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INDIANA
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35-1068133
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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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100 North Michigan Street
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South Bend, IN
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46601
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
o
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Accelerated filer
x
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Page
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EXHIBITS
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September 30,
2014 |
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December 31,
2013 |
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ASSETS
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Cash and due from banks
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$
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54,542
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$
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77,568
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Federal funds sold and interest bearing deposits with other banks
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27,169
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2,484
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Investment securities available-for-sale (amortized cost of $799,862 and $822,163 at September 30, 2014
and December 31, 2013, respectively)
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813,704
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832,700
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Other investments
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23,017
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22,400
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Trading account securities
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196
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192
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Mortgages held for sale
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13,070
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6,079
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Loans and leases, net of unearned discount:
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Commercial and agricultural loans
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696,209
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679,492
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Auto and light truck
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422,742
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391,649
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Medium and heavy duty truck
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249,014
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237,854
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Aircraft financing
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700,794
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738,133
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Construction equipment financing
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375,069
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333,088
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Commercial real estate
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615,420
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583,997
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Residential real estate
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451,508
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460,981
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Consumer loans
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143,665
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124,130
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Total loans and leases
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3,654,421
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3,549,324
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Reserve for loan and lease losses
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(87,400
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)
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(83,505
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)
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Net loans and leases
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3,567,021
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3,465,819
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Equipment owned under operating leases, net
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66,013
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60,967
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Net premises and equipment
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47,350
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46,630
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Goodwill and intangible assets
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85,583
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86,343
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Accrued income and other assets
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123,128
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121,644
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Total assets
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$
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4,820,793
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$
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4,722,826
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LIABILITIES
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Deposits:
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Noninterest bearing
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$
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818,679
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$
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735,212
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Interest bearing
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3,017,293
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2,918,438
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Total deposits
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3,835,972
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3,653,650
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Short-term borrowings:
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Federal funds purchased and securities sold under agreements to repurchase
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106,769
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181,120
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Other short-term borrowings
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109,953
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133,011
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Total short-term borrowings
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216,722
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314,131
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Long-term debt and mandatorily redeemable securities
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56,171
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58,335
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Subordinated notes
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58,764
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58,764
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Accrued expenses and other liabilities
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50,131
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52,568
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Total liabilities
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4,217,760
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4,137,448
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SHAREHOLDERS’ EQUITY
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Preferred stock; no par value
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Authorized 10,000,000 shares; none issued or outstanding
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—
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—
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Common stock; no par value
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Authorized 40,000,000 shares; issued 25,641,887 at September 30, 2014 and December 31, 2013
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346,535
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346,535
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Retained earnings
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291,569
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261,626
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Cost of common stock in treasury (1,779,634 shares at September 30, 2014 and 1,319,377 shares at December 31, 2013)
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(43,716
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)
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(29,364
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)
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Accumulated other comprehensive income
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8,645
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6,581
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Total shareholders’ equity
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603,033
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585,378
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Total liabilities and shareholders’ equity
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$
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4,820,793
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$
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4,722,826
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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2014
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2013
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2014
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2013
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Interest income:
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Loans and leases
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$
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41,118
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$
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42,392
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$
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120,434
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$
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121,674
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Investment securities, taxable
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2,962
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3,581
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9,708
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10,774
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Investment securities, tax-exempt
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831
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764
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2,466
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2,295
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Other
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241
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229
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750
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712
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Total interest income
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45,152
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46,966
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133,358
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135,455
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Interest expense:
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Deposits
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2,765
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4,089
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8,730
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13,043
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Short-term borrowings
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134
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72
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440
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149
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Subordinated notes
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1,055
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1,055
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3,165
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3,165
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Long-term debt and mandatorily redeemable securities
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488
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592
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1,533
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1,315
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Total interest expense
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4,442
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5,808
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13,868
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17,672
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Net interest income
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40,710
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41,158
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119,490
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117,783
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Provision for (recovery of) loan and lease losses
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1,206
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(419
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)
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4,553
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1,631
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Net interest income after provision for loan and lease losses
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39,504
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41,577
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114,937
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116,152
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Noninterest income:
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Trust fees
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4,499
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5,260
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13,930
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13,800
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Service charges on deposit accounts
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2,225
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2,364
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6,498
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6,928
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Debit card income
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2,382
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2,343
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7,077
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6,752
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Mortgage banking income
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1,446
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1,103
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3,961
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4,667
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Insurance commissions
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1,317
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1,292
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4,168
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4,131
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Equipment rental income
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4,361
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4,000
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12,541
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12,098
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Gains (losses) on investment securities available-for-sale
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—
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(28
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)
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963
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(28
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)
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Other income
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3,162
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3,824
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8,873
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10,879
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Total noninterest income
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19,392
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20,158
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58,011
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59,227
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Noninterest expense:
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Salaries and employee benefits
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20,790
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20,441
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59,099
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59,553
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Net occupancy expense
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2,252
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2,126
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6,924
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6,480
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Furniture and equipment expense
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4,415
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4,477
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13,065
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12,285
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Depreciation - leased equipment
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3,571
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3,246
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10,110
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9,745
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Professional fees
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1,158
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1,178
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3,348
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3,843
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Supplies and communication
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1,424
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1,330
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4,153
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4,365
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FDIC and other insurance
|
856
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|
874
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2,570
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2,679
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Business development and marketing expense
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1,218
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1,306
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3,801
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3,011
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Loan and lease collection and repossession expense
|
652
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|
1,530
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|
140
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|
3,382
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Other expense
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1,317
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1,922
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|
|
4,839
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|
|
5,381
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|
||||
Total noninterest expense
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37,653
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|
38,430
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|
|
108,049
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110,724
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Income before income taxes
|
21,243
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|
|
23,305
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|
|
64,899
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|
|
64,655
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|
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Income tax expense
|
6,296
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|
|
8,409
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|
|
21,826
|
|
|
23,413
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||||
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||||||||
Net income
|
$
|
14,947
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$
|
14,896
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$
|
43,073
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$
|
41,242
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Per common share:
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Basic net income per common share
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$
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0.62
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$
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0.60
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$
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1.77
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$
|
1.67
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Diluted net income per common share
|
$
|
0.62
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$
|
0.60
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$
|
1.77
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$
|
1.67
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Dividends
|
$
|
0.18
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$
|
0.17
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$
|
0.53
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$
|
0.51
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Basic weighted average common shares outstanding
|
23,875,331
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24,366,220
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24,088,636
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24,352,073
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||||
Diluted weighted average common shares outstanding
|
23,875,331
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24,367,109
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|
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24,088,636
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24,352,854
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Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
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2014
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|
2013
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2014
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|
2013
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||||||||
|
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||||||||
Net income
|
$
|
14,947
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|
|
$
|
14,896
|
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|
$
|
43,073
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|
$
|
41,242
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|
|
|
|
|
|
|
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||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||
Change in unrealized (depreciation) appreciation of available-for-sale securities
|
(2,507
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)
|
|
1,853
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|
4,268
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(16,881
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)
|
||||
Reclassification adjustment for realized losses (gains) included in net income
|
—
|
|
|
28
|
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(963
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)
|
|
28
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|
||||
Income tax effect
|
941
|
|
|
(706
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)
|
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(1,241
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)
|
|
6,327
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|
||||
Other comprehensive (loss) income, net of tax
|
(1,566
|
)
|
|
1,175
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|
|
2,064
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(10,526
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)
|
||||
|
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||||||||
Comprehensive income
|
$
|
13,381
|
|
|
$
|
16,071
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|
|
$
|
45,137
|
|
|
$
|
30,716
|
|
|
Preferred
Stock
|
|
Common
Stock
|
|
Retained
Earnings
|
|
Cost of
Common
Stock
in Treasury
|
|
Accumulated
Other
Comprehensive
Income (Loss), Net
|
|
Total
|
||||||||||||
Balance at January 1, 2013
|
$
|
—
|
|
|
$
|
346,535
|
|
|
$
|
223,715
|
|
|
$
|
(31,134
|
)
|
|
$
|
19,539
|
|
|
$
|
558,655
|
|
Net income
|
—
|
|
|
—
|
|
|
41,242
|
|
|
—
|
|
|
—
|
|
|
41,242
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,526
|
)
|
|
(10,526
|
)
|
||||||
Issuance of 169,792 common shares under stock based compensation awards, including related tax effects
|
—
|
|
|
—
|
|
|
(390
|
)
|
|
4,040
|
|
|
—
|
|
|
3,650
|
|
||||||
Cost of 89,867 shares of common stock acquired for treasury
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,268
|
)
|
|
—
|
|
|
(2,268
|
)
|
||||||
Common stock dividend ($0.51 per share)
|
—
|
|
|
—
|
|
|
(12,524
|
)
|
|
—
|
|
|
—
|
|
|
(12,524
|
)
|
||||||
Balance at September 30, 2013
|
$
|
—
|
|
|
$
|
346,535
|
|
|
$
|
252,043
|
|
|
$
|
(29,362
|
)
|
|
$
|
9,013
|
|
|
$
|
578,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at January 1, 2014
|
$
|
—
|
|
|
$
|
346,535
|
|
|
$
|
261,626
|
|
|
$
|
(29,364
|
)
|
|
$
|
6,581
|
|
|
$
|
585,378
|
|
Net income
|
—
|
|
|
—
|
|
|
43,073
|
|
|
—
|
|
|
—
|
|
|
43,073
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,064
|
|
|
2,064
|
|
||||||
Issuance of 83,149 common shares under stock based compensation awards, including related tax effects
|
—
|
|
|
—
|
|
|
(244
|
)
|
|
1,990
|
|
|
—
|
|
|
1,746
|
|
||||||
Cost of 543,406 shares of common stock acquired for treasury
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,342
|
)
|
|
—
|
|
|
(16,342
|
)
|
||||||
Common stock dividend ($0.53 per share)
|
—
|
|
|
—
|
|
|
(12,886
|
)
|
|
—
|
|
|
—
|
|
|
(12,886
|
)
|
||||||
Balance at September 30, 2014
|
$
|
—
|
|
|
$
|
346,535
|
|
|
$
|
291,569
|
|
|
$
|
(43,716
|
)
|
|
$
|
8,645
|
|
|
$
|
603,033
|
|
|
Nine Months Ended September 30,
|
||||||
|
2014
|
|
2013
|
||||
Operating activities:
|
|
|
|
|
|
||
Net income
|
$
|
43,073
|
|
|
$
|
41,242
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||
Provision for loan and lease losses
|
4,553
|
|
|
1,631
|
|
||
Depreciation of premises and equipment
|
3,502
|
|
|
3,515
|
|
||
Depreciation of equipment owned and leased to others
|
10,110
|
|
|
9,745
|
|
||
Amortization of investment securities premiums and accretion of discounts, net
|
3,411
|
|
|
2,745
|
|
||
Amortization of mortgage servicing rights
|
930
|
|
|
1,265
|
|
||
Deferred income taxes
|
(1,629
|
)
|
|
(3,265
|
)
|
||
(Gains) losses on investment securities available-for-sale
|
(963
|
)
|
|
28
|
|
||
Originations of loans held for sale, net of principal collected
|
(91,936
|
)
|
|
(85,010
|
)
|
||
Proceeds from the sales of loans held for sale
|
87,518
|
|
|
91,395
|
|
||
Net gain on sale of loans held for sale
|
(2,573
|
)
|
|
(2,663
|
)
|
||
Change in trading account securities
|
(4
|
)
|
|
(31
|
)
|
||
Change in interest receivable
|
(945
|
)
|
|
(215
|
)
|
||
Change in interest payable
|
(955
|
)
|
|
(1,506
|
)
|
||
Change in other assets
|
5,004
|
|
|
13,085
|
|
||
Change in other liabilities
|
(127
|
)
|
|
(3,636
|
)
|
||
Other
|
2,288
|
|
|
328
|
|
||
Net change in operating activities
|
61,257
|
|
|
68,653
|
|
||
|
|
|
|
||||
Investing activities:
|
|
|
|
|
|
||
Proceeds from sales of investment securities
|
1,236
|
|
|
47,028
|
|
||
Proceeds from maturities of investment securities
|
138,316
|
|
|
152,706
|
|
||
Purchases of investment securities
|
(119,700
|
)
|
|
(172,789
|
)
|
||
Net change in other investments
|
(617
|
)
|
|
200
|
|
||
Loans sold or participated to others
|
15,363
|
|
|
25,054
|
|
||
Net change in loans and leases
|
(127,646
|
)
|
|
(171,771
|
)
|
||
Net change in equipment owned under operating leases
|
(15,156
|
)
|
|
(18,732
|
)
|
||
Purchases of premises and equipment
|
(4,254
|
)
|
|
(4,040
|
)
|
||
Net change in investing activities
|
(112,458
|
)
|
|
(142,344
|
)
|
||
|
|
|
|
||||
Financing activities:
|
|
|
|
|
|
||
Net change in demand deposits and savings accounts
|
52,369
|
|
|
79,907
|
|
||
Net change in time deposits
|
129,953
|
|
|
(24,838
|
)
|
||
Net change in short-term borrowings
|
(97,409
|
)
|
|
52,254
|
|
||
Proceeds from issuance of long-term debt
|
7,185
|
|
|
5,951
|
|
||
Payments on long-term debt
|
(11,433
|
)
|
|
(20,313
|
)
|
||
Net proceeds from issuance of treasury stock
|
1,746
|
|
|
3,650
|
|
||
Acquisition of treasury stock
|
(16,342
|
)
|
|
(2,268
|
)
|
||
Cash dividends paid on common stock
|
(13,209
|
)
|
|
(12,820
|
)
|
||
Net change in financing activities
|
52,860
|
|
|
81,523
|
|
||
|
|
|
|
||||
Net change in cash and cash equivalents
|
1,659
|
|
|
7,832
|
|
||
|
|
|
|
||||
Cash and cash equivalents, beginning of year
|
80,052
|
|
|
83,934
|
|
||
|
|
|
|
||||
Cash and cash equivalents, end of period
|
$
|
81,711
|
|
|
$
|
91,766
|
|
|
|
|
|
||||
Supplemental Information:
|
|
|
|
|
|
||
Non-cash transactions:
|
|
|
|
|
|
||
Loans transferred to other real estate and repossessed assets
|
$
|
6,528
|
|
|
$
|
5,717
|
|
Common stock matching contribution to Employee Stock Ownership and Profit Sharing Plan
|
—
|
|
|
2,801
|
|
(Dollars in thousands)
|
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury and Federal agencies securities
|
|
$
|
392,578
|
|
|
$
|
3,793
|
|
|
$
|
(2,472
|
)
|
|
$
|
393,899
|
|
U.S. States and political subdivisions securities
|
|
123,152
|
|
|
4,012
|
|
|
(149
|
)
|
|
127,015
|
|
||||
Mortgage-backed securities — Federal agencies
|
|
249,710
|
|
|
5,337
|
|
|
(1,586
|
)
|
|
253,461
|
|
||||
Corporate debt securities
|
|
31,729
|
|
|
285
|
|
|
(35
|
)
|
|
31,979
|
|
||||
Foreign government and other securities
|
|
800
|
|
|
8
|
|
|
—
|
|
|
808
|
|
||||
Total debt securities
|
|
797,969
|
|
|
13,435
|
|
|
(4,242
|
)
|
|
807,162
|
|
||||
Marketable equity securities
|
|
1,893
|
|
|
4,651
|
|
|
(2
|
)
|
|
6,542
|
|
||||
Total investment securities available-for-sale
|
|
$
|
799,862
|
|
|
$
|
18,086
|
|
|
$
|
(4,244
|
)
|
|
$
|
813,704
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury and Federal agencies securities
|
|
$
|
394,558
|
|
|
$
|
5,008
|
|
|
$
|
(4,527
|
)
|
|
$
|
395,039
|
|
U.S. States and political subdivisions securities
|
|
120,416
|
|
|
3,670
|
|
|
(847
|
)
|
|
123,239
|
|
||||
Mortgage-backed securities — Federal agencies
|
|
273,495
|
|
|
5,148
|
|
|
(3,563
|
)
|
|
275,080
|
|
||||
Corporate debt securities
|
|
30,828
|
|
|
241
|
|
|
(4
|
)
|
|
31,065
|
|
||||
Foreign government and other securities
|
|
700
|
|
|
9
|
|
|
—
|
|
|
709
|
|
||||
Total debt securities
|
|
819,997
|
|
|
14,076
|
|
|
(8,941
|
)
|
|
825,132
|
|
||||
Marketable equity securities
|
|
2,166
|
|
|
5,404
|
|
|
(2
|
)
|
|
7,568
|
|
||||
Total investment securities available-for-sale
|
|
$
|
822,163
|
|
|
$
|
19,480
|
|
|
$
|
(8,943
|
)
|
|
$
|
832,700
|
|
(Dollars in thousands)
|
|
Amortized Cost
|
|
Fair Value
|
||||
Due in one year or less
|
|
$
|
34,526
|
|
|
$
|
34,874
|
|
Due after one year through five years
|
|
416,243
|
|
|
421,493
|
|
||
Due after five years through ten years
|
|
95,275
|
|
|
95,054
|
|
||
Due after ten years
|
|
2,215
|
|
|
2,280
|
|
||
Mortgage-backed securities
|
|
249,710
|
|
|
253,461
|
|
||
Total debt securities available-for-sale
|
|
$
|
797,969
|
|
|
$
|
807,162
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Gross realized gains
|
|
$
|
—
|
|
|
$
|
903
|
|
|
$
|
963
|
|
|
$
|
903
|
|
Gross realized losses
|
|
—
|
|
|
(931
|
)
|
|
—
|
|
|
(931
|
)
|
||||
Net realized gains (losses)
|
|
$
|
—
|
|
|
$
|
(28
|
)
|
|
$
|
963
|
|
|
$
|
(28
|
)
|
|
|
Less than 12 Months
|
|
12 months or Longer
|
|
Total
|
||||||||||||||||||
(Dollars in thousands)
|
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
||||||||||||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury and Federal agencies securities
|
|
$
|
81,375
|
|
|
$
|
(285
|
)
|
|
$
|
119,848
|
|
|
$
|
(2,187
|
)
|
|
$
|
201,223
|
|
|
$
|
(2,472
|
)
|
U.S. States and political subdivisions securities
|
|
5,130
|
|
|
(36
|
)
|
|
8,630
|
|
|
(113
|
)
|
|
13,760
|
|
|
(149
|
)
|
||||||
Mortgage-backed securities - Federal agencies
|
|
48,001
|
|
|
(287
|
)
|
|
36,914
|
|
|
(1,299
|
)
|
|
84,915
|
|
|
(1,586
|
)
|
||||||
Corporate debt securities
|
|
8,560
|
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|
8,560
|
|
|
(35
|
)
|
||||||
Foreign government and other securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total debt securities
|
|
143,066
|
|
|
(643
|
)
|
|
165,392
|
|
|
(3,599
|
)
|
|
308,458
|
|
|
(4,242
|
)
|
||||||
Marketable equity securities
|
|
1
|
|
|
—
|
|
|
3
|
|
|
(2
|
)
|
|
4
|
|
|
(2
|
)
|
||||||
Total investment securities available-for-sale
|
|
$
|
143,067
|
|
|
$
|
(643
|
)
|
|
$
|
165,395
|
|
|
$
|
(3,601
|
)
|
|
$
|
308,462
|
|
|
$
|
(4,244
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury and Federal agencies securities
|
|
$
|
153,868
|
|
|
$
|
(4,404
|
)
|
|
$
|
15,085
|
|
|
$
|
(123
|
)
|
|
$
|
168,953
|
|
|
$
|
(4,527
|
)
|
U.S. States and political subdivisions securities
|
|
37,115
|
|
|
(814
|
)
|
|
1,419
|
|
|
(33
|
)
|
|
38,534
|
|
|
(847
|
)
|
||||||
Mortgage-backed securities - Federal agencies
|
|
99,488
|
|
|
(3,099
|
)
|
|
5,352
|
|
|
(464
|
)
|
|
104,840
|
|
|
(3,563
|
)
|
||||||
Corporate debt securities
|
|
6,332
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
6,332
|
|
|
(4
|
)
|
||||||
Foreign government and other securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total debt securities
|
|
296,803
|
|
|
(8,321
|
)
|
|
21,856
|
|
|
(620
|
)
|
|
318,659
|
|
|
(8,941
|
)
|
||||||
Marketable equity securities
|
|
—
|
|
|
—
|
|
|
4
|
|
|
(2
|
)
|
|
4
|
|
|
(2
|
)
|
||||||
Total investment securities available-for-sale
|
|
$
|
296,803
|
|
|
$
|
(8,321
|
)
|
|
$
|
21,860
|
|
|
$
|
(622
|
)
|
|
$
|
318,663
|
|
|
$
|
(8,943
|
)
|
|
|
Credit Quality Grades
|
||||||||||
(Dollars in thousands)
|
|
1-6
|
|
7-12
|
|
Total
|
||||||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|||
Commercial and agricultural loans
|
|
$
|
660,946
|
|
|
$
|
35,263
|
|
|
$
|
696,209
|
|
Auto and light truck
|
|
404,514
|
|
|
18,228
|
|
|
422,742
|
|
|||
Medium and heavy duty truck
|
|
245,058
|
|
|
3,956
|
|
|
249,014
|
|
|||
Aircraft financing
|
|
672,847
|
|
|
27,947
|
|
|
700,794
|
|
|||
Construction equipment financing
|
|
368,574
|
|
|
6,495
|
|
|
375,069
|
|
|||
Commercial real estate
|
|
589,667
|
|
|
25,753
|
|
|
615,420
|
|
|||
Total
|
|
$
|
2,941,606
|
|
|
$
|
117,642
|
|
|
$
|
3,059,248
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|||
Commercial and agricultural loans
|
|
$
|
652,620
|
|
|
$
|
26,872
|
|
|
$
|
679,492
|
|
Auto and light truck
|
|
378,392
|
|
|
13,257
|
|
|
391,649
|
|
|||
Medium and heavy duty truck
|
|
235,465
|
|
|
2,389
|
|
|
237,854
|
|
|||
Aircraft financing
|
|
704,997
|
|
|
33,136
|
|
|
738,133
|
|
|||
Construction equipment financing
|
|
325,849
|
|
|
7,239
|
|
|
333,088
|
|
|||
Commercial real estate
|
|
557,692
|
|
|
26,305
|
|
|
583,997
|
|
|||
Total
|
|
$
|
2,855,015
|
|
|
$
|
109,198
|
|
|
$
|
2,964,213
|
|
(Dollars in thousands)
|
|
Performing
|
|
Nonperforming
|
|
Total
|
||||||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|||
Residential real estate
|
|
$
|
448,999
|
|
|
$
|
2,509
|
|
|
$
|
451,508
|
|
Consumer
|
|
143,288
|
|
|
377
|
|
|
143,665
|
|
|||
Total
|
|
$
|
592,287
|
|
|
$
|
2,886
|
|
|
$
|
595,173
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|||
Residential real estate
|
|
$
|
458,385
|
|
|
$
|
2,596
|
|
|
$
|
460,981
|
|
Consumer
|
|
123,663
|
|
|
467
|
|
|
124,130
|
|
|||
Total
|
|
$
|
582,048
|
|
|
$
|
3,063
|
|
|
$
|
585,111
|
|
(Dollars in thousands)
|
|
Current
|
|
30-59 Days Past Due
|
|
60-89 Days Past Due
|
|
90 Days or More Past Due and Accruing
|
|
Total Accruing Loans
|
|
Nonaccrual
|
|
Total Financing Receivables
|
||||||||||||||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial and agricultural loans
|
|
$
|
678,943
|
|
|
$
|
124
|
|
|
$
|
101
|
|
|
$
|
—
|
|
|
$
|
679,168
|
|
|
$
|
17,041
|
|
|
$
|
696,209
|
|
Auto and light truck
|
|
422,441
|
|
|
264
|
|
|
—
|
|
|
—
|
|
|
422,705
|
|
|
37
|
|
|
422,742
|
|
|||||||
Medium and heavy duty truck
|
|
248,894
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
248,934
|
|
|
80
|
|
|
249,014
|
|
|||||||
Aircraft financing
|
|
690,979
|
|
|
5,401
|
|
|
3,324
|
|
|
—
|
|
|
699,704
|
|
|
1,090
|
|
|
700,794
|
|
|||||||
Construction equipment financing
|
|
373,290
|
|
|
981
|
|
|
—
|
|
|
—
|
|
|
374,271
|
|
|
798
|
|
|
375,069
|
|
|||||||
Commercial real estate
|
|
610,005
|
|
|
14
|
|
|
57
|
|
|
—
|
|
|
610,076
|
|
|
5,344
|
|
|
615,420
|
|
|||||||
Residential real estate
|
|
447,845
|
|
|
959
|
|
|
195
|
|
|
671
|
|
|
449,670
|
|
|
1,838
|
|
|
451,508
|
|
|||||||
Consumer
|
|
142,565
|
|
|
526
|
|
|
197
|
|
|
81
|
|
|
143,369
|
|
|
296
|
|
|
143,665
|
|
|||||||
Total
|
|
$
|
3,614,962
|
|
|
$
|
8,309
|
|
|
$
|
3,874
|
|
|
$
|
752
|
|
|
$
|
3,627,897
|
|
|
$
|
26,524
|
|
|
$
|
3,654,421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial and agricultural loans
|
|
$
|
667,462
|
|
|
$
|
263
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
667,727
|
|
|
$
|
11,765
|
|
|
$
|
679,492
|
|
Auto and light truck
|
|
387,881
|
|
|
222
|
|
|
36
|
|
|
—
|
|
|
388,139
|
|
|
3,510
|
|
|
391,649
|
|
|||||||
Medium and heavy duty truck
|
|
237,645
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
237,665
|
|
|
189
|
|
|
237,854
|
|
|||||||
Aircraft financing
|
|
713,832
|
|
|
10,309
|
|
|
3,627
|
|
|
—
|
|
|
727,768
|
|
|
10,365
|
|
|
738,133
|
|
|||||||
Construction equipment financing
|
|
331,083
|
|
|
973
|
|
|
—
|
|
|
—
|
|
|
332,056
|
|
|
1,032
|
|
|
333,088
|
|
|||||||
Commercial real estate
|
|
576,933
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
576,933
|
|
|
7,064
|
|
|
583,997
|
|
|||||||
Residential real estate
|
|
456,782
|
|
|
1,334
|
|
|
269
|
|
|
197
|
|
|
458,582
|
|
|
2,399
|
|
|
460,981
|
|
|||||||
Consumer
|
|
122,657
|
|
|
786
|
|
|
220
|
|
|
84
|
|
|
123,747
|
|
|
383
|
|
|
124,130
|
|
|||||||
Total
|
|
$
|
3,494,275
|
|
|
$
|
13,907
|
|
|
$
|
4,154
|
|
|
$
|
281
|
|
|
$
|
3,512,617
|
|
|
$
|
36,707
|
|
|
$
|
3,549,324
|
|
(Dollars in thousands)
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Reserve
|
||||||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|||
With no related reserve recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and agricultural loans
|
|
$
|
6,862
|
|
|
$
|
6,862
|
|
|
$
|
—
|
|
Auto and light truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Medium and heavy duty truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Aircraft financing
|
|
1,341
|
|
|
1,341
|
|
|
—
|
|
|||
Construction equipment financing
|
|
758
|
|
|
758
|
|
|
—
|
|
|||
Commercial real estate
|
|
12,410
|
|
|
12,410
|
|
|
—
|
|
|||
Residential real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total with no related reserve recorded
|
|
21,371
|
|
|
21,371
|
|
|
—
|
|
|||
With a reserve recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and agricultural loans
|
|
10,466
|
|
|
10,466
|
|
|
3,415
|
|
|||
Auto and light truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Medium and heavy duty truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Aircraft financing
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Construction equipment financing
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial real estate
|
|
820
|
|
|
820
|
|
|
76
|
|
|||
Residential real estate
|
|
375
|
|
|
377
|
|
|
157
|
|
|||
Consumer loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total with a reserve recorded
|
|
11,661
|
|
|
11,663
|
|
|
3,648
|
|
|||
Total impaired loans
|
|
$
|
33,032
|
|
|
$
|
33,034
|
|
|
$
|
3,648
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|||
With no related reserve recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and agricultural loans
|
|
$
|
11,231
|
|
|
$
|
11,230
|
|
|
$
|
—
|
|
Auto and light truck
|
|
3,499
|
|
|
3,499
|
|
|
—
|
|
|||
Medium and heavy duty truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Aircraft financing
|
|
9,764
|
|
|
9,764
|
|
|
—
|
|
|||
Construction equipment financing
|
|
938
|
|
|
938
|
|
|
—
|
|
|||
Commercial real estate
|
|
14,897
|
|
|
14,897
|
|
|
—
|
|
|||
Residential real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total with no related reserve recorded
|
|
40,329
|
|
|
40,328
|
|
|
—
|
|
|||
With a reserve recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and agricultural loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Auto and light truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Medium and heavy duty truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Aircraft financing
|
|
563
|
|
|
563
|
|
|
113
|
|
|||
Construction equipment financing
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
|
381
|
|
|
381
|
|
|
161
|
|
|||
Consumer loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total with a reserve recorded
|
|
944
|
|
|
944
|
|
|
274
|
|
|||
Total impaired loans
|
|
$
|
41,273
|
|
|
$
|
41,272
|
|
|
$
|
274
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||||||||||
(Dollars in thousands)
|
|
Average
Recorded
Investment
|
|
Interest
Income
|
|
Average
Recorded
Investment
|
|
Interest
Income
|
|
Average
Recorded
Investment
|
|
Interest
Income
|
|
Average
Recorded
Investment
|
|
Interest
Income
|
||||||||||||||||
Commercial and agricultural loans
|
|
$
|
22,095
|
|
|
$
|
9
|
|
|
$
|
11,766
|
|
|
$
|
98
|
|
|
$
|
16,203
|
|
|
$
|
34
|
|
|
$
|
9,645
|
|
|
$
|
133
|
|
Auto and light truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
542
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Medium and heavy duty truck
|
|
—
|
|
|
—
|
|
|
677
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
513
|
|
|
—
|
|
||||||||
Aircraft financing
|
|
1,157
|
|
|
3
|
|
|
10,361
|
|
|
79
|
|
|
3,212
|
|
|
16
|
|
|
8,832
|
|
|
79
|
|
||||||||
Construction equipment financing
|
|
941
|
|
|
—
|
|
|
1,447
|
|
|
1
|
|
|
1,001
|
|
|
—
|
|
|
3,376
|
|
|
4
|
|
||||||||
Commercial real estate
|
|
13,415
|
|
|
148
|
|
|
16,531
|
|
|
155
|
|
|
13,263
|
|
|
442
|
|
|
18,507
|
|
|
459
|
|
||||||||
Residential real estate
|
|
375
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
377
|
|
|
12
|
|
|
—
|
|
|
—
|
|
||||||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
|
$
|
37,983
|
|
|
$
|
164
|
|
|
$
|
40,782
|
|
|
$
|
333
|
|
|
$
|
34,598
|
|
|
$
|
504
|
|
|
$
|
40,873
|
|
|
$
|
675
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||||||
(Dollars in thousands)
|
|
Number of Modifications
|
|
Recorded Investment
|
|
Number of Modifications
|
|
Recorded Investment
|
|
Number of Modifications
|
|
Recorded Investment
|
|
Number of Modifications
|
|
Recorded Investment
|
||||||||||||
Performing TDRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial and agricultural loans
|
|
2
|
|
|
$
|
346
|
|
|
—
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
346
|
|
|
1
|
|
|
$
|
750
|
|
Auto and light truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Medium and heavy duty truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Aircraft financing
|
|
1
|
|
|
337
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
337
|
|
|
—
|
|
|
—
|
|
||||
Construction equipment financing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total performing TDR modifications
|
|
3
|
|
|
$
|
683
|
|
|
—
|
|
|
$
|
—
|
|
|
4
|
|
|
$
|
683
|
|
|
1
|
|
|
$
|
750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nonperforming TDRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial and agricultural loans
|
|
4
|
|
|
$
|
9,556
|
|
|
—
|
|
|
$
|
—
|
|
|
4
|
|
|
$
|
9,556
|
|
|
1
|
|
|
$
|
299
|
|
Auto and light truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Medium and heavy duty truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Aircraft financing
|
|
—
|
|
|
—
|
|
|
1
|
|
|
4,201
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
4,201
|
|
||||
Construction equipment financing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate
|
|
1
|
|
|
820
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
820
|
|
|
—
|
|
|
—
|
|
||||
Residential real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total nonperforming TDR modifications
|
|
5
|
|
|
$
|
10,376
|
|
|
1
|
|
|
$
|
4,201
|
|
|
5
|
|
|
$
|
10,376
|
|
|
2
|
|
|
$
|
4,500
|
|
Total TDR modifications
|
|
8
|
|
|
$
|
11,059
|
|
|
1
|
|
|
$
|
4,201
|
|
|
9
|
|
|
$
|
11,059
|
|
|
3
|
|
|
$
|
5,250
|
|
(Dollars in thousands)
|
|
September 30,
2014 |
|
December 31,
2013 |
||||
Performing TDRs
|
|
$
|
9,290
|
|
|
$
|
8,786
|
|
Nonperforming TDRs
|
|
17,001
|
|
|
11,824
|
|
||
Total TDRs
|
|
$
|
26,291
|
|
|
$
|
20,610
|
|
(Dollars in thousands)
|
|
Commercial and
agricultural loans
|
|
Auto and
light truck
|
|
Medium and
heavy duty truck
|
|
Aircraft
financing
|
|
Construction
equipment
financing
|
|
Commercial
real estate
|
|
Residential
real estate
|
|
Consumer
loans
|
|
Total
|
||||||||||||||||||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Reserve for loan and lease losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance, beginning of period
|
|
$
|
16,766
|
|
|
$
|
10,427
|
|
|
$
|
4,281
|
|
|
$
|
33,087
|
|
|
$
|
6,318
|
|
|
$
|
12,353
|
|
|
$
|
3,934
|
|
|
$
|
1,610
|
|
|
$
|
88,776
|
|
Charge-offs
|
|
3,000
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
16
|
|
|
3
|
|
|
193
|
|
|
3,224
|
|
|||||||||
Recoveries
|
|
177
|
|
|
64
|
|
|
1
|
|
|
49
|
|
|
130
|
|
|
130
|
|
|
23
|
|
|
68
|
|
|
642
|
|
|||||||||
Net charge-offs (recoveries)
|
|
2,823
|
|
|
(54
|
)
|
|
(1
|
)
|
|
(49
|
)
|
|
(128
|
)
|
|
(114
|
)
|
|
(20
|
)
|
|
125
|
|
|
2,582
|
|
|||||||||
Provision (recovery of provision)
|
|
1,295
|
|
|
516
|
|
|
173
|
|
|
(1,672
|
)
|
|
11
|
|
|
485
|
|
|
58
|
|
|
340
|
|
|
1,206
|
|
|||||||||
Balance, end of period
|
|
$
|
15,238
|
|
|
$
|
10,997
|
|
|
$
|
4,455
|
|
|
$
|
31,464
|
|
|
$
|
6,457
|
|
|
$
|
12,952
|
|
|
$
|
4,012
|
|
|
$
|
1,825
|
|
|
$
|
87,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Ending balance, individually evaluated for impairment
|
|
$
|
3,415
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
76
|
|
|
$
|
157
|
|
|
$
|
—
|
|
|
$
|
3,648
|
|
Ending balance, collectively evaluated for impairment
|
|
11,823
|
|
|
10,997
|
|
|
4,455
|
|
|
31,464
|
|
|
6,457
|
|
|
12,876
|
|
|
3,855
|
|
|
1,825
|
|
|
83,752
|
|
|||||||||
Total reserve for loan and lease losses
|
|
$
|
15,238
|
|
|
$
|
10,997
|
|
|
$
|
4,455
|
|
|
$
|
31,464
|
|
|
$
|
6,457
|
|
|
$
|
12,952
|
|
|
$
|
4,012
|
|
|
$
|
1,825
|
|
|
$
|
87,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Recorded investment in loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Ending balance, individually evaluated for impairment
|
|
$
|
17,328
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,341
|
|
|
$
|
758
|
|
|
$
|
13,230
|
|
|
$
|
375
|
|
|
$
|
—
|
|
|
$
|
33,032
|
|
Ending balance, collectively evaluated for impairment
|
|
678,881
|
|
|
422,742
|
|
|
249,014
|
|
|
699,453
|
|
|
374,311
|
|
|
602,190
|
|
|
451,133
|
|
|
143,665
|
|
|
3,621,389
|
|
|||||||||
Total recorded investment in loans
|
|
$
|
696,209
|
|
|
$
|
422,742
|
|
|
$
|
249,014
|
|
|
$
|
700,794
|
|
|
$
|
375,069
|
|
|
$
|
615,420
|
|
|
$
|
451,508
|
|
|
$
|
143,665
|
|
|
$
|
3,654,421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Reserve for loan and lease losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance, beginning of period
|
|
$
|
12,202
|
|
|
$
|
11,267
|
|
|
$
|
3,800
|
|
|
$
|
33,323
|
|
|
$
|
6,065
|
|
|
$
|
13,529
|
|
|
$
|
3,895
|
|
|
$
|
1,609
|
|
|
$
|
85,690
|
|
Charge-offs
|
|
49
|
|
|
50
|
|
|
—
|
|
|
1,277
|
|
|
—
|
|
|
—
|
|
|
76
|
|
|
219
|
|
|
1,671
|
|
|||||||||
Recoveries
|
|
114
|
|
|
2
|
|
|
404
|
|
|
98
|
|
|
64
|
|
|
150
|
|
|
1
|
|
|
74
|
|
|
907
|
|
|||||||||
Net charge-offs (recoveries)
|
|
(65
|
)
|
|
48
|
|
|
(404
|
)
|
|
1,179
|
|
|
(64
|
)
|
|
(150
|
)
|
|
75
|
|
|
145
|
|
|
764
|
|
|||||||||
Provision (recovery of provision)
|
|
(255
|
)
|
|
(1,550
|
)
|
|
(121
|
)
|
|
1,670
|
|
|
448
|
|
|
(801
|
)
|
|
70
|
|
|
120
|
|
|
(419
|
)
|
|||||||||
Balance, end of period
|
|
$
|
12,012
|
|
|
$
|
9,669
|
|
|
$
|
4,083
|
|
|
$
|
33,814
|
|
|
$
|
6,577
|
|
|
$
|
12,878
|
|
|
$
|
3,890
|
|
|
$
|
1,584
|
|
|
$
|
84,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Ending balance, individually evaluated for impairment
|
|
$
|
49
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,491
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,540
|
|
Ending balance, collectively evaluated for impairment
|
|
11,963
|
|
|
9,669
|
|
|
4,083
|
|
|
32,323
|
|
|
6,577
|
|
|
12,878
|
|
|
3,890
|
|
|
1,584
|
|
|
82,967
|
|
|||||||||
Total reserve for loan and lease losses
|
|
$
|
12,012
|
|
|
$
|
9,669
|
|
|
$
|
4,083
|
|
|
$
|
33,814
|
|
|
$
|
6,577
|
|
|
$
|
12,878
|
|
|
$
|
3,890
|
|
|
$
|
1,584
|
|
|
$
|
84,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Recorded investment in loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Ending balance, individually evaluated for impairment
|
|
$
|
11,659
|
|
|
$
|
—
|
|
|
$
|
594
|
|
|
$
|
11,433
|
|
|
$
|
1,214
|
|
|
$
|
15,339
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40,239
|
|
Ending balance, collectively evaluated for impairment
|
|
640,521
|
|
|
417,351
|
|
|
227,434
|
|
|
692,639
|
|
|
314,132
|
|
|
558,940
|
|
|
455,327
|
|
|
121,535
|
|
|
3,427,879
|
|
|||||||||
Total recorded investment in loans
|
|
$
|
652,180
|
|
|
$
|
417,351
|
|
|
$
|
228,028
|
|
|
$
|
704,072
|
|
|
$
|
315,346
|
|
|
$
|
574,279
|
|
|
$
|
455,327
|
|
|
$
|
121,535
|
|
|
$
|
3,468,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(Dollars in thousands)
|
|
Commercial and
agricultural loans
|
|
Auto and
light truck
|
|
Medium and
heavy duty truck
|
|
Aircraft
financing
|
|
Construction
equipment
financing
|
|
Commercial
real estate
|
|
Residential
real estate
|
|
Consumer
loans
|
|
Total
|
||||||||||||||||||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Reserve for loan and lease losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance, beginning of period
|
|
$
|
11,515
|
|
|
$
|
9,657
|
|
|
$
|
4,212
|
|
|
$
|
34,037
|
|
|
$
|
5,972
|
|
|
$
|
12,406
|
|
|
$
|
4,093
|
|
|
$
|
1,613
|
|
|
$
|
83,505
|
|
Charge-offs
|
|
3,228
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
17
|
|
|
46
|
|
|
582
|
|
|
3,906
|
|
|||||||||
Recoveries
|
|
863
|
|
|
1,119
|
|
|
137
|
|
|
161
|
|
|
356
|
|
|
285
|
|
|
93
|
|
|
234
|
|
|
3,248
|
|
|||||||||
Net charge-offs (recoveries)
|
|
2,365
|
|
|
(1,090
|
)
|
|
(137
|
)
|
|
(161
|
)
|
|
(352
|
)
|
|
(268
|
)
|
|
(47
|
)
|
|
348
|
|
|
658
|
|
|||||||||
Provision (recovery of provision)
|
|
6,088
|
|
|
250
|
|
|
106
|
|
|
(2,734
|
)
|
|
133
|
|
|
278
|
|
|
(128
|
)
|
|
560
|
|
|
4,553
|
|
|||||||||
Balance, end of period
|
|
$
|
15,238
|
|
|
$
|
10,997
|
|
|
$
|
4,455
|
|
|
$
|
31,464
|
|
|
$
|
6,457
|
|
|
$
|
12,952
|
|
|
$
|
4,012
|
|
|
$
|
1,825
|
|
|
$
|
87,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Ending balance, individually evaluated for impairment
|
|
$
|
3,415
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
76
|
|
|
$
|
157
|
|
|
$
|
—
|
|
|
$
|
3,648
|
|
Ending balance, collectively evaluated for impairment
|
|
11,823
|
|
|
10,997
|
|
|
4,455
|
|
|
31,464
|
|
|
6,457
|
|
|
12,876
|
|
|
3,855
|
|
|
1,825
|
|
|
83,752
|
|
|||||||||
Total reserve for loan and lease losses
|
|
$
|
15,238
|
|
|
$
|
10,997
|
|
|
$
|
4,455
|
|
|
$
|
31,464
|
|
|
$
|
6,457
|
|
|
$
|
12,952
|
|
|
$
|
4,012
|
|
|
$
|
1,825
|
|
|
$
|
87,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Recorded investment in loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Ending balance, individually evaluated for impairment
|
|
$
|
17,328
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,341
|
|
|
$
|
758
|
|
|
$
|
13,230
|
|
|
$
|
375
|
|
|
$
|
—
|
|
|
$
|
33,032
|
|
Ending balance, collectively evaluated for impairment
|
|
678,881
|
|
|
422,742
|
|
|
249,014
|
|
|
699,453
|
|
|
374,311
|
|
|
602,190
|
|
|
451,133
|
|
|
143,665
|
|
|
3,621,389
|
|
|||||||||
Total recorded investment in loans
|
|
$
|
696,209
|
|
|
$
|
422,742
|
|
|
$
|
249,014
|
|
|
$
|
700,794
|
|
|
$
|
375,069
|
|
|
$
|
615,420
|
|
|
$
|
451,508
|
|
|
$
|
143,665
|
|
|
$
|
3,654,421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Reserve for loan and lease losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance, beginning of period
|
|
$
|
12,326
|
|
|
$
|
8,864
|
|
|
$
|
3,721
|
|
|
$
|
34,205
|
|
|
$
|
5,390
|
|
|
$
|
13,778
|
|
|
$
|
3,652
|
|
|
$
|
1,375
|
|
|
$
|
83,311
|
|
Charge-offs
|
|
463
|
|
|
1
|
|
|
50
|
|
|
1,308
|
|
|
88
|
|
|
164
|
|
|
230
|
|
|
820
|
|
|
3,124
|
|
|||||||||
Recoveries
|
|
355
|
|
|
135
|
|
|
438
|
|
|
782
|
|
|
138
|
|
|
560
|
|
|
12
|
|
|
269
|
|
|
2,689
|
|
|||||||||
Net charge-offs (recoveries)
|
|
108
|
|
|
(134
|
)
|
|
(388
|
)
|
|
526
|
|
|
(50
|
)
|
|
(396
|
)
|
|
218
|
|
|
551
|
|
|
435
|
|
|||||||||
Provision (recovery of provision)
|
|
(206
|
)
|
|
671
|
|
|
(26
|
)
|
|
135
|
|
|
1,137
|
|
|
(1,296
|
)
|
|
456
|
|
|
760
|
|
|
1,631
|
|
|||||||||
Balance, end of period
|
|
$
|
12,012
|
|
|
$
|
9,669
|
|
|
$
|
4,083
|
|
|
$
|
33,814
|
|
|
$
|
6,577
|
|
|
$
|
12,878
|
|
|
$
|
3,890
|
|
|
$
|
1,584
|
|
|
$
|
84,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Ending balance, individually evaluated for impairment
|
|
$
|
49
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,491
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,540
|
|
Ending balance, collectively evaluated for impairment
|
|
11,963
|
|
|
9,669
|
|
|
4,083
|
|
|
32,323
|
|
|
6,577
|
|
|
12,878
|
|
|
3,890
|
|
|
1,584
|
|
|
82,967
|
|
|||||||||
Total reserve for loan and lease losses
|
|
$
|
12,012
|
|
|
$
|
9,669
|
|
|
$
|
4,083
|
|
|
$
|
33,814
|
|
|
$
|
6,577
|
|
|
$
|
12,878
|
|
|
$
|
3,890
|
|
|
$
|
1,584
|
|
|
$
|
84,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Recorded investment in loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Ending balance, individually evaluated for impairment
|
|
$
|
11,659
|
|
|
$
|
—
|
|
|
$
|
594
|
|
|
$
|
11,433
|
|
|
$
|
1,214
|
|
|
$
|
15,339
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40,239
|
|
Ending balance, collectively evaluated for impairment
|
|
640,521
|
|
|
417,351
|
|
|
227,434
|
|
|
692,639
|
|
|
314,132
|
|
|
558,940
|
|
|
455,327
|
|
|
121,535
|
|
|
3,427,879
|
|
|||||||||
Total recorded investment in loans
|
|
$
|
652,180
|
|
|
$
|
417,351
|
|
|
$
|
228,028
|
|
|
$
|
704,072
|
|
|
$
|
315,346
|
|
|
$
|
574,279
|
|
|
$
|
455,327
|
|
|
$
|
121,535
|
|
|
$
|
3,468,118
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balance at beginning of period
|
|
$
|
4,695
|
|
|
$
|
4,634
|
|
|
$
|
4,844
|
|
|
$
|
4,645
|
|
Additions
|
|
443
|
|
|
572
|
|
|
890
|
|
|
1,498
|
|
||||
Amortization
|
|
(334
|
)
|
|
(328
|
)
|
|
(930
|
)
|
|
(1,265
|
)
|
||||
Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Carrying value before valuation allowance at end of period
|
|
4,804
|
|
|
4,878
|
|
|
4,804
|
|
|
4,878
|
|
||||
Valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balance at beginning of period
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Impairment (charges) recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance at end of period
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net carrying value of mortgage servicing rights at end of period
|
|
$
|
4,804
|
|
|
$
|
4,878
|
|
|
$
|
4,804
|
|
|
$
|
4,878
|
|
Fair value of mortgage servicing rights at end of period
|
|
$
|
7,791
|
|
|
$
|
7,656
|
|
|
$
|
7,791
|
|
|
$
|
7,656
|
|
|
|
|
|
Asset derivatives
|
|
Liability derivatives
|
||||||||||
(Dollars in thousands)
|
|
Notional or contractual amount
|
|
Statement of Financial Condition classification
|
|
Fair value
|
|
Statement of Financial Condition classification
|
|
Fair value
|
||||||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest rate swap contracts
|
|
$
|
460,409
|
|
|
Other assets
|
|
$
|
8,548
|
|
|
Other liabilities
|
|
$
|
8,713
|
|
Loan commitments
|
|
13,409
|
|
|
N/A
|
|
—
|
|
|
Mortgages held for sale
|
|
3
|
|
|||
Forward contracts - mortgage loan
|
|
20,700
|
|
|
N/A
|
|
—
|
|
|
Mortgages held for sale
|
|
52
|
|
|||
Forward contracts - foreign exchange
|
|
863
|
|
|
N/A
|
|
—
|
|
|
Other assets
|
|
1
|
|
|||
Total
|
|
$
|
495,381
|
|
|
|
|
$
|
8,548
|
|
|
|
|
$
|
8,769
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest rate swap contracts
|
|
$
|
462,790
|
|
|
Other assets
|
|
$
|
9,894
|
|
|
Other liabilities
|
|
$
|
10,087
|
|
Loan commitments
|
|
7,878
|
|
|
Mortgages held for sale
|
|
12
|
|
|
N/A
|
|
—
|
|
|||
Forward contracts - mortgage loan
|
|
10,600
|
|
|
Mortgages held for sale
|
|
121
|
|
|
N/A
|
|
—
|
|
|||
Forward contracts - foreign exchange
|
|
1,308
|
|
|
N/A
|
|
—
|
|
|
Other assets
|
|
7
|
|
|||
Total
|
|
$
|
482,576
|
|
|
|
|
$
|
10,027
|
|
|
|
|
$
|
10,094
|
|
|
|
|
|
Gain (loss)
|
||||||||||||||
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(Dollars in thousands)
|
|
Statement of Income classification
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Interest rate swap contracts
|
|
Other expense
|
|
$
|
30
|
|
|
$
|
(2
|
)
|
|
$
|
29
|
|
|
$
|
111
|
|
Interest rate swap contracts
|
|
Other income
|
|
11
|
|
|
169
|
|
|
206
|
|
|
567
|
|
||||
Loan commitments
|
|
Mortgage banking income
|
|
(42
|
)
|
|
(71
|
)
|
|
(15
|
)
|
|
(138
|
)
|
||||
Forward contracts - mortgage loan
|
|
Mortgage banking income
|
|
213
|
|
|
(943
|
)
|
|
(173
|
)
|
|
(146
|
)
|
||||
Forward contracts - foreign exchange
|
|
Other income
|
|
82
|
|
|
—
|
|
|
78
|
|
|
—
|
|
||||
Total
|
|
|
|
$
|
294
|
|
|
$
|
(847
|
)
|
|
$
|
125
|
|
|
$
|
394
|
|
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the Statement of Financial Condition
|
|
|
||||||||||||||
(Dollars in thousands)
|
|
Gross Amounts of Recognized Assets
|
|
Gross Amounts Offset in the Statement of Financial Condition
|
|
Net Amounts of Assets Presented in the Statement of Financial Condition
|
|
Financial Instruments
|
|
Cash Collateral Received
|
|
Net Amount
|
||||||||||||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swaps
|
|
$
|
8,930
|
|
|
$
|
382
|
|
|
$
|
8,548
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swaps
|
|
$
|
10,511
|
|
|
$
|
617
|
|
|
$
|
9,894
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,894
|
|
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the Statement of Financial Condition
|
|
|
||||||||||||||
(Dollars in thousands)
|
|
Gross Amounts of Recognized Liabilities
|
|
Gross Amounts Offset in the Statement of Financial Condition
|
|
Net Amounts of Liabilities Presented in the Statement of Financial Condition
|
|
Financial Instruments
|
|
Cash Collateral Pledged
|
|
Net Amount
|
||||||||||||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swaps
|
|
$
|
9,095
|
|
|
$
|
382
|
|
|
$
|
8,713
|
|
|
$
|
—
|
|
|
$
|
8,097
|
|
|
$
|
616
|
|
Repurchase agreements
|
|
106,769
|
|
|
—
|
|
|
106,769
|
|
|
106,769
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
115,864
|
|
|
$
|
382
|
|
|
$
|
115,482
|
|
|
$
|
106,769
|
|
|
$
|
8,097
|
|
|
$
|
616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swaps
|
|
$
|
10,704
|
|
|
$
|
617
|
|
|
$
|
10,087
|
|
|
$
|
—
|
|
|
$
|
8,409
|
|
|
$
|
1,678
|
|
Repurchase agreements
|
|
117,620
|
|
|
—
|
|
|
117,620
|
|
|
117,620
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
128,324
|
|
|
$
|
617
|
|
|
$
|
127,707
|
|
|
$
|
117,620
|
|
|
$
|
8,409
|
|
|
$
|
1,678
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(Dollars in thousands - except per share amounts)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Distributed earnings allocated to common stock
|
|
$
|
4,299
|
|
|
$
|
4,146
|
|
|
$
|
12,796
|
|
|
$
|
12,429
|
|
Undistributed earnings allocated to common stock
|
|
10,466
|
|
|
10,552
|
|
|
29,733
|
|
|
28,271
|
|
||||
Net earnings allocated to common stock
|
|
14,765
|
|
|
14,698
|
|
|
42,529
|
|
|
40,700
|
|
||||
Net earnings allocated to participating securities
|
|
182
|
|
|
198
|
|
|
544
|
|
|
542
|
|
||||
Net income allocated to common stock and participating securities
|
|
$
|
14,947
|
|
|
$
|
14,896
|
|
|
$
|
43,073
|
|
|
$
|
41,242
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding for basic earnings per common share
|
|
23,875,331
|
|
|
24,366,220
|
|
|
24,088,636
|
|
|
24,352,073
|
|
||||
Dilutive effect of stock compensation
|
|
—
|
|
|
889
|
|
|
—
|
|
|
781
|
|
||||
Weighted average shares outstanding for diluted earnings per common share
|
|
23,875,331
|
|
|
24,367,109
|
|
|
24,088,636
|
|
|
24,352,854
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share
|
|
$
|
0.62
|
|
|
$
|
0.60
|
|
|
$
|
1.77
|
|
|
$
|
1.67
|
|
Diluted earnings per common share
|
|
$
|
0.62
|
|
|
$
|
0.60
|
|
|
$
|
1.77
|
|
|
$
|
1.67
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
Affected Line Item in the Statements of Income
|
||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Realized gains (losses) included in net income
|
|
$
|
—
|
|
|
$
|
(28
|
)
|
|
$
|
963
|
|
|
$
|
(28
|
)
|
|
Gains (losses) on investment securities available-for-sale
|
|
|
—
|
|
|
(28
|
)
|
|
963
|
|
|
(28
|
)
|
|
Income before income taxes
|
||||
Tax effect
|
|
—
|
|
|
11
|
|
|
(361
|
)
|
|
11
|
|
|
Income tax expense
|
||||
Net of tax
|
|
$
|
—
|
|
|
$
|
(17
|
)
|
|
$
|
602
|
|
|
$
|
(17
|
)
|
|
Net income
|
•
|
Level 2 — The valuation is based on observable inputs such as 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 3 — The valuation is based on unobservable inputs that are supported by minimal or no market activity and that are significant to the fair value of the instrument. Level 3 valuations are typically performed using pricing models, discounted cash flow methodologies, or similar techniques that incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument, or valuations that require significant management judgment or estimation.
|
(Dollars in thousands)
|
|
Fair value carrying
amount
|
|
Aggregate
unpaid principal
|
|
Excess of fair value carrying amount over (under) unpaid principal
|
|
|
||||||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|||
Mortgages held for sale reported at fair value
|
|
$
|
13,070
|
|
|
$
|
13,126
|
|
|
$
|
(56
|
)
|
|
(1)
|
|
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|||
Mortgages held for sale reported at fair value
|
|
$
|
6,079
|
|
|
$
|
5,974
|
|
|
$
|
105
|
|
|
(1)
|
|
(1)
|
The excess of fair value carrying amount over (under) unpaid principal is included in mortgage banking income and includes changes in fair value at and subsequent to funding and gains and losses on the related loan commitment prior to funding.
|
•
|
U.S. treasuries are priced using the market approach and utilizing live data feeds from active market exchanges for identical securities.
|
•
|
Government-sponsored agency debt securities and corporate bonds are primarily priced using available market information through processes such as benchmark curves, market valuations of like securities, sector groupings and matrix pricing.
|
•
|
Other government-sponsored agency securities, mortgage-backed securities and some of the actively traded REMICs and CMOs, are primarily priced using available market information including benchmark yields, prepayment speeds, spreads and volatility of similar securities.
|
•
|
Other inactive government-sponsored agency securities are primarily priced using consensus pricing and dealer quotes.
|
•
|
State and political subdivisions are largely grouped by characteristics, i.e., geographical data and source of revenue in trade dissemination systems. Since some securities are not traded daily and due to other grouping limitations, active market quotes are often obtained using benchmarking for like securities. Local direct placement municipal securities, with very little market activity, are priced using an appropriate market yield curve.
|
•
|
Marketable equity (common) securities are primarily priced using the market approach and utilizing live data feeds from active market exchanges for identical securities.
|
(Dollars in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury and Federal agencies securities
|
|
$
|
19,744
|
|
|
$
|
374,155
|
|
|
$
|
—
|
|
|
$
|
393,899
|
|
U.S. States and political subdivisions securities
|
|
—
|
|
|
123,093
|
|
|
3,922
|
|
|
127,015
|
|
||||
Mortgage-backed securities — Federal agencies
|
|
—
|
|
|
253,461
|
|
|
—
|
|
|
253,461
|
|
||||
Corporate debt securities
|
|
—
|
|
|
31,979
|
|
|
—
|
|
|
31,979
|
|
||||
Foreign government and other securities
|
|
—
|
|
|
—
|
|
|
808
|
|
|
808
|
|
||||
Total debt securities
|
|
19,744
|
|
|
782,688
|
|
|
4,730
|
|
|
807,162
|
|
||||
Marketable equity securities
|
|
6,542
|
|
|
—
|
|
|
—
|
|
|
6,542
|
|
||||
Total investment securities available-for-sale
|
|
26,286
|
|
|
782,688
|
|
|
4,730
|
|
|
813,704
|
|
||||
Trading account securities
|
|
196
|
|
|
—
|
|
|
—
|
|
|
196
|
|
||||
Mortgages held for sale
|
|
—
|
|
|
13,070
|
|
|
—
|
|
|
13,070
|
|
||||
Accrued income and other assets (interest rate swap agreements)
|
|
—
|
|
|
8,548
|
|
|
—
|
|
|
8,548
|
|
||||
Total
|
|
$
|
26,482
|
|
|
$
|
804,306
|
|
|
$
|
4,730
|
|
|
$
|
835,518
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accrued expenses and other liabilities (interest rate swap agreements)
|
|
$
|
—
|
|
|
$
|
8,713
|
|
|
$
|
—
|
|
|
$
|
8,713
|
|
Total
|
|
$
|
—
|
|
|
$
|
8,713
|
|
|
$
|
—
|
|
|
$
|
8,713
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury and Federal agencies securities
|
|
$
|
19,631
|
|
|
$
|
375,408
|
|
|
$
|
—
|
|
|
$
|
395,039
|
|
U.S. States and political subdivisions securities
|
|
—
|
|
|
117,741
|
|
|
5,498
|
|
|
123,239
|
|
||||
Mortgage-backed securities — Federal agencies
|
|
—
|
|
|
275,080
|
|
|
—
|
|
|
275,080
|
|
||||
Corporate debt securities
|
|
—
|
|
|
31,065
|
|
|
—
|
|
|
31,065
|
|
||||
Foreign government and other securities
|
|
—
|
|
|
709
|
|
|
—
|
|
|
709
|
|
||||
Total debt securities
|
|
19,631
|
|
|
800,003
|
|
|
5,498
|
|
|
825,132
|
|
||||
Marketable equity securities
|
|
7,568
|
|
|
—
|
|
|
—
|
|
|
7,568
|
|
||||
Total investment securities available-for-sale
|
|
27,199
|
|
|
800,003
|
|
|
5,498
|
|
|
832,700
|
|
||||
Trading account securities
|
|
192
|
|
|
—
|
|
|
—
|
|
|
192
|
|
||||
Mortgages held for sale
|
|
—
|
|
|
6,079
|
|
|
—
|
|
|
6,079
|
|
||||
Accrued income and other assets (interest rate swap agreements)
|
|
—
|
|
|
9,894
|
|
|
—
|
|
|
9,894
|
|
||||
Total
|
|
$
|
27,391
|
|
|
$
|
815,976
|
|
|
$
|
5,498
|
|
|
$
|
848,865
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accrued expenses and other liabilities (interest rate swap agreements)
|
|
$
|
—
|
|
|
$
|
10,087
|
|
|
$
|
—
|
|
|
$
|
10,087
|
|
Total
|
|
$
|
—
|
|
|
$
|
10,087
|
|
|
$
|
—
|
|
|
$
|
10,087
|
|
(Dollars in thousands)
|
|
U.S. States and
political
subdivisions
securities
|
|
Foreign government and other securities
|
|
Investment securities available-for-sale
|
||||||
Beginning balance July 1, 2014
|
|
$
|
4,699
|
|
|
$
|
905
|
|
|
$
|
5,604
|
|
Total gains or losses (realized/unrealized):
|
|
|
|
|
|
|
|
|||||
Included in earnings
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Included in other comprehensive income
|
|
(14
|
)
|
|
3
|
|
|
(11
|
)
|
|||
Purchases
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Issuances
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Settlements
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Maturities
|
|
(763
|
)
|
|
(100
|
)
|
|
(863
|
)
|
|||
Transfers into Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Transfers out of Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Ending balance September 30, 2014
|
|
$
|
3,922
|
|
|
$
|
808
|
|
|
$
|
4,730
|
|
|
|
|
|
|
|
|
||||||
Beginning balance July 1, 2013
|
|
$
|
5,452
|
|
|
$
|
—
|
|
|
$
|
5,452
|
|
Total gains or losses (realized/unrealized):
|
|
|
|
|
|
|
|
|||||
Included in earnings
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Included in other comprehensive income
|
|
56
|
|
|
—
|
|
|
56
|
|
|||
Purchases
|
|
1,500
|
|
|
—
|
|
|
1,500
|
|
|||
Issuances
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Settlements
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Maturities
|
|
(491
|
)
|
|
—
|
|
|
(491
|
)
|
|||
Transfers into Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Transfers out of Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Ending balance September 30, 2013
|
|
$
|
6,517
|
|
|
$
|
—
|
|
|
$
|
6,517
|
|
(Dollars in thousands)
|
|
Fair Value
|
|
Valuation Methodology
|
|
Unobservable Inputs
|
|
Range of Inputs
|
||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
Investment securities available-for sale
|
|
|
|
|
|
|
|
|
|
|
Direct placement municipal securities
|
|
$
|
3,922
|
|
|
Discounted cash flows
|
|
Credit spread assumption
|
|
0.69% - 1.29%
|
|
|
|
|
|
|
|
|
|
||
Foreign government
|
|
$
|
808
|
|
|
Discounted cash flows
|
|
Market yield assumption
|
|
0.42% - 1.57%
|
|
|
|
|
|
|
|
|
|
||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
Investment securities available-for sale
|
|
|
|
|
|
|
|
|
|
|
Direct placement municipal securities
|
|
$
|
5,498
|
|
|
Discounted cash flows
|
|
Credit spread assumption
|
|
0.90% - 1.52%
|
(Dollars in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans - collateral based
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,016
|
|
|
$
|
8,016
|
|
Accrued income and other assets (partnership investments)
|
|
—
|
|
|
—
|
|
|
1,377
|
|
|
1,377
|
|
||||
Accrued income and other assets (mortgage servicing rights)
|
|
—
|
|
|
—
|
|
|
4,804
|
|
|
4,804
|
|
||||
Accrued income and other assets (repossessions)
|
|
—
|
|
|
—
|
|
|
5,421
|
|
|
5,421
|
|
||||
Accrued income and other assets (other real estate)
|
|
—
|
|
|
—
|
|
|
2,234
|
|
|
2,234
|
|
||||
Total
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21,852
|
|
|
$
|
21,852
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans - collateral based
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
670
|
|
|
$
|
670
|
|
Accrued income and other assets (partnership investments)
|
|
—
|
|
|
—
|
|
|
2,156
|
|
|
2,156
|
|
||||
Accrued income and other assets (mortgage servicing rights)
|
|
—
|
|
|
—
|
|
|
4,844
|
|
|
4,844
|
|
||||
Accrued income and other assets (repossessions)
|
|
—
|
|
|
—
|
|
|
4,262
|
|
|
4,262
|
|
||||
Accrued income and other assets (other real estate)
|
|
—
|
|
|
—
|
|
|
5,490
|
|
|
5,490
|
|
||||
Total
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17,422
|
|
|
$
|
17,422
|
|
(Dollars in thousands)
|
|
Carrying Value
|
|
Fair Value
|
|
Valuation Methodology
|
|
Unobservable Inputs
|
|
Range of Inputs
|
||||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
|
$
|
8,016
|
|
|
$
|
8,016
|
|
|
Collateral based measurements including appraisals, trade publications, and auction values
|
|
Discount for lack of marketability and current conditions
|
|
10% - 90%
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mortgage servicing rights
|
|
4,804
|
|
|
7,791
|
|
|
Discounted cash flows
|
|
Constant prepayment rate (CPR)
|
|
9.2% - 13.8%
|
||
|
|
|
|
|
|
|
|
|
|
Discount rate
|
|
9.8% - 13.3%
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Repossessions
|
|
5,421
|
|
|
5,720
|
|
|
Appraisals, trade publications and auction values
|
|
Discount for lack of marketability
|
|
0% - 11%
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Other real estate
|
|
2,234
|
|
|
2,741
|
|
|
Appraisals
|
|
Discount for lack of marketability
|
|
6% - 73%
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
|
$
|
670
|
|
|
$
|
670
|
|
|
Collateral based measurements including appraisals, trade publications, and auction values
|
|
Discount for lack of marketability and current conditions
|
|
20% - 35%
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mortgage servicing rights
|
|
4,844
|
|
|
8,127
|
|
|
Discounted cash flows
|
|
Constant prepayment rate (CPR)
|
|
9.9% - 11.9%
|
||
|
|
|
|
|
|
|
|
|
|
Discount rate
|
|
10.0% - 13.0%
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Repossessions
|
|
4,262
|
|
|
4,435
|
|
|
Appraisals, trade publications and auction values
|
|
Discount for lack of marketability
|
|
0% - 16%
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Other real estate
|
|
5,490
|
|
|
6,606
|
|
|
Appraisals
|
|
Discount for lack of marketability
|
|
0% - 48%
|
(Dollars in thousands)
|
|
Carrying or Contract Value
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and due from banks
|
|
$
|
54,542
|
|
|
$
|
54,542
|
|
|
$
|
54,542
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Federal funds sold and interest bearing deposits with other banks
|
|
27,169
|
|
|
27,169
|
|
|
27,169
|
|
|
—
|
|
|
—
|
|
|||||
Investment securities, available-for-sale
|
|
813,704
|
|
|
813,704
|
|
|
26,286
|
|
|
782,688
|
|
|
4,730
|
|
|||||
Other investments and trading account securities
|
|
23,213
|
|
|
23,213
|
|
|
23,213
|
|
|
—
|
|
|
—
|
|
|||||
Mortgages held for sale
|
|
13,070
|
|
|
13,070
|
|
|
—
|
|
|
13,070
|
|
|
—
|
|
|||||
Loans and leases, net of reserve for loan and lease losses
|
|
3,567,021
|
|
|
3,591,915
|
|
|
—
|
|
|
—
|
|
|
3,591,915
|
|
|||||
Cash surrender value of life insurance policies
|
|
60,048
|
|
|
60,048
|
|
|
60,048
|
|
|
—
|
|
|
—
|
|
|||||
Mortgage servicing rights
|
|
4,804
|
|
|
7,791
|
|
|
—
|
|
|
—
|
|
|
7,791
|
|
|||||
Interest rate swaps
|
|
8,548
|
|
|
8,548
|
|
|
—
|
|
|
8,548
|
|
|
—
|
|
|||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits
|
|
$
|
3,835,972
|
|
|
$
|
3,836,542
|
|
|
$
|
2,775,174
|
|
|
$
|
1,061,368
|
|
|
$
|
—
|
|
Short-term borrowings
|
|
216,722
|
|
|
216,722
|
|
|
111,570
|
|
|
105,152
|
|
|
—
|
|
|||||
Long-term debt and mandatorily redeemable securities
|
|
56,171
|
|
|
55,787
|
|
|
—
|
|
|
55,787
|
|
|
—
|
|
|||||
Subordinated notes
|
|
58,764
|
|
|
66,296
|
|
|
—
|
|
|
66,296
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
8,713
|
|
|
8,713
|
|
|
—
|
|
|
8,713
|
|
|
—
|
|
|||||
Off-balance-sheet instruments *
|
|
—
|
|
|
189
|
|
|
—
|
|
|
189
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and due from banks
|
|
$
|
77,568
|
|
|
$
|
77,568
|
|
|
$
|
77,568
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Federal funds sold and interest bearing deposits with other banks
|
|
2,484
|
|
|
2,484
|
|
|
2,484
|
|
|
—
|
|
|
—
|
|
|||||
Investment securities, available-for-sale
|
|
832,700
|
|
|
832,700
|
|
|
27,199
|
|
|
800,003
|
|
|
5,498
|
|
|||||
Other investments and trading account securities
|
|
22,592
|
|
|
22,592
|
|
|
22,592
|
|
|
—
|
|
|
—
|
|
|||||
Mortgages held for sale
|
|
6,079
|
|
|
6,079
|
|
|
—
|
|
|
6,079
|
|
|
—
|
|
|||||
Loans and leases, net of reserve for loan and lease losses
|
|
3,465,819
|
|
|
3,491,718
|
|
|
—
|
|
|
—
|
|
|
3,491,718
|
|
|||||
Cash surrender value of life insurance policies
|
|
58,558
|
|
|
58,558
|
|
|
58,558
|
|
|
—
|
|
|
—
|
|
|||||
Mortgage servicing rights
|
|
4,844
|
|
|
8,127
|
|
|
—
|
|
|
—
|
|
|
8,127
|
|
|||||
Interest rate swaps
|
|
9,894
|
|
|
9,894
|
|
|
—
|
|
|
9,894
|
|
|
—
|
|
|||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits
|
|
$
|
3,653,650
|
|
|
$
|
3,657,586
|
|
|
$
|
2,722,804
|
|
|
$
|
934,782
|
|
|
$
|
—
|
|
Short-term borrowings
|
|
314,131
|
|
|
314,131
|
|
|
184,304
|
|
|
129,827
|
|
|
—
|
|
|||||
Long-term debt and mandatorily redeemable securities
|
|
58,335
|
|
|
56,896
|
|
|
—
|
|
|
56,896
|
|
|
—
|
|
|||||
Subordinated notes
|
|
58,764
|
|
|
62,602
|
|
|
—
|
|
|
62,602
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
10,087
|
|
|
10,087
|
|
|
—
|
|
|
10,087
|
|
|
—
|
|
|||||
Off-balance-sheet instruments *
|
|
—
|
|
|
177
|
|
|
—
|
|
|
177
|
|
|
—
|
|
|
(Dollars in thousands)
|
|
September 30,
2014 |
|
December 31,
2013 |
||||
Accrued income and other assets:
|
|
|
|
|
|
|
||
Bank owned life insurance cash surrender value
|
|
$
|
60,048
|
|
|
$
|
58,558
|
|
Accrued interest receivable
|
|
13,482
|
|
|
12,537
|
|
||
Mortgage servicing rights
|
|
4,804
|
|
|
4,844
|
|
||
Other real estate
|
|
1,433
|
|
|
4,539
|
|
||
Former bank premises held for sale
|
|
801
|
|
|
951
|
|
||
Repossessions
|
|
5,421
|
|
|
4,262
|
|
||
All other assets
|
|
37,139
|
|
|
35,953
|
|
||
Total accrued income and other assets
|
|
$
|
123,128
|
|
|
$
|
121,644
|
|
|
|
Actual
|
|
Minimum Capital Adequacy
|
|
To Be Well Capitalized Under Prompt Corrective Action Provisions
|
|||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
Total Capital (to Risk-Weighted Assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
1st Source Corporation
|
|
$
|
617,226
|
|
|
15.80
|
%
|
|
$
|
312,473
|
|
|
8.00
|
%
|
|
$
|
390,591
|
|
|
10.00
|
%
|
1st Source Bank
|
|
589,944
|
|
|
15.14
|
|
|
311,746
|
|
|
8.00
|
|
|
389,682
|
|
|
10.00
|
|
|||
Tier 1 Capital (to Risk-Weighted Assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
1st Source Corporation
|
|
565,802
|
|
|
14.49
|
|
|
156,236
|
|
|
4.00
|
|
|
234,354
|
|
|
6.00
|
|
|||
1st Source Bank
|
|
540,569
|
|
|
13.87
|
|
|
155,873
|
|
|
4.00
|
|
|
233,809
|
|
|
6.00
|
|
|||
Tier 1 Capital (to Average Assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
1st Source Corporation
|
|
565,802
|
|
|
11.89
|
|
|
190,313
|
|
|
4.00
|
|
|
237,891
|
|
|
5.00
|
|
|||
1st Source Bank
|
|
540,569
|
|
|
11.38
|
|
|
189,979
|
|
|
4.00
|
|
|
237,474
|
|
|
5.00
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Average
Balance
|
|
Interest Income/Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest Income/Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest Income/Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest Income/Expense
|
|
Yield/
Rate
|
||||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Taxable
|
$
|
680,512
|
|
|
$
|
2,962
|
|
|
1.73
|
%
|
|
$
|
717,081
|
|
|
$
|
3,581
|
|
|
1.98
|
%
|
|
$
|
697,435
|
|
|
$
|
9,708
|
|
|
1.86
|
%
|
|
$
|
736,192
|
|
|
$
|
10,774
|
|
|
1.96
|
%
|
Tax exempt
|
128,079
|
|
|
1,229
|
|
|
3.81
|
%
|
|
108,395
|
|
|
1,126
|
|
|
4.12
|
%
|
|
127,795
|
|
|
3,648
|
|
|
3.82
|
%
|
|
105,825
|
|
|
3,385
|
|
|
4.28
|
%
|
||||||||
Mortgages held for sale
|
13,624
|
|
|
138
|
|
|
4.02
|
%
|
|
7,979
|
|
|
87
|
|
|
4.33
|
%
|
|
11,009
|
|
|
344
|
|
|
4.18
|
%
|
|
8,329
|
|
|
235
|
|
|
3.77
|
%
|
||||||||
Net loans and leases
|
3,700,708
|
|
|
41,046
|
|
|
4.40
|
%
|
|
3,483,942
|
|
|
42,389
|
|
|
4.83
|
%
|
|
3,635,938
|
|
|
120,301
|
|
|
4.42
|
%
|
|
3,415,752
|
|
|
121,714
|
|
|
4.76
|
%
|
||||||||
Other investments
|
39,797
|
|
|
241
|
|
|
2.40
|
%
|
|
34,186
|
|
|
229
|
|
|
2.66
|
%
|
|
33,767
|
|
|
750
|
|
|
2.97
|
%
|
|
47,644
|
|
|
712
|
|
|
2.00
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Total earning assets
|
4,562,720
|
|
|
45,616
|
|
|
3.97
|
%
|
|
4,351,583
|
|
|
47,412
|
|
|
4.32
|
%
|
|
4,505,944
|
|
|
134,751
|
|
|
4.00
|
%
|
|
4,313,742
|
|
|
136,820
|
|
|
4.24
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Cash and due from banks
|
62,661
|
|
|
|
|
|
|
58,122
|
|
|
|
|
|
|
61,486
|
|
|
|
|
|
|
|
58,648
|
|
|
|
|
|
|
|
|||||||||||||
Reserve for loan and lease losses
|
(89,516
|
)
|
|
|
|
|
|
(86,570
|
)
|
|
|
|
|
|
(86,636
|
)
|
|
|
|
|
|
|
(85,204
|
)
|
|
|
|
|
|
|
|||||||||||||
Other assets
|
320,302
|
|
|
|
|
|
|
302,822
|
|
|
|
|
|
|
315,000
|
|
|
|
|
|
|
|
306,846
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Total assets
|
$
|
4,856,167
|
|
|
|
|
|
|
$
|
4,625,957
|
|
|
|
|
|
|
$
|
4,795,794
|
|
|
|
|
|
|
|
$
|
4,594,032
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Interest-bearing deposits
|
$
|
3,051,988
|
|
|
$
|
2,765
|
|
|
0.36
|
%
|
|
$
|
2,992,091
|
|
|
$
|
4,089
|
|
|
0.54
|
%
|
|
$
|
3,012,319
|
|
|
$
|
8,730
|
|
|
0.39
|
%
|
|
$
|
3,016,570
|
|
|
$
|
13,043
|
|
|
0.58
|
%
|
Short-term borrowings
|
260,417
|
|
|
134
|
|
|
0.20
|
%
|
|
186,064
|
|
|
72
|
|
|
0.15
|
%
|
|
277,808
|
|
|
440
|
|
|
0.21
|
%
|
|
148,626
|
|
|
149
|
|
|
0.13
|
%
|
||||||||
Subordinated notes
|
58,764
|
|
|
1,055
|
|
|
7.12
|
%
|
|
58,764
|
|
|
1,055
|
|
|
7.12
|
%
|
|
58,764
|
|
|
3,165
|
|
|
7.20
|
%
|
|
58,764
|
|
|
3,165
|
|
|
7.20
|
%
|
||||||||
Long-term debt and mandatorily redeemable securities
|
56,796
|
|
|
488
|
|
|
3.41
|
%
|
|
58,244
|
|
|
592
|
|
|
4.03
|
%
|
|
58,319
|
|
|
1,533
|
|
|
3.51
|
%
|
|
64,307
|
|
|
1,315
|
|
|
2.73
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Total interest bearing liabilities
|
3,427,965
|
|
|
4,442
|
|
|
0.51
|
%
|
|
3,295,163
|
|
|
5,808
|
|
|
0.70
|
%
|
|
3,407,210
|
|
|
13,868
|
|
|
0.54
|
%
|
|
3,288,267
|
|
|
17,672
|
|
|
0.72
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Noninterest-bearing deposits
|
778,255
|
|
|
|
|
|
|
|
|
705,778
|
|
|
|
|
|
|
|
|
743,015
|
|
|
|
|
|
|
|
|
677,269
|
|
|
|
|
|
|
|
||||||||
Other liabilities
|
48,503
|
|
|
|
|
|
|
|
|
50,427
|
|
|
|
|
|
|
|
|
47,070
|
|
|
|
|
|
|
|
|
56,804
|
|
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
601,444
|
|
|
|
|
|
|
|
|
574,589
|
|
|
|
|
|
|
|
|
598,499
|
|
|
|
|
|
|
|
|
571,692
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
4,856,167
|
|
|
|
|
|
|
|
|
$
|
4,625,957
|
|
|
|
|
|
|
|
|
$
|
4,795,794
|
|
|
|
|
|
|
|
|
$
|
4,594,032
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net interest income
|
|
|
|
$
|
41,174
|
|
|
|
|
|
|
|
|
$
|
41,604
|
|
|
|
|
|
|
|
|
$
|
120,883
|
|
|
|
|
|
|
|
|
$
|
119,148
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Net interest margin on a tax equivalent basis
|
|
|
|
|
|
|
3.58
|
%
|
|
|
|
|
|
|
|
3.79
|
%
|
|
|
|
|
|
|
|
3.59
|
%
|
|
|
|
|
|
|
|
3.69
|
%
|
(Dollars in thousands)
|
|
September 30,
2014 |
|
December 31,
2013 |
|
September 30,
2013 |
||||||
Loans and leases past due 90 days or more
|
|
$
|
750
|
|
|
$
|
287
|
|
|
$
|
245
|
|
Nonaccrual loans and leases
|
|
26,524
|
|
|
36,707
|
|
|
31,325
|
|
|||
Other real estate
|
|
1,433
|
|
|
4,539
|
|
|
5,002
|
|
|||
Former bank premises held for sale
|
|
801
|
|
|
951
|
|
|
951
|
|
|||
Repossessions
|
|
5,421
|
|
|
4,262
|
|
|
2,811
|
|
|||
Equipment owned under operating leases
|
|
15
|
|
|
—
|
|
|
—
|
|
|||
Total nonperforming assets
|
|
$
|
34,944
|
|
|
$
|
46,746
|
|
|
$
|
40,334
|
|
(Dollars in thousands)
|
|
September 30,
2014 |
|
December 31,
2013 |
|
September 30,
2013 |
||||||
Commercial and agricultural loans
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
—
|
|
Auto and light truck
|
|
77
|
|
|
145
|
|
|
96
|
|
|||
Medium and heavy duty truck
|
|
66
|
|
|
—
|
|
|
66
|
|
|||
Aircraft financing
|
|
5,260
|
|
|
4,082
|
|
|
2,632
|
|
|||
Construction equipment financing
|
|
88
|
|
|
—
|
|
|
—
|
|
|||
Commercial real estate
|
|
537
|
|
|
3,101
|
|
|
3,589
|
|
|||
Residential real estate
|
|
546
|
|
|
959
|
|
|
1,060
|
|
|||
Consumer loans
|
|
280
|
|
|
491
|
|
|
370
|
|
|||
Total
|
|
$
|
6,854
|
|
|
$
|
8,801
|
|
|
$
|
7,813
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Trust fees
|
|
$
|
4,499
|
|
|
$
|
5,260
|
|
|
$
|
13,930
|
|
|
$
|
13,800
|
|
Service charges on deposit accounts
|
|
2,225
|
|
|
2,364
|
|
|
6,498
|
|
|
6,928
|
|
||||
Debit card income
|
|
2,382
|
|
|
2,343
|
|
|
7,077
|
|
|
6,752
|
|
||||
Mortgage banking income
|
|
1,446
|
|
|
1,103
|
|
|
3,961
|
|
|
4,667
|
|
||||
Insurance commissions
|
|
1,317
|
|
|
1,292
|
|
|
4,168
|
|
|
4,131
|
|
||||
Equipment rental income
|
|
4,361
|
|
|
4,000
|
|
|
12,541
|
|
|
12,098
|
|
||||
Gains (losses) on investment securities available-for-sale
|
|
—
|
|
|
(28
|
)
|
|
963
|
|
|
(28
|
)
|
||||
Other income
|
|
3,162
|
|
|
3,824
|
|
|
8,873
|
|
|
10,879
|
|
||||
Total noninterest income
|
|
$
|
19,392
|
|
|
$
|
20,158
|
|
|
$
|
58,011
|
|
|
$
|
59,227
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(Dollars in thousands)
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Salaries and employee benefits
|
|
$
|
20,790
|
|
|
$
|
20,441
|
|
|
$
|
59,099
|
|
|
$
|
59,553
|
|
Net occupancy expense
|
|
2,252
|
|
|
2,126
|
|
|
6,924
|
|
|
6,480
|
|
||||
Furniture and equipment expense
|
|
4,415
|
|
|
4,477
|
|
|
13,065
|
|
|
12,285
|
|
||||
Depreciation - leased equipment
|
|
3,571
|
|
|
3,246
|
|
|
10,110
|
|
|
9,745
|
|
||||
Professional fees
|
|
1,158
|
|
|
1,178
|
|
|
3,348
|
|
|
3,843
|
|
||||
Supplies and communication
|
|
1,424
|
|
|
1,330
|
|
|
4,153
|
|
|
4,365
|
|
||||
FDIC and other insurance
|
|
856
|
|
|
874
|
|
|
2,570
|
|
|
2,679
|
|
||||
Business development and marketing expense
|
|
1,218
|
|
|
1,306
|
|
|
3,801
|
|
|
3,011
|
|
||||
Loan and lease collection and repossession expense
|
|
652
|
|
|
1,530
|
|
|
140
|
|
|
3,382
|
|
||||
Other expense
|
|
1,317
|
|
|
1,922
|
|
|
4,839
|
|
|
5,381
|
|
||||
Total noninterest expense
|
|
$
|
37,653
|
|
|
$
|
38,430
|
|
|
$
|
108,049
|
|
|
$
|
110,724
|
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs*
|
|
Maximum Number (or Approximate Dollar Value) of Shares that may yet be Purchased Under the Plans or Programs
|
|||||
July 01 - 31, 2014
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
2,000,000
|
|
August 01 - 31, 2014
|
|
600
|
|
|
29.10
|
|
|
600
|
|
|
1,999,400
|
|
|
September 01 - 30, 2014
|
|
17,948
|
|
|
29.40
|
|
|
17,948
|
|
|
1,981,452
|
|
|
10 (h)
|
|
1st Source Corporation Director Retainer Stock Plan, amended July 24, 2014.
|
|
|
|
31.1
|
|
Certification of Chief Executive Officer required by Rule 13a-14(a).
|
|
|
|
31.2
|
|
Certification of Chief Financial Officer required by Rule 13a-14(a).
|
|
|
|
32.1
|
|
Certification pursuant to 18 U.S.C. Section 1350 of Chief Executive Officer.
|
|
|
|
32.2
|
|
Certification pursuant to 18 U.S.C. Section 1350 of Chief Financial Officer.
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Labels Linkbase Document
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
1st Source Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DATE
|
October 23, 2014
|
|
/s/ CHRISTOPHER J. MURPHY III
|
|
|
Christopher J. Murphy III
Chairman of the Board and CEO
|
|
|
|
|
|
|
|
|
|
DATE
|
October 23, 2014
|
|
/s/ ANDREA G. SHORT
|
|
|
Andrea G. Short
Treasurer and Chief Financial Officer
Principal Accounting Officer
|
1.
|
Purpose of the Plan.
|
2.
|
Definitions.
|
•
|
for Annual Fees earned through June 30, the first NASDAQ trading day of August;
|
•
|
for Annual Fees earned through September 30, the first NASDAQ trading day of November;
|
•
|
for Annual Fees earned through December 31, the first NASDAQ trading day of February;
|
•
|
for Annual Fees earned through April 30, the first NASDAQ trading day of June.
|
4.
|
Effective Date, Applicable Date and Duration.
|
5.
|
Common Stock Subject to the Plan.
|
6.
|
Calculation and Payment of Annual Retainer and Annual Fees.
|
8.
|
Suspension, Termination and Amendment of the Plan.
|
9.
|
Adjustment Provisions.
|
10.
|
General Provisions.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of 1st Source Corporation;
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this 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 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 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 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 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: October 23, 2014
|
|
/s/ CHRISTOPHER J. MURPHY III
|
Christopher J. Murphy III
|
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of 1st Source Corporation;
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this 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 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 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 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 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: October 23, 2014
|
|
/s/ ANDREA G. SHORT
|
Andrea G. Short
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of sections 13(a) or 15(d) of the Securities and Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of 1st Source.
|
Date: October 23, 2014
|
|
/s/ CHRISTOPHER J. MURPHY III
|
Christopher J. Murphy III
|
Chief Executive Officer
|
|
(1)
|
The Report fully complies with the requirements of sections 13(a) or 15(d) of the Securities and Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of 1st Source.
|
Date: October 23, 2014
|
|
/s/ ANDREA G. SHORT
|
Andrea G. Short
|
Chief Financial Officer
|
|