
Commercial loan portfolio
|
|
$
|
26,839
|
|
|
$
|
10,860
|
|
|
$
|
2,554
|
|
|
$
|
13,414
|
|
|
$
|
31,961
|
|
|
$
|
72,214
|
|
Consumer loan portfolio
|
|
12,732
|
|
|
3,797
|
|
|
879
|
|
|
4,676
|
|
|
5,321
|
|
|
22,729
|
|
||||||
Total TDRs
|
|
$
|
39,571
|
|
|
$
|
14,657
|
|
|
$
|
3,433
|
|
|
$
|
18,090
|
|
|
$
|
37,282
|
|
|
$
|
94,943
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial loan portfolio
|
|
$
|
15,789
|
|
|
$
|
13,361
|
|
|
$
|
515
|
|
|
$
|
13,876
|
|
|
$
|
42,711
|
|
|
$
|
72,376
|
|
Consumer loan portfolio
|
|
15,580
|
|
|
2,688
|
|
|
633
|
|
|
3,321
|
|
|
4,783
|
|
|
23,684
|
|
||||||
Total TDRs
|
|
$
|
31,369
|
|
|
$
|
16,049
|
|
|
$
|
1,148
|
|
|
$
|
17,197
|
|
|
$
|
47,494
|
|
|
$
|
96,060
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||||||
|
|
2013
|
|
2012
|
||||||||||||||||||||
|
|
Performing
|
|
Nonperforming
|
|
Total
|
|
Performing
|
|
Nonperforming
|
|
Total
|
||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
Balance at beginning of period
|
|
$
|
15,789
|
|
|
$
|
13,876
|
|
|
$
|
29,665
|
|
|
$
|
4,765
|
|
|
$
|
14,675
|
|
|
$
|
19,440
|
|
Additions for modifications
|
|
—
|
|
|
14,571
|
|
|
14,571
|
|
|
—
|
|
|
19,148
|
|
|
19,148
|
|
||||||
Transfers to performing TDR status
|
|
12,744
|
|
|
(12,744
|
)
|
|
—
|
|
|
15,124
|
|
|
(15,124
|
)
|
|
—
|
|
||||||
Transfers to nonperforming TDR status
|
|
(2,465
|
)
|
|
2,465
|
|
|
—
|
|
|
(3,696
|
)
|
|
3,696
|
|
|
—
|
|
||||||
Principal payments and pay-offs
|
|
(2,517
|
)
|
|
(2,830
|
)
|
|
(5,347
|
)
|
|
(990
|
)
|
|
(310
|
)
|
|
(1,300
|
)
|
||||||
Transfers from (to) nonaccrual status
|
|
3,288
|
|
|
(1,924
|
)
|
|
1,364
|
|
|
586
|
|
|
(8,209
|
)
|
|
(7,623
|
)
|
||||||
Balance at end of period
|
|
$
|
26,839
|
|
|
$
|
13,414
|
|
|
$
|
40,253
|
|
|
$
|
15,789
|
|
|
$
|
13,876
|
|
|
$
|
29,665
|
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In thousands)
|
||||||
Composition of ORE:
|
|
|
|
||||
Vacant land
|
$
|
2,827
|
|
|
$
|
3,407
|
|
Commercial real estate properties
|
4,678
|
|
|
8,359
|
|
||
Residential real estate properties
|
2,013
|
|
|
5,764
|
|
||
Residential land development properties
|
—
|
|
|
527
|
|
||
Total ORE
|
$
|
9,518
|
|
|
$
|
18,057
|
|
|
Years Ended December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In thousands)
|
||||||
Balance at beginning of year
|
$
|
18,057
|
|
|
$
|
24,888
|
|
Additions
|
4,134
|
|
|
12,988
|
|
||
Write-downs to fair value
|
(1,308
|
)
|
|
(1,602
|
)
|
||
Dispositions
|
(11,365
|
)
|
|
(18,217
|
)
|
||
Balance at end of year
|
$
|
9,518
|
|
|
$
|
18,057
|
|
|
December 31,
|
||||||
|
2013
|
|
2012
|
||||
|
(In thousands)
|
||||||
Impaired loans - commercial loan portfolio:
|
|
|
|
||||
Originated commercial loan portfolio:
|
|
|
|
||||
Nonaccrual loans
|
$
|
49,652
|
|
|
$
|
57,662
|
|
Nonperforming TDRs
|
13,414
|
|
|
13,876
|
|
||
Performing TDRs
|
26,839
|
|
|
15,789
|
|
||
Subtotal
|
89,905
|
|
|
87,327
|
|
||
Acquired commercial loan portfolio
|
9,787
|
|
|
9,099
|
|
||
Total impaired loans - commercial loan portfolio
|
99,692
|
|
|
96,426
|
|
||
Impaired loans - consumer loan portfolio:
|
|
|
|
||||
Nonaccrual loans
|
12,245
|
|
|
13,636
|
|
||
Nonperforming TDRs
|
4,676
|
|
|
3,321
|
|
||
Performing TDRs
|
12,732
|
|
|
15,580
|
|
||
Total impaired loans - consumer loan portfolio
|
29,653
|
|
|
32,537
|
|
||
Total impaired loans
|
$
|
129,345
|
|
|
$
|
128,963
|
|
|
|
Amount
|
|
Valuation
Allowance
|
|
Confirmed
Losses
|
|
Cumulative
Inherent
Loss Percentage
|
|||||||
|
|
(Dollars in thousands)
|
|||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|||||||
Impaired loans — originated commercial loan portfolio:
|
|
|
|
|
|
|
|
|
|||||||
With valuation allowance and no charge-offs
|
|
$
|
4,534
|
|
|
$
|
1,020
|
|
|
$
|
—
|
|
|
22
|
%
|
With valuation allowance and charge-offs
|
|
559
|
|
|
61
|
|
|
528
|
|
|
54
|
|
|||
With charge-offs and no valuation allowance
|
|
23,759
|
|
|
—
|
|
|
19,643
|
|
|
45
|
|
|||
Without valuation allowance or charge-offs
|
|
61,053
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
89,905
|
|
|
$
|
1,081
|
|
|
$
|
20,171
|
|
|
19
|
%
|
|
Impaired acquired loans
|
|
9,787
|
|
|
|
|
|
|
|
||||||
Total impaired loans to commercial borrowers
|
|
$
|
99,692
|
|
|
|
|
|
|
|
|||||
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
|
|
|
27
|
%
|
|
Impaired acquired loans
|
|
9,099
|
|
|
|
|
|
|
|
||||||
Total impaired loans to commercial borrowers
|
|
$
|
96,426
|
|
|
|
|
|
|
|
|
December 31,
|
||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Originated loans
|
$
|
78,572
|
|
|
$
|
83,991
|
|
|
$
|
86,733
|
|
|
$
|
89,530
|
|
|
$
|
80,841
|
|
Acquired loans
|
500
|
|
|
500
|
|
|
1,600
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
79,072
|
|
|
$
|
84,491
|
|
|
$
|
88,333
|
|
|
$
|
89,530
|
|
|
$
|
80,841
|
|
Nonperforming loans
|
$
|
81,984
|
|
|
$
|
90,854
|
|
|
$
|
106,269
|
|
|
$
|
147,729
|
|
|
$
|
135,755
|
|
Allowance for originated loans as a percent of:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total originated loans
|
1.81
|
%
|
|
2.22
|
%
|
|
2.60
|
%
|
|
2.86
|
%
|
|
2.60
|
%
|
|||||
Nonperforming loans
|
96
|
%
|
|
92
|
%
|
|
82
|
%
|
|
61
|
%
|
|
60
|
%
|
|||||
Nonperforming loans, less impaired originated loans for which the expected loss has been charged-off
|
135
|
%
|
|
132
|
%
|
|
107
|
%
|
|
70
|
%
|
|
70
|
%
|
|
Years Ended December 31,
|
||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Allowance for loan losses - beginning of year
|
$
|
84,491
|
|
|
$
|
88,333
|
|
|
$
|
89,530
|
|
|
$
|
80,841
|
|
|
$
|
57,056
|
|
Provision for loan losses
|
11,000
|
|
|
18,500
|
|
|
26,000
|
|
|
45,600
|
|
|
59,000
|
|
|||||
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
(4,104
|
)
|
|
(6,427
|
)
|
|
(6,950
|
)
|
|
(8,430
|
)
|
|
(12,001
|
)
|
|||||
Commercial real estate
|
(7,363
|
)
|
|
(7,930
|
)
|
|
(13,132
|
)
|
|
(10,811
|
)
|
|
(9,231
|
)
|
|||||
Real estate construction
|
(37
|
)
|
|
(70
|
)
|
|
(31
|
)
|
|
(755
|
)
|
|
(343
|
)
|
|||||
Land development
|
(776
|
)
|
|
(1,296
|
)
|
|
(458
|
)
|
|
(1,784
|
)
|
|
(6,626
|
)
|
|||||
Residential mortgage
|
(2,878
|
)
|
|
(5,438
|
)
|
|
(4,971
|
)
|
|
(8,041
|
)
|
|
(3,694
|
)
|
|||||
Consumer installment
|
(3,993
|
)
|
|
(4,605
|
)
|
|
(4,308
|
)
|
|
(6,289
|
)
|
|
(5,215
|
)
|
|||||
Home equity
|
(1,995
|
)
|
|
(1,670
|
)
|
|
(2,258
|
)
|
|
(4,376
|
)
|
|
(1,576
|
)
|
|||||
Total loan charge-offs
|
(21,146
|
)
|
|
(27,436
|
)
|
|
(32,108
|
)
|
|
(40,486
|
)
|
|
(38,686
|
)
|
|||||
Recoveries of loans previously charged off:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
1,783
|
|
|
744
|
|
|
1,676
|
|
|
921
|
|
|
904
|
|
|||||
Commercial real estate
|
1,086
|
|
|
2,246
|
|
|
856
|
|
|
426
|
|
|
495
|
|
|||||
Real estate construction
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
46
|
|
|||||
Land development
|
23
|
|
|
2
|
|
|
42
|
|
|
20
|
|
|
261
|
|
|||||
Residential mortgage
|
346
|
|
|
562
|
|
|
849
|
|
|
543
|
|
|
614
|
|
|||||
Consumer installment
|
1,350
|
|
|
1,396
|
|
|
1,156
|
|
|
1,604
|
|
|
1,116
|
|
|||||
Home equity
|
139
|
|
|
144
|
|
|
329
|
|
|
61
|
|
|
35
|
|
|||||
Total loan recoveries
|
4,727
|
|
|
5,094
|
|
|
4,911
|
|
|
3,575
|
|
|
3,471
|
|
|||||
Net loan charge-offs
|
(16,419
|
)
|
|
(22,342
|
)
|
|
(27,197
|
)
|
|
(36,911
|
)
|
|
(35,215
|
)
|
|||||
Allowance for loan losses - end of year
|
$
|
79,072
|
|
|
$
|
84,491
|
|
|
$
|
88,333
|
|
|
$
|
89,530
|
|
|
$
|
80,841
|
|
Net loan charge-offs during the year as a percentage of average loans outstanding during the year
|
0.38
|
%
|
|
0.57
|
%
|
|
0.73
|
%
|
|
1.07
|
%
|
|
1.18
|
%
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|||||||||||||||||||||||||
|
Allowance
Amount
|
|
Percent of
Originated
Loans
in Each
Category
to Total
Loans
|
|
Allowance
Amount
|
|
Percent of
Originated
Loans
in Each
Category
to Total
Loans
|
|
Allowance
Amount
|
|
Percent of
Originated
Loans
in Each
Category
to Total
Loans
|
|
Allowance
Amount
|
|
Percent of
Originated
Loans
in Each
Category
to Total
Loans
|
|
Allowance
Amount
|
|
Percent
of Loans
in Each
Category
to Total
Loans
|
|||||||||||||||
|
(Dollars in millions)
|
|||||||||||||||||||||||||||||||||
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
$
|
18.2
|
|
|
25
|
%
|
|
$
|
18.8
|
|
|
24
|
%
|
|
$
|
20.7
|
|
|
23
|
%
|
|
$
|
22.2
|
|
|
22
|
%
|
|
$
|
19.1
|
|
|
20
|
%
|
Commercial real estate
|
23.8
|
|
|
25
|
|
|
28.4
|
|
|
25
|
|
|
30.0
|
|
|
24
|
|
|
32.6
|
|
|
25
|
|
|
23.9
|
|
|
26
|
|
|||||
Real estate
construction
|
1.6
|
|
|
2
|
|
|
1.0
|
|
|
1
|
|
|
1.3
|
|
|
2
|
|
|
1.6
|
|
|
2
|
|
|
1.9
|
|
|
2
|
|
|||||
Land development
|
0.9
|
|
|
—
|
|
|
1.8
|
|
|
1
|
|
|
2.4
|
|
|
1
|
|
|
3.0
|
|
|
1
|
|
|
3.8
|
|
|
2
|
|
|||||
Residential mortgage
|
12.8
|
|
|
22
|
|
|
13.3
|
|
|
23
|
|
|
13.0
|
|
|
25
|
|
|
10.8
|
|
|
25
|
|
|
13.1
|
|
|
25
|
|
|||||
Consumer installment
|
8.7
|
|
|
15
|
|
|
8.3
|
|
|
14
|
|
|
9.8
|
|
|
14
|
|
|
10.7
|
|
|
16
|
|
|
11.4
|
|
|
16
|
|
|||||
Home equity
|
8.1
|
|
|
11
|
|
|
7.2
|
|
|
12
|
|
|
6.0
|
|
|
11
|
|
|
5.9
|
|
|
9
|
|
|
5.9
|
|
|
9
|
|
|||||
Unallocated
|
4.5
|
|
|
—
|
|
|
5.2
|
|
|
—
|
|
|
3.5
|
|
|
—
|
|
|
2.7
|
|
|
—
|
|
|
1.7
|
|
|
—
|
|
|||||
Subtotal — originated loans
|
78.6
|
|
|
100
|
%
|
|
84.0
|
|
|
100
|
%
|
|
86.7
|
|
|
100
|
%
|
|
89.5
|
|
|
100
|
%
|
|
$
|
80.8
|
|
|
100
|
%
|
||||
Acquired loans
|
0.5
|
|
|
|
|
0.5
|
|
|
|
|
1.6
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$
|
79.1
|
|
|
|
|
$
|
84.5
|
|
|
|
|
$
|
88.3
|
|
|
|
|
$
|
89.5
|
|
|
|
|
|
|
|
Maturity Schedule
|
|
Amount
|
|
Weighted
Average
Interest Rate
|
|||
|
|
(Dollars in thousands)
|
|||||
2014 maturities:
|
|
|
|
|
|||
First quarter
|
|
$
|
335,689
|
|
|
0.48
|
%
|
Second quarter
|
|
191,363
|
|
|
0.81
|
|
|
Third quarter
|
|
168,863
|
|
|
0.99
|
|
|
Fourth quarter
|
|
161,826
|
|
|
0.92
|
|
|
Total 2014 maturities
|
|
857,741
|
|
|
0.74
|
|
|
2015 maturities
|
|
268,924
|
|
|
1.64
|
|
|
2016 maturities
|
|
91,316
|
|
|
1.36
|
|
|
2017 maturities
|
|
57,725
|
|
|
1.46
|
|
|
2018 maturities
|
|
56,225
|
|
|
1.31
|
|
|
Total time deposits
|
|
$
|
1,331,931
|
|
|
1.02
|
%
|
|
|
December 31, 2013
|
|||||
|
|
Amount
|
|
Percent
|
|||
|
|
(Dollars in thousands)
|
|||||
Maturity:
|
|
|
|
|
|||
Within 3 months
|
|
$
|
150,269
|
|
|
28.4
|
%
|
After 3 but within 6 months
|
|
84,057
|
|
|
15.9
|
|
|
After 6 but within 12 months
|
|
118,280
|
|
|
22.3
|
|
|
After 12 months
|
|
176,659
|
|
|
33.4
|
|
|
Total
|
|
$
|
529,265
|
|
|
100.0
|
%
|
|
|
December 31, 2013
|
||||||||||||||||||
|
|
Minimum Payments Due by Period
|
||||||||||||||||||
|
|
Less than
1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than
5 years
|
|
Total
|
||||||||||
Contractual Obligations:
|
|
(In thousands)
|
||||||||||||||||||
Deposits with no stated maturity
(1)
|
|
$
|
3,790,454
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,790,454
|
|
Time deposits with a stated maturity
(1)
|
|
857,741
|
|
|
360,240
|
|
|
113,950
|
|
|
—
|
|
|
1,331,931
|
|
|||||
Short-term borrowings
(1)
|
|
327,428
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
327,428
|
|
|||||
Operating leases and noncancelable contracts
|
|
10,889
|
|
|
18,959
|
|
|
8,152
|
|
|
6,867
|
|
|
44,867
|
|
|||||
Other contractual obligations
(2)
|
|
2,674
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,674
|
|
|||||
Total contractual obligations
|
|
$
|
4,989,186
|
|
|
$
|
379,199
|
|
|
$
|
122,102
|
|
|
$
|
6,867
|
|
|
$
|
5,497,354
|
|
|
|
December 31, 2013
|
||||||||||||||||||
|
|
Expiration Dates by Period
|
||||||||||||||||||
|
|
Less than
1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than
5 years
|
|
Total
|
||||||||||
Credit-related commitments:
|
|
(In thousands)
|
||||||||||||||||||
Unused commitments to extend credit:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial loans
|
|
$
|
520,104
|
|
|
$
|
86,827
|
|
|
$
|
26,877
|
|
|
$
|
42,359
|
|
|
$
|
676,167
|
|
Home equity lines of credit
|
|
31,102
|
|
|
41,612
|
|
|
62,121
|
|
|
16,975
|
|
|
151,810
|
|
|||||
Unsecured consumer loans
|
|
9,560
|
|
|
1,596
|
|
|
5,282
|
|
|
1,860
|
|
|
18,298
|
|
|||||
Residential mortgage construction loans
|
|
31,963
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,963
|
|
|||||
Total unused commitments to extend credit
|
|
592,729
|
|
|
130,035
|
|
|
94,280
|
|
|
61,194
|
|
|
878,238
|
|
|||||
Undisbursed loan commitments
(1)
|
|
197,305
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
197,305
|
|
|||||
Standby letters of credit
|
|
38,614
|
|
|
7,924
|
|
|
472
|
|
|
—
|
|
|
47,010
|
|
|||||
Total credit-related commitments
|
|
$
|
828,648
|
|
|
$
|
137,959
|
|
|
$
|
94,752
|
|
|
$
|
61,194
|
|
|
$
|
1,122,553
|
|
|
Years Ended December 31,
|
||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
||||||||||
Annual Cash Dividend (per common share)
|
$
|
0.87
|
|
|
$
|
0.82
|
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
|
$
|
1.18
|
|
|
|
December 31, 2013
|
|||||||
|
|
Leverage
Ratio
|
|
Risk-Based
Capital Ratios
|
|||||
|
|
Tier 1
|
|
Total
|
|||||
Actual Capital Ratios:
|
|
|
|
|
|
|
|||
Chemical Financial Corporation
|
|
9.9
|
%
|
|
12.7
|
%
|
|
14.0
|
%
|
Chemical Bank
|
|
8.7
|
|
|
11.2
|
|
|
12.5
|
|
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
|
|
|
Years Ended December 31,
|
|||||||||||||||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|||||||||||||||||||||||||||
|
Average
Balance
|
|
Interest (FTE)
|
|
Effective
Yield/
Rate
|
|
Average
Balance
|
|
Interest (FTE)
|
|
Effective
Yield/
Rate
|
|
Average
Balance
|
|
Interest (FTE)
|
|
Effective
Yield/
Rate
|
|||||||||||||||
ASSETS
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Interest-Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans
(2)
|
$
|
4,366,209
|
|
|
$
|
197,563
|
|
|
4.52
|
%
|
|
$
|
3,965,074
|
|
|
$
|
195,122
|
|
|
4.92
|
%
|
|
$
|
3,741,850
|
|
|
$
|
199,982
|
|
|
5.34
|
%
|
Taxable investment securities
|
721,932
|
|
|
10,234
|
|
|
1.42
|
|
|
670,766
|
|
|
9,890
|
|
|
1.47
|
|
|
607,921
|
|
|
9,423
|
|
|
1.55
|
|
||||||
Tax-exempt investment securities
|
233,965
|
|
|
9,776
|
|
|
4.18
|
|
|
189,796
|
|
|
9,039
|
|
|
4.76
|
|
|
171,971
|
|
|
8,907
|
|
|
5.18
|
|
||||||
Other interest-earning assets
|
25,572
|
|
|
1,105
|
|
|
4.32
|
|
|
25,572
|
|
|
1,041
|
|
|
4.07
|
|
|
26,252
|
|
|
965
|
|
|
3.68
|
|
||||||
Interest-bearing deposits with FRB
|
281,291
|
|
|
738
|
|
|
0.26
|
|
|
264,919
|
|
|
703
|
|
|
0.27
|
|
|
423,710
|
|
|
1,097
|
|
|
0.26
|
|
||||||
Total interest-earning assets
|
5,628,969
|
|
|
219,416
|
|
|
3.90
|
%
|
|
5,116,127
|
|
|
215,795
|
|
|
4.22
|
%
|
|
4,971,704
|
|
|
220,374
|
|
|
4.43
|
%
|
||||||
Less: Allowance for loan losses
|
(83,264
|
)
|
|
|
|
|
|
(87,510
|
)
|
|
|
|
|
|
(91,720
|
)
|
|
|
|
|
||||||||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash and cash due from banks
|
121,488
|
|
|
|
|
|
|
113,582
|
|
|
|
|
|
|
113,919
|
|
|
|
|
|
||||||||||||
Premises and equipment
|
74,134
|
|
|
|
|
|
|
67,753
|
|
|
|
|
|
|
65,344
|
|
|
|
|
|
||||||||||||
Interest receivable and other assets
|
223,265
|
|
|
|
|
|
|
232,127
|
|
|
|
|
|
|
244,851
|
|
|
|
|
|
||||||||||||
Total Assets
|
$
|
5,964,592
|
|
|
|
|
|
|
$
|
5,442,079
|
|
|
|
|
|
|
$
|
5,304,098
|
|
|
|
|
|
|||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing demand deposits
|
$
|
1,093,975
|
|
|
$
|
1,011
|
|
|
0.09
|
%
|
|
$
|
890,029
|
|
|
$
|
971
|
|
|
0.11
|
%
|
|
$
|
820,996
|
|
|
$
|
1,366
|
|
|
0.17
|
%
|
Savings deposits
|
1,357,317
|
|
|
1,210
|
|
|
0.09
|
|
|
1,174,556
|
|
|
1,367
|
|
|
0.12
|
|
|
1,141,977
|
|
|
2,342
|
|
|
0.21
|
|
||||||
Time deposits
|
1,391,045
|
|
|
14,662
|
|
|
1.05
|
|
|
1,451,493
|
|
|
19,444
|
|
|
1.34
|
|
|
1,560,405
|
|
|
25,585
|
|
|
1.64
|
|
||||||
Short-term borrowings
|
337,649
|
|
|
484
|
|
|
0.14
|
|
|
312,729
|
|
|
426
|
|
|
0.14
|
|
|
287,176
|
|
|
524
|
|
|
0.18
|
|
||||||
FHLB advances
|
1,935
|
|
|
47
|
|
|
2.43
|
|
|
39,301
|
|
|
1,005
|
|
|
2.56
|
|
|
64,257
|
|
|
1,572
|
|
|
2.45
|
|
||||||
Total interest-bearing liabilities
|
4,181,921
|
|
|
17,414
|
|
|
0.42
|
|
|
3,868,108
|
|
|
23,213
|
|
|
0.60
|
|
|
3,874,811
|
|
|
31,389
|
|
|
0.81
|
|
||||||
Noninterest-bearing deposits
|
1,121,745
|
|
|
—
|
|
|
—
|
|
|
947,984
|
|
|
—
|
|
|
—
|
|
|
826,495
|
|
|
—
|
|
|
—
|
|
||||||
Total deposits and borrowed funds
|
5,303,666
|
|
|
17,414
|
|
|
0.33
|
|
|
4,816,092
|
|
|
23,213
|
|
|
0.48
|
|
|
4,701,306
|
|
|
31,389
|
|
|
0.67
|
|
||||||
Interest payable and other liabilities
|
34,371
|
|
|
|
|
|
|
38,536
|
|
|
|
|
|
|
33,271
|
|
|
|
|
|
||||||||||||
Shareholders' Equity
|
626,555
|
|
|
|
|
|
|
587,451
|
|
|
|
|
|
|
569,521
|
|
|
|
|
|
||||||||||||
Total Liabilities and Shareholders' Equity
|
$
|
5,964,592
|
|
|
|
|
|
|
$
|
5,442,079
|
|
|
|
|
|
|
$
|
5,304,098
|
|
|
|
|
|
|||||||||
Net Interest Spread (Average yield earned minus average rate paid)
|
|
|
|
|
3.48
|
%
|
|
|
|
|
|
3.62
|
%
|
|
|
|
|
|
3.62
|
%
|
||||||||||||
Net Interest Income (FTE)
|
|
|
$
|
202,002
|
|
|
|
|
|
|
$
|
192,582
|
|
|
|
|
|
|
$
|
188,985
|
|
|
|
|||||||||
Net Interest Margin (Net interest income (FTE)/total average interest-earning assets)
|
|
|
|
3.59
|
%
|
|
|
|
|
|
3.76
|
%
|
|
|
|
|
|
3.80
|
%
|
(1)
|
Taxable equivalent basis using a federal income tax rate of 35%.
|
(2)
|
Nonaccrual loans and loans held-for-sale are included in average balances reported and are included in the calculation of yields. Also, tax equivalent interest includes net loan fees.
|
|
|
2013 Compared to 2012
|
|
2012 Compared to 2011
|
||||||||||||||||||||
|
|
Increase (Decrease)
Due to Changes in
|
|
Combined
Increase
(Decrease)
|
|
Increase (Decrease)
Due to Changes in
|
|
Combined
Increase
(Decrease)
|
||||||||||||||||
|
|
Average
Volume
(2)
|
|
Average
Yield/ Rate
(2)
|
|
|
Average
Volume
(2)
|
|
Average
Yield/ Rate
(2)
|
|
||||||||||||||
Changes in Interest Income on Interest-Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans
|
|
$
|
18,620
|
|
|
$
|
(16,179
|
)
|
|
$
|
2,441
|
|
|
$
|
11,254
|
|
|
$
|
(16,114
|
)
|
|
$
|
(4,860
|
)
|
Taxable investment securities/other assets
|
|
708
|
|
|
(300
|
)
|
|
408
|
|
|
946
|
|
|
(403
|
)
|
|
543
|
|
||||||
Tax-exempt investment securities
|
|
1,949
|
|
|
(1,212
|
)
|
|
737
|
|
|
898
|
|
|
(766
|
)
|
|
132
|
|
||||||
Interest-bearing deposits with the FRB
|
|
55
|
|
|
(20
|
)
|
|
35
|
|
|
(434
|
)
|
|
40
|
|
|
(394
|
)
|
||||||
Total change in interest income on interest-earning assets
|
|
21,332
|
|
|
(17,711
|
)
|
|
3,621
|
|
|
12,664
|
|
|
(17,243
|
)
|
|
(4,579
|
)
|
||||||
Changes in Interest Expense on Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing demand deposits
|
|
213
|
|
|
(173
|
)
|
|
40
|
|
|
49
|
|
|
(444
|
)
|
|
(395
|
)
|
||||||
Savings deposits
|
|
160
|
|
|
(317
|
)
|
|
(157
|
)
|
|
10
|
|
|
(985
|
)
|
|
(975
|
)
|
||||||
Time deposits
|
|
(664
|
)
|
|
(4,118
|
)
|
|
(4,782
|
)
|
|
(1,659
|
)
|
|
(4,482
|
)
|
|
(6,141
|
)
|
||||||
Short-term borrowings
|
|
58
|
|
|
—
|
|
|
58
|
|
|
38
|
|
|
(136
|
)
|
|
(98
|
)
|
||||||
FHLB advances
|
|
(910
|
)
|
|
(48
|
)
|
|
(958
|
)
|
|
(635
|
)
|
|
68
|
|
|
(567
|
)
|
||||||
Total change in interest expense on interest-bearing liabilities
|
|
(1,143
|
)
|
|
(4,656
|
)
|
|
(5,799
|
)
|
|
(2,197
|
)
|
|
(5,979
|
)
|
|
(8,176
|
)
|
||||||
Total Change in Net Interest Income (FTE)
|
|
$
|
22,475
|
|
|
$
|
(13,055
|
)
|
|
$
|
9,420
|
|
|
$
|
14,861
|
|
|
$
|
(11,264
|
)
|
|
$
|
3,597
|
|
(1)
|
Taxable equivalent basis using a federal income tax rate of 35%.
|
(2)
|
The change in interest income and interest expense due to both volume and rate has been allocated to the volume and rate change in proportion to the relationship of the absolute dollar amount of the change in each.
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(Dollars in thousands)
|
||||||||||
Service charges and fees on deposit accounts
|
$
|
21,939
|
|
|
$
|
19,581
|
|
|
$
|
18,452
|
|
Wealth management revenue
|
13,989
|
|
|
11,763
|
|
|
11,104
|
|
|||
Electronic banking fees
|
12,213
|
|
|
9,793
|
|
|
9,127
|
|
|||
Mortgage banking revenue
|
5,336
|
|
|
6,597
|
|
|
3,881
|
|
|||
Other fees for customer services
|
3,288
|
|
|
2,598
|
|
|
2,451
|
|
|||
Insurance commissions
|
1,650
|
|
|
1,836
|
|
|
1,413
|
|
|||
Gain on sale of investment securities
|
1,133
|
|
|
34
|
|
|
—
|
|
|||
Gain on sale of merchant card services
|
—
|
|
|
1,280
|
|
|
—
|
|
|||
Other
|
861
|
|
|
1,202
|
|
|
462
|
|
|||
Total noninterest income
|
$
|
60,409
|
|
|
$
|
54,684
|
|
|
$
|
46,890
|
|
Noninterest income
(1)
as a percentage of:
|
|
|
|
|
|
||||||
Net revenue (net interest income plus noninterest income)
|
23
|
%
|
|
22
|
%
|
|
20
|
%
|
|||
Average total assets
|
0.99
|
%
|
|
0.96
|
%
|
|
0.88
|
%
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
(Dollars in thousands)
|
||||||||||
Salaries and wages
|
|
$
|
78,014
|
|
|
$
|
68,668
|
|
|
$
|
61,301
|
|
Employee benefits
|
|
18,405
|
|
|
15,715
|
|
|
13,192
|
|
|||
Occupancy
|
|
13,934
|
|
|
12,413
|
|
|
12,974
|
|
|||
Equipment and software
|
|
13,734
|
|
|
13,112
|
|
|
11,935
|
|
|||
Outside processing and service fees
|
|
11,134
|
|
|
10,679
|
|
|
9,583
|
|
|||
FDIC insurance premiums
|
|
4,362
|
|
|
4,320
|
|
|
5,375
|
|
|||
Professional fees
|
|
3,771
|
|
|
4,347
|
|
|
4,128
|
|
|||
Postage and express mail
|
|
3,051
|
|
|
3,149
|
|
|
3,147
|
|
|||
Advertising and marketing
|
|
2,971
|
|
|
3,106
|
|
|
2,850
|
|
|||
Donations
|
|
2,829
|
|
|
1,892
|
|
|
1,537
|
|
|||
Training, travel and other employee expenses
|
|
2,512
|
|
|
2,530
|
|
|
2,246
|
|
|||
Telephone
|
|
1,940
|
|
|
1,693
|
|
|
1,631
|
|
|||
Intangible asset amortization
|
|
1,909
|
|
|
1,569
|
|
|
1,860
|
|
|||
Supplies
|
|
1,670
|
|
|
1,567
|
|
|
1,690
|
|
|||
Credit-related expenses
|
|
707
|
|
|
3,816
|
|
|
9,535
|
|
|||
Other
|
|
4,005
|
|
|
3,345
|
|
|
1,509
|
|
|||
Total operating expenses
|
|
$
|
164,948
|
|
|
$
|
151,921
|
|
|
$
|
144,493
|
|
Full-time equivalent staff (at December 31)
|
|
1,743
|
|
|
1,859
|
|
|
1,716
|
|
|||
Efficiency ratio
(1)
|
|
63.1
|
%
|
|
60.8
|
%
|
|
61.3
|
%
|
|||
Total operating expenses as a percentage of total average assets
(1)
|
|
2.76
|
%
|
|
2.74
|
%
|
|
2.72
|
%
|
|
Gradual Change
|
|
Immediate
Change
|
||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||
Twelve month interest rate change projection (in basis points)
|
-200
|
|
-100
|
|
0
|
|
+100
|
|
+200
|
|
+400
|
||||
Percent change in net interest income vs. constant rates
|
(3.9
|
)%
|
|
(1.8
|
)%
|
|
—
|
|
0.1
|
%
|
|
(0.6
|
)%
|
|
(2.4)%
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
||||
Twelve month interest rate change projection (in basis points)
|
-200
|
|
-100
|
|
0
|
|
+100
|
|
+200
|
|
+400
|
||||
Percent change in net interest income vs. constant rates
|
(4.1
|
)%
|
|
(2.3
|
)%
|
|
—
|
|
0.9
|
%
|
|
1.3
|
%
|
|
5.7%
|
|
|
December 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands, except share data)
|
||||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents:
|
|
|
|
|
||||
Cash and cash due from banks
|
|
$
|
130,811
|
|
|
$
|
142,467
|
|
Interest-bearing deposits with the Federal Reserve Bank
|
|
179,977
|
|
|
513,668
|
|
||
Total cash and cash equivalents
|
|
310,788
|
|
|
656,135
|
|
||
Investment securities:
|
|
|
|
|
||||
Available-for-sale, at fair value
|
|
684,570
|
|
|
586,809
|
|
||
Held-to-maturity, at amortized cost (fair value - $268,271 at December 31, 2013 and $229,922 at December 31, 2012)
|
|
273,905
|
|
|
229,977
|
|
||
Total investment securities
|
|
958,475
|
|
|
816,786
|
|
||
Loans held-for-sale, at fair value
|
|
5,219
|
|
|
17,665
|
|
||
Loans
|
|
4,647,621
|
|
|
4,167,735
|
|
||
Allowance for loan losses
|
|
(79,072
|
)
|
|
(84,491
|
)
|
||
Net loans
|
|
4,568,549
|
|
|
4,083,244
|
|
||
Premises and equipment
|
|
75,308
|
|
|
75,458
|
|
||
Goodwill
|
|
120,164
|
|
|
120,164
|
|
||
Other intangible assets
|
|
13,424
|
|
|
15,388
|
|
||
Interest receivable and other assets
|
|
132,781
|
|
|
132,412
|
|
||
Total Assets
|
|
$
|
6,184,708
|
|
|
$
|
5,917,252
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
||||
Noninterest-bearing
|
|
$
|
1,227,768
|
|
|
$
|
1,085,857
|
|
Interest-bearing
|
|
3,894,617
|
|
|
3,835,586
|
|
||
Total deposits
|
|
5,122,385
|
|
|
4,921,443
|
|
||
Interest payable and other liabilities
|
|
38,395
|
|
|
54,716
|
|
||
Short-term borrowings
|
|
327,428
|
|
|
310,463
|
|
||
Federal Home Loan Bank (FHLB) advances
|
|
—
|
|
|
34,289
|
|
||
Total liabilities
|
|
5,488,208
|
|
|
5,320,911
|
|
||
Shareholders' equity:
|
|
|
|
|
||||
Preferred stock, no par value:
|
|
|
|
|
||||
Authorized – 200,000 shares, none issued
|
|
—
|
|
|
—
|
|
||
Common stock, $1 par value per share:
|
|
|
|
|
||||
Authorized — 45,000,000 shares
|
|
|
|
|
||||
Issued and outstanding — 29,789,825 shares at December 31, 2013 and 27,498,868 shares at December 31, 2012
|
|
29,790
|
|
|
27,499
|
|
||
Additional paid in capital
|
|
488,177
|
|
|
433,195
|
|
||
Retained earnings
|
|
199,053
|
|
|
166,766
|
|
||
Accumulated other comprehensive loss
|
|
(20,520
|
)
|
|
(31,119
|
)
|
||
Total shareholders' equity
|
|
696,500
|
|
|
596,341
|
|
||
Total Liabilities and Shareholders' Equity
|
|
$
|
6,184,708
|
|
|
$
|
5,917,252
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In thousands, except per share data)
|
||||||||||
Interest Income
|
|
|
|
|
|
||||||
Interest and fees on loans
|
$
|
195,590
|
|
|
$
|
193,193
|
|
|
$
|
197,897
|
|
Interest on investment securities:
|
|
|
|
|
|
||||||
Taxable
|
10,234
|
|
|
9,890
|
|
|
9,423
|
|
|||
Tax-exempt
|
6,394
|
|
|
5,931
|
|
|
5,860
|
|
|||
Dividends on nonmarketable equity securities
|
1,105
|
|
|
1,041
|
|
|
965
|
|
|||
Interest on deposits with the Federal Reserve Bank
|
738
|
|
|
703
|
|
|
1,097
|
|
|||
Total Interest Income
|
214,061
|
|
|
210,758
|
|
|
215,242
|
|
|||
Interest Expense
|
|
|
|
|
|
||||||
Interest on deposits
|
16,883
|
|
|
21,782
|
|
|
29,293
|
|
|||
Interest on short-term borrowings
|
484
|
|
|
426
|
|
|
524
|
|
|||
Interest on FHLB advances
|
47
|
|
|
1,005
|
|
|
1,572
|
|
|||
Total Interest Expense
|
17,414
|
|
|
23,213
|
|
|
31,389
|
|
|||
Net Interest Income
|
196,647
|
|
|
187,545
|
|
|
183,853
|
|
|||
Provision for loan losses
|
11,000
|
|
|
18,500
|
|
|
26,000
|
|
|||
Net Interest Income after Provision for Loan Losses
|
185,647
|
|
|
169,045
|
|
|
157,853
|
|
|||
Noninterest Income
|
|
|
|
|
|
||||||
Service charges and fees on deposit accounts
|
21,939
|
|
|
19,581
|
|
|
18,452
|
|
|||
Wealth management revenue
|
13,989
|
|
|
11,763
|
|
|
11,104
|
|
|||
Other charges and fees for customer services
|
17,151
|
|
|
14,227
|
|
|
12,991
|
|
|||
Mortgage banking revenue
|
5,336
|
|
|
6,597
|
|
|
3,881
|
|
|||
Gain on sale of investment securities
|
1,133
|
|
|
34
|
|
|
—
|
|
|||
Gain on sale of merchant card services
|
—
|
|
|
1,280
|
|
|
—
|
|
|||
Other
|
861
|
|
|
1,202
|
|
|
462
|
|
|||
Total Noninterest Income
|
60,409
|
|
|
54,684
|
|
|
46,890
|
|
|||
Operating Expenses
|
|
|
|
|
|
||||||
Salaries, wages and employee benefits
|
96,419
|
|
|
84,383
|
|
|
74,493
|
|
|||
Occupancy
|
13,934
|
|
|
12,413
|
|
|
12,974
|
|
|||
Equipment and software
|
13,734
|
|
|
13,112
|
|
|
11,935
|
|
|||
Other
|
40,861
|
|
|
42,013
|
|
|
45,091
|
|
|||
Total Operating Expenses
|
164,948
|
|
|
151,921
|
|
|
144,493
|
|
|||
Income Before Income Taxes
|
81,108
|
|
|
71,808
|
|
|
60,250
|
|
|||
Federal income tax expense
|
24,300
|
|
|
20,800
|
|
|
17,200
|
|
|||
Net Income
|
$
|
56,808
|
|
|
$
|
51,008
|
|
|
$
|
43,050
|
|
Net Income Per Common Share
|
|
|
|
|
|
||||||
Basic
|
$
|
2.02
|
|
|
$
|
1.86
|
|
|
$
|
1.57
|
|
Diluted
|
2.00
|
|
|
1.85
|
|
|
1.57
|
|
|||
Cash Dividends Declared Per Common Share
|
0.87
|
|
|
0.82
|
|
|
0.80
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In thousands)
|
||||||||||
Net Income
|
$
|
56,808
|
|
|
$
|
51,008
|
|
|
$
|
43,050
|
|
Other Comprehensive Income (Loss), Net of Tax:
|
|
|
|
|
|
||||||
Change in net unrealized gains (losses) on investment securities available-for-sale, net of tax expense (benefit) of $(3,325), $505 and $10 for the years ended December 31, 2013, 2012 and 2011, respectively
|
(6,177
|
)
|
|
938
|
|
|
19
|
|
|||
Reclassification adjustment for realized gain on sale of investment securities available-for-sale included in net income, net of tax expense of $311 for the year ended December 31, 2013
|
(577
|
)
|
|
—
|
|
|
—
|
|
|||
Change in adjustment for pension and other postretirement benefits, net of tax benefit (expense) of $(9,344), $3,623 and $6,051 for the years ended December 31, 2013, 2012 and 2011, respectively
|
17,353
|
|
|
(6,728
|
)
|
|
(11,237
|
)
|
|||
Total other comprehensive income (loss), net of tax
|
10,599
|
|
|
(5,790
|
)
|
|
(11,218
|
)
|
|||
Comprehensive Income
|
$
|
67,407
|
|
|
$
|
45,218
|
|
|
$
|
31,832
|
|
|
Years Ended December 31, 2013, 2012 and 2011
|
||||||||||||||||||
|
Common
Stock
|
|
Additional
Paid in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
|
||||||||||
|
(In thousands, except per share data)
|
||||||||||||||||||
Balances at January 1, 2011
|
$
|
27,440
|
|
|
$
|
429,511
|
|
|
$
|
117,238
|
|
|
$
|
(14,111
|
)
|
|
$
|
560,078
|
|
Comprehensive income
|
|
|
|
|
43,050
|
|
|
(11,218
|
)
|
|
31,832
|
|
|||||||
Cash dividends declared and paid of $0.80 per share
|
|
|
|
|
(21,964
|
)
|
|
|
|
(21,964
|
)
|
||||||||
Shares issued — directors' stock plans
|
12
|
|
|
254
|
|
|
|
|
|
|
266
|
|
|||||||
Share-based compensation
|
5
|
|
|
1,512
|
|
|
|
|
|
|
1,517
|
|
|||||||
Balances at December 31, 2011
|
27,457
|
|
|
431,277
|
|
|
138,324
|
|
|
(25,329
|
)
|
|
571,729
|
|
|||||
Comprehensive income
|
|
|
|
|
51,008
|
|
|
(5,790
|
)
|
|
45,218
|
|
|||||||
Cash dividends declared and paid of $0.82 per share
|
|
|
|
|
(22,566
|
)
|
|
|
|
(22,566
|
)
|
||||||||
Shares issued — stock options
|
1
|
|
|
19
|
|
|
|
|
|
|
20
|
|
|||||||
Shares issued — directors' stock plans
|
16
|
|
|
307
|
|
|
|
|
|
|
323
|
|
|||||||
Shares issued — restricted stock performance units
|
25
|
|
|
(273
|
)
|
|
|
|
|
|
(248
|
)
|
|||||||
Share-based compensation
|
|
|
|
1,865
|
|
|
|
|
|
|
1,865
|
|
|||||||
Balances at December 31, 2012
|
27,499
|
|
|
433,195
|
|
|
166,766
|
|
|
(31,119
|
)
|
|
596,341
|
|
|||||
Comprehensive income
|
|
|
|
|
56,808
|
|
|
10,599
|
|
|
67,407
|
|
|||||||
Cash dividends declared and paid of $0.87 per share
|
|
|
|
|
(24,521
|
)
|
|
|
|
(24,521
|
)
|
||||||||
Issuance of common stock, net of issuance costs
|
2,214
|
|
|
51,711
|
|
|
|
|
|
|
53,925
|
|
|||||||
Shares issued — stock options
|
41
|
|
|
527
|
|
|
|
|
|
|
568
|
|
|||||||
Shares issued — directors' stock plans
|
13
|
|
|
292
|
|
|
|
|
|
|
305
|
|
|||||||
Shares issued — restricted stock performance units
|
23
|
|
|
(402
|
)
|
|
|
|
|
|
(379
|
)
|
|||||||
Share-based compensation
|
|
|
2,854
|
|
|
|
|
|
|
2,854
|
|
||||||||
Balances at December 31, 2013
|
$
|
29,790
|
|
|
$
|
488,177
|
|
|
$
|
199,053
|
|
|
$
|
(20,520
|
)
|
|
$
|
696,500
|
|
|
Years Ended December 31,
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
|
(In thousands)
|
||||||||||
Operating Activities
|
|
|
|
|
|
||||||
Net income
|
$
|
56,808
|
|
|
$
|
51,008
|
|
|
$
|
43,050
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Provision for loan losses
|
11,000
|
|
|
18,500
|
|
|
26,000
|
|
|||
Gains on sales of loans
|
(7,108
|
)
|
|
(9,645
|
)
|
|
(5,017
|
)
|
|||
Proceeds from sales of loans
|
218,237
|
|
|
314,521
|
|
|
224,341
|
|
|||
Loans originated for sale
|
(198,683
|
)
|
|
(303,723
|
)
|
|
(217,663
|
)
|
|||
Gain on sale of investment securities
|
(1,133
|
)
|
|
(34
|
)
|
|
—
|
|
|||
Net gains on sales of other real estate and repossessed assets
|
(2,943
|
)
|
|
(1,532
|
)
|
|
(2,208
|
)
|
|||
Net (gain) loss on disposal of premises and equipment and branch bank properties
|
(281
|
)
|
|
—
|
|
|
616
|
|
|||
Depreciation of premises and equipment
|
8,713
|
|
|
8,142
|
|
|
7,950
|
|
|||
Amortization of intangible assets
|
3,492
|
|
|
3,969
|
|
|
3,615
|
|
|||
Net amortization of premiums and discounts on investment securities
|
4,196
|
|
|
4,795
|
|
|
4,024
|
|
|||
Share-based compensation expense
|
2,854
|
|
|
1,865
|
|
|
1,517
|
|
|||
Deferred income tax
|
635
|
|
|
12,668
|
|
|
6,413
|
|
|||
Contributions to defined benefit pension plan
|
(15,000
|
)
|
|
(12,000
|
)
|
|
—
|
|
|||
Net decrease in interest receivable and other assets
|
6,478
|
|
|
4,295
|
|
|
10,747
|
|
|||
Net increase (decrease) in interest payable and other liabilities
|
2,414
|
|
|
2,337
|
|
|
(909
|
)
|
|||
Net Cash Provided by Operating Activities
|
89,679
|
|
|
95,166
|
|
|
102,476
|
|
|||
Investing Activities
|
|
|
|
|
|
||||||
Investment securities — available-for-sale:
|
|
|
|
|
|
||||||
Proceeds from maturities, calls and principal reductions
|
154,959
|
|
|
268,848
|
|
|
327,013
|
|
|||
Proceeds from sales and redemptions
|
38,028
|
|
|
—
|
|
|
—
|
|
|||
Purchases
|
(304,264
|
)
|
|
(191,689
|
)
|
|
(419,714
|
)
|
|||
Investment securities — held-to-maturity:
|
|
|
|
|
|
||||||
Proceeds from maturities, calls and principal reductions
|
65,790
|
|
|
55,352
|
|
|
52,115
|
|
|||
Purchases
|
(109,655
|
)
|
|
(102,034
|
)
|
|
(70,014
|
)
|
|||
Net increase in loans
|
(502,687
|
)
|
|
(330,760
|
)
|
|
(196,484
|
)
|
|||
Proceeds from sales of other real estate and repossessed assets
|
18,018
|
|
|
24,341
|
|
|
19,202
|
|
|||
Purchases of premises and equipment, net
|
(8,664
|
)
|
|
(10,303
|
)
|
|
(8,602
|
)
|
|||
Purchase of bank owned life insurance
|
—
|
|
|
—
|
|
|
(3,600
|
)
|
|||
Cash acquired, net of cash paid, in business combinations
|
—
|
|
|
339,372
|
|
|
—
|
|
|||
Net Cash Provided by (Used in) Investing Activities
|
(648,475
|
)
|
|
53,127
|
|
|
(300,084
|
)
|
|||
Financing Activities
|
|
|
|
|
|
||||||
Net increase in interest- and noninterest-bearing demand deposits and savings accounts
|
341,568
|
|
|
307,972
|
|
|
113,164
|
|
|||
Net decrease in time deposits
|
(140,626
|
)
|
|
(157,425
|
)
|
|
(78,072
|
)
|
|||
Net increase in short-term borrowings
|
16,965
|
|
|
6,677
|
|
|
61,083
|
|
|||
Repayment of FHLB advances
|
(34,289
|
)
|
|
(8,768
|
)
|
|
(31,073
|
)
|
|||
Cash dividends paid
|
(24,521
|
)
|
|
(22,566
|
)
|
|
(21,964
|
)
|
|||
Proceeds from issuance of common stock, net of issuance costs
|
53,925
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from directors' stock purchase plan and exercise of stock options
|
806
|
|
|
260
|
|
|
245
|
|
|||
Cash paid for payroll taxes upon conversion of restricted stock units
|
(379
|
)
|
|
(248
|
)
|
|
—
|
|
|||
Net Cash Provided by Financing Activities
|
213,449
|
|
|
125,902
|
|
|
43,383
|
|
|||
Net Increase (Decrease) in Cash and Cash Equivalents
|
(345,347
|
)
|
|
274,195
|
|
|
(154,225
|
)
|
|||
Cash and Cash Equivalents at Beginning of Year
|
656,135
|
|
|
381,940
|
|
|
536,165
|
|
|||
Cash and Cash Equivalents at End of Year
|
$
|
310,788
|
|
|
$
|
656,135
|
|
|
$
|
381,940
|
|
Supplemental Disclosures of Cash Flow Information
|
|
|
|
|
|
||||||
Interest paid
|
$
|
18,047
|
|
|
$
|
23,859
|
|
|
$
|
32,129
|
|
Federal income taxes paid
|
19,150
|
|
|
9,029
|
|
|
7,787
|
|
|||
Loans transferred to other real estate and repossessed assets
|
6,382
|
|
|
15,794
|
|
|
19,664
|
|
|||
Closed branch offices transferred to other real estate
|
382
|
|
|
—
|
|
|
—
|
|
|||
Business combinations:
|
|
|
|
|
|
||||||
Fair value of tangible assets acquired (noncash)
|
—
|
|
|
52,337
|
|
|
—
|
|
|||
Goodwill and identifiable intangible assets acquired
|
—
|
|
|
12,350
|
|
|
—
|
|
|||
Liabilities assumed
|
—
|
|
|
404,059
|
|
|
—
|
|
|
|
Years Ended December 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Balance at beginning of period
|
|
$
|
49,390
|
|
|
$
|
68,305
|
|
Additions, net of reductions*
|
|
(29
|
)
|
|
5,057
|
|
||
Accretion recognized in interest income
|
|
(16,876
|
)
|
|
(23,972
|
)
|
||
Reclassification from nonaccretable difference
|
|
125
|
|
|
—
|
|
||
Balance at end of period
|
|
$
|
32,610
|
|
|
$
|
49,390
|
|
*
|
Represents additions in 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)
|
||||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
||||||||
Government sponsored agencies
|
|
$
|
93,895
|
|
|
$
|
250
|
|
|
$
|
382
|
|
|
$
|
93,763
|
|
State and political subdivisions
|
|
42,450
|
|
|
1,355
|
|
|
7
|
|
|
43,798
|
|
||||
Residential mortgage-backed securities
|
|
303,495
|
|
|
968
|
|
|
5,097
|
|
|
299,366
|
|
||||
Collateralized mortgage obligations
|
|
182,128
|
|
|
452
|
|
|
1,639
|
|
|
180,941
|
|
||||
Corporate bonds
|
|
65,028
|
|
|
499
|
|
|
252
|
|
|
65,275
|
|
||||
Preferred stock
|
|
1,389
|
|
|
63
|
|
|
25
|
|
|
1,427
|
|
||||
Total
|
|
$
|
688,385
|
|
|
$
|
3,587
|
|
|
$
|
7,402
|
|
|
$
|
684,570
|
|
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
|
|
|
|
Investment Securities Held-to-Maturity
|
||||||||||||||
|
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
|
(In thousands)
|
||||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
||||||||
State and political subdivisions
|
|
$
|
263,405
|
|
|
$
|
5,462
|
|
|
$
|
6,846
|
|
|
$
|
262,021
|
|
Trust preferred securities
|
|
10,500
|
|
|
—
|
|
|
4,250
|
|
|
6,250
|
|
||||
Total
|
|
$
|
273,905
|
|
|
$
|
5,462
|
|
|
$
|
11,096
|
|
|
$
|
268,271
|
|
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
|
|
|
|
December 31, 2013
|
||||||
|
|
Amortized Cost
|
|
Fair Value
|
||||
|
|
(In thousands)
|
||||||
Investment Securities Available-for-Sale:
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
144,423
|
|
|
$
|
143,762
|
|
Due after one year through five years
|
|
436,081
|
|
|
434,027
|
|
||
Due after five years through ten years
|
|
101,624
|
|
|
100,642
|
|
||
Due after ten years
|
|
4,868
|
|
|
4,712
|
|
||
Preferred stock
|
|
1,389
|
|
|
1,427
|
|
||
Total
|
|
$
|
688,385
|
|
|
$
|
684,570
|
|
Investment Securities Held-to-Maturity:
|
|
|
|
|
||||
Due in one year or less
|
|
$
|
39,966
|
|
|
$
|
39,981
|
|
Due after one year through five years
|
|
106,380
|
|
|
107,688
|
|
||
Due after five years through ten years
|
|
74,759
|
|
|
75,563
|
|
||
Due after ten years
|
|
52,800
|
|
|
45,039
|
|
||
Total
|
|
$
|
273,905
|
|
|
$
|
268,271
|
|
|
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
||||||||||||
December 31, 2013
|
|
(In thousands)
|
||||||||||||||||||||||
Government sponsored agencies
|
|
$
|
47,352
|
|
|
$
|
205
|
|
|
$
|
14,031
|
|
|
$
|
177
|
|
|
$
|
61,383
|
|
|
$
|
382
|
|
State and political subdivisions
|
|
126,345
|
|
|
6,475
|
|
|
19,074
|
|
|
378
|
|
|
145,419
|
|
|
6,853
|
|
||||||
Residential mortgage-backed securities
|
|
274,076
|
|
|
5,097
|
|
|
—
|
|
|
—
|
|
|
274,076
|
|
|
5,097
|
|
||||||
Collateralized mortgage obligations
|
|
84,995
|
|
|
1,127
|
|
|
14,684
|
|
|
512
|
|
|
99,679
|
|
|
1,639
|
|
||||||
Corporate bonds
|
|
14,931
|
|
|
78
|
|
|
19,826
|
|
|
174
|
|
|
34,757
|
|
|
252
|
|
||||||
Trust preferred securities
|
|
—
|
|
|
—
|
|
|
6,250
|
|
|
4,250
|
|
|
6,250
|
|
|
4,250
|
|
||||||
Preferred stock
|
|
1,024
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
1,024
|
|
|
25
|
|
||||||
Total
|
|
$
|
548,723
|
|
|
$
|
13,007
|
|
|
$
|
73,865
|
|
|
$
|
5,491
|
|
|
$
|
622,588
|
|
|
$
|
18,498
|
|
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
|
|
|
|
December 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Commercial loan portfolio:
|
|
|
|
|
||||
Commercial
|
|
$
|
1,176,307
|
|
|
$
|
1,002,722
|
|
Commercial real estate
|
|
1,232,658
|
|
|
1,161,861
|
|
||
Real estate construction
|
|
89,795
|
|
|
62,689
|
|
||
Land development
|
|
20,066
|
|
|
37,548
|
|
||
Subtotal
|
|
2,518,826
|
|
|
2,264,820
|
|
||
Consumer loan portfolio:
|
|
|
|
|
||||
Residential mortgage
|
|
960,423
|
|
|
883,835
|
|
||
Consumer installment
|
|
644,769
|
|
|
546,036
|
|
||
Home equity
|
|
523,603
|
|
|
473,044
|
|
||
Subtotal
|
|
2,128,795
|
|
|
1,902,915
|
|
||
Total loans
|
|
$
|
4,647,621
|
|
|
$
|
4,167,735
|
|
|
|
Commercial
|
|
Commercial Real Estate
|
|
Real Estate
Construction
|
|
Land
Development
|
|
Total
|
||||||||||
|
|
(In thousands)
|
||||||||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Originated Portfolio:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Grades 1-5
|
|
$
|
1,024,461
|
|
|
$
|
991,964
|
|
|
$
|
75,696
|
|
|
$
|
6,874
|
|
|
$
|
2,098,995
|
|
Risk Grade 6
|
|
20,082
|
|
|
34,248
|
|
|
654
|
|
|
969
|
|
|
55,953
|
|
|||||
Risk Grade 7
|
|
29,776
|
|
|
30,377
|
|
|
738
|
|
|
3,128
|
|
|
64,019
|
|
|||||
Risk Grade 8
|
|
17,414
|
|
|
28,580
|
|
|
371
|
|
|
2,309
|
|
|
48,674
|
|
|||||
Risk Grade 9
|
|
960
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
978
|
|
|||||
Subtotal
|
|
1,092,693
|
|
|
1,085,187
|
|
|
77,459
|
|
|
13,280
|
|
|
2,268,619
|
|
|||||
Acquired Portfolio:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk Grades 1-5
|
|
73,763
|
|
|
133,653
|
|
|
12,336
|
|
|
4,667
|
|
|
224,419
|
|
|||||
Risk Grade 6
|
|
5,472
|
|
|
5,022
|
|
|
—
|
|
|
—
|
|
|
10,494
|
|
|||||
Risk Grade 7
|
|
852
|
|
|
7,792
|
|
|
—
|
|
|
—
|
|
|
8,644
|
|
|||||
Risk Grade 8
|
|
3,527
|
|
|
1,004
|
|
|
—
|
|
|
2,119
|
|
|
6,650
|
|
|||||
Risk Grade 9
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Subtotal
|
|
83,614
|
|
|
147,471
|
|
|
12,336
|
|
|
6,786
|
|
|
250,207
|
|
|||||
Total
|
|
$
|
1,176,307
|
|
|
$
|
1,232,658
|
|
|
$
|
89,795
|
|
|
$
|
20,066
|
|
|
$
|
2,518,826
|
|
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
|
|
|
|
Residential Mortgage
|
|
Consumer
Installment
|
|
Home Equity
|
|
Total
|
||||||||
|
|
(In thousands)
|
||||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
||||||||
Originated Loans:
|
|
|
|
|
|
|
|
|
||||||||
Performing
|
|
$
|
934,747
|
|
|
$
|
642,370
|
|
|
$
|
488,996
|
|
|
$
|
2,066,113
|
|
Nonperforming
|
|
14,134
|
|
|
676
|
|
|
3,382
|
|
|
18,192
|
|
||||
Subtotal
|
|
948,881
|
|
|
643,046
|
|
|
492,378
|
|
|
2,084,305
|
|
||||
Acquired Loans:
|
|
|
|
|
|
|
|
|
||||||||
Performing
|
|
11,481
|
|
|
1,723
|
|
|
31,182
|
|
|
44,386
|
|
||||
Nonperforming
|
|
61
|
|
|
—
|
|
|
43
|
|
|
104
|
|
||||
Subtotal
|
|
11,542
|
|
|
1,723
|
|
|
31,225
|
|
|
44,490
|
|
||||
Total
|
|
$
|
960,423
|
|
|
$
|
644,769
|
|
|
$
|
523,603
|
|
|
$
|
2,128,795
|
|
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
|
|
|
|
December 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Nonaccrual loans:
|
|
|
|
|
||||
Commercial
|
|
$
|
18,374
|
|
|
$
|
14,601
|
|
Commercial real estate
|
|
28,598
|
|
|
37,660
|
|
||
Real estate construction
|
|
371
|
|
|
1,217
|
|
||
Land development
|
|
2,309
|
|
|
4,184
|
|
||
Residential mortgage
|
|
8,921
|
|
|
10,164
|
|
||
Consumer installment
|
|
676
|
|
|
739
|
|
||
Home equity
|
|
2,648
|
|
|
2,733
|
|
||
Total nonaccrual loans
|
|
61,897
|
|
|
71,298
|
|
||
Accruing loans contractually past due 90 days or more as to interest or principal payments:
|
|
|
|
|
||||
Commercial
|
|
536
|
|
|
—
|
|
||
Commercial real estate
|
|
190
|
|
|
87
|
|
||
Residential mortgage
|
|
537
|
|
|
1,503
|
|
||
Home equity
|
|
734
|
|
|
769
|
|
||
Total accruing loans contractually past due 90 days or more as to interest or principal payments
|
|
1,997
|
|
|
2,359
|
|
||
Nonperforming TDRs:
|
|
|
|
|
||||
Commercial loan portfolio
|
|
13,414
|
|
|
13,876
|
|
||
Consumer loan portfolio
|
|
4,676
|
|
|
3,321
|
|
||
Total nonperforming TDRs
|
|
18,090
|
|
|
17,197
|
|
||
Total nonperforming loans
|
|
$
|
81,984
|
|
|
$
|
90,854
|
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Valuation
Allowance
|
|
Average
Annual
Recorded
Investment
|
|
Interest Income
Recognized
While on
Impaired Status
|
||||||||||
|
|
(In thousands)
|
||||||||||||||||||
Impaired loans with a valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
$
|
2,517
|
|
|
$
|
2,656
|
|
|
$
|
728
|
|
|
$
|
5,398
|
|
|
$
|
—
|
|
Commercial real estate
|
|
2,576
|
|
|
2,965
|
|
|
353
|
|
|
9,725
|
|
|
—
|
|
|||||
Real estate construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
719
|
|
|
—
|
|
|||||
Residential mortgage
|
|
17,408
|
|
|
17,408
|
|
|
510
|
|
|
17,689
|
|
|
1,123
|
|
|||||
Subtotal
|
|
22,501
|
|
|
23,029
|
|
|
1,591
|
|
|
33,587
|
|
|
1,123
|
|
|||||
Impaired loans with no related valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
38,838
|
|
|
44,377
|
|
|
—
|
|
|
24,231
|
|
|
990
|
|
|||||
Commercial real estate
|
|
48,220
|
|
|
61,444
|
|
|
—
|
|
|
41,100
|
|
|
1,348
|
|
|||||
Real estate construction
|
|
371
|
|
|
478
|
|
|
—
|
|
|
314
|
|
|
—
|
|
|||||
Land development
|
|
7,170
|
|
|
11,817
|
|
|
—
|
|
|
9,075
|
|
|
303
|
|
|||||
Residential mortgage
|
|
8,921
|
|
|
8,921
|
|
|
—
|
|
|
9,147
|
|
|
—
|
|
|||||
Consumer installment
|
|
676
|
|
|
676
|
|
|
—
|
|
|
653
|
|
|
—
|
|
|||||
Home equity
|
|
2,648
|
|
|
2,648
|
|
|
—
|
|
|
2,914
|
|
|
—
|
|
|||||
Subtotal
|
|
106,844
|
|
|
130,361
|
|
|
—
|
|
|
87,434
|
|
|
2,641
|
|
|||||
Total impaired loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
41,355
|
|
|
47,033
|
|
|
728
|
|
|
29,629
|
|
|
990
|
|
|||||
Commercial real estate
|
|
50,796
|
|
|
64,409
|
|
|
353
|
|
|
50,825
|
|
|
1,348
|
|
|||||
Real estate construction
|
|
371
|
|
|
478
|
|
|
—
|
|
|
370
|
|
|
—
|
|
|||||
Land development
|
|
7,170
|
|
|
11,817
|
|
|
—
|
|
|
9,794
|
|
|
303
|
|
|||||
Residential mortgage
|
|
26,329
|
|
|
26,329
|
|
|
510
|
|
|
26,836
|
|
|
1,123
|
|
|||||
Consumer installment
|
|
676
|
|
|
676
|
|
|
—
|
|
|
653
|
|
|
—
|
|
|||||
Home equity
|
|
2,648
|
|
|
2,648
|
|
|
—
|
|
|
2,914
|
|
|
—
|
|
|||||
Total
|
|
$
|
129,345
|
|
|
$
|
153,390
|
|
|
$
|
1,591
|
|
|
$
|
121,021
|
|
|
$
|
3,764
|
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Valuation
Allowance
|
|
Average
Annual
Recorded
Investment
|
|
Interest
Income
Recognized
While on
Impaired Status
|
||||||||||
|
|
(In thousands)
|
||||||||||||||||||
Impaired loans with a valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
$
|
6,368
|
|
|
$
|
6,818
|
|
|
$
|
1,966
|
|
|
$
|
6,108
|
|
|
$
|
—
|
|
Commercial real estate
|
|
17,267
|
|
|
17,607
|
|
|
5,359
|
|
|
19,788
|
|
|
—
|
|
|||||
Real estate construction
|
|
171
|
|
|
171
|
|
|
75
|
|
|
130
|
|
|
—
|
|
|||||
Land development
|
|
254
|
|
|
254
|
|
|
50
|
|
|
1,278
|
|
|
—
|
|
|||||
Residential mortgage
|
|
18,901
|
|
|
18,901
|
|
|
658
|
|
|
21,307
|
|
|
1,353
|
|
|||||
Subtotal
|
|
42,961
|
|
|
43,751
|
|
|
8,108
|
|
|
48,611
|
|
|
1,353
|
|
|||||
Impaired loans with no related valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
23,230
|
|
|
27,959
|
|
|
—
|
|
|
21,651
|
|
|
964
|
|
|||||
Commercial real estate
|
|
37,223
|
|
|
48,531
|
|
|
—
|
|
|
38,342
|
|
|
1,020
|
|
|||||
Real estate construction
|
|
1,046
|
|
|
1,116
|
|
|
—
|
|
|
543
|
|
|
—
|
|
|||||
Land development
|
|
10,867
|
|
|
15,112
|
|
|
—
|
|
|
7,811
|
|
|
387
|
|
|||||
Residential mortgage
|
|
10,164
|
|
|
10,164
|
|
|
—
|
|
|
12,057
|
|
|
—
|
|
|||||
Consumer installment
|
|
739
|
|
|
739
|
|
|
—
|
|
|
1,093
|
|
|
—
|
|
|||||
Home equity
|
|
2,733
|
|
|
2,733
|
|
|
—
|
|
|
2,922
|
|
|
—
|
|
|||||
Subtotal
|
|
86,002
|
|
|
106,354
|
|
|
—
|
|
|
84,419
|
|
|
2,371
|
|
|||||
Total impaired loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
29,598
|
|
|
34,777
|
|
|
1,966
|
|
|
27,759
|
|
|
964
|
|
|||||
Commercial real estate
|
|
54,490
|
|
|
66,138
|
|
|
5,359
|
|
|
58,130
|
|
|
1,020
|
|
|||||
Real estate construction
|
|
1,217
|
|
|
1,287
|
|
|
75
|
|
|
673
|
|
|
—
|
|
|||||
Land development
|
|
11,121
|
|
|
15,366
|
|
|
50
|
|
|
9,089
|
|
|
387
|
|
|||||
Residential mortgage
|
|
29,065
|
|
|
29,065
|
|
|
658
|
|
|
33,364
|
|
|
1,353
|
|
|||||
Consumer installment
|
|
739
|
|
|
739
|
|
|
—
|
|
|
1,093
|
|
|
—
|
|
|||||
Home equity
|
|
2,733
|
|
|
2,733
|
|
|
—
|
|
|
2,922
|
|
|
—
|
|
|||||
Total
|
|
$
|
128,963
|
|
|
$
|
150,105
|
|
|
$
|
8,108
|
|
|
$
|
133,030
|
|
|
$
|
3,724
|
|
|
|
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, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Originated Portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
|
$
|
4,748
|
|
|
$
|
865
|
|
|
$
|
536
|
|
|
$
|
18,374
|
|
|
$
|
24,523
|
|
|
$
|
1,068,170
|
|
|
$
|
1,092,693
|
|
Commercial real estate
|
|
8,560
|
|
|
1,604
|
|
|
190
|
|
|
28,598
|
|
|
38,952
|
|
|
1,046,235
|
|
|
1,085,187
|
|
|||||||
Real estate construction
|
|
—
|
|
|
4,107
|
|
|
—
|
|
|
371
|
|
|
4,478
|
|
|
72,981
|
|
|
77,459
|
|
|||||||
Land development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,309
|
|
|
2,309
|
|
|
10,971
|
|
|
13,280
|
|
|||||||
Residential mortgage
|
|
2,191
|
|
|
103
|
|
|
537
|
|
|
8,921
|
|
|
11,752
|
|
|
937,129
|
|
|
948,881
|
|
|||||||
Consumer installment
|
|
2,630
|
|
|
359
|
|
|
—
|
|
|
676
|
|
|
3,665
|
|
|
639,381
|
|
|
643,046
|
|
|||||||
Home equity
|
|
1,452
|
|
|
278
|
|
|
734
|
|
|
2,648
|
|
|
5,112
|
|
|
487,266
|
|
|
492,378
|
|
|||||||
Total
|
|
$
|
19,581
|
|
|
$
|
7,316
|
|
|
$
|
1,997
|
|
|
$
|
61,897
|
|
|
$
|
90,791
|
|
|
$
|
4,262,133
|
|
|
$
|
4,352,924
|
|
Acquired Portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,656
|
|
|
$
|
—
|
|
|
$
|
5,656
|
|
|
$
|
77,958
|
|
|
$
|
83,614
|
|
Commercial real estate
|
|
—
|
|
|
133
|
|
|
1,695
|
|
|
—
|
|
|
1,828
|
|
|
145,643
|
|
|
147,471
|
|
|||||||
Real estate construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,336
|
|
|
12,336
|
|
|||||||
Land development
|
|
—
|
|
|
—
|
|
|
2,332
|
|
|
—
|
|
|
2,332
|
|
|
4,454
|
|
|
6,786
|
|
|||||||
Residential mortgage
|
|
—
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
61
|
|
|
11,481
|
|
|
11,542
|
|
|||||||
Consumer installment
|
|
3
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
1,669
|
|
|
1,723
|
|
|||||||
Home equity
|
|
394
|
|
|
—
|
|
|
43
|
|
|
—
|
|
|
437
|
|
|
30,788
|
|
|
31,225
|
|
|||||||
Total
|
|
$
|
397
|
|
|
$
|
184
|
|
|
$
|
9,787
|
|
|
$
|
—
|
|
|
$
|
10,368
|
|
|
$
|
284,329
|
|
|
$
|
294,697
|
|
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
|
|
|
|
Performing TDRs
|
|
Non-Performing TDRs
|
|
Nonaccrual TDRs
|
|
Total
|
||||||||
|
|
(In thousands)
|
||||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
||||||||
Commercial loan portfolio
|
|
$
|
26,839
|
|
|
$
|
13,414
|
|
|
$
|
31,961
|
|
|
$
|
72,214
|
|
Consumer loan portfolio
|
|
12,732
|
|
|
4,676
|
|
|
5,321
|
|
|
22,729
|
|
||||
Total
|
|
$
|
39,571
|
|
|
$
|
18,090
|
|
|
$
|
37,282
|
|
|
$
|
94,943
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
||||||||
Commercial loan portfolio
|
|
$
|
15,789
|
|
|
$
|
13,876
|
|
|
$
|
42,711
|
|
|
$
|
72,376
|
|
Consumer loan portfolio
|
|
15,580
|
|
|
3,321
|
|
|
4,783
|
|
|
23,684
|
|
||||
Total
|
|
$
|
31,369
|
|
|
$
|
17,197
|
|
|
$
|
47,494
|
|
|
$
|
96,060
|
|
|
|
Number
of Loans
|
|
Pre-
Modification
Recorded
Investment
|
|
Post-
Modification
Recorded
Investment
|
||||
|
|
(Dollars in thousands)
|
||||||||
Twelve months ended December 31, 2013
|
|
|
|
|
|
|
||||
Commercial loan portfolio:
|
|
|
|
|
|
|
||||
Commercial
|
|
57
|
|
$
|
12,123
|
|
|
$
|
12,123
|
|
Commercial real estate
|
|
49
|
|
16,222
|
|
|
16,222
|
|
||
Real estate construction
|
|
4
|
|
575
|
|
|
575
|
|
||
Land development
|
|
4
|
|
1,958
|
|
|
1,958
|
|
||
Subtotal — commercial loan portfolio
|
|
114
|
|
30,878
|
|
|
30,878
|
|
||
Consumer loan portfolio (residential mortgage)
|
|
85
|
|
4,943
|
|
|
4,840
|
|
||
Total
|
|
199
|
|
$
|
35,821
|
|
|
$
|
35,718
|
|
Twelve months ended December 31, 2012 (As Revised)
|
|
|
|
|
|
|
||||
Commercial loan portfolio:
|
|
|
|
|
|
|
||||
Commercial
|
|
91
|
|
$
|
13,720
|
|
|
$
|
13,720
|
|
Commercial real estate
|
|
77
|
|
17,328
|
|
|
17,328
|
|
||
Land development
|
|
11
|
|
5,494
|
|
|
5,494
|
|
||
Subtotal — commercial loan portfolio
|
|
179
|
|
36,542
|
|
|
36,542
|
|
||
Consumer loan portfolio (residential mortgage)
|
|
121
|
|
9,944
|
|
|
9,684
|
|
||
Total
|
|
300
|
|
$
|
46,486
|
|
|
$
|
46,226
|
|
Twelve months ended December 31, 2011 (As Revised)
|
|
|
|
|
|
|
||||
Commercial loan portfolio:
|
|
|
|
|
|
|
||||
Commercial
|
|
20
|
|
$
|
4,806
|
|
|
$
|
4,806
|
|
Commercial real estate
|
|
26
|
|
6,316
|
|
|
6,316
|
|
||
Subtotal — commercial loan portfolio
|
|
46
|
|
11,122
|
|
|
11,122
|
|
||
Consumer loan portfolio (residential mortgage)
|
|
139
|
|
11,028
|
|
|
10,575
|
|
||
Total
|
|
185
|
|
$
|
22,150
|
|
|
$
|
21,697
|
|
|
|
Years Ended December 31,
|
||||||||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||||||||
|
|
|
(As Revised)
|
|
(As Revised)
|
|||||||||||||
|
|
Number of Loans
|
|
Principal Balance at Year End
|
|
Number of Loans
|
|
Principal Balance at Year End
|
|
Number of Loans
|
|
Principal Balance at Year End
|
||||||
|
|
|
|
|
|
|
||||||||||||
|
|
(Dollars in thousands)
|
||||||||||||||||
Commercial loan portfolio:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
23
|
|
$
|
2,745
|
|
|
10
|
|
$
|
1,692
|
|
|
7
|
|
$
|
2,659
|
|
Commercial real estate
|
|
8
|
|
4,278
|
|
|
15
|
|
4,993
|
|
|
9
|
|
1,828
|
|
|||
Real estate construction
|
|
3
|
|
371
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|||
Land development
|
|
2
|
|
1,526
|
|
|
4
|
|
1,157
|
|
|
—
|
|
—
|
|
|||
Subtotal — commercial loan portfolio
|
|
36
|
|
8,920
|
|
|
29
|
|
7,842
|
|
|
16
|
|
4,487
|
|
|||
Consumer loan portfolio (residential mortgage)
|
|
22
|
|
1,826
|
|
|
13
|
|
1,673
|
|
|
21
|
|
1,964
|
|
|||
Total
|
|
58
|
|
$
|
10,746
|
|
|
42
|
|
$
|
9,515
|
|
|
37
|
|
$
|
6,451
|
|
|
|
Commercial
Loan
Portfolio
|
|
Consumer
Loan
Portfolio
|
|
Unallocated
|
|
Total
|
||||||||
|
|
(In thousands)
|
||||||||||||||
Changes in allowance for loan losses for the year ended December 31, 2013:
|
|
|
|
|
||||||||||||
Beginning balance
|
|
$
|
49,975
|
|
|
$
|
29,333
|
|
|
$
|
5,183
|
|
|
$
|
84,491
|
|
Provision for loan losses
|
|
3,895
|
|
|
7,843
|
|
|
(738
|
)
|
|
11,000
|
|
||||
Charge-offs
|
|
(12,280
|
)
|
|
(8,866
|
)
|
|
—
|
|
|
(21,146
|
)
|
||||
Recoveries
|
|
2,892
|
|
|
1,835
|
|
|
—
|
|
|
4,727
|
|
||||
Ending balance
|
|
$
|
44,482
|
|
|
$
|
30,145
|
|
|
$
|
4,445
|
|
|
$
|
79,072
|
|
Allowance for loan losses balance at December 31, 2013 attributable to:
|
|
|
|
|
||||||||||||
Loans individually evaluated for impairment
|
|
$
|
1,081
|
|
|
$
|
510
|
|
|
$
|
—
|
|
|
$
|
1,591
|
|
Loans collectively evaluated for impairment
|
|
43,401
|
|
|
29,135
|
|
|
4,445
|
|
|
76,981
|
|
||||
Loans acquired with deteriorated credit quality
|
|
—
|
|
|
500
|
|
|
—
|
|
|
500
|
|
||||
Total
|
|
$
|
44,482
|
|
|
$
|
30,145
|
|
|
$
|
4,445
|
|
|
$
|
79,072
|
|
Recorded investment (loan balance) at December 31, 2013:
|
|
|
|
|
||||||||||||
Loans individually evaluated for impairment
|
|
$
|
89,905
|
|
|
$
|
17,408
|
|
|
$
|
—
|
|
|
$
|
107,313
|
|
Loans collectively evaluated for impairment
|
|
2,178,714
|
|
|
2,066,897
|
|
|
—
|
|
|
4,245,611
|
|
||||
Loans acquired with deteriorated credit quality
|
|
250,207
|
|
|
44,490
|
|
|
—
|
|
|
294,697
|
|
||||
Total
|
|
$
|
2,518,826
|
|
|
$
|
2,128,795
|
|
|
$
|
—
|
|
|
$
|
4,647,621
|
|
|
|
Commercial
Loan
Portfolio
|
|
Consumer
Loan
Portfolio
|
|
Unallocated
|
|
Total
|
||||||||
|
|
(In thousands)
|
||||||||||||||
Changes in allowance for loan losses for the year ended December 31, 2012:
|
|
|
|
|
||||||||||||
Beginning balance
|
|
$
|
55,645
|
|
|
$
|
29,166
|
|
|
$
|
3,522
|
|
|
$
|
88,333
|
|
Provision for loan losses
|
|
7,061
|
|
|
9,778
|
|
|
1,661
|
|
|
18,500
|
|
||||
Charge-offs
|
|
(15,723
|
)
|
|
(11,713
|
)
|
|
—
|
|
|
(27,436
|
)
|
||||
Recoveries
|
|
2,992
|
|
|
2,102
|
|
|
—
|
|
|
5,094
|
|
||||
Ending balance
|
|
$
|
49,975
|
|
|
$
|
29,333
|
|
|
$
|
5,183
|
|
|
$
|
84,491
|
|
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
|
|
|
|
December 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Cost:
|
|
|
|
|
||||
Land and land improvements
|
|
$
|
21,749
|
|
|
$
|
21,588
|
|
Buildings
|
|
91,920
|
|
|
88,577
|
|
||
Equipment
|
|
61,900
|
|
|
58,500
|
|
||
Total cost
|
|
175,569
|
|
|
168,665
|
|
||
Accumulated depreciation
|
|
(100,261
|
)
|
|
(93,207
|
)
|
||
Total premises and equipment
|
|
$
|
75,308
|
|
|
$
|
75,458
|
|
|
|
December 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Other intangible assets:
|
|
|
|
|
||||
Core deposit intangible assets
|
|
$
|
10,001
|
|
|
$
|
11,910
|
|
Mortgage servicing rights (MSRs)
|
|
3,423
|
|
|
3,478
|
|
||
Total other intangible assets
|
|
$
|
13,424
|
|
|
$
|
15,388
|
|
|
|
December 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Gross original amount
|
|
$
|
18,659
|
|
|
$
|
18,659
|
|
Accumulated amortization
|
|
8,658
|
|
|
6,749
|
|
||
Carrying amount
|
|
$
|
10,001
|
|
|
$
|
11,910
|
|
Amortization expense for the year ended December 31
|
|
$
|
1,909
|
|
|
$
|
1,569
|
|
|
|
December 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Net carrying value of MSRs
|
|
$
|
3,423
|
|
|
$
|
3,478
|
|
Fair value of MSRs
|
|
$
|
6,878
|
|
|
$
|
4,716
|
|
Loans serviced for others that have servicing rights capitalized
|
|
$
|
886,730
|
|
|
$
|
906,314
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
(In thousands)
|
||||||||||
Balance at beginning of year
|
|
$
|
3,478
|
|
|
$
|
3,593
|
|
|
$
|
3,782
|
|
Additions
|
|
1,528
|
|
|
2,285
|
|
|
1,566
|
|
|||
Amortization
|
|
(1,583
|
)
|
|
(2,400
|
)
|
|
(1,755
|
)
|
|||
Balance at end of year
|
|
$
|
3,423
|
|
|
$
|
3,478
|
|
|
$
|
3,593
|
|
|
|
December 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Noninterest-bearing demand
|
|
$
|
1,227,768
|
|
|
$
|
1,085,857
|
|
Interest-bearing demand
|
|
1,169,076
|
|
|
1,055,052
|
|
||
Savings
|
|
1,393,610
|
|
|
1,307,977
|
|
||
Time deposits over $100,000
|
|
529,265
|
|
|
531,666
|
|
||
Other time deposits
|
|
802,666
|
|
|
940,891
|
|
||
Total deposits
|
|
$
|
5,122,385
|
|
|
$
|
4,921,443
|
|
|
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
(Dollars in thousands)
|
||||||||||
Securities sold under agreements to repurchase:
|
|
|
|
|
|
|
||||||
Ending balance at December 31
|
|
$
|
327,428
|
|
|
$
|
310,463
|
|
|
$
|
303,786
|
|
Weighted average interest rate at December 31
|
|
0.15
|
%
|
|
0.14
|
%
|
|
0.12
|
%
|
|||
Average amount outstanding during year
|
|
$
|
337,649
|
|
|
$
|
312,729
|
|
|
$
|
287,176
|
|
Weighted average interest rate during year
|
|
0.14
|
%
|
|
0.14
|
%
|
|
0.18
|
%
|
|||
Maximum balance outstanding at any month-end
|
|
$
|
357,976
|
|
|
$
|
335,193
|
|
|
$
|
313,626
|
|
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||||||
|
|
Ending
Balance
|
|
Weighted Average
Interest Rate
At Year-End
|
|
Ending
Balance
|
|
Weighted
Average
Interest Rate
At Year-End
|
||||||
|
|
(Dollars in thousands)
|
||||||||||||
Fixed-rate FHLB advances
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
34,289
|
|
|
2.69
|
%
|
|
|
December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
(In thousands)
|
||||||||||
Net unrealized gains (losses) on investment securities — available-for-sale, net of related tax expense (benefit) of ($1,335) at December 31, 2013, $2,301 at December 31, 2012 and $1,796 at December 31, 2011
|
|
$
|
(2,480
|
)
|
|
$
|
4,274
|
|
|
$
|
3,336
|
|
Pension and other postretirement benefits adjustment, net of related tax benefit of $9,714 at December 31, 2013, $19,058 at December 31, 2012 and $15,435 at December 31, 2011
|
|
(18,040
|
)
|
|
(35,393
|
)
|
|
(28,665
|
)
|
|||
Accumulated other comprehensive loss
|
|
$
|
(20,520
|
)
|
|
$
|
(31,119
|
)
|
|
$
|
(25,329
|
)
|
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 Level 1 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 and preferred stock. 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, trust preferred investment securities, 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)
|
||||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
||||||||
Investment securities — available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
Government sponsored agencies
|
|
$
|
—
|
|
|
$
|
93,763
|
|
|
$
|
—
|
|
|
$
|
93,763
|
|
State and political subdivisions
|
|
—
|
|
|
43,798
|
|
|
—
|
|
|
43,798
|
|
||||
Residential mortgage-backed securities
|
|
—
|
|
|
299,366
|
|
|
—
|
|
|
299,366
|
|
||||
Collateralized mortgage obligations
|
|
—
|
|
|
180,941
|
|
|
—
|
|
|
180,941
|
|
||||
Corporate bonds
|
|
—
|
|
|
65,275
|
|
|
—
|
|
|
65,275
|
|
||||
Preferred stock
|
|
—
|
|
|
1,427
|
|
|
—
|
|
|
1,427
|
|
||||
Total investment securities — available-for-sale
|
|
—
|
|
|
684,570
|
|
|
—
|
|
|
684,570
|
|
||||
Loans held-for-sale
|
|
—
|
|
|
5,219
|
|
|
—
|
|
|
5,219
|
|
||||
Total assets measured at fair value on a recurring basis
|
|
$
|
—
|
|
|
$
|
689,789
|
|
|
$
|
—
|
|
|
$
|
689,789
|
|
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
|
|
|
|
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)
|
||||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
||||||||
Impaired originated loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,852
|
|
|
$
|
28,852
|
|
Other real estate/repossessed assets
|
|
—
|
|
|
—
|
|
|
9,776
|
|
|
9,776
|
|
||||
Total
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
38,628
|
|
|
$
|
38,628
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
||||||||
Impaired originated loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51,694
|
|
|
$
|
51,694
|
|
Other real estate/repossessed assets
|
|
—
|
|
|
—
|
|
|
18,469
|
|
|
18,469
|
|
||||
Total
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70,163
|
|
|
$
|
70,163
|
|
|
Level in Fair Value Measurement Hierarchy
|
|
December 31, 2013
|
|
December 31, 2012
|
||||||||||||
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
|||||||||
|
|
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
Level 1
|
|
$
|
310,788
|
|
|
$
|
310,788
|
|
|
$
|
656,135
|
|
|
$
|
656,135
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale
|
Level 2
|
|
684,570
|
|
|
684,570
|
|
|
582,054
|
|
|
582,054
|
|
||||
Available-for-sale
|
NA
|
|
—
|
|
|
—
|
|
|
4,755
|
|
|
4,755
|
|
||||
Held-to-maturity
|
Level 2
|
|
263,405
|
|
|
262,021
|
|
|
229,977
|
|
|
229,922
|
|
||||
Held-to-maturity
|
Level 3
|
|
10,500
|
|
|
6,250
|
|
|
—
|
|
|
—
|
|
||||
Nonmarketable equity securities
|
NA
|
|
25,572
|
|
|
25,572
|
|
|
25,572
|
|
|
25,572
|
|
||||
Loans held-for-sale
|
Level 2
|
|
5,219
|
|
|
5,219
|
|
|
17,665
|
|
|
17,665
|
|
||||
Net loans
|
Level 3
|
|
4,568,549
|
|
|
4,575,532
|
|
|
4,083,244
|
|
|
4,093,880
|
|
||||
Interest receivable
|
Level 2
|
|
15,748
|
|
|
15,748
|
|
|
14,933
|
|
|
14,933
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||
Deposits without defined maturities
|
Level 2
|
|
$
|
3,790,454
|
|
|
$
|
3,790,454
|
|
|
$
|
3,448,886
|
|
|
$
|
3,448,886
|
|
Time deposits
|
Level 3
|
|
1,331,931
|
|
|
1,340,746
|
|
|
1,472,557
|
|
|
1,489,072
|
|
||||
Interest payable
|
Level 2
|
|
868
|
|
|
868
|
|
|
1,501
|
|
|
1,501
|
|
||||
Short-term borrowings
|
Level 2
|
|
327,428
|
|
|
327,428
|
|
|
310,463
|
|
|
310,463
|
|
||||
FHLB advances
|
Level 2
|
|
—
|
|
|
—
|
|
|
34,289
|
|
|
34,835
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
(In thousands)
|
||||||||||
Service charges and fees on deposit accounts
|
|
$
|
21,939
|
|
|
$
|
19,581
|
|
|
$
|
18,452
|
|
Wealth management revenue
|
|
13,989
|
|
|
11,763
|
|
|
11,104
|
|
|||
Electronic banking fees
|
|
12,213
|
|
|
9,793
|
|
|
9,127
|
|
|||
Mortgage banking revenue
|
|
5,336
|
|
|
6,597
|
|
|
3,881
|
|
|||
Other fees for customer services
|
|
3,288
|
|
|
2,598
|
|
|
2,451
|
|
|||
Insurance commissions
|
|
1,650
|
|
|
1,836
|
|
|
1,413
|
|
|||
Gain on sale of investment securities
|
|
1,133
|
|
|
34
|
|
|
—
|
|
|||
Gain on sale of merchant card services
|
|
—
|
|
|
1,280
|
|
|
—
|
|
|||
Other
|
|
861
|
|
|
1,202
|
|
|
462
|
|
|||
Total noninterest income
|
|
$
|
60,409
|
|
|
$
|
54,684
|
|
|
$
|
46,890
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
(In thousands)
|
||||||||||
Salaries and wages
|
|
$
|
78,014
|
|
|
$
|
68,668
|
|
|
$
|
61,301
|
|
Employee benefits
|
|
18,405
|
|
|
15,715
|
|
|
13,192
|
|
|||
Occupancy
|
|
13,934
|
|
|
12,413
|
|
|
12,974
|
|
|||
Equipment and software
|
|
13,734
|
|
|
13,112
|
|
|
11,935
|
|
|||
Outside processing and service fees
|
|
11,134
|
|
|
10,679
|
|
|
9,583
|
|
|||
FDIC insurance premiums
|
|
4,362
|
|
|
4,320
|
|
|
5,375
|
|
|||
Professional fees
|
|
3,771
|
|
|
4,347
|
|
|
4,128
|
|
|||
Postage and express mail
|
|
3,051
|
|
|
3,149
|
|
|
3,147
|
|
|||
Advertising and marketing
|
|
2,971
|
|
|
3,106
|
|
|
2,850
|
|
|||
Donations
|
|
2,829
|
|
|
1,892
|
|
|
1,537
|
|
|||
Training, travel and other employee expenses
|
|
2,512
|
|
|
2,530
|
|
|
2,246
|
|
|||
Telephone
|
|
1,940
|
|
|
1,693
|
|
|
1,631
|
|
|||
Intangible asset amortization
|
|
1,909
|
|
|
1,569
|
|
|
1,860
|
|
|||
Supplies
|
|
1,670
|
|
|
1,567
|
|
|
1,690
|
|
|||
Credit-related expenses
|
|
707
|
|
|
3,816
|
|
|
9,535
|
|
|||
Other
|
|
4,005
|
|
|
3,345
|
|
|
1,509
|
|
|||
Total operating expenses
|
|
$
|
164,948
|
|
|
$
|
151,921
|
|
|
$
|
144,493
|
|
|
|
Pension Plan
|
|
Postretirement Plan
|
||||||||||||
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
|
(In thousands)
|
||||||||||||||
Projected benefit obligation:
|
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning of year
|
|
$
|
115,177
|
|
|
$
|
100,216
|
|
|
$
|
3,243
|
|
|
$
|
3,290
|
|
Service cost
|
|
1,247
|
|
|
1,168
|
|
|
18
|
|
|
—
|
|
||||
Interest cost
|
|
4,603
|
|
|
4,795
|
|
|
143
|
|
|
146
|
|
||||
Plan amendments
|
|
—
|
|
|
—
|
|
|
720
|
|
|
—
|
|
||||
Net actuarial (gain) loss
|
|
(10,926
|
)
|
|
13,200
|
|
|
(428
|
)
|
|
25
|
|
||||
Benefits paid
|
|
(4,187
|
)
|
|
(4,202
|
)
|
|
(219
|
)
|
|
(218
|
)
|
||||
Benefit obligation at end of year
|
|
105,914
|
|
|
115,177
|
|
|
3,477
|
|
|
3,243
|
|
||||
Fair value of plan assets:
|
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at beginning of year
|
|
98,187
|
|
|
82,521
|
|
|
—
|
|
|
—
|
|
||||
Actual return on plan assets
|
|
19,829
|
|
|
7,868
|
|
|
—
|
|
|
—
|
|
||||
Employer contributions
|
|
15,000
|
|
|
12,000
|
|
|
219
|
|
|
218
|
|
||||
Benefits paid
|
|
(4,187
|
)
|
|
(4,202
|
)
|
|
(219
|
)
|
|
(218
|
)
|
||||
Fair value of plan assets at end of year
|
|
128,829
|
|
|
98,187
|
|
|
—
|
|
|
—
|
|
||||
Funded (unfunded) status at December 31
|
|
$
|
22,915
|
|
|
$
|
(16,990
|
)
|
|
$
|
(3,477
|
)
|
|
$
|
(3,243
|
)
|
Accumulated benefit obligation
|
|
$
|
99,551
|
|
|
$
|
108,078
|
|
|
$
|
3,477
|
|
|
$
|
3,243
|
|
|
|
Pension Plan
|
|
Postretirement Plan
|
||||||||||||||
|
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
||||||
Discount rate used in determining benefit obligation — December 31
|
|
5.00
|
%
|
|
4.08
|
%
|
|
4.90
|
%
|
|
4.27
|
%
|
|
4.08
|
%
|
|
4.90
|
%
|
Discount rate used in determining expense
|
|
4.08
|
|
|
4.90
|
|
|
5.65
|
|
|
4.08
|
|
|
4.90
|
|
|
5.65
|
|
Expected long-term return on Pension Plan assets
|
|
7.00
|
|
|
7.00
|
|
|
7.00
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Rate of compensation increase used in determining benefit obligation — December 31
|
|
3.50
|
|
|
3.50
|
|
|
3.50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Rate of compensation increase used in determining pension expense
|
|
3.50
|
|
|
3.50
|
|
|
3.50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Year 1 increase in cost of postretirement benefits
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.5
|
|
|
8.0
|
|
|
9.0
|
|
|
|
Pension Plan
|
|
Postretirement Plan
|
||||||||||||||||||||
|
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
Service cost
|
|
$
|
1,247
|
|
|
$
|
1,168
|
|
|
$
|
1,133
|
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
|
4,603
|
|
|
4,795
|
|
|
4,779
|
|
|
143
|
|
|
146
|
|
|
167
|
|
||||||
Expected return on plan assets
|
|
(7,794
|
)
|
|
(6,925
|
)
|
|
(6,328
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service credit
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
343
|
|
|
(300
|
)
|
|
(325
|
)
|
||||||
Amortization of net actuarial loss (gain)
|
|
3,670
|
|
|
2,382
|
|
|
1,073
|
|
|
(73
|
)
|
|
(28
|
)
|
|
(31
|
)
|
||||||
Net cost (income)
|
|
$
|
1,725
|
|
|
$
|
1,419
|
|
|
$
|
655
|
|
|
$
|
431
|
|
|
$
|
(182
|
)
|
|
$
|
(189
|
)
|
|
|
Pension Plan
|
|
Postretirement Plan
|
||||
|
|
(In thousands)
|
||||||
2014
|
|
$
|
5,132
|
|
|
$
|
310
|
|
2015
|
|
5,508
|
|
|
320
|
|
||
2016
|
|
6,101
|
|
|
330
|
|
||
2017
|
|
6,068
|
|
|
330
|
|
||
2018
|
|
6,038
|
|
|
330
|
|
||
2019 - 2023
|
|
34,127
|
|
|
1,600
|
|
||
Total
|
|
$
|
62,974
|
|
|
$
|
3,220
|
|
|
|
One Percentage-Point
|
||||||
|
|
Increase
|
|
Decrease
|
||||
|
|
(In thousands)
|
||||||
Effect on total of service and interest cost components in 2013
|
|
$
|
12
|
|
|
$
|
(11
|
)
|
Effect on postretirement benefit obligation as of December 31, 2013
|
|
273
|
|
|
(245
|
)
|
Asset Category
|
|
Quoted Prices
In Active
Markets for
Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
|
|
(In thousands)
|
||||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
||||||||
Cash
|
|
$
|
902
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
902
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. large- and mid-cap stocks
(a)
|
|
56,015
|
|
|
—
|
|
|
—
|
|
|
56,015
|
|
||||
U.S. small-cap mutual funds
|
|
5,608
|
|
|
—
|
|
|
—
|
|
|
5,608
|
|
||||
International large-cap mutual funds
|
|
15,504
|
|
|
—
|
|
|
—
|
|
|
15,504
|
|
||||
Emerging markets mutual funds
|
|
6,360
|
|
|
—
|
|
|
—
|
|
|
6,360
|
|
||||
Chemical Financial Corporation common stock
|
|
6,672
|
|
|
—
|
|
|
—
|
|
|
6,672
|
|
||||
Debt securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and government sponsored agency bonds and notes
|
|
4,600
|
|
|
2,574
|
|
|
—
|
|
|
7,174
|
|
||||
Corporate bonds
(b)
|
|
—
|
|
|
8,693
|
|
|
—
|
|
|
8,693
|
|
||||
Mutual funds
(c)
|
|
21,901
|
|
|
—
|
|
|
—
|
|
|
21,901
|
|
||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
117,562
|
|
|
$
|
11,267
|
|
|
$
|
—
|
|
|
$
|
128,829
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
||||||||
Cash
|
|
$
|
1,708
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,708
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. large- and mid-cap stocks
(a)
|
|
44,158
|
|
|
—
|
|
|
—
|
|
|
44,158
|
|
||||
U.S. small-cap mutual funds
|
|
4,076
|
|
|
—
|
|
|
—
|
|
|
4,076
|
|
||||
International large-cap mutual funds
|
|
9,009
|
|
|
—
|
|
|
—
|
|
|
9,009
|
|
||||
Emerging markets mutual funds
|
|
6,291
|
|
|
—
|
|
|
—
|
|
|
6,291
|
|
||||
Chemical Financial Corporation common stock
|
|
5,005
|
|
|
—
|
|
|
—
|
|
|
5,005
|
|
||||
Debt securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and government sponsored agency bonds and notes
|
|
4,876
|
|
|
1,056
|
|
|
—
|
|
|
5,932
|
|
||||
Corporate bonds
(b)
|
|
—
|
|
|
15,853
|
|
|
—
|
|
|
15,853
|
|
||||
Mutual funds
(c)
|
|
6,005
|
|
|
—
|
|
|
—
|
|
|
6,005
|
|
||||
Other
|
|
150
|
|
|
—
|
|
|
—
|
|
|
150
|
|
||||
Total
|
|
$
|
81,278
|
|
|
$
|
16,909
|
|
|
$
|
—
|
|
|
$
|
98,187
|
|
(a)
|
Comprised of common stocks and mutual funds traded on U.S. Exchanges whose issuers had market capitalizations exceeding
$3 billion
.
|
(b)
|
Comprised of investment grade bonds of U.S. issuers from diverse industries.
|
(c)
|
Comprised primarily of fixed-income bonds issued by the U.S. Treasury and government sponsored agencies and bonds of U.S. and foreign issuers from diverse industries.
|
|
|
Pension
Plan
|
|
Postretirement
Plan
|
|
Supplemental
Plan
|
|
Total
|
||||||||
|
|
(In thousands)
|
||||||||||||||
Accumulated other comprehensive income (loss) at beginning of year
|
|
$
|
(35,288
|
)
|
|
$
|
283
|
|
|
$
|
(388
|
)
|
|
$
|
(35,393
|
)
|
Comprehensive income (loss) adjustment:
|
|
|
|
|
|
|
|
|
||||||||
Prior service costs (credits)
|
|
(1
|
)
|
|
84
|
|
|
—
|
|
|
83
|
|
||||
Net actuarial gain
|
|
17,310
|
|
|
231
|
|
|
58
|
|
|
17,599
|
|
||||
Plan changes
|
|
—
|
|
|
(329
|
)
|
|
—
|
|
|
(329
|
)
|
||||
Comprehensive income (loss) adjustment
|
|
17,309
|
|
|
(14
|
)
|
|
58
|
|
|
17,353
|
|
||||
Accumulated other comprehensive income (loss) at end of year
|
|
$
|
(17,979
|
)
|
|
$
|
269
|
|
|
$
|
(330
|
)
|
|
$
|
(18,040
|
)
|
|
|
Pension
Plan
|
|
Postretirement
Plan
|
|
Supplemental
Plan
|
|
Total
|
||||||||
|
|
(In thousands)
|
||||||||||||||
Prior service (costs) credits
|
|
$
|
1
|
|
|
$
|
(84
|
)
|
|
$
|
—
|
|
|
$
|
(83
|
)
|
Net gain (loss)
|
|
(1,403
|
)
|
|
67
|
|
|
(76
|
)
|
|
(1,412
|
)
|
||||
Total
|
|
$
|
(1,402
|
)
|
|
$
|
(17
|
)
|
|
$
|
(76
|
)
|
|
$
|
(1,495
|
)
|
|
|
Options Outstanding
|
|
Options Exercisable
|
|||||||||||||||
Range of
Exercise
Prices
Per Share
|
|
Number
Outstanding
|
|
Weighted
Average
Exercise
Price
Per Share
|
|
Weighted
Average
Contractual
Term
(In Years)
|
|
Number
Exercisable
|
|
Weighted
Average
Exercise
Price
Per Share
|
|
Weighted
Average
Contractual
Term
(In Years)
|
|||||||
$19.43 - 21.10
|
|
|
122,253
|
|
|
$
|
20.37
|
|
|
6.56
|
|
91,525
|
|
|
$
|
20.51
|
|
|
6.31
|
23.78 - 25.14
|
|
|
692,450
|
|
|
24.57
|
|
|
7.11
|
|
309,098
|
|
|
24.50
|
|
|
5.01
|
||
32.28
|
|
|
130,400
|
|
|
32.28
|
|
|
1.97
|
|
130,400
|
|
|
32.28
|
|
|
1.97
|
||
39.69
|
|
|
128,887
|
|
|
39.69
|
|
|
0.95
|
|
128,887
|
|
|
39.69
|
|
|
0.95
|
||
$19.43 - 39.69
|
|
|
1,073,990
|
|
|
$
|
26.84
|
|
|
5.68
|
|
659,910
|
|
|
$
|
28.45
|
|
|
3.80
|
|
|
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, 2011
|
|
126,670
|
|
|
$
|
23.29
|
|
|
$
|
6.99
|
|
|
757,665
|
|
|
$
|
29.42
|
|
Activity during 2011:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Granted
|
|
99,172
|
|
|
19.95
|
|
|
6.12
|
|
|
99,172
|
|
|
19.95
|
|
|||
Exercised
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Vested
|
|
(62,959
|
)
|
|
23.27
|
|
|
6.76
|
|
|
—
|
|
|
—
|
|
|||
Expired or forfeited
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41,718
|
)
|
|
28.96
|
|
|||
Outstanding at December 31, 2011
|
|
162,883
|
|
|
21.27
|
|
|
6.55
|
|
|
815,119
|
|
|
28.29
|
|
|||
Activity during 2012:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Granted
|
|
229,763
|
|
|
23.78
|
|
|
7.08
|
|
|
229,763
|
|
|
23.78
|
|
|||
Exercised
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,532
|
)
|
|
19.97
|
|
|||
Vested
|
|
(76,103
|
)
|
|
21.55
|
|
|
6.63
|
|
|
—
|
|
|
—
|
|
|||
Expired or forfeited
|
|
(1,778
|
)
|
|
21.48
|
|
|
6.62
|
|
|
(46,128
|
)
|
|
28.78
|
|
|||
Outstanding at December 31, 2012
|
|
314,765
|
|
|
23.03
|
|
|
6.92
|
|
|
997,222
|
|
|
27.24
|
|
|||
Activity during 2013:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Granted
|
|
244,719
|
|
|
25.14
|
|
|
7.40
|
|
|
244,719
|
|
|
25.14
|
|
|||
Exercised
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(100,145
|
)
|
|
22.87
|
|
|||
Vested
|
|
(127,443
|
)
|
|
22.94
|
|
|
6.92
|
|
|
—
|
|
|
—
|
|
|||
Expired or forfeited
|
|
(17,961
|
)
|
|
23.34
|
|
|
6.98
|
|
|
(67,806
|
)
|
|
32.27
|
|
|||
Outstanding at December 31, 2013
|
|
414,080
|
|
|
$
|
24.29
|
|
|
$
|
7.19
|
|
|
1,073,990
|
|
|
$
|
26.84
|
|
Exercisable/vested at December 31, 2013
|
|
|
|
|
|
|
|
659,910
|
|
|
$
|
28.45
|
|
|
|
2013
|
|
2012
|
|
2011
|
|||
Expected dividend yield
|
|
3.50
|
%
|
|
3.60
|
%
|
|
3.50
|
%
|
Risk-free interest rate
|
|
1.34
|
%
|
|
1.18
|
%
|
|
2.76
|
%
|
Expected stock price volatility
|
|
42.1
|
%
|
|
44.4
|
%
|
|
42.0
|
%
|
Expected life of options — in years
|
|
7.00
|
|
|
6.11
|
|
|
6.10
|
|
Weighted average fair value per share
|
|
$7.40
|
|
$7.08
|
|
$6.12
|
|
|
Number of
Units
|
|
Weighted
Average
Grant Date
Fair Value
Per Unit
|
|||
Outstanding at January 1, 2011
|
|
80,852
|
|
|
$
|
22.94
|
|
Activity during 2011:
|
|
|
|
|
|||
Granted
|
|
52,087
|
|
|
17.87
|
|
|
Converted into shares of common stock
|
|
(2,427
|
)
|
|
23.70
|
|
|
Forfeited/expired
|
|
—
|
|
|
—
|
|
|
Outstanding at December 31, 2011
|
|
130,512
|
|
|
20.90
|
|
|
Activity during 2012:
|
|
|
|
|
|||
Granted
|
|
69,772
|
|
|
22.20
|
|
|
Converted into shares of common stock
|
|
(35,346
|
)
|
|
23.27
|
|
|
Forfeited/expired
|
|
(8,428
|
)
|
|
23.05
|
|
|
Outstanding at December 31, 2012
|
|
156,510
|
|
|
20.83
|
|
|
Activity during 2013:
|
|
|
|
|
|||
Granted
|
|
71,768
|
|
|
23.42
|
|
|
Converted into shares of common stock
|
|
(36,416
|
)
|
|
22.44
|
|
|
Forfeited/expired
|
|
(3,330
|
)
|
|
21.67
|
|
|
Outstanding at December 31, 2013
|
|
188,532
|
|
|
$
|
21.49
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
(Dollars in thousands)
|
||||||||||
Tax at statutory rate
|
|
$
|
28,388
|
|
|
$
|
25,133
|
|
|
$
|
21,088
|
|
Changes resulting from:
|
|
|
|
|
|
|
||||||
Tax-exempt interest income
|
|
(2,746
|
)
|
|
(2,524
|
)
|
|
(2,569
|
)
|
|||
Income tax credits
|
|
(1,615
|
)
|
|
(1,561
|
)
|
|
(1,374
|
)
|
|||
Other, net
|
|
273
|
|
|
(248
|
)
|
|
55
|
|
|||
Provision for federal income taxes
|
|
$
|
24,300
|
|
|
$
|
20,800
|
|
|
$
|
17,200
|
|
Effective federal income tax rate
|
|
30.0
|
%
|
|
29.0
|
%
|
|
28.5
|
%
|
|
|
December 31,
|
||||||
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Deferred tax assets:
|
|
|
|
|
||||
Allowance for loan losses
|
|
$
|
27,675
|
|
|
$
|
29,572
|
|
Acquisition-related fair value adjustments
|
|
8,699
|
|
|
9,498
|
|
||
Accrued expenses not currently deductible
|
|
6,288
|
|
|
4,518
|
|
||
Other
|
|
11,663
|
|
|
11,756
|
|
||
Total deferred tax assets
|
|
54,325
|
|
|
55,344
|
|
||
Deferred tax liabilities:
|
|
|
|
|
||||
Defined benefit pension plan
|
|
8,020
|
|
|
—
|
|
||
Goodwill
|
|
4,680
|
|
|
4,177
|
|
||
Other
|
|
6,140
|
|
|
9,339
|
|
||
Total deferred tax liabilities
|
|
18,840
|
|
|
13,516
|
|
||
Net deferred tax assets
|
|
$
|
35,485
|
|
|
$
|
41,828
|
|
|
|
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)
|
|||||||||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporation
|
|
$
|
649,836
|
|
|
14.0
|
%
|
|
$
|
371,465
|
|
|
8.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Chemical Bank
|
|
579,494
|
|
|
12.5
|
|
|
370,881
|
|
|
8.0
|
|
|
$
|
463,601
|
|
|
10.0
|
%
|
||
Tier 1 Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporation
|
|
591,535
|
|
|
12.7
|
|
|
185,732
|
|
|
4.0
|
|
|
N/A
|
|
|
N/A
|
|
|||
Chemical Bank
|
|
521,283
|
|
|
11.2
|
|
|
185,440
|
|
|
4.0
|
|
|
278,160
|
|
|
6.0
|
|
|||
Leverage Ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Corporation
|
|
591,535
|
|
|
9.9
|
|
|
239,010
|
|
|
4.0
|
|
|
N/A
|
|
|
N/A
|
|
|||
Chemical Bank
|
|
521,283
|
|
|
8.7
|
|
|
238,884
|
|
|
4.0
|
|
|
298,605
|
|
|
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
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
(In thousands, except per share data)
|
||||||||||
Numerator for both basic and diluted earnings per common share, net income
|
|
$
|
56,808
|
|
|
$
|
51,008
|
|
|
$
|
43,050
|
|
Denominator for basic earnings per common share, weighted average common shares outstanding
|
|
28,183
|
|
|
27,492
|
|
|
27,455
|
|
|||
Weighted average common stock equivalents
|
|
169
|
|
|
91
|
|
|
51
|
|
|||
Denominator for diluted earnings per common share
|
|
28,352
|
|
|
27,583
|
|
|
27,506
|
|
|||
Net income per common share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
2.02
|
|
|
$
|
1.86
|
|
|
$
|
1.57
|
|
Diluted
|
|
2.00
|
|
|
1.85
|
|
|
1.57
|
|
|
|
December 31,
|
||||||
Condensed Statements of Financial Position
|
|
2013
|
|
2012
|
||||
|
|
(In thousands)
|
||||||
Assets:
|
|
|
|
|
||||
Cash at subsidiary bank
|
|
$
|
65,358
|
|
|
$
|
5,960
|
|
Investment securities available-for-sale
|
|
—
|
|
|
4,755
|
|
||
Investment in subsidiary bank
|
|
625,156
|
|
|
579,448
|
|
||
Premises and equipment
|
|
3,902
|
|
|
4,309
|
|
||
Goodwill
|
|
1,092
|
|
|
1,092
|
|
||
Other assets
|
|
3,309
|
|
|
2,598
|
|
||
Total assets
|
|
$
|
698,817
|
|
|
$
|
598,162
|
|
Liabilities and Shareholders' Equity:
|
|
|
|
|
||||
Other liabilities
|
|
$
|
2,317
|
|
|
$
|
1,821
|
|
Shareholders' equity
|
|
696,500
|
|
|
596,341
|
|
||
Total liabilities and shareholders' equity
|
|
$
|
698,817
|
|
|
$
|
598,162
|
|
|
|
Years Ended December 31,
|
||||||||||
Condensed Statements of Income
|
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
(In thousands)
|
||||||||||
Income:
|
|
|
|
|
|
|
||||||
Cash dividends from subsidiary bank
|
|
$
|
24,488
|
|
|
$
|
27,550
|
|
|
$
|
22,000
|
|
Other income
|
|
390
|
|
|
92
|
|
|
—
|
|
|||
Total income
|
|
24,878
|
|
|
27,642
|
|
|
22,000
|
|
|||
Operating expenses
|
|
4,735
|
|
|
3,773
|
|
|
3,350
|
|
|||
Income before income taxes and equity in undistributed net income of subsidiary bank
|
|
20,143
|
|
|
23,869
|
|
|
18,650
|
|
|||
Federal income tax benefit
|
|
1,556
|
|
|
1,311
|
|
|
1,171
|
|
|||
Equity in undistributed net income of subsidiary bank
|
|
35,109
|
|
|
25,828
|
|
|
23,229
|
|
|||
Net income
|
|
$
|
56,808
|
|
|
$
|
51,008
|
|
|
$
|
43,050
|
|
|
|
Years Ended December 31,
|
||||||||||
Condensed Statements of Cash Flows
|
|
2013
|
|
2012
|
|
2011
|
||||||
|
|
(In thousands)
|
||||||||||
Operating Activities:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
56,808
|
|
|
$
|
51,008
|
|
|
$
|
43,050
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Share-based compensation expense
|
|
2,854
|
|
|
1,865
|
|
|
1,517
|
|
|||
Gain on sale of available-for-sale investment securities
|
|
(245
|
)
|
|
—
|
|
|
—
|
|
|||
Depreciation of premises and equipment
|
|
416
|
|
|
463
|
|
|
456
|
|
|||
Equity in undistributed net income of subsidiary bank
|
|
(35,109
|
)
|
|
(25,828
|
)
|
|
(23,229
|
)
|
|||
Net (increase) decrease in other assets
|
|
(711
|
)
|
|
1,033
|
|
|
(975
|
)
|
|||
Net increase in other liabilities
|
|
563
|
|
|
394
|
|
|
256
|
|
|||
Net cash provided by operating activities
|
|
24,576
|
|
|
28,935
|
|
|
21,075
|
|
|||
Investing Activities:
|
|
|
|
|
|
|
||||||
Purchase of available-for-sale investment securities
|
|
—
|
|
|
(4,755
|
)
|
|
—
|
|
|||
Proceeds from redemption of available-for-sale investment securities
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|||
Purchases of premises and equipment, net
|
|
(9
|
)
|
|
(147
|
)
|
|
(365
|
)
|
|||
Net cash provided by (used in) investing activities
|
|
4,991
|
|
|
(4,902
|
)
|
|
(365
|
)
|
|||
Financing Activities:
|
|
|
|
|
|
|
||||||
Cash dividends paid
|
|
(24,521
|
)
|
|
(22,566
|
)
|
|
(21,964
|
)
|
|||
Proceeds from issuance of common stock, net of issuance costs
|
|
53,925
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from directors' stock purchase plan and exercise of stock options
|
|
806
|
|
|
260
|
|
|
245
|
|
|||
Cash paid for payroll taxes upon conversion of restricted stock units
|
|
(379
|
)
|
|
(248
|
)
|
|
—
|
|
|||
Net cash provided by (used in) financing activities
|
|
29,831
|
|
|
(22,554
|
)
|
|
(21,719
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
59,398
|
|
|
1,479
|
|
|
(1,009
|
)
|
|||
Cash and cash equivalents at beginning of year
|
|
5,960
|
|
|
4,481
|
|
|
5,490
|
|
|||
Cash and cash equivalents at end of year
|
|
$
|
65,358
|
|
|
$
|
5,960
|
|
|
$
|
4,481
|
|
|
|
2013
|
||||||||||||||||||
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
||||||||||
|
|
(In thousands, except per share data)
|
||||||||||||||||||
Interest income
|
|
$
|
52,379
|
|
|
$
|
52,781
|
|
|
$
|
53,578
|
|
|
$
|
55,323
|
|
|
$
|
214,061
|
|
Interest expense
|
|
4,727
|
|
|
4,385
|
|
|
4,284
|
|
|
4,018
|
|
|
17,414
|
|
|||||
Net interest income
|
|
47,652
|
|
|
48,396
|
|
|
49,294
|
|
|
51,305
|
|
|
196,647
|
|
|||||
Provision for loan losses
|
|
3,000
|
|
|
3,000
|
|
|
3,000
|
|
|
2,000
|
|
|
11,000
|
|
|||||
Noninterest income
|
|
16,239
|
|
|
15,948
|
|
|
14,644
|
|
|
13,578
|
|
|
60,409
|
|
|||||
Operating expenses
|
|
41,957
|
|
|
41,041
|
|
|
39,545
|
|
|
42,405
|
|
|
164,948
|
|
|||||
Income before income taxes
|
|
18,934
|
|
|
20,303
|
|
|
21,393
|
|
|
20,478
|
|
|
81,108
|
|
|||||
Federal income tax expense
|
|
5,700
|
|
|
6,100
|
|
|
6,400
|
|
|
6,100
|
|
|
24,300
|
|
|||||
Net income
|
|
$
|
13,234
|
|
|
$
|
14,203
|
|
|
$
|
14,993
|
|
|
$
|
14,378
|
|
|
$
|
56,808
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
0.48
|
|
|
$
|
0.52
|
|
|
$
|
0.54
|
|
|
$
|
0.48
|
|
|
$
|
2.02
|
|
Diluted
|
|
0.48
|
|
|
0.51
|
|
|
0.53
|
|
|
0.48
|
|
|
2.00
|
|
|||||
Cash dividends declared per common share
|
|
0.21
|
|
|
0.21
|
|
|
0.22
|
|
|
0.23
|
|
|
0.87
|
|
|
|
2012
|
||||||||||||||||||
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
||||||||||
|
|
(In thousands, except per share data)
|
||||||||||||||||||
Interest income
|
|
$
|
52,664
|
|
|
$
|
52,467
|
|
|
$
|
52,501
|
|
|
$
|
53,126
|
|
|
$
|
210,758
|
|
Interest expense
|
|
6,469
|
|
|
6,021
|
|
|
5,591
|
|
|
5,132
|
|
|
23,213
|
|
|||||
Net interest income
|
|
46,195
|
|
|
46,446
|
|
|
46,910
|
|
|
47,994
|
|
|
187,545
|
|
|||||
Provision for loan losses
|
|
5,000
|
|
|
4,000
|
|
|
4,500
|
|
|
5,000
|
|
|
18,500
|
|
|||||
Noninterest income
|
|
13,325
|
|
|
13,944
|
|
|
12,719
|
|
|
14,696
|
|
|
54,684
|
|
|||||
Operating expenses
|
|
36,971
|
|
|
36,199
|
|
|
36,723
|
|
|
42,028
|
|
|
151,921
|
|
|||||
Income before income taxes
|
|
17,549
|
|
|
20,191
|
|
|
18,406
|
|
|
15,662
|
|
|
71,808
|
|
|||||
Federal income tax expense
|
|
5,175
|
|
|
6,325
|
|
|
5,300
|
|
|
4,000
|
|
|
20,800
|
|
|||||
Net income
|
|
$
|
12,374
|
|
|
$
|
13,866
|
|
|
$
|
13,106
|
|
|
$
|
11,662
|
|
|
$
|
51,008
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
0.45
|
|
|
$
|
0.50
|
|
|
$
|
0.48
|
|
|
$
|
0.42
|
|
|
$
|
1.86
|
|
Diluted
|
|
0.45
|
|
|
0.50
|
|
|
0.48
|
|
|
0.42
|
|
|
1.85
|
|
|||||
Cash dividends declared per common share
|
|
0.20
|
|
|
0.20
|
|
|
0.21
|
|
|
0.21
|
|
|
0.82
|
|
|
|
|
|
|
|
/s/ David B. Ramaker
|
|
/s/ Lori A. Gwizdala
|
David B. Ramaker
|
|
Lori A. Gwizdala
|
Chairman, Chief Executive Officer and President
|
|
Executive Vice President, Chief Financial Officer and Treasurer
|
|
|
|
February 26, 2014
|
|
February 26, 2014
|
|
|
Equity Compensation Plan Information
|
||||||||
Plan category
|
|
Number of Securities to be Issued upon Exercise of Outstanding Options,
Warrants and Rights
(a)
|
|
Weighted-Average
Exercise Price of
Outstanding Options,
Warrants and Rights
(b)
|
|
Number of Securities
Remaining Available for Future Issuance under Equity Compensation Plans
(3)
(excluding Securities Reflected in Column (a))
(c)
|
||||
Equity compensation plans approved by security holders
(1)
|
|
1,073,990
|
|
|
$
|
26.84
|
|
|
1,003,135
|
|
Equity compensation plans not approved by security holders
(2)
|
|
—
|
|
|
—
|
|
|
78,983
|
|
|
Total
|
|
1,073,990
|
|
|
$
|
26.84
|
|
|
1,082,118
|
|
(1)
|
Consists of the Chemical Financial Corporation Stock Incentive Plan of 1997 (1997 Plan), the Chemical Financial Corporation Stock Incentive Plan of 2006 (2006 Plan), the Chemical Financial Corporation Stock Incentive Plan of 2012 (2012 Plan) and the Chemical Financial Corporation Directors' Deferred Stock Plan. Stock options may no longer be issued under either the 1997 Plan or 2006 Plan.
|
(2)
|
Consists of the Chemical Financial Corporation 2001 Stock Purchase Plan for Subsidiary and Community Bank Directors (Stock Purchase Plan). The Stock Purchase Plan became effective on March 25, 2002 and was designed to provide non-employee community advisory directors of Chemical Bank, who are neither directors nor employees of the Corporation, the option of receiving their fees in shares of the Corporation's common stock. The Stock Purchase Plan provides for a maximum of 175,000 shares of the Corporation's common stock, subject to adjustment for certain changes in the capital structure of the Corporation as defined in the Stock Purchase Plan, to be available under the Stock Purchase Plan. Community advisory directors who elect to participate in the Stock Purchase Plan may elect to contribute to the Stock Purchase Plan fifty percent or one hundred percent of their retainer fees, meeting fees and committee fees, earned as community advisory directors of Chemical Bank. Contributions to the Stock Purchase Plan are made by Chemical Bank on behalf of each electing participant. Stock Purchase Plan participants may terminate their participation in the Stock Purchase Plan, at any time, by written notice of withdrawal to the Corporation. Participants will cease to be eligible to participate in the Stock Purchase Plan when they cease to serve as community advisory directors of Chemical Bank. Shares are distributed to participants annually.
|
(3)
|
The number of shares reflected in column (c) in the table above with respect to the 2012 Plan (673,801 shares), the Directors' Deferred Stock Plan (329,334 shares) and the Stock Purchase Plan (
78,983
) represent shares that may be issued other than upon the exercise of an option, warrant or right. Each plan listed above contains customary anti-dilution provisions that are applicable in the event of a stock split or certain other changes in the capitalization of Chemical Financial Corporation.
|
(2)
|
Financial Statement Schedules.
The schedules for the Corporation are omitted because of the absence of conditions under which they are required, or because the information is set forth in the consolidated financial statements or the notes thereto.
|
(3)
|
Exhibits.
The following lists the Exhibits to the Annual Report on Form 10-K:
|
Number
|
|
Exhibit
|
2.1
|
|
Agreement and Plan of Merger, dated January 7, 2010. Previously filed as Exhibit 2.1 to the registrant's Current Report on Form 8-K dated January 7, 2010, filed with the SEC on January 8, 2010. Here incorporated by reference.
|
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.
|
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.
|
4.3
|
|
Long-Term Debt. The registrant has outstanding long-term debt which at the time of this report does not exceed 10% of the registrant's total consolidated assets. The registrant agrees to furnish copies of the agreements defining the rights of holders of such long-term debt to the SEC upon request.
|
10.1
|
|
Amended and Restated Chemical Financial Corporation Stock Incentive Plan of 2006.* Previously filed as Exhibit 10.1 to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, filed with the SEC on August 3, 2011. Here incorporated by reference.
|
10.2
|
|
Chemical Financial Corporation Deferred Compensation Plan for Directors.* Previously filed as Exhibit 10.2 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2011, filed with the SEC on February 24, 2012. Here incorporated by reference.
|
10.3
|
|
Chemical Financial Corporation Stock Incentive Plan of 1997.* Previously filed as Exhibit 10.3 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2011, filed with the SEC on February 24, 2012. Here incorporated by reference.
|
10.4
|
|
Chemical Financial Corporation Deferred Compensation Plan.* Previously filed as Exhibit 10.1 to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, filed with the SEC on April 30, 2013. Here incorporated by reference.
|
10.5
|
|
Chemical Financial Corporation Supplemental Retirement Income Plan.* Previously filed as Exhibit 10.5 to the registrant's Registration Statement on Form S-4, filed with the SEC on February 19, 2010. Here incorporated by reference.
|
10.6
|
|
Chemical Financial Corporation Stock Incentive Plan of 2012.* Previously filed as Appendix A to the registrant's definitive proxy statement for the registrant's 2012 Annual Meeting of Shareholders, filed with the SEC on March 1, 2012. Here incorporated by reference.
|
10.7
|
|
Chemical Financial Corporation 2001 Stock Purchase Plan for Subsidiary and Community Bank Directors.* Previously filed as Exhibit 4.3 to the registrant's Registration Statement on Form S-8, filed with the SEC on March 25, 2002. Here incorporated by reference.
|
10.8
|
|
Chemical Financial Corporation Directors' Deferred Stock Plan.*
|
21
|
|
Subsidiaries.
|
23.1
|
|
Consent of KPMG LLP.
|
23.2
|
|
Consent of Andrews Hooper Pavlik PLC.
|
24
|
|
Powers of Attorney.
|
31.1
|
|
Certification of Chief Executive Officer.
|
31.2
|
|
Certification of Chief Financial Officer.
|
32
|
|
Certification pursuant to 18 U.S.C. §1350.
|
99.1
|
|
Chemical Financial Corporation 2001 Stock Purchase Plan for Subsidiary and Community Bank Directors Audited Financial Statements and Notes.
|
99.2
|
|
Chemical Financial Corporation Directors' Deferred Stock Plan Audited Financial Statements and Notes.
|
101.1
|
|
Interactive Data File.
|
*
|
These agreements are management contracts or compensation plans or arrangements required to be filed as Exhibits to this Form 10-K.
|
(a)
|
No matter may be presented for shareholder action at an annual or special meeting of shareholders unless such matter is: (i) specified in the notice of the meeting (or any supplement to the notice) given by or at the direction of the Board of Directors; (ii) otherwise presented at the meeting by or at the direction of the Board of Directors; (iii) properly presented for action at the meeting by a shareholder in accordance with the notice provisions set forth in this Section and any other applicable requirements; or (iv) a procedural matter presented, or accepted for presentation, by the Chairman in his or her sole discretion.
|
(b)
|
For a matter to be properly presented by a shareholder, the shareholder must have given timely notice of the matter in writing to the Secretary of the corporation. To be timely, the notice must be delivered to or mailed to and received at the principal executive offices of the corporation not less than 120 calendar days prior to the date corresponding to the date of the corporation’s proxy statement or notice of meeting released to shareholders in connection with the last preceding annual meeting of shareholders in the case of an annual meeting (unless the corporation did not hold an annual meeting within the last year, or if the date of the upcoming annual meeting changed by more than thirty days from the date of the last preceding meeting, then the notice must be delivered or mailed and received not more than ten days after the earlier of the date of the notice of the meeting or public disclosure of the date of the meeting), and not more than ten days after the earlier of the date of the notice of the meeting or public disclosure of the date of the meeting in the case of a special meeting. The notice by the shareholder must set forth: (i) a brief description of the matter the shareholder desires to present for shareholder action; (ii) the name and record address of the shareholder proposing the matter for shareholder action; (iii) the class and number of shares of capital stock of the corporation that are beneficially owned by the shareholder; and (iv) any material interest of the shareholder in the matter proposed for shareholder action. For purposes of this Section, “public disclosure” means disclosure in a press release reported by the Dow Jones News Service, Associated Press or other comparable national financial news service or in a document publicly filed by the corporation with the Securities and Exchange Commission pursuant to Section 13, 14 or 15 of the Securities Exchange Act of 1934, as amended.
|
(c)
|
Except to the extent that a shareholder proposal submitted pursuant to this Section is not made available at the time of mailing, the notice of the purposes of the meeting shall include the name and address of and the number of shares of the voting security held by the proponent of each shareholder proposal.
|
(d)
|
Notwithstanding the above, if the shareholder desires to require the corporation to include the shareholder’s proposal in the corporation’s proxy materials, matters and proposals submitted for inclusion in the corporation’s proxy materials shall be governed by the solicitation rules and regulations of the Securities Exchange Act of 1934, as amended, including without limitation Rule 14a-8.
|
(a)
|
Nominations of candidates for election to the Board of Directors of the corporation at any annual meeting of shareholders or at any special meeting of shareholders called for election of directors (an “Election Meeting”) may be made by the Board of Directors or by a shareholder of record of shares of a class entitled to vote at such Election Meeting.
|
(b)
|
Nominations made by the Board of Directors shall be made at a meeting of the Board of Directors, or by written consent of directors in lieu of a meeting, not less than ten days prior to the date of an Election Meeting; provided, that approval by the Board of Directors of the corporation’s proxy statement with respect to an Election Meeting in which nominees for director are named shall constitute the nominations of the Board of Directors.
|
(c)
|
A shareholder of record of shares of a class entitled to vote at an Election Meeting may make a nomination at an Election Meeting if, and only if, such shareholder shall have first delivered, not less than 120 days prior to the date of the Election Meeting in the case of an annual meeting, and not more than seven days following the date of notice of the Election Meeting in the case of a special meeting, a notice to the Secretary of the corporation setting forth with
|
(d)
|
If the chairman of the Election Meeting determines that a nomination was not made in accordance with the foregoing procedures, such nomination shall be void and all votes cast in favor of election of a person so nominated shall be disregarded.
|
(c)
|
recommend to shareholders the sale, lease or exchange of all or substantially all of the corporation’s property and assets;
|
(d)
|
recommend to shareholders a dissolution of the corporation or revocation of a dissolution;
|
(g)
|
fix the compensation of the directors for serving on the Board or on a committee; or
|
(h)
|
unless expressly authorized by the Board, declare a dividend or authorize the issuance of stock.
|
By
|
s/ David B. Ramaker
|
Subsidiaries
|
|
Ownership
Percentage
|
|
State or Other Jurisdiction
of Incorporation
|
|
|
|
|
|
|
|
Chemical Bank
|
|
(1)
|
|
Michigan
|
|
CFC Financial Services, Inc.
|
|
|
|
|
|
—
|
also operates under d/b/a
Chemical Financial Advisors
|
|
(2)
|
|
Michigan
|
CFC Title Services, Inc.
|
|
(2)
|
|
Michigan
|
|
CFC Capital, Inc.
|
|
(2)
|
|
Michigan
|
(1)
|
100% owned by Chemical Financial Corporation.
|
(2)
|
100% owned by Chemical Bank.
|
Dated: December 31, 2013
|
/s/ Gary E. Anderson
|
|
(signature)
|
|
|
|
|
|
Gary E. Anderson
|
|
(type or print name)
|
Dated: December 30, 2013
|
/s/ J. Daniel Bernson
|
|
(signature)
|
|
|
|
|
|
J. Daniel Bernson
|
|
(type or print name)
|
Dated: December 16, 2013
|
/s/ Nancy Bowman
|
|
(signature)
|
|
|
|
|
|
Nancy Bowman
|
|
(type or print name)
|
Dated: December 4, 2013
|
/s/ James R. Fitterling
|
|
(signature)
|
|
|
|
|
|
James R. Fitterling
|
|
(type or print name)
|
Dated: December 5, 2013
|
/s/ Thomas T. Huff
|
|
(signature)
|
|
|
|
|
|
Thomas T. Huff
|
|
(type or print name)
|
Dated: December 31, 2013
|
/s/ Michael T. Laethem
|
|
(signature)
|
|
|
|
|
|
Michael T. Laethem
|
|
(type or print name)
|
Dated: December 26, 2013
|
/s/ James B. Meyer
|
|
(signature)
|
|
|
|
|
|
James B. Meyer
|
|
(type or print name)
|
Dated: December 18, 2013
|
/s/ Terence F. Moore
|
|
(signature)
|
|
|
|
|
|
Terence F. Moore
|
|
(type or print name)
|
Dated: December 6, 2013
|
/s/ Grace O. Shearer
|
|
(signature)
|
|
|
|
|
|
Grace O. Shearer
|
|
(type or print name)
|
Dated: December 11, 2013
|
/s/ Larry D. Stauffer
|
|
(signature)
|
|
|
|
|
|
Larry D. Stauffer
|
|
(type or print name)
|
Dated: December 5, 2013
|
/s/ Franklin C. Wheatlake
|
|
(signature)
|
|
|
|
|
|
Franklin C. Wheatlake
|
|
(type or print name)
|
1.
|
I have reviewed this Annual Report on Form 10-K for the year ended
December 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:
|
February 26, 2014
|
/s/ David B. Ramaker
|
|
|
David B. Ramaker
Chairman of the Board, Chief Executive Officer and President
Chemical Financial Corporation
|
1.
|
I have reviewed this Annual Report on Form 10-K for the year ended
December 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:
|
February 26, 2014
|
/s/ Lori A. Gwizdala
|
|
|
Lori A. Gwizdala
Executive Vice President, Chief Financial Officer and Treasurer
Chemical Financial Corporation
|
Dated:
|
February 26, 2014
|
/s/ David B. Ramaker
|
|
|
David B. Ramaker
Chairman of the Board, Chief Executive Officer and President
|
|
|
|
Dated:
|
February 26, 2014
|
/s/ Lori A. Gwizdala
|
|
|
Lori A. Gwizdala
Executive Vice President, Chief Financial Officer and Treasurer
|
A signed original of this written statement required by Section 906 has been provided to Chemical Financial Corporation and will be retained by Chemical Financial Corporation and furnished to the Securities and Exchange Commission or its staff upon request.
|
|
|
December 31,
|
||||||
|
|
2013
|
|
2012
|
||||
Assets
|
|
|
|
|
||||
Cash
|
|
$
|
1,120
|
|
|
$
|
765
|
|
Common stock receivable of Chemical Financial Corporation, at fair value (12,086 shares at a cost of $310,091 at December 31, 2013 and 10,696 shares at a cost of $239,169 at December 31, 2012)
|
|
382,764
|
|
|
254,137
|
|
||
Total Assets
|
|
$
|
383,884
|
|
|
$
|
254,902
|
|
Plan Equity
|
|
|
|
|
||||
Plan equity (70 participants at December 31, 2013 and 62 participants at December 31, 2012)
|
|
$
|
383,884
|
|
|
$
|
254,902
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
Additions:
|
|
|
|
|
|
|
||||||
Participant contributions
|
|
$
|
302,134
|
|
|
$
|
232,433
|
|
|
$
|
232,516
|
|
Dividend equivalents
|
|
8,323
|
|
|
6,839
|
|
|
7,257
|
|
|||
|
|
310,457
|
|
|
239,272
|
|
|
239,773
|
|
|||
|
|
|
|
|
|
|
||||||
Plan distributions
|
|
(254,148
|
)
|
|
(256,100
|
)
|
|
(251,728
|
)
|
|||
|
|
|
|
|
|
|
||||||
Net unrealized appreciation in fair value of common stock receivable
|
|
72,673
|
|
|
14,968
|
|
|
16,460
|
|
|||
Net increase (decrease)
|
|
128,982
|
|
|
(1,860
|
)
|
|
4,505
|
|
|||
Plan equity at beginning of period
|
|
254,902
|
|
|
256,762
|
|
|
252,257
|
|
|||
Plan equity at end of period
|
|
$
|
383,884
|
|
|
$
|
254,902
|
|
|
$
|
256,762
|
|
|
|
December 31,
|
||||||
|
|
2013
|
|
2012
|
||||
Assets
|
|
|
|
|
||||
Common stock receivable of Chemical Financial Corporation, at fair value (63,044 shares at a cost of $1,446,355 at December 31, 2013 and 53,822 shares at a cost of $1,189,246 at December 31, 2012)
|
|
$
|
1,996,592
|
|
|
$
|
1,278,811
|
|
Total Assets
|
|
$
|
1,996,592
|
|
|
$
|
1,278,811
|
|
Plan Equity
|
|
|
|
|
||||
Plan equity (11 participants at December 31, 2013 and 12 participants at December 31, 2012)
|
|
$
|
1,996,592
|
|
|
$
|
1,278,811
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2013
|
|
2012
|
|
2011
|
||||||
Additions:
|
|
|
|
|
|
|
||||||
Participant contributions
|
|
$
|
271,100
|
|
|
$
|
298,600
|
|
|
$
|
316,400
|
|
Dividend equivalents
|
|
52,291
|
|
|
41,259
|
|
|
29,026
|
|
|||
|
|
323,391
|
|
|
339,859
|
|
|
345,426
|
|
|||
|
|
|
|
|
|
|
||||||
Plan distributions
|
|
(66,282
|
)
|
|
(82,777
|
)
|
|
(20,353
|
)
|
|||
|
|
|
|
|
|
|
||||||
Net unrealized appreciation (depreciation) in fair value of common stock receivable
|
|
460,672
|
|
|
137,269
|
|
|
(22,715
|
)
|
|||
Net increase
|
|
717,781
|
|
|
394,351
|
|
|
302,358
|
|
|||
Plan equity at beginning of period
|
|
1,278,811
|
|
|
884,460
|
|
|
582,102
|
|
|||
Plan equity at end of period
|
|
$
|
1,996,592
|
|
|
$
|
1,278,811
|
|
|
$
|
884,460
|
|