x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended SEPTEMBER 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 September 30, 2014 | ||
TABLE OF CONTENTS | ||
Page Number | ||
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars in thousands, |
CONSOLIDATED BALANCE SHEETS (unaudited) | except par value) |
September 30, 2014 | December 31, 2013 | |||||||
Assets: | ||||||||
Cash and due from banks | $86,132 | $81,939 | ||||||
Short-term investments | 3,869 | 3,378 | ||||||
Mortgage loans held for sale, at fair value | 35,473 | 11,636 | ||||||
Securities: | ||||||||
Available for sale, at fair value | 376,073 | 392,903 | ||||||
Held to maturity, at amortized cost (fair value $27,074 at September 30, 2014 and $29,865 at December 31, 2013) | 26,480 | 29,905 | ||||||
Total securities | 402,553 | 422,808 | ||||||
Federal Home Loan Bank stock, at cost | 37,730 | 37,730 | ||||||
Loans: | ||||||||
Commercial | 1,390,373 | 1,363,335 | ||||||
Residential real estate | 945,580 | 772,674 | ||||||
Consumer | 338,094 | 326,875 | ||||||
Total loans | 2,674,047 | 2,462,884 | ||||||
Less allowance for loan losses | 27,768 | 27,886 | ||||||
Net loans | 2,646,279 | 2,434,998 | ||||||
Premises and equipment, net | 26,367 | 25,402 | ||||||
Investment in bank-owned life insurance | 63,026 | 56,673 | ||||||
Goodwill | 58,114 | 58,114 | ||||||
Identifiable intangible assets, net | 5,004 | 5,493 | ||||||
Other assets | 51,335 | 50,696 | ||||||
Total assets | $3,415,882 | $3,188,867 | ||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand deposits | $476,808 | $440,785 | ||||||
NOW accounts | 313,391 | 309,771 | ||||||
Money market accounts | 833,318 | 666,646 | ||||||
Savings accounts | 290,561 | 297,357 | ||||||
Time deposits | 824,810 | 790,762 | ||||||
Total deposits | 2,738,888 | 2,505,321 | ||||||
Federal Home Loan Bank advances | 261,685 | 288,082 | ||||||
Junior subordinated debentures | 22,681 | 22,681 | ||||||
Other liabilities | 44,066 | 43,137 | ||||||
Total liabilities | 3,067,320 | 2,859,221 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ Equity: | ||||||||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,721,172 shares at September 30, 2014 and 16,613,561 shares at December 31, 2013 | 1,045 | 1,038 | ||||||
Paid-in capital | 100,044 | 97,566 | ||||||
Retained earnings | 247,052 | 232,595 | ||||||
Accumulated other comprehensive income (loss) | 421 | (1,553 | ) | |||||
Total shareholders’ equity | 348,562 | 329,646 | ||||||
Total liabilities and shareholders’ equity | $3,415,882 | $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 | Nine months | |||||||||||||||
Periods ended September 30, | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $27,239 | $26,096 | $78,997 | $76,832 | ||||||||||||
Interest on securities: | Taxable | 2,397 | 2,582 | 8,038 | 8,003 | |||||||||||
Nontaxable | 519 | 629 | 1,658 | 1,935 | ||||||||||||
Dividends on Federal Home Loan Bank stock | 140 | 36 | 420 | 113 | ||||||||||||
Other interest income | 36 | 47 | 99 | 99 | ||||||||||||
Total interest and dividend income | 30,331 | 29,390 | 89,212 | 86,982 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 3,317 | 3,064 | 9,406 | 9,354 | ||||||||||||
Federal Home Loan Bank advances | 1,832 | 2,693 | 5,831 | 8,109 | ||||||||||||
Junior subordinated debentures | 241 | 241 | 723 | 1,243 | ||||||||||||
Other interest expense | 3 | 4 | 10 | 12 | ||||||||||||
Total interest expense | 5,393 | 6,002 | 15,970 | 18,718 | ||||||||||||
Net interest income | 24,938 | 23,388 | 73,242 | 68,264 | ||||||||||||
Provision for loan losses | 600 | 700 | 1,350 | 2,000 | ||||||||||||
Net interest income after provision for loan losses | 24,338 | 22,688 | 71,892 | 66,264 | ||||||||||||
Noninterest income: | ||||||||||||||||
Wealth management revenues | 8,374 | 7,629 | 24,969 | 23,015 | ||||||||||||
Merchant processing fees | — | 3,359 | 1,291 | 7,949 | ||||||||||||
Net gains on loan sales and commissions on loans originated for others | 1,742 | 3,883 | 4,688 | 11,534 | ||||||||||||
Service charges on deposit accounts | 881 | 855 | 2,459 | 2,436 | ||||||||||||
Card interchange fees | 804 | 731 | 2,264 | 2,013 | ||||||||||||
Income from bank-owned life insurance | 468 | 464 | 1,354 | 1,392 | ||||||||||||
Net gains on interest rate swap contracts | 339 | 54 | 562 | 225 | ||||||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | (63 | ) | (47 | ) | (213 | ) | (65 | ) | ||||||||
Net gain on sale of business line | — | — | 6,265 | — | ||||||||||||
Other income | 580 | 472 | 1,670 | 1,233 | ||||||||||||
Noninterest income, excluding other-than-temporary impairment losses | 13,125 | 17,400 | 45,309 | 49,732 | ||||||||||||
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 | 13,125 | 17,400 | 45,309 | 46,960 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 14,516 | 14,640 | 43,845 | 45,624 | ||||||||||||
Net occupancy | 1,557 | 1,404 | 4,672 | 4,282 | ||||||||||||
Equipment | 1,211 | 1,222 | 3,682 | 3,658 | ||||||||||||
Merchant processing costs | — | 2,862 | 1,050 | 6,746 | ||||||||||||
Outsourced services | 1,138 | 878 | 3,197 | 2,590 | ||||||||||||
Legal, audit and professional fees | 494 | 529 | 1,710 | 1,691 | ||||||||||||
FDIC deposit insurance costs | 442 | 448 | 1,295 | 1,330 | ||||||||||||
Advertising and promotion | 368 | 312 | 1,140 | 1,143 | ||||||||||||
Amortization of intangibles | 161 | 170 | 489 | 516 | ||||||||||||
Foreclosed property costs | 27 | 38 | 48 | 222 | ||||||||||||
Debt prepayment penalties | — | 1,125 | 6,294 | 1,125 | ||||||||||||
Other expenses | 2,133 | 1,920 | 6,365 | 5,810 | ||||||||||||
Total noninterest expense | 22,047 | 25,548 | 73,787 | 74,737 | ||||||||||||
Income before income taxes | 15,416 | 14,540 | 43,414 | 38,487 | ||||||||||||
Income tax expense | 4,878 | 4,580 | 13,781 | 12,123 | ||||||||||||
Net income | $10,538 | $9,960 | $29,633 | $26,364 | ||||||||||||
Weighted average common shares outstanding - basic | 16,714 | 16,563 | 16,673 | 16,473 | ||||||||||||
Weighted average common shares outstanding - diluted | 16,855 | 16,696 | 16,832 | 16,600 | ||||||||||||
Per share information: | Basic earnings per common share | $0.63 | $0.60 | $1.77 | $1.59 | |||||||||||
Diluted earnings per common share | $0.62 | $0.59 | $1.75 | $1.58 | ||||||||||||
Cash dividends declared per share | $0.32 | $0.26 | $0.90 | $0.76 |
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars in thousands) |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) |
Three Months | Nine Months | ||||||||||||||
Periods ended September 30, | 2014 | 2013 | 2014 | 2013 | |||||||||||
Net income | $10,538 | $9,960 | $29,633 | $26,364 | |||||||||||
Other comprehensive income, net of tax: | |||||||||||||||
Securities available for sale: | |||||||||||||||
Changes in fair value of securities available for sale | (953 | ) | (129 | ) | 1,476 | (5,003 | ) | ||||||||
Net losses on securities reclassified into earnings | — | — | — | 393 | |||||||||||
Net change in fair value of securities available for sale | (953 | ) | (129 | ) | 1,476 | (4,610 | ) | ||||||||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings | — | — | — | 1,384 | |||||||||||
Cash flow hedges: | |||||||||||||||
Change in fair value of cash flow hedges | 1 | (47 | ) | (29 | ) | (15 | ) | ||||||||
Net cash flow hedge losses reclassified into earnings | 92 | 91 | 277 | 331 | |||||||||||
Net change in fair value of cash flow hedges | 93 | 44 | 248 | 316 | |||||||||||
Defined benefit plan obligation adjustment | 81 | 11,440 | 250 | 12,069 | |||||||||||
Total other comprehensive (loss) income, net of tax | (779 | ) | 11,355 | 1,974 | 9,159 | ||||||||||
Total comprehensive income | $9,759 | $21,315 | $31,607 | $35,523 |
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) Income | Total | |||||||||||||||||
Balance at January 1, 2014 | 16,614 | $1,038 | $97,566 | $232,595 | ($1,553 | ) | $329,646 | |||||||||||||||
Net income | 29,633 | 29,633 | ||||||||||||||||||||
Total other comprehensive income, net of tax | 1,974 | 1,974 | ||||||||||||||||||||
Cash dividends declared | (15,176 | ) | (15,176 | ) | ||||||||||||||||||
Share-based compensation | 1,433 | 1,433 | ||||||||||||||||||||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | 107 | 7 | 1,045 | 1,052 | ||||||||||||||||||
Balance at September 30, 2014 | 16,721 | $1,045 | $100,044 | $247,052 | $421 | $348,562 |
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 | 26,364 | 26,364 | ||||||||||||||||||||
Total other comprehensive loss, net of tax | 9,159 | 9,159 | ||||||||||||||||||||
Cash dividends declared | (12,686 | ) | (12,686 | ) | ||||||||||||||||||
Share-based compensation | 1,377 | 1,377 | ||||||||||||||||||||
Deferred compensation plan | 2 | 30 | 30 | |||||||||||||||||||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | 207 | 13 | 3,676 | 3,689 | ||||||||||||||||||
Balance at September 30, 2013 | 16,589 | $1,037 | $96,536 | $227,352 | ($1,340 | ) | $323,585 |
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars in thousands) |
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
Nine months ended September 30, | 2014 | 2013 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $29,633 | $26,364 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for loan losses | 1,350 | 2,000 | ||||||
Depreciation of premises and equipment | 2,350 | 2,489 | ||||||
Foreclosed and repossessed property valuation adjustments | 57 | 79 | ||||||
Net amortization of premium and discount | 672 | 1,196 | ||||||
Net amortization of intangibles | 489 | 516 | ||||||
Share-based compensation | 1,433 | 1,377 | ||||||
Income from bank-owned life insurance | (1,354 | ) | (1,392 | ) | ||||
Net gain on sale of business line | (6,265 | ) | — | |||||
Net gains on loan sales and commissions on loans originated for others | (4,688 | ) | (11,534 | ) | ||||
Net impairment losses recognized in earnings | — | 2,772 | ||||||
Net gains on interest rate swap contracts | (562 | ) | (225 | ) | ||||
Equity in losses of unconsolidated subsidiaries | 213 | 65 | ||||||
Proceeds from sales of loans | 176,389 | 356,932 | ||||||
Loans originated for sale | (196,322 | ) | (313,227 | ) | ||||
(Increase) decrease in other assets | (3,082 | ) | 12,388 | |||||
Decrease in other liabilities | (56 | ) | (13,769 | ) | ||||
Net cash provided by operating activities | 257 | 66,031 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of: | Mortgage-backed securities available for sale | (53,051 | ) | (66,569 | ) | |||
Other investment securities available for sale | (31,009 | ) | (25,404 | ) | ||||
Proceeds from sale of: | Other investment securities available for sale | 547 | — | |||||
Maturities and principal payments of: | Mortgage-backed securities available for sale | 63,938 | 64,270 | |||||
Other investment securities available for sale | 38,137 | 6,550 | ||||||
Mortgage-backed securities held to maturity | 3,248 | 8,704 | ||||||
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 | (205,877 | ) | (100,655 | ) | ||||
Proceeds from sale of portfolio loans | 1,200 | 49,588 | ||||||
Purchases of loans, including purchased interest | (7,065 | ) | (9,103 | ) | ||||
Proceeds from the sale of property acquired through foreclosure or repossession | 1,630 | 2,142 | ||||||
Purchases of premises and equipment | (3,315 | ) | (1,178 | ) | ||||
Purchases of bank-owned life insurance | (5,000 | ) | — | |||||
Net cash used in investing activities | (189,412 | ) | (68,967 | ) | ||||
Cash flows from financing activities: | ||||||||
Net increase in deposits | 233,567 | 142,200 | ||||||
Net decrease in other borrowings | (33 | ) | (415 | ) | ||||
Proceeds from Federal Home Loan Bank advances | 259,000 | 204,000 | ||||||
Repayment of Federal Home Loan Bank advances | (285,397 | ) | (276,687 | ) | ||||
Proceeds from the exercise of stock options and issuance of other compensation-related equity instruments | 592 | 3,287 | ||||||
Tax benefit from stock option exercises and issuance of other compensation-related equity instruments | 460 | 432 | ||||||
Redemption of junior subordinated debentures | — | (10,310 | ) | |||||
Cash dividends paid | (14,350 | ) | (12,293 | ) | ||||
Net cash provided by financing activities | 193,839 | 50,214 | ||||||
Net increase in cash and cash equivalents | 4,684 | 47,278 | ||||||
Cash and cash equivalents at beginning of period | 85,317 | 92,650 | ||||||
Cash and cash equivalents at end of period | $90,001 | $139,928 |
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars in thousands) |
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
Nine months ended September 30, | 2014 | 2013 | |||||
Noncash Investing and Financing Activities: | |||||||
Loans charged off | $1,638 | $5,319 | |||||
Loans transferred to property acquired through foreclosure or repossession | 1,659 | 1,073 | |||||
Supplemental Disclosures: | |||||||
Interest payments | $15,779 | $18,401 | |||||
Income tax payments | 12,734 | 11,528 |
(1) | General Information |
(2) | Recently Issued Accounting Pronouncements |
(3) | Cash and Due from Banks |
(4) | Securities |
(Dollars in thousands) | |||||||||||||||
September 30, 2014 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||
Securities Available for Sale: | |||||||||||||||
Obligations of U.S. government-sponsored enterprises | $31,008 | $— | ($89 | ) | $30,919 | ||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 248,369 | 9,012 | (160 | ) | 257,221 | ||||||||||
Obligations of states and political subdivisions | 52,526 | 1,991 | — | 54,517 | |||||||||||
Individual name issuer trust preferred debt securities | 30,743 | — | (3,546 | ) | 27,197 | ||||||||||
Corporate bonds | 6,122 | 104 | (7 | ) | 6,219 | ||||||||||
Total securities available for sale | $368,768 | $11,107 | ($3,802 | ) | $376,073 | ||||||||||
Held to Maturity: | |||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | $26,480 | $594 | $— | $27,074 | |||||||||||
Total securities held to maturity | $26,480 | $594 | $— | $27,074 | |||||||||||
Total securities | $395,248 | $11,701 | ($3,802 | ) | $403,147 |
(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 |
September 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 | $— | $31,008 | $— | $— | $31,008 | ||||||||||||||
Weighted average yield | — | % | 1.72 | % | — | % | — | % | 1.72 | % | |||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | |||||||||||||||||||
Amortized cost | 41,207 | 111,399 | 63,797 | 31,966 | 248,369 | ||||||||||||||
Weighted average yield | 3.73 | % | 3.38 | % | 2.79 | % | 1.80 | % | 3.08 | % | |||||||||
Obligations of state and political subdivisions: | |||||||||||||||||||
Amortized cost | 2,546 | 26,690 | 23,290 | — | 52,526 | ||||||||||||||
Weighted average yield | 3.64 | % | 3.92 | % | 3.98 | % | — | % | 3.93 | % | |||||||||
Individual name issuer trust preferred debt securities: | |||||||||||||||||||
Amortized cost | — | — | — | 30,743 | 30,743 | ||||||||||||||
Weighted average yield | — | % | — | % | — | % | 1.08 | % | 1.08 | % | |||||||||
Corporate bonds: | |||||||||||||||||||
Amortized cost | 5,714 | 204 | 204 | — | 6,122 | ||||||||||||||
Weighted average yield | 2.81 | % | 1.62 | % | 3.20 | % | — | % | 2.78 | % | |||||||||
Total debt securities available for sale: | |||||||||||||||||||
Amortized cost | $49,467 | $169,301 | $87,291 | $62,709 | $368,768 | ||||||||||||||
Weighted average yield | 3.62 | % | 3.16 | % | 3.11 | % | 1.45 | % | 2.92 | % | |||||||||
Fair value | $51,123 | $174,197 | $90,451 | $60,302 | $376,073 | ||||||||||||||
Securities Held to Maturity: | |||||||||||||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | |||||||||||||||||||
Amortized cost | $3,261 | $10,120 | $8,015 | $5,084 | $26,480 | ||||||||||||||
Weighted average yield | 3.10 | % | 3.03 | % | 2.82 | % | 1.02 | % | 2.59 | % | |||||||||
Fair value | $3,334 | $10,347 | $8,195 | $5,198 | $27,074 |
(Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||
September 30, 2014 | # | Fair Value | Unrealized Losses | # | Fair Value | Unrealized Losses | # | Fair Value | Unrealized Losses | |||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | 4 | $30,919 | ($89 | ) | — | $— | $— | 4 | $30,919 | ($89 | ) | |||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 4 | 42,231 | (147 | ) | 1 | 912 | (13 | ) | 5 | 43,143 | (160 | ) | ||||||||||||||||||||
Individual name issuer trust preferred debt securities | — | — | — | 11 | 27,197 | (3,546 | ) | 11 | 27,197 | (3,546 | ) | |||||||||||||||||||||
Corporate bonds | 1 | 214 | (3 | ) | 1 | 198 | (4 | ) | 2 | 412 | (7 | ) | ||||||||||||||||||||
Total temporarily impaired securities | 9 | $73,364 | ($239 | ) | 13 | $28,307 | ($3,563 | ) | 22 | $101,671 | ($3,802 | ) |
(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 | Nine months | |||||||||||||
Periods ended September 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) | September 30, 2014 | December 31, 2013 | |||||||||||
Amount | % | Amount | % | ||||||||||
Commercial: | |||||||||||||
Mortgages (1) | $766,703 | 29 | % | $796,249 | 32 | % | |||||||
Construction and development (2) | 58,750 | 2 | 36,289 | 1 | |||||||||
Other (3) | 564,920 | 21 | 530,797 | 22 | |||||||||
Total commercial | 1,390,373 | 52 | 1,363,335 | 55 | |||||||||
Residential real estate: | |||||||||||||
Mortgages | 912,956 | 34 | 749,163 | 30 | |||||||||
Homeowner construction | 32,624 | 1 | 23,511 | 1 | |||||||||
Total residential real estate | 945,580 | 35 | 772,674 | 31 | |||||||||
Consumer: | |||||||||||||
Home equity lines | 240,567 | 9 | 231,362 | 9 | |||||||||
Home equity loans | 46,455 | 2 | 40,212 | 2 | |||||||||
Other (4) | 51,072 | 2 | 55,301 | 3 | |||||||||
Total consumer | 338,094 | 13 | 326,875 | 14 | |||||||||
Total loans (5) | $2,674,047 | 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 $2.1 million and $879 thousand, respectively, and net unamortized premiums on purchased loans of $97 thousand and $99 thousand, respectively, at September 30, 2014 and December 31, 2013. |
(Dollars in thousands) | Sep 30, 2014 | Dec 31, 2013 | |||||
Commercial: | |||||||
Mortgages | $6,022 | $7,492 | |||||
Construction and development | — | — | |||||
Other | 1,326 | 1,291 | |||||
Residential real estate: | |||||||
Mortgages | 7,890 | 8,315 | |||||
Homeowner construction | — | — | |||||
Consumer: | |||||||
Home equity lines | 1,426 | 469 | |||||
Home equity loans | 300 | 687 | |||||
Other | 1 | 48 | |||||
Total nonaccrual loans | $16,965 | $18,302 | |||||
Accruing loans 90 days or more past due | $— | $— |
(Dollars in thousands) | Days Past Due | ||||||||||||||||||||||
September 30, 2014 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | |||||||||||||||||
Commercial: | |||||||||||||||||||||||
Mortgages | $— | $— | $5,995 | $5,995 | $760,708 | $766,703 | |||||||||||||||||
Construction and development | — | — | — | — | 58,750 | 58,750 | |||||||||||||||||
Other | 1,129 | 314 | 970 | 2,413 | 562,507 | 564,920 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Mortgages | 2,582 | 2,001 | 3,922 | 8,505 | 904,451 | 912,956 | |||||||||||||||||
Homeowner construction | — | — | — | — | 32,624 | 32,624 | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Home equity lines | 1,441 | 346 | 852 | 2,639 | 237,928 | 240,567 | |||||||||||||||||
Home equity loans | 188 | 8 | 136 | 332 | 46,123 | 46,455 | |||||||||||||||||
Other | 48 | 2 | 1 | 51 | 51,021 | 51,072 | |||||||||||||||||
Total loans | $5,388 | $2,671 | $11,876 | $19,935 | $2,654,112 | $2,674,047 |
(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 | 348 | 862 | 39,350 | 40,212 | |||||||||||||||||
Other | 43 | — | 39 | 82 | 55,219 | 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 | ||||||||||||||||||||
Sep 30, 2014 | Dec 31, 2013 | Sep 30, 2014 | Dec 31, 2013 | Sep 30, 2014 | Dec 31, 2013 | ||||||||||||||||||
No Related Allowance Recorded: | |||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||
Mortgages | $1,147 | $998 | $1,176 | $998 | $— | $— | |||||||||||||||||
Construction and development | — | — | — | — | — | — | |||||||||||||||||
Other | 1,031 | 1,055 | 1,031 | 1,050 | — | — | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Mortgages | 2,302 | 1,167 | 2,659 | 1,259 | — | — | |||||||||||||||||
Homeowner construction | — | — | — | — | — | — | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Home equity lines | — | — | — | — | — | — | |||||||||||||||||
Home equity loans | — | — | — | — | — | — | |||||||||||||||||
Other | 113 | — | 112 | — | — | — | |||||||||||||||||
Subtotal | $4,593 | $3,220 | $4,978 | $3,307 | $— | $— | |||||||||||||||||
With Related Allowance Recorded: | |||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||
Mortgages | $14,579 | $29,335 | $14,558 | $31,731 | $927 | $552 | |||||||||||||||||
Construction and development | — | — | — | — | — | — | |||||||||||||||||
Other | 1,335 | 1,506 | 1,753 | 1,945 | 207 | 463 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Mortgages | 1,734 | 3,122 | 1,790 | 3,507 | 256 | 463 | |||||||||||||||||
Homeowner construction | — | — | — | — | — | — | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Home equity lines | 82 | 173 | 82 |