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) | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 51,823 | $ | 47,312 | ||||
Interest earning deposits | 7,853 | 103,318 | ||||||
Total cash and cash equivalents | 59,676 | 150,630 | ||||||
Investment securities: | ||||||||
Available for sale, at estimated fair value | 363,640 | 617,707 | ||||||
Held to maturity, at amortized cost | 391,242 | 1,009 | ||||||
Mortgage-backed and related securities: | ||||||||
Available for sale, at estimated fair value | 861,845 | 806,360 | ||||||
Held to maturity, at amortized cost | 293,712 | 245,538 | ||||||
FHLB stock, at cost | 32,781 | 27,889 | ||||||
Other investments, at cost | 2,064 | 2,064 | ||||||
Loans held for sale | 496 | 3,601 | ||||||
Loans: | ||||||||
Loans | 1,317,568 | 1,262,977 | ||||||
Less: Allowance for loan losses | (19,356 | ) | (20,585 | ) | ||||
Net Loans | 1,298,212 | 1,242,392 | ||||||
Premises and equipment, net | 51,213 | 50,075 | ||||||
Goodwill | 22,034 | 22,034 | ||||||
Other intangible assets, net | 211 | 324 | ||||||
Interest receivable | 16,701 | 18,936 | ||||||
Deferred tax asset | 22,361 | 4,120 | ||||||
Other assets | 51,786 | 44,724 | ||||||
TOTAL ASSETS | $ | 3,467,974 | $ | 3,237,403 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Deposits: | ||||||||
Noninterest bearing | $ | 557,996 | $ | 595,093 | ||||
Interest bearing | 1,850,370 | 1,756,804 | ||||||
Total deposits | 2,408,366 | 2,351,897 | ||||||
Short-term obligations: | ||||||||
Federal funds purchased and repurchase agreements | 858 | 984 | ||||||
FHLB advances | 229,103 | 150,985 | ||||||
Other obligations | 219 | 219 | ||||||
Total short-term obligations | 230,180 | 152,188 | ||||||
Long-term obligations: | ||||||||
FHLB advances | 468,139 | 369,097 | ||||||
Long-term debt | 60,311 | 60,311 | ||||||
Total long-term obligations | 528,450 | 429,408 | ||||||
Unsettled trades to purchase securities | 25,414 | 10,047 | ||||||
Other liabilities | 36,256 | 36,100 | ||||||
TOTAL LIABILITIES | 3,228,666 | 2,979,640 | ||||||
Off-Balance-Sheet Arrangements, Commitments and Contingencies (Note 10) | ||||||||
Shareholders' equity: | ||||||||
Common stock ($1.25 par, 40,000,000 shares authorized, 20,360,959 shares issued at September 30, 2013 and 19,446,187 shares issued at December 31, 2012) | 25,451 | 24,308 | ||||||
Paid-in capital | 213,242 | 195,602 | ||||||
Retained earnings | 69,252 | 70,708 | ||||||
Treasury stock (2,469,638 and 2,379,338 shares at cost) | (37,692 | ) | (35,793 | ) | ||||
Accumulated other comprehensive (loss) income | (30,945 | ) | 2,938 | |||||
TOTAL SHAREHOLDERS' EQUITY | 239,308 | 257,763 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 3,467,974 | $ | 3,237,403 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands, except per share data) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Interest income | |||||||||||||||
Loans | $ | 18,625 | $ | 17,847 | $ | 54,680 | $ | 52,143 | |||||||
Investment securities – taxable | 139 | 22 | 672 | 73 | |||||||||||
Investment securities – tax-exempt | 5,556 | 3,839 | 14,391 | 9,467 | |||||||||||
Mortgage-backed and related securities | 5,069 | 6,695 | 13,685 | 27,730 | |||||||||||
FHLB stock and other investments | 36 | 57 | 135 | 190 | |||||||||||
Other interest earning assets | 15 | 4 | 93 | 19 | |||||||||||
Total interest income | 29,440 | 28,464 | 83,656 | 89,622 | |||||||||||
Interest expense | |||||||||||||||
Deposits | 2,011 | 2,455 | 6,082 | 8,615 | |||||||||||
Short-term obligations | 116 | 1,551 | 1,755 | 4,877 | |||||||||||
Long-term obligations | 2,043 | 2,450 | 5,778 | 7,581 | |||||||||||
Total interest expense | 4,170 | 6,456 | 13,615 | 21,073 | |||||||||||
Net interest income | 25,270 | 22,008 | 70,041 | 68,549 | |||||||||||
Provision for loan losses | 3,640 | 3,265 | 6,153 | 8,491 | |||||||||||
Net interest income after provision for loan losses | 21,630 | 18,743 | 63,888 | 60,058 | |||||||||||
Noninterest income | |||||||||||||||
Deposit services | 4,005 | 3,907 | 11,662 | 11,493 | |||||||||||
(Loss) gain on sale of securities available for sale | (3 | ) | 4,302 | 9,414 | 13,571 | ||||||||||
Loss on sale of securities carried at fair value through income | — | — | — | (498 | ) | ||||||||||
Total other-than-temporary impairment losses | — | — | (52 | ) | (21 | ) | |||||||||
Portion of loss recognized in other comprehensive income (loss) (before taxes) | — | — | 10 | (160 | ) | ||||||||||
Net impairment losses recognized in earnings | — | — | (42 | ) | (181 | ) | |||||||||
FHLB advance option impairment charges | — | (195 | ) | — | (2,031 | ) | |||||||||
Gain on sale of loans | 130 | 314 | 690 | 743 | |||||||||||
Trust income | 759 | 705 | 2,212 | 2,051 | |||||||||||
Bank owned life insurance income | 327 | 260 | 845 | 780 | |||||||||||
Other | 1,334 | 1,205 | 3,178 | 3,439 | |||||||||||
Total noninterest income | 6,552 | 10,498 | 27,959 | 29,367 | |||||||||||
Noninterest expense | |||||||||||||||
Salaries and employee benefits | 13,167 | 11,919 | 39,777 | 35,894 | |||||||||||
Occupancy expense | 1,922 | 1,980 | 5,690 | 5,589 | |||||||||||
Advertising, travel & entertainment | 599 | 606 | 1,896 | 1,813 | |||||||||||
ATM and debit card expense | 310 | 251 | 994 | 817 | |||||||||||
Director fees | 263 | 261 | 800 | 802 | |||||||||||
Supplies | 173 | 178 | 592 | 559 | |||||||||||
Professional fees | 730 | 781 | 1,932 | 2,084 | |||||||||||
Telephone and communications | 383 | 416 | 1,218 | 1,267 | |||||||||||
FDIC insurance | 433 | 429 | 1,263 | 1,313 | |||||||||||
FHLB prepayment fees | — | — | 988 | — | |||||||||||
Other | 2,284 | 2,255 | 6,599 | 6,556 | |||||||||||
Total noninterest expense | 20,264 | 19,076 | 61,749 | 56,694 | |||||||||||
Income before income tax expense | 7,918 | 10,165 | 30,098 | 32,731 | |||||||||||
Provision for income tax expense | 304 | 1,558 | 3,887 | 6,256 | |||||||||||
Net income | $ | 7,614 | $ | 8,607 | $ | 26,211 | $ | 26,475 | |||||||
Earnings per common share – basic | $ | 0.43 | $ | 0.47 | $ | 1.47 | $ | 1.45 | |||||||
Earnings per common share – diluted | $ | 0.42 | $ | 0.47 | $ | 1.46 | $ | 1.45 | |||||||
Dividends paid per common share | $ | 0.20 | $ | 0.20 | $ | 0.60 | $ | 0.58 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (in thousands) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income | $ | 7,614 | $ | 8,607 | $ | 26,211 | $ | 26,475 | |||||||
Other comprehensive income (loss): | |||||||||||||||
Unrealized holding (losses) gains on available for sale securities during the period | (1,960 | ) | 15,469 | (44,841 | ) | 11,425 | |||||||||
Change in net unrealized (gain) loss on securities transferred to held to maturity | 67 | — | 37 | — | |||||||||||
Noncredit portion of other-than-temporary impairment losses on the AFS securities | — | — | (10 | ) | 181 | ||||||||||
Reclassification adjustment for loss (gain) on sale of available for sale securities, included in net income | 3 | (4,302 | ) | (9,414 | ) | (13,571 | ) | ||||||||
Reclassification of other-than-temporary impairment charges on available for sale securities, included in net income | — | — | 42 | 181 | |||||||||||
Amortization of net actuarial loss, included in net periodic benefit cost | 697 | 505 | 2,091 | 1,516 | |||||||||||
Amortization of prior service credit, included in net periodic benefit cost | (10 | ) | (10 | ) | (32 | ) | (32 | ) | |||||||
Other comprehensive (loss) income, before tax | (1,203 | ) | 11,662 | (52,127 | ) | (300 | ) | ||||||||
Income tax benefit related to other items of comprehensive income | 420 | (4,081 | ) | 18,244 | 106 | ||||||||||
Other comprehensive (loss) income, net of tax | (783 | ) | 7,581 | (33,883 | ) | (194 | ) | ||||||||
Comprehensive income (loss) | $ | 6,831 | $ | 16,188 | $ | (7,672 | ) | $ | 26,281 |
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 | 26,475 | 26,475 | |||||||||||||||||||||
Other comprehensive loss | (194 | ) | (194 | ) | |||||||||||||||||||
Issuance of common stock (45,620 shares) | 57 | 906 | 963 | ||||||||||||||||||||
Stock compensation expense | 303 | 303 | |||||||||||||||||||||
Tax benefits related to stock awards | 11 | 11 | |||||||||||||||||||||
Net issuance of common stock under employee stock plans | 10 | 49 | (63 | ) | (4 | ) | |||||||||||||||||
Cash dividends paid on common stock ($0.58 per share) | (9,908 | ) | (9,908 | ) | |||||||||||||||||||
Stock dividend declared | 1,034 | 16,425 | (17,459 | ) | — | ||||||||||||||||||
Balance at September 30, 2012 | $ | 24,247 | $ | 194,485 | $ | 71,691 | $ | (28,377 | ) | $ | 14,527 | $ | 276,573 | ||||||||||
Balance at December 31, 2012 | $ | 24,308 | $ | 195,602 | $ | 70,708 | $ | (35,793 | ) | $ | 2,938 | $ | 257,763 | ||||||||||
Net Income | 26,211 | 26,211 | |||||||||||||||||||||
Other comprehensive loss | (33,883 | ) | (33,883 | ) | |||||||||||||||||||
Issuance of common stock (43,733 shares) | 54 | 959 | 1,013 | ||||||||||||||||||||
Purchase of common stock (90,300 shares) | (1,899 | ) | (1,899 | ) | |||||||||||||||||||
Stock compensation expense | 571 | 571 | |||||||||||||||||||||
Tax benefits related to stock awards | 43 | 43 | |||||||||||||||||||||
Net issuance of common stock under employee stock plans | 24 | 72 | (68 | ) | 28 | ||||||||||||||||||
Cash dividends paid on common stock ($0.60 per share) | (10,539 | ) | (10,539 | ) | |||||||||||||||||||
Stock dividend declared | 1,065 | 15,995 | (17,060 | ) | — | ||||||||||||||||||
Balance at September 30, 2013 | $ | 25,451 | $ | 213,242 | $ | 69,252 | $ | (37,692 | ) | $ | (30,945 | ) | $ | 239,308 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) (in thousands) | |||||||
Nine Months Ended | |||||||
September 30, | |||||||
2013 | 2012 | ||||||
OPERATING ACTIVITIES: | |||||||
Net income | $ | 26,211 | $ | 26,475 | |||
Adjustments to reconcile net income to net cash provided by operations: | |||||||
Depreciation | 2,756 | 2,706 | |||||
Amortization of premium | 27,203 | 35,354 | |||||
Accretion of discount and loan fees | (4,705 | ) | (3,611 | ) | |||
Provision for loan losses | 6,153 | 8,491 | |||||
Stock compensation expense | 571 | 303 | |||||
Deferred tax expense (benefit) | 3 | (1,988 | ) | ||||
Excess tax benefits from stock-based compensation | (43 | ) | (11 | ) | |||
Loss on sale of securities carried at fair value through income | — | 498 | |||||
Gain on sale of securities available for sale | (9,414 | ) | (13,571 | ) | |||
Net other-than-temporary impairment losses | 42 | 181 | |||||
FHLB advance option impairment charges | — | 2,031 | |||||
Loss on sale of assets | 4 | — | |||||
Impairment on other real estate owned | — | 28 | |||||
Gain on sale of other real estate owned | (59 | ) | (2 | ) | |||
Net change in: | |||||||
Interest receivable | 2,235 | 4,698 | |||||
Other assets | (6,930 | ) | (1,171 | ) | |||
Interest payable | (447 | ) | (559 | ) | |||
Other liabilities | 2,661 | (1,683 | ) | ||||
Loans held for sale | 3,105 | 2,394 | |||||
Net cash provided by operating activities | 49,346 | 60,563 | |||||
INVESTING ACTIVITIES: | |||||||
Securities held to maturity: | |||||||
Purchases | (127,479 | ) | — | ||||
Maturities, calls and principal repayments | 150,737 | 67,162 | |||||
Securities available for sale: | |||||||
Purchases | (1,303,285 | ) | (1,446,425 | ) | |||
Sales | 697,458 | 745,085 | |||||
Maturities, calls and principal repayments | 287,582 | 279,995 | |||||
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 | 5,819 | 12,266 | |||||
Purchases of FHLB stock and other investments | (10,711 | ) | (12,336 | ) | |||
Net increase in loans | (62,287 | ) | (142,126 | ) | |||
Purchases of premises and equipment | (3,898 | ) | (2,036 | ) | |||
Proceeds from sales of other real estate owned | 480 | 401 | |||||
Proceeds from sales of repossessed assets | 3,155 | 3,416 | |||||
Net cash (used in) provided by investing activities | (362,429 | ) | 148,330 | ||||
(continued) |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) (continued) (in thousands) | |||||||
Nine Months Ended | |||||||
September 30, | |||||||
2013 | 2012 | ||||||
FINANCING ACTIVITIES: | |||||||
Net increase in demand and savings accounts | 23,483 | 157,650 | |||||
Net increase (decrease) in certificates of deposit | 32,966 | (178,046 | ) | ||||
Net decrease in federal funds purchased and repurchase agreements | (126 | ) | (1,477 | ) | |||
Proceeds from FHLB advances | 13,062,172 | 12,560,845 | |||||
Repayment of FHLB advances | (12,885,012 | ) | (12,650,197 | ) | |||
Excess tax benefits from stock-based awards | 43 | 11 | |||||
Net issuance of common stock under employee stock plan | 28 | — | |||||
Purchase of common stock | (1,899 | ) | — | ||||
Proceeds from the issuance of common stock | 1,013 | 963 | |||||
Cash dividends paid | (10,539 | ) | (9,908 | ) | |||
Net cash provided by (used in) financing activities | 222,129 | (120,159 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (90,954 | ) | 88,734 | ||||
Cash and cash equivalents at beginning of period | 150,630 | 43,238 | |||||
Cash and cash equivalents at end of period | $ | 59,676 | $ | 131,972 | |||
SUPPLEMENTAL DISCLOSURES FOR CASH FLOW INFORMATION: | |||||||
Interest paid | $ | 14,062 | $ | 21,633 | |||
Income taxes paid | $ | 2,700 | $ | 11,200 | |||
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: | |||||||
Loans transferred to other repossessed assets and real estate through foreclosure | $ | 3,931 | $ | 4,028 | |||
Transfer of available for sale securities to held to maturity securities | $ | 452,884 | $ | — | |||
Adjustment to pension liability | $ | (2,059 | ) | $ | (1,484 | ) | |
5% stock dividend | $ | 17,060 | $ | 17,459 | |||
Unsettled trades to purchase securities | $ | (25,414 | ) | $ | (17,326 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Basic and Diluted Earnings: | |||||||||||||||
Net income | $ | 7,614 | $ | 8,607 | $ | 26,211 | $ | 26,475 | |||||||
Basic weighted-average shares outstanding | 17,876 | 18,233 | 17,860 | 18,211 | |||||||||||
Add: Stock options | 49 | 15 | 32 | 12 | |||||||||||
Diluted weighted-average shares outstanding | 17,925 | 18,248 | 17,892 | 18,223 | |||||||||||
Basic Earnings Per Share: | $ | 0.43 | $ | 0.47 | $ | 1.47 | $ | 1.45 | |||||||
Diluted Earnings Per Share: | $ | 0.42 | $ | 0.47 | $ | 1.46 | $ | 1.45 |
Nine Months Ended September 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 | (45,028 | ) | 177 | — | — | (44,851 | ) | ||||||||||||
Reclassified from accumulated other comprehensive income (1) | (9,377 | ) | 42 | (32 | ) | 2,091 | (7,276 | ) | |||||||||||
Income tax benefit (expense) | 19,041 | (76 | ) | 11 | (732 | ) | 18,244 | ||||||||||||
Net current-period other comprehensive (loss) income, net of tax | (35,364 | ) | 143 | (21 | ) | 1,359 | (33,883 | ) | |||||||||||
Ending balance, net of tax | $ | (4,864 | ) | $ | (997 | ) | $ | 227 | $ | (25,311 | ) | $ | (30,945 | ) |
Three Months Ended September 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 | $ | (3,620 | ) | $ | (1,012 | ) | $ | 234 | $ | (25,764 | ) | $ | (30,162 | ) | |||||
Other comprehensive (loss) income before reclassifications | (1,983 | ) | 23 | — | — | (1,960 | ) | ||||||||||||
Reclassified from accumulated other comprehensive income (1) | 70 | — | (10 | ) | 697 | 757 | |||||||||||||
Income tax benefit (expense) | 669 | (8 | ) | 3 | (244 | ) | 420 | ||||||||||||
Net current-period other comprehensive (loss) income, net of tax | (1,244 | ) | 15 | (7 | ) | 453 | (783 | ) | |||||||||||
Ending balance, net of tax | $ | (4,864 | ) | $ | (997 | ) | $ | 227 | $ | (25,311 | ) | $ | (30,945 | ) |
Nine Months Ended September 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 income before reclassifications | 11,402 | 204 | — | — | 11,606 | ||||||||||||||
Reclassified from accumulated other comprehensive income | (13,571 | ) | 181 | (32 | ) | 1,516 | (11,906 | ) | |||||||||||
Income tax benefit (expense) | 760 | (135 | ) | 11 | (530 | ) | 106 | ||||||||||||
Net current-period other comprehensive (loss) income, net of tax | (1,409 | ) | 250 | (21 | ) | 986 | (194 | ) | |||||||||||
Ending balance, net of tax | $ | 35,862 | $ | (1,327 | ) | $ | 255 | $ | (20,263 | ) | $ | 14,527 |
Three Months Ended September 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 | $ | 28,655 | $ | (1,379 | ) | $ | 262 | $ | (20,592 | ) | $ | 6,946 | |||||||
Other comprehensive income before reclassifications | 15,389 | 80 | — | — | 15,469 | ||||||||||||||
Reclassified from accumulated other comprehensive income | (4,302 | ) | — | (10 | ) | 505 | (3,807 | ) | |||||||||||
Income tax benefit (expense) | (3,880 | ) | (28 | ) | 3 | (176 | ) | (4,081 | ) | ||||||||||
Net current-period other comprehensive (loss) income, net of tax | 7,207 | 52 | (7 | ) | 329 | 7,581 | |||||||||||||
Ending balance, net of tax | $ | 35,862 | $ | (1,327 | ) | $ | 255 | $ | (20,263 | ) | $ | 14,527 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Unrealized holding gains arising during period: | |||||||||||||||
Realized (loss) gain on sale of securities (1) | $ | (3 | ) | $ | 4,302 | $ | 9,414 | $ | 13,571 | ||||||
Change in unrealized loss on securities transferred to held to maturity (2) | (67 | ) | — | (37 | ) | — | |||||||||
Impairment losses (3) | — | — | (42 | ) | (181 | ) | |||||||||
Total before tax | (70 | ) | 4,302 | 9,335 | 13,390 | ||||||||||
Tax benefit (expense) | 24 | (1,506 | ) | (3,268 | ) | (4,687 | ) | ||||||||
Net of tax | $ | (46 | ) | $ | 2,796 | $ | 6,067 | $ | 8,703 | ||||||
Amortization of pension plan items: | |||||||||||||||
Net loss (4) | $ | (697 | ) | $ | (505 | ) | $ | (2,091 | ) | $ | (1,516 | ) | |||
Prior service credit (4) | 10 | 10 | 32 | 32 | |||||||||||
Total before tax | (687 | ) | (495 | ) | (2,059 | ) | (1,484 | ) | |||||||
Tax benefit (expense) | 241 | 173 | 721 | 519 | |||||||||||
Net of tax | $ | (446 | ) | $ | (322 | ) | $ | (1,338 | ) | $ | (965 | ) | |||
Total reclassifications for the period, net of tax | $ | (492 | ) | $ | 2,474 | $ | 4,729 | $ | 7,738 |
September 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 | $ | 12,624 | $ | — | $ | — | $ | 1,449 | $ | 11,175 | |||||||||
State and Political Subdivisions | 343,955 | 5,954 | — | 11,777 | 338,132 | ||||||||||||||
Other Stocks and Bonds | 15,773 | 145 | 1,535 | 50 | 14,333 | ||||||||||||||
Mortgage-backed Securities: (1) | |||||||||||||||||||
Residential | 783,586 | 16,141 | — | 2,322 | 797,405 | ||||||||||||||
Commercial | 67,102 | 257 | — | 2,919 | 64,440 | ||||||||||||||
Total | $ | 1,223,040 | $ | 22,497 | $ | 1,535 | $ | 18,517 | $ | 1,225,485 |
September 30, 2013 | |||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||
HELD TO MATURITY | OTTI | Other | |||||||||||||||||
Investment Securities: | |||||||||||||||||||
State and Political Subdivisions | $ | 391,242 | $ | 1,672 | $ | — | $ | 13,144 | $ | 379,770 | |||||||||
Mortgage-backed Securities: (1) | |||||||||||||||||||
Residential | 92,127 | 4,581 | — | — | 96,708 | ||||||||||||||
Commercial | 201,585 | 711 | — | 6,153 | 196,143 | ||||||||||||||
Total | $ | 684,954 | $ | 6,964 | $ | — | $ | 19,297 | $ | 672,621 |
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 September 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 September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net (loss) gain on sales transactions | $ | — | $ | — | $ | — | $ | (498 | ) | ||||||
Net mark-to-market gains | — | — | — | — | |||||||||||
Net (loss) gain on securities carried at fair value through income | $ | — | $ | — | $ | — | $ | (498 | ) |
As of September 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 | $ | 11,175 | $ | 1,449 | $ | — | $ | — | $ | 11,175 | $ | 1,449 | |||||||||||
State and Political Subdivisions | 212,259 | 11,777 | — | — | 212,259 | 11,777 | |||||||||||||||||
Other Stocks and Bonds | 5,264 | 50 | 1,167 | 1,535 | 6,431 | 1,585 | |||||||||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||
Residential | 113,952 | 1,976 | 25,938 | 346 | 139,890 | 2,322 | |||||||||||||||||
Commercial | 61,621 | 2,919 | — | — | 61,621 | 2,919 | |||||||||||||||||
Total | $ | 404,271 | $ | 18,171 | $ | 27,105 | $ | 1,881 | $ | 431,376 | $ | 20,052 | |||||||||||
HELD TO MATURITY | |||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||
State and Political Subdivisions | $ | 285,797 | $ | 13,144 | $ | — | $ | — | $ | 285,797 | $ | 13,144 | |||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||
Commercial | 109,084 | 6,153 | — | — | 109,084 | 6,153 | |||||||||||||||||
Total | $ | 394,881 | $ | 19,297 | $ | — | $ | — | $ | 394,881 | $ | 19,297 | |||||||||||
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 | $ | 27 | C1 | Ca | ||||||||||
2 | 2,000 | 550 | 1,450 | 741 | B1 | C | ||||||||||||||
3 | 2,000 | 1,450 | 550 | 399 | B2 | C | ||||||||||||||
$ | 6,000 | $ | 3,298 | $ | 2,702 | $ | 1,167 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Balance, beginning of period | $ | 3,298 | $ | 3,256 | $ | 3,256 | $ | 3,075 | |||||||
Additions for credit losses recognized on debt securities that had previously incurred impairment losses | — | — | 42 | 181 | |||||||||||
Balance, end of period | $ | 3,298 | $ | 3,256 | $ | 3,298 | $ | 3,256 |
Nine Months Ended September 30, | |||||||
2013 | 2012 | ||||||
U.S. Treasury | $ | 17 | $ | — | |||
U.S. Government Agency Debentures | 378 | — | |||||
State and Political Subdivisions | 14,516 | 9,489 |