x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended JUNE 30, 2014 or |
o | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ______ to ______. |
RHODE ISLAND | 05-0404671 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
23 BROAD STREET | ||
WESTERLY, RHODE ISLAND | 02891 | |
(Address of principal executive offices) | (Zip Code) |
(401) 348-1200 |
(Registrant’s telephone number, including area code) |
Large accelerated filer o | Accelerated filer x | |
Non-accelerated filer o | Smaller reporting company o | |
(Do not check if a smaller reporting company) |
FORM 10-Q | ||
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | ||
For the Quarter Ended June 30, 2014 | ||
TABLE OF CONTENTS | ||
Page Number | ||
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars in thousands, |
CONSOLIDATED BALANCE SHEETS (unaudited) | except par value) |
June 30, 2014 | December 31, 2013 | |||||||
Assets: | ||||||||
Cash and due from banks | $145,408 | $81,939 | ||||||
Short-term investments | 3,781 | 3,378 | ||||||
Mortgage loans held for sale, at fair value | 22,407 | 11,636 | ||||||
Securities: | ||||||||
Available for sale, at fair value | 327,578 | 392,903 | ||||||
Held to maturity, at amortized cost (fair value $28,618 in 2014 and $29,865 in 2013) | 27,814 | 29,905 | ||||||
Total securities | 355,392 | 422,808 | ||||||
Federal Home Loan Bank stock, at cost | 37,730 | 37,730 | ||||||
Loans: | ||||||||
Commercial | 1,366,170 | 1,363,335 | ||||||
Residential real estate | 876,639 | 772,674 | ||||||
Consumer | 338,315 | 326,875 | ||||||
Total loans | 2,581,124 | 2,462,884 | ||||||
Less allowance for loan losses | 27,269 | 27,886 | ||||||
Net loans | 2,553,855 | 2,434,998 | ||||||
Premises and equipment, net | 26,518 | 25,402 | ||||||
Investment in bank-owned life insurance | 57,559 | 56,673 | ||||||
Goodwill | 58,114 | 58,114 | ||||||
Identifiable intangible assets, net | 5,165 | 5,493 | ||||||
Other assets | 51,093 | 50,696 | ||||||
Total assets | $3,317,022 | $3,188,867 | ||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand deposits | $411,586 | $440,785 | ||||||
NOW accounts | 314,060 | 309,771 | ||||||
Money market accounts | 772,084 | 666,646 | ||||||
Savings accounts | 292,112 | 297,357 | ||||||
Time deposits | 796,255 | 790,762 | ||||||
Total deposits | 2,586,097 | 2,505,321 | ||||||
Federal Home Loan Bank advances | 322,056 | 288,082 | ||||||
Junior subordinated debentures | 22,681 | 22,681 | ||||||
Other liabilities | 42,738 | 43,137 | ||||||
Total liabilities | 2,973,572 | 2,859,221 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ Equity: | ||||||||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,705,427 shares at June 30, 2014 and 16,613,561 shares at December 31, 2013 | 1,044 | 1,038 | ||||||
Paid-in capital | 99,288 | 97,566 | ||||||
Retained earnings | 241,918 | 232,595 | ||||||
Accumulated other comprehensive (gain) loss | 1,200 | (1,553 | ) | |||||
Total shareholders’ equity | 343,450 | 329,646 | ||||||
Total liabilities and shareholders’ equity | $3,317,022 | $3,188,867 |
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars and shares in thousands, |
CONSOLIDATED STATEMENTS OF INCOME (unaudited) | except per share amounts) |
Three months | Six months | |||||||||||||||
Periods ended June 30, | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $26,169 | $25,513 | $51,758 | $50,736 | ||||||||||||
Interest on securities: | Taxable | 2,699 | 2,576 | 5,641 | 5,421 | |||||||||||
Nontaxable | 557 | 647 | 1,139 | 1,306 | ||||||||||||
Dividends on Federal Home Loan Bank stock | 138 | 39 | 280 | 77 | ||||||||||||
Other interest income | 28 | 24 | 63 | 52 | ||||||||||||
Total interest and dividend income | 29,591 | 28,799 | 58,881 | 57,592 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 3,120 | 3,096 | 6,089 | 6,290 | ||||||||||||
Federal Home Loan Bank advances | 1,758 | 2,679 | 3,999 | 5,416 | ||||||||||||
Junior subordinated debentures | 241 | 612 | 482 | 1,002 | ||||||||||||
Other interest expense | 4 | 3 | 7 | 8 | ||||||||||||
Total interest expense | 5,123 | 6,390 | 10,577 | 12,716 | ||||||||||||
Net interest income | 24,468 | 22,409 | 48,304 | 44,876 | ||||||||||||
Provision for loan losses | 450 | 700 | 750 | 1,300 | ||||||||||||
Net interest income after provision for loan losses | 24,018 | 21,709 | 47,554 | 43,576 | ||||||||||||
Noninterest income: | ||||||||||||||||
Wealth management revenues | 8,530 | 7,912 | 16,595 | 15,386 | ||||||||||||
Merchant processing fees | — | 2,613 | 1,291 | 4,590 | ||||||||||||
Net gains on loan sales and commissions on loans originated for others | 1,707 | 3,485 | 2,946 | 7,651 | ||||||||||||
Service charges on deposit accounts | 824 | 790 | 1,578 | 1,581 | ||||||||||||
Card interchange fees | 779 | 683 | 1,460 | 1,282 | ||||||||||||
Income from bank-owned life insurance | 441 | 461 | 886 | 928 | ||||||||||||
Net (losses) gains on interest rate swap contracts | (37 | ) | 152 | 223 | 171 | |||||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | (107 | ) | (57 | ) | (150 | ) | (18 | ) | ||||||||
Net gain on sale of business line | — | — | 6,265 | — | ||||||||||||
Other income | 677 | 355 | 1,090 | 761 | ||||||||||||
Noninterest income, excluding other-than-temporary impairment losses | 12,814 | 16,394 | 32,184 | 32,332 | ||||||||||||
Total other-than-temporary impairment losses on securities | — | — | — | (613 | ) | |||||||||||
Portion of loss recognized in other comprehensive income (before tax) | — | — | — | (2,159 | ) | |||||||||||
Net impairment losses recognized in earnings | — | — | — | (2,772 | ) | |||||||||||
Total noninterest income | 12,814 | 16,394 | 32,184 | 29,560 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 14,771 | 15,542 | 29,329 | 30,984 | ||||||||||||
Net occupancy | 1,475 | 1,364 | 3,115 | 2,878 | ||||||||||||
Equipment | 1,235 | 1,192 | 2,471 | 2,436 | ||||||||||||
Merchant processing costs | — | 2,211 | 1,050 | 3,884 | ||||||||||||
Outsourced services | 1,015 | 871 | 2,059 | 1,712 | ||||||||||||
Legal, audit and professional fees | 598 | 554 | 1,216 | 1,162 | ||||||||||||
FDIC deposit insurance costs | 413 | 451 | 853 | 882 | ||||||||||||
Advertising and promotion | 540 | 476 | 772 | 831 | ||||||||||||
Amortization of intangibles | 164 | 173 | 328 | 346 | ||||||||||||
Foreclosed property costs | 43 | 137 | 21 | 184 | ||||||||||||
Debt prepayment penalties | — | — | 6,294 | — | ||||||||||||
Other expenses | 2,194 | 2,034 | 4,232 | 3,890 | ||||||||||||
Total noninterest expense | 22,448 | 25,005 | 51,740 | 49,189 | ||||||||||||
Income before income taxes | 14,384 | 13,098 | 27,998 | 23,947 | ||||||||||||
Income tax expense | 4,587 | 4,115 | 8,903 | 7,543 | ||||||||||||
Net income | $9,797 | $8,983 | $19,095 | $16,404 | ||||||||||||
Weighted average common shares outstanding - basic | 16,678 | 16,454 | 16,653 | 16,428 | ||||||||||||
Weighted average common shares outstanding - diluted | 16,831 | 16,581 | 16,817 | 16,558 | ||||||||||||
Per share information: | Basic earnings per common share | $0.59 | $0.54 | $1.14 | $0.99 | |||||||||||
Diluted earnings per common share | $0.58 | $0.54 | $1.13 | $0.99 | ||||||||||||
Cash dividends declared per share | $0.29 | $0.25 | $0.58 | $0.50 |
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars in thousands) |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) |
Three Months | Six Months | ||||||||||||||
Periods ended June 30, | 2014 | 2013 | 2014 | 2013 | |||||||||||
Net income | $9,797 | $8,983 | $19,095 | $16,404 | |||||||||||
Other comprehensive income, net of tax: | |||||||||||||||
Securities available for sale: | |||||||||||||||
Changes in fair value of securities available for sale | 1,817 | (3,821 | ) | 2,429 | (4,874 | ) | |||||||||
Net losses on securities reclassified into earnings | — | — | — | 393 | |||||||||||
Net change in fair value of securities available for sale | 1,817 | (3,821 | ) | 2,429 | (4,481 | ) | |||||||||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings | — | — | — | 1,384 | |||||||||||
Cash flow hedges: | |||||||||||||||
Change in fair value of cash flow hedges | (14 | ) | 34 | (30 | ) | 32 | |||||||||
Net cash flow hedge losses reclassified into earnings | 93 | 118 | 185 | 240 | |||||||||||
Net change in fair value of cash flow hedges | 79 | 152 | 155 | 272 | |||||||||||
Defined benefit plan obligation adjustment | 81 | 292 | 169 | 629 | |||||||||||
Total other comprehensive income (loss), net of tax | 1,977 | (3,377 | ) | 2,753 | (2,196 | ) | |||||||||
Total comprehensive income | $11,774 | $5,606 | $21,848 | $14,208 |
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars and shares in thousands) |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (unaudited) |
Common Shares Outstanding | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | Total | |||||||||||||||||
Balance at January 1, 2013 | 16,380 | $1,024 | $91,453 | $213,674 | ($10,499 | ) | $295,652 | |||||||||||||||
Net income | 16,404 | 16,404 | ||||||||||||||||||||
Total other comprehensive income (loss), net of tax | (2,196 | ) | (2,196 | ) | ||||||||||||||||||
Cash dividends declared | (8,317 | ) | (8,317 | ) | ||||||||||||||||||
Share-based compensation | 879 | 879 | ||||||||||||||||||||
Deferred compensation plan | 2 | — | 30 | 30 | ||||||||||||||||||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | 105 | 6 | 912 | 918 | ||||||||||||||||||
Balance at June 30, 2013 | 16,487 | $1,030 | $93,274 | $221,761 | ($12,695 | ) | $303,370 |
Common Shares Outstanding | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | Total | |||||||||||||||||
Balance at January 1, 2014 | 16,614 | $1,038 | $97,566 | $232,595 | ($1,553 | ) | $329,646 | |||||||||||||||
Net income | 19,095 | 19,095 | ||||||||||||||||||||
Total other comprehensive income, net of tax | 2,753 | 2,753 | ||||||||||||||||||||
Cash dividends declared | (9,772 | ) | (9,772 | ) | ||||||||||||||||||
Share-based compensation | 961 | 961 | ||||||||||||||||||||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | 91 | 6 | 761 | 767 | ||||||||||||||||||
Balance at June 30, 2014 | 16,705 | $1,044 | $99,288 | $241,918 | $1,200 | $343,450 |
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars in thousands) |
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
Six months ended June 30, | 2014 | 2013 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $19,095 | $16,404 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for loan losses | 750 | 1,300 | ||||||
Depreciation of premises and equipment | 1,564 | 1,677 | ||||||
Foreclosed and repossessed property valuation adjustments | 39 | 72 | ||||||
Net amortization of premium and discount | 373 | 887 | ||||||
Net amortization of intangibles | 328 | 346 | ||||||
Share-based compensation | 961 | 879 | ||||||
Income from bank-owned life insurance | (886 | ) | (928 | ) | ||||
Net gain on sale of business line | (6,265 | ) | — | |||||
Net gains on loan sales and commissions on loans originated for others | (2,946 | ) | (7,651 | ) | ||||
Net impairment losses recognized in earnings | — | 2,772 | ||||||
Net gains on interest rate swap contracts | (223 | ) | (171 | ) | ||||
Equity in (earnings) losses of unconsolidated subsidiaries | 150 | 18 | ||||||
Proceeds from sales of loans | 111,075 | 256,362 | ||||||
Loans originated for sale | (119,373 | ) | (231,167 | ) | ||||
(Increase) decrease in other assets | (828 | ) | 5,242 | |||||
Decrease in other liabilities | (2,876 | ) | (9,246 | ) | ||||
Net cash provided by operating activities | 938 | 36,796 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of: | Mortgage-backed securities available for sale | (9,987 | ) | (1,036 | ) | |||
Other investment securities available for sale | — | (424 | ) | |||||
Proceeds from sale of: | Other investment securities available for sale | 547 | — | |||||
Maturities and principal payments of: | Mortgage-backed securities available for sale | 51,724 | 45,561 | |||||
Other investment securities available for sale | 26,507 | 6,550 | ||||||
Mortgage-backed securities held to maturity | 1,977 | 6,279 | ||||||
Remittance of Federal Home Loan Bank stock | — | 2,688 | ||||||
Net proceeds from the sale of business line | 6,305 | — | ||||||
Proceeds received and deferred in connection with sale of business line | 900 | — | ||||||
Net increase in loans | (112,951 | ) | (84,443 | ) | ||||
Purchases of loans, including purchased interest | (6,088 | ) | (7,222 | ) | ||||
Proceeds from the sale of property acquired through foreclosure or repossession | 671 | 1,481 | ||||||
Purchases of premises and equipment | (2,681 | ) | (837 | ) | ||||
Net cash used in investing activities | (43,076 | ) | (31,403 | ) | ||||
Cash flows from financing activities: | ||||||||
Net increase (decrease) in deposits | 80,776 | (8,022 | ) | |||||
Net decrease in other borrowings | (22 | ) | (1,013 | ) | ||||
Proceeds from Federal Home Loan Bank advances | 234,000 | 204,000 | ||||||
Repayment of Federal Home Loan Bank advances | (200,026 | ) | (191,831 | ) | ||||
Proceeds from the exercise of stock options and issuance of other compensation-related equity instruments | 376 | 672 | ||||||
Tax benefit from stock option exercises and issuance of other compensation-related equity instruments | 391 | 276 | ||||||
Redemption of junior subordinated debentures | — | (10,310 | ) | |||||
Cash dividends paid | (9,485 | ) | (8,148 | ) | ||||
Net cash provided by (used in) financing activities | 106,010 | (14,376 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 63,872 | (8,983 | ) | |||||
Cash and cash equivalents at beginning of period | 85,317 | 92,650 | ||||||
Cash and cash equivalents at end of period | $149,189 | $83,667 |
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars in thousands) |
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
Six months ended June 30, | 2014 | 2013 | ||||||
Noncash Investing and Financing Activities: | ||||||||
Loans charged off | $1,490 | $4,549 | ||||||
Loans transferred to property acquired through foreclosure or repossession | 1,016 | 1,050 | ||||||
Supplemental Disclosures: | ||||||||
Interest payments | $10,440 | $12,446 | ||||||
Income tax payments | 7,965 | 7,328 |
(1) | General Information |
(2) | Recently Issued Accounting Pronouncements |
(3) | Cash and Due from Banks |
(4) | Securities |
(Dollars in thousands) | |||||||||||||||
June 30, 2014 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||
Securities Available for Sale: | |||||||||||||||
Obligations of U.S. government-sponsored enterprises | $9,999 | $13 | $— | $10,012 | |||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 217,767 | 10,531 | (13 | ) | 228,285 | ||||||||||
Obligations of states and political subdivisions | 54,161 | 2,230 | — | 56,391 | |||||||||||
Individual name issuer trust preferred debt securities | 30,734 | — | (4,099 | ) | 26,635 | ||||||||||
Corporate bonds | 6,123 | 133 | (1 | ) | 6,255 | ||||||||||
Total securities available for sale | $318,784 | $12,907 | ($4,113 | ) | $327,578 | ||||||||||
Held to Maturity: | |||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | $27,814 | $804 | $— | $28,618 | |||||||||||
Total securities held to maturity | $27,814 | $804 | $— | $28,618 | |||||||||||
Total securities | $346,598 | $13,711 | ($4,113 | ) | $356,196 |
(Dollars in thousands) | |||||||||||||||
December 31, 2013 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||
Securities Available for Sale: | |||||||||||||||
Obligations of U.S. government-sponsored enterprises | $54,474 | $720 | ($79 | ) | $55,115 | ||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 230,387 | 8,369 | (401 | ) | 238,355 | ||||||||||
Obligations of states and political subdivisions | 60,659 | 2,200 | — | 62,859 | |||||||||||
Trust preferred securities: | |||||||||||||||
Individual name issuers | 30,715 | — | (6,031 | ) | 24,684 | ||||||||||
Collateralized debt obligations | 547 | — | — | 547 | |||||||||||
Corporate bonds | 11,128 | 231 | (16 | ) | 11,343 | ||||||||||
Total securities available for sale | $387,910 | $11,520 | ($6,527 | ) | $392,903 | ||||||||||
Held to Maturity: | |||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | $29,905 | $14 | ($54 | ) | $29,865 | ||||||||||
Total securities held to maturity | $29,905 | $14 | ($54 | ) | $29,865 | ||||||||||
Total securities | $417,815 | $11,534 | ($6,581 | ) | $422,768 |
June 30, 2014 | |||||||||||||||||||
(Dollars in thousands) | Within 1 Year | 1-5 Years | 5-10 Years | After 10 Years | Totals | ||||||||||||||
Securities Available for Sale: | |||||||||||||||||||
Obligations of U.S. government-sponsored enterprises: | |||||||||||||||||||
Amortized cost | $9,999 | $— | $— | $— | $9,999 | ||||||||||||||
Weighted average yield | 2.87 | % | — | % | — | % | — | % | 2.87 | % | |||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | |||||||||||||||||||
Amortized cost | 38,199 | 100,451 | 53,538 | 25,579 | 217,767 | ||||||||||||||
Weighted average yield | 3.98 | % | 3.61 | % | 2.85 | % | 2.12 | % | 3.31 | % | |||||||||
Obligations of state and political subdivisions: | |||||||||||||||||||
Amortized cost | 18,072 | 36,089 | — | — | 54,161 | ||||||||||||||
Weighted average yield | 3.85 | % | 3.93 | % | — | % | — | % | 3.90 | % | |||||||||
Individual name issuer trust preferred debt securities: | |||||||||||||||||||
Amortized cost | — | — | — | 30,734 | 30,734 | ||||||||||||||
Weighted average yield | — | % | — | % | — | % | 1.07 | % | 1.07 | % | |||||||||
Corporate bonds: | |||||||||||||||||||
Amortized cost | — | 5,919 | 204 | — | 6,123 | ||||||||||||||
Weighted average yield | — | % | 2.76 | % | 3.20 | % | — | % | 2.78 | % | |||||||||
Total debt securities available for sale: | |||||||||||||||||||
Amortized cost | $66,270 | $142,459 | $53,742 | $56,313 | $318,784 | ||||||||||||||
Weighted average yield | 3.77 | % | 3.66 | % | 2.85 | % | 1.55 | % | 3.17 | % | |||||||||
Fair value | $68,872 | $144,962 | $56,196 | $57,548 | $327,578 | ||||||||||||||
Securities Held to Maturity: | |||||||||||||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | |||||||||||||||||||
Amortized cost | $3,400 | $10,557 | $8,373 | $5,484 | $27,814 | ||||||||||||||
Weighted average yield | 3.10 | % | 3.03 | % | 2.83 | % | 1.08 | % | 2.59 | % | |||||||||
Fair value | $3,498 | $10,862 | $8,615 | $5,643 | $28,618 |
(Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||
June 30, 2014 | # | Fair Value | Unrealized Losses | # | Fair Value | Unrealized Losses | # | Fair Value | Unrealized Losses | |||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | — | $— | $— | 1 | $935 | ($13 | ) | 1 | $935 | ($13 | ) | |||||||||||||||||||||
Individual name issuer trust preferred debt securities | — | — | — | 11 | 26,635 | (4,099 | ) | 11 | 26,635 | (4,099 | ) | |||||||||||||||||||||
Corporate bonds | — | — | — | 1 | 201 | (1 | ) | 1 | 201 | (1 | ) | |||||||||||||||||||||
Total temporarily impaired securities | — | — | $— | 13 | $27,771 | ($4,113 | ) | 13 | $27,771 | ($4,113 | ) |
(Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||
December 31, 2013 | # | Fair Value | Unrealized Losses | # | Fair Value | Unrealized Losses | # | Fair Value | Unrealized Losses | |||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | 1 | $9,909 | ($79 | ) | — | $— | $— | 1 | $9,909 | ($79 | ) | |||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 7 | 76,748 | (455 | ) | — | — | — | 7 | 76,748 | (455 | ) | |||||||||||||||||||||
Individual name issuer trust preferred debt securities | — | — | — | 11 | 24,684 | (6,031 | ) | 11 | 24,684 | (6,031 | ) | |||||||||||||||||||||
Corporate bonds | 2 | 407 | (16 | ) | — | — | — | 2 | 407 | (16 | ) | |||||||||||||||||||||
Total temporarily impaired securities | 10 | $87,064 | ($550 | ) | 11 | $24,684 | ($6,031 | ) | 21 | $111,748 | ($6,581 | ) |
(Dollars in thousands) | Three months | Six months | |||||||||||||
Periods ended June 30, | 2014 | 2013 | 2014 | 2013 | |||||||||||
Balance at beginning of period | $— | $1,229 | $— | $3,325 | |||||||||||
Credit-related impairment loss on debt securities for which an other-than-temporary impairment was not previously recognized | — | — | — | — | |||||||||||
Additional increases to the amount of credit-related impairment loss on debt securities for which an other-than-temporary impairment was previously recognized | — | — | — | 2,772 | |||||||||||
Reductions for securities for which a liquidation notice was received during the period | — | — | — | (4,868 | ) | ||||||||||
Balance at end of period | $— | $1,229 | $— | $1,229 |
(5) | Loans |
(Dollars in thousands) | June 30, 2014 | December 31, 2013 | |||||||||||
Amount | % | Amount | % | ||||||||||
Commercial: | |||||||||||||
Mortgages (1) | $772,772 | 30 | % | $796,249 | 32 | % | |||||||
Construction and development (2) | 38,574 | 1 | 36,289 | 1 | |||||||||
Other (3) | 554,824 | 22 | 530,797 | 22 | |||||||||
Total commercial | 1,366,170 | 53 | 1,363,335 | 55 | |||||||||
Residential real estate: | |||||||||||||
Mortgages | 846,187 | 33 | 749,163 | 30 | |||||||||
Homeowner construction | 30,452 | 1 | 23,511 | 1 | |||||||||
Total residential real estate | 876,639 | 34 | 772,674 | 31 | |||||||||
Consumer: | |||||||||||||
Home equity lines | 237,390 | 9 | 231,362 | 9 | |||||||||
Home equity loans | 45,632 | 2 | 40,212 | 2 | |||||||||
Other (4) | 55,293 | 2 | 55,301 | 3 | |||||||||
Total consumer | 338,315 | 13 | 326,875 | 14 | |||||||||
Total loans (5) | $2,581,124 | 100 | % | $2,462,884 | 100 | % |
(1) | Amortizing mortgages and lines of credit, primarily secured by income producing property. |
(2) | Loans for construction commercial properties, loans to developers for construction of residential properties and loans for land development. |
(3) | Loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. |
(4) | Fixed-rate consumer installment loans. |
(5) | Includes net unamortized loan origination costs of $1.5 million and $879 thousand, respectively, and net unamortized premiums on purchased loans of $100 thousand and $99 thousand, respectively, at June 30, 2014 and December 31, 2013. |
(Dollars in thousands) | Jun 30, 2014 | Dec 31, 2013 | |||||
Commercial: | |||||||
Mortgages | $2,290 | $7,492 | |||||
Construction and development | — | — | |||||
Other | 1,615 | 1,291 | |||||
Residential real estate: | |||||||
Mortgages | 7,417 | 8,315 | |||||
Homeowner construction | — | — | |||||
Consumer: | |||||||
Home equity lines | 724 | 469 | |||||
Home equity loans | 321 | 687 | |||||
Other | 168 | 48 | |||||
Total nonaccrual loans | $12,535 | $18,302 | |||||
Accruing loans 90 days or more past due | $— | $— |
(Dollars in thousands) | Days Past Due | ||||||||||||||||||||||
June 30, 2014 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | |||||||||||||||||
Commercial: | |||||||||||||||||||||||
Mortgages | $311 | $1,583 | $2,250 | $4,144 | $768,628 | $772,772 | |||||||||||||||||
Construction and development | — | — | — | — | 38,574 | 38,574 | |||||||||||||||||
Other | 1,785 | 773 | 417 | 2,975 | 551,849 | 554,824 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Mortgages | 5,249 | 855 | 4,335 | 10,439 | 835,748 | 846,187 | |||||||||||||||||
Homeowner construction | — | — | — | — | 30,452 | 30,452 | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Home equity lines | 1,227 | 554 | 280 | 2,061 | 235,329 | 237,390 | |||||||||||||||||
Home equity loans | 309 | 18 | 106 | 433 | 45,199 | 45,632 | |||||||||||||||||
Other | 353 | 530 | 126 | 1,009 | 54,284 | 55,293 | |||||||||||||||||
Total loans | $9,234 | $4,313 | $7,514 | $21,061 | $2,560,063 | $2,581,124 |
(Dollars in thousands) | Days Past Due | ||||||||||||||||||||||
December 31, 2013 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | |||||||||||||||||
Commercial: | |||||||||||||||||||||||
Mortgages | $— | $— | $7,492 | $7,492 | $788,757 | $796,249 | |||||||||||||||||
Construction and development | — | — | — | — | 36,289 | 36,289 | |||||||||||||||||
Other | 276 | 302 | 731 | 1,309 | 529,488 | 530,797 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Mortgages | 4,040 | 1,285 | 5,633 | 10,958 | 738,205 | 749,163 | |||||||||||||||||
Homeowner construction | — | — | — | — | 23,511 | 23,511 | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Home equity lines | 831 | 100 | 269 | 1,200 | 230,162 | 231,362 | |||||||||||||||||
Home equity loans | 448 | 66 | 349 | 863 | 39,349 | 40,212 | |||||||||||||||||
Other | 43 | — | 38 | 81 | 55,220 | 55,301 | |||||||||||||||||
Total loans | $5,638 | $1,753 | $14,512 | $21,903 | $2,440,981 | $2,462,884 |
(Dollars in thousands) | Recorded Investment (1) | Unpaid Principal | Related Allowance | ||||||||||||||||||||
Jun 30, 2014 | Dec 31, 2013 | Jun 30, 2014 | Dec 31, 2013 | Jun 30, 2014 | Dec 31, 2013 | ||||||||||||||||||
No Related Allowance Recorded: | |||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||
Mortgages | $9,160 | $998 | $9,135 | $998 | $— | $— | |||||||||||||||||
Construction and development | — | — | — | — | — | — | |||||||||||||||||
Other | 1,032 | 1,055 | 1,032 | 1,050 | — | — | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Mortgages | 2,226 | 1,167 | 2,354 | 1,259 | — | — | |||||||||||||||||
Homeowner construction | — | — | — | — | — | — | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Home equity lines | — | — | — | — | — | — | |||||||||||||||||
Home equity loans | — | — | — | — | — | — | |||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||
Subtotal | $12,418 | $3,220 | $12,521 | $3,307 | $— | $— | |||||||||||||||||
With Related Allowance Recorded: | |||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||
Mortgages | $15,788 | $29,335 | $16,275 | $31,731 | $747 | $552 | |||||||||||||||||
Construction and development | — | — | — | — | — | — | |||||||||||||||||
Other | 1,556 | 1,506 | 1,843 | 1,945 | 324 | 463 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Mortgages | 2,253 | 3,122 | 2,538 | 3,507 | 390 | 463 | |||||||||||||||||
Homeowner construction | — | — | — | — | — | — | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Home equity lines | 82 | 173 | 82 | 174 | 41 | 1 | |||||||||||||||||
Home equity loans | 94 | 55 | 91 | 54 | 21 | — | |||||||||||||||||
Other | 119 | 127 | 117 |