x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TEXAS | 75-1848732 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
1201 S. Beckham, Tyler, Texas | 75701 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer o | Accelerated filer x |
Non-accelerated filer o | Smaller reporting company o |
(Do not check if a smaller reporting company) |
PART I. FINANCIAL INFORMATION | |
PART II. OTHER INFORMATION | |
EXHIBIT 31.1 – CERTIFICATION PURSUANT TO SECTION 302 | |
EXHIBIT 31.2 – CERTIFICATION PURSUANT TO SECTION 302 | |
EXHIBIT 32 – CERTIFICATION PURSUANT TO SECTION 906 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share amounts) | |||||||
June 30, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
Cash and due from banks | $ | 45,628 | $ | 47,312 | |||
Interest earning deposits | 4,169 | 103,318 | |||||
Total cash and cash equivalents | 49,797 | 150,630 | |||||
Investment securities: | |||||||
Available for sale, at estimated fair value | 488,321 | 617,707 | |||||
Held to maturity, at amortized cost | 302,775 | 1,009 | |||||
Mortgage-backed and related securities: | |||||||
Available for sale, at estimated fair value | 821,760 | 806,360 | |||||
Held to maturity, at amortized cost | 240,514 | 245,538 | |||||
FHLB stock, at cost | 27,153 | 27,889 | |||||
Other investments, at cost | 2,064 | 2,064 | |||||
Loans held for sale | 724 | 3,601 | |||||
Loans: | |||||||
Loans | 1,293,429 | 1,262,977 | |||||
Less: Allowance for loan losses | (18,370 | ) | (20,585 | ) | |||
Net Loans | 1,275,059 | 1,242,392 | |||||
Premises and equipment, net | 50,186 | 50,075 | |||||
Goodwill | 22,034 | 22,034 | |||||
Other intangible assets, net | 245 | 324 | |||||
Interest receivable | 20,883 | 18,936 | |||||
Deferred tax asset | 20,883 | 4,120 | |||||
Unsettled issuances of brokered CDs | 11,069 | — | |||||
Other assets | 51,511 | 44,724 | |||||
TOTAL ASSETS | $ | 3,384,978 | $ | 3,237,403 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Deposits: | |||||||
Noninterest bearing | $ | 663,594 | $ | 595,093 | |||
Interest bearing | 1,835,744 | 1,756,804 | |||||
Total deposits | 2,499,338 | 2,351,897 | |||||
Short-term obligations: | |||||||
Federal funds purchased and repurchase agreements | 857 | 984 | |||||
FHLB advances | 84,882 | 150,985 | |||||
Other obligations | 219 | 219 | |||||
Total short-term obligations | 85,958 | 152,188 | |||||
Long-term obligations: | |||||||
FHLB advances | 441,808 | 369,097 | |||||
Long-term debt | 60,311 | 60,311 | |||||
Total long-term obligations | 502,119 | 429,408 | |||||
Unsettled trades to purchase securities | 27,814 | 10,047 | |||||
Other liabilities | 34,316 | 36,100 | |||||
TOTAL LIABILITIES | 3,149,545 | 2,979,640 | |||||
Off-Balance-Sheet Arrangements, Commitments and Contingencies (Note 10) | |||||||
Shareholders' equity: | |||||||
Common stock ($1.25 par, 40,000,000 shares authorized, 20,335,929 shares issued in 2013 and 19,446,187 shares issued in 2012) | 25,420 | 24,308 | |||||
Paid-in capital | 212,648 | 195,602 | |||||
Retained earnings | 65,219 | 70,708 | |||||
Treasury stock (2,469,638 and 2,379,338 shares at cost) | (37,692 | ) | (35,793 | ) | |||
Accumulated other comprehensive (loss) income | (30,162 | ) | 2,938 | ||||
TOTAL SHAREHOLDERS' EQUITY | 235,433 | 257,763 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 3,384,978 | $ | 3,237,403 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands, except per share data) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Interest income | |||||||||||||||
Loans | $ | 18,390 | $ | 17,526 | $ | 36,055 | $ | 34,296 | |||||||
Investment securities – taxable | 169 | 20 | 533 | 51 | |||||||||||
Investment securities – tax-exempt | 4,877 | 2,961 | 8,835 | 5,628 | |||||||||||
Mortgage-backed and related securities | 4,680 | 8,872 | 8,616 | 21,035 | |||||||||||
FHLB stock and other investments | 34 | 54 | 99 | 133 | |||||||||||
Other interest earning assets | 35 | 9 | 78 | 15 | |||||||||||
Total interest income | 28,185 | 29,442 | 54,216 | 61,158 | |||||||||||
Interest expense | |||||||||||||||
Deposits | 2,001 | 2,765 | 4,071 | 6,160 | |||||||||||
Short-term obligations | 389 | 1,734 | 1,639 | 3,326 | |||||||||||
Long-term obligations | 1,954 | 2,398 | 3,735 | 5,131 | |||||||||||
Total interest expense | 4,344 | 6,897 | 9,445 | 14,617 | |||||||||||
Net interest income | 23,841 | 22,545 | 44,771 | 46,541 | |||||||||||
Provision for loan losses | 2,021 | 2,174 | 2,513 | 5,226 | |||||||||||
Net interest income after provision for loan losses | 21,820 | 20,371 | 42,258 | 41,315 | |||||||||||
Noninterest income | |||||||||||||||
Deposit services | 3,904 | 3,838 | 7,657 | 7,586 | |||||||||||
Gain on sale of securities available for sale | 5,052 | 3,297 | 9,417 | 9,269 | |||||||||||
Loss on sale of securities carried at fair value through income | — | (13 | ) | — | (498 | ) | |||||||||
Total other-than-temporary impairment losses | — | (21 | ) | (52 | ) | (21 | ) | ||||||||
Portion of loss recognized in other comprehensive income (before taxes) | — | (19 | ) | 10 | (160 | ) | |||||||||
Net impairment losses recognized in earnings | — | (40 | ) | (42 | ) | (181 | ) | ||||||||
FHLB advance option impairment charges | — | (1,364 | ) | — | (1,836 | ) | |||||||||
Gain on sale of loans | 241 | 298 | 560 | 429 | |||||||||||
Trust income | 733 | 669 | 1,453 | 1,346 | |||||||||||
Bank owned life insurance income | 264 | 254 | 518 | 520 | |||||||||||
Other | 953 | 1,123 | 1,844 | 2,234 | |||||||||||
Total noninterest income | 11,147 | 8,062 | 21,407 | 18,869 | |||||||||||
Noninterest expense | |||||||||||||||
Salaries and employee benefits | 13,401 | 12,142 | 26,610 | 23,975 | |||||||||||
Occupancy expense | 1,897 | 1,851 | 3,768 | 3,609 | |||||||||||
Advertising, travel & entertainment | 656 | 603 | 1,297 | 1,207 | |||||||||||
ATM and debit card expense | 303 | 287 | 684 | 566 | |||||||||||
Director fees | 273 | 273 | 537 | 541 | |||||||||||
Supplies | 169 | 222 | 419 | 381 | |||||||||||
Professional fees | 562 | 612 | 1,202 | 1,303 | |||||||||||
Telephone and communications | 384 | 445 | 835 | 851 | |||||||||||
FDIC insurance | 409 | 414 | 830 | 884 | |||||||||||
FHLB prepayment fees | 988 | — | 988 | — | |||||||||||
Other | 2,124 | 2,247 | 4,315 | 4,301 | |||||||||||
Total noninterest expense | 21,166 | 19,096 | 41,485 | 37,618 | |||||||||||
Income before income tax expense | 11,801 | 9,337 | 22,180 | 22,566 | |||||||||||
Provision for income tax expense | 1,729 | 1,608 | 3,583 | 4,698 | |||||||||||
Net income | $ | 10,072 | $ | 7,729 | $ | 18,597 | $ | 17,868 | |||||||
Earnings per common share – basic | $ | 0.56 | $ | 0.42 | $ | 1.04 | $ | 0.98 | |||||||
Earnings per common share – diluted | $ | 0.56 | $ | 0.42 | $ | 1.04 | $ | 0.98 | |||||||
Dividends paid per common share | $ | 0.20 | $ | 0.20 | $ | 0.40 | $ | 0.38 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (in thousands) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income | $ | 10,072 | $ | 7,729 | $ | 18,597 | $ | 17,868 | |||||||
Other comprehensive income (loss): | |||||||||||||||
Unrealized holding (losses) gains on available for sale securities during the period | (37,666 | ) | 842 | (42,881 | ) | (4,044 | ) | ||||||||
Change in net unrealized gain on securities transferred to held to maturity | (30 | ) | — | (30 | ) | — | |||||||||
Noncredit portion of other-than-temporary impairment losses on the AFS securities | — | 40 | (10 | ) | 181 | ||||||||||
Reclassification adjustment for gain on sale of available for sale securities, included in net income | (5,052 | ) | (3,297 | ) | (9,417 | ) | (9,269 | ) | |||||||
Reclassification of other-than-temporary impairment charges on available for sale securities, included in net income | — | 40 | 42 | 181 | |||||||||||
Amortization of net actuarial loss, included in net periodic benefit cost | 751 | 512 | 1,394 | 1,011 | |||||||||||
Amortization of prior service credit, included in net periodic benefit cost | (11 | ) | (12 | ) | (22 | ) | (22 | ) | |||||||
Other comprehensive loss, before tax | (42,008 | ) | (1,875 | ) | (50,924 | ) | (11,962 | ) | |||||||
Income tax benefit related to other items of comprehensive income | 14,703 | 656 | 17,824 | 4,187 | |||||||||||
Other comprehensive loss, net of tax | (27,305 | ) | (1,219 | ) | (33,100 | ) | (7,775 | ) | |||||||
Comprehensive (loss) income | $ | (17,233 | ) | $ | 6,510 | $ | (14,503 | ) | $ | 10,093 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (in thousands, except share and per share data) | |||||||||||||||||||||||
Common Stock | Paid In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Equity | ||||||||||||||||||
Balance at December 31, 2011 | $ | 23,146 | $ | 176,791 | $ | 72,646 | $ | (28,377 | ) | $ | 14,721 | $ | 258,927 | ||||||||||
Net Income | 17,868 | 17,868 | |||||||||||||||||||||
Other comprehensive loss | (7,775 | ) | (7,775 | ) | |||||||||||||||||||
Issuance of common stock (30,436 shares) | 38 | 595 | 633 | ||||||||||||||||||||
Stock compensation expense | 133 | 133 | |||||||||||||||||||||
Tax benefits of incentive stock options | 11 | 11 | |||||||||||||||||||||
Net issuance of common stock under employee stock plans | 10 | 39 | (54 | ) | (5 | ) | |||||||||||||||||
Cash dividends paid on common stock ($0.38 per share) | (6,436 | ) | (6,436 | ) | |||||||||||||||||||
Stock dividend declared | 1,034 | 16,425 | (17,459 | ) | — | ||||||||||||||||||
Balance at June 30, 2012 | $ | 24,228 | $ | 193,994 | $ | 66,565 | $ | (28,377 | ) | $ | 6,946 | $ | 263,356 | ||||||||||
Balance at December 31, 2012 | $ | 24,308 | $ | 195,602 | $ | 70,708 | $ | (35,793 | ) | $ | 2,938 | $ | 257,763 | ||||||||||
Net Income | 18,597 | 18,597 | |||||||||||||||||||||
Other comprehensive loss | (33,100 | ) | (33,100 | ) | |||||||||||||||||||
Issuance of common stock (28,529 shares) | 35 | 593 | 628 | ||||||||||||||||||||
Purchase of common stock (90,300 shares) | (1,899 | ) | (1,899 | ) | |||||||||||||||||||
Stock compensation expense | 373 | 373 | |||||||||||||||||||||
Tax benefits related to stock awards | 22 | 22 | |||||||||||||||||||||
Net issuance of common stock under employee stock plans | 12 | 63 | (62 | ) | 13 | ||||||||||||||||||
Cash dividends paid on common stock ($0.40 per share) | (6,964 | ) | (6,964 | ) | |||||||||||||||||||
Stock dividend declared | 1,065 | 15,995 | (17,060 | ) | — | ||||||||||||||||||
Balance at June 30, 2013 | $ | 25,420 | $ | 212,648 | $ | 65,219 | $ | (37,692 | ) | $ | (30,162 | ) | $ | 235,433 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) (in thousands) | |||||||
Six Months Ended | |||||||
June 30, | |||||||
2013 | 2012 | ||||||
OPERATING ACTIVITIES: | |||||||
Net income | $ | 18,597 | $ | 17,868 | |||
Adjustments to reconcile net income to net cash provided by operations: | |||||||
Depreciation | 1,807 | 1,778 | |||||
Amortization of premium | 17,636 | 22,864 | |||||
Accretion of discount and loan fees | (2,913 | ) | (2,399 | ) | |||
Provision for loan losses | 2,513 | 5,226 | |||||
Stock compensation expense | 373 | 133 | |||||
Deferred tax expense (benefit) | 1,060 | (2,743 | ) | ||||
Excess tax benefits from stock-based compensation | (22 | ) | (11 | ) | |||
Loss on sale of securities carried at fair value through income | — | 498 | |||||
Gain on sale of securities available for sale | (9,417 | ) | (9,269 | ) | |||
Net other-than-temporary impairment losses | 42 | 181 | |||||
FHLB advance option impairment charges | — | 1,836 | |||||
Gain on sale of other real estate owned | (72 | ) | (3 | ) | |||
Net change in: | |||||||
Interest receivable | (1,947 | ) | 1,497 | ||||
Other assets | (7,117 | ) | 27 | ||||
Interest payable | (481 | ) | (458 | ) | |||
Other liabilities | 69 | (2,393 | ) | ||||
Loans held for sale | 2,877 | 2,105 | |||||
Net cash provided by operating activities | 23,005 | 36,737 | |||||
INVESTING ACTIVITIES: | |||||||
Securities held to maturity: | |||||||
Purchases | (115,647 | ) | — | ||||
Maturities, calls and principal repayments | 118,178 | 32,331 | |||||
Securities available for sale: | |||||||
Purchases | (1,018,900 | ) | (1,213,923 | ) | |||
Sales | 612,459 | 448,725 | |||||
Maturities, calls and principal repayments | 179,203 | 163,809 | |||||
Securities carried at fair value through income: | |||||||
Purchases | — | (57,606 | ) | ||||
Sales | — | 675,255 | |||||
Maturities, calls and principal repayments | — | 25,279 | |||||
Proceeds from redemption of FHLB stock | 5,242 | 10,292 | |||||
Purchases of FHLB stock and other investments | (4,506 | ) | (10,757 | ) | |||
Net increase in loans | (35,355 | ) | (100,529 | ) | |||
Purchases of premises and equipment | (1,918 | ) | (1,433 | ) | |||
Proceeds from sales of premises and equipment | — | — | |||||
Proceeds from sales of other real estate owned | 461 | 112 | |||||
Proceeds from sales of repossessed assets | 2,304 | 2,070 | |||||
Net cash used in investing activities | (258,479 | ) | (26,375 | ) | |||
(continued) |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) (continued) (in thousands) | |||||||
Six Months Ended | |||||||
June 30, | |||||||
2013 | 2012 | ||||||
FINANCING ACTIVITIES: | |||||||
Net increase in demand and savings accounts | 140,307 | 198,420 | |||||
Net decrease in certificates of deposit | (3,947 | ) | (124,695 | ) | |||
Net decrease in federal funds purchased and repurchase agreements | (127 | ) | (997 | ) | |||
Proceeds from FHLB advances | 6,792,758 | 9,133,164 | |||||
Repayment of FHLB advances | (6,786,150 | ) | (9,147,464 | ) | |||
Excess tax benefits from stock-based awards | 22 | 11 | |||||
Net issuance of common stock under employee stock plan | 13 | — | |||||
Purchase of common stock | (1,899 | ) | — | ||||
Proceeds from the issuance of common stock | 628 | 633 | |||||
Cash dividends paid | (6,964 | ) | (6,436 | ) | |||
Net cash provided by financing activities | 134,641 | 52,636 | |||||
Net (decrease) increase in cash and cash equivalents | (100,833 | ) | 62,998 | ||||
Cash and cash equivalents at beginning of period | 150,630 | 43,238 | |||||
Cash and cash equivalents at end of period | $ | 49,797 | $ | 106,236 | |||
SUPPLEMENTAL DISCLOSURES FOR CASH FLOW INFORMATION: | |||||||
Interest paid | $ | 9,925 | $ | 15,075 | |||
Income taxes paid | $ | 1,600 | $ | 9,200 | |||
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: | |||||||
Loans transferred to other repossessed assets and real estate through foreclosure | $ | 2,555 | $ | 2,621 | |||
Transfer of available for sale securities to held to maturity securities | $ | 290,136 | $ | — | |||
Adjustment to pension liability | $ | (1,372 | ) | $ | (989 | ) | |
5% stock dividend | $ | 17,060 | $ | 17,459 | |||
Unsettled trades to purchase securities | $ | (27,814 | ) | $ | (42,300 | ) | |
Unsettled trades to sell securities | $ | — | $ | 1,071 | |||
Unsettled issuances of brokered CDs | $ | 11,069 | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Basic and Diluted Earnings: | |||||||||||||||
Net income | $ | 10,072 | $ | 7,729 | $ | 18,597 | $ | 17,868 | |||||||
Basic weighted-average shares outstanding | 17,849 | 18,210 | 17,853 | 18,203 | |||||||||||
Add: Stock options | 32 | 13 | 26 | 13 | |||||||||||
Diluted weighted-average shares outstanding | 17,881 | 18,223 | 17,879 | 18,216 | |||||||||||
Basic Earnings Per Share: | $ | 0.56 | $ | 0.42 | $ | 1.04 | $ | 0.98 | |||||||
Diluted Earnings Per Share: | $ | 0.56 | $ | 0.42 | $ | 1.04 | $ | 0.98 |
Six Months Ended June 30, 2013 | |||||||||||||||||||
Unrealized Gains (Losses) on Securities | Pension Plans | ||||||||||||||||||
Other | OTTI | Net Prior Service (Cost) Credit | Net Gain (Loss) | Total | |||||||||||||||
Beginning balance, net of tax | $ | 30,500 | $ | (1,140 | ) | $ | 248 | $ | (26,670 | ) | $ | 2,938 | |||||||
Other comprehensive (loss) income before reclassifications | (43,045 | ) | 154 | — | — | (42,891 | ) | ||||||||||||
Reclassified from accumulated other comprehensive income (1) | (9,447 | ) | 42 | (22 | ) | 1,394 | (8,033 | ) | |||||||||||
Income tax benefit (expense) | 18,372 | (68 | ) | 8 | (488 | ) | 17,824 | ||||||||||||
Net current-period other comprehensive (loss) income, net of tax | (34,120 | ) | 128 | (14 | ) | 906 | (33,100 | ) | |||||||||||
Ending balance, net of tax | $ | (3,620 | ) | $ | (1,012 | ) | $ | 234 | $ | (25,764 | ) | $ | (30,162 | ) |
Three Months Ended June 30, 2013 | |||||||||||||||||||
Unrealized Gains (Losses) on Securities | Pension Plans | ||||||||||||||||||
Other | OTTI | Net Prior Service (Cost) Credit | Net Gain (Loss) | Total | |||||||||||||||
Beginning balance, net of tax | $ | 24,525 | $ | (1,371 | ) | $ | 241 | $ | (26,252 | ) | $ | (2,857 | ) | ||||||
Other comprehensive (loss) income before reclassifications | (38,218 | ) | 552 | — | — | (37,666 | ) | ||||||||||||
Reclassified from accumulated other comprehensive income (1) | (5,082 | ) | — | (11 | ) | 751 | (4,342 | ) | |||||||||||
Income tax benefit (expense) | 15,155 | (193 | ) | 4 | (263 | ) | 14,703 | ||||||||||||
Net current-period other comprehensive (loss) income, net of tax | (28,145 | ) | 359 | (7 | ) | 488 | (27,305 | ) | |||||||||||
Ending balance, net of tax | $ | (3,620 | ) | $ | (1,012 | ) | $ | 234 | $ | (25,764 | ) | $ | (30,162 | ) |
Six Months Ended June 30, 2012 | |||||||||||||||||||
Unrealized Gains (Losses) on Securities | Pension Plans | ||||||||||||||||||
Other | OTTI | Net Prior Service (Cost) Credit | Net Gain (Loss) | Total | |||||||||||||||
Beginning balance, net of tax | $ | 37,271 | $ | (1,577 | ) | $ | 276 | $ | (21,249 | ) | $ | 14,721 | |||||||
Other comprehensive (loss) income before reclassifications | (3,987 | ) | 124 | — | — | (3,863 | ) | ||||||||||||
Reclassified from accumulated other comprehensive income | (9,269 | ) | 181 | (22 | ) | 1,011 | (8,099 | ) | |||||||||||
Income tax benefit (expense) | 4,640 | (107 | ) | 8 | (354 | ) | 4,187 | ||||||||||||
Net current-period other comprehensive (loss) income, net of tax | (8,616 | ) | 198 | (14 | ) | 657 | (7,775 | ) | |||||||||||
Ending balance, net of tax | $ | 28,655 | $ | (1,379 | ) | $ | 262 | $ | (20,592 | ) | $ | 6,946 |
Three Months Ended June 30, 2012 | |||||||||||||||||||
Unrealized Gains (Losses) on Securities | Pension Plans | ||||||||||||||||||
Other | OTTI | Net Prior Service (Cost) Credit | Net Gain (Loss) | Total | |||||||||||||||
Beginning balance, net of tax | $ | 30,202 | $ | (1,382 | ) | $ | 270 | $ | (20,925 | ) | $ | 8,165 | |||||||
Other comprehensive (loss) income before reclassifications | 917 | (35 | ) | — | — | 882 | |||||||||||||
Reclassified from accumulated other comprehensive income | (3,297 | ) | 40 | (12 | ) | 512 | (2,757 | ) | |||||||||||
Income tax benefit (expense) | 833 | (2 | ) | 4 | (179 | ) | 656 | ||||||||||||
Net current-period other comprehensive (loss) income, net of tax | (1,547 | ) | 3 | (8 | ) | 333 | (1,219 | ) | |||||||||||
Ending balance, net of tax | $ | 28,655 | $ | (1,379 | ) | $ | 262 | $ | (20,592 | ) | $ | 6,946 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Unrealized holding gains arising during period: | |||||||||||||||
Realized gain on sale of securities (1) | $ | 5,052 | $ | 3,297 | $ | 9,417 | $ | 9,269 | |||||||
Change in unrealized gain on securities transferred to held to maturity (2) | 30 | — | 30 | — | |||||||||||
Impairment losses (3) | — | (40 | ) | (42 | ) | (181 | ) | ||||||||
Total before tax | 5,082 | 3,257 | 9,405 | 9,088 | |||||||||||
Tax benefit (expense) | (1,779 | ) | (1,140 | ) | (3,292 | ) | (3,181 | ) | |||||||
Net of tax | $ | 3,303 | $ | 2,117 | $ | 6,113 | $ | 5,907 | |||||||
Amortization of defined benefit pension items: | |||||||||||||||
Net loss (4) | $ | (751 | ) | $ | (512 | ) | $ | (1,394 | ) | $ | (1,011 | ) | |||
Prior service credit (4) | 11 | 12 | 22 | 22 | |||||||||||
Total before tax | (740 | ) | (500 | ) | (1,372 | ) | (989 | ) | |||||||
Tax benefit (expense) | 259 | 175 | 480 | 346 | |||||||||||
Net of tax | $ | (481 | ) | $ | (325 | ) | $ | (892 | ) | $ | (643 | ) | |||
Total reclassifications for the period, net of tax | $ | 2,822 | $ | 1,792 | $ | 5,221 | $ | 5,264 |
June 30, 2013 | |||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||
AVAILABLE FOR SALE | OTTI | Other | |||||||||||||||||
Investment Securities: | |||||||||||||||||||
U.S. Government Agency Debentures | $ | 15,551 | $ | — | $ | — | $ | 1,353 | $ | 14,198 | |||||||||
State and Political Subdivisions | 472,419 | 7,148 | — | 19,740 | 459,827 | ||||||||||||||
Other Stocks and Bonds | 15,770 | 142 | 1,558 | 58 | 14,296 | ||||||||||||||
Mortgage-backed Securities: (1) | |||||||||||||||||||
Residential | 670,639 | 15,402 | — | 2,420 | 683,621 | ||||||||||||||
Commercial | 146,289 | 274 | — | 8,424 | 138,139 | ||||||||||||||
Total | $ | 1,320,668 | $ | 22,966 | $ | 1,558 | $ | 31,995 | $ | 1,310,081 |
June 30, 2013 | |||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||
HELD TO MATURITY | OTTI | Other | |||||||||||||||||
Investment Securities: | |||||||||||||||||||
State and Political Subdivisions | $ | 302,775 | $ | 112 | $ | — | $ | 12,654 | $ | 290,233 | |||||||||
Mortgage-backed Securities: (1) | |||||||||||||||||||
Residential | 125,189 | 5,134 | — | 1 | 130,322 | ||||||||||||||
Commercial | 115,325 | — | — | 5,786 | 109,539 | ||||||||||||||
Total | $ | 543,289 | $ | 5,246 | $ | — | $ | 18,441 | $ | 530,094 |
December 31, 2012 | |||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||
AVAILABLE FOR SALE | OTTI | Other | |||||||||||||||||
Investment Securities: | |||||||||||||||||||
U.S. Government Agency Debentures | $ | 61,461 | $ | — | $ | — | $ | 598 | $ | 60,863 | |||||||||
State and Political Subdivisions | 515,116 | 30,888 | — | 316 | 545,688 | ||||||||||||||
Other Stocks and Bonds | 12,807 | 104 | 1,754 | 1 | 11,156 | ||||||||||||||
Mortgage-backed Securities: (1) | |||||||||||||||||||
Residential | 789,356 | 18,003 | — | 999 | 806,360 | ||||||||||||||
Total | $ | 1,378,740 | $ | 48,995 | $ | 1,754 | $ | 1,914 | $ | 1,424,067 |
December 31, 2012 | |||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||
HELD TO MATURITY | OTTI | Other | |||||||||||||||||
Investment Securities: | |||||||||||||||||||
State and Political Subdivisions | $ | 1,009 | $ | 128 | $ | — | $ | — | $ | 1,137 | |||||||||
Mortgage-backed Securities: (1) | |||||||||||||||||||
Residential | 245,538 | 8,770 | — | 47 | 254,261 | ||||||||||||||
Total | $ | 246,547 | $ | 8,898 | $ | — | $ | 47 | $ | 255,398 |
At June 30, | At December 31, | At December 31, | |||||||||
2013 | 2012 | 2011 | |||||||||
Mortgage-backed Securities: | |||||||||||
U.S. Government Agencies | $ | — | $ | — | $ | 30,413 | |||||
Government-Sponsored Enterprises | — | — | 617,346 | ||||||||
Total | $ | — | $ | — | $ | 647,759 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net (loss) gain on sales transactions | $ | — | $ | (13 | ) | $ | — | $ | (498 | ) | |||||
Net mark-to-market gains | — | — | — | — | |||||||||||
Net (loss) gain on securities carried at fair value through income | $ | — | $ | (13 | ) | $ | — | $ | (498 | ) |
As of June 30, 2013 | |||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
AVAILABLE FOR SALE | |||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||
U.S. Government Agency Debentures | $ | 14,198 | $ | 1,353 | $ | — | $ | — | $ | 14,198 | $ | 1,353 | |||||||||||
State and Political Subdivisions | 339,697 | 19,740 | — | — | 339,697 | 19,740 | |||||||||||||||||
Other Stocks and Bonds | 5,272 | 58 | 1,144 | 1,558 | 6,416 | 1,616 | |||||||||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||
Residential | 115,495 | 1,967 | 28,072 | 453 | 143,567 | 2,420 | |||||||||||||||||
Commercial | 135,287 | 8,424 | — | — | 135,287 | 8,424 | |||||||||||||||||
Total | $ | 609,949 | $ | 31,542 | $ | 29,216 | $ | 2,011 | $ | 639,165 | $ | 33,553 | |||||||||||
HELD TO MATURITY | |||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||
State and Political Subdivisions | $ | 287,541 | $ | 12,654 | $ | — | $ | — | $ | 287,541 | $ | 12,654 | |||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||
Residential | 3,074 | 1 | — | — | 3,074 | 1 | |||||||||||||||||
Commercial | 109,539 | 5,786 | — | — | 109,539 | 5,786 | |||||||||||||||||
Total | $ | 400,154 | $ | 18,441 | $ | — | $ | — | $ | 400,154 | $ | 18,441 | |||||||||||
As of December 31, 2012 | |||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
AVAILABLE FOR SALE | |||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||
U.S. Government Agency Debentures | $ | 60,863 | $ | 598 | $ | — | $ | — | $ | 60,863 | $ | 598 | |||||||||||
State and Political Subdivisions | 49,548 | 316 | — | — | 49,548 | 316 | |||||||||||||||||
Other Stocks and Bonds | 4,856 | 1 | 990 | 1,754 | 5,846 | 1,755 | |||||||||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||
Residential | 260,909 | 967 | 3,122 | 32 | 264,031 | 999 | |||||||||||||||||
Total | $ | 376,176 | $ | 1,882 | $ | 4,112 | $ | 1,786 | $ | 380,288 | $ | 3,668 | |||||||||||
HELD TO MATURITY | |||||||||||||||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||
Residential | $ | 3,251 | $ | 47 | $ | — | $ | — | $ | 3,251 | $ | 47 | |||||||||||
Total | $ | 3,251 | $ | 47 | $ | — | $ | — | $ | 3,251 | $ | 47 |
TRUP | Par | Credit Loss | Amortized Cost | Fair Value | Tranche | Credit Rating | ||||||||||||||
1 | $ | 2,000 | $ | 1,298 | $ | 702 | $ | 26 | C1 | Ca | ||||||||||
2 | 2,000 | 550 | 1,450 | 733 | B1 | C | ||||||||||||||
3 | 2,000 | 1,450 | 550 | 385 | B2 | C | ||||||||||||||
$ | 6,000 | $ | 3,298 | $ | 2,702 | $ | 1,144 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Balance, beginning of period | $ | 3,298 | $ | 3,216 | $ | 3,256 | $ | 3,075 | |||||||
Additions for credit losses recognized on debt securities that had previously incurred impairment losses | — | 40 | 42 | 181 | |||||||||||
Balance, end of period | $ | 3,298 | $ | 3,256 | $ | 3,298 | $ | 3,256 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
U.S. Treasury | $ | 17 | $ | — | |||
U.S. Government Agency Debentures | 305 | — | |||||
State and Political Subdivisions | 8,947 | 5,642 | |||||
Other Stocks and Bonds | 99 | 37 | |||||
Mortgage-backed Securities | 8,616 | 21,035 | |||||
Total interest income on securities | $ | 17,984 | $ | 26,714 |
Three Months Ended June 30, | |||||||
2013 | 2012 | ||||||
U.S. Treasury | $ | — | $ | — |