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ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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27-0563799
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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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Large accelerated filer
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x
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Accelerated filer
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¨
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Non-accelerated filer
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¨
(do not check if a smaller reporting company)
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Smaller Reporting Company
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¨
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Page
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 5.
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Item 6.
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•
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our ability to execute our business strategy, as well as changes in our business strategy or development plans;
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•
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business and economic conditions generally and in the financial services industry;
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•
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economic, market, operational, liquidity, credit and interest rate risks associated with our business;
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•
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effects of any changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board;
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•
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changes imposed by regulatory agencies to increase our capital to a level greater than the current level required for well-capitalized financial institutions (including the impact of the joint final rules promulgated by the Federal Reserve Board, Office of the Comptroller of the Currency and the FDIC revising certain regulatory capital requirements to align with the Basel III capital standards and meet certain requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act);
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•
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effects of inflation, as well as, interest rate, securities market and monetary supply fluctuations;
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•
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changes in the economy or supply-demand imbalances affecting local real estate values;
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•
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changes in consumer spending, borrowings and savings habits;
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•
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our ability to identify potential candidates for, obtain regulatory approval for, and consummate, acquisitions of financial institutions on attractive terms, or at all;
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•
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our ability to integrate acquisitions and to achieve synergies, operating efficiencies and/or other expected benefits within expected time-frames, or at all, or within expected cost projections, and to preserve the goodwill of acquired financial institutions;
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•
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our ability to achieve organic loan and deposit growth and the composition of such growth;
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•
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changes in sources and uses of funds, including loans, deposits and borrowings;
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•
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increased competition in the financial services industry, nationally, regionally or locally, resulting in, among other things, lower returns;
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•
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the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters;
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•
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continued consolidation in the financial services industry;
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•
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our ability to maintain or increase market share and control expenses;
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•
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costs and effects of changes in laws and regulations and of other legal and regulatory developments, including, but not limited to, changes in regulation that affect the fees that we charge, the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations, reviews or other inquiries.
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•
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technological changes;
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•
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the timely development and acceptance of new products and services and perceived overall value of these products and services by our clients;
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•
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changes in our management personnel and our continued ability to hire and retain qualified personnel;
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•
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ability to implement and/or improve operational management and other internal risk controls and processes and our reporting system and procedures;
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•
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regulatory limitations on dividends from our bank subsidiary;
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•
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changes in estimates of future loan reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements;
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•
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widespread natural and other disasters, dislocations, political instability, acts of war or terrorist activities, cyberattacks or international hostilities through impacts on the economy and financial markets generally or on us or our counterparties specifically;
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•
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impact of reputational risk on such matters as business generation and retention;
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other risks and uncertainties listed from time to time in the Company’s reports and documents filed with the Securities and Exchange Commission; and
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•
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our success at managing the risks involved in the foregoing items.
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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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58,525
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$
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67,420
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Due from Federal Reserve Bank of Kansas City
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50,092
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107,894
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Interest bearing bank deposits
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10,042
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14,146
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Cash and cash equivalents
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118,659
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189,460
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Investment securities available-for-sale (at fair value)
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1,553,641
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1,785,528
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Investment securities held-to-maturity (fair value of $557,593 and $636,405 at September 30, 2014 and December 31, 2013, respectively)
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557,464
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641,907
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Non-marketable securities
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21,640
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31,663
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Loans (including covered loans of $219,468 and $309,397 at September 30, 2014 and December 31, 2013, respectively)
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2,171,372
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1,854,094
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Allowance for loan losses
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(16,591
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)
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(12,521
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)
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Loans, net
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2,154,781
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1,841,573
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Loans held for sale
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5,252
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5,787
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Federal Deposit Insurance Corporation (“FDIC”) indemnification asset, net
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44,413
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64,447
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Other real estate owned
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45,885
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70,125
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Premises and equipment, net
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108,100
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115,219
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Goodwill
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59,630
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59,630
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Intangible assets, net
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18,220
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22,229
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Other assets
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125,122
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86,547
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Total assets
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$
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4,812,807
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$
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4,914,115
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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Liabilities:
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Deposits:
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Non-interest bearing demand deposits
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$
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724,186
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$
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674,989
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Interest bearing demand deposits
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369,917
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386,762
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Savings and money market
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1,307,285
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1,280,871
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Time deposits
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1,396,070
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1,495,687
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Total deposits
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3,797,458
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3,838,309
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Securities sold under agreements to repurchase
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109,946
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99,547
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Due to FDIC
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35,120
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41,882
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Other liabilities
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61,321
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36,585
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Total liabilities
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4,003,845
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4,016,323
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Shareholders’ equity:
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Common stock, par value $0.01 per share: 400,000,000 shares authorized; 52,405,241 and 52,289,347 shares issued; 39,862,824 and 44,918,336 shares outstanding at September 30, 2014 and December 31, 2013, respectively
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512
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512
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Additional paid in capital
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992,587
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990,216
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Retained earnings
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40,197
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39,966
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Treasury stock of 11,392,009 and 6,306,551 shares at September 30, 2014 and December 31, 2013, respectively, at cost
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(226,230
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)
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(126,146
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)
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Accumulated other comprehensive income (loss), net of tax
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1,896
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(6,756
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)
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Total shareholders’ equity
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808,962
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897,792
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Total liabilities and shareholders’ equity
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$
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4,812,807
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$
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4,914,115
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For the three months ended
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For the nine months ended
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||||||||||||
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September 30,
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September 30,
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||||||||||||
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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 and dividend income:
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Interest and fees on loans
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$
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33,403
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$
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35,328
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$
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99,704
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$
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105,783
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Interest and dividends on investment securities
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11,749
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13,539
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37,523
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40,383
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Dividends on non-marketable securities
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245
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388
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904
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1,170
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Interest on interest-bearing bank deposits
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95
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267
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251
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762
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||||
Total interest and dividend income
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45,492
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49,522
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138,382
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148,098
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Interest expense:
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Interest on deposits
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3,563
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3,965
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10,625
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12,647
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Interest on borrowings
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34
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42
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92
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|
80
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|
||||
Total interest expense
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3,597
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4,007
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10,717
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12,727
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Net interest income before provision for loan losses
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41,895
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45,515
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127,665
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135,371
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Provision for loan losses
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1,515
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|
437
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|
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4,944
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|
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3,524
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|
||||
Net interest income after provision for loan losses
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40,380
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|
|
45,078
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|
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122,721
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131,847
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|
||||
Non-interest income:
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|
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|
|
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|
||||||||
FDIC indemnification asset amortization
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(6,252
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)
|
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(4,208
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)
|
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(19,819
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)
|
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(11,843
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)
|
||||
FDIC loss sharing (expense) income
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(943
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)
|
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(1,191
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)
|
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(2,549
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)
|
|
3,278
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|
||||
Service charges
|
4,148
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|
|
4,334
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|
|
11,558
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|
|
11,944
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|
||||
Bank card fees
|
2,615
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|
|
2,482
|
|
|
7,548
|
|
|
7,509
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|
||||
Gain on sales of mortgages, net
|
264
|
|
|
345
|
|
|
674
|
|
|
1,125
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|
||||
Gain on previously charged-off acquired loans
|
147
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|
|
224
|
|
|
675
|
|
|
1,118
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|
||||
OREO related write-ups and other income
|
799
|
|
|
727
|
|
|
2,777
|
|
|
2,713
|
|
||||
Other non-interest income
|
836
|
|
|
625
|
|
|
2,557
|
|
|
1,969
|
|
||||
Total non-interest income
|
1,614
|
|
|
3,338
|
|
|
3,421
|
|
|
17,813
|
|
||||
Non-interest expense:
|
|
|
|
|
|
|
|
||||||||
Salaries and benefits
|
21,058
|
|
|
22,639
|
|
|
62,260
|
|
|
69,363
|
|
||||
Occupancy and equipment
|
6,155
|
|
|
6,556
|
|
|
18,838
|
|
|
18,391
|
|
||||
Telecommunications and data processing
|
2,848
|
|
|
3,050
|
|
|
8,978
|
|
|
9,805
|
|
||||
Marketing and business development
|
757
|
|
|
1,408
|
|
|
3,542
|
|
|
3,519
|
|
||||
FDIC deposit insurance
|
1,029
|
|
|
1,021
|
|
|
3,109
|
|
|
3,074
|
|
||||
ATM/debit card expenses
|
799
|
|
|
1,179
|
|
|
2,312
|
|
|
3,291
|
|
||||
Professional fees
|
854
|
|
|
791
|
|
|
2,180
|
|
|
3,045
|
|
||||
Other non-interest expense
|
2,540
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|
|
3,210
|
|
|
7,698
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|
|
9,667
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|
||||
(Gain) loss from the change in fair value of warrant liability
|
(1,256
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)
|
|
441
|
|
|
(2,734
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)
|
|
138
|
|
||||
Intangible asset amortization
|
1,336
|
|
|
1,336
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|
|
4,008
|
|
|
4,009
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|
||||
Other real estate owned expenses
|
594
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|
|
459
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|
|
3,629
|
|
|
7,675
|
|
||||
Problem loan expenses
|
1,267
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|
|
1,134
|
|
|
3,034
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|
|
4,361
|
|
||||
Banking center closure related expenses
|
—
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|
|
3,389
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|
|
—
|
|
|
3,389
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|
||||
Total non-interest expense
|
37,981
|
|
|
46,613
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|
|
116,854
|
|
|
139,727
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|
||||
Income before income taxes
|
4,013
|
|
|
1,803
|
|
|
9,288
|
|
|
9,933
|
|
||||
Income tax expense
|
676
|
|
|
856
|
|
|
2,391
|
|
|
4,006
|
|
||||
Net income
|
$
|
3,337
|
|
|
$
|
947
|
|
|
$
|
6,897
|
|
|
$
|
5,927
|
|
Income per share—basic
|
$
|
0.08
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|
|
$
|
0.02
|
|
|
$
|
0.16
|
|
|
$
|
0.11
|
|
Income per share—diluted
|
$
|
0.08
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|
|
$
|
0.02
|
|
|
$
|
0.16
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|
|
$
|
0.11
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
41,837,485
|
|
|
51,454,200
|
|
|
43,403,791
|
|
|
51,940,245
|
|
||||
Diluted
|
41,841,685
|
|
|
51,501,980
|
|
|
43,423,273
|
|
|
51,973,161
|
|
|
For the three months ended
|
|
For the nine months ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Net income
|
$
|
3,337
|
|
|
$
|
947
|
|
|
$
|
6,897
|
|
|
$
|
5,927
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
||||||||
Net unrealized gains (losses) arising during the period, net of tax benefit of $1,480 and $5,141 for the three months ended September 30, 2014 and 2013, respectively; and net of tax (expense) benefit of ($6,824) and $22,852 for the nine months ended September 30, 2014 and 2013, respectively.
|
(2,407
|
)
|
|
(8,214
|
)
|
|
11,099
|
|
|
(36,015
|
)
|
||||
|
(2,407
|
)
|
|
(8,214
|
)
|
|
11,099
|
|
|
(36,015
|
)
|
||||
Net unrealized holding gains on securities transferred between available-for-sale to held-to-maturity:
|
|
|
|
|
|
|
|
||||||||
Less: amortization of net unrealized holding gains to income, net of tax benefit of $475 and $738 for the three months ended September 30, 2014 and 2013, respectively; and net of tax benefit of $1,505 and $2,943 for the nine months ended September 30, 2014 and 2013, respectively.
|
(774
|
)
|
|
(1,178
|
)
|
|
(2,447
|
)
|
|
(4,700
|
)
|
||||
|
(774
|
)
|
|
(1,178
|
)
|
|
(2,447
|
)
|
|
(4,700
|
)
|
||||
Other comprehensive income (loss)
|
(3,181
|
)
|
|
(9,392
|
)
|
|
8,652
|
|
|
(40,715
|
)
|
||||
Comprehensive income (loss)
|
$
|
156
|
|
|
$
|
(8,445
|
)
|
|
$
|
15,549
|
|
|
$
|
(34,788
|
)
|
|
Common
stock
|
|
Additional
paid-in
capital
|
|
Retained
earnings
|
|
Treasury
stock
|
|
Accumulated
other
comprehensive
income (loss), net
|
|
Total
|
||||||||||||
Balance, December 31, 2012
|
$
|
523
|
|
|
$
|
1,006,194
|
|
|
$
|
43,273
|
|
|
$
|
(4
|
)
|
|
$
|
40,573
|
|
|
$
|
1,090,559
|
|
Net income
|
—
|
|
|
—
|
|
|
5,927
|
|
|
—
|
|
|
—
|
|
|
5,927
|
|
||||||
Stock-based compensation
|
—
|
|
|
4,003
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,003
|
|
||||||
(Repurchase of 1,114,628 shares)/retirement of 1,114,868 treasury shares
|
(11
|
)
|
|
(20,583
|
)
|
|
—
|
|
|
4
|
|
|
—
|
|
|
(20,590
|
)
|
||||||
Dividends paid ($.15 per share)
|
—
|
|
|
—
|
|
|
(7,934
|
)
|
|
—
|
|
|
—
|
|
|
(7,934
|
)
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(40,715
|
)
|
|
(40,715
|
)
|
||||||
Balance, September 30, 2013
|
$
|
512
|
|
|
$
|
989,614
|
|
|
$
|
41,266
|
|
|
$
|
—
|
|
|
$
|
(142
|
)
|
|
$
|
1,031,250
|
|
Balance, December 31, 2013
|
$
|
512
|
|
|
$
|
990,216
|
|
|
$
|
39,966
|
|
|
$
|
(126,146
|
)
|
|
$
|
(6,756
|
)
|
|
$
|
897,792
|
|
Net income
|
—
|
|
|
—
|
|
|
6,897
|
|
|
—
|
|
|
—
|
|
|
6,897
|
|
||||||
Stock-based compensation
|
—
|
|
|
2,750
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,750
|
|
||||||
Issuance under equity compensation plan
|
—
|
|
|
(368
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(368
|
)
|
||||||
Change in corporate tax benefit related to stock-based compensation
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
||||||
Repurchase of 5,085,458 shares
|
—
|
|
|
—
|
|
|
—
|
|
|
(100,084
|
)
|
|
—
|
|
|
(100,084
|
)
|
||||||
Dividends paid ($.15 per share)
|
—
|
|
|
—
|
|
|
(6,666
|
)
|
|
—
|
|
|
—
|
|
|
(6,666
|
)
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,652
|
|
|
8,652
|
|
||||||
Balance, September 30, 2014
|
$
|
512
|
|
|
$
|
992,587
|
|
|
$
|
40,197
|
|
|
$
|
(226,230
|
)
|
|
$
|
1,896
|
|
|
$
|
808,962
|
|
|
For the nine months ended
|
||||||
|
September 30,
|
||||||
|
2014
|
|
2013
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
6,897
|
|
|
$
|
5,927
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
||||
Provision for loan losses
|
4,944
|
|
|
3,524
|
|
||
Depreciation and amortization
|
12,144
|
|
|
11,698
|
|
||
Current income tax receivable
|
20,364
|
|
|
(11,249
|
)
|
||
Deferred income tax asset
|
(18,445
|
)
|
|
(10,848
|
)
|
||
Discount accretion, net of premium amortization on securities
|
3,828
|
|
|
6,692
|
|
||
Loan accretion
|
(48,978
|
)
|
|
(66,906
|
)
|
||
Net gain on sale of mortgage loans
|
(674
|
)
|
|
(1,125
|
)
|
||
Origination of loans held for sale, net of repayments
|
(29,622
|
)
|
|
(47,754
|
)
|
||
Proceeds from sales of loans held for sale
|
30,106
|
|
|
47,832
|
|
||
Amortization of indemnification asset
|
19,819
|
|
|
11,843
|
|
||
Gain on the sale of other real estate owned, net
|
(2,686
|
)
|
|
(7,384
|
)
|
||
Impairment on other real estate owned
|
1,789
|
|
|
9,142
|
|
||
Impairment on fixed assets related to banking center closures
|
—
|
|
|
2,531
|
|
||
Gain on sale of fixed assets
|
(123
|
)
|
|
—
|
|
||
Stock-based compensation
|
2,750
|
|
|
4,003
|
|
||
(Decrease) increase in due to FDIC, net
|
(6,762
|
)
|
|
693
|
|
||
(Increase) decrease in other assets
|
(740
|
)
|
|
1,739
|
|
||
Increase in other liabilities
|
19,525
|
|
|
1,338
|
|
||
Net cash provided by (used in) operating activities
|
14,136
|
|
|
(38,304
|
)
|
||
Cash flows from investing activities:
|
|
|
|
||||
Proceeds from redemption of FHLB stock
|
633
|
|
|
1,271
|
|
||
Proceeds from redemption of FRB stock
|
9,390
|
|
|
—
|
|
||
Maturities of investment securities held-to-maturity
|
80,052
|
|
|
149,991
|
|
||
Maturities of investment securities available-for-sale
|
246,422
|
|
|
456,122
|
|
||
Purchase of investment securities held-to-maturity
|
—
|
|
|
(244,502
|
)
|
||
Purchase of investment securities available-for-sale
|
—
|
|
|
(693,977
|
)
|
||
Increase in securities purchased under agreements to resell
|
—
|
|
|
(75,000
|
)
|
||
Net (increase) decrease in loans
|
(274,575
|
)
|
|
91,068
|
|
||
Purchase of premises and equipment, net
|
(894
|
)
|
|
(6,069
|
)
|
||
Purchase of bank-owned life insurance
|
(40,000
|
)
|
|
—
|
|
||
Proceeds from sales of loans
|
3,607
|
|
|
26,984
|
|
||
Proceeds from sales of other real estate owned
|
27,656
|
|
|
54,705
|
|
||
Increase in FDIC indemnification asset
|
215
|
|
|
72,634
|
|
||
Net cash provided by (used in) investing activities
|
52,506
|
|
|
(166,773
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Net decrease in deposits
|
(40,851
|
)
|
|
(249,216
|
)
|
||
Increase in repurchase agreements
|
10,399
|
|
|
62,786
|
|
||
Issuance under equity compensation plan
|
(379
|
)
|
|
—
|
|
||
Payment of dividends
|
(6,528
|
)
|
|
(7,839
|
)
|
||
Repurchase of shares
|
(100,084
|
)
|
|
(20,590
|
)
|
||
Net cash used in financing activities
|
(137,443
|
)
|
|
(214,859
|
)
|
||
Decrease in cash and cash equivalents
|
(70,801
|
)
|
|
(419,936
|
)
|
||
Cash and cash equivalents at beginning of the year
|
189,460
|
|
|
769,180
|
|
||
Cash and cash equivalents at end of period
|
$
|
118,659
|
|
|
$
|
349,244
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
||||
Cash paid during the period for interest
|
$
|
10,168
|
|
|
$
|
13,741
|
|
Cash paid during the period for taxes
|
$
|
489
|
|
|
$
|
26,271
|
|
Supplemental schedule of non-cash investing activities:
|
|
|
|
||||
Loans transferred to other real estate owned at fair value
|
$
|
2,519
|
|
|
$
|
32,408
|
|
FDIC indemnification asset claims transferred to other assets
|
$
|
181
|
|
|
$
|
24,460
|
|
Loans purchased but not settled
|
$
|
29,906
|
|
|
$
|
—
|
|
|
September 30, 2014
|
||||||||||||||
|
Amortized
cost
|
|
Gross
unrealized
gains
|
|
Gross
unrealized
losses
|
|
Fair value
|
||||||||
Asset backed securities
|
$
|
356
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
356
|
|
Mortgage-backed securities (“MBS”):
|
|
|
|
|
|
|
|
||||||||
Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
419,852
|
|
|
8,089
|
|
|
(814
|
)
|
|
427,127
|
|
||||
Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
1,145,834
|
|
|
9,949
|
|
|
(30,044
|
)
|
|
1,125,739
|
|
||||
Other securities
|
419
|
|
|
—
|
|
|
—
|
|
|
419
|
|
||||
Total
|
$
|
1,566,461
|
|
|
$
|
18,038
|
|
|
$
|
(30,858
|
)
|
|
$
|
1,553,641
|
|
|
December 31, 2013
|
||||||||||||||
|
Amortized
cost
|
|
Gross
unrealized
gains
|
|
Gross
unrealized
losses
|
|
Fair value
|
||||||||
Asset backed securities
|
4,534
|
|
|
3
|
|
|
—
|
|
|
4,537
|
|
||||
Mortgage-backed securities (“MBS”):
|
|
|
|
|
|
|
|
||||||||
Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
490,321
|
|
|
7,670
|
|
|
(3,001
|
)
|
|
494,990
|
|
||||
Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
1,320,998
|
|
|
10,764
|
|
|
(46,180
|
)
|
|
1,285,582
|
|
||||
Other securities
|
419
|
|
|
—
|
|
|
—
|
|
|
419
|
|
||||
Total
|
$
|
1,816,272
|
|
|
$
|
18,437
|
|
|
$
|
(49,181
|
)
|
|
$
|
1,785,528
|
|
|
September 30, 2014
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
|
Fair
value
|
|
Unrealized
losses
|
|
Fair
value
|
|
Unrealized
losses
|
|
Fair
value
|
|
Unrealized
losses
|
||||||||||||
Mortgage-backed securities (“MBS”):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
$
|
75,906
|
|
|
$
|
(274
|
)
|
|
$
|
110,728
|
|
|
$
|
(540
|
)
|
|
$
|
186,634
|
|
|
$
|
(814
|
)
|
Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
107,699
|
|
|
(3,038
|
)
|
|
672,803
|
|
|
(27,006
|
)
|
|
780,502
|
|
|
(30,044
|
)
|
||||||
Total
|
$
|
183,605
|
|
|
$
|
(3,312
|
)
|
|
$
|
783,531
|
|
|
$
|
(27,546
|
)
|
|
$
|
967,136
|
|
|
$
|
(30,858
|
)
|
|
December 31, 2013
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
|
Fair
value
|
|
Unrealized
losses
|
|
Fair
value
|
|
Unrealized
losses
|
|
Fair
value
|
|
Unrealized
losses
|
||||||||||||
Mortgage-backed securities (“MBS”):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
$
|
283,177
|
|
|
$
|
(3,000
|
)
|
|
$
|
13
|
|
|
$
|
(1
|
)
|
|
$
|
283,190
|
|
|
$
|
(3,001
|
)
|
Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
876,225
|
|
|
(44,101
|
)
|
|
40,740
|
|
|
(2,079
|
)
|
|
916,965
|
|
|
(46,180
|
)
|
||||||
Total
|
$
|
1,159,402
|
|
|
$
|
(47,101
|
)
|
|
$
|
40,753
|
|
|
$
|
(2,080
|
)
|
|
$
|
1,200,155
|
|
|
$
|
(49,181
|
)
|
|
September 30, 2014
|
||||||||||||||
|
Amortized
cost
|
|
Gross
unrealized
gains
|
|
Gross
unrealized
losses
|
|
Fair value
|
||||||||
Mortgage-backed securities (“MBS”):
|
|
|
|
|
|
|
|
||||||||
Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
$
|
444,104
|
|
|
$
|
3,774
|
|
|
$
|
(454
|
)
|
|
$
|
447,424
|
|
Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
113,360
|
|
|
202
|
|
|
(3,393
|
)
|
|
110,169
|
|
||||
Total investment securities held-to-maturity
|
$
|
557,464
|
|
|
$
|
3,976
|
|
|
$
|
(3,847
|
)
|
|
$
|
557,593
|
|
|
December 31, 2013
|
||||||||||||||
|
Amortized
cost
|
|
Gross
unrealized
gains
|
|
Gross
unrealized
losses
|
|
Fair value
|
||||||||
Mortgage-backed securities (“MBS”):
|
|
|
|
|
|
|
|
||||||||
Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
$
|
513,090
|
|
|
$
|
175
|
|
|
$
|
(1,776
|
)
|
|
$
|
511,489
|
|
Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
128,817
|
|
104
|
|
(4,005)
|
|
124,916
|
||||||||
Total investment securities held-to-maturity
|
$
|
641,907
|
|
|
$
|
279
|
|
|
$
|
(5,781
|
)
|
|
$
|
636,405
|
|
|
September 30, 2014
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
||||||||||||
Mortgage-backed securities (“MBS”):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
37,164
|
|
|
$
|
(454
|
)
|
|
$
|
37,164
|
|
|
$
|
(454
|
)
|
Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
10,289
|
|
|
(91
|
)
|
|
82,866
|
|
|
(3,302
|
)
|
|
93,155
|
|
|
(3,393
|
)
|
||||||
Total
|
$
|
10,289
|
|
|
$
|
(91
|
)
|
|
$
|
120,030
|
|
|
$
|
(3,756
|
)
|
|
$
|
130,319
|
|
|
$
|
(3,847
|
)
|
|
December 31, 2013
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
||||||||||||
Mortgage-backed securities (“MBS”):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
$
|
472,973
|
|
|
$
|
(1,776
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
472,973
|
|
|
$
|
(1,776
|
)
|
Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
105,124
|
|
|
(4,005
|
)
|
|
—
|
|
|
—
|
|
|
105,124
|
|
|
(4,005
|
)
|
||||||
Total
|
$
|
578,097
|
|
|
$
|
(5,781
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
578,097
|
|
|
$
|
(5,781
|
)
|
|
September 30, 2014
|
|||||||||||||
|
ASC 310-30
loans
|
|
Non 310-30
loans
|
|
Total loans
|
|
% of total
|
|||||||
Commercial
|
$
|
37,665
|
|
|
$
|
717,507
|
|
|
$
|
755,172
|
|
|
34.8
|
%
|
Agriculture
|
20,071
|
|
|
142,801
|
|
|
162,872
|
|
|
7.5
|
%
|
|||
Commercial real estate
|
213,871
|
|
|
380,445
|
|
|
594,316
|
|
|
27.4
|
%
|
|||
Residential real estate
|
43,979
|
|
|
579,420
|
|
|
623,399
|
|
|
28.7
|
%
|
|||
Consumer
|
5,007
|
|
|
30,606
|
|
|
35,613
|
|
|
1.6
|
%
|
|||
Total
|
$
|
320,593
|
|
|
$
|
1,850,779
|
|
|
$
|
2,171,372
|
|
|
100.0
|
%
|
Covered
|
$
|
183,486
|
|
|
$
|
35,982
|
|
|
$
|
219,468
|
|
|
10.1
|
%
|
Non-covered
|
137,107
|
|
|
1,814,797
|
|
|
1,951,904
|
|
|
89.9
|
%
|
|||
Total
|
$
|
320,593
|
|
|
$
|
1,850,779
|
|
|
$
|
2,171,372
|
|
|
100.0
|
%
|
|
December 31, 2013
|
|||||||||||||
|
ASC 310-30
loans
|
|
Non 310-30
loans |
|
Total loans
|
|
% of total
|
|||||||
Commercial
|
$
|
61,511
|
|
|
$
|
421,984
|
|
|
$
|
483,495
|
|
|
26.1
|
%
|
Agriculture
|
27,000
|
|
|
132,952
|
|
|
159,952
|
|
|
8.6
|
%
|
|||
Commercial real estate
|
291,198
|
|
|
283,022
|
|
|
574,220
|
|
|
31.0
|
%
|
|||
Residential real estate
|
63,011
|
|
|
536,913
|
|
|
599,924
|
|
|
32.3
|
%
|
|||
Consumer
|
8,160
|
|
|
28,343
|
|
|
36,503
|
|
|
2.0
|
%
|
|||
Total
|
$
|
450,880
|
|
|
$
|
1,403,214
|
|
|
$
|
1,854,094
|
|
|
100.0
|
%
|
Covered
|
$
|
259,364
|
|
|
$
|
50,033
|
|
|
$
|
309,397
|
|
|
16.7
|
%
|
Non-covered
|
191,516
|
|
|
1,353,181
|
|
|
1,544,697
|
|
|
83.3
|
%
|
|||
Total
|
$
|
450,880
|
|
|
$
|
1,403,214
|
|
|
$
|
1,854,094
|
|
|
100.0
|
%
|
|
Total Loans September 30, 2014
|
||||||||||||||||||||||||||||||
|
30-59
days past
due
|
|
60-89
days
past
due
|
|
Greater
than 90
days past
due
|
|
Total past
due
|
|
Current
|
|
Total
loans
|
|
Loans > 90
days past
due and
still
accruing
|
|
Non-
accrual
|
||||||||||||||||
Loans excluded from ASC 310-30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial
|
$
|
2,063
|
|
|
$
|
314
|
|
|
$
|
189
|
|
|
$
|
2,566
|
|
|
$
|
714,941
|
|
|
$
|
717,507
|
|
|
$
|
77
|
|
|
$
|
12,203
|
|
Agriculture
|
67
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
142,734
|
|
|
142,801
|
|
|
—
|
|
|
515
|
|
||||||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,835
|
|
|
11,835
|
|
|
—
|
|
|
—
|
|
||||||||
Acquisition/development
|
42
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
4,553
|
|
|
4,595
|
|
|
—
|
|
|
—
|
|
||||||||
Multifamily
|
—
|
|
|
—
|
|
|
95
|
|
|
95
|
|
|
15,784
|
|
|
15,879
|
|
|
94
|
|
|
144
|
|
||||||||
Owner-occupied
|
78
|
|
|
89
|
|
|
289
|
|
|
456
|
|
|
122,023
|
|
|
122,479
|
|
|
—
|
|
|
946
|
|
||||||||
Non owner-occupied
|
1,961
|
|
|
—
|
|
|
203
|
|
|
2,164
|
|
|
223,493
|
|
|
225,657
|
|
|
—
|
|
|
203
|
|
||||||||
Total commercial real estate
|
2,081
|
|
|
89
|
|
|
587
|
|
|
2,757
|
|
|
377,688
|
|
|
380,445
|
|
|
94
|
|
|
1,293
|
|
||||||||
Residential real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Senior lien
|
764
|
|
|
279
|
|
|
807
|
|
|
1,850
|
|
|
525,722
|
|
|
527,572
|
|
|
48
|
|
|
4,277
|
|
||||||||
Junior lien
|
269
|
|
|
112
|
|
|
18
|
|
|
399
|
|
|
51,449
|
|
|
51,848
|
|
|
—
|
|
|
417
|
|
||||||||
Total residential real estate
|
1,033
|
|
|
391
|
|
|
825
|
|
|
2,249
|
|
|
577,171
|
|
|
579,420
|
|
|
48
|
|
|
4,694
|
|
||||||||
Consumer
|
135
|
|
|
24
|
|
|
6
|
|
|
165
|
|
|
30,441
|
|
|
30,606
|
|
|
6
|
|
|
231
|
|
||||||||
Total loans excluded from ASC 310-30
|
$
|
5,379
|
|
|
$
|
818
|
|
|
$
|
1,607
|
|
|
$
|
7,804
|
|
|
$
|
1,842,975
|
|
|
$
|
1,850,779
|
|
|
$
|
225
|
|
|
$
|
18,936
|
|
Covered loans excluded from ASC 310-30
|
$
|
78
|
|
|
$
|
188
|
|
|
$
|
30
|
|
|
$
|
296
|
|
|
$
|
35,686
|
|
|
$
|
35,982
|
|
|
$
|
—
|
|
|
$
|
1,540
|
|
Non-covered loans excluded from ASC 310-30
|
5,301
|
|
|
630
|
|
|
1,577
|
|
|
7,508
|
|
|
1,807,289
|
|
|
1,814,797
|
|
|
225
|
|
|
17,396
|
|
||||||||
Total loans excluded from ASC 310-30
|
$
|
5,379
|
|
|
$
|
818
|
|
|
$
|
1,607
|
|
|
$
|
7,804
|
|
|
$
|
1,842,975
|
|
|
$
|
1,850,779
|
|
|
$
|
225
|
|
|
$
|
18,936
|
|
Loans accounted for under ASC 310-30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial
|
$
|
400
|
|
|
$
|
—
|
|
|
$
|
4,981
|
|
|
$
|
5,381
|
|
|
$
|
32,284
|
|
|
$
|
37,665
|
|
|
$
|
4,981
|
|
|
$
|
—
|
|
Agriculture
|
—
|
|
|
288
|
|
|
171
|
|
|
459
|
|
|
19,612
|
|
|
20,071
|
|
|
171
|
|
|
—
|
|
||||||||
Commercial real estate
|
3,878
|
|
|
25,013
|
|
|
35,870
|
|
|
64,761
|
|
|
149,110
|
|
|
213,871
|
|
|
35,870
|
|
|
—
|
|
||||||||
Residential real estate
|
879
|
|
|
156
|
|
|
1,757
|
|
|
2,792
|
|
|
41,187
|
|
|
43,979
|
|
|
1,757
|
|
|
—
|
|
||||||||
Consumer
|
147
|
|
|
—
|
|
|
151
|
|
|
298
|
|
|
4,709
|
|
|
5,007
|
|
|
151
|
|
|
—
|
|
||||||||
Total loans accounted for under ASC 310-30
|
$
|
5,304
|
|
|
$
|
25,457
|
|
|
$
|
42,930
|
|
|
$
|
73,691
|
|
|
$
|
246,902
|
|
|
$
|
320,593
|
|
|
$
|
42,930
|
|
|
$
|
—
|
|
Covered loans accounted for under ASC 310-30
|
$
|
3,791
|
|
|
$
|
23,783
|
|
|
$
|
34,497
|
|
|
$
|
62,071
|
|
|
$
|
121,415
|
|
|
$
|
183,486
|
|
|
$
|
34,497
|
|
|
$
|
—
|
|
Non-covered loans accounted for under ASC 310-30
|
1,513
|
|
|
1,674
|
|
|
8,433
|
|
|
11,620
|
|
|
125,487
|
|
|
137,107
|
|
|
8,433
|
|
|
—
|
|
||||||||
Total loans accounted for under ASC 310-30
|
$
|
5,304
|
|
|
$
|
25,457
|
|
|
$
|
42,930
|
|
|
$
|
73,691
|
|
|
$
|
246,902
|
|
|
$
|
320,593
|
|
|
$
|
42,930
|
|
|
$
|
—
|
|
Total loans
|
$
|
10,683
|
|
|
$
|
26,275
|
|
|
$
|
44,537
|
|
|
$
|
81,495
|
|
|
$
|
2,089,877
|
|
|
$
|
2,171,372
|
|
|
$
|
43,155
|
|
|
$
|
18,936
|
|
Covered loans
|
$
|
3,869
|
|
|
$
|
23,971
|
|
|
$
|
34,527
|
|
|
$
|
62,367
|
|
|
$
|
157,101
|
|
|
$
|
219,468
|
|
|
$
|
34,497
|
|
|
$
|
1,540
|
|
Non-covered loans
|
6,814
|
|
|
2,304
|
|
|
10,010
|
|
|
19,128
|
|
|
1,932,776
|
|
|
1,951,904
|
|
|
8,658
|
|
|
17,396
|
|
||||||||
Total loans
|
$
|
10,683
|
|
|
$
|
26,275
|
|
|
$
|
44,537
|
|
|
$
|
81,495
|
|
|
$
|
2,089,877
|
|
|
$
|
2,171,372
|
|
|
$
|
43,155
|
|
|
$
|
18,936
|
|
|
Total Loans December 31, 2013
|
||||||||||||||||||||||||||||||
|
30-59
days past
due
|
|
60-89
days
past
due
|
|
Greater
than 90
days past
due
|
|
Total past
due
|
|
Current
|
|
Total
loans
|
|
Loans > 90
days past
due and
still
accruing
|
|
Non-
accrual
|
||||||||||||||||
Loans excluded from ASC 310-30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial
|
$
|
897
|
|
|
$
|
156
|
|
|
$
|
555
|
|
|
$
|
1,608
|
|
|
$
|
420,376
|
|
|
$
|
421,984
|
|
|
$
|
115
|
|
|
$
|
1,280
|
|
Agriculture
|
188
|
|
|
7
|
|
|
—
|
|
|
195
|
|
|
132,757
|
|
|
132,952
|
|
|
—
|
|
|
153
|
|
||||||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Construction
|
316
|
|
|
—
|
|
|
—
|
|
|
316
|
|
|
5,023
|
|
|
5,339
|
|
|
—
|
|
|
—
|
|
||||||||
Acquisition/development
|
45
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
7,975
|
|
|
8,020
|
|
|
—
|
|
|
1
|
|
||||||||
Multifamily
|
1,003
|
|
|
—
|
|
|
—
|
|
|
1,003
|
|
|
9,681
|
|
|
10,684
|
|
|
—
|
|
|
1,096
|
|
||||||||
Owner-occupied
|
52
|
|
|
7
|
|
|
21
|
|
|
80
|
|
|
93,367
|
|
|
93,447
|
|
|
—
|
|
|
692
|
|
||||||||
Non owner-occupied
|
329
|
|
|
—
|
|
|
203
|
|
|
532
|
|
|
165,000
|
|
|
165,532
|
|
|
—
|
|
|
203
|
|
||||||||
Total commercial real estate
|
1,745
|
|
|
7
|
|
|
224
|
|
|
1,976
|
|
|
281,046
|
|
|
283,022
|
|
|
—
|
|
|
1,992
|
|
||||||||
Residential real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Senior lien
|
733
|
|
|
415
|
|
|
1,062
|
|
|
2,210
|
|
|
482,381
|
|
|
484,591
|
|
|
—
|
|
|
5,326
|
|
||||||||
Junior lien
|
204
|
|
|
—
|
|
|
80
|
|
|
284
|
|
|
52,038
|
|
|
52,322
|
|
|
—
|
|
|
519
|
|
||||||||
Total residential real estate
|
937
|
|
|
415
|
|
|
1,142
|
|
|
2,494
|
|
|
534,419
|
|
|
536,913
|
|
|
—
|
|
|
5,845
|
|
||||||||
Consumer
|
191
|
|
|
21
|
|
|
23
|
|
|
235
|
|
|
28,108
|
|
|
28,343
|
|
|
14
|
|
|
247
|
|
||||||||
Total loans excluded from ASC 310-30
|
$
|
3,958
|
|
|
$
|
606
|
|
|
$
|
1,944
|
|
|
$
|
6,508
|
|
|
$
|
1,396,706
|
|
|
$
|
1,403,214
|
|
|
$
|
129
|
|
|
$
|
9,517
|
|
Covered loans excluded from ASC 310-30
|
194
|
|
|
60
|
|
|
155
|
|
|
409
|
|
|
49,624
|
|
|
50,033
|
|
|
115
|
|
|
1,944
|
|
||||||||
Non-covered loans excluded from ASC 310-30
|
3,764
|
|
|
546
|
|
|
1,789
|
|
|
6,099
|
|
|
1,347,082
|
|
|
1,353,181
|
|
|
14
|
|
|
7,573
|
|
||||||||
Total loans excluded from ASC 310-30
|
$
|
3,958
|
|
|
$
|
606
|
|
|
$
|
1,944
|
|
|
$
|
6,508
|
|
|
$
|
1,396,706
|
|
|
$
|
1,403,214
|
|
|
$
|
129
|
|
|
$
|
9,517
|
|
Loans accounted for under ASC 310-30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial
|
$
|
582
|
|
|
$
|
322
|
|
|
$
|
4,505
|
|
|
$
|
5,409
|
|
|
$
|
56,102
|
|
|
$
|
61,511
|
|
|
$
|
4,505
|
|
|
$
|
14,827
|
|
Agriculture
|
714
|
|
|
—
|
|
|
296
|
|
|
1,010
|
|
|
25,990
|
|
|
27,000
|
|
|
296
|
|
|
—
|
|
||||||||
Commercial real estate
|
1,902
|
|
|
5,179
|
|
|
49,228
|
|
|
56,309
|
|
|
234,889
|
|
|
291,198
|
|
|
49,227
|
|
|
—
|
|
||||||||
Residential real estate
|
977
|
|
|
977
|
|
|
1,817
|
|
|
3,771
|
|
|
59,240
|
|
|
63,011
|
|
|
1,817
|
|
|
—
|
|
||||||||
Consumer
|
327
|
|
|
265
|
|
|
19
|
|
|
611
|
|
|
7,549
|
|
|
8,160
|
|
|
19
|
|
|
—
|
|
||||||||
Total loans accounted for under ASC 310-30
|
$
|
4,502
|
|
|
$
|
6,743
|
|
|
$
|
55,865
|
|
|
$
|
67,110
|
|
|
$
|
383,770
|
|
|
$
|
450,880
|
|
|
$
|
55,864
|
|
|
$
|
14,827
|
|
Covered loans accounted for under ASC 310-30
|
$
|
1,471
|
|
|
$
|
4,949
|
|
|
$
|
42,356
|
|
|
$
|
48,776
|
|
|
$
|
210,588
|
|
|
$
|
259,364
|
|
|
$
|
42,355
|
|
|
$
|
14,827
|
|
Non-covered loans accounted for under ASC 310-30
|
3,031
|
|
|
1,794
|
|
|
13,509
|
|
|
18,334
|
|
|
173,182
|
|
|
191,516
|
|
|
13,509
|
|
|
—
|
|
||||||||
Total loans accounted for under ASC 310-30
|
$
|
4,502
|
|
|
$
|
6,743
|
|
|
$
|
55,865
|
|
|
$
|
67,110
|
|
|
$
|
383,770
|
|
|
$
|
450,880
|
|
|
$
|
55,864
|
|
|
$
|
14,827
|
|
Total loans
|
$
|
8,460
|
|
|
$
|
7,349
|
|
|
$
|
57,809
|
|
|
$
|
73,618
|
|
|
$
|
1,780,476
|
|
|
$
|
1,854,094
|
|
|
$
|
55,993
|
|
|
$
|
24,344
|
|
Covered loans
|
$
|
1,665
|
|
|
$
|
5,009
|
|
|
$
|
42,511
|
|
|
$
|
49,185
|
|
|
$
|
260,212
|
|
|
$
|
309,397
|
|
|
$
|
42,470
|
|
|
$
|
16,771
|
|
Non-covered loans
|
6,795
|
|
|
2,340
|
|
|
15,298
|
|
|
24,433
|
|
|
1,520,264
|
|
|
1,544,697
|
|
|
13,523
|
|
|
7,573
|
|
||||||||
Total loans
|
$
|
8,460
|
|
|
$
|
7,349
|
|
|
$
|
57,809
|
|
|
$
|
73,618
|
|
|
$
|
1,780,476
|
|
|
$
|
1,854,094
|
|
|
$
|
55,993
|
|
|
$
|
24,344
|
|
|
Total Loans September 30, 2014
|
||||||||||||||||||
|
Pass
|
|
Special
mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Loans excluded from ASC 310-30
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
686,475
|
|
|
$
|
2,973
|
|
|
$
|
28,022
|
|
|
$
|
37
|
|
|
$
|
717,507
|
|
Agriculture
|
132,749
|
|
|
92
|
|
|
9,960
|
|
|
—
|
|
|
142,801
|
|
|||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
11,835
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,835
|
|
|||||
Acquisition/development
|
4,595
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,595
|
|
|||||
Multifamily
|
15,735
|
|
|
—
|
|
|
128
|
|
|
16
|
|
|
15,879
|
|
|||||
Owner-occupied
|
117,256
|
|
|
161
|
|
|
5,062
|
|
|
—
|
|
|
122,479
|
|
|||||
Non owner-occupied
|
204,212
|
|
|
17,788
|
|
|
3,647
|
|
|
10
|
|
|
225,657
|
|
|||||
Total commercial real estate
|
353,633
|
|
|
17,949
|
|
|
8,837
|
|
|
26
|
|
|
380,445
|
|
|||||
Residential real estate
|
|
|
|
|
|
|
|
|
|
||||||||||
Senior lien
|
521,525
|
|
|
103
|
|
|
5,758
|
|
|
186
|
|
|
527,572
|
|
|||||
Junior lien
|
50,513
|
|
|
—
|
|
|
1,335
|
|
|
—
|
|
|
51,848
|
|
|||||
Total residential real estate
|
572,038
|
|
|
103
|
|
|
7,093
|
|
|
186
|
|
|
579,420
|
|
|||||
Consumer
|
30,376
|
|
|
—
|
|
|
230
|
|
|
—
|
|
|
30,606
|
|
|||||
Total loans excluded from ASC 310-30
|
$
|
1,775,271
|
|
|
$
|
21,117
|
|
|
$
|
54,142
|
|
|
$
|
249
|
|
|
$
|
1,850,779
|
|
Covered loans excluded from ASC 310-30
|
$
|
21,300
|
|
|
$
|
2,404
|
|
|
$
|
12,154
|
|
|
$
|
124
|
|
|
$
|
35,982
|
|
Non-covered loans excluded from ASC 310-30
|
1,753,971
|
|
|
18,713
|
|
|
41,988
|
|
|
125
|
|
|
1,814,797
|
|
|||||
Total loans excluded from ASC 310-30
|
$
|
1,775,271
|
|
|
$
|
21,117
|
|
|
$
|
54,142
|
|
|
$
|
249
|
|
|
$
|
1,850,779
|
|
Loans accounted for under ASC 310-30
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
13,101
|
|
|
$
|
348
|
|
|
$
|
23,682
|
|
|
$
|
534
|
|
|
$
|
37,665
|
|
Agriculture
|
17,598
|
|
|
203
|
|
|
2,270
|
|
|
—
|
|
|
20,071
|
|
|||||
Commercial real estate
|
87,361
|
|
|
4,067
|
|
|
118,453
|
|
|
3,990
|
|
|
213,871
|
|
|||||
Residential real estate
|
30,066
|
|
|
1,447
|
|
|
12,466
|
|
|
—
|
|
|
43,979
|
|
|||||
Consumer
|
4,310
|
|
|
114
|
|
|
583
|
|
|
—
|
|
|
5,007
|
|
|||||
Total loans accounted for under ASC 310-30
|
$
|
152,436
|
|
|
$
|
6,179
|
|
|
$
|
157,454
|
|
|
$
|
4,524
|
|
|
$
|
320,593
|
|
Covered loans accounted for under ASC 310-30
|
$
|
54,336
|
|
|
$
|
3,452
|
|
|
$
|
121,176
|
|
|
$
|
4,522
|
|
|
$
|
183,486
|
|
Non-covered loans accounted for under ASC 310-30
|
98,100
|
|
|
2,727
|
|
|
36,278
|
|
|
2
|
|
|
137,107
|
|
|||||
Total loans accounted for under ASC 310-30
|
$
|
152,436
|
|
|
$
|
6,179
|
|
|
$
|
157,454
|
|
|
$
|
4,524
|
|
|
$
|
320,593
|
|
Total loans
|
$
|
1,927,707
|
|
|
$
|
27,296
|
|
|
$
|
211,596
|
|
|
$
|
4,773
|
|
|
$
|
2,171,372
|
|
Total covered
|
$
|
75,636
|
|
|
$
|
5,856
|
|
|
$
|
133,330
|
|
|
$
|
4,646
|
|
|
$
|
219,468
|
|
Total non-covered
|
1,852,071
|
|
|
21,440
|
|
|
78,266
|
|
|
127
|
|
|
1,951,904
|
|
|||||
Total loans
|
$
|
1,927,707
|
|
|
$
|
27,296
|
|
|
$
|
211,596
|
|
|
$
|
4,773
|
|
|
$
|
2,171,372
|
|
|
Total Loans December 31, 2013
|
||||||||||||||||||
|
Pass
|
|
Special
mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Loans excluded from ASC 310-30
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
374,281
|
|
|
$
|
9,882
|
|
|
$
|
37,414
|
|
|
$
|
407
|
|
|
$
|
421,984
|
|
Agriculture
|
123,216
|
|
|
9,049
|
|
|
687
|
|
|
—
|
|
|
132,952
|
|
|||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
5,339
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,339
|
|
|||||
Acquisition/development
|
1,366
|
|
|
2,247
|
|
|
4,407
|
|
|
—
|
|
|
8,020
|
|
|||||
Multifamily
|
9,588
|
|
|
—
|
|
|
1,068
|
|
|
28
|
|
|
10,684
|
|
|||||
Owner-occupied
|
87,984
|
|
|
169
|
|
|
5,294
|
|
|
—
|
|
|
93,447
|
|
|||||
Non owner-occupied
|
142,159
|
|
|
18,536
|
|
|
4,837
|
|
|
—
|
|
|
165,532
|
|
|||||
Total commercial real estate
|
246,436
|
|
|
20,952
|
|
|
15,606
|
|
|
28
|
|
|
283,022
|
|
|||||
Residential real estate
|
|
|
|
|
|
|
|
|
|
||||||||||
Senior lien
|
475,041
|
|
|
1,495
|
|
|
7,620
|
|
|
435
|
|
|
484,591
|
|
|||||
Junior lien
|
49,874
|
|
|
200
|
|
|
2,248
|
|
|
—
|
|
|
52,322
|
|
|||||
Total residential real estate
|
524,915
|
|
|
1,695
|
|
|
9,868
|
|
|
435
|
|
|
536,913
|
|
|||||
Consumer
|
28,092
|
|
|
—
|
|
|
251
|
|
|
—
|
|
|
28,343
|
|
|||||
Total loans excluded from ASC 310-30
|
$
|
1,296,940
|
|
|
$
|
41,578
|
|
|
$
|
63,826
|
|
|
$
|
870
|
|
|
$
|
1,403,214
|
|
Covered loans excluded from ASC 310-30
|
$
|
22,175
|
|
|
$
|
3,439
|
|
|
$
|
24,005
|
|
|
$
|
414
|
|
|
$
|
50,033
|
|
Non-covered loans excluded from ASC 310-30
|
1,274,765
|
|
|
38,139
|
|
|
39,821
|
|
|
456
|
|
|
1,353,181
|
|
|||||
Total loans excluded from ASC 310-30
|
$
|
1,296,940
|
|
|
$
|
41,578
|
|
|
$
|
63,826
|
|
|
$
|
870
|
|
|
$
|
1,403,214
|
|
Loans accounted for under ASC 310-30
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
23,129
|
|
|
$
|
3,221
|
|
|
$
|
34,440
|
|
|
$
|
721
|
|
|
$
|
61,511
|
|
Agriculture
|
21,900
|
|
|
1,117
|
|
|
3,983
|
|
|
—
|
|
|
27,000
|
|
|||||
Commercial real estate
|
115,903
|
|
|
12,493
|
|
|
157,748
|
|
|
5,054
|
|
|
291,198
|
|
|||||
Residential real estate
|
43,904
|
|
|
1,098
|
|
|
18,009
|
|
|
—
|
|
|
63,011
|
|
|||||
Consumer
|
6,921
|
|
|
244
|
|
|
995
|
|
|
—
|
|
|
8,160
|
|
|||||
Total loans accounted for under ASC 310-30
|
$
|
211,757
|
|
|
$
|
18,173
|
|
|
$
|
215,175
|
|
|
$
|
5,775
|
|
|
$
|
450,880
|
|
Covered loans accounted for under ASC 310-30
|
$
|
100,050
|
|
|
$
|
8,498
|
|
|
$
|
145,041
|
|
|
$
|
5,775
|
|
|
$
|
259,364
|
|
Non-covered loans accounted for under ASC 310-30
|
111,707
|
|
|
9,675
|
|
|
70,134
|
|
|
—
|
|
|
191,516
|
|
|||||
Total loans accounted for under ASC 310-30
|
$
|
211,757
|
|
|
$
|
18,173
|
|
|
$
|
215,175
|
|
|
$
|
5,775
|
|
|
$
|
450,880
|
|
Total loans
|
$
|
1,508,697
|
|
|
$
|
59,751
|
|
|
$
|
279,001
|
|
|
$
|
6,645
|
|
|
$
|
1,854,094
|
|
Total covered
|
$
|
122,225
|
|
|
$
|
11,937
|
|
|
$
|
169,046
|
|
|
$
|
6,189
|
|
|
$
|
309,397
|
|
Total non-covered
|
1,386,472
|
|
|
47,814
|
|
|
109,955
|
|
|
456
|
|
|
1,544,697
|
|
|||||
Total loans
|
$
|
1,508,697
|
|
|
$
|
59,751
|
|
|
$
|
279,001
|
|
|
$
|
6,645
|
|
|
$
|
1,854,094
|
|
|
Impaired Loans
|
||||||||||||||||||||||
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Unpaid
principal
balance
|
|
Recorded
investment
|
|
Allowance
for loan
losses
allocated
|
|
Unpaid
principal
balance
|
|
Recorded
investment
|
|
Allowance
for loan
losses
allocated
|
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
25,111
|
|
|
$
|
24,974
|
|
|
$
|
—
|
|
|
$
|
4,981
|
|
|
$
|
4,981
|
|
|
$
|
—
|
|
Agriculture
|
9,314
|
|
|
9,310
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Acquisition/development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Multifamily
|
—
|
|
|
—
|
|
|
—
|
|
|
987
|
|
|
929
|
|
|
—
|
|
||||||
Owner-occupied
|
1,746
|
|
|
1,514
|
|
|
—
|
|
|
1,872
|
|
|
1,655
|
|
|
—
|
|
||||||
Non-owner occupied
|
—
|
|
|
—
|
|
|
—
|
|
|
561
|
|
|
488
|
|
|
—
|
|
||||||
Total commercial real estate
|
1,746
|
|
|
1,514
|
|
|
—
|
|
|
3,420
|
|
|
3,072
|
|
|
—
|
|
||||||
Residential real estate
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Senior lien
|
376
|
|
|
363
|
|
|
—
|
|
|
506
|
|
|
494
|
|
|
—
|
|
||||||
Junior lien
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total residential real estate
|
376
|
|
|
363
|
|
|
—
|
|
|
506
|
|
|
494
|
|
|
—
|
|
||||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total impaired loans with no related allowance recorded
|
$
|
36,547
|
|
|
$
|
36,161
|
|
|
$
|
—
|
|
|
$
|
8,907
|
|
|
$
|
8,547
|
|
|
$
|
—
|
|
With a related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
1,030
|
|
|
$
|
801
|
|
|
$
|
39
|
|
|
$
|
2,529
|
|
|
$
|
2,379
|
|
|
$
|
416
|
|
Agriculture
|
181
|
|
|
150
|
|
|
—
|
|
|
191
|
|
|
173
|
|
|
1
|
|
||||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Acquisition/development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Multifamily
|
161
|
|
|
144
|
|
|
16
|
|
|
178
|
|
|
168
|
|
|
28
|
|
||||||
Owner-occupied
|
848
|
|
|
606
|
|
|
3
|
|
|
825
|
|
|
607
|
|
|
4
|
|
||||||
Non-owner occupied
|
1,142
|
|
|
1,061
|
|
|
12
|
|
|
640
|
|
|
628
|
|
|
4
|
|
||||||
Total commercial real estate
|
2,151
|
|
|
1,811
|
|
|
31
|
|
|
1,643
|
|
|
1,404
|
|
|
36
|
|
||||||
Residential real estate
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Senior lien
|
7,479
|
|
|
6,575
|
|
|
210
|
|
|
8,147
|
|
|
7,266
|
|
|
474
|
|
||||||
Junior lien
|
1,697
|
|
|
1,477
|
|
|
10
|
|
|
1,815
|
|
|
1,605
|
|
|
16
|
|
||||||
Total residential real estate
|
9,176
|
|
|
8,052
|
|
|
220
|
|
|
9,962
|
|
|
8,871
|
|
|
490
|
|
||||||
Consumer
|
280
|
|
|
250
|
|
|
3
|
|
|
290
|
|
|
273
|
|
|
3
|
|
||||||
Total impaired loans with a related allowance recorded
|
$
|
12,818
|
|
|
$
|
11,064
|
|
|
$
|
293
|
|
|
$
|
14,615
|
|
|
$
|
13,100
|
|
|
$
|
946
|
|
Total impaired loans
|
$
|
49,365
|
|
|
$
|
47,225
|
|
|
$
|
293
|
|
|
$
|
23,522
|
|
|
$
|
21,647
|
|
|
$
|
946
|
|
|
For the nine months ended
|
||||||||||||||
|
September 30, 2014
|
|
September 30, 2013
|
||||||||||||
|
Average recorded investment
|
|
Interest income recognized
|
|
Average recorded investment
|
|
Interest income recognized
|
||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
25,947
|
|
|
$
|
342
|
|
|
$
|
6,169
|
|
|
$
|
276
|
|
Agriculture
|
9,045
|
|
|
217
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate
|
|
|
|
|
|
|
|
||||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Acquisition/development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Multifamily
|
—
|
|
|
—
|
|
|
958
|
|
|
—
|
|
||||
Owner-occupied
|
1,578
|
|
|
63
|
|
|
4,031
|
|
|
226
|
|
||||
Non owner-occupied
|
—
|
|
|
—
|
|
|
5,188
|
|
|
8
|
|
||||
Total commercial real estate
|
1,578
|
|
|
63
|
|
|
10,177
|
|
|
234
|
|
||||
Residential real estate
|
|
|
|
|
|
|
|
||||||||
Senior lien
|
391
|
|
|
8
|
|
|
752
|
|
|
6
|
|
||||
Junior lien
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total residential real estate
|
391
|
|
|
8
|
|
|
752
|
|
|
6
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total impaired loans with no related allowance recorded
|
$
|
36,961
|
|
|
$
|
630
|
|
|
$
|
17,098
|
|
|
$
|
516
|
|
With a related allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Commercial
|
$
|
987
|
|
|
$
|
6
|
|
|
$
|
2,744
|
|
|
$
|
53
|
|
Agriculture
|
165
|
|
|
—
|
|
|
224
|
|
|
—
|
|
||||
Commercial real estate
|
|
|
|
|
|
|
|
||||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Acquisition/development
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Multifamily
|
156
|
|
|
—
|
|
|
187
|
|
|
—
|
|
||||
Owner-occupied
|
627
|
|
|
10
|
|
|
668
|
|
|
11
|
|
||||
Non owner-occupied
|
1,086
|
|
|
42
|
|
|
636
|
|
|
14
|
|
||||
Total commercial real estate
|
1,869
|
|
|
52
|
|
|
1,492
|
|
|
25
|
|
||||
Residential real estate
|
|
|
|
|
|
|
|
||||||||
Senior lien
|
6,738
|
|
|
81
|
|
|
7,310
|
|
|
71
|
|
||||
Junior lien
|
1,515
|
|
|
45
|
|
|
1,736
|
|
|
40
|
|
||||
Total residential real estate
|
8,253
|
|
|
126
|
|
|
9,046
|
|
|
111
|
|
||||
Consumer
|
266
|
|
|
1
|
|
|
313
|
|
|
3
|
|
||||
Total impaired loans with a related allowance recorded
|
$
|
11,540
|
|
|
$
|
185
|
|
|
$
|
13,819
|
|
|
$
|
192
|
|
Total impaired loans
|
$
|
48,501
|
|
|
$
|
815
|
|
|
$
|
30,917
|
|
|
$
|
708
|
|
|
Accruing TDRs
|
||||||||||||||
|
September 30, 2014
|
||||||||||||||
|
Recorded
investment
|
|
Average
year-to-
date
recorded
investment
|
|
Unpaid
principal
balance
|
|
Unfunded
commitments
to fund
TDRs
|
||||||||
Commercial
|
$
|
12,573
|
|
|
$
|
12,131
|
|
|
$
|
12,573
|
|
|
$
|
840
|
|
Agriculture
|
8,946
|
|
|
8,680
|
|
|
8,949
|
|
|
126
|
|
||||
Commercial real estate
|
620
|
|
|
631
|
|
|
632
|
|
|
—
|
|
||||
Residential real estate
|
2,877
|
|
|
2,932
|
|
|
2,902
|
|
|
2
|
|
||||
Consumer
|
20
|
|
|
21
|
|
|
20
|
|
|
—
|
|
||||
Total
|
$
|
25,036
|
|
|
$
|
24,395
|
|
|
$
|
25,076
|
|
|
$
|
968
|
|
|
Accruing TDRs
|
||||||||||||||
|
December 31, 2013
|
||||||||||||||
|
Recorded
investment
|
|
Average
year-to-
date
recorded
investment
|
|
Unpaid
principal
balance
|
|
Unfunded
commitments
to fund
TDRs
|
||||||||
Commercial
|
$
|
6,079
|
|
|
$
|
7,113
|
|
|
$
|
6,084
|
|
|
$
|
144
|
|
Agriculture
|
20
|
|
|
20
|
|
|
20
|
|
|
—
|
|
||||
Commercial real estate
|
2,484
|
|
|
2,759
|
|
|
2,743
|
|
|
—
|
|
||||
Residential real estate
|
2,995
|
|
|
3,055
|
|
|
3,023
|
|
|
12
|
|
||||
Consumer
|
27
|
|
|
30
|
|
|
27
|
|
|
12
|
|
||||
Total
|
$
|
11,605
|
|
|
$
|
12,977
|
|
|
$
|
11,897
|
|
|
$
|
168
|
|
|
Non - Accruing TDRs
|
||||||||||||||
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||||
|
Covered
|
|
Non-covered
|
|
Covered
|
|
Non-covered
|
||||||||
Commercial
|
$
|
1
|
|
|
$
|
429
|
|
|
$
|
—
|
|
|
$
|
535
|
|
Agriculture
|
201
|
|
|
180
|
|
|
—
|
|
|
—
|
|
||||
Commercial real estate
|
246
|
|
|
470
|
|
|
296
|
|
|
98
|
|
||||
Residential real estate
|
945
|
|
|
996
|
|
|
1,377
|
|
|
1,031
|
|
||||
Consumer
|
—
|
|
|
199
|
|
|
—
|
|
|
237
|
|
||||
Total
|
$
|
1,393
|
|
|
$
|
2,274
|
|
|
$
|
1,673
|
|
|
$
|
1,901
|
|
|
September 30,
2014 |
|
September 30,
2013 |
||||
Accretable yield beginning balance
|
$
|
130,624
|
|
|
$
|
133,585
|
|
Reclassification from non-accretable difference
|
30,394
|
|
|
55,351
|
|
||
Reclassification to non-accretable difference
|
(1,264
|
)
|
|
(5,234
|
)
|
||
Accretion
|
(46,646
|
)
|
|
(59,616
|
)
|
||
Accretable yield ending balance
|
$
|
113,108
|
|
|
$
|
124,086
|
|
|
September 30,
2014 |
|
December 31,
2013 |
||||
Contractual cash flows
|
$
|
807,075
|
|
|
$
|
984,019
|
|
Non-accretable difference
|
(373,374
|
)
|
|
(402,515
|
)
|
||
Accretable yield
|
(113,108
|
)
|
|
(130,624
|
)
|
||
Loans accounted for under ASC 310-30
|
$
|
320,593
|
|
|
$
|
450,880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three months ended September 30, 2014
|
||||||||||||||||||||||
|
Commercial
|
|
Agriculture
|
|
Commercial
real estate
|
|
Residential
real estate
|
|
Consumer
|
|
Total
|
||||||||||||
Beginning balance
|
$
|
6,421
|
|
|
$
|
1,407
|
|
|
$
|
2,969
|
|
|
$
|
4,310
|
|
|
$
|
465
|
|
|
$
|
15,572
|
|
Non 310-30 beginning balance
|
6,420
|
|
|
610
|
|
|
2,735
|
|
|
4,244
|
|
|
465
|
|
|
14,474
|
|
||||||
Charge-offs
|
(86
|
)
|
|
—
|
|
|
—
|
|
|
(470
|
)
|
|
(230
|
)
|
|
(786
|
)
|
||||||
Recoveries
|
189
|
|
|
8
|
|
|
16
|
|
|
22
|
|
|
55
|
|
|
290
|
|
||||||
Provision
|
859
|
|
|
102
|
|
|
166
|
|
|
338
|
|
|
241
|
|
|
1,706
|
|
||||||
Non 310-30 ending balance
|
7,382
|
|
|
720
|
|
|
2,917
|
|
|
4,134
|
|
|
531
|
|
|
15,684
|
|
||||||
ASC 310-30 beginning balance
|
1
|
|
|
797
|
|
|
234
|
|
|
66
|
|
|
—
|
|
|
1,098
|
|
||||||
Charge-offs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Recoveries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Provision (recoupment)
|
—
|
|
|
(184
|
)
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
(191
|
)
|
||||||
ASC 310-30 ending balance
|
1
|
|
|
613
|
|
|
227
|
|
|
66
|
|
|
—
|
|
|
907
|
|
||||||
Ending balance
|
$
|
7,383
|
|
|
$
|
1,333
|
|
|
$
|
3,144
|
|
|
$
|
4,200
|
|
|
$
|
531
|
|
|
$
|
16,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three months ended September 30, 2013
|
||||||||||||||||||||||
|
Commercial
|
|
Agriculture
|
|
Commercial
real estate
|
|
Residential
real estate
|
|
Consumer
|
|
Total
|
||||||||||||
Beginning balance
|
$
|
2,286
|
|
|
$
|
764
|
|
|
$
|
2,419
|
|
|
$
|
5,907
|
|
|
$
|
471
|
|
|
$
|
11,847
|
|
Non 310-30 beginning balance
|
2,240
|
|
|
495
|
|
|
2,113
|
|
|
4,333
|
|
|
471
|
|
|
9,652
|
|
||||||
Charge-offs
|
(401
|
)
|
|
—
|
|
|
—
|
|
|
(117
|
)
|
|
(276
|
)
|
|
(794
|
)
|
||||||
Recoveries
|
92
|
|
|
—
|
|
|
17
|
|
|
23
|
|
|
75
|
|
|
207
|
|
||||||
Provision (recoupment)
|
715
|
|
|
27
|
|
|
(205
|
)
|
|
27
|
|
|
186
|
|
|
750
|
|
||||||
Non 310-30 ending balance
|
2,646
|
|
|
522
|
|
|
1,925
|
|
|
4,266
|
|
|
456
|
|
|
9,815
|
|
||||||
ASC 310-30 beginning balance
|
46
|
|
|
269
|
|
|
306
|
|
|
1,574
|
|
|
—
|
|
|
2,195
|
|
||||||
Charge-offs
|
—
|
|
|
(221
|
)
|
|
—
|
|
|
(57
|
)
|
|
—
|
|
|
(278
|
)
|
||||||
Recoveries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Provision (recoupment)
|
43
|
|
|
537
|
|
|
(8
|
)
|
|
(885
|
)
|
|
—
|
|
|
(313
|
)
|
||||||
ASC 310-30 ending balance
|
89
|
|
|
585
|
|
|
298
|
|
|
632
|
|
|
—
|
|
|
1,604
|
|
||||||
Ending balance
|
$
|
2,735
|
|
|
$
|
1,107
|
|
|
$
|
2,223
|
|
|
$
|
4,898
|
|
|
$
|
456
|
|
|
$
|
11,419
|
|
|
Nine months ended September 30, 2014
|
||||||||||||||||||||||
|
Commercial
|
|
Agriculture
|
|
Commercial
real estate
|
|
Residential
real estate
|
|
Consumer
|
|
Total
|
||||||||||||
Beginning balance
|
$
|
4,258
|
|
|
$
|
1,237
|
|
|
$
|
2,276
|
|
|
$
|
4,259
|
|
|
$
|
491
|
|
|
$
|
12,521
|
|
Non 310-30 beginning balance
|
4,029
|
|
|
572
|
|
|
1,984
|
|
|
4,165
|
|
|
491
|
|
|
11,241
|
|
||||||
Charge-offs
|
(498
|
)
|
|
—
|
|
|
—
|
|
|
(539
|
)
|
|
(585
|
)
|
|
(1,622
|
)
|
||||||
Recoveries
|
306
|
|
|
8
|
|
|
70
|
|
|
197
|
|
|
205
|
|
|
786
|
|
||||||
Provision
|
3,545
|
|
|
140
|
|
|
863
|
|
|
311
|
|
|
420
|
|
|
5,279
|
|
||||||
Non 310-30 ending balance
|
7,382
|
|
|
720
|
|
|
2,917
|
|
|
4,134
|
|
|
531
|
|
|
15,684
|
|
||||||
ASC 310-30 beginning balance
|
229
|
|
|
665
|
|
|
292
|
|
|
94
|
|
|
—
|
|
|
1,280
|
|
||||||
Charge-offs
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36
|
)
|
|
(38
|
)
|
||||||
Recoveries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Provision (recoupment)
|
(226
|
)
|
|
(52
|
)
|
|
(65
|
)
|
|
(28
|
)
|
|
36
|
|
|
(335
|
)
|
||||||
ASC 310-30 ending balance
|
1
|
|
|
613
|
|
|
227
|
|
|
66
|
|
|
—
|
|
|
907
|
|
||||||
Ending balance
|
$
|
7,383
|
|
|
$
|
1,333
|
|
|
$
|
3,144
|
|
|
$
|
4,200
|
|
|
$
|
531
|
|
|
$
|
16,591
|
|
Ending allowance balance attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non 310-30 loans individually evaluated for impairment
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
31
|
|
|
$
|
220
|
|
|
$
|
3
|
|
|
$
|
293
|
|
Non 310-30 loans collectively evaluated for impairment
|
7,343
|
|
|
720
|
|
|
2,886
|
|
|
3,914
|
|
|
528
|
|
|
15,391
|
|
||||||
ASC 310-30 loans
|
1
|
|
|
613
|
|
|
227
|
|
|
66
|
|
|
—
|
|
|
907
|
|
||||||
Total ending allowance balance
|
$
|
7,383
|
|
|
$
|
1,333
|
|
|
$
|
3,144
|
|
|
$
|
4,200
|
|
|
$
|
531
|
|
|
$
|
16,591
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non 310-30 individually evaluated for impairment
|
$
|
25,776
|
|
|
$
|
9,460
|
|
|
$
|
3,325
|
|
|
$
|
8,415
|
|
|
$
|
250
|
|
|
$
|
47,226
|
|
Non 310-30 collectively evaluated for impairment
|
691,731
|
|
|
133,341
|
|
|
377,120
|
|
|
571,005
|
|
|
30,356
|
|
|
1,803,553
|
|
||||||
ASC 310-30 loans
|
37,665
|
|
|
20,071
|
|
|
213,871
|
|
|
43,979
|
|
|
5,007
|
|
|
320,593
|
|
||||||
Total loans
|
$
|
755,172
|
|
|
$
|
162,872
|
|
|
$
|
594,316
|
|
|
$
|
623,399
|
|
|
$
|
35,613
|
|
|
$
|
2,171,372
|
|
|
Nine months ended September 30, 2013
|
||||||||||||||||||||||
|
Commercial
|
|
Agriculture
|
|
Commercial
real estate
|
|
Residential
real estate
|
|
Consumer
|
|
Total
|
||||||||||||
Beginning balance
|
$
|
2,798
|
|
|
$
|
592
|
|
|
$
|
7,396
|
|
|
$
|
4,011
|
|
|
$
|
583
|
|
|
$
|
15,380
|
|
Non 310-30 beginning balance
|
2,798
|
|
|
323
|
|
|
3,056
|
|
|
4,011
|
|
|
540
|
|
|
10,728
|
|
||||||
Charge-offs
|
(1,654
|
)
|
|
—
|
|
|
(943
|
)
|
|
(741
|
)
|
|
(717
|
)
|
|
(4,055
|
)
|
||||||
Recoveries
|
187
|
|
|
13
|
|
|
129
|
|
|
64
|
|
|
224
|
|
|
617
|
|
||||||
Provision (recoupment)
|
1,315
|
|
|
186
|
|
|
(317
|
)
|
|
932
|
|
|
409
|
|
|
2,525
|
|
||||||
Non 310-30 ending balance
|
2,646
|
|
|
522
|
|
|
1,925
|
|
|
4,266
|
|
|
456
|
|
|
9,815
|
|
||||||
ASC 310-30 beginning balance
|
—
|
|
|
269
|
|
|
4,340
|
|
|
—
|
|
|
43
|
|
|
4,652
|
|
||||||
Charge-offs
|
(407
|
)
|
|
(221
|
)
|
|
(2,796
|
)
|
|
(623
|
)
|
|
—
|
|
|
(4,047
|
)
|
||||||
Recoveries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Provision (recoupment)
|
496
|
|
|
537
|
|
|
(1,246
|
)
|
|
1,255
|
|
|
(43
|
)
|
|
999
|
|
||||||
ASC 310-30 ending balance
|
89
|
|
|
585
|
|
|
298
|
|
|
632
|
|
|
—
|
|
|
1,604
|
|
||||||
Ending balance
|
$
|
2,735
|
|
|
$
|
1,107
|
|
|
$
|
2,223
|
|
|
$
|
4,898
|
|
|
$
|
456
|
|
|
$
|
11,419
|
|
Ending allowance balance attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non 310-30 loans individually evaluated for impairment
|
$
|
92
|
|
|
$
|
1
|
|
|
$
|
40
|
|
|
$
|
533
|
|
|
$
|
7
|
|
|
$
|
673
|
|
Non 310-30 loans collectively evaluated for impairment
|
2,554
|
|
|
521
|
|
|
1,885
|
|
|
3,733
|
|
|
449
|
|
|
9,142
|
|
||||||
ASC 310-30 loans
|
89
|
|
|
585
|
|
|
298
|
|
|
632
|
|
|
—
|
|
|
1,604
|
|
||||||
Total ending allowance balance
|
$
|
2,735
|
|
|
$
|
1,107
|
|
|
$
|
2,223
|
|
|
$
|
4,898
|
|
|
$
|
456
|
|
|
$
|
11,419
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non 310-30 individually evaluated for impairment
|
$
|
7,670
|
|
|
$
|
223
|
|
|
$
|
11,258
|
|
|
$
|
9,629
|
|
|
$
|
295
|
|
|
$
|
29,075
|
|
Non 310-30 collectively evaluated for impairment
|
264,444
|
|
|
117,241
|
|
|
277,494
|
|
|
513,531
|
|
|
28,018
|
|
|
1,200,728
|
|
||||||
ASC 310-30 loans
|
68,250
|
|
|
37,882
|
|
|
325,701
|
|
|
72,409
|
|
|
8,768
|
|
|
513,010
|
|
||||||
Total loans
|
$
|
340,364
|
|
|
$
|
155,346
|
|
|
$
|
614,453
|
|
|
$
|
595,569
|
|
|
$
|
37,081
|
|
|
$
|
1,742,813
|
|
|
For the nine months ended
|
||||||
|
September 30,
2014 |
|
September 30,
2013 |
||||
Balance at beginning of period
|
$
|
64,447
|
|
|
$
|
86,923
|
|
Amortization
|
(19,819
|
)
|
|
(11,843
|
)
|
||
FDIC portion of (recoveries) charge-offs exceeding fair value marks
|
(34
|
)
|
|
7,466
|
|
||
Changes for FDIC loss share submissions
|
(181
|
)
|
|
(24,460
|
)
|
||
Balance at end of period
|
$
|
44,413
|
|
|
$
|
58,086
|
|
|
For the nine months ended September 30,
|
||||||
|
2014
|
|
2013
|
||||
Beginning balance
|
$
|
70,125
|
|
|
$
|
94,808
|
|
Transfers from loan portfolio, at fair value
|
2,519
|
|
|
32,408
|
|
||
Impairments
|
(1,789
|
)
|
|
(9,142
|
)
|
||
Sales
|
(27,656
|
)
|
|
(54,705
|
)
|
||
Gain on sale of OREO, net
|
2,686
|
|
|
7,384
|
|
||
Ending balance
|
$
|
45,885
|
|
|
$
|
70,753
|
|
|
September 30, 2014
|
|||||||||||||||||||
|
Actual
|
|
Required to be
considered well
capitalized
(1)
|
|
Required to be
considered
adequately
capitalized
|
|||||||||||||||
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|||||||||
Tier 1 leverage ratio
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
15.2
|
%
|
|
$
|
729,216
|
|
|
N/A
|
|
|
N/A
|
|
|
4
|
%
|
|
$
|
191,465
|
|
|
NBH Bank, N.A.
|
11.9
|
%
|
|
568,864
|
|
|
10
|
%
|
|
$
|
476,688
|
|
|
4
|
%
|
|
190,675
|
|
||
Tier 1 risk-based capital ratio
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
29.4
|
%
|
|
$
|
729,216
|
|
|
6
|
%
|
|
$
|
148,680
|
|
|
4
|
%
|
|
$
|
99,120
|
|
NBH Bank, N.A.
|
23.1
|
%
|
|
568,864
|
|
|
11
|
%
|
|
270,429
|
|
|
4
|
%
|
|
98,338
|
|
|||
Total risk-based capital ratio
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
30.1
|
%
|
|
$
|
746,208
|
|
|
10
|
%
|
|
$
|
247,800
|
|
|
8
|
%
|
|
$
|
198,240
|
|
NBH Bank, N.A.
|
23.8
|
%
|
|
585,856
|
|
|
12
|
%
|
|
295,014
|
|
|
8
|
%
|
|
196,676
|
|
|
December 31, 2013
|
|||||||||||||||||||
|
Actual
|
|
Required to be
considered well
capitalized
(1)
|
|
Required to be
considered
adequately
capitalized
|
|||||||||||||||
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|||||||||
Tier 1 leverage ratio
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
16.6
|
%
|
|
$
|
822,688
|
|
|
N/A
|
|
|
N/A
|
|
|
4
|
%
|
|
$
|
197,906
|
|
|
NBH Bank, N.A.
|
11.3
|
%
|
|
556,876
|
|
|
10
|
%
|
|
$
|
491,294
|
|
|
4
|
%
|
|
196,518
|
|
||
Tier 1 risk-based capital ratio
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
38.9
|
%
|
|
$
|
822,688
|
|
|
6
|
%
|
|
$
|
126,865
|
|
|
4
|
%
|
|
$
|
84,577
|
|
NBH Bank, N.A.
|
26.6
|
%
|
|
556,876
|
|
|
11
|
%
|
|
230,334
|
|
|
4
|
%
|
|
83,758
|
|
|||
Total risk-based capital ratio
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
39.5
|
%
|
|
$
|
835,810
|
|
|
10
|
%
|
|
$
|
211,442
|
|
|
8
|
%
|
|
$
|
169,153
|
|
NBH Bank, N.A.
|
27.2
|
%
|
|
569,998
|
|
|
12
|
%
|
|
251,273
|
|
|
8
|
%
|
|
167,515
|
|
(1)
|
These ratio requirements for NBH Bank, N.A. are reflective of the agreements NBH Bank, N.A. has made with its various regulators in connection with the approval of its de novo charter.
|
(2)
|
Due to the conditional guarantee represented by the loss sharing agreements, the FDIC indemnification asset and covered assets are risk-weighted at
20%
for purposes of risk-based capital computations.
|
|
For the three months ended
|
|
For the nine months ended
|
||||||||||||
|
September 30, 2014
|
|
September 30, 2013
|
|
September 30, 2014
|
|
September 30, 2013
|
||||||||
Clawback liability amortization
|
$
|
(345
|
)
|
|
$
|
(314
|
)
|
|
$
|
(1,009
|
)
|
|
$
|
(937
|
)
|
Clawback liability remeasurement
|
(592
|
)
|
|
(405
|
)
|
|
(1,646
|
)
|
|
244
|
|
||||
Reimbursement to FDIC for gain on sale of and income from covered OREO
|
(1,587
|
)
|
|
(2,514
|
)
|
|
(3,287
|
)
|
|
(4,615
|
)
|
||||
Reimbursement to FDIC for recoveries
|
(62
|
)
|
|
—
|
|
|
(180
|
)
|
|
(22
|
)
|
||||
FDIC reimbursement of covered asset resolution costs
|
1,643
|
|
|
2,042
|
|
|
3,573
|
|
|
8,608
|
|
||||
Total
|
$
|
(943
|
)
|
|
$
|
(1,191
|
)
|
|
$
|
(2,549
|
)
|
|
$
|
3,278
|
|
|
Options
|
|
Weighted
Average
Exercise
Price
|
|
Weighted
Average
Remaining
Contractual
Term in
Years
|
|
Aggregate
Intrinsic
Value
|
|||||
Outstanding at December 31, 2013
|
3,515,486
|
|
|
$
|
19.92
|
|
|
6.13
|
|
$
|
5,183,567
|
|
Granted
|
114,148
|
|
|
18.93
|
|
|
|
|
|
|||
Forfeited
|
(4,360
|
)
|
|
18.36
|
|
|
|
|
|
|||
Surrendered
|
(9,705
|
)
|
|
20.00
|
|
|
|
|
|
|||
Exercised
|
(295
|
)
|
|
20.00
|
|
|
|
|
|
|||
Expired
|
(2,083
|
)
|
|
20.00
|
|
|
|
|
|
|||
Outstanding at September 30, 2014
|
3,613,191
|
|
|
$
|
19.89
|
|
|
5.53
|
|
$
|
168,864
|
|
Options fully vested and exercisable at September 30, 2014
|
2,957,498
|
|
|
$
|
19.99
|
|
|
5.30
|
|
$
|
—
|
|
Options expected to vest
|
611,407
|
|
|
$
|
19.50
|
|
|
6.39
|
|
$
|
142,375
|
|
|
Total Restricted Shares
|
|
Weighted Average Grant-Date Fair Value
|
|||
Unvested at December 31, 2013
|
1,064,460
|
|
|
$
|
15.16
|
|
Vested
|
(29,651
|
)
|
|
19.50
|
|
|
Granted
|
147,086
|
|
|
18.98
|
|
|
Forfeited
|
(13,780
|
)
|
|
14.58
|
|
|
Surrendered
|
(18,610
|
)
|
|
19.16
|
|
|
Unvested at September 30, 2014
|
1,149,505
|
|
|
$
|
15.48
|
|
|
September 30, 2014
|
|
December 31, 2013
|
||
Risk-free interest rate
|
1.87
|
%
|
|
2.16
|
%
|
Expected volatility
|
25.85
|
%
|
|
33.80
|
%
|
Expected term (years)
|
5-6
|
|
|
6-7
|
|
Dividend yield
|
1.05
|
%
|
|
0.93
|
%
|
|
For the three months ended
|
|
For the nine months ended
|
||||||||||||
|
September 30,
2014 |
|
September 30,
2013 |
|
September 30,
2014 |
|
September 30,
2013 |
||||||||
Distributed earnings
|
$
|
2,159
|
|
|
$
|
2,622
|
|
|
$
|
6,666
|
|
|
$
|
7,934
|
|
Undistributed earnings (distributions in excess of earnings)
|
1,178
|
|
|
(1,675
|
)
|
|
231
|
|
|
(2,007
|
)
|
||||
Net income
|
$
|
3,337
|
|
|
$
|
947
|
|
|
$
|
6,897
|
|
|
$
|
5,927
|
|
Less: earnings allocated to participating securities
|
(12
|
)
|
|
(5
|
)
|
|
(28
|
)
|
|
(12
|
)
|
||||
Earnings allocated to common shareholders
|
$
|
3,325
|
|
|
$
|
942
|
|
|
$
|
6,869
|
|
|
$
|
5,915
|
|
Weighted average shares outstanding for basic earnings per common share
|
41,837,485
|
|
|
51,454,200
|
|
|
43,403,791
|
|
|
51,940,245
|
|
||||
Dilutive effect of equity awards
|
4,200
|
|
|
45,301
|
|
|
19,482
|
|
|
32,916
|
|
||||
Dilutive effect of warrants
|
—
|
|
|
2,479
|
|
|
—
|
|
|
—
|
|
||||
Weighted average shares outstanding for diluted earnings per common share
|
41,841,685
|
|
|
51,501,980
|
|
|
43,423,273
|
|
|
51,973,161
|
|
||||
Basic earnings per share
|
$
|
0.08
|
|
|
$
|
0.02
|
|
|
$
|
0.16
|
|
|
$
|
0.11
|
|
Diluted earnings per share
|
$
|
0.08
|
|
|
$
|
0.02
|
|
|
$
|
0.16
|
|
|
$
|
0.11
|
|
|
|
|
Asset Derivatives
|
|
|
|
Liability Derivatives
|
||||||||||||
|
|
|
Fair Value
|
|
|
|
Fair Value
|
||||||||||||
|
Balance Sheet Location
|
|
September 30, 2014
|
|
December 31, 2013
|
|
Balance Sheet Location
|
|
September 30, 2014
|
|
December 31, 2013
|
||||||||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate products
|
Other assets
|
|
$
|
17
|
|
|
$
|
129
|
|
|
Other liabilities
|
|
$
|
1,259
|
|
|
$
|
—
|
|
Total derivatives designated as hedging instruments
|
|
|
$
|
17
|
|
|
$
|
129
|
|
|
|
|
$
|
1,259
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate products
|
Other assets
|
|
$
|
721
|
|
|
$
|
73
|
|
|
Other liabilities
|
|
$
|
774
|
|
|
$
|
74
|
|
Total derivatives not designated as hedging instruments
|
|
|
$
|
721
|
|
|
$
|
73
|
|
|
|
|
$
|
774
|
|
|
$
|
74
|
|
Derivatives in fair value hedging relationships
|
|
Location of loss recognized in income on derivatives
|
|
Amount of loss recognized in income on derivatives
|
||||||||||||||
|
Three months ended September 30,
|
|
For the nine months ended September 30,
|
|||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|||||||||||
Interest rate products
|
|
Interest income
|
|
$
|
(36
|
)
|
|
$
|
—
|
|
|
$
|
(1,371
|
)
|
|
$
|
—
|
|
Total
|
|
|
|
$
|
(36
|
)
|
|
$
|
—
|
|
|
$
|
(1,371
|
)
|
|
$
|
—
|
|
Derivatives in fair value hedging relationships
|
|
Location of gain or (loss) recognized in income on derivatives
|
|
Amount of gain or (loss) recognized in income on hedged items
|
||||||||||||||
|
Three months ended September 30,
|
|
For the nine months ended September 30,
|
|||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|||||||||||
Interest rate products
|
|
Interest income
|
|
$
|
(10
|
)
|
|
$
|
—
|
|
|
$
|
1,185
|
|
|
$
|
—
|
|
Total
|
|
|
|
$
|
(10
|
)
|
|
$
|
—
|
|
|
$
|
1,185
|
|
|
$
|
—
|
|
|
|
|
|
Amount of loss recognized in income on derivatives
|
|||||||||||||
|
|
|
|
Three months ended September 30,
|
|
For the nine months ended September 30,
|
|||||||||||
Derivatives not designated as hedging instruments
|
|
Location of loss recognized in income on derivatives
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|||||||
Interest rate products
|
|
Other non-interest income
|
|
$
|
(1
|
)
|
|
$
|
(7
|
)
|
|
$
|
(51
|
)
|
|
(7
|
)
|
Total
|
|
|
|
$
|
(1
|
)
|
|
$
|
(7
|
)
|
|
$
|
(51
|
)
|
|
(7
|
)
|
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Covered
|
|
Non-covered
|
|
Total
|
|
Covered
|
|
Non-covered
|
|
Total
|
||||||||||||
Commitments to fund loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential
|
$
|
—
|
|
|
$
|
2,015
|
|
|
$
|
2,015
|
|
|
$
|
—
|
|
|
$
|
1,303
|
|
|
$
|
1,303
|
|
Commercial and commercial real estate
|
11
|
|
|
200,113
|
|
|
200,124
|
|
|
415
|
|
|
169,214
|
|
|
169,629
|
|
||||||
Construction and land development
|
—
|
|
|
31,447
|
|
|
31,447
|
|
|
—
|
|
|
2,911
|
|
|
2,911
|
|
||||||
Consumer
|
—
|
|
|
4,224
|
|
|
4,224
|
|
|
—
|
|
|
4,435
|
|
|
4,435
|
|
||||||
Credit card lines of credit
|
—
|
|
|
18,733
|
|
|
18,733
|
|
|
—
|
|
|
17,322
|
|
|
17,322
|
|
||||||
Unfunded commitments under lines of credit
|
7,895
|
|
|
210,961
|
|
|
218,856
|
|
|
13,162
|
|
|
175,177
|
|
|
188,339
|
|
||||||
Commercial and standby letters of credit
|
234
|
|
|
6,929
|
|
|
7,163
|
|
|
443
|
|
|
5,487
|
|
|
5,930
|
|
||||||
Total
|
$
|
8,140
|
|
|
$
|
474,422
|
|
|
$
|
482,562
|
|
|
$
|
14,020
|
|
|
$
|
375,849
|
|
|
$
|
389,869
|
|
•
|
Level 1—Includes assets or liabilities in which the inputs to the valuation methodologies are based on unadjusted quoted prices in active markets for identical assets or liabilities.
|
•
|
Level 2—Includes assets or liabilities in which the inputs to the valuation methodologies are based on similar assets or liabilities in inactive markets, quoted prices for identical or similar assets or liabilities in inactive markets, and inputs other than quoted prices that are observable, such as interest rates, yield curves, volatilities, prepayment speeds, and other inputs obtained from observable market input.
|
•
|
Level 3—Includes assets or liabilities in which the inputs to the valuation methodology are based on at least one significant assumption that is not observable in the marketplace. These valuations may rely on management’s judgment and may include internally-developed model-based valuation techniques.
|
|
September 30, 2014
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
||||||||
Asset backed securities
|
$
|
—
|
|
|
$
|
356
|
|
|
$
|
—
|
|
|
$
|
356
|
|
Mortgage-backed securities (“MBS”):
|
|
|
|
|
|
|
|
||||||||
Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
—
|
|
|
427,127
|
|
|
—
|
|
|
427,127
|
|
||||
Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
—
|
|
|
1,125,739
|
|
|
—
|
|
|
1,125,739
|
|
||||
Other securities
|
—
|
|
|
—
|
|
|
419
|
|
|
419
|
|
||||
Derivatives
|
—
|
|
|
738
|
|
|
—
|
|
|
738
|
|
||||
Total assets at fair value
|
$
|
—
|
|
|
$
|
1,553,960
|
|
|
$
|
419
|
|
|
$
|
1,554,379
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Warrant liability
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,547
|
|
|
$
|
3,547
|
|
Clawback liability
|
—
|
|
|
—
|
|
|
35,120
|
|
|
35,120
|
|
||||
Derivatives
|
—
|
|
|
2,033
|
|
|
—
|
|
|
2,033
|
|
||||
Total liabilities at fair value
|
$
|
—
|
|
|
$
|
2,033
|
|
|
$
|
38,667
|
|
|
$
|
40,700
|
|
|
December 31, 2013
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
||||||||
Asset backed securities
|
$
|
—
|
|
|
$
|
4,537
|
|
|
$
|
—
|
|
|
$
|
4,537
|
|
Mortgage-backed securities (“MBS”):
|
|
|
|
|
|
|
|
||||||||
Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
—
|
|
|
494,990
|
|
|
—
|
|
|
494,990
|
|
||||
Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
—
|
|
|
1,285,582
|
|
|
—
|
|
|
1,285,582
|
|
||||
Other securities
|
—
|
|
|
—
|
|
|
419
|
|
|
419
|
|
||||
Derivatives
|
—
|
|
|
202
|
|
|
—
|
|
|
202
|
|
||||
Total assets at fair value
|
$
|
—
|
|
|
$
|
1,785,311
|
|
|
$
|
419
|
|
|
$
|
1,785,730
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Warrant liability
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,281
|
|
|
$
|
6,281
|
|
Clawback liability
|
—
|
|
|
—
|
|
|
32,465
|
|
|
32,465
|
|
||||
Derivatives
|
—
|
|
|
74
|
|
|
|
|
74
|
|
|||||
Total liabilities at fair value
|
$
|
—
|
|
|
$
|
74
|
|
|
$
|
38,746
|
|
|
$
|
38,820
|
|
|
Warrant
liability
|
|
Clawback
liability
|
||||
Balance at December 31, 2012
|
$
|
5,461
|
|
|
$
|
31,271
|
|
Change in value
|
138
|
|
|
(244
|
)
|
||
Amortization
|
—
|
|
|
937
|
|
||
Net change in level 3
|
$
|
138
|
|
|
$
|
693
|
|
Balance at September 30, 2013
|
$
|
5,599
|
|
|
$
|
31,964
|
|
Balance at December 31, 2013
|
$
|
6,281
|
|
|
$
|
32,465
|
|
Change in value
|
(2,734
|
)
|
|
1,646
|
|
||
Amortization
|
—
|
|
|
1,009
|
|
||
Net change in Level 3
|
(2,734
|
)
|
|
2,655
|
|
||
Balance at September 30, 2014
|
$
|
3,547
|
|
|
$
|
35,120
|
|
|
September 30, 2014
|
||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Losses from fair value changes
|
||||||||||
Other real estate owned
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
45,885
|
|
|
$
|
45,885
|
|
|
$
|
1,789
|
|
Impaired loans
|
—
|
|
|
—
|
|
|
47,225
|
|
|
47,225
|
|
|
145
|
|
|
September 30, 2013
|
||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Losses from fair value changes
|
||||||||||
Other real estate owned
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70,753
|
|
|
$
|
70,753
|
|
|
$
|
9,142
|
|
Impaired loans
|
—
|
|
|
—
|
|
|
29,075
|
|
|
29,075
|
|
|
1,305
|
|
|
Fair value at
September 30,
2014
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Quantitative
Measures
|
||
Other securities
|
$
|
419
|
|
|
Cash investment in private equity fund
|
|
Cash investment
|
|
|
Impaired loans
|
47,225
|
|
|
Appraised value
|
|
Appraised values
|
|
|
|
|
|
|
|
|
Discount rate
|
|
0-25%
|
||
Clawback liability
|
35,120
|
|
|
Contractually defined discounted cash flows
|
|
Intrinsic loss estimates
|
|
$323.3 million -
$405 million |
|
|
|
|
|
|
Expected credit losses
|
|
—
|
||
|
|
|
|
|
Discount rate
|
|
4%
|
||
Warrant liability
|
3,547
|
|
|
Black-Scholes
|
|
Volatility
|
|
18%-36%
|
|
|
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||||
|
Level in fair
value
measurement
hierarchy
|
|
Carrying
amount
|
|
Estimated
fair value
|
|
Carrying
amount
|
|
Estimated
fair value
|
||||||||
ASSETS:
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
Level 1
|
|
$
|
118,659
|
|
|
$
|
118,659
|
|
|
$
|
189,460
|
|
|
$
|
189,460
|
|
Asset backed securities available-for-sale
|
Level 2
|
|
356
|
|
|
356
|
|
|
4,537
|
|
|
4,537
|
|
||||
Mortgage-backed securities—residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises available-for-sale
|
Level 2
|
|
427,127
|
|
|
427,127
|
|
|
494,990
|
|
|
494,990
|
|
||||
Mortgage-backed securities—other residential mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored enterprises available-for-sale
|
Level 2
|
|
1,125,739
|
|
|
1,125,739
|
|
|
1,285,582
|
|
|
1,285,582
|
|
||||
Other securities
|
Level 3
|
|
419
|
|
|
419
|
|
|
419
|
|
|
419
|
|
||||
Mortgage-backed securities—residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity
|
Level 2
|
|
444,104
|
|
|
447,424
|
|
|
513,090
|
|
|
511,489
|
|
||||
Mortgage-backed securities—other residential mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity
|
Level 2
|
|
113,360
|
|
|
110,169
|
|
|
128,817
|
|
|
124,916
|
|
||||
Capital stock of FHLB
|
Level 2
|
|
6,010
|
|
|
6,010
|
|
|
6,643
|
|
|
6,643
|
|
||||
Capital stock of FRB
|
Level 2
|
|
15,630
|
|
|
15,630
|
|
|
25,020
|
|
|
25,020
|
|
||||
Loans receivable, net
|
Level 3
|
|
2,154,781
|
|
|
2,194,983
|
|
|
1,841,573
|
|
|
1,923,888
|
|
||||
Loans held-for-sale
|
Level 2
|
|
5,252
|
|
|
5,252
|
|
|
5,787
|
|
|
5,787
|
|
||||
Accrued interest receivable
|
Level 2
|
|
12,851
|
|
|
12,851
|
|
|
11,355
|
|
|
11,355
|
|
||||
Derivatives
|
Level 2
|
|
738
|
|
|
738
|
|
|
202
|
|
|
202
|
|
||||
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
||||||||
Deposit transaction accounts
|
Level 2
|
|
2,401,388
|
|
|
2,401,388
|
|
|
2,342,622
|
|
|
2,342,622
|
|
||||
Time deposits
|
Level 2
|
|
1,396,070
|
|
|
1,397,401
|
|
|
1,495,687
|
|
|
1,498,798
|
|
||||
Securities sold under agreements to repurchase
|
Level 2
|
|
109,946
|
|
|
109,946
|
|
|
99,547
|
|
|
99,547
|
|
||||
Due to FDIC
|
Level 3
|
|
35,120
|
|
|
35,120
|
|
|
41,882
|
|
|
41,882
|
|
||||
Warrant liability
|
Level 3
|
|
3,547
|
|
|
3,547
|
|
|
6,281
|
|
|
6,281
|
|
||||
Accrued interest payable
|
Level 2
|
|
3,607
|
|
|
3,607
|
|
|
3,058
|
|
|
3,058
|
|
||||
Derivatives
|
Level 2
|
|
2,033
|
|
|
2,033
|
|
|
74
|
|
|
74
|
|
•
|
Organic loan originations totaled
$687.0 million
, representing a
46.2%
increase from the same period of
2013
.
|
•
|
We had
$1.9 billion
of loans outstanding that are associated with a “strategic” client relationship - a
37.0%
annualized growth for the
nine
months ended
September 30, 2014
.
|
•
|
Successfully exited
$98.8 million
, or
37.7%
annualized, of the non-strategic loan portfolio during the nine months ended
September 30, 2014
.
|
•
|
Non 310-30 loans
|
◦
|
Strong loss-share coverage on 48.2% of non-performing assets.
|
◦
|
Net charge-offs on average non 310-30 loans remained low at 0.07% annualized.
|
◦
|
Non 310-30 loans grew from 70.6% to 85.2% of the total loan portfolio, an increase of 14.6% from the same period of 2013.
|
•
|
ASC 310-30 loans
|
◦
|
Added a net
$29.1 million
to accretable yield for the acquired loans accounted for under ASC 310-30.
|
◦
|
The
$14.8 million
covered commercial and industrial loan pool that had previously been on non-accrual status at December 31, 2013 was returned to accrual status during the first quarter of 2014 due to improved performance and predictability of cash flows within that pool.
|
•
|
Average transaction deposits and client repurchase agreements increased
$26.9 million
for the
nine
months ended
September 30, 2014
compared to the
nine
months ended
September 30, 2013
, or
1.1%
.
|
•
|
Transaction account balances improved to 63.2% of total deposits as of
September 30, 2014
from 61.0% at December 31, 2013.
|
•
|
As of
September 30, 2014
, total deposits and client repurchase agreements made up
97.6%
of our total liabilities.
|
•
|
We did not have any brokered deposits as of
September 30, 2014
.
|
•
|
The average annual yield on our loan portfolio was
6.67%
for the
nine
months ended
September 30, 2014
compared to
8.11%
for the
nine
months ended
September 30, 2013
, driven by the increasing originated loan balances coupled with declining balances of higher-yielding purchased loans.
|
•
|
Cost of deposits decreased five basis points to
0.37%
for the
nine
months ended
September 30, 2014
from
0.42%
for the
nine
months ended
September 30, 2013
due to a $219.4 million decrease in average interest bearing deposits and a
$36.9 million
increase
in average demand deposits.
|
•
|
Net interest margin widened to
3.84%
on a fully taxable equivalent basis during the
nine
months ended
September 30, 2014
, from 3.82% during the nine months ended September 30, 2013, driven by strong yields on the high-yielding 310-30 loans coupled with a five basis point decrease in the cost of average interest bearing liabilities.
|
•
|
Operating costs before problem loan/OREO workout expenses, the benefit of the change in the warrant liability and banking center closure expenses declined
$11.2 million
, or
9.1%
, during the
nine
months ended
September 30, 2014
, compared to the same period in
2013
. The decrease in operating costs was attributable to implemented efficiency initiatives and banking center closures.
|
•
|
Problem loan/OREO workout expenses totaled
$6.7 million
for the
nine
months ended
September 30, 2014
, decreasing
$5.4 million
, or 44.6%, from the same period in
2013
.
|
•
|
As of
September 30, 2014
, our consolidated tier 1 leverage ratio was
15.2%
and our consolidated tier 1 risk-based capital ratio was
29.4%
.
|
•
|
The after-tax accretable yield on ASC 310-30 loans plus the after-tax yield on the FDIC indemnification asset, net, in excess of 4.5%, an approximate yield on new loan originations, and discounted at 5%, adds $0.85 per share to our tangible book value per share as of
September 30, 2014
.
|
•
|
Tangible common book value per share was
$18.49
before consideration of the excess accretable yield value of $0.85 per share.
|
•
|
During the
nine
months ended
September 30, 2014
, we repurchased 5.1 million shares, or 11.32% of outstanding shares, at a weighted average price of $19.66 per share. Since early 2013 and through November 6, 2014, we have repurchased 12.6 million shares, or 24.07% of outstanding shares, at an attractive weighted average price of $19.73 per share.
|
•
|
During the
nine
months ended
September 30, 2014
, we repurchased 5.1 million of our shares at a weighted average price per share of $19.66. On October 21, 2014, we announced that the Board of Directors approved a new authorization to repurchase another $50.0 million of the Company’s common stock.
|
|
As of and for the three months ended
|
|
As of and for the nine months ended
|
|||||||||||
|
September 30, 2014
|
|
December 31, 2013
|
|
September 30, 2013
|
|
September 30, 2014
|
|
September 30, 2013
|
|||||
Key Ratios
(1)
|
|
|
|
|
|
|
|
|
|
|||||
Return on average assets
|
0.27
|
%
|
|
0.08
|
%
|
|
0.07
|
%
|
|
0.19
|
%
|
|
0.15
|
%
|
Return on average tangible assets
(2)
|
0.34
|
%
|
|
0.15
|
%
|
|
0.14
|
%
|
|
0.26
|
%
|
|
0.22
|
%
|
Return on average equity
|
1.56
|
%
|
|
0.42
|
%
|
|
0.36
|
%
|
|
1.05
|
%
|
|
0.74
|
%
|
Return on average tangible common equity
(2)
|
2.12
|
%
|
|
0.82
|
%
|
|
0.73
|
%
|
|
1.55
|
%
|
|
1.13
|
%
|
Return on risk weighted assets
|
0.53
|
%
|
|
0.19
|
%
|
|
0.19
|
%
|
|
0.37
|
%
|
|
0.40
|
%
|
Interest-earning assets to interest-bearing liabilities (end of period)
(3)
|
137.71
|
%
|
|
137.05
|
%
|
|
139.44
|
%
|
|
137.71
|
%
|
|
139.44
|
%
|
Loans to deposits ratio (end of period)
|
57.32
|
%
|
|
48.46
|
%
|
|
44.24
|
%
|
|
57.32
|
%
|
|
44.24
|
%
|
Average equity to average assets
|
17.50
|
%
|
|
19.02
|
%
|
|
19.97
|
%
|
|
17.99
|
%
|
|
20.41
|
%
|
Non-interest bearing deposits to total deposits (end of period)
|
19.07
|
%
|
|
17.59
|
%
|
|
17.45
|
%
|
|
19.07
|
%
|
|
17.45
|
%
|
Net interest margin
|
3.73
|
%
|
|
3.78
|
%
|
|
3.80
|
%
|
|
3.82
|
%
|
|
3.82
|
%
|
Net interest margin (fully taxable equivalent)
(2)(4)
|
3.75
|
%
|
|
3.78
|
%
|
|
3.80
|
%
|
|
3.84
|
%
|
|
3.82
|
%
|
Interest rate spread
(5)
|
3.63
|
%
|
|
3.66
|
%
|
|
3.68
|
%
|
|
3.72
|
%
|
|
3.69
|
%
|
Yield on earning assets
|
4.05
|
%
|
|
4.11
|
%
|
|
4.14
|
%
|
|
4.14
|
%
|
|
4.18
|
%
|
Yield on earning assets (fully taxable
equivalent)
(2)(3)
|
4.07
|
%
|
|
4.11
|
%
|
|
4.14
|
%
|
|
4.16
|
%
|
|
4.18
|
%
|
Cost of interest bearing liabilities
(3)
|
0.44
|
%
|
|
0.45
|
%
|
|
0.46
|
%
|
|
0.44
|
%
|
|
0.49
|
%
|
Cost of deposits
|
0.37
|
%
|
|
0.38
|
%
|
|
0.40
|
%
|
|
0.37
|
%
|
|
0.42
|
%
|
Non-interest expense to average assets
|
3.10
|
%
|
|
3.50
|
%
|
|
3.56
|
%
|
|
3.20
|
%
|
|
3.57
|
%
|
Efficiency ratio
(2)(6)
|
84.22
|
%
|
|
93.36
|
%
|
|
92.68
|
%
|
|
86.09
|
%
|
|
88.60
|
%
|
Efficiency ratio (fully taxable equivalent)
(2)
|
83.78
|
%
|
|
93.36
|
%
|
|
92.68
|
%
|
|
85.69
|
%
|
|
88.60
|
%
|
Dividend payout ratio
|
62.50
|
%
|
|
250.00
|
%
|
|
250.00
|
%
|
|
93.75
|
%
|
|
136.36
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||
Asset Quality Data
(7)(8)(9)
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing loans to total loans
|
0.87
|
%
|
|
1.31
|
%
|
|
1.77
|
%
|
|
0.87
|
%
|
|
1.77
|
%
|
Covered non-performing loans to total non-performing loans
|
8.13
|
%
|
|
68.89
|
%
|
|
62.43
|
%
|
|
8.13
|
%
|
|
62.43
|
%
|
Non-performing assets to total assets
|
1.37
|
%
|
|
1.94
|
%
|
|
1.99
|
%
|
|
1.37
|
%
|
|
1.99
|
%
|
Covered non-performing assets to total non-performing assets
|
48.23
|
%
|
|
58.50
|
%
|
|
62.04
|
%
|
|
48.23
|
%
|
|
62.04
|
%
|
Allowance for loan losses to total loans
|
0.76
|
%
|
|
0.68
|
%
|
|
0.66
|
%
|
|
0.76
|
%
|
|
0.66
|
%
|
Allowance for loan losses to total non-covered loans
|
0.85
|
%
|
|
0.81
|
%
|
|
0.83
|
%
|
|
0.85
|
%
|
|
0.83
|
%
|
Allowance for loan losses to non-performing loans
|
87.62
|
%
|
|
51.43
|
%
|
|
37.01
|
%
|
|
87.62
|
%
|
|
37.01
|
%
|
Net charge-offs (recoveries) to average loans
|
0.09
|
%
|
|
(0.07
|
%)
|
|
0.20
|
%
|
|
0.06
|
%
|
|
0.58
|
%
|
(1)
|
Ratios are annualized.
|
(2)
|
Ratio represents non-GAAP financial measure. See non-GAAP reconciliation on page 48.
|
(3)
|
Interest earning assets include assets that earn interest/accretion or dividends, except for the FDIC indemnification asset, which is not part of interest earning assets. Any market value adjustments on investment securities are excluded from interest-earning assets. Interest bearing liabilities include liabilities that must be paid interest.
|
(4)
|
Net interest margin represents net interest income, including accretion income on interest earning assets, as a percentage of average interest earning assets.
|
(5)
|
Interest rate spread represents the difference between the weighted average yield on interest earning assets and the weighted average cost of interest bearing liabilities.
|
(6)
|
The efficiency ratio represents non-interest expense, less intangible asset amortization, as a percentage of net interest income plus non-interest income on a fully taxable basis.
|
(7)
|
Non-performing loans were redefined during the third quarter of 2014 to only include non-accrual loans and restructured loans on non-accrual, and exclude any loans accounted for under ASC 310-30 in which the pool is still performing. All previous periods have been restated.
|
(8)
|
Non-performing assets include non-performing loans, other real estate owned and other repossessed assets.
|
(9)
|
Total loans are net of unearned discounts and fees.
|
|
As of and for the three months ended
|
||||||||||
|
September 30, 2014
|
|
December 31, 2013
|
|
September 30, 2013
|
||||||
Total shareholders’ equity
|
$
|
808,962
|
|
|
$
|
897,792
|
|
|
$
|
1,031,250
|
|
Less: goodwill and intangible assets, net
|
(77,850
|
)
|
|
(81,859
|
)
|
|
(83,196
|
)
|
|||
Add: deferred tax liability related to goodwill
|
5,834
|
|
|
4,671
|
|
|
4,284
|
|
|||
Tangible common equity (non-GAAP)
|
$
|
736,946
|
|
|
$
|
820,604
|
|
|
$
|
952,338
|
|
|
|
|
|
|
|
||||||
Total assets
|
$
|
4,812,807
|
|
|
$
|
4,914,115
|
|
|
$
|
5,161,969
|
|
Less: goodwill and intangible assets, net
|
(77,850
|
)
|
|
(81,859
|
)
|
|
(83,196
|
)
|
|||
Add: deferred tax liability related to goodwill
|
5,834
|
|
|
4,671
|
|
|
4,284
|
|
|||
Tangible assets (non-GAAP)
|
$
|
4,740,791
|
|
|
$
|
4,836,927
|
|
|
$
|
5,083,057
|
|
|
|
|
|
|
|
||||||
Tangible common equity to tangible assets calculations:
|
|
|
|
|
|
||||||
Total shareholders’ equity to total assets
|
16.81
|
%
|
|
18.27
|
%
|
|
19.98
|
%
|
|||
Less: impact of goodwill and intangible assets, net
|
(1.27
|
)%
|
|
(1.30
|
)%
|
|
(1.24
|
)%
|
|||
Tangible common equity to tangible assets (non-GAAP)
|
15.54
|
%
|
|
16.97
|
%
|
|
18.74
|
%
|
|||
|
|
|
|
|
|
||||||
Common book value per share calculations:
|
|
|
|
|
|
||||||
Total shareholders' equity
|
$
|
808,962
|
|
|
$
|
897,792
|
|
|
$
|
1,031,250
|
|
Divided by: ending shares outstanding
|
39,862,824
|
|
|
44,918,336
|
|
|
51,213,044
|
|
|||
Common book value per share
|
$
|
20.29
|
|
|
$
|
19.99
|
|
|
$
|
20.14
|
|
|
|
|
|
|
|
||||||
Tangible common book value per share calculations:
|
|
|
|
|
|
||||||
Tangible common equity (non-GAAP)
|
$
|
736,946
|
|
|
$
|
820,604
|
|
|
$
|
952,338
|
|
Divided by: ending shares outstanding
|
39,862,824
|
|
|
44,918,336
|
|
|
51,213,044
|
|
|||
Tangible common book value per share (non-GAAP)
|
$
|
18.49
|
|
|
$
|
18.27
|
|
|
$
|
18.60
|
|
|
|
|
|
|
|
||||||
Tangible common book value per share, excluding accumulated other comprehensive income (loss) calculations:
|
|
|
|
|
|
||||||
Tangible common equity (non-GAAP)
|
$
|
736,946
|
|
|
$
|
820,604
|
|
|
$
|
952,338
|
|
Less: accumulated other comprehensive income (loss), net of tax
|
(1,896
|
)
|
|
6,756
|
|
|
142
|
|
|||
Tangible common book value, excluding accumulated other comprehensive income (loss), net of tax
|
735,050
|
|
|
827,360
|
|
|
952,480
|
|
|||
Divided by: ending shares outstanding
|
39,862,824
|
|
|
44,918,336
|
|
|
51,213,044
|
|
|||
Tangible common book value per share, excluding accumulated other comprehensive income (loss), net of tax (non-GAAP)
|
$
|
18.44
|
|
|
$
|
18.42
|
|
|
$
|
18.60
|
|
|
As of and for the
three months ended |
|
As of and for the
nine months ended |
||||||||||||||||
|
September 30, 2014
|
|
December 31, 2013
|
|
September 30, 2013
|
|
September 30, 2014
|
|
September 30, 2013
|
||||||||||
Net interest income
|
$
|
41,895
|
|
|
$
|
43,590
|
|
|
$
|
45,515
|
|
|
$
|
127,665
|
|
|
$
|
135,371
|
|
Add: impact of taxable equivalent adjustment
|
231
|
|
|
—
|
|
|
—
|
|
|
610
|
|
|
—
|
|
|||||
Net interest income, fully taxable equivalent (non-GAAP)
|
$
|
42,126
|
|
|
$
|
43,590
|
|
|
$
|
45,515
|
|
|
$
|
128,275
|
|
|
$
|
135,371
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest income
|
$
|
1,614
|
|
|
$
|
2,364
|
|
|
$
|
3,338
|
|
|
$
|
3,421
|
|
|
$
|
17,813
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest expense
|
$
|
37,981
|
|
|
$
|
44,238
|
|
|
$
|
46,613
|
|
|
$
|
116,854
|
|
|
$
|
139,727
|
|
Less: core deposit intangible asset amortization
|
(1,336
|
)
|
|
(1,337
|
)
|
|
(1,336
|
)
|
|
(4,008
|
)
|
|
(4,009
|
)
|
|||||
Non-interest expense, adjusted for core deposit intangible asset amortization
|
$
|
36,645
|
|
|
$
|
42,901
|
|
|
$
|
45,277
|
|
|
$
|
112,846
|
|
|
$
|
135,718
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Efficiency ratio
|
84.22
|
%
|
|
93.36
|
%
|
|
92.68
|
%
|
|
86.09
|
%
|
|
88.60
|
%
|
|||||
Efficiency ratio, fully taxable equivalent (non-GAAP)
|
83.78
|
%
|
|
93.36
|
%
|
|
92.68
|
%
|
|
85.69
|
%
|
|
88.60
|
%
|
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||
|
Amortized
cost
|
|
Fair
value
|
|
Percent of
portfolio
|
|
Weighted
average
yield
|
|
Amortized
cost
|
|
Fair
value
|
|
Percent of
portfolio
|
|
Weighted
average
yield
|
||||||||||||
Asset-backed securities
|
$
|
356
|
|
|
$
|
356
|
|
|
0.02
|
%
|
|
0.63
|
%
|
|
$
|
4,534
|
|
|
$
|
4,537
|
|
|
0.26
|
%
|
|
0.61
|
%
|
Mortgage-backed securities (“MBS”):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
419,852
|
|
|
427,127
|
|
|
27.49
|
%
|
|
2.23
|
%
|
|
490,321
|
|
|
494,990
|
|
|
27.72
|
%
|
|
2.22
|
%
|
||||
Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
1,145,834
|
|
|
1,125,739
|
|
|
72.46
|
%
|
|
1.80
|
%
|
|
1,320,998
|
|
|
1,285,582
|
|
|
72.00
|
%
|
|
1.83
|
%
|
||||
Other securities
|
419
|
|
|
419
|
|
|
0.03
|
%
|
|
0.00
|
%
|
|
419
|
|
|
419
|
|
|
0.02
|
%
|
|
0.00
|
%
|
||||
Total investment securities available-for-sale
|
$
|
1,566,461
|
|
|
$
|
1,553,641
|
|
|
100.00
|
%
|
|
1.92
|
%
|
|
$
|
1,816,272
|
|
|
$
|
1,785,528
|
|
|
100.00
|
%
|
|
1.94
|
%
|
|
September 30, 2014
|
||||||||||||
|
Amortized
cost |
|
Fair
value |
|
Percent of
portfolio |
|
Weighted
average yield |
||||||
Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
$
|
444,104
|
|
|
$
|
447,424
|
|
|
79.67
|
%
|
|
3.26
|
%
|
Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
113,360
|
|
|
110,169
|
|
|
20.33
|
%
|
|
1.69
|
%
|
||
Total investment securities held-to-maturity
|
$
|
557,464
|
|
|
$
|
557,593
|
|
|
100.00
|
%
|
|
2.94
|
%
|
|
December 31, 2013
|
||||||||||||
|
Amortized
cost |
|
Fair
value |
|
Percent of
portfolio |
|
Weighted
average yield |
||||||
Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
$
|
513,090
|
|
|
$
|
511,489
|
|
|
79.93
|
%
|
|
3.31
|
%
|
Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises
|
128,817
|
|
|
124,916
|
|
|
20.07
|
%
|
|
1.70
|
%
|
||
Total investment securities held-to-maturity
|
$
|
641,907
|
|
|
$
|
636,405
|
|
|
100.00
|
%
|
|
2.99
|
%
|
To analyze:
|
|
We look at:
|
Loan growth and production efforts
|
|
Strategic balances and loan originations
|
Workout efforts of our purchased non-strategic portfolio
|
|
Non-strategic balances and accretable yield
|
Risk mitigants of our non-performing loans
|
|
FDIC loss-share coverage and fair value marks
|
Interest income
|
|
ASC 310-30 and non 310-30 yields and accretable yield
|
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Strategic
|
|
Non-strategic
|
|
Total
|
|
Strategic
|
|
Non-strategic
|
|
Total
|
||||||||||||
Commercial
|
$
|
707,999
|
|
|
$
|
47,173
|
|
|
$
|
755,172
|
|
|
$
|
411,589
|
|
|
$
|
71,906
|
|
|
$
|
483,495
|
|
Agriculture
|
160,851
|
|
|
2,021
|
|
|
162,872
|
|
|
154,811
|
|
|
5,141
|
|
|
159,952
|
|
||||||
Owner-occupied commercial real estate
|
144,223
|
|
|
19,988
|
|
|
164,211
|
|
|
123,386
|
|
|
30,306
|
|
|
153,692
|
|
||||||
Commercial real estate
|
273,949
|
|
|
156,156
|
|
|
430,105
|
|
|
210,265
|
|
|
210,263
|
|
|
420,528
|
|
||||||
Residential real estate
|
599,523
|
|
|
23,876
|
|
|
623,399
|
|
|
570,455
|
|
|
29,469
|
|
|
599,924
|
|
||||||
Consumer
|
33,640
|
|
|
1,973
|
|
|
35,613
|
|
|
33,599
|
|
|
2,904
|
|
|
36,503
|
|
||||||
Total
|
$
|
1,920,185
|
|
|
$
|
251,187
|
|
|
$
|
2,171,372
|
|
|
$
|
1,504,105
|
|
|
$
|
349,989
|
|
|
$
|
1,854,094
|
|
|
Third quarter
|
|
Second quarter
|
|
First quarter
|
|
Fourth quarter
|
|
Third quarter
|
||||||||||
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
||||||||||
Commercial
|
$
|
110,083
|
|
|
$
|
133,671
|
|
|
$
|
130,096
|
|
|
$
|
159,931
|
|
|
$
|
80,833
|
|
Agriculture
|
7,014
|
|
|
10,288
|
|
|
4,959
|
|
|
23,610
|
|
|
5,689
|
|
|||||
Owner-occupied commercial real estate
|
10,293
|
|
|
28,803
|
|
|
21,002
|
|
|
6,380
|
|
|
21,226
|
|
|||||
Commercial real estate
|
33,817
|
|
|
45,903
|
|
|
29,633
|
|
|
14,579
|
|
|
28,855
|
|
|||||
Residential real estate
|
35,404
|
|
|
44,539
|
|
|
27,812
|
|
|
36,113
|
|
|
51,749
|
|
|||||
Consumer
|
6,678
|
|
|
3,556
|
|
|
3,461
|
|
|
3,594
|
|
|
3,326
|
|
|||||
Total
|
$
|
203,289
|
|
|
$
|
266,760
|
|
|
$
|
216,963
|
|
|
$
|
244,207
|
|
|
$
|
191,678
|
|
|
September 30, 2014
|
||||||||||||||
|
Due within
1 Year
|
|
Due after 1 but
within 5 Years
|
|
Due after
5 Years
|
|
Total
|
||||||||
Commercial
|
$
|
133,459
|
|
|
$
|
461,330
|
|
|
$
|
160,383
|
|
|
$
|
755,172
|
|
Agriculture
|
41,040
|
|
|
69,751
|
|
|
52,081
|
|
|
162,872
|
|
||||
Owner-occupied commercial real estate
|
25,275
|
|
|
68,045
|
|
|
70,891
|
|
|
164,211
|
|
||||
Commercial real estate
|
129,962
|
|
|
211,741
|
|
|
88,402
|
|
|
430,105
|
|
||||
Residential real estate
|
26,486
|
|
|
39,201
|
|
|
557,712
|
|
|
623,399
|
|
||||
Consumer
|
12,785
|
|
|
16,325
|
|
|
6,503
|
|
|
35,613
|
|
||||
Total loans
|
$
|
369,007
|
|
|
$
|
866,393
|
|
|
$
|
935,972
|
|
|
$
|
2,171,372
|
|
Covered
|
$
|
140,567
|
|
|
$
|
40,264
|
|
|
$
|
38,637
|
|
|
$
|
219,468
|
|
Non-covered
|
228,440
|
|
|
826,129
|
|
|
897,335
|
|
|
1,951,904
|
|
||||
Total loans
|
$
|
369,007
|
|
|
$
|
866,393
|
|
|
$
|
935,972
|
|
|
$
|
2,171,372
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2013
|
||||||||||||||
|
Due within
1 Year |
|
Due after 1 but
within 5 Years |
|
Due after
5 Years |
|
Total
|
||||||||
Commercial
|
$
|
128,368
|
|
|
$
|
297,120
|
|
|
$
|
58,007
|
|
|
$
|
483,495
|
|
Agriculture
|
32,258
|
|
|
80,681
|
|
|
47,013
|
|
|
159,952
|
|
||||
Owner-occupied commercial real estate
|
20,382
|
|
|
72,839
|
|
|
60,472
|
|
|
153,693
|
|
||||
Commercial real estate
|
135,673
|
|
|
205,046
|
|
|
79,808
|
|
|
420,527
|
|
||||
Residential real estate
|
36,085
|
|
|
52,079
|
|
|
511,760
|
|
|
599,924
|
|
||||
Consumer
|
14,284
|
|
|
15,281
|
|
|
6,938
|
|
|
36,503
|
|
||||
Total loans
|
$
|
367,050
|
|
|
$
|
723,046
|
|
|
$
|
763,998
|
|
|
$
|
1,854,094
|
|
Covered
|
$
|
175,452
|
|
|
$
|
96,216
|
|
|
$
|
37,729
|
|
|
$
|
309,397
|
|
Non-covered
|
191,598
|
|
|
626,830
|
|
|
726,269
|
|
|
1,544,697
|
|
||||
Total loans
|
$
|
367,050
|
|
|
$
|
723,046
|
|
|
$
|
763,998
|
|
|
$
|
1,854,094
|
|
|
September 30, 2014
|
|||||||||||||||||||
|
Fixed
|
|
Variable
|
|
Total
|
|||||||||||||||
|
Balance
|
|
Weighted average rate
|
|
Balance
|
|
Weighted average rate
|
|
Balance
|
|
Weighted average rate
|
|||||||||
Commercial
|
$
|
208,340
|
|
|
3.84
|
%
|
|
$
|
400,188
|
|
|
3.57
|
%
|
|
$
|
608,528
|
|
|
3.66
|
%
|
Agriculture
|
68,337
|
|
|
4.94
|
%
|
|
35,811
|
|
|
4.64
|
%
|
|
104,148
|
|
|
4.84
|
%
|
|||
Owner-occupied commercial real estate
|
70,540
|
|
|
4.34
|
%
|
|
38,242
|
|
|
4.26
|
%
|
|
108,782
|
|
|
4.31
|
%
|
|||
Commercial real estate
|
125,276
|
|
|
4.54
|
%
|
|
109,238
|
|
|
3.48
|
%
|
|
234,514
|
|
|
4.05
|
%
|
|||
Residential real estate
|
333,704
|
|
|
3.49
|
%
|
|
230,271
|
|
|
3.59
|
%
|
|
563,975
|
|
|
3.53
|
%
|
|||
Consumer
|
13,310
|
|
|
5.37
|
%
|
|
4,950
|
|
|
3.99
|
%
|
|
18,260
|
|
|
4.99
|
%
|
|||
Total loans with > 1 year maturity
|
$
|
819,507
|
|
|
3.97
|
%
|
|
$
|
818,700
|
|
|
3.64
|
%
|
|
$
|
1,638,207
|
|
|
3.80
|
%
|
Covered
|
$
|
810
|
|
|
4.15
|
%
|
|
$
|
13,712
|
|
|
2.89
|
%
|
|
$
|
14,522
|
|
|
2.96
|
%
|
Non-covered
|
818,697
|
|
|
3.96
|
%
|
|
804,988
|
|
|
3.66
|
%
|
|
1,623,685
|
|
|
3.81
|
%
|
|||
Total loans with > 1 year maturity
|
$
|
819,507
|
|
|
3.97
|
%
|
|
$
|
818,700
|
|
|
3.64
|
%
|
|
$
|
1,638,207
|
|
|
3.80
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
December 31, 2013
|
|||||||||||||||||||
|
Fixed
|
|
Variable
|
|
Total
|
|||||||||||||||
|
Balance
|
|
Weighted average rate
|
|
Balance
|
|
Weighted average rate
|
|
Balance
|
|
Weighted average rate
|
|||||||||
Commercial
|
$
|
76,521
|
|
|
4.36
|
%
|
|
$
|
248,795
|
|
|
3.79
|
%
|
|
$
|
325,316
|
|
|
3.93
|
%
|
Agriculture
|
68,701
|
|
|
5.02
|
%
|
|
35,898
|
|
|
4.47
|
%
|
|
104,599
|
|
|
4.83
|
%
|
|||
Owner-occupied commercial real estate
|
59,939
|
|
|
4.61
|
%
|
|
31,492
|
|
|
4.19
|
%
|
|
91,431
|
|
|
4.46
|
%
|
|||
Commercial real estate
|
92,418
|
|
|
4.62
|
%
|
|
83,678
|
|
|
3.81
|
%
|
|
176,096
|
|
|
4.29
|
%
|
|||
Residential real estate
|
316,083
|
|
|
3.49
|
%
|
|
208,361
|
|
|
3.64
|
%
|
|
524,444
|
|
|
3.55
|
%
|
|||
Consumer
|
10,683
|
|
|
6.24
|
%
|
|
4,617
|
|
|
4.20
|
%
|
|
15,300
|
|
|
5.63
|
%
|
|||
Total loans with > 1 year maturity
|
$
|
624,345
|
|
|
4.11
|
%
|
|
$
|
612,841
|
|
|
3.80
|
%
|
|
$
|
1,237,186
|
|
|
3.96
|
%
|
Covered
|
$
|
11,044
|
|
|
3.74
|
%
|
|
$
|
7,057
|
|
|
5.97
|
%
|
|
$
|
18,101
|
|
|
4.54
|
%
|
Non-covered
|
613,301
|
|
|
4.11
|
%
|
|
605,784
|
|
|
3.78
|
%
|
|
1,219,085
|
|
|
3.95
|
%
|
|||
Total loans with > 1 year maturity
|
$
|
624,345
|
|
|
4.11
|
%
|
|
$
|
612,841
|
|
|
3.80
|
%
|
|
$
|
1,237,186
|
|
|
3.96
|
%
|
|
September 30, 2014
|
|
December 31, 2013
|
||||
Remaining accretable yield on loans accounted for under ASC 310-30
|
$
|
113,108
|
|
|
$
|
130,624
|
|
Remaining accretable fair value mark on loans not accounted for under ASC 310-30
|
8,353
|
|
|
10,755
|
|
||
Total remaining accretable yield and fair value mark
|
$
|
121,461
|
|
|
$
|
141,379
|
|
Commercial
|
|
Single family
|
||||||||
Tranche
|
|
Loss Threshold
|
|
Loss-Coverage
Percentage
|
|
Tranche
|
|
Loss Threshold
|
|
Loss-Coverage
Percentage
|
1
|
|
Up to $295,592
|
|
60%
|
|
1
|
|
Up to $4,618
|
|
60%
|
2
|
|
$295,593-405,293
|
|
0%
|
|
2
|
|
$4,618-8,191
|
|
30%
|
3
|
|
>$405,293
|
|
80%
|
|
3
|
|
>$8,191
|
|
80%
|
Tranche
|
|
Loss Threshold
|
|
Loss-Coverage Percentage
|
1
|
|
Up to $204,194
|
|
80%
|
2
|
|
$204,195-308,020
|
|
30%
|
3
|
|
>$308,020
|
|
80%
|
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Non-covered
|
|
Covered
|
|
Total
|
|
Non-covered
|
|
Covered
|
|
Total
|
||||||||||||
Non-accrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
$
|
11,627
|
|
|
$
|
147
|
|
|
$
|
11,774
|
|
|
$
|
474
|
|
|
$
|
15,098
|
|
|
$
|
15,572
|
|
Agriculture
|
134
|
|
|
—
|
|
|
134
|
|
|
153
|
|
|
—
|
|
|
153
|
|
||||||
Owner-occupied commercial real estate
|
374
|
|
|
—
|
|
|
374
|
|
|
467
|
|
|
—
|
|
|
467
|
|
||||||
Commercial real estate
|
203
|
|
|
—
|
|
|
203
|
|
|
1,131
|
|
|
—
|
|
|
1,131
|
|
||||||
Residential real estate
|
2,754
|
|
|
—
|
|
|
2,754
|
|
|
3,437
|
|
|
—
|
|
|
3,437
|
|
||||||
Consumer
|
32
|
|
|
—
|
|
|
32
|
|
|
10
|
|
|
—
|
|
|
10
|
|
||||||
Total non-accrual loans
|
15,124
|
|
|
147
|
|
|
15,271
|
|
|
5,672
|
|
|
15,098
|
|
|
20,770
|
|
||||||
Restructured loans on non-accrual
|
2,272
|
|
|
1,393
|
|
|
3,665
|
|
|
1,901
|
|
|
1,673
|
|
|
3,574
|
|
||||||
Total non-performing loans
|
17,396
|
|
|
1,540
|
|
|
18,936
|
|
|
7,573
|
|
|
16,771
|
|
|
24,344
|
|
||||||
OREO
|
15,753
|
|
|
30,132
|
|
|
45,885
|
|
|
31,300
|
|
|
38,825
|
|
|
70,125
|
|
||||||
Other repossessed assets
|
869
|
|
|
20
|
|
|
889
|
|
|
784
|
|
|
302
|
|
|
1,086
|
|
||||||
Total non-performing assets
|
$
|
34,018
|
|
|
$
|
31,692
|
|
|
$
|
65,710
|
|
|
$
|
39,657
|
|
|
$
|
55,898
|
|
|
$
|
95,555
|
|
Loans 90 days or more past due and still accruing interest
|
$
|
225
|
|
|
$
|
—
|
|
|
$
|
225
|
|
|
$
|
14
|
|
|
$
|
115
|
|
|
$
|
129
|
|
Accruing restructured loans
(1)
|
$
|
15,758
|
|
|
$
|
9,277
|
|
|
$
|
25,035
|
|
|
$
|
5,891
|
|
|
$
|
5,714
|
|
|
$
|
11,605
|
|
Allowance for loan losses
|
|
|
|
|
$
|
16,591
|
|
|
|
|
|
|
$
|
12,521
|
|
||||||||
Total non-performing loans to non-covered, covered and total loans, respectively
|
0.89
|
%
|
|
0.70
|
%
|
|
0.87
|
%
|
|
0.49
|
%
|
|
5.42
|
%
|
|
1.31
|
%
|
||||||
Loans 90 days or more past due and still accruing interest to non-covered, covered and total loans, respectively
|
0.01
|
%
|
|
0.00
|
%
|
|
0.01
|
%
|
|
0.00
|
%
|
|
0.04
|
%
|
|
0.01
|
%
|
||||||
Total non-performing assets to total assets
|
|
|
|
|
1.37
|
%
|
|
|
|
|
|
1.94
|
%
|
||||||||||
Allowance for loan losses to non-performing loans
|
|
|
|
|
87.62
|
%
|
|
|
|
|
|
51.43
|
%
|
(1)
|
Includes restructured loans less than 90 days past due and still accruing.
|
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
ASC 310-30
loans
|
|
Non ASC
310-30 loans
|
|
Total
loans
|
|
ASC 310-30
loans
|
|
Non ASC
310-30 loans
|
|
Total
loans
|
||||||||||||
Loans 30-89 days past due and still accruing interest
|
$
|
30,761
|
|
|
$
|
5,452
|
|
|
$
|
36,213
|
|
|
$
|
11,245
|
|
|
$
|
2,854
|
|
|
$
|
14,099
|
|
Loans 90 days past due and still accruing interest
|
42,930
|
|
|
225
|
|
|
43,155
|
|
|
55,864
|
|
|
129
|
|
|
55,993
|
|
||||||
Non-accrual loans
|
—
|
|
|
15,272
|
|
|
15,272
|
|
|
14,827
|
|
|
5,942
|
|
|
20,769
|
|
||||||
Restructured loans on non-accrual
|
—
|
|
|
3,664
|
|
|
3,664
|
|
|
—
|
|
|
3,575
|
|
|
3,575
|
|
||||||
Total past due and non-accrual loans
|
$
|
73,691
|
|
|
$
|
24,613
|
|
|
$
|
98,304
|
|
|
$
|
81,936
|
|
|
$
|
12,500
|
|
|
$
|
94,436
|
|
Total past due covered loans
|
$
|
62,072
|
|
|
$
|
1,611
|
|
|
$
|
63,683
|
|
|
$
|
63,603
|
|
|
$
|
2,284
|
|
|
$
|
65,887
|
|
Total 90 days past due and still accruing interest and non-accrual loans to 310-30 loans, non 310-30 loans and total loans, respectively
|
13.39
|
%
|
|
1.04
|
%
|
|
2.86
|
%
|
|
15.68
|
%
|
|
0.69
|
%
|
|
4.33
|
%
|
||||||
Total non-accrual loans to 310-30 loans, non 310-30 loans and total loans, respectively
|
0.00
|
%
|
|
1.02
|
%
|
|
0.87
|
%
|
|
3.29
|
%
|
|
0.68
|
%
|
|
1.31
|
%
|
||||||
% of total past due and non-accrual loans that carry fair value adjustments
|
100.00
|
%
|
|
27.68
|
%
|
|
81.89
|
%
|
|
100.00
|
%
|
|
52.23
|
%
|
|
93.68
|
%
|
||||||
% of total past due and non-accrual loans that are covered by FDIC loss sharing agreements
|
84.23
|
%
|
|
6.55
|
%
|
|
64.78
|
%
|
|
77.63
|
%
|
|
18.27
|
%
|
|
69.77
|
%
|
•
|
the borrower's resources, ability, and willingness to repay in accordance with the terms of the loan agreement;
|
•
|
the likelihood of receiving financial support from any guarantors;
|
•
|
the adequacy and present value of future cash flows, less disposal costs, of any collateral;
|
•
|
the impact current economic conditions may have on the borrower's financial condition and liquidity or the value of the collateral.
|
Commercial
|
|
Commercial real estate
|
|
Agriculture
|
|
Residential real estate
|
|
Consumer
|
Total commercial
|
|
Construction
|
|
Total agriculture
|
|
Senior lien
|
|
Total consumer
|
|
|
Acquisition and development
|
|
|
|
Junior lien
|
|
|
|
|
Multi-family
|
|
|
|
|
|
|
|
|
Owner-occupied
|
|
|
|
|
|
|
|
|
Non-owner occupied
|
|
|
|
|
|
|
•
|
economic/external conditions;
|
•
|
loan administration, loan structure and procedures;
|
•
|
risk tolerance/experience;
|
•
|
loan growth;
|
•
|
trends;
|
•
|
concentrations; and
|
•
|
other.
|
|
For the three months ended
|
||||||||||||||||||||||
|
September 30, 2014
|
|
September 30, 2013
|
||||||||||||||||||||
|
ASC 310-30 Loans
|
|
Non 310-30 Loans
|
|
Total
|
|
ASC 310-30 Loans
|
|
Non 310-30 Loans
|
|
Total
|
||||||||||||
Beginning allowance for loan losses
|
$
|
1,098
|
|
|
$
|
14,474
|
|
|
$
|
15,572
|
|
|
$
|
2,195
|
|
|
$
|
9,652
|
|
|
$
|
11,847
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
—
|
|
|
(86
|
)
|
|
(86
|
)
|
|
—
|
|
|
(401
|
)
|
|
(401
|
)
|
||||||
Agriculture
|
—
|
|
|
—
|
|
|
—
|
|
|
(221
|
)
|
|
—
|
|
|
(221
|
)
|
||||||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Residential real estate
|
—
|
|
|
(470
|
)
|
|
(470
|
)
|
|
(57
|
)
|
|
(117
|
)
|
|
(174
|
)
|
||||||
Consumer
|
—
|
|
|
(230
|
)
|
|
(230
|
)
|
|
—
|
|
|
(276
|
)
|
|
(276
|
)
|
||||||
Total charge-offs
|
—
|
|
|
(786
|
)
|
|
(786
|
)
|
|
(278
|
)
|
|
(794
|
)
|
|
(1,072
|
)
|
||||||
Recoveries
|
—
|
|
|
290
|
|
|
290
|
|
|
—
|
|
|
207
|
|
|
207
|
|
||||||
Net charge-offs
|
—
|
|
|
(496
|
)
|
|
(496
|
)
|
|
(278
|
)
|
|
(587
|
)
|
|
(865
|
)
|
||||||
Provision (recoupment) for loan loss
|
(191
|
)
|
|
1,706
|
|
|
1,515
|
|
|
(313
|
)
|
|
750
|
|
|
437
|
|
||||||
Ending allowance for loan losses
|
$
|
907
|
|
|
$
|
15,684
|
|
|
$
|
16,591
|
|
|
$
|
1,604
|
|
|
$
|
9,815
|
|
|
$
|
11,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Ratio of annualized net charge-offs to average total loans during the period, respectively
|
0.00
|
%
|
|
0.11
|
%
|
|
0.09
|
%
|
|
0.20
|
%
|
|
0.20
|
%
|
|
0.20
|
%
|
||||||
Average total loans outstanding during the period
|
$
|
341,405
|
|
|
$
|
1,763,279
|
|
|
$
|
2,104,684
|
|
|
$
|
554,750
|
|
|
$
|
1,143,223
|
|
|
$
|
1,697,973
|
|
|
For the nine months ended
|
||||||||||||||||||||||
|
September 30, 2014
|
|
September 30, 2013
|
||||||||||||||||||||
|
ASC 310-30 loans
|
|
Non 310-30 loans
|
|
Total
|
|
ASC 310-30 loans
|
|
Non 310-30 loans
|
|
Total
|
||||||||||||
Beginning allowance for loan losses
|
$
|
1,280
|
|
|
$
|
11,241
|
|
|
$
|
12,521
|
|
|
$
|
4,652
|
|
|
$
|
10,728
|
|
|
$
|
15,380
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
(2
|
)
|
|
(498
|
)
|
|
(500
|
)
|
|
(407
|
)
|
|
(1,654
|
)
|
|
(2,061
|
)
|
||||||
Agriculture
|
—
|
|
|
—
|
|
|
—
|
|
|
(221
|
)
|
|
—
|
|
|
(221
|
)
|
||||||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,796
|
)
|
|
(943
|
)
|
|
(3,739
|
)
|
||||||
Residential real estate
|
—
|
|
|
(539
|
)
|
|
(539
|
)
|
|
(623
|
)
|
|
(741
|
)
|
|
(1,364
|
)
|
||||||
Consumer
|
(36
|
)
|
|
(585
|
)
|
|
(621
|
)
|
|
—
|
|
|
(717
|
)
|
|
(717
|
)
|
||||||
Total charge-offs
|
(38
|
)
|
|
(1,622
|
)
|
|
(1,660
|
)
|
|
(4,047
|
)
|
|
(4,055
|
)
|
|
(8,102
|
)
|
||||||
Recoveries
|
—
|
|
|
786
|
|
|
786
|
|
|
—
|
|
|
617
|
|
|
617
|
|
||||||
Net charge-offs
|
(38
|
)
|
|
(836
|
)
|
|
(874
|
)
|
|
(4,047
|
)
|
|
(3,438
|
)
|
|
(7,485
|
)
|
||||||
Provision (recoupment) for loan loss
|
(335
|
)
|
|
5,279
|
|
|
4,944
|
|
|
999
|
|
|
2,525
|
|
|
3,524
|
|
||||||
Ending allowance for loan losses
|
$
|
907
|
|
|
$
|
15,684
|
|
|
$
|
16,591
|
|
|
$
|
1,604
|
|
|
$
|
9,815
|
|
|
$
|
11,419
|
|
Ratio of annualized net charge-offs to average total loans during the period, respectively
|
0.01
|
%
|
|
0.07
|
%
|
|
0.06
|
%
|
|
0.81
|
%
|
|
0.43
|
%
|
|
0.58
|
%
|
||||||
Ratio of allowance for loan losses to total loans outstanding at period end, respectively
|
0.28
|
%
|
|
0.85
|
%
|
|
0.76
|
%
|
|
0.31
|
%
|
|
0.80
|
%
|
|
0.66
|
%
|
||||||
Ratio of allowance for loan losses to total non-covered loans outstanding at period end, respectively
|
0.66
|
%
|
|
0.86
|
%
|
|
0.85
|
%
|
|
0.79
|
%
|
|
0.84
|
%
|
|
0.83
|
%
|
||||||
Ratio of allowance for loan losses to total non-performing loans at period end, respectively
|
0.00
|
%
|
|
82.83
|
%
|
|
87.62
|
%
|
|
9.51
|
%
|
|
70.14
|
%
|
|
37.01
|
%
|
||||||
Ratio of allowance for loan losses to total non-performing, non-covered loans at period end, respectively
|
0.00
|
%
|
|
90.16
|
%
|
|
95.37
|
%
|
|
0.00
|
%
|
|
84.68
|
%
|
|
98.52
|
%
|
||||||
Total loans
|
$
|
320,593
|
|
|
$
|
1,850,779
|
|
|
$
|
2,171,372
|
|
|
$
|
513,010
|
|
|
$
|
1,229,803
|
|
|
$
|
1,742,813
|
|
Average total loans outstanding during the period
|
$
|
384,215
|
|
|
$
|
1,624,839
|
|
|
$
|
2,009,054
|
|
|
$
|
669,623
|
|
|
$
|
1,068,194
|
|
|
$
|
1,737,817
|
|
Total non-covered loans
|
$
|
137,107
|
|
|
$
|
1,814,797
|
|
|
$
|
1,951,904
|
|
|
$
|
203,630
|
|
|
$
|
1,172,837
|
|
|
$
|
1,376,467
|
|
Total non-performing loans
|
$
|
—
|
|
|
$
|
18,936
|
|
|
$
|
18,936
|
|
|
$
|
16,858
|
|
|
$
|
13,993
|
|
|
$
|
30,851
|
|
Total non-performing, covered loans
|
$
|
—
|
|
|
$
|
1,540
|
|
|
$
|
1,540
|
|
|
$
|
16,858
|
|
|
$
|
2,402
|
|
|
$
|
19,260
|
|
|
September 30, 2014
|
||||||||||||
|
Total loans
|
|
% of total
loans
|
|
Related
ALL
|
|
% of ALL
|
||||||
Commercial
|
$
|
755,172
|
|
|
34.8
|
%
|
|
$
|
7,383
|
|
|
44.5
|
%
|
Agriculture
|
162,872
|
|
|
7.5
|
%
|
|
1,333
|
|
|
8.0
|
%
|
||
Commercial real estate
|
594,316
|
|
|
27.4
|
%
|
|
3,144
|
|
|
19.0
|
%
|
||
Residential real estate
|
623,399
|
|
|
28.7
|
%
|
|
4,200
|
|
|
25.3
|
%
|
||
Consumer and overdrafts
|
35,613
|
|
|
1.6
|
%
|
|
531
|
|
|
3.2
|
%
|
||
Total
|
$
|
2,171,372
|
|
|
100.0
|
%
|
|
$
|
16,591
|
|
|
100.0
|
%
|
|
December 31, 2013
|
||||||||||||
|
Total loans
|
|
% of total
loans |
|
Related
ALL |
|
% of ALL
|
||||||
Commercial
|
$
|
483,495
|
|
|
26.1
|
%
|
|
$
|
4,258
|
|
|
34.0
|
%
|
Agriculture
|
159,952
|
|
|
8.6
|
%
|
|
1,237
|
|
|
9.9
|
%
|
||
Commercial real estate
|
574,220
|
|
|
31.0
|
%
|
|
2,276
|
|
|
18.2
|
%
|
||
Residential real estate
|
599,924
|
|
|
32.3
|
%
|
|
4,259
|
|
|
34.0
|
%
|
||
Consumer and overdrafts
|
36,503
|
|
|
2.0
|
%
|
|
491
|
|
|
3.9
|
%
|
||
Total
|
$
|
1,854,094
|
|
|
100.0
|
%
|
|
$
|
12,521
|
|
|
100.0
|
%
|
|
September 30, 2014
|
|
December 31, 2013
|
||||
Accrued income taxes receivable and deferred tax assets
|
$
|
51,866
|
|
|
$
|
54,032
|
|
Bank-owned life insurance
|
40,053
|
|
|
—
|
|
||
Minority interest in participated other real estate owned
|
8,534
|
|
|
10,627
|
|
||
Accrued interest on loans
|
8,103
|
|
|
6,134
|
|
||
Accrued interest on interest bearing bank deposits and investment securities
|
4,748
|
|
|
5,221
|
|
||
Other assets
|
11,818
|
|
|
10,533
|
|
||
Total other assets
|
$
|
125,122
|
|
|
$
|
86,547
|
|
|
September 30, 2014
|
|
December 31, 2013
|
||||
Pending loan purchase settlement
|
$
|
29,906
|
|
|
$
|
5,063
|
|
Accrued expenses
|
14,636
|
|
|
15,425
|
|
||
Accrued income taxes payable
|
5,073
|
|
|
—
|
|
||
Warrant liability
|
3,547
|
|
|
6,281
|
|
||
Accrued interest payable
|
3,607
|
|
|
3,058
|
|
||
Participant interest in other real estate owned
|
—
|
|
|
4,243
|
|
||
Other liabilities
|
4,552
|
|
|
2,515
|
|
||
Total other liabilities
|
$
|
61,321
|
|
|
$
|
36,585
|
|
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||
Non-interest bearing demand deposits
|
$
|
724,186
|
|
|
19.1
|
%
|
|
$
|
674,989
|
|
|
17.6
|
%
|
Interest bearing demand deposits
|
369,917
|
|
|
9.7
|
%
|
|
386,762
|
|
|
10.1
|
%
|
||
Savings accounts
|
245,549
|
|
|
6.5
|
%
|
|
198,444
|
|
|
5.1
|
%
|
||
Money market accounts
|
1,061,736
|
|
|
27.9
|
%
|
|
1,082,427
|
|
|
28.2
|
%
|
||
Total transaction deposits
|
2,401,388
|
|
|
63.2
|
%
|
|
2,342,622
|
|
|
61.0
|
%
|
||
Time deposits < $100,000
|
883,846
|
|
|
23.3
|
%
|
|
971,431
|
|
|
25.3
|
%
|
||
Time deposits
>
$100,000
|
512,224
|
|
|
13.5
|
%
|
|
524,256
|
|
|
13.7
|
%
|
||
Total time deposits
|
1,396,070
|
|
|
36.8
|
%
|
|
1,495,687
|
|
|
39.0
|
%
|
||
Total deposits
|
$
|
3,797,458
|
|
|
100.0
|
%
|
|
$
|
3,838,309
|
|
|
100.0
|
%
|
|
For the three months ended September 30, 2014
|
|
For the three months ended September 30, 2013
|
||||||||||||||||||
|
Average
Balance
|
|
Interest
|
|
Average
Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Rate
|
||||||||||
Interest earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ASC 310-30 loans
|
$
|
341,405
|
|
|
$
|
14,368
|
|
|
16.83
|
%
|
|
$
|
554,750
|
|
|
$
|
19,603
|
|
|
14.14
|
%
|
Non 310-30 loans
(1)(2)(3)(4)
|
1,767,106
|
|
|
19,266
|
|
|
4.33
|
%
|
|
1,149,312
|
|
|
15,725
|
|
|
5.43
|
%
|
||||
Investment securities available-for-sale
|
1,614,621
|
|
|
7,693
|
|
|
1.91
|
%
|
|
1,983,108
|
|
|
8,851
|
|
|
1.79
|
%
|
||||
Investment securities held-to-maturity
|
575,289
|
|
|
4,056
|
|
|
2.82
|
%
|
|
648,799
|
|
|
4,688
|
|
|
2.89
|
%
|
||||
Other securities
|
21,649
|
|
|
245
|
|
|
4.53
|
%
|
|
31,754
|
|
|
388
|
|
|
4.89
|
%
|
||||
Interest earning deposits and securities purchased under agreements to resell
|
133,752
|
|
|
95
|
|
|
0.28
|
%
|
|
379,537
|
|
|
267
|
|
|
0.28
|
%
|
||||
Total interest earning assets
(4)
|
$
|
4,453,822
|
|
|
$
|
45,723
|
|
|
4.07
|
%
|
|
$
|
4,747,260
|
|
|
$
|
49,522
|
|
|
4.14
|
%
|
Cash and due from banks
|
57,056
|
|
|
|
|
|
|
60,410
|
|
|
|
|
|
||||||||
Other assets
|
360,532
|
|
|
|
|
|
|
402,496
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
(16,601
|
)
|
|
|
|
|
|
(11,668
|
)
|
|
|
|
|
||||||||
Total assets
|
$
|
4,854,809
|
|
|
|
|
|
|
$
|
5,198,498
|
|
|
|
|
|
||||||
Interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing demand, savings and money market deposits
|
$
|
1,689,692
|
|
|
$
|
1,092
|
|
|
0.26
|
%
|
|
$
|
1,744,705
|
|
|
$
|
1,085
|
|
|
0.25
|
%
|
Time deposits
|
1,412,916
|
|
|
2,471
|
|
|
0.69
|
%
|
|
1,561,552
|
|
|
2,880
|
|
|
0.73
|
%
|
||||
Securities sold under agreements to repurchase
|
104,020
|
|
|
34
|
|
|
0.13
|
%
|
|
120,654
|
|
|
42
|
|
|
0.14
|
%
|
||||
Total interest bearing liabilities
|
$
|
3,206,628
|
|
|
$
|
3,597
|
|
|
0.44
|
%
|
|
$
|
3,426,911
|
|
|
$
|
4,007
|
|
|
0.46
|
%
|
Demand deposits
|
715,198
|
|
|
|
|
|
|
668,400
|
|
|
|
|
|
||||||||
Other liabilities
|
83,632
|
|
|
|
|
|
|
65,219
|
|
|
|
|
|
||||||||
Total liabilities
|
4,005,458
|
|
|
|
|
|
|
4,160,530
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
849,351
|
|
|
|
|
|
|
1,037,968
|
|
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
4,854,809
|
|
|
|
|
|
|
$
|
5,198,498
|
|
|
|
|
|
||||||
Net interest income
|
|
|
$
|
42,126
|
|
|
|
|
|
|
$
|
45,515
|
|
|
|
||||||
Interest rate spread
|
|
|
|
|
3.63
|
%
|
|
|
|
|
|
3.68
|
%
|
||||||||
Net interest earning assets
|
$
|
1,247,194
|
|
|
|
|
|
|
$
|
1,320,349
|
|
|
|
|
|
||||||
Net interest margin
(4)
|
|
|
|
|
3.75
|
%
|
|
|
|
|
|
3.80
|
%
|
||||||||
Ratio of average interest earning assets to average interest bearing liabilities
|
138.89
|
%
|
|
|
|
|
|
138.53
|
%
|
|
|
|
|
(1)
|
Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan.
|
(2)
|
Includes originated loans with average balances of
$1.5 billion
and
$769.6 million
, interest income of
$15.4 million
and
$8.7 million
, and yields of
4.07%
and
4.48%
for the three months ended
September 30, 2014
and
2013
, respectively.
|
(3)
|
Non 310-30 loans include loans held-for-sale. Average balances during the three months ended
September 30, 2014
and
2013
were
$3.8 million
and
$6.1 million
, and interest income was
$81 thousand
and
$101 thousand
for the same periods, respectively.
|
(4)
|
Presented on a fully taxable equivalent basis using the statutory tax rate of 35%. The taxable equivalent adjustments included above are
$231 thousand
and
$0
for the three months ended
September 30, 2014
and
2013
, respectively.
|
|
For the nine months ended September 30, 2014
|
|
For the nine months ended September 30, 2013
|
||||||||||||||||||
|
Average
balance
|
|
Interest
|
|
Average
rate
|
|
Average
balance
|
|
Interest
|
|
Average
rate
|
||||||||||
Interest earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ASC 310-30 loans
|
$
|
384,215
|
|
|
$
|
46,646
|
|
|
16.19
|
%
|
|
$
|
669,623
|
|
|
$
|
59,616
|
|
|
11.87
|
%
|
Non 310-30 loans
(1)(2)(3)(4)
|
1,627,720
|
|
|
53,668
|
|
|
4.41
|
%
|
|
1,074,396
|
|
|
46,167
|
|
|
5.75
|
%
|
||||
Investment securities available-for-sale
|
1,698,404
|
|
|
24,614
|
|
|
1.93
|
%
|
|
1,980,048
|
|
|
26,574
|
|
|
1.79
|
%
|
||||
Investment securities held-to-maturity
|
603,459
|
|
|
12,909
|
|
|
2.85
|
%
|
|
578,413
|
|
|
13,809
|
|
|
3.18
|
%
|
||||
Other securities
|
25,470
|
|
|
904
|
|
|
4.73
|
%
|
|
32,282
|
|
|
1,170
|
|
|
4.83
|
%
|
||||
Interest earning deposits and securities purchased under agreements to resell
|
125,095
|
|
|
251
|
|
|
0.27
|
%
|
|
406,029
|
|
|
762
|
|
|
0.25
|
%
|
||||
Total interest earning assets
(4)
|
$
|
4,464,363
|
|
|
$
|
138,992
|
|
|
4.16
|
%
|
|
$
|
4,740,791
|
|
|
$
|
148,098
|
|
|
4.18
|
%
|
Cash and due from banks
|
58,009
|
|
|
|
|
|
|
60,909
|
|
|
|
|
|
||||||||
Other assets
|
374,372
|
|
|
|
|
|
|
440,709
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
(14,854
|
)
|
|
|
|
|
|
(12,930
|
)
|
|
|
|
|
||||||||
Total assets
|
$
|
4,881,890
|
|
|
|
|
|
|
$
|
5,229,479
|
|
|
|
|
|
||||||
Interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing demand, savings and money market deposits
|
$
|
1,709,382
|
|
|
$
|
3,248
|
|
|
0.25
|
%
|
|
$
|
1,736,981
|
|
|
$
|
3,240
|
|
|
0.25
|
%
|
Time deposits
|
1,437,209
|
|
|
7,377
|
|
|
0.69
|
%
|
|
1,629,059
|
|
|
9,407
|
|
|
0.77
|
%
|
||||
Securities sold under agreements to repurchase
|
94,027
|
|
|
92
|
|
|
0.13
|
%
|
|
76,391
|
|
|
80
|
|
|
0.14
|
%
|
||||
Total interest bearing liabilities
|
$
|
3,240,618
|
|
|
$
|
10,717
|
|
|
0.44
|
%
|
|
$
|
3,442,431
|
|
|
$
|
12,727
|
|
|
0.49
|
%
|
Demand deposits
|
691,529
|
|
|
|
|
|
|
654,625
|
|
|
|
|
|
||||||||
Other liabilities
|
71,510
|
|
|
|
|
|
|
65,053
|
|
|
|
|
|
||||||||
Total liabilities
|
4,003,657
|
|
|
|
|
|
|
4,162,109
|
|
|
|
|
|
||||||||
Shareholders’ equity
|
878,233
|
|
|
|
|
|
|
1,067,370
|
|
|
|
|
|
||||||||
Total liabilities and shareholders’ equity
|
$
|
4,881,890
|
|
|
|
|
|
|
$
|
5,229,479
|
|
|
|
|
|
||||||
Net interest income
|
|
|
$
|
128,275
|
|
|
|
|
|
|
$
|
135,371
|
|
|
|
||||||
Interest rate spread
|
|
|
|
|
3.72
|
%
|
|
|
|
|
|
3.69
|
%
|
||||||||
Net interest earning assets
|
$
|
1,223,745
|
|
|
|
|
|
|
$
|
1,298,360
|
|
|
|
|
|
||||||
Net interest margin
(4)
|
|
|
|
|
3.84
|
%
|
|
|
|
|
|
3.82
|
%
|
||||||||
Ratio of average interest earning assets to average interest bearing liabilities
|
137.76
|
%
|
|
|
|
|
|
137.72
|
%
|
|
|
|
|
(1)
|
Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan.
|
(2)
|
Includes originated loans with average balances of
$1.3 billion
and
$653.7 million
, interest income of
$41.0 million
and
$22.8 million
, and yields of
4.08%
and
4.67%
for the
nine
months ended
September 30, 2014
and
2013
, respectively.
|
(3)
|
Non 310-30 loans include loans held-for-sale. Average balances during the
nine
months ended
September 30, 2014
and
2013
were
$2.9 million
and
$6.2 million
, and interest income was
$184 thousand
and
$262 thousand
for the same periods, respectively.
|
(4)
|
Presented on a fully taxable equivalent basis using the statutory tax rate of 35%. The taxable equivalent adjustments included above are
$610 thousand
and $0 for the
nine
months ended
September 30, 2014
and
2013
, respectively.
|
|
Three months ended September 30, 2014
|
|
Nine months ended September 30, 2014
|
||||||||||||||||||||
|
compared to
|
|
compared to
|
||||||||||||||||||||
|
Three months ended September 30, 2013
|
|
Nine months ended September 30, 2013
|
||||||||||||||||||||
|
Increase (decrease) due to
|
|
Increase (decrease) due to
|
||||||||||||||||||||
|
Volume
|
|
Rate
|
|
Net
|
|
Volume
|
|
Rate
|
|
Net
|
||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
ASC 310-30 loans
|
$
|
(8,979
|
)
|
|
$
|
3,744
|
|
|
$
|
(5,235
|
)
|
|
$
|
(34,650
|
)
|
|
$
|
21,680
|
|
|
$
|
(12,970
|
)
|
Non 310-30 loans
(1)(2)(3)
|
6,736
|
|
|
(3,195
|
)
|
|
3,541
|
|
|
18,244
|
|
|
(10,743
|
)
|
|
7,501
|
|
||||||
Investment securities available-for-sale
|
(1,756
|
)
|
|
598
|
|
|
(1,158
|
)
|
|
(4,082
|
)
|
|
2,122
|
|
|
(1,960
|
)
|
||||||
Investment securities held-to-maturity
|
(518
|
)
|
|
(114
|
)
|
|
(632
|
)
|
|
536
|
|
|
(1,436
|
)
|
|
(900
|
)
|
||||||
Other securities
|
(114
|
)
|
|
(29
|
)
|
|
(143
|
)
|
|
(242
|
)
|
|
(24
|
)
|
|
(266
|
)
|
||||||
Interest earning deposits and securities purchased under agreements to resell
|
(175
|
)
|
|
3
|
|
|
(172
|
)
|
|
(564
|
)
|
|
53
|
|
|
(511
|
)
|
||||||
Total interest income
|
$
|
(4,806
|
)
|
|
$
|
1,007
|
|
|
$
|
(3,799
|
)
|
|
$
|
(20,758
|
)
|
|
$
|
11,652
|
|
|
$
|
(9,106
|
)
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest bearing demand, savings and money market deposits
|
$
|
(36
|
)
|
|
$
|
43
|
|
|
$
|
7
|
|
|
$
|
(52
|
)
|
|
$
|
60
|
|
|
$
|
8
|
|
Time deposits
|
(260
|
)
|
|
(149
|
)
|
|
(409
|
)
|
|
(985
|
)
|
|
(1,045
|
)
|
|
(2,030
|
)
|
||||||
Securities sold under agreements to repurchase
|
(5
|
)
|
|
(3
|
)
|
|
(8
|
)
|
|
17
|
|
|
(5
|
)
|
|
12
|
|
||||||
Total interest expense
|
(301
|
)
|
|
(109
|
)
|
|
(410
|
)
|
|
(1,020
|
)
|
|
(990
|
)
|
|
(2,010
|
)
|
||||||
Net change in net interest income
|
$
|
(4,505
|
)
|
|
$
|
1,116
|
|
|
$
|
(3,389
|
)
|
|
$
|
(19,738
|
)
|
|
$
|
12,642
|
|
|
$
|
(7,096
|
)
|
(1)
|
Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan.
|
(2)
|
Non 310-30 loans include loans held-for-sale. Average balances of the loans held-for-sale during the three months ended
September 30, 2014
and
2013
were
$3.8 million
and
$6.1 million
, and interest income on the loans held-for-sale was
$81 thousand
and
$101 thousand
for the same periods, respectively. Average balances during the
nine
months ended
|
(3)
|
Presented on a fully taxable equivalent basis using the statutory tax rate of 35%. The taxable equivalent adjustments included above are
$231 thousand
and
$0
for the three months ended
September 30, 2014
and
2013
, respectively, and
$610 thousand
and
$0
for the
nine
months ended
September 30, 2014
and
2013
, respectively.
|
|
For the three months ended
|
|||||||||||||||||||||||||||||||||
|
September 30, 2014
|
|
June 30, 2014
|
|
March 31, 2014
|
|
December 31, 2013
|
|
September 30, 2013
|
|||||||||||||||||||||||||
|
Average
balance
|
|
Average
rate
paid
|
|
Average
balance |
|
Average
rate paid |
|
Average
balance |
|
Average
rate paid |
|
Average
balance |
|
Average
rate paid |
|
Average
balance |
|
Average
rate paid |
|||||||||||||||
Non-interest bearing demand
|
$
|
715,198
|
|
|
0.00
|
%
|
|
$
|
691,851
|
|
|
0.00
|
%
|
|
$
|
667,009
|
|
|
0.00
|
%
|
|
$
|
676,959
|
|
|
0.00
|
%
|
|
$
|
668,400
|
|
|
0.00
|
%
|
Interest bearing demand
|
375,761
|
|
|
0.08
|
%
|
|
389,187
|
|
|
0.08
|
%
|
|
394,452
|
|
|
0.09
|
%
|
|
379,052
|
|
|
0.09
|
%
|
|
460,971
|
|
|
0.14
|
%
|
|||||
Money market accounts
|
1,062,060
|
|
|
0.32
|
%
|
|
1,078,682
|
|
|
0.32
|
%
|
|
1,098,041
|
|
|
0.32
|
%
|
|
1,097,009
|
|
|
0.32
|
%
|
|
1,088,084
|
|
|
0.32
|
%
|
|||||
Savings accounts
|
251,871
|
|
|
0.23
|
%
|
|
254,242
|
|
|
0.24
|
%
|
|
224,145
|
|
|
0.18
|
%
|
|
191,592
|
|
|
0.12
|
%
|
|
195,650
|
|
|
0.11
|
%
|
|||||
Time deposits
|
1,412,916
|
|
|
0.69
|
%
|
|
1,435,155
|
|
|
0.69
|
%
|
|
1,464,120
|
|
|
0.68
|
%
|
|
1,544,223
|
|
|
0.70
|
%
|
|
1,561,552
|
|
|
0.73
|
%
|
|||||
Total average deposits
|
$
|
3,817,806
|
|
|
0.37
|
%
|
|
$
|
3,849,117
|
|
|
0.37
|
%
|
|
$
|
3,847,767
|
|
|
0.37
|
%
|
|
$
|
3,888,835
|
|
|
0.38
|
%
|
|
$
|
3,974,657
|
|
|
0.40
|
%
|
|
For the three months ended
|
|
For the nine months ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Provision for (recoupment of) impairment on loans accounted for under ASC 310-30
|
$
|
(191
|
)
|
|
$
|
(313
|
)
|
|
$
|
(335
|
)
|
|
$
|
999
|
|
Provision for loan losses
|
1,706
|
|
|
750
|
|
|
5,279
|
|
|
2,525
|
|
||||
Total provision for loan losses
|
$
|
1,515
|
|
|
$
|
437
|
|
|
$
|
4,944
|
|
|
$
|
3,524
|
|
|
For the three months ended
|
|
For the nine months ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
FDIC indemnification asset amortization
|
$
|
(6,252
|
)
|
|
$
|
(4,208
|
)
|
|
$
|
(19,819
|
)
|
|
$
|
(11,843
|
)
|
FDIC loss sharing (expense) income
|
(943
|
)
|
|
(1,191
|
)
|
|
(2,549
|
)
|
|
3,278
|
|
||||
Service charges
|
4,148
|
|
|
4,334
|
|
|
11,558
|
|
|
11,944
|
|
||||
Bank card fees
|
2,615
|
|
|
2,482
|
|
|
7,548
|
|
|
7,509
|
|
||||
Gain on sale of mortgages, net
|
264
|
|
|
345
|
|
|
674
|
|
|
1,125
|
|
||||
Gain on previously charged-off acquired loans
|
147
|
|
|
224
|
|
|
675
|
|
|
1,118
|
|
||||
OREO related write-ups and other income
|
799
|
|
|
727
|
|
|
2,777
|
|
|
2,713
|
|
||||
Other non-interest income
|
836
|
|
|
625
|
|
|
2,557
|
|
|
1,969
|
|
||||
Total non-interest income
|
$
|
1,614
|
|
|
$
|
3,338
|
|
|
$
|
3,421
|
|
|
$
|
17,813
|
|
|
For the three months ended
|
|
For the nine months ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Clawback liability amortization
|
$
|
(345
|
)
|
|
$
|
(314
|
)
|
|
$
|
(1,009
|
)
|
|
$
|
(937
|
)
|
Clawback liability remeasurement
|
(592
|
)
|
|
(405
|
)
|
|
(1,646
|
)
|
|
244
|
|
||||
Reimbursement to FDIC for gain on sale of and income from covered OREO
|
(1,587
|
)
|
|
(2,514
|
)
|
|
(3,287
|
)
|
|
(4,615
|
)
|
||||
Reimbursement to FDIC for recoveries
|
(62
|
)
|
|
—
|
|
|
(180
|
)
|
|
(22
|
)
|
||||
FDIC reimbursement of covered asset resolution costs
|
1,643
|
|
|
2,042
|
|
|
3,573
|
|
|
8,608
|
|
||||
FDIC loss sharing (expense) income
|
$
|
(943
|
)
|
|
$
|
(1,191
|
)
|
|
$
|
(2,549
|
)
|
|
$
|
3,278
|
|
|
For the three months ended
|
|
For the nine months ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Salaries and benefits
|
$
|
21,058
|
|
|
$
|
22,639
|
|
|
$
|
62,260
|
|
|
$
|
69,363
|
|
Occupancy and equipment
|
6,155
|
|
|
6,556
|
|
|
18,838
|
|
|
18,391
|
|
||||
Telecommunications and data processing
|
2,848
|
|
|
3,050
|
|
|
8,978
|
|
|
9,805
|
|
||||
Marketing and business development
|
757
|
|
|
1,408
|
|
|
3,542
|
|
|
3,519
|
|
||||
FDIC deposit insurance
|
1,029
|
|
|
1,021
|
|
|
3,109
|
|
|
3,074
|
|
||||
ATM/debit card expenses
|
799
|
|
|
1,179
|
|
|
2,312
|
|
|
3,291
|
|
||||
Professional fees
|
854
|
|
|
791
|
|
|
2,180
|
|
|
3,045
|
|
||||
Other non-interest expense
|
2,540
|
|
|
3,210
|
|
|
7,698
|
|
|
9,667
|
|
||||
(Gain) loss from change in fair value of warrant liability
|
(1,256
|
)
|
|
441
|
|
|
(2,734
|
)
|
|
138
|
|
||||
Intangible asset amortization
|
1,336
|
|
|
1,336
|
|
|
4,008
|
|
|
4,009
|
|
||||
Other real estate owned expenses
|
594
|
|
|
459
|
|
|
3,629
|
|
|
7,675
|
|
||||
Problem loan expenses
|
1,267
|
|
|
1,134
|
|
|
3,034
|
|
|
4,361
|
|
||||
Banking center closure related expenses
|
—
|
|
|
3,389
|
|
|
—
|
|
|
3,389
|
|
||||
Total non-interest expense
|
$
|
37,981
|
|
|
$
|
46,613
|
|
|
$
|
116,854
|
|
|
$
|
139,727
|
|
|
September 30, 2014
|
|
December 31, 2013
|
||||
Cash and due from banks
|
$
|
58,525
|
|
|
$
|
67,420
|
|
Due from Federal Reserve Bank of Kansas City
|
50,092
|
|
|
107,894
|
|
||
Interest bearing bank deposits
|
10,042
|
|
|
14,146
|
|
||
Unencumbered investment securities, at fair value
|
1,776,033
|
|
|
2,177,239
|
|
||
Total
|
$
|
1,894,692
|
|
|
$
|
2,366,699
|
|
Hypothetical
|
|
|
|
|
shift in interest
|
|
% change in projected net interest income
|
||
rates (in bps)
|
|
September 30, 2014
|
|
December 31, 2013
|
200
|
|
6.22%
|
|
4.09%
|
100
|
|
3.56%
|
|
2.32%
|
-50
|
|
-1.28%
|
|
-1.11%
|
Period
|
|
(a) Total Number
of Shares (or
Units) Purchased
|
|
(b) Average
Price Paid Per
Share (or Unit)
|
|
(c) Total Number of
Shares (or Units)
Purchased as Part of
Publicly Announced
Plans or Programs
|
|
(d) Maximum Number
(or Approximate Dollar
Value) of Shares (or
Units) that May Yet Be
Purchased Under the
Plans or Programs
|
||||||
July 1 - July 31, 2014
|
|
240,619
|
|
|
$
|
19.68
|
|
|
240,619
|
|
|
$
|
50,273,195
|
|
August 1 - August 31, 2014
|
|
374,244
|
|
|
19.91
|
|
|
374,244
|
|
|
42,828,542
|
|
||
September 1 - September 30, 2014
|
|
2,160,000
|
|
|
19.84
|
|
|
2,160,000
|
|
|
17,342
|
|
||
Total
|
|
2,774,863
|
|
|
$
|
19.84
|
|
|
2,774,863
|
|
|
$
|
17,342
|
|
•
|
update to the Company’s registered office in the State of Delaware (Section 1.1), and
|
•
|
addition of a provision requiring specified shareholder actions and proceedings against the Company to be brought in a state court located within the State of Delaware, or if no state court located within the State of Delaware has jurisdiction, the federal district court for the District of Delaware (Section 10.1).
|
3.1
|
|
Second Amended and Restated Certificate of Incorporation (incorporated herein by reference to Exhibit 3.1 to our Form S-1 Registration Statement (Registration No. 333-177971), filed August 22, 2012)
|
|
|
|
3.2
|
|
Second Amended and Restated Bylaws
|
|
|
|
31.1
|
|
Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
31.2
|
|
Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
32
|
|
Certifications of CEO and CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
101
|
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income (Loss), (iv) the Consolidated Statements of Changes in Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements, tagged as blocks of text and in detail*
|
*
|
|
This information is deemed furnished, not filed.
|
NATIONAL BANK HOLDINGS CORPORATION
|
|
/s/ Brian F. Lilly
|
Brian F. Lilly
|
Chief Financial Officer
|
(Authorized Officer and Principal Financial Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of National Bank Holdings Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer 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 the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
November 7, 2014
|
/s/ G. Timothy Laney
|
|
|
G. Timothy Laney
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of National Bank Holdings Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer 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 the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
November 7, 2014
|
/s/ Brian F. Lilly
|
|
|
Brian F. Lilly
Chief Financial Officer
|
Date:
|
November 7, 2014
|
/s/ G. Timothy Laney
|
|
|
G. Timothy Laney
Chief Executive Officer
|
|
|
|
Date:
|
November 7, 2014
|
/s/ Brian F. Lilly
|
|
|
Brian F. Lilly
Chief Financial Officer
|